this is "nightly business d sue herera. >> what's this the stocks. the dow closes above 26,000 for t 1,000 point run in clinching > b promise. an cell making a massive investment in ameri with a plan to create thousands of jobs, put billions of dollars to work and bring a lot of money back home. bitcoin breakdown. what goes up can come down, crypto curr is no exception. those stories and more tonight on "nightly business for wednesday, january 17th. >> good evening, everyone, and welcome. apple surprises investors and promises a big investment in the u.s. more on that in just a moment. we begin with the incredible

day on wall street. stocks rose, and rose, and rose some more. the blue chip dow index closed above 26,000 for the first time ever, marking the fastest 1,000-point move in history. recall, it was just on january 4th that the dow first closed before 25,000. the rally today was broad, with all 11 sectors posting gapes and all of the major indexes finishing at records. as one strategist said, there is just no reason to sell, which come the think of it, may be a reason to sell. but not today. the dow jones industrial average climbed 322 points to 26,115. nasdaq added 74. the standard & poor's was up a sporty 26. if you need ooef even more evidence of the enthusiasm for equitiesw sur puts stock market optimism among profession inves at a

32-year high. what tends to happen when we see an acceleration like this? mike anatolia takes a look. >> repor has the stock market rally begun to overshoot? there is no full definition of a bull market overshoot. it's not the same as a market bubble. not a mere short-term sugar rush. it i a phase when stocks accelerate higher from already high levels, the public gets excited from the masht and extrapolat good new far into the future. evidence we might be getting there. the rally has picked up plenty more energy in 2018. the standard & poor's is up nearly 5% since the tax c passe. that's twice as much as earnings es have be raised. riskier cyclical stocks are pulling away from defensive sectors. so are pushing record highs. these are all signs that stocks could be overheating in the very short-term as the public

embraces a richly valued market newly energize pied a big corporate tax cut. th market's volatility index is actually up there year, even as the dow has gone higher. an unusual combination that suggests the market might be in for wider two-way swings this year even as the uptrend look intact. if this is an overshoot it couln the best case. the '90s bull market started overshooting1997 and doubled this three years before the peak for example.e g posted in this often don't fully survive an eventual bear market. the good news is the market seems out of reach of the bears for now. for "nightly business santoli. >> shares of apple turned higher midday and the stock kept climbing after the company announced a very big investment in this country, which also happentoapple' largest

market. josh lipton has the details. >> apple's ceo tim cook is making a $350 billion pledge to america. over five years the iphone maker will create 20,000 new jobs. it will also build a new campus here in the u.s. which will be its third corporate campus. the plans expenditures of $30 billion. it will increase the size of its advanced manufacturing fund from $1 billion to $5 billion, and there are reports that the company will give employees a 2 kathleen bel $500 restricted stock bonus. cook saying in a statement, apple is a success story that could only have happened in america and we are proud to build on our long histo econ apple's announcement aligns with some of president trump's top priorities, inclus getting more companies to hire more workers here in the u.s. the white house responded saying just as the president promised

ma our businesses more kpet testify sberkt internationally tr to the american worker in increased wages, better benefits, and new jobs. for in key headline was there. they anticipate making $38 billion to bring cash back to the u.s. it's doing that in response to recent changes in the u.s. tax law in which companies pay a one-time tax of 15.5% on overseas cash. the previous rate was 35%. there are some details in this report that investors don't have, apple is not saying how much of its $252 billion held overseas it's going to be sending home and we don't know exactly how much more hiring and investing the company is do wha already were for the u.s. but analysts are already speculating about how any freed up money could be put to work. they t it could go back to shareholders for buybacks or difficult kends depends.

