. this is "nightly business report." funded in part by -- >> all it takes is a spark. one idea to take flight. the courage to seek the unknown, to innovate, to disrupt, to move us all forward. to explore a different perspective. at nasdaq we connect the world, its ideas, its capital, its businesses, the people that drive global economy. the future isn't tomorrow. it's right now. all it takes is a spark. nasdaq. >> stocks fall hard posting the biggest drop of the year. investors worry the gop's health

plan. >> competitors stepped up the game in the very lucrative sports apparel industry. >> secretaries acts. why the new retirement may be to not retire at all. those stories and more on "nightly business report" for tuesday, march 21st. >> welcome. it was the worst day of the year. investors grew skeptical about how quickly things can get done in washington. president trump was on capitol hill today to help sell the republican plan to overhaul the health care system. concerns that the gop will not get the votes needed is adding to dpout the pro growth policies will get pushed through any time soon. mixed in. a down day for financials and questions about interest rate policy and you have a recipe for a sell-off. and the months long streak,

well, it was broken today. the dow jones industrial average tumbled 237 points the 26,668. nasdaq was off. the s&p dropped 29. >> it was a sea of red today. we saw something we haven't seen. a 1% move to the down side on the s&p 500. that hasn't happened since january 30th. what's behind the selling? it is clear, it is the weakness in buying sgreeld the dollar from last week's federal reserve meeting. the bank was down 4%. goldman sachs alone chased 50 points off the dow. it is the concern for tax cuts. that's the whole trump agenda there. right now the repeal of

obamacare is standing squarely in the way. there's a lot riding on thursday's house vote to repeal obamacare. they are vowing to push out. at a reform ask stimulus into 2018. finally there is concern on fundamentals. auto stocks like ford and general motors, hertz and avis. they were all down sharply over gern concerns. and also, energy stocks remain weak as oil approaches a new low for the year. it is a slew of worry for the market. and the sell-off spilled over into construction-related stocks as investors question how soon the white house would be able to push through its pledge to increase infrastructure spending. so names are all lower. >> a.d. mendez is he a portfolio

manager. mr. mendes, welcome. a lot of what happened today was the so-called crowded trades that have been fueling the market up. whether they were financials, the infrastructure stocks. and others. sold off a lot. shall we be surprised? >> not at all. and thank you for having me. if anything is surprising, it is with each successive sell-off in the market as we go through time. the viciousness and rapidity. maybe it is because a lot of that is driven biaial goal rith will. the trump trades, deep cyclicals and financial that's have done fantastically. we get a pullback. >> you kind of separate out the president's agenda from the market ask you're looking at the economy and it looks pretty good

to you. people say the trump administration might not be able to get 100% of their goals that shouldn't be news. this happens in every election cycle. i seems to me they remain committed to policy that's will be business friendly. deregulation which will be critically important to the financial sector which has been overregulated for some time and that notwithstanding, even before we get the policies, the macro economic data has continued to be supportive. >> were you a buyer today or a seller or neither? or if you were neither, what would your bias be over the next few weeks? >> i was neither. that said supported by strong macro economic data and the potential for more business friendly policies. i would be neither.

unless and until the dust settles. if a week or two from now we were 5%, 10% down on the broad indices. we continue to see he opportunities throughout in names are strong balance sheets, strong profitability and cash flows. where we've been waiting for an opportunity to add to positions we know we like and we can get a better valuation entry point. >> disthe fed and two more interest rate likes factor into it at all? >> it makes me a bit more cautious on names that carry higher leverage. they're going to have to refinance it at a higher interest rate down the road. but more broadly. that's the only way it factors in. i'm a bit more cautious.

the valuations use it as an input. beyond those examples. >> thank you very much for your thoughts. >> mike's cothe world's largest foot wear maker earned 60 cents a share. passing expectations. revenue of nearly 8.5 billion was up from a year ago but analysts wanted a little bit more. well that, shares fell initial will you in afterhours trading. sarah has more on nike's quarter. >> nike showed weigh a profit machine it could be. when it comes to the stock, investors want to know if the sails growth will be enough. the sales growth at 5%, match estimates.

