>> announcer: this is "nightly business report" with tyler mathisen and sue herera. topsy-turvy. the market may still be volatile. but is the heavy selling over? budget deal. congressional leaders reach a two-year agreement, but their rk may be farrom over. wynn resigns. the man who built the casino empire bearing his name is out as ceo. and investorsre asking what happens next? those stories and more top on "nightly business report" for wednesday, february 7th. good evening, everyone, and welcome. it was another bumpy day. not as dramatic as the ones we've seen earlier this week. but bumpy still. stocks rose, fell, rose again. but then in the last hour of ading the dow gave up a triple digit gain.

the blue chips index saw it is biggest intraday reversal since .gust of 20 for the s&p 500 it was the biggest flip since 2016. if any one thing pressured stocks today it was the bond market. a weakur tre auction and a bumming deal in washington sent them on a fewer year high. that rise in terms triggered concerns that the federal reserve might raise rates. the dow was down to 25693. and -- with volatilitck are some are calling this a new phase in the market. but is there more selling ahead? bob pisani takes a look. >> reporter: it was another wild and whacky day of trading. he dow swung this a 500 rai and went from negative to up 200 points in 30 seconds but closed lower. we know a large part of the blood bath thiseek was perhaps

due to obscure trading products tied to volatility. for the past year traders have been short the volatility betting it would drop and long on the stock market. this blew up on monday. trade hers toould have their short positions on volatility and had to lighten up on stocks. the question is, have the i had treers finished flushing out all these bets? is the sell over yet. we have an analyst who thinks we may be getting close, earnings and the economy are strong and there are no signs pointing to a broader selloff. the fundamentals are still in fact. the three risks are inflation, valuation and politics. l in thet several days we have had movement in two of them, valuation and politics. both are different. so the market is getting a little cheaper. certain that's a lot cheaper ago. it was a week that's a good sign. elsewhere, mitts are hague a role .he in washington senate leaders reached a two-year budget deal

that would add billions of dollars inefense spending adding to a looming budget defit. that madeond yields to spike up and stocks to come off of their highs. higher rates are a potential head wind for the sto what is the outlook now for interest rates? steve lie dan drillsn on that critical part of the story. >> reporter: one of the reasons for heightened volatility in stocks is more uncertainty about the yut looutlook for interest . there is a lot for analysts tof re out about where super rates and the federal reserve will go from here. on the supply side the fed is ever ramping up the balance sheet increasing the supply of treasuries on the market. governmentng borros is it set the rise back up to $1 trillion a year to finance defits from the tax cuts. and the rate will rye to reflect

bettern growth numberse economy. at some point a higher treasury willompete for a return in stocks. the fed will set aer short rate in view of the economic rate. but they could view that rate being higher than it is now. so far the fed presidentays the market turmoil unt hasn't hurt the economy o changed the rateck outlook. at least not yet. >> having a bump like this has no consequence on my economic outlook. my outlook hasn't changed because the stock market is down a lubt. but if it were to go down precitously down and stay down, then it would affect my view f monetary policy. >> reporter: market corrections can be healthy and there will be

more fed speak tomorrow leading up to testimony on february 28th in the congress with the new fed chair jerome powell. now that another choppy day on wall street is in the books. here's david leb wits of jp morgan asset management. you say this is not necessarily a new normal b a retur to normal do you anticipate the type of volatility that we have seen in the past couplef days to continue for a little bit longer? yes. >> or have we washed out some of the players in the market? >> you know, i think we have washed out some of the players. inthat the large moves are most likely behind us from a volatility standpoint but the thing that we have been reminding our clients more than anythings that 2017, and the beginning of 208 were actually abnormal myears, f a volatility standpoint. usually the market goes down by

