this is "nightly business report" withat tylersen and sue herera. stocks retreat. the dow and the s&p 500 post their biggest drops of the year, and it comes ahead of a critical two-dafed meeting. coffee and soda. keurig is buying dr pepper snapple. trecutives say it could reshape the beverage indy, but wall street isn't so sure. ready, set, file. the s is now accepting returns, but there are some key questions to ask before you hire motax preparer. those stories and tonight on "nightly business report" for monday, january 29th. good evening, everyone, and welcome. you kn, investors just aren't used to big drops these days. t today they got one. the dow suffered its biggest decline in nearly fiv months. and it comes at the start of a

h m-packed week filled w earnings. the state of the union address and the big jobs report end of the week. but what got investors nervous today was a rise in bond yields with thete year yield hitting its highest level in nearly four ye just one day before the start of a fed meeting. theow jones industrial average dropped 177 points to 26439, nasdaq was off 39. and the s&p 500 fell 19. bob pisani takes a look at this big week ahead. >> stocks took a breather today, ilbut therel be no shortage of market-moving events to watch this week. we're more than a quarter of the way thrgh earnings ason, and this will be the busiest week yet. on the surface, this news could not better. earnings are growing faster than anticipated. and that's the best news you can get. so far roughly 80% of companies reporting are beating earnings estimates in the fourth quarter. now, that is way above historicn

. it normally would be closer to 60%, so we're 20% above the normal numbers. but traders have been getting nervous a ten-year treasury yields have passed 2.7%. that's the highest in four years. rates moved up five basis points over the weekend on not much news. the market has shown it does not react positively if rates move too qu now, the single biggest market omving news this week, therefore, may from the federal reserve meeting. that's on wednesday. and that's when they'llou talk rates potentially. traders are anticipating three rate hikes this year butith stronger economic growth and some wage inflation expected, many believe tout we be in for four hikes or more and the markets may have a problem with that. finally, president donald trump will deliver his state of the union address tomorrow, which could move infrastructure stocks and the dollar. nor "nightly business report" i'm bob pisani at the new york stock exchange. this wee just told us

is packed with several potential market moving events. so what is the market most worried about? and as an investor, how can you protect your portfolio? joining us is jim paulso chief investment strategist at the lufthold group. welcome. >> thank, sue. >> how significant is it going to be for the market going forward? >> i think it's very significant. i think the g market their eyes on that quite a bit. the real issue here is going to be, believe, do we get an inflation number at some point that scares the bond market e further and sending that ten-year up towards 3%? if it's back, not just the bond orrket moving no reason, but if it gets some riable dat that shows that inflation is actually picking up moving bond yields even higher, that will bring more pressure to bare on

the stock market. >> is there a risk tha the things that we got soxced about last year, rising corporate profits and a strengthening economy, that they lose their potency to surprise positively? >> i think so, tyler. imean, a year ago no one realized, you know, we were thinking we were growing around 2%. we didn't realize we were liowing at 3%. no one rd we were in a synchronized global aconomy wher economies are going to pick up. now we've kind of caught up to is. we know that the economy here is doing well, that earnings are doing fantasticcally. not only is the u.s. doingllell but over the globe they're doing good. it might may good this year. i think it's going to. both earnings and the economy both doing od. it will no longer surprise because we realize now that everything is as good as reported. if it doesn't surprise, it won't impress, and if d itsn't impress it won't keep lifting the value of the stock market like it has over the last year. so you've worked up a couple

points on what an investor should do now. you say reduce the bon like o yield sensitive stocks, correct? >> yeah, that's one thing i would do. i still think yields are going to movhigher. the fed is going to continue to raise rates this year. i kind of thinkhe ten-year yield is going to go above 3%. so i would make sure i'm not holding a lotf stocks that perform badly in rising yield environments and that would be like the utilities and telecoms, consumer staples, dividend istocrats, those types o areas of the stock market which might continue to underperform. >> and if you're going to add to equities, ybe say m look overseas, not in the u.s. quick answer, jim, please. >> iyeah. would look abroad. i simply believe they have better values ro. they're earlier in their recoveries. they're probably not as ansitive to rising yielis the u.s. market. i just think they'll hold up better if there is a correction here in the united states. >> good advice as always, jim, thanks so much. jim paulson.

