business report" with tyler mathisen and sue herera. rapid recovery. the downs g more than 300 points, but some say the reveal has come too far too fast, and the new worry is about stocks running back to records. the race to one trillion. tech companies aren growing value, and it's possible one could reach that milestone this year.s sta scams. the irs warns of new cons. and the agency says the schemes are getting worse. those stories and more tonight on "nightly business report" for thursday, february5th. good evening, everyone. and welcome. what a difference a week makes. it wasn't that long ago when stocks were making his totoric a stomach turning drops. but that seems like ancient

history. stocks posted their fifth day of gains despite points toward a pick up of inflation. stocks soarth. dow jones industrial average advanced 306se points to c back above 25,000. theasdaq added 112. and s&p 500 was up 32. just as theselloff happen at break neck speed so did theco ry. mike santelli has a look at whether the bulls are back to stay. >> is a five day rally in stocks moving a bit too fast or is this a recovery from t market correction? conventional wall street holds that steep pullbacks usually take weeks or more to recover after an initial bounce. thendex is slipping back to recent lows after a retest or a base building process.

the pattern could unfold in coming weeks but the chance for a quicker rebound toward the late january highs can't be miss dismissed right now. the history says the fasr the drop the quicker it can be recouped. the recent tumble was the fastest from an all-time high in 80 years. there was also theeverse selling of funds on volatility being low. the tumble ultimately sent stocks lower than they would ve fallen. this seems largely out of way. finally, the rise in bond yields that spooked stocks has slowed allowing a higher range in response to strong growth. brthe frets over inflation, bond yields and high stock valuations but action of if past few weeks seems to show that even after such a sharp selloff thisull market will not go quiet lee. for "nightly business report" i'm mikesantoli.

>> which stocks are solidly on the road to recovery? our dominic chu did some digging. >> while the stock market overall may be a ways away from getting to record high levels certain individual stocks have done a much better job to debting back to reclaiming some of their 52-week or bette highs. we looked at the s&p 500. turns out 93 members there are within 5% of their record highs. 81 stocks within the s&p have hit their recent j highst so far this year to date period. and 13 of these stocks have hit them again just this weeke. al one of the names that really has done a good job of getting back towards those record high level, vp corporation, the apparel company, within half a% of record levels. defenseni com also bouncing back quickly from their lows.

northrup grumman is one of those. and coach. and nike, within a cple of% away from its record highs. as we look at where the biggest bounces have been, some big names have already gotten back to close to whe they were before the recent selloff happened. for "nightly business report" i'm domin chu. the tech sector was one of the best performing today. for a lylehilemazon surpassed microsoft as the third most valuable company. that was short lived thanks to malaysia's 2% gain. of the biggest companies in the s&p 500, the top five with tech. apple has the market cap a 876 billion. followed by alphabet, microsoftm on, and facebook. >> which will be the first to reach that milestone, 1n trill dollar in market value? joining us to talk about that is daniel ivs, head of technolog research at gbh insights. tdan, we don't wo bury the lead here. which one of those contenders is

likeliest to hit 2 trillion dollar first? apple has the w lead? continue to firmly think it's apple. and we do believe $1 trillion happens by the end of 2018. we've definitely seen some sort of ups and downs with apple, especially with the iphone x command. holding seen the hand period during the last call-out week. when i look at the product cycle, 350 million upgrades that are up over the nex 18 months. i believe that combined with the sum of the part valuation, $300 billion buyback announced in april that's the one we are betting on in terms of the horse to hit the trillion darr market cap first. >> you think amazon actually has the most momentum? why? yeah. if you look at amazon right now -- i also think amazon does hit 1 trillion dollar. i just think they are the second one to hit it. if y look at the consumer piece right now, prime members, ou are up to $90 million, spending 25% year over year

increase. and that's only in our opinion the third, fourth inning of this sort of consumer sort of opportunity foramazon. separately you look at the enterprise with cloud and aws. they are really on the cusp, along with microsoft, of really getting this massive secular trend that it's really an amazo and microsoft sort of race at this point. sum of the parts on amazon -- i name.nue to view that as a 15 to 20% higher. i think that's one that investors continue to looks at a leigh leader. >> we like amazon. we like apple. you would feel comfortable putting freer money in what with the other two,ph et and microsoft? are they buys in your book. >> m hrosoft more tail winds in terms of what is happening on the cloud upgrade cycle where you ine really sta to see more enterprises move cloud with

