>> announcer: this is "nightly business report" with bill griffeth and sue herera. facebook's face-plant. the stock has its worst day in four years after another privacy misstep. it ledech lowe and it pulled the rest of the market down with it. here we depotai the government could be shut down in just days as lawmakers try to work through number of thorny issues before friday's deadline. falling out of love. ten years after the crash, a new report says fewer people are embracing stocks. those stories and more tonight on "nightly business report" for monday, march 19th. and we bit you good evening, everybody. welcome. it was a rough start to the week on wall street today. all of the major indexes fell more than 1% withhe nasdaq off

the most. it was led low byfacebook, which had its worst day since 2014, as you heard. that after the companyt said t a third-party firm improperly kept data on millions of its users. we'll have more on that story in a bit. the sell-off, though in tech which has been one of the hottest sectors in the past year, that led the broader market lower as well today with the dow closing down 335 points to24,610. the nasdaq was off by 13e s&p fell by 39. bob pisani has moreghor us tofrom the new york stock exchange. >> the big story today was bo fa, down 7%. on the surface, it's easy to blame today's market woes justc on ok. it's a big name, big valuation, a lot of momentum behind it. when it reverses like it did laday, it gives a lot of investors, particurly momentum investors, pause. but the story's bigger than facebook. social media in general has been under assault for over a year. many now realize that services that companies like facebook and

google or snap claim they provide to them for free, in fact, comith a heavy cost -- privacy. and the customers are now coming to it understand that in many cases, they're n customers, they're the product! but there's bigger problems for the market. there' a big leadership vacuum right now. nord group is stepping fors tech stocks have dropped. stocks started strong with leadership among technology and ials, consumer discretionary, but tech is now rolling over amid an assault of social media and nothing's stepping forward. energy stocks never tecovered fr drops in early february. materials and steel stocks have been dropping after rallying briefing. industrials are faltering on these trade war issues. and banks were the last leadership group to go, trendin rawn, too, in the last few days. so, there is consie nervousness around the fed meeting with talk of a fourth rate hike. trade wars are weighing on stocks and the white house drama is als distraction. the issue, what's left to power the markets forward? forep "nightly businesst," i'm bob pisani at the new york stock exchange.

more now on facebook, which shed more than $35 billion in market value today. and a bob just mentioned, the stock dropped about 7% in a very rough day of trading. julia boorstin explains what exactly happened at the company and why investors fled the stoc >> reporter: facebook under fire. lawmakers in the u.s. and uk calling for ceo mark zuckerberg to testify, and the eu announcing an investigation into violations of privacy laws. here's what happened. early 2014, an app developer accessed info from0 275, users of its app as well as the data from about 50 million of their friends. until april 2014, facebook accesd app developers to that data. the developer illegally sold that data to cambridge analytica, a data firm that worked with the trump campaign. when facebook found out in 2015, the data firm told facebook it deleted all of it. this weekend's reports say the data is still out there and note that facebook failed to alert

consumers whose data was harvested. >> i think facebook got blindsided, and they weren't quick enough to acknowledge that their data was hacked and misused. i think the need to be more u front about that, but no question, these are very for cult i.t. challenge facebook. >> facebook says it's investigating the accuracy of the claims and just hired an outside firm to do a comprehensive audit. cambridge analytica denies wrongdoing, saying i cooperated fully with facebook to delete the data after discovering that theerpp develt was working with had broken the rules. facebook's business is built ont its moren 2 billion monthly acti users having confidence in the platrm. and consumer reaction is mixed. >> i figure everyone has my da. like, it's all out there, so i'm not so concerned. >> i believe these executives should be held accountable. >> i still trust that facebook and other companies are trying their btt to do i the right way. >> reporter: users' trust is key to provide valuable data to advertisers to t tget them. y know at the end of the day, having the trust of their hensumer is paramount, it's key,