about 14% during the course of the year. the maximum drawdown last year was mere 3%.la lity is come back but it's going to temper from what we've seenver the last few days. >> on the 29th of january, you guys naile it you were talking at that point about the jobs report that had come out and youroncerns about inflation and so forth. there has been a lot of talk utis week, ahis is a healthy pullback. how doou distinguish between a healthy pullback and one that's not healthy. >> it depend on whether the de ying fundamentals have changed. economic growths looksland so. profits are rising. rates are expected to go up onlygradually. we see positive signals that hggests the p of least resistance for stocks is higher and that makes ate buyer a opportunit opposed to a reason to batten done the hatches. >> one more is that the fed may

uive morely and more often not only because of the move in the bond yield but withthhe moves i market with inflation creeping back in. do you agree with that? ? >> we have been in the camp that the fed is going the hike threer four times this year. it shunt beisruptive to t equity market. we think 3.5 on the ten year is the pain point for equities. we have room to run. >> yesterday it was said, you have to embrace the voatility. lot of investors say embrace my youw k what. that is not an easy thing to do. talk me through how to think about this heightened volatility anditmbrace >> volatility is normal. this is why asset allocation is important. it's impornt for diversity e it.

the best thing to do is embrace the volatility, stay thean cour not make any chains at the current juchkture. >> david leb vits ofmo jan asset management. the up heaval forced investors to pull $17 billion from the spidert. it was hit by its biggest four-dayw outf ever. yesterday alone, $4 billion was nked out. meantime, in washington, after months of a legislative log jam, lawmakers made a breakthrough on the budget. entioned senators agreed to fund the budge for six week and agreethe ray funding hefls over the next two years. but there are still some differences that need to be hammerout. >> reporter: on the senate floor wednesday a rare showing of bipartisan with mitch mcconnell

and chuck schumer unveiling a deal six months in the making. >> the compromise we've reached will ensure that for the first time in years our armed forces will have more of the resources they need to keep america safe. >> the budget will also benefit many americans here at home. >> reporter: the two-year deal adds nrly 00 billion to both military and domestic spending,e cancellingous budget restraints. it also raises the debt ceiling until after midterm elections and includes more funding for hurricane li, community health centers, and children's health insurance. while the sate leaders have agreement, they will need time to turn it into legislation. >> this bill does not conclude the serious work that remains before congress. >> reporter: lawmakers need to pass a short-term spending bill before thursday night to avoid a government shutdown. the house of representative will prove challenging. democrats are being pressed by their base on migration.

protesters showing up at the capitol today. daca solution noticeably absent from this deal. house democratic leader nancy pelosi taking to the f or for more than six hours in a arathon effort to try to force an immigration vote. >> this package does not have my support, nor does it have the support of a large income of members of o caucus. >> reporter: and conservatives balk at the higher debt and non-defense spendi >> i'm not only a no, i'm a hell no. >> reporter: to avert a shutdown those party difrences must be rked out before the clock strikes midnight tomorrow. for "nightly business report," i'm kayla touchy, washington. t ae to look some of today's upgrade and down grades. a number of alysts upgraded snap and were broadly upbeat about its recent earngs report. the firms highlighted snap's designed app a forecasted improved user trends. some analysts were also on snap's auction-based ad platform. the stock surged 47% to $20.75

but onenalyst remains cautious on snap. susquehanna downgraded the rating on the stock to negative. they face competition as well as limited presence outside the u.s. the company lowering its stockg price t to $7 a share. sharls schwabas downgraded to sell to neutral atcity. the firm sites schwab's elevated expenses. the price target was cut to 49 from 60. shares fell 1.5% to 52.03. spirit airlines was group graded to outperform from neutral at mcquery following recent pilot's union agreement. the price was lifted from 47 to 58. shares fell trarksally to 400. >> passing along the savings. utilities get a tax break. now youak may get a bn your power bill. c

