this is "nightly business report" with tyler mathisen and sue herera. busy in-day. stocks were wp saad. sinking, recovering, over and over and over again as thecuow yesterday's losses in half. whatnot do. how you can protect yourpr save ecution the volatility if you are retired or nearing retirement. thrill ride. tleem parks deliver for disney as the dow compone reports a rise in revenue and easily tops earnings estimates. tho stories and more tonight on "nightly business report" for tuesday, february h. gooevening, everyone. what a wonderful turet on wall stf you are long on the stock market but it did not come easy. volatility reigned everywhere today as shock waves froms

yesterdayramatic selloff rippled through the financial market. ocks dropped sharply at the open. then they only to fall, and soar again. in the biggest comebackor the s&p 500 since 2011. let's get right to thelong numbers. the dow jones industrial average rose 560 points to 12, 912. get this. at the open, the index immediately fell 567. there issing is something about6 think about that when you play the numbers. the nasdaq add 148. the s&p 500 was up 46. investors blamed the vol on intrarate concerns. computer driven trading, and object structure volatility funds that use leverage. bob pisani nowlo with a at today's action from the new york stock exching. >> talk abonother roller coaster ride for the stock market. the dow tumbled 560 points but

reversed course. at the end of the day, the dow travelled at more than 1,000 point rang we haven't seen have tilt like that in all of 2071. the dow hit correction territory earlyon. we were down 10% from recent high. but at the close it managed to top the biggest comeback in recent year it's not an economic scare. the credit markets are doing fine. gold did not budge. corporatll america is s healthy. the world is still spinning. remember, the three major keskings to the mare number one, inflation, number two, valuation, market expenses, and third, politics. so in the last 24 hours, nothing has really changed on the inflation front or even on the political front. so what's different? valuation risk was a little lower. that may account for t late in the day. the market set going a lot cheaper we've gon from really overbought to really oversold in

a little more than aweek. not dirt cheap but a lot cheaper than it was a week ago. and erybody said i'd like to buy 10% below the market. looks like some people rdid. "nightly business report" i'm bob pisani at the new york stock he can change. >> for more why the market may be trading this way is peter costa of empire. thanks for joining us. >> glad to be here. >> what wa it like down there today, and what does your trader's gut tell you about what isne coming ? >> several thing. number one, it was crazy. you know and i hav been in some crazy markets. not crazy busy. but crazy in the movements. you know, having the market up 100. then down 75. then up 100 again. the market whipsawed all day long until right after 2:00 when started its rise. and you know what, everything kind ofettled in as we were going up. but this is volatility. and yo know, thi thing, it

doesn't go away overnight. so what i think w ut will end happening is it will probably volatile the next couple of days, early. next we and things will start to stable aye at certain levelndhe market will look at more fundamentals, earnings growth, what's goi to happen with interest rates, so on and so forth. right now, for traders down on therading floor this is actually a very profitable time because our clients are very active. >> yesterday, peter, felt to me like machines reacting to t triggerst only they could see. in other words, programmed ading and so forth. today may be a little less so. but how much of what is goi on over these past couple of days is really human beings buying andselling? >> i think today there was more of the human element as far as traders getting involved because of the volatility and the price points where people could get in and get out. yesterdayly, definitely there was no ititutional selling as

far as i could see. it was all computer driven and a lot of that was also the buyers disappeared.re once tere certain levels reached, the buy side or the buy orders canceled. tharket had the downdraft and nothing could really stop it until at some pnt something opped it. more like maybe some institutional buyers came in a the very low levels trying to pick a bottom. today was more of a trader's market. there were a lot of, you know, the ings. not so many computer programs. but there were programs going into the close. so it was a mix of both. we want moreal instituti traders in. we want more institutional interests in. t i think they have stepped aside for a little bit to let this market kind of like play o this and get back whatever they are looking to accomplish either on e short side or the long side. they will be back in. i think right now they stepped awayust a lib. >> understandably see. eter costa with empire executions. the treasury secretary has been watching what has been

happening on wall street and today told kayla touchy that the fundamental of the economy remain strong. >> the economy is doing very well. tax reform is clearly helping earnings a lot. and thearkets look like they are functioning normally in terms of liquidity and other things. >> what about the reaction across the world? >> again, markets move in both directions. and they are functioning very well. i'm going to -- >> -- volatility. >> people should be focused on the long term investment. people have been focused on the stock market over the long term has been one of the best investments. >> the head of the s.e.c. told lawmakers that the m functioning well and that his agency continues to money on the the volume snilt as-- volatilit >> as i sit here today there is nothing that concerns me from a functioning standpoi days like yesterday, our job to look at them.