and if don't earn that trust every single day, you will see users go off thepl form. so, i think look for them to try to self-regulate as much as possible as they go forward here. >> now, analysts are raising concerns about potentialer advertisbacklash. wells fargo warning that this creates a serious publics relatilack eye and could lead to additional regulatory scrutiny. forss "nightly busieport," i'm julia boorstin in los angeles. >> so, could the allegations shcing facebook cause a wave of regulation to c in on big tech, and if so, what would that mean for the whole tecology sector? joining us tonight to talk about it is ed lee, managing editor at recode. and alrea tonight we've hea that the connecticut attorney general is talking about a new investigation there into these allegations. so, the drum beat is alreadyng staro sound. what should facebook do in terms of self-regulation, in your view? >> so, it's a great question. i think that sort of hit it on the head in terms of facebook's dilemma right now. there's a lot of political will

getting into this in terms o should facebook be regulated. ad's going to be a test of mark zuckerberg's ship, the eceo. they haven't taken definitive action as of they're basically saying we still need to investigate this, yake sure that the reported claims are actuatrue, that this data is still on these third-party servers.ft but even that, there needs to be a more systemic fix in place in order to prove congress and to the american public that, you know what, we're going to keep people's data safe. right now they're just taking al these incremental steps. >> but as bill mentioned, the risk of regulationig isr now than it probably has ever been before for this company. if, indeed, regulation is imposed, what do you think that wouldulook like? it be more like european standards, which are stricter privacy codes? >> so, i think europe is actually a good model in terms reof of w the u.s. could look in terms of this is what europe does in terms of how they restrict data, how they protect people's privacy. the u.s. typically sort of gives much more p leeway,bably

because these are u.s. companies we're talking about. they want to make sure they ve certain advantages or maintain a certain advantage. i think if they really, really go ful bore, they'll want to restrict how facebook actually usr its data, in otrds, how they sell the data to advertisers. advertising is the life blood of facebook and googl and snap, these other social media companies. so, that's the hardest they could hit them. chances are, it might be more of likeel warning lype thing, you know? when people sort of sign up for things, there might be a label at comes up, says your data could be used without you knowing it, kind of a er discla that would be sort of at the other end. >> and if the fears are valid, that if there are regulatory restraints put on facebook, the rest of the industry should be worried about that at the same time. do you think twitter's not far behind or other social media platforms or other technology companies? ess doesnk if con craft some kind of regulatory framework for how this is used, it'sot going to be just

facebook-specific. bi think partly to be fai also to make it level playing field. so, yes, if it aects facebook, it will affect twitter, google, snapchat, basically all online advertising. and that' the framework. those are the stakes. o single out one single player. it should be across the board. >> ed lee with recode, always good to see you.ed thanks, >> sure. to asia now, and specifically, china, which has a new centr banker. economists say the choice signals beijing's focus on econom reforms and the need to get its deb under control. eunice yoon has the details from beijing. >> reporter: china has a new central bank chf. his name is ei g oong and is no stranger to the united states. he studied in minnesota, got his ph.d at the university of illinois and tenure. he was af rotegee outgoing

governor. the outgng governor is known as a pro markets voice among chinese a policymaker favors faster liberalization. investors,oreign there are two things that people want to know. first, is ee gong going to be an advocate for opening up the in his first comments of governor, he said a new slew of rerm and opening policies would be announced from now atil early april, though he didn't mentionthing specific. now, the second question for investors is what is he going to do with all of the debt? debt here has beeri ng, and the outgoing governor has expressed his concern about it.s lee didn' anything about that today. now, it's unclear how muchwi influence h have over policymaking. here in china, unlike thel fedeserve or the ecb, the pboc dlsn't have f independence from the government or communist party and the man whoal appears to beng the

shots on the economy is president xi jiing's close ally, the vice premier who presents himself as a market reformer, though so far under his guidance, we haven't seen much financial liberalization. xi's team on the economyas been focused in recent months on reining in credit and clamping s down ondow banking, but the question is, is as the economyn ues to slow down, will this team decide that they're going to sy the course, or will they reverse policy and start to pump up credit in order to keep up the growth? for "nightly business report," i'm eunice yoon in beijing. time to take a look at some of today's upgrades and beyond-grades now. tsldman sachs is reaffirming accelerating on tesla. the analyst there expects model 3 del ceries toe in below expectations. the firm, though, is maintaining its 205 6-month price target on that stock, but it fell 2% to

