this is "nightly business report" with sue herera griffith.> data debacle. acebook's crisis is intensifying, and the pressure is coming from wall street, main street, andn. washing rising risks. what exist economists see as the biggest threat to the economy as fe policy makers begin their meeting on interest rates. >> confuse cars? what happens when self driving hicles need a human touch? one silicon valleytart-up says it has the answer. those stories and more tonight on "nightly business report" for this tuesday, march the 20th. >> good evening, everybody. and welcome. stocks downsed back. hevestors focused on fundamentals as federal reserve started its two-day policy meeting with most

expecting the central bank to increase intrarates. more on that in mes. higher oil prices lifted the energy sector which helped offset a decliia in smedia stocks. by the end of the trading day the dow jones iustrial average se 116 points to 24727. the nasdaq climbed 20. and the s&p 500 added afour. >> it was a continued slump in facebook shares tha curbed some of the market's gains today. the social dia company is facing as you know a barrage of criticism over how it hamgds and protects autoser a. one analyst said today t tt level of uncertainty surrounding that stock is like every before. an that als sent shares lower again. julia boor citizen has the latest on facebook's privacyan l. >> reporter: regulators, consumers, employees and investor looking f answers from facebook in the wake of the scandal over thest harveg and sale of data of 50 million facebook user toambridge

ytica. mark, cheryl and their teams are working around the clock to take the appropriate action because they understand the seriousness of thie. the company is outraged. we are deceived. we will protect people's information and will tak whatever steps are required. >> we in the case book studyf how nhe handle a crisis. it appears that mark zuckerberg and shell sandberg retreated to th caves of canned hare here. where the heck are three. >> facebook shares went lower today. the fcc saidest quote consumers need stronger protections for the da age privaty laws, transparency for data brokers and rhts to and control over their data. >> the business model of facebook ooes depen

harvesting user data for selling to advertisers.ou so ifave to really cut back on that because of thisve igation, i think it will deeply hurt the revenue model they have come to depend on. >> meanwhile, cambridgea analyt suspending alexander nix with immediate effect pending a full independent investigation saying his comments recorded by channel 4 in which he describesne shady bu practices do not represent the values or operations of the firm. for "nightly business report" i'm julia boor citizen in los angeles. it wn't just faceboo that felt the heat. other social media stocks like twitter, snap chat and the etcial media also fell. when an entire sector is under pressure especially one that played a roll in the market's run up, investors take immediate notice. bob pisani is at the stock exchange for us tonight. >> reporter: first,

was the big market leader last year and into 2018. it was partly because social media stocksere big marke movers. not just facebook, but snap and pandora, twitter, groupon, other social media stocks attracted al lot of new mont year. the social media etf was up over 50% in 2017 and attracted a lot of new mone but now social media in general is under attack and it's not cheer if there will be any market leader. there is a big problem with that. no market leadership in social media. the other problem is rick of increased regulation. ternet platforms in general have been very lightly regulated since the first laws were written in the 199 oz. with always for investigations and congress gaining steam all we nee are o or two more nasty revelations and there will be bills introduced with broad kblekss for many other tech and software stocks. finally, if you are hopeful that facebook's shareholders will risep and force changes in the way facebook manages itself or even force changes in management, forget about it. that's not going to happen.

founder markrb zucg has assured that that won't happen of that's because mr. zuckerbery owns the major of the voting rights to the company. facebook's class b shares controlled into mark zuckerbg and amall group of insiders has approximate 18% of the shares. zuckerberg himself controls about 14% but their class shares have ten votes per share. the class a shares that trade have only one vote per share. duk and the insiders control almost 70% of the shares in good luck forcing changes with those kind of voting rights. for "nightly business report" i'm bob pisi at the new york stock exchange. >> as both bob and julia mentioned there is now this increased risk that the whole social media industry will face tighter regulation. not exactly something that businesses usually want. but it is something that a number of people in washington are calling for. kayla tausche picks up the story for use. from th