>> and clayton declined to comment on why stocks fell so sharply yehrerday. ghout the day markets experts were sharing their thoughts on what haseen happening in the stock market and offering opinions on how it all might play out. >> a moment of volatility like this and a pullback in price, quite frankly it's to be expected. rethink as group we need to take a deeph and realize we are going to be okay. >> i do think these types of events usually take two to three weeks to wor through the system. with that i think volatility remains elevated at least two or three weeks. >> markets remain tn and volatile and that's just what you need. >> that's what some of the pros have to say. what about u, the individual investor? well we took our cameras to find out. i'm keeping moving in all of the friendsy and hoping that my portfolio w l holdout. and i have a couple of numbe plus years i'm hoping to be in

the market. i hope that's on my se as well. >> the stock market will return, maybe not right away. it was a bubble of course. everybody understand that it was riding up like crazy like a rocket. >> my thoughts are a little ain calm but i r because i have been through a number of market cycles and i realize time is on our side and as longs you hole on it will come back. >> i'm going the wait it out for a while. i have been through this before. i was into it in 1987, and then in 2006 or 2008. so it always comes back. >> his wife is hitting the sell bu saying get it out and get it in cash. >> i think the most important thing is to think for the long term. most people see this and get skpard and don't realize that they have another five or ten or 20 years and over time few things have done as well as the stock market as warren buffett will tell you. hey have it right. let's bring in a market watcher

who says a pullback is a goo t thing f market. jeremy siegel, a professor at university of pennsylvania's warden school of business. over time, professor, the stock market has really performed better than almost any other asset class. >> it has. >> does yesterday change that at all? >> no, not the long run. what we real had washe marke went up too far too fast. i was even saying to myself january is crazy. momentum players. now momentum invesrs are those who say i'm going to follow the trend. i don't dare about valuation i'm jumping on they train and t place their stop orders, sell orders just a few percent below. and say when the train starts slowing i'm going jumpon. interest rates were set to go up. friday there was a ltle problem. it multiplied and they all jumped off yesterday. and that produced a vacuum and

th decline. we have got much sounder values right now. you know, there is an old sayin on wall street that goes back decades called up the staircase, down the elevator. and january was our staircase. and early february was the elevator. and this type of behavior is not something new. it's been true of speculative markets for ages. >> did the shakeout yet -- did all of those momentum mayors take the elevator and get off, do you think? >> i think most of them did because it wiped out the gains of january at the low. you know i'm not saying all of them are out. you know, even last year, i said this year not going to be as good, anywhere near as good as 2017, and it's going to be challenged by higher interest rates. we have a very strong economy. i think the fed is going to raise three, i think four times.

higher interest rates are ave nega factor for stock prices. now on the other s you have great earnings. so it is a battle between great earnings and the higher interes rates. and that's what i think we are going to see throughout 2018. >> professor, talk to the individual inv wtors i can well imagine might be concerned at what he just hrd peter costa say. and that is that yesterday's spasm of selling was being driven largely by computers. have the machines got too much power? and what should i as individual investor think of that? >> i'm not sure of that. because momentu players, speculators -- they were around in 1929. they kept on driving the market and they were around of course in 1929, ur1999,g the internet bubble. it is a feature ofla speve markets. whether you set it on a machine or a human being, you know says i'm selling at this point, really the final result is th

same. it's just that in today's world, it's going to happen so much faster. it's going to take place in a matt of minutes, not a matter of hours or days. t.>> all ri professor siegel in philadelphia. congratulations on the eagles. >> thank you vy much. i'm proud. >> thank you. still ahead, the says he welcomes a shutdown. even as lawmakers say progress is being made on a budget deal. disney shares closed higher today. and after the csing bell, the company reported earnings that blew past wall street estimates. des me earned $1.89 a share. that was a fl .28 per than

forecasts. revenue up nearly 4% from aear o to $15 billion. investors liked what they heard about strong attendancet theme parks and resorts. julia boorstin now with more on the quarter. she spoke to disney's ceo. >> disney beating expectations thanks largely to the outperformance of its parks asi resorts di. the company saying it saw higher spending and higher attendanced its u.s. parks both in orlando and anaheim, california. also saying it hasig seenr performance of its cruise line division asla well as disn paris. >> it starts with success across the globe, partilarly in som of our international -- or in one particular international park and sort in paris that it had a number of years where the numbers weren't that good. and they have improved substantially. but we have also had record results for our domestic operatio as well. record revenue, record bottom line. an across the board success