$215.56. coverage of fitbit started with a buy rating at craig hallum. they calthe stock price compelling, saying all of the pieces are in place now for a successful change to fitbit's strategy. price target $10. shares rose 2% today to $5.37. grub hub saw its rating cut to hold from buy over at stifel. the analyst there is concerned about the stock's valuation, which hasen about 50% so far this year. the price target is that's just above where it closed today, which was .8$1 dr. pepper/snapple's rating m s raised to outperform f sector perform at rbc capital markets. the analyst there noted potential provements to itzkoffie business following its merger agreement with keurig. the price target is$135, and the stock rose fractionally today to $118.36. still ahead, why some americans still shun the stock market, even after one of the strongest bull runs we've seen

inis president trump was in new hampshire today, where he outlined steps to combat the opioid crisis. in fact, he said he iser consg suing some drug makers for the role they've played in fueling the epidemic.r >> now department of justice is looking very seriously into bringing major litigation against some of these drug companies. we'll bring it at a federal level. some states are already bringing it, but we're thinking aboutng brint at a very high federal level. >> in fact,me those cs sent shares of three opioid producers lower, melan corot, endo and

depomed. the national debt has topped $21 trillion for the first time ever. that milestone comes shortly after the suspens federal debt limit last month. that allows the government to borrow an unlimite amount o money. economists expect wider budget deficits over the near term due to the tax cuts that were signed into law late last year. congress has only a few days bw to finish up the details on a spendingl that was broadly agreed to just three weeks ago, and it if they don't come to an agreement, the government fac yet another shutdown. we hav that story from capitol hill. what are the sticking points at this poin >> reporter: bill, republicans had been meeting to discuss the final details of this $1.3 trillion spending package just this evening. as you mentioned,hey've already agreed to the top-line spendi t numbers, butre are side agreements that usually get attached to these types of bills that they are still hashing out. one is stabilizing health insurance marketplaces, one that

we're hearing is being negotiated up until the last minute. also, funding for a border wala a pathway to citizenship for undocumented immigrants who are brought uo the. as children. the last we heard is that that will not be in the omnibus spending bill, as it's called. but again, those final details still to be released. also still up for debate is funding for the gateway project that includesl a tunetween new york and new jersey. that's been a priority for senate democratic leader chuck schumer, but it's something that the white house has been adamantly against. so, lawmakers really see this as their last chance to get a piece of the pie inco whad be the final must-pass legislation for congress this year. t if t wasn't enough, what else is on the congressional agenda? >> reporter: well, once they get through this spendin, bi it should clear the decks for the next two years. see congress d to really focus on those midterm elections, but what also could be coming up is tax reform phase two. we spoke to the head of the hoe freedom caucus,

representative mark meadows, who said he bieves we could see a rollout as soon as april 15th, so emark your cagundars, . >> wow, tax legislation that close to an election. that should be interesting. thank you. or rle'sevenue comes up short, and that's where we begin tonight's "market focus." after the bell, the cloud computing company topped profit expectations but saw its sales a slightly missets. the company's software licensing revenue rose, but that, too, wasn't good enough for the street. the shares intially fell the ttended session. they endedhe regular day down a fractiono $51.95. shares of the smartphone technologymaker universal display were pressured following a report that apple isng inves in next-generation technology to screens. own phone bloomberg says apple has secretly been working on developing microl.e.d. screens, a feature that could make devices slimmer, but also improve battery life. i finished product said to be a few years away, but shares of