for "nightly business" > a number of other tech o. companies were on capitol hill today. executives from facebook, you tube and twitter were questioned by lawmakers about terrorist content an their sites. it is the latest move by government off to increase scrutiny of big tech, a sector that's growing fas and having a greater influence on our lives. julia boorstin has more. >> reporter: facebook, u tube, and twitter policy chiefs defending their company's effort to defeat terrorism saying they are working together and combining artificial intelligence and their growing employee ranks to prevent their platforms from used to recruit and train terrorists. facebook's head of global policy management sayin the company will double its employees focused on safety and security to 20,000 by the end of the year. you tube saying it has removed 160,000 terrorism-related videos since june, identifying 98% with machine learning. while tirt twitter says it suspends 75% of terrorist

related accounts before they tweet. republican john thune pushed the executives about why terrorist videos are still on line, flagging a u tube bomb making video instructing the manhattan suicide bmer which resurfaced earlier this month. >> how is that possible? why isn't the video off your this was caught by your systems. we are catching uploads of the video quickly and are removing it as soon as the upleeds are the questioning expanded beyond just terrorism as snaertsd also pressed the companies about their role enabling russian's manipulation agenda.lection and whether they the companies saying they have no agenda and they are doing everything they ca to crack platformall varieties of this as all these companies face

growin size and influence and as they take steps to assuage concerns. google announcing every video permitted for advertising must be reviewed by a person and mark zuckerberg saying fixing facebook is his goal for the year chang news feed last week to prioritize personal when they put out this product they seem to be stuck in the bubble of imagining the best stuff that will happen with their technologies and think about the worst stuff. that's why they are behind the curve. now they are trying to make sure they are ahead of the curve especially when i pot of the elections coming up this fall. for "nightly business julia boorstin in los angeles. in a wreath journal op ed published today, greg ipp called into question whe today's tech giants are becoming too big and should be broken up. he said a handful of heavyweights respect -- what

would more regulation or a scaling down among tech giants mean for consumers. joining us now is the author of the article, greg ipp. it's great to see you. >> great to talk to you. thanks for having me. >> in reading the article, you like ten situation that we find ourselves in today with these tech giants very similar to historical precedent, which was standard oil and at&t, which both dominated their respective that's right. there is important similarities and differences. the similarity of course is that they are both gigantic. both sort of technological leaders. they both are gateways to critical parts of the economy. oil and telephones in the old days or whether it is thor is net today. that gateway position gives them extreme leverage and monopoly profits. the differences. google and facebook give their stuff away for free. argue thatter gouging customers. even the stuff they do sell like

advertg rates have been falling year in and year out. they are also creating new product. so you couldn't argue their innovation is falling apart. it creates sort of a difficult situation you are in the antitrust field today. it's not large market share or . it's whether they suppressing competition. and that's where the big question is. >> so you also talk about amazon, which has a large part of online sales, but a very fall part when you look at it overall retail sales. they have a lot of e book sales but there are obviously printed book as well. how would one make an antitrust ca against any of these companies if, as you point out, a lot of the their stuff is being given away for free. in a lot of cases the prices are coming down, not going up. and they are not acting lying money on lists. >> i think it would be very hard right now given what we know

today to make that case tyler for the reasons you cite. to pr fact they are growing bigger has come at the expense of consumers. amazon offers an amazing array of stuff. they have had a prourful effect on low prices and they are kt if aing the inflation rate. the dominance of certain segments, we mentioned electronic books. sell onou are a third party the internet the fact that roughly half of shopping and internet searches start with amazon it means there is almost no point this starting your own website. you almost feel like you have to go through amazon and pay their commission. that is where questions will be asked in the future, good or bad for consumers. is there political appetite to take on this sort of fight, if you will, or discussion time? >> there is no question at the political world has gotten more

treacherou for these companies. i mean, every day we are hearing about problems of how they facilitated interference with our elections, how they are fostering socia addiction and so on and so forth. but in the anti-trust field they really look at one narrow thing of it's basically, are consumers better off or worse off because of this behavior? they are not going to make a judgment whether these companies are facilitating, you know, fake news. that's not their area. and that is why thus far they have not restrained them. but it's not always going to be the case. and we've seen in europe for exampl that their bar is lower. in europe tho say the mere factt the behavior of this company drove others out of business is ultimately going to be bad for consumers. kee track of it for greg. we wil have you back very soon. apprec it. >> all right. >> greg ipp with the "wall street to e economy now. manufacturing output rose for fourth straight month back in december. that capped the strongest quarter since 2010. the sector helped by stronger consumer spending, increased bu investment, and that