pretty much across the world. nike is getting gained by especially adidas. they've had a bit of a business resurgence in north america, nailing retro chic fashion trend. that's why everybody will be looking for what nike has up its sleeve to get back to 15% where it was two years ago. >> fedex long considered for the economy. the ecommerce expansion dent profit. the package delivery company earned 2.35 a share missing estimates by a big 27 cents. the revenue grew more than 18% from a year toog $15 billion. investors, what do they want? they want more. more, more, more. that's what they want. the one key takeaway from

fedex's numbers. >> it was driven by three big factors. a big expansion of the shipping giant ground network which is an invery much. which has been crucial and rising fuel prices which marked the first time energy costs cut into the profits rather than add to they will. in two and a half years, since the oil down turn. fext saying it expects growth as the investments, the integrate and the growth of ecommerce begin to finally deliver. for "nightly business report." >> great britain has followed u.s. in restricting the electronics that passengers can carry on to flights from certain airports in the middle east. the department of homeland security added the restrictions for a select number of flights after reviewing the latest intelligence on the threat of terrorism. phil lebow has more on the

changes and what they mean for people flying to and from the middle east. >> the department of homeland security believes there's a growing threat of terrorists targeting air planes flying directly to the u.s. the agency says intelligence indicates terrorists are aggressively pursuing innovative methods to undertake their attacks. including smuggling explosives in consumer items like lap tops, tablets and ereaders. so it is inviting them to put their electronics in checked bags. on their phones ask medical devices can still be carried on board. the rule change covers ten airports in the middle east and africa which nine airlines use, averaging about 50 flights a day. >> i have received an 8 yags threat and i'll to have leave it there. we've long known many of our

enemies across the world and in the united states see as their biggest target, bringing down a u.s. airliner. >> the department of homeland security won't say what specifically prompted the change in electronics rules but events like last year's terror attacks ma brussels airport have convinced the agency and its new chief, to tighten security. >> having experience ad lot of terror coming out of the middle and in the middle east, you have to give the administration, cut them a little slack on something like this. they would not have done this for no reason. >> that means nine airlines will have to make changes on flights to the u.s. meanwhile u.s. airs are not impacted by this electronics ban. that's because none of them have direct flights from the airports in question. it is unclear how long this electronics ban for certain

flights from the mideast will last. as they said, we're constantly analyzing it and for now this is the right thing to do. "nightly business report," chicago. >> still ahead, forced to down side. why the future looks lot smaller for some big box retailers. >> perhaps no industry is changing as quickly as retail. digital start-ups are just as influential as old guard retailers. something not the case a few sea ago. and it is the large traditional stores like target and kohl's that are shifting their

strategy. courtney from las vegas. >> more than 5,000 retailers, commerce brands and investors are at the shop talk conference trying solve the same problems. give shop whaerpers what they w. there's. debate about the role physical stores will play in the future and how digital players will benefit from this massive shift. >> the fourth quarter, the last holiday season was a really important moment. i think it was an inflection point where that was the end of retail as we know it. big box retailers are dealing with it in a number of ways. target is investing in a smaller than digital average. the 1,800 stores remain the key focus. including 100 new smaller stores. one will open across from macy's

new york's flagship store. >> we said we are going to invest $7 billion in capital. and really make sure that we revitalize our stores, revitalize our brand, move into new neighborhoods, elevate our digital capabilities. >> kohl's isn't clothing stores either. they have 400 more locations than macy's which is closing stores. but like target, kohl's thinks smaller stores are a better solution. >> they've come down so we have to acknowledge that fact. open smaller stores and lean on technology a lot to make the experience better of. >> we'll have brick and mortar. there will be survivors.

they'll adopt the technology. they'll get smaller. they won't have what they used to have. >> while no one knows what retail will look leak in the future, he have one here is convinced it won't look like it does today. in las vegas, nevada. >> walmart wants technology to be a bigger part of its strategy. they are launching a tech incubator in silicon valley so kit identify changes will reshape the industry in the years to come. they said current focus will be on virtual reality and automated delivery. walmart has been overhauling to it better challenge amazon. marriott international has big plans. they want to expand and buy a lot and sell you more than a hotel room. many rivals are doing the same. why the industry wants to branch out.

>> one hotel every 14 hours. its closest competitor hilton also hascy lar plans of. >> i'll confess i have equal parts enthusiasm and exhaustion when i use that statistic. that's a lot of hotels to open. it is supply growth to be sure. bits 300,000 rooms. we think the industry globally is about 15 million rooms. to entice more peep to stay, big hotel crops offering a lot more than just rooms. preferring the urban wellness retreats to dorm-like accommodations. >> not everybody is the same. it gives them choice in experience, price point, number of guests or whatever sort of business word you would use.