microsoft front and center. when you lookt alphabet, you know, inth think this quarter w shaky.ul mately you look at you tube, you look at search. the metization story continues to be alive and well. you talk about tech stocks. the fang-led recovery, we are seeing no signs of that slowing downith apple t first to hit $1 trillion in our >> thank you. the nominee to head the federal trade commission is open to possibly examining tech companies in response to a question about the tech sector's size scope and contro jeph simon expressed a willingness to look at companies like google or facebook to see if they are abusing theirwe >> the place most likely to have anti-trust problems is placesat ave market power. right? those are the places you want to look the most and those are the places you want toou make sure are monitoring and paying attention to. and if some ant compe

conduct is occurring there, that's where you get a big bang for the taxpayers' buck by enforcement in those areas. >> those comments came during simon's senate confirmation hearing. to the housing market we go, ere there is some bad news for buyers. mortgage rites rates are now at a four-year high. the 30 year fixed rate mortgage hit 4.28%. ma experts say they are going higher from here. that doesn't seem to matter too much to the nation's home builders, who remain upbeat about the outlook for their diane olick has more. >> reporter: the nation's home builders seem unphased by the sharp jump in super rates this morning. there are several reasons why. builder sentiment didn't move at all in february as measured by the national association of homu ders' monthly index. it is up sizably from a year ago and slightly off of a high in december. the reason for most of the optimism is the tax plan. the home builder's chairman said

the pro-business climate will strengthen the houtsing market and support overall economic owth. he didn't mention mortgage rates, custom are up more than a half of a s percentage poice the start this year, and continue to climb. not only are buildersbe fitting from a better economy and rising wages. they are also reaping the rewards of aeverehortage of existing homes for sale. one mortgage broker i told me you don't have a contract with a builder, things are pretty slow. builder expectations for sales over t s next months jumped to the highest levels since the recession even though b traffic was unchanged and current sales actually fell a little bi we get another read on the housing market tomorrow when we find o how many new homes broke ground last month.e mber is still running well below hisser toical norms and way below the demand as builders struggle with the shortage of land and labor. >> how longan we expect builder sentiment to remain this strong? will there come a point where

higher rates dull that optimism. here to discuss that, the chief economist at the nationalio associ of realtors. nice to have you here mr. yun. welcome. >> thanks for having me. >> i guess that is the question, whether or not those high rates will take a toll on the o ilders. whatu think? >> the rates will go up even further towards the end of the i year, py even closer to 5%. so that is already, youkn , people should anticipate that. but what is happening in the housing market currently is the massive housing not enough inventory. whatever builders build, they are able to sell quickly. so that's why the optimism of the builders are rising. the fact that the profits are rising, the days on the market for newly constructed homes is about three months. historically it would be close to five or six months. from builde, just build and it the clients will show up. >> so why, apart from hat new

construction, lawrence, why is inventory so ylow? ren't people listing their homes for sale? >> the single family housing starts last yearn 2017 was scratching 800,000. historical normal would be $1.2 million. soee we have under producing in 2017 but also in 2016, and ten years prior. so it's been a multiple years of underproduction. and now finally it's catching we don't have enough homes commensurate with rising populations, job the gdp will probably grow at 3% this year because of the tax stimulus plan that will be in effect. so the job market will still remain very strong. a risin population needs more homes. and we have been not building sufficiently. >> what interest rate level do you think might be the one that cools this market

i mean, it used to be 4%. then some people said it was 5%. when do you start to see people ther pull back from trying to buy a home or you know they wanb rates to gok down? is there a level that you nkwat? >> i there would be some shift in geography. i mean we are a sensing that people living in very high cost areas of california, they are moving to oregon. they are moving to idah utah. and we will begin to see thatti trend ce into essentially people moving out of housing in unaffordable areas into affordable areas. so the rise in interest rate will have a play. i think what is more importa is t monitor the migration appearance of people. in our econo metric models we are looking at possibly a 6% mortgage re as a tipping rate when the home sales will begin to deline. >> on that r.point,yun, thank

you very much. time to look at today's upgrades and down grades. sales force's rating was rised. they predict a rally in shares driven by enterprise growth. the price target increased to $132 a share. the stock up 3% to 113.12. >> bristol-meyers squibb saw its rating raised at morgan stanleyf thm sites prospects for its immuoncology process. the stock gained 5.5% to $68.98. >> expedia was added to the best ideas list over at guggenheim. the fi cites healthy upped lying fundamentals excite expedia issuing disappointi numbers lately. shares rose 2% to $102.23. >> the payment processor square saw i price target raised to