improving global economy. manufacturin accounts for more than 75% of total industrial production. accounts for about 12% of the u.s. economy. economic activity expanded into the new year. according to th federal reserve's latest read on the economy, inflation rose at a modest to moderate pace at the end of 2017 while wages continued push higher. the fed's be, a look at the economy across the country indicates that businesses in some districts now have the ability to raise prices which could lead to higher inflation. separately, e sen banking committee voted a send time to appre jerome powell to be the next chair of the central bank. the revote was necessary because the full senate did not take up powell's nomination last year. with the deadline to reach a budget deal and keep the government open past friday the white house today threw its support behind a short-term funding bill. mitch mcconnell said the senate

would take up such a measure as ed by the house. by now it's clear we are not ready to move ahead with a major agreement on long term funding for our armed forces nor on our immigration policy. compromise solutions are not out of reach. but for now, congress needs to keep the government running. >> the republican senator lindsey graham said he would not vote for another stopgap little. graham helped craft a bipartisan immigration deal that was rejected last week. still ahead, a bitcoin blood bath. coy the once hot crypto currency

it wasn't a pretty day for some of the country's biggest bank. goldman sks reported a 50% drop this bond trading revenue. that's what investors focused on even as the bank reported better than expected earnings and profits for fourth quarter. shares of the dow component fell nearly 2% on this very positive day for stocks. bank of america, meantime, saw its revenue fall short of expectations in part because of a drop in fixed income trading. loan growth was up, profits topped analyst's expectations despite a one time charge related to the new tax law. >> bitcoin prices are breaking down. afte touching a peak of nearly $20,000 in december, most major exchanges "today" show the crypto cur trading below $10,000, cutting its value in half from late last year. so what's behind the this crypto

crash? seema mody takes a look. >> rep bitcoin conti to fall on growing concerns that china and south korea, two of the largest bitcoin markets, will ban residents from trading the crypto currency. latest warning came from south korea's finance minister, who said banning crypto currencies is an option on the table due to concerns over tax evasion. further regulation is not being welcomed by all. citizens in south korea, over 200,000 of them have signed an online petition asking the korean government to not limit trading as they see value in crypto currencies south korea was one of the first countries to embrace digital current sees and it currently accounts for a significant n of trading in bitcoin. citizens writing you may think you are protecting the public but we citizens think that the government stealing our dream. et cetera a not just asia that is trying to crack down on crypto currencies. france's finance minister says he is launching a specific task force that will look into weather individuals are using crypto curs for tax

evasion. a topic that got attention here in the united states when the irs ordered coin base a widely used crypto currency trading platform to turn in records for over 14,000 users who trade bitcoin. co over tighter regulation has sent bitcoin sharply lower. today it wiped out $30 bil mark. other crypto currencies, ripple, ether and life coin are in potential danger. >> there is a difference between bitcoin being governmentless and the idea that it should be regulated to be me effective. i don't know how in the end those two are bridged. >> given bitcoin's massive 1200% rise in 2017, some bitcoin investors see the recent drop as a healthy correction. for "nightly business" i'm seema mody. let's take a closer look now at what might have contributed to bitcoin's collapse today. joining us to talk about that is matthew green. he rejoins us.

he is a crypto currency expert, and assistant professor at johns hopkins information security institute. matthew, welcome. good to have you back again. in simple terms, what do you think happened today? >> it's hard to say. crypto curres go up and crypto curres go down. sometimes people to ascribe res to that. but it's not always clear there are reasons. there was definitely some fear about regulatory actions overseas. e some indication that futures contracts may have played a role. and maybe people just panicked. hard to know. >> you know, you liken it to gambling, correct. >>yes. >> bece volatil that we are seeing in this particular crypto currency. it is a cautionary tale for investors. if you just look at the chart action in today's trading session. >> so, some people like that aspect of bitcoin and crypto currency. they like the fact that it moves up and down very quickly. but, yeah, i think for people who have invested money that d the lose, crypto curs are very dangerous and it's worrying to

me that we see so many of that kind of investor now getting involved in this field. >> another person i was speaking to earlier today likened the crypto curres to some of the internet stocks circa 1998, 1999. you didn't know how they were going to perform. even amazon, this person pointed out, lost 95% of its value at one point in its history. how do you react to that analogy, num one? and will there come a time when bitcoin or these other crypto curr aren't as prone to these as spasms of moves up or down? >> i think something has happened over the last year aside from this incredible price increase, is that we've seen a lot more money come into this field. that's kind of -- that's what is responsible for some of the price increase. but i think over time as the markets become more liquid and more developed, you are probably going to see prices start to come to a point where they are actually stable and maybe not so crazy. and also, you are going to see