universaplay fell 12% today the to $109 even. >> newer brands will give billionaire carl icahn's five board seats in exchange for support in fighting off hedge fund starboard value, which has been pushing for a shake-up at the consumer products company. last week, icahn revealed a nearly 7% stake the maker of sharpies. as part of itsdeal, newell will consider selling some noncore assets. shares of newell brands were off 6% to $26.79. biotech firm herron therapeutics says they significantly decreased pain when compared to existing treatments and als said tha patients given the new anesthetic needed fewer opioids in the hours following procedure. that's certainly good news. shares jumped nearly 27%n that news to $27.30. and ship equipmentmaker kla

tencor is buying technology company orbotech for about $4.5 billion. kla says it will grow its customer base and create new revenue generating opportunities. separately, kla launched a nearly $2 billion share buyback shares fell more than 3% today to $115.98. meanwhile, as mig beexpected, shares of orbotech popped by 6% to $63.99. and mcdonald's reportedly will settle a lawsuit chargeg fast-food giant with alleged labor law violations at its franchises. a union groupepsenting mcdonald's employees had previously claimed that workers were fired after participating g in protests seeking a higher minimum wage shares of mcdonald's fell 2% today to $1.01. well, it's been a decade since the start of the financial crisis thated out trillions of dollars worth of assets held by u.s. households. since the crisis, though, a bull market has emerged and stocks have enjoyed quite significant

gains. but despite the run-up in stocks, a reuters report says many americans are staying on the sidelines, investing about $900 billion les than they did in 2007. joining us to talk about that is steven wood, the chief market strategist at russell investments. it's always good to have you here, steven. welcome. >> thank you. >> welcome back. >> what do you think is behin first of all, what do you think about that report and the statistics, and why do you think it is? >> well, i think there are certain generational impacts. if we look our grandparents, how the depression affected s,em. our pareow they react to inflation given their experience in the '60s and '70s.al that finanrisis was a serious blow to a lot of investors, so i think there's tme aspect of t even a decade later, and it could be generational. there is also an aspect where the average retail investor typically looks to buy at the top and sell at the bottom, and that's something we work hardeg with our strs to minimize, but that is, rtunately, a common characteristic of investment patterns. >> there are probably plenty of people who feel they missed the

boat this time around, so they'll wait for a signifibant pu to get into the market, right? >> that would be people paying attention to the market that may not be everyone. he where are they putting the money, if not intock market? >> i think you're seeing cash build-ups and i think a lot of people are just sitting on the sidelines. as you mentioned, they're waiting for maybe a higher rally in the market to confirm. so, there's a lot of behavioral finance, the psychology of s investment thaeally impactful, and i think that's global, need a good, disciplined strategy to minimize some of those behavral biases. >> perfect segue. you like a global. strate you like europe, japan, emerging markets? >> we do. i've been in portugal, spain, rost got back japan, so the time zone i'm in, i don't know. . you're not su >> i'm not sure, but assuming we're in new york right now, the message is similar there and here. if you look at the cycle in the u.s., the economy looks okay. earnings are going to look good, but it's a very expensive market.

as an american or a dollar-based investor, which is a good time to think about rebalancing lobally, just being disciplined, blocking and tackling, looking at europe, which is cheaper. they've got anarlier economic cycle. and whereas our central bank is aising rates, they're still accommodative, similar to japan. so, ten years ago, the u.s. was lagging. riow the u.s. is leading. so, rebalance globally and be disciplined, which, again, it minimizes some of those behavioral mistakes. >> but we'll see if the millennials w were damaged by the financial crisis of ten years ago decide they want to get into the market, right? >> well, t benefit for them is they're young and they're going to live a lot longer than we will, so they've got >> we can only hope. steven wood of russell investments. u,ways good to see you. >> thank sir. coming up, retail's extreme makeover. >> reporter: i'm courtney reagan in las vegas, nevada a of retail's biggest conferences of the year where established brands, tech companies and start-ups are cominether to figure out what the future of retail will look like. i've got the sto"n coming up on htly business report."