$43 over at deutsche ba. the firm expects square to report strong fourth quarter results later this month. the analyst is keeping his buy rating on the stock. square up is 6% to $44.29. still ahead, tax season can be theeost profitaime of the year for scammers. how you can keep your money safe. the bestrm perg stock in boeing. this year is -- despite recent volatility, shares are up roughly 20% since the first of january. and it follows a nearly of the s 0%last year. the ceo says he's not surprised to seeti investors p money into his stock. >> i think what you are seeing now is the market isnd resg

to what is fundamentally a very strong airplane market, aerospace market globally. and the fact that we are delivering on ourcommitments. we had promised production ramp up. we are now delivering on that ramp up. and you can see theit profitab that's hitting the bottom line as well. >> the second best performing stock in the blue chip dow index this year is cisco. shares up 15% since january 1st and were bumped up today after a strong earnings report which we told you about last night. the company says it is moving billions of dollars back to the u.s. and much of it will end up in t pockets of investors. >> there is several options we have. we have always talked about the fact that we would leverage this capital to reduce our share count which we announced yesterday. obviously, to continue our capital strategy of returningsh o our shareholders, we increased our dividend yet again sterday. and then we also think we have left ourselves plenty of capacity t continue to deliver

m and a that aligns with our strategy that we have laid out woover the last and a half years. >> cisco's $25 billion buyback helped put the total value of share repurchases this year at $170 billion. that is the largest a. corporate buybacks at this point in a year ever. and easily tops 2016's $147 billion. >> shake shack serves up a solid quarter with with a side of fries. that is where we begin tonighs market focus. the burger chain reported profits and sales that surpassed estimates. ibut itued disappointing revenue guidance for the entire year. the company also said t plans to open between 32 and 35 new restaurants this year. the largest number of openings in a year in the company's history. shares initially lower in after-hours tradingut they did close up 4% in the regular session at $41.21. and after theell, cbs had said a rise in licensing and

contribution revenues. they are talking to viacom aboua otential merger. shares were volatile in after-hours butinished the regular day up 1% to $56.74 >> the food distributor u.s. foods reported better than expected revenue and earning d gave an upbeat outlook for the rest of the year despite rising dmadty prices. shares climbed to 32.787. tree house foods issued disawointi earnings guidance despite better than expected quarterly results. they expecto close one of its california plants. shares of tree house foods plunged 12% on the day to $37.48 shares of the solar panel maker sun power came under pressure today after that company rerted a disappointing outlook late yesterday. the company cited shall thinks from the new u.s. tariffs that would hamper its sales growth. sun power shares were off 1% to

$7. $7.39. and solar edge says it's not seeing a negative impact are the new tariffs and expects any potential impact to be mutded. the company also reported quarterly results that beat analysts' estimates. shares of sar edge popped 24% to $45.85. tax season is in full swing. andhe irs warns consumers now about a new scam that targets your taxre nds. and while this particular scam may be new, the story remains basically the same. the tax s filingson is one of the most popular times for cyber criminals to steal your personal information and your refunds. joining us to talk about these scams and what you can do to protect yourself is caleb bar low. he's vice president ofhreat intelligence for ibm security. caleb, welcome. od to have you with us. >> great to be here. >> i am assuming a lot of these scams present themselvesn the form of e-mails, some of whichr maynt themselves in the form of e-mails from the irs. does the irs ever reach out to

people by e-mail? >> thno. irs is not going to reach out to you via e-mail. in fact they are more often than not going to use the classic old u.s. postal service. of course in a time where we are seeing lots of confusion aneund tax regulations, we are likely to see a significant increase in spam associated with tax filing to try to lure you . >> obviously, they want to get some of your tax information. what else are these thieves >> well, they are after your tax information. they are after really any rsonal information that can be used to mount an attack or to potentially file fraudulently on your behalf. last year,ibm's x force threat researchers saw a 6,000% increase in spam associated with taxilings between december and february of last year. >> what are some of the other scams that you are seeing apt from the ones that you sort of alluded to, which would be apu

orted e-mail from the irs? >> well, a very common thing we will see this time of year that is affecting more of enterprises versus consumers is something called al business e-mail compromise. so you might see an e-mail that looks like it's maybe from the ceo, the cfo, cr aporate officer, asking you to maybe send all of the company's w-2s to a specific address or provide some other formf information that bad guys can then use and harvest to file fraudulently on behalf of individuals that work there. >> is it better for a consumer to file electronically? or is it better to do it the u.s. postal service? does it make a difference in terms of protecting your personal informatio >> well, i tell you what. that's a great question. and you know, if this year is anything like last year, about 155 million tax returns wil be filed. now, 70% of which are looking for a retnd. here's where this gets interesting.