>> reporter: facebook is heading to capitol hill this weekm today and tomorrow company staff will house several committees. the company's general counsel testified in november on foreign acto using social media to influence the 2016 election. at the time, lawmakers aid the company was making progress in strubbing its platform but now say stronger regulation may be needed if the problems persist. >> the industry won't solve these kind of problems themselves. we will hav t to solvem with leg. and i don't think that's the most desirable course of action. but you can't haveil 50on people lose the privacy of their data this way. >> reporter: so far, potential legislation has simply targeted disclosure. in the u.s., the senate proposal calls for social media companies ou label and report political adst on their sites and who is behind them.

the european commissio release a regulatory action plan next month. one study at commission suggested clearer labeling for paid contend. but thege cambr analytica breach says the -- lawmake on both sides of the atlantic wouldn't rule out regulating this kind of social media they wanted to investigate cambridge analytic first. at the center of the facebook is a company few heard of until now. cambridge analytica is a data analytics firm and today its ceo was responded. n the e cabrera has more company that is now facing a crisis of its own. >> it is a uk based political consulting firm and it credits itself with helping donald trump win the election. facebook accuses them of violating its rules for harvesting user data. hedge fund manager and top

republican don'ter robert mercer is a majorin stor. and steve bannon who worked in the trump white house is reportedly onhe ard. today the company is in the news again after chonl 4 of the united kingdom unveiled several pieces of video last night which sewed the ceo, alexander nix, speaking with a man he thinks is a potential client. >> wealthy developers come in. money for candidates in exchangl ford. [ inaudible ] >> on facebook or you tube or something like this. >>. >> we have lots of story. >> cambridge analytica prides itself on creating detailed psychological profiles of individuals on social medi and

king extremely targeted ads. but the methods described in tho video, use women, bribes on tape, have very little to do with anything digital n. a statement, the company explained that conversation this way. assessing the legality and reputational risks associated with new projects is critical fo us and w routinely undertake conversations with try to ive clients to tease out any unethical or wolegal intentions. the came lijca analy executives at the meeting humored these intentions. they left with grave concerns and did n meet with him again. for "nightly business report" i'm micle cabrera. >> there was other news today. ffed officials are meetin the first time under their new chairman jeer only powell. . the tw day gathering started today and ends with a decision on interest rates tomorrow. ahead of that decision, top

economists and money managers were surveyed into the economy and the stock market. >> look out for higher interest rates and lower stock price this is year. respondents have uped their outlook on the yield for then year treasury for 3.5% for 2019 and they have edged down their yut look for stocks for the first time since july. the respond ez include economists fund managers and strategists. the fed is in route to hiking three times this year and three times next year. higher interest rates are not seen as the biggest threat to the economy. it's trade. 63% of respondents say president trump's trade policies are negative for u.s. growth. just 3%, which is one respondent says this will help. 23% say too soon to tell. 81% say leaving the north

american free trade agreement or nafta is negative for growth, 75% were concerned about a trade war. and 48%, a plurality say the president's steel and aluminum tariffs will cost more jobs than they will add. 58% say they support the president's hamg of the economy. the concern about trade is so great itac ou worries about inflation, terrorism, and even the federal reserve itself. for "nightly business report" i'm steve liesman. >> by the way, there are signs that banks are starting to lif deposit rates for savers. as you well know, banks have largely kept their deposit rates the same for years despite incremental increases in the fed fund's rate. accordg to bank raitt.com the average rate on a one near cd rose to .49% last week. while that is still historically low it is the highest level in more than seven years. >> wow. time to take a look at some

of today's upgrades and downgrades. bank of america is one of amb of banks that are well positioned for those higher interest rates. that's according to raymond james. the firm cites bank of amtica's low c deposit and non-interesting bearing deposit bases. higher rates will add to earnings per share this year and next. the stock was unchanged today at $31.98. goldman sachs says amazon shares could easily hit $1900 this year. the analyst calls the stock undervalued. he says current estimates are too low for the company's cloud and retail businesses. the shares rose more than2.5% to $1587.51. its market cap is now larger than alphabet's making it the second most valuable possibly traded company. >> elsewhere, oppenheimer raised its rating on ruku to perform to upped perform. it says it is no longer aco elling short trade at its current valuation.