story. >> also saying he is optimistic about the company benefitting from bigtal distribution of its media networks such as espn. he also announced espn plus, the newubscription app that's launching time this spring will cost $5 per month. for "nightly business report" i'm julia boorstin in burbank, california. the batteried tech sector bounced back aftering getting walloped yesterday. it is a sectornvestors watched closely since it was the best performing one last year. josh lipton is in san francisco for us tonight. >> reporter:s volatility returns to the stock market, investors have been selling their winners. that includes some of biggest names in technology. that comes despite a prettyood earnings quarter for the sector. profit and revenue growth both exceeded expections but that doesn't mean last year's hottest rctor is immune to a broa decline. >> these companies just reported q 4 earnings last week. by and large what the numbers

show you is that demand fundamentals remained extremely strong, particularly forme dy like an amazon. even for a facebook or even for an google or a alphabet. if there is any pushback is to be had is on the margin. e fact that all these guys to continue to grow at thatevel they are going to need to invest and therefore there is potential or margin contraction over the next year or two. >> reporter: take apple. company recorded record quarterly rev and earnings per share earnings per share but sold fewer i-phones than expected during the holiday quarter. then there was alphabet. it jumped % from the latest report. but there is concern about the fees that it pays partners for traffic. there are still reasons why tech is an attractive sector tost ins even as they prepare for the possibility of more volatility. one reason is dividends. some of those can be found in the bluest of blue chip tec

stocks. for "nightly business report" i'm josh lipton. san frhecisco. ubber met the road at general motors. that's where wegh begin tos market focus. the automaker said cost cutting initiatives and demand for suvs and cross overs helped them top estimates. gm saw a lot of bright spots in the quarter. >> very, very pleased wit the results in north america. a record there at $2.9 billion and 10%argins in the fourth quarter. another half a billion dollar quaromr of equity i from china. and really important improvement in our gm international marketsi another pble quarter in south america. >> gm finished up almost 6% on theay at $41.86. strong demand for botox treatments helped he willer jen post better than expected profits and sales. igparately the cpany said its experimentaline treatment performed better in a study. up t 168.33 there tapestry said

its coach and stewart widesman bran helped overall sales edge past expectations. earnings also came in ahead of expectations. and the company hiked its guidance for the year. that helped push tapestry up more than 9% on the day to 49.02 dwl. the healthee insurer teen raised profit guidance for the year after reporting stronger than expected earnings. the company attributed the stronger results to higher enrollment in its affordable health care business and benefits from the new tax law. send tee finishing up more than 4% on the day to 103.67. after the bell, chipotle saidha burrito -- which i pettily shares were volatile in

the extended session but ended the regar day up more than 1% to $304.33. out aer the bell,nap reported active user growth that impressed wall street alysts. the social networking company also saw sales pick up.n larger t expected gains there. snap shares popped inut after-hours finished the regular day up 21 cents to $14.06. the president today called for a shutdown of the government if congress does not pass border security measures >> if we don't change the legislation, if we don't get rid of these loopholes where kill remembers allowed to come into our country and continue to kill -- if we don't change it, let's have a shutdown. we'll do a shutdown. d it's worth it for our country. i'd love to see a shutdown if we don't get this stuff taken care of. >> the comments came as lawmakers on capitol hill said progress was being made on a spending bill t to ke government up and running past the friday deadline. elon mui is in our nation's

capitol tonight. where do we stand on theseti neions to keep the government open. >> reporter: it does not look like we are headed for a shutdown. the house is looking to pass tonight a short-term spending billldhat w keep the government open through march 23rd. it could keep funding for most agencies at current levels but w itld increase spending for the defense department and fory communealth centers. this is a very dfer tack than the senate is looking to take. over in that chamber both em republican andratic lead remembers trying to come to a compromise on a long term spending bill that would fund the government for two years and it would increge spendoth for defense and for non-defense. and that is a point that is very important to democrats. ey call it parity. and they say that would be a win for w them. course keeping the government open though is one of the key responsibilities of lawmakers. this is a long term spending al that h alluded them for many months but both sides say