to the economy now where americans are splurging. consumer spending rose solidly in december thanks to a rising stock market and improving job prospects including marginally better incomesincomes, but all spendingeant people saved a lot less. it fell to its lowest level in more than ten years. >> some progress is being made in the naftans negotiat but the u.s. trade representative, robert lelifehizer, was that he wants to see more movement. and he said as much at the end of the s round of talks to t.work that now 30-year-old trade agreem >> i am hopeful w progresl accelerate soon. we'll work very hard between now and the beginning of the next round, and w hope for major breakthroughs during that period. >> the next round will tak ace in mexico in late

february. as bob pisani mentioned just a moment or so ago, frastructure could be a big topic in tomorrow night's state of the union dspeech. on before the address there are reports the trump administration is exploringhe idea of nationalizing a next generation wireless network. the 5-g network would counter the threat of spying by foreign countries. the fcc and the communications industryinushed back a the idea. shares of the major wireless oviders which are looking forward to 5-g pulled back in trading today. coffee and k7-up,d of seems like an odd match, but k-cup maker curic think buying dr. peple sn lper snapple ve th the multibillion dollar deal could reshape the beverage business. but as leslie thicker reports, wall street is skeptical. na reporter: it's a deal that combines familias like dr pepp

pepper, 7-up, snapple, sunkist andaireen mou coffee. today dr pepper snapple reveal they're merging into a behemoth offering drinks hotcoo ld. the ceo of keurig green mountain explains why. >> it's not intuitive at first but people realize it makes total sense. ehen we put these two beverage companies together create a orth american beverage company of scale,$11 million in revenue, we get exposure to high growth areas and we get a distribution systemethat can those brands to customers anywhere they shop. >> reporter: but analysts wereba more skeptical. one wrote in a note today about how many are strugglingo understand the strategic rationale of this business combination, adding that a grand plan should become clear over me. to some analysts that means bulking up through even more acquisitions in the future radically transforming the

berages industry and sending off smaller competitors. for the executive who siged the deal, it's about reaching the consumer wherever they shop. >> beverage brands are born in small outlets, vending, convenience, where people buy a them one bottl a time. that's hard to do. ibu need a very, very sophisticated dision system. that's exactly what we have. so we're able to match that witg our st which is traditional grocery. >> reporter: they're owned by a company that owns 'spe, stumptown and pera ead. it partners with koers like foelfr's. shares dr pepper snapple skyrocketed today after the deal was announced.eh sharolders will get $104 peras share in c and keep a stake in the company which will be traded publicly. it continues the company's quest

to quench thirsts and caffeinate consumers all over the world. for "nightly business report," i'm llie picker. time to take a look at some of today's upgrades and downgrades. wells r fargo cut iing on cvs from outperform to market perform. he just doesn't like the talk of cbs and viacom merging a it could harm long-term valuations. though neither company has commented, the firm did reduce its price target $63 from 70. shares of cbs off 2%today. starbucks also downgraded. bernstein is wnading it from half calf to espresso. the firm's growth in china i not enough to offset slowing u.s. sales. the price target cut to $64 from 67. the stock fell more than 1 1/2%. allergan was upgrad by barclays. it increased it from overweight

to e weight. strength in its botox business and says the stock is undervalued at current levels. the price target lifted to 220. it was up fractionally today from 187 a share. ubs downgraded wynn resorts folling theeport friday of allegations of sexual misconduct against company founder and steve wynn. the analyst cites increased risk to its outlook and the increasing scrutiny of regulatory agencies. shares of wynn fell9% in trading today. >> that decline in wynn shares today follows a 10% drop on friday whehat news broke about wynn's alleged sexual misconduct. wynn denies the allegations but resigned from his position as finance chair of the republican finance committee over the weekend. contessa brewer has more. >> reporter: the pressure is mounting o steve wynnlthough he called the allegations against him preposterous. but investors are wondering

whether there will be real implications for projects under construction in boston ands las vend whether gam el belling licenses there and in macaun could be i jeopardy. gambling is a tightly regulated addustry. massachusetts aa are taking a hard look at theaming licenses that wynn holds. macau's regulator tells us that it's also concerned about appropriate qualifications of the major shareholders, directors and key employees holding important positions in casis. casi the first time a ceo of a major publicly held company has faced controversy in this me too movement. steve wynn isn't simply the ceo. he's regarded as the emperored invo in even the smallest of design details of his development. the corporate board of wynn resorts is largely seen as toothless. laei year rng the worst ranking by institutional shareholders services for governance risk. well now multiple law firms are