>>ino tycoon steve wynn has become the first ceo of a publicly traded company to resign in response to sexual misconduct allegations. those allegations against him, which he denies, span decades. the current president of the company will step into the ceo' role. and investors approved, sending

the stock higher by. but what happens next to the company whose founder is synonymous with the brand? contessa brewer reports from las vegas. >> reporter: up and down the las vegas strip, iconic casinos stand as monuments to steve wynn's vision and design inspiration. but the man who i partly responsible for modern-day gaming has had a reversal of fortune. wynn's resigning but says he has been dealt aha bad . quote, in the last couple of weeks i have found myself the o focus an avalanche of negative publicity. as i reflected on the environment this has created one in which a rush to judgmen sakes precedence over everything else, including the facts, i have reached then conclus i cannot continue to be effective in my current roles. since january 26th when the wall street yurnl outlined dozens of allegations of sexual misduct

against steve wynn, the sto plummeted. his own birthdays launched an investigation. shareholde sued wynn resorts for breach of fiduciary responsibility. and the culinary rker's unit texted its 57,000 memrs urging them to report misconduct. td gaming licenses are at stake. nevada gaming control board is continuing its investigation. >>eporter: a n chairwoman, becky harris is leading nevada'. inqu where wynn resorts makes the majority of its revenueaming officials demanded more details. >> we will not back behavrs that we believe puts casino operations in our state atteris. >> rep the company is building a $2.4 billion resort and casino. lookingng commission is not only at the ceo's actions but the board'sas as well. the lead investigator zeroed in

on theaire to disclose the 7 5 million settlement in 2005 with a manicurist who worked for the company. the birdie reluctantly accepts the resignation with a quotehe y heart. matt maddux stepped into the position of ceo. one of the challenges he face is how to brat this company without its found he. in a recent security file the company woet ifhe we lose services of mr. wynn or if he is unable to devote attention to our operation force anyre other on our businesses may be significantly imird paid. w the new ceo needs to demonstrate the company can function independent of its founde wynn resorts remains committed as ever to withholding the highest standards and being a supportive and inclusive

employer. steve wynn calls the allegations preposterous. he may be following the gambler's advice, know when to hold them and know when to fold him. tonight's market focus. a publisher said it was selling the los angeles times and other assets to a billionaire investor who is also the ceo. nant hetrth. k says the deal will allow it to finally and fully pay down debt, imprite its cash pn and expand digital offerings. secondly, they cleared ross levenson ofrongdoing following an investigation into his connect involving sexual harass ant allegationsinst him. levenson will become the head of tronk's newly created digital division. tronk shares up 19% to $21.55. despite cutting back on

promotions michael kors said sales picked up momentum during the holidays and the latest results showed just that. earnings were well ahead of estimates and the handbag and shoemaker now are expecting full year profits td exc expectations. shares rose 1% to 66. $1 snum humana reported profits better than expected as higher premiums in the medicare business helped results. the company quicked its quartly dividend to 50 cents a hair and gave guidance that was ahead o estimates. shares off 1.5% to 64.90. hasbro said weaker sales for toys based on the movies frozen and star wars hurt results. profits at the toy maker beat estimates but sales couldn't keep up. hasbroaid the toys r us bankruptcy hurt and will be a ad witnessed by mid year. toys r us is one of hasbro'sbi

est churs. wait watchers is looking to rebrand itself saying it wants to focus on creating healthy habits and also appeal to a younger demographic, namely teenagers. to do that the company is offering free memberships. it hopes to hit its revenue target of2 billion by 2020. shaerz rose to $73.97 an activist investors isperging value to explore options including a break up o potential sale. blackwell's capital asked the grocer for three board seats but super value said no. super value uhares were 5% to $15.42. after the be tesla reported a narrower than expected lossnd revenuehat topped stilts. the automaker said it's on track to produce 5,000 model 3, vehicles a week by theonnd of

the squarter. manufacturing issues in the past caused tesla the miss its delivery goals for the model 3. shares were volatility in afterhours butinished the regular day up 3% $20345 2 ist century fox said higher ad revenue help earnings top estimates. the media giant is interested in selling many of those assets. shares spiked during the regular situation. but then were down. after the impact of the corporate tax cuts that are now lou one company is working to pass its savings along to consumers. elan maui explains why you may billower electri >> reporter: there is a surprising new write side to all the changes in america's tax code. your electric bill could be going down. because this l cuts the corporate rate from 35 to 25