technoon loical advancements in the currencies themselves that hopefully will make them more useful. kis of like the.com bubble popped and resulted in technologi that we are rely on. >> as you look further out, do you envision a time when there is widespread adoption of bitcoin as a either legitimate currency? m it's not backed by any particular government. but a more legitimate trading vehicle? >> so, it may not be bitcoin. it may be one of the other currencies like ehere yum or another currency. but, yes, i do. i used to be very skeptical about this but i think it's unheadachely crypto currencies away. maybe th 90% for a while but they are here to stay. matthew green is with john hopkins information security

tiffani has a shiny new outlook. that's where we begin tonight's . following a solid holiday shopping season the luxury jeweler raised its fiscal 2017 earnings forecas a said it would invest in technology, marketing, and s presentation. in the lathequar the company said fine jewelry and items from its new home and accessories collectio appeale to customers. the company's stores in europe and the asia pacific region did tick particularly well. so did the shares. they were up 8% to $108.99 viacom's chairwoman is reportedly pushing for a board shakeup at cbs. the "wall street journa says redstone wants to bring on new director as she renews discussiont a potential merger between the two companies. the added that cbs has reservatio a tie up. viacom's shares were up, shares of cbs were up almost 1%.

k corp. reported earnings that rose and beat expectationse nation's largest bank said the majority of the savings from the new tax law will be returned to shareholders in the form of dividends and stock buy backs. the rest will be put into investments in technolog and higher entry lev wages. shares closed down more than 1%. sharls schwab posted profits in line with expectations saying earnings took an immediate hit from the new tax changes. revenue topped forecasts. schwab shares, up 1%. the drug maker sell gene reportedly in talks to buy the bio tech juneau therapeuticics. it could help strengthen sell gene's portfolio of blood cancer drugs. juneau therapeuticics up 51%. sounds like bitcoin, to $69.25. not today. and after the bell, alcoa posted

a larger than expected quarterly loss. revenue improved but also came up short. shares were pressured ins sessi the regular day up 1% at $56.99. coming up is the long run of record low mortgage rates about >> walmart is wading into the opioid crisis. the world's largest retailer is distributi the first of its kind opioid disposal product. the product is called dispose rx water in the pact that when prescription bottle turns the pills into a biodegradable gel

that can be thrown in the garbage. the product is meant to be used by customers who no longer need their prescriptio painkillers who are concerned that someone else might take their kills. this is the industry deals with higher construction costs and the shortage of workers. that said, many builders are optimistic that a solid job market, rising consumer confidence, and relatively low mortgage rates will help propel housing demand in the coming months. even as mortgage rates stay near historically low levels they are moving a bit higher and prospective hom buyers are keenly aware. >> reporter: mortgage applicatio rose last week, which doesn't make a whole lot of sense, because interest rates also rose. usually applications fall on higher rates, especially refinances. it makes more sense though when you factor in fear. borrowers may have jumped in worried that the long run of record low rates is over. so applications to refinance led

the charge, rising 4% for the week. refinances are highly sensitive to even small moves in interest rates. and interest rates rose to their highest level since march of last year. the average contract rate for a 30-year picked jumps from 4.24% to 4.33%. that's huge. while borrowers may be worried expert economy watchers are not. >> it doesn't appear rates are going torv a runaway rate to the upside. >> home buyers may be trying to get a jump on the spring market, given how competitive the market has been. the supply of homes for sale is still very low. but there are generally fewer shoppers out this time of year. for "nightly business i'm diana oleic in washington. > before we go, here's another

look at the very happy on wall street today. and the dow's first close before 26,000. the blue chip index climbed 322 points. there s no giveback today. the nasdaq added 74. and the s&p 500 was up 26. all of the indexes closed at once again. seems like we are saying that all the time. >> all the time. >> that does it for us. i am a sue herera. thank you for us. i'll tyler mathisen. thanks from me as well. have a great night, everybody. .

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