they are very optimistic they can reach a compromise soon. >> one of the things that wall street is also worried right now is the status of the debt ceiling. what can you tell us there? >> sue, this is something that is on the tablede to be inc potentially as part of that longer term, two-year spending deal. but lawmakers have not decided whether or not to actually go forward wit that strateg yet. the deadline for raising the debt ceiling is around mid march according to the congressional budget office. so they have to do this soon. unclr if itill be part this larger spending deal or not. >> let me understand this. is immigration part of, tied into, thel budget d that you were just talking about? and if it isn't, is ide prt ready to veto a long term spendingal >> it remains unclaire clear. right w what we can tell you is that immigration is a separate issue from this

spending deal. those are going to be on separate tracks here on capitol hill. >> thank you. ylan mui on capitol hill. today we learned that the trade deficit has soared to a nine-year high. for 2017, the gap leaped 12% to $566 billion. last year, the u.s. imported more foreign-made cars, computers and cell phones. the deficit with china hit a record. and imports were mexico also hit a new peak. coming up, are you retired or nearing it? what you should do and not do in this type of market. look ats time to take a some of today's upgrades and down grades. exxonmobil was downgraded to

underweight from overweight at bar close. the firm says the stock is v richued and sites a structural deterioration in its upstream business. objection exxon's price target was cut from 1. the stock fell th. same analyst upgraded chevron from overweight to equaa citing improving fundamentals and an attractive valuation. shares were up 4% to $117.18. >> micronech upgrated to overweight from sector weight at key bank the firm says the stock is too inexpensive to ignore following upbeat earnings guidance. the stock climbed 11% to $43.88 and fellow chip maker cirrus lodging downgraded from hold to buy atneedham. the firm sites weak third quarter results and guidance.an ysts also concerned about weaker smart phoneemand given

that cirrus makes chip for apple's i-phones. the stock off 3% to $43.40. >> the flurry of activity in the markets has manynvestors king a closer look at their portfolio. reat should the average investor do tore for more volatility? what about soon to be retirees and those in retirement. joining us now to offer insight on that is say fncis. nice to have you. >> thank you. great to be here. >> given what we saw yesterday and then today, if thein you ar retirement, what should you do or perhaps better said, what should you not do? >> exactly. the latter part i definitely true, what should you not do the biggest thing you shouldn't the do is you shouldn't we have seen that individual investors who think they are smarter than the market are actually not andnd theidual investigators underperforms the mark 10% because we tend to

sell at the worst time, like now, and buy at the absolute worst eme, l bitcoin. do you remember that one. >> yes, we do. >> stacey drill home the point. if you are going with an asset allocation plan of60% stocks or 40% bonds or 50/50, whatever it is, if you are out of the stock market for a very small number of days because you got an itchy trigger finger, you miss out on a lot of the returns instocks, right? >> you miss out on a huge amount of those returns. a case in point is we look at 2008. people who were out of the mark that year after, for many of them they still haven't alsos thatcouped the they saw. those who -- the losses that they saw. the who stayed inhe market even in the worst time, february of 2009 rlly at the bottom, that's when it started back up. you have to be in the market. and the most important thing i that anything, yesterday and today was a gift four. it was a wake up call. it was u a wake call after a

year in 2017 where we really't diee much volatility. it's important to make sure that you have weatherproofed your portfolio. because i have to tell you, for 2018 there is going to be more storms around the corner, definitely more than what we saw last year. >> look at your asset allocation, make sure you are comfortable with it. and you have made the point in the pas to us that make sure it fits the goals that you have for correct?nt. >> exactly. unfortunately, a lot of people think of their portfolio, i feel, the wrong way. the portfolio, it's truly an engine. it is an en tne to get you your goals of that retirement date, of livingif that bea golden years in tampa, somewhere warm. maybe it's albuquerque. >> uh-huh. >> essentially, that portfolio engineto be your and so what engine do you need? you need a souped up engine. you are going to have more stocks because you might be behind. otherwise you could have a prius engine becse you have been

able to save enough you don't k.ve to take on that r >> stacey francis, thank you. with frannis financial. let's look at today's big turnaround on wall street. the dow rose 567 points to 24,912. that cut yesterday's losses basically in laugh. the nasdaq added 148 points, better than 2%. the s&p 500 up 1.75% or 46 points. >> it's only tuesday. >> it's only -- no wonder we are >>l so tired. know. that's it for us tonight. i'm sue herera. th k you for joining us. >> i'm tyler mathisen. thanks from me as vewell. great evening, everybody. and we'll see you tomorrow.

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