that 58 million people will wait until after aprilo 1st fichl this is the real issue. it's not so much about how you file. it's how long you wait. because if u wait until after april 1st, you are giving the bad guys all the way from thegi ing of february to april the file fraught lendly before you do. >> so the -- fraud lendly before you do. >>he bottom line there is file as soon as you get all of your 9 s and your w-2s, right caleb. >> exactly right. t the othng you can do is sign up for a pin from the irs. don't delay in filing and be vigilant wit your e-mail inbox. utn't click on those messages that are talking a savings on taxes or maybe even be careful of even the white paper that's talking about how to explain taxes to yoo justt and google those things directly on the webli versusing on that link. >> i'm going to lock myself in a room between nownd april7th.

caleb w ibm t security,hank you. >> you bet. >> i guess don't file an extension. coming up, a new twist on the old drop. shop till you president trump has reportedly backed a 25 cent a gallon hike in the federal gasoli tax as aay to help fund his infrastructure proposal. this is the equivalent of a $27 billion tax increase annually on consumers according to one estimate. it could wipe out about 60% of individuals' savings from the new tax law. the federal gas tax has not been raised since 1993. >> a higher tax on gasoline would mean less money in consumers' pockets. that could hurt a retail vi

industry that's already struggling. but some brand are finding some new ways to get shoppers excited again. andrea dd discovere the secret to their success. >> reporter: a rush to get in line at supreme in new york city. the brand launching its spring collection. >> it's probably the hottest brand right now. >> reporter: weeks before a enzy to get inside ralph lauren in soho. >> people get hyped about it and it creates the buzz. >> reporter: ralph bringing back a popular line called snow beach, a limited collection of shirts and sneakers. couldn't afford>>it. eporter: it's called a drop, number of ited products are released to the public. sometimes without any official ustice. what creates this to buy? we sat down with daniela vitale, the ceo of barney's new york. >> for us, and barney's has always been so goodt this. how do we create something in the store that really is incredible? >> reporter: for the luxury retailer it was a recent initiative called the drop at

barney's. >> not only exclusive merchandise but we had a host of amazing designers, music. there were 10,000 people that came in that saturday. >> reporter: and she says 20% were new to the reiler. what does the future look like? >> i think that becomes a permanent part ofur vernacular barney's. >> reporter: some retailer exclusives are so hot they end up on secondary markets wheth sell way above the original price. >> this is from the collection they dropped last year. >> reporter: strict for is in the business of buying up limited edition discrete wear dropped by supreme and reselling it at a profit.im for h thursday mornings are set aside for suprate. th's when the brand typicallyew drops its collections and thousands try to score at the new york city score and on >>li. i'm on like four different computers. >> reporter: how quickly do things sell out? >> seconds. lirally seconds. >> reporter: and one of the most competitive secondary markets is for limited edition sneakers,

where some resellers unleash computer bot or automated programs to buy shoes being sold on line in the blink of an eye. >> sticker bots. we know that the secondary market is going at about $175 billion. >> reporter: this is the cofounder of perimeter x, the comppeyalizing in preventing malicious bots. >> iome cases you see more than 90% of the checkouts or the actual purchased items will be done by bots. >> reporter: there is a law in place making it illegal f bots to buy tickets for events like concerts, but no l n right for buying retail like clothing. for "nightly business repor" andrea day. >> reporter: fortune compiled its annual list of the bess compano work for. it takes into account pay benefits and places thative employees a sense of purpose. number one on the list, sales force. it encourages employee philanthropy. second is wegman's. they offer scholarships to its employes.

third on ist is ultimate software, which matches 401(k) contributions at 40 fundraise and pays all m dical andtal costs. >> wow. all right, before we go. on wall street stocks rose for the fifth strght day and the dow gained 306 points to 25 had 200. the nasdaq added 112.00 the s&p was up 32. another roller coaster day. that does it for us tonight. i'm sue su >> thanks from me as well. i'm tyler mathisen. have a great eveny.g, everybod hope to see you back here again tomorrow night.

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