the analyst citedatysts including the unch l. of the roku channel. the stoke rose more than 2% to $34.73. cigna jewelers saw its price rate cut by jp morgan. the firm says the jeler's transition will take time and that store close you are autos will weigh on revenue. they also cited a lack oft prod renovation. shares well to still ahead work the clock ticking are lawmakers any closer to reaching a spending deal by friday's deadline?

he board of the california public employees retirement system voted against a proposal to divest its investment in assault rifle retailers and wholesalers. the board said such a move would do l rtle touce gun violence. calipers has me than $350 billion in assets making it the largest public pension fund in the u.s. congress i r in ae against time to pass a $1.3 trillion spending bill ahead friday's deadline or face another government shutdown. house p speakerl ryan said today the lawmakers do tun the talk and they worked their way unresolvedrious budget issues. ylan muiit is us tonight pt they have a snowstorm to deal with tomorrow. they have to work hard. when do you think we will finally see a billf some kind? >> republican leadership keep saying it will be today before midnight. but we have heard this story before. just as recently as yest the house is trying to vote on

this bill on thursday in order e the senate time to pass it before that friday deadline. but we are already hearing from rank and file lawmakers that this time line could slip. maybe the omnibus spending bill doesn't come out tonight ande mae even better a temporary government shutdown and even mighteed another stopgap spending measure to give lawmakers more time to hamme out all of these details. >> i know there are a lot of issues out ere, what is the primary hang-up here? >> there have been two issues. one isunding for the gateway project which funds a tunnel that goes from new jersey to new york. the president said he is opposed to that project but he is very important to key o lawmake both sides of the aisle. the other issue isal border funding. that is something that the white house wants that democraen have opposed to especially without a solution for the undocumented immigrantser who brought here as children. >> so what do you think? government shutdo or

short-term bill to kick the can down a little further down the road? >> you know, every hour that passes without a deal means that the rick of a shutdown is actually rising and we are reaching the point now where any one senator who decides to hold up this process will mean that congress will fail to reach thad deadline. and then all bets are off. >> maybe we'll see you tomorrow night. >> hopefully not sayinhe same thing. >> thank you. fedex raises its full year outlook. that is where we begin tonight's market focus. after the bell theanelivery said stronger operating performance and tax changes prompted it to raise its guidance for fiscal 2018. ted company also rep quarterly results that topped expectations and said it was making investments in two of its shipping hubs. shares initially rose in after hours and finished the regular day up more than2% to $51.99. the clout computing compa sales force said it agreed to by

mulesoft for $6.5 lbillion. sales for u shares finishe a tick to $125.12. shares of mulest took off. they rose 27% to $42 even. and the children's clothing retailer the children's placed top profit expectations and increased dividend to 50 cents a share. and total sales revenue also grew. both were softer than expected. the shares fl 8% to $127.95 defense contractor general dynamics sweetened its offer to buy csra. all in an attempt to fenff the off by caci international. the off is $7 billion. it is still lower than caci's shares of general dynamics, csr

and caci were alligher on the day. investors had their first chance the act to arena pharmaceutical's upbeat drug study results released after the bell last night. the drug maker said its treatment for colitis performed signature conditionally better than the placebo wtsh fewer patixperiencing side effects. the company plans to move forward with additional tests. the shares jumped 29% to h$39.. >> i been a staple in many portfolios for delddes. you cou call it one of the original disrupters.ec recenttly it's shares lost more than a quarter of its value. but ibm sees its future powered by new technology. deirdre bosa has more. >> reporter: at ibm'nn aual think conference the company's

wiggart demurs anders are here in las vegas to hear about big blue's future strategy. weern able to sit down with ibm's krechlt to hear about her turn around plans to shifthe company towards next generation technologies like blockchain and artificial intelligence as its legacy business slows. >> it is a different company than ten years ago, five y trs agee years ago. break out the pieces. one, the new product and services. we return to growth starting in the first quarter as you saw there. b the poing 46% of what we make today, products and services are growing at 11% and are new to the ibm company. and a strong pipeline behind it. aiock , lots of sponge pipelines built. >> reporter: in light of recent pressures on facebook in terms b privacy and security data responsibility was topic here at think. aaron levy talked aut the need for updated regulations as tech and innovation play as bigger role in consumers lives. >> we have had a tremendous