launnvingtigations into whether the board of directors failed ints fiduciary duty to the company. >> if you're the board, you want to get the stock back up and save the company a make sure you don't get sued for nothing about something that you didn't act on. >> the corporate board of wynn resorts tapped the only woman director, patricia mulroy, to lead its own investigation. but there are serious questions about what the board knew. steve wynn publicly blames his ex-wife for instigating these s. allegati and the company also put out a statement questioning the motives of elaine wynn. quote, it's noteworthy that although ms. wynn said she knew about the 2005 allegations involving mr. wynn, she never made them known t the board of directors of which she was then a member and did not raise the until after mr. wynn remarried and the shareholders of wynn resort voted not to elect her to the board. >> this is the latest in the

sexual harassment moment we're living in. nowohere's going be a lot of interesting meetings going on in boards. >> women's groups are already calling for steve wynn to be fired. >> nobody cares about due process. they care about seeing head roll. >> though he created the brand and his s personalnature is the stamp on the glamorous resorts, the speculation has already begun about what a wynn without wynn would look like. contessaer br "nightly business report." still ahead, social media under scrutiny. this time its twitter. fake followers and questions about its business. ♪ dell might sell itself but not in the ual way.

according to cnbc, the company, which went private in 2013, is reportedly weighing a sale of tits business vmware. now dell owns about 30% of vmware. it acquired that stake in the company when it purchasedc for $67 billion a few years ago. the acquisition of emc stands as the largest tech deal ever. so a reverse merger with revm would theoretically be even bigger and would allow to become a publicly traded company again without going through alli the tonal offering processes. shares of vmware fell 16% that report. facebook is rolling out a new privacy initiative.st userting to see notifications in their news rivacy o perform a checkup. the company is likely trying to stay one step ahead of eu regulations that will restrict how tech companies collect, store ar use y personal data. if companies breach the new rules over there, they would be

subject to fines of up to 4% of their global annual that's a big number. >> it is. as facebook tries to get control of privacy issues, twitter h its own problem. fake accounts and lots of them. it's the latest black eye for a company that's come under increased scrutiny from users and investors. julia boorstin explains. >> reporter: twitter has drawn criticism for a range of issuesn enabling rus manipulation of the election, for trolling on the platform. u to lack r growth and now supporting an ecosystem for bots, some o based stolen identities. "the new york times" detailing how fake followers have been purchased by celebrities, athletes a politicians, from kathy irelando ray lewis. even a twitter board member. the sketchy company behind those fake followers, devoomy. it sells bots to 200,000 customers according to "the new york times." >> this has to come off their atform.

this is no way to do business. i think twitter knows this. so do the rt ofthem. it becomes a cesspool of marketing, of malevolence, of all kinds o things. and it just doesn't help their business. >> twitter wh 330 milli users has long drawn criticism about its slow gr qth. lastrter announcing it had been overestimating monthlyus s for up to 2 million for three years. twitter estimatesehat no m than 5% of its users are false spam accounts. 15% of its users could be bots. the company tweeting the tactics used by others on our platforme violur policies and are unacceptable to us. we are working to stop them and any companies like them. this expose pmpting new york attorney general eric snyderman to launch a probe into devoomy and its practices. >> not just twitter, the entire ecosystem of these social media platforms. at some point they're going to

get regulated or people will stop usingem >> even mark cuban, with nearly 8 million followers weighing in, tweeting it's time for twitter to confirme real n and a real person behind every account and for facebook to get far more stringent on the same. i don't care what the user name is but there needs to be a single human behind every individual acunt. ceo jack dorsey will be in the hot seat. for "nightly busi i'm julia boorstin in los angeles. the chipmaker maxim integrated in merger talks tonight. cnbc says that a japanese company is in discussions with maxim about a potential dealou that be worth as much as $20 billion. shares of maxim integrated up 12% on this down day finishing 66.27. lock heed martin reported better than expected earnings in this latest quarter as they sold more fighterjets. the new tax laws will help this

year's profits andio specul. shares up nearly 2% to 3542. the packaging company westlock is buyinge capest paper and packaging in a deal that willd exp their portfolio and u.s. presence. the merger has an enterprise value of $5 million. capstone jumped 30% to 34.71. shares is of west rock were down 2% to 68.41. after the bell tlife said it was postponing the release of its fourth quarter earnings report until mid-february. they said it was due to an accounting issue. it now expects to report earnings well below wall street estimates. it ended the day downio a fra to 54.40. today -- this will butt a smile on your face -- marks the start of tax season with the irg beginno accept returns.