here's what to watch on tuesday. jerome powell will chair his first monetary policy committee meeting. the two-day meeting begins tomoow, concludes with that press conference on wednesday. fedexar reportsngs that include results from its peak holiday season. that should be interesting. an the saudi crown prince will be visiting the white house to scuss economic priorities between our two countries, and that is what to watch on a very busy tuesday tomorrow. >> uber has temporarily suspended its self-driving tests in all locations after a deadly accident in arizona. a wom was reportedly hit and killed by a vehicle in vi

self-d mode as she crossed the street. that incident appears to be the first time that somne has bee killed by an autonomous vehicle. uber says it's cooperating with the investigation. the nation's largest retailers are asking the white house not toevy new tariffs on china. a letter signed today by 40 different retailers, including walmart, target, and costco, arguedld that tariffs w lead to higher prices, which, in turn, would hurt working families who shop in their storespo there are s, you may have heard, that the white house is considering tariffs on at lea $30 billion worth of imports from china, beyondteel and alumin aluminum. teen jewelry chainai's is filing for bankruptcy. the retailer, who says it's pierced more than 100 million ears worldwide -- never heard of that statistic, but that's what they say -- is strugglin with a heavy debt burden. the company operates in 99% ofa ica's malls and was purchased by the private equity firm apollo globalanagement

for more than $3 billion back in 2007. >> that's over0 years, by the way. >> yes. as the retail industry does chanany companies are looking to technology to give them an edge. courtney reagan reports now from major retail conference in las vegas. >> reporter: here at shop talk, everybody is talking about the future ofndetail which companies will are lead the way. there seems to be no doubt that technology will play a critical role. start-ups are announcing deals with established retailers and pitching nies are a ideas to make shopping better in store and online. walmart and handy are going to offer shoppers tv installation and furniture assembly services in 2,stores. by the end of the year, shoppers in macy's stores can scan and checkut on their phones. ceoeff gannett says mobile checkout saves time than going to a cashier, even thoughpl sto ees still have to remove security tags and verify the

purchase. maceselves partnering with a tech com ony to roll a virtual reality program so shoppers c lay out macy's furniture in their living room to see how it will look before they buy. >> it's increasing what ethey buy on thatch pe and it's decreasing the amount they return, because they've already kind of tested it. iley've already felt that the shape and size work in their home environment. to have ahave physical sample in the store, and that's why the furniture stace can space can be half of what they are. >> reporter: but that only be a winning strategy iho it bringsers in. mall operator westfield co-ceo steve lowy thinks p retailers are massively behind when it comes to understandi theirconsumers. as chairman of one market, it's a retail technology start-up, he's working to change that. >> the retailing industry really needs to focus on servicing its consumer much better than it is. it's currently really boxing with a hand behind its back right now, because they're

really only working with their own data. we don't really have the ability to share datas the network so they can better understand their consumer. they have no idea what the consumer is doing before they actually make a purcha n. >> reporteone is sure what the future of retail will look like, but there's a ground swell of innovative companies here determined to figure itou for "nightly business report," i'm courtney reagan in las vegas, nevada. little caesars made a march madness bet and now it owes everyone a free lunch. the pizza chain said that if a bottom-seeded team beat a numr on seed on friday night, everyone in the country would met a free meal. now, that seed like a pretty safe bet, b that's not how it turned out when number 16 university of maryland baltimore county defeated number 1 university of virginia. so, your free lunch is april 2nd. meantime, "blackanthepanthe os marked another milestone,

topping the boxice for the third straight week, making it the only film in the last 30 years to do that. the disney film took in another 7 million over the weekend in ticket sales, pushing its domestic gross to more than $5 million. and here's another look at the sell-off on wall street today. the dow is down 335 points, nasdaq off 137, s&p 500 fell 39. and that's it for "nightly business report" tonight. i'm sue herera. thanks for joining us. >> i'm bill griffeth. have a great monday evening, everybody. see you tomorrow.

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