>> one big disruptor, air b & b. they are saying hotel revenues will soarer monday 80% more than originally thought. with over 70% coming from chains or hotel groups, they're not worried. >> we're offering hotels that have more choice to our loyalty numbers, our group customers, individual travelers. a way of getting them to stay with us more often. >> oh 1 billion trips were made worldwide. and that's why hotels are working harder to build and provide the experiences that will get the travellers to check in. susan lee in times square. home builder lennar says renewed optimism leads to more orders. >> the company said the pick-up in job growth has buyers more confident and that led to better than expected profit.

higher hope prices and deliveries helped out. but they did post revenue that missed estimates. it caused the margin tosses decline. shares fell more than 2% to 51.57. sales fell for the seventh straight quarter. it did top expect sxagss it repeated for the year. shares fell just slightly. lockheed martin said it is more optimistic than ever regarding its growth prospects under a trump administration. it pointed to the call of increased spending by members of nato. this could result in lockheed martin getting more international orders. but shares still fell. a u.s. representative has called for the department of defense to launch an investigation into the

aerospace components. they expressed concerns the company was operating as a monopolyist and may be engaging in fraud and abuse. transdime down more than 5% following this report to 224.79. >> a controversial revision is unlikely to go away. that's according to the republicans' chief tax writer in the house of representatives. >> my sense is that it has become a given. that it will be part of final tax form plan. and now the discussions are how can it be designed in transition in a very positive way. for the rest of businesses, i would say, for importers as well, equally in the u.s., limiting moving overseas and made sure made in america products can compete around the

world. he have one wants that in the final tax reform plan. >> the border adjustment tax would levy fees on imports which is why a number of indishave come out against it. but it is not just big business that's concerned but small business as well. as the battle over tax reform continues, some are focused on a key proposal in the house republican tax plan. the proposal favors american manufacturing by levying a 20% too. items imported into the u.s. meanwhile, and ported goods are not taxed. but for them that could be detrimental. they sell high end dress shirts. only 2% of its products are manufactured in the u.s. the other 98% are in europe of. >> that $145 shirt that is made from italian fabric, that is an additional 20% tax now.

i think some people might say hey, 20%. that's not a huge deal. not everybody realizes we're already paying a huge amount. >> shipping production to the u.s. would be too costly in finding a manufacturer in just a minute. so it is to raise prices or cut workers. they have warned this will be the norm for small retailers if it goes through. causing to lay off workers or even close coors. some add cats point out that it would not be possible without it. >> it contains the adjustment. i have a lot of good thing, it will be the equipment. it has a lower tax rate.

that's the other element of this. you can't look at the border adjustment on its own. it is not a proposal all by itself. it is within the context of tax reform. >> they're hoping they will listen to the concerns for lawmakers big and small before implementing such a major change. >> the theory is that it is new and untested. >> for "nightly business report," kate rogers. coming up, encore careers. why retirement is starting to take on a whole new meaning. a new study finds most

american workers feel confident they'll have enough to retire on. even if many don't have much in the way of savings at all of among current retirees, financial confidence is even higher and many haven't retired in the traditional sense. the new retirement is not retiring. he is giving a class to the legendary central casting. one of his students 67-year-old abe. >> it is fascinating. he used to own a logistics coil but the went south in the recession. now he's pursuing his love of acting full time. partly because he needs money. and he says he's not the only one who does. >> a lot of them have kashld out their iras already. they aren't because they have to pay the rent. social security is not making

it. they found 42% of people need money to get by after retirement. but many also do it for fun. >> i get bored. >> the 77-year-old retired at age 60 after a career at universal studios. now he picks up odds jock as a back ground actor. he even did a scene with cameron diaz where she washed his cadillac she washed my car. i didn't wash it for about two months of a that. >> the fact is we're living healthier longer lives. that why in palm springs, it is a hive of activity. least half of americans expect to live to age 85. and more of russ retiring earlier than expected but we're not sitting around. >> i had breast cancer. i looked at between 62 and 65.

i thought, do i really want to say the another few years? or do i want to start really living? >> she realized with some downsizing she had enough retirement to quote, start living. now through house sitters, she house sits around the world for free. >> i plan to do this as long as i can. i love it. >> retiring is a lot less retiring than it used to be. for "nightly business report." palm springs. >> to read more about untraditional retirements, unhead to our the webb. >> let's look at this down day on wall street. the worst of the year. the worst of the trump era. the dow tumbles 227 points. nasdaq off 107. the s&p 500 dropped 29, first 1% losses in many, many weeks. >> thank you for joining us.

>> have a great weekend, everybody. we'll see you tomorrow. >> "nightly business report" has been fund in the part by -- >> all it takes is a spark. one idea to take flight. the courage to seek the unknown. to innovate, disrupt, to move us all forward. to explore a different perspective. at nasdaq, we connect the world, its ideas, its capital, its businesses, the people that drive global economy. the future isn't tomorrow. it's right now. all it takes is a spark. nasdaq.