the most wonderful time of the year. that means nows the time to think about hiring a pro if you need help and just know that not all tax preparers are created equal. sharon epperson joins us with how to find thers right . let's start with what questions to ask. i assume the first one is not how big a refund can you get me? >> no, that's probably what you really want to know. but the question to ask first is what is your ptin, that stands for preparer tax identification number. if they're going to sign your turn, they have to have that number. you may wonder what your tax preparer's number has been, that's what that's for. the other thing is credentials. they could be an enrolled agent, an ea or a cpa, certified public accountant. there is a difference in terms of the education they've had to have. thea you have to sit for an exam and it's a wider scope of knowledge about things other than taxes as asll. the thing you need to ask is are you going to be here all year? because withhe tax changes there are so many things that

may come up that you want to know abo and yourobably need to do year-end tax planning this year even'v if y never done it before because of these changes. >> it's also the time that scammers kw you'll be filing a return and they try to front run that. >> cyeah. >> wha you do about that, if anything at all? >> ones of the biggest thi is we'll get you a bigger refund than anyone else. that's a'tlaim you d want to hear and you should consider that a red flag. if they're ting to tie their fee to the percentage of your refund, that's another bigflag. then the statement just put your refund in my account and that will cover your expenses, the fee i'm going to charge you, that's something you don't want to do. >> are there places to go for free advice o help? >> go to irs.gov and look at fr file and see if you're able to do that if you qualify by income. e other thing is to look at some tax assistant programs that they have, the vm, the vita pro.

and aarp also has tax prep services they offer to the el rly. >> i'm just going to take you with me. >> sharon, thanks so much. >> my pleasure. coming up, wt' buyer beware for those investing in crypto currencies. ♪ ♪ there is aew type of malware creeping into computers. hackers are gaining access to pcs through advertisements. the hacker can then use your pc's computing power to mine cryptocurrencies. last wee users were noticing that youtube ads were triggering theirntivirus software. youtube said this relatively new form of abuse violates its

policies and it is monitoring that activity. the crypto currency industry is like the wild west for criminals these days and unlike with traditional investments, regulations are lax. andrea dre on what you need to know if you already own crypto currencies or are considering investing in them. >> hundreds of millions just disappearing with no traceability whatsoever. >> reporter: welcome to the crypto heist. no guns required. >> with the coins, there is no regulator, there is no insurance. it is buyer beware. >> reporter: we sat down with two cyber security expert raj goel and james lime, to get their advice on protecting youry virtual curr >> it is important to consider your electronic wallet with the samearoia you would your physical wallet. reporter: how did today's g sundance kidb your wallet? >> for most it will come in

through their browsen >> i've soads of examples of malicious code that tries to scan your oucomputer, scan website for poorly secured wallets. >> reporter: last month some mobile apps were found could steal your wallet instead of securing it. >> people leaving their wallet lying around for collection by malicious code. >> reporter: and the experts say even some major crypto currency heists have come down to some very basic security flaws. >> so we're not talking about hugely complex big scary mathematical issues. we're not payingthttention to details. >> reporter: so what can you do? ou you want to invest in making sure have strong passwords. >> reporter: and line says using an off-wallet system rather thag hat run on a third party exchange is also key. >> you wouldn' leave $10 million in diamonds leaving on the bed and letting the world know. why leave that bitcoin on your computer which thousand know

about? >> reporter: experts say jumping on the ico or initial coin o offering can put you at risk. >> youon't know if it's legit mary fake and they'reurtealing yooney because theycan. >> reporter: a ceo that falsely promised a 13-fold promiseju in one month. a historic move for the agency. >> all these digital coins are very much like the stock market or the dot-com bub e in the la'90s. a gamble right now. >> reporter: even if you don't invest, cyber criminals can target your computer to mine for gold. they're solved by mining complex math problems criminals can grab massive e away of power and m free of charge. is there a way to tell if you're computer's being >> if you look at your computer's cpu meter and you're no doing anything and it's spiking a long period of time

then you've got a miner in the background or something else. >> experts say make sure you're running the most up to date security software that's out there. we can't stress this next one enough, but create a tough password and make sure you change it often. for "nightly business report," i'm andrea day. >> that will do it for us tonight. i'm sue herera. thanks for joining>> us. 'm tyler mathisen. we hope to see you back here tomorrow night.

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