today generating a windfall that they are required to pass on to you. petco announced it's cutting rates f household in maryland. that translate to $3 off the monthly bill. similar moves are planned for digital wear and new jersey. the ceo told us this is a direct result of tax cuts. >> the rates that we charge our cus always mirror the costs we have. if our costs are decreased because of lower tax rates we need p tos the lower tax rates, the lower costs onto om custs. >> reporter: local regulators have to approve any changes in your utility rates. that's why you are only now t starting to s reductions ripple across the country. >> this is probably the largest corporate tax decrease we've seen in the utility industry in as long as i can remember. it's important -- agn, we thought it very important that we move proactively with oursi comms that we reach out to

our commissions to come up with a plan to be able the return thos benefits. reporter: the reductions started in illinois with commonwealth edison, one of pepco's sister companies bringing down their average by 2 or $3 a month. in florida, they are using the savings to pay for last year's devastating hurricanes. that's going to reduce bills between 3 and $5 a moh. the savings are just a knew dollars an mo but considering how many americans get their electricity from a private power company the numbers willdd up. ylan mui in washington. in cg up, why t for sale signs are already being planted and it's not spring yet.

stay here's a look at what to watch for tomorrow. tomorrow marks the ordeadline the government to pass a funding deal to prevent a possible the latest weekly jobless claims are due out. and thela plphia fed president patrick harker will deliver remarksth o current investment environment to college and business officials. and that is what to watch for tomorrow. r>> a warning from consumers reports about ymart tv. it could be hacked. the mazine's analysis shows that security in some case is so

poor that it's testing team were able to take over complete control of theh tvs, lau apps, change the channel, raise and lower the it was even possible to track your household's persol viewing habits how much more chosely than you may realize. harley davidson is recalling 175,000 motorcycles. the concern is that the brakes may fail on som 2008 through 2011 models. regulainrs have been stigating the be you since july of 2016 follow 4 reported complaints that included three crashes. the solar industry in the u.s. lost nearly 10,000 jobs last year. that's almost 4% of the industry's total work force a. report from the solar foundation found that activity sloweyelast due to policy challenges in some states. the group the say however, that the overall outlook is positive given the rapid and steady growth the industry has seen in the past six spring has come early this

year. at least in theriousing market. ng interest rates and falling supply have the buyers out early hoping to get a headstart on what could be one of the most competitive real estate markets in history. diana olick has our story. >> reporter: this half million dollar denver home was listed for sale last >> yeah, i like this one a lot. >> and this is 587. >> just came out on the 1s. >> reporter: it already had 37 showings before the saturday open house? there is simple had he not enough homes to go around for people looking to buy them. >> reporter: the supply of homes for sale right now is at a record low not just in denver, but nationwide. demand is surng and that has shoppers out early hoping to get a jump on the spring arket. >> it offseason but i'm experiencing decent competition. i thoughts i was at a higher ice point where it would be easier for me to get a place without higher competition.

i have put down two offers and been beaten out by cash offers. >> reporter: it's stories like that tha hashis couple out looking early well? we haven't put in any offers but we understan it is a really tough market. >> we are sort of doing everything we can to be prepared, to make a good offer, and a competitive market without contingencies and that sort of thing. >> reporter:ot only are potential buyers facing low supply, but high prices and raising interest rates. it has the usual spring market starting in winter. >> in the short-term i think it's going to cause buy side demand, you know, as people try befor into a home interest rates get to a point where they can no longer afford a home that they would like. >> reporter: higher rates could throw coal water on overheating prices. >> it has a basement for the kids. >> that's true. s>> reporter: but demando strong that even higher rates

are unlikely to cool the competition. for "nightly business report" i'm diana olick in washington. before we go let's look atg today's closmbers. they do not cover the intraday volatility. the dow dropped to 257893. nasdaq fell 63 on heavy selling in big cap tech names. and the s&p 500 was off 13. stay tuned for that does it for us tonight. i'm sue herera. thank you for joining us. >> ith tyler en. thanks from me as well. have a great evening, everybody. we hope to see you back here tomorrow.

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