amount of technology innovation that is starting to impact everl ent of our lives. this is what we've seen from the digitalrevolution. it's changing cars and transportation. it's changing life sciences and health careng it's cg voting and democracy. for quite some time we ha treated the technology platforms as sort of utilities that all of the users are the one liable on those platforms but ultimately as you see growing news cases for machine learning and ai the platforms themselves are going to be making more decisions on behalf of which means we have to be suris the dns they are making protect consumers, keep our infmation ivate, keep us security. >> the ceo of rb joined jenny on stage for the conference keynote. as the chief of canada's largest bank he is here to discuss the importance of new technologies to his business and he knows a thing or two about winning consumers' trust and importance of privacy. >> also a lot of brand risk.

absolutely. i think you are seeing markets reac the uncertain in the last couple of days. certainly, if you want to create value for a customer and manage that data and if you breach that trust --ak others will that place and do that on behalf of the customer in a betterway. i think it accuracy franchise risk absolutely over the short is long term. >> reporter: from tech companies to fwachk and more ibm's think conference looked at a future where data and privacy take center stage. for "nightly business report," i'm deirdrebo , las vegas. coming up, a different kind of remote control car. >> what happens if you are in a self driving car and it gcos used and isn't sure what to do? well, somebody who is a remote operator takes control of the wheel. literally. i'm phil lebeau. we'll explain when "nightly business report" returns.

a expected the weinstein company has filed for bankruptcy. the movie studio was crippled as you now byar the sexuals men and assault allegations made againster fou harvey weinstein. the company has been acquired now through the bankruptcy process. expedia's orbit subsidiary discovered a data breach. the travele booking s says a hacker may have accessed data late last year on one of its older platforms. united airlines is temporarily suspending transport of animals in the cargo compartments of their planes.

they are ao conducting a review of petshipments. it does not affect pet owners bringingest pets on board in the cabin. as we reported yesterday, the fatal accident involving one of uber's self driving cars is under investigation. clearly the auto mouse industry is deal withmp colications. a start-up in silicon valley thinks it aas annswer to a problem. phil lebeau takes us for a radin i had i mountain view, rn califo, tonight. >> reporter: phantom auto's test car may look like any other driverlehicle.

but it's not. it's being operated remotelyy ben. >> welcome phil the. i'm ben and i'm your phantom remote operator for this drive. >>e are at a four way stop. ben can see all the traffic around here and he is making the turn. as seone who has gone for a lot of rides in a you a on the mousehicle this doesn't feel very different. >> we are a solution when the vehicle is moving at a slow speed, has come to a stop or when the vehicle is paralyzed and deny know what to do. >> reporter: while they have run into few issues, they alsoit a aunomous drive cars constantly face tricks situation a hurdle that will slow down how quickly we will see largef numbers them out on the street. >> we know that the last stretch herellets r hard. the kinds of thing that are going to stand in the way are

busy cities like n york where you just have lots of pedestrians, bicyclists. there is so much going on. >> humans are alwaysneeded, even with machines that work great, you always need a support channel. with a autonomous vehicle you need that channel to be fast, you need someone to be there in real time. >> reporter: phantom auto s envision a call center with people who can step in when autonomous vehicles need a human touch. sad news to tell you about today. pete peterson who made his career on wall street and in washington has died. son of greek immigrants. he was the founder of blackstone he was chairman for 22 years. commerce secretary under president nixonnd vice chairman of lehman brothers. he gave the bulk o his fortune

to a foundation that focuses on the problem of swelling government debt. >> before we go, another look at the bounceback on wall street today. e dow rose116 today to 24, 727. nasdaq climbed by 20. the s&p added four. that will do it for us tonight. i'm sue herera. thank you for joining us. >> i'm bill griffith. be saf w out thereh all the bad weather, everybody. we'll see you tomorrow.

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