>> ann: this is "nightly business report," with sue herera and bill griffith. tariffs and technology. thcee two big conrns for the market sense the dow plunging more than 700 points. we have a tremendous detellectual property theft ation u gpoing the heat on china, announcing a new round of tariffs, sparking concerns of> i we find mear we sandberg vowxes to bettetirve p users. but is the next step regulation? those stories and more tonight on "nightly business eport" for ththursday, march the 22nd. good evening, everyone, and welcome. a sell of on wall street.

all 30 dowomponents closed lower. about two third of thetock in that index fell more than 1% today. half of the s&p 500 is now in correction territory.or inve became unnerved after the white house unveiled a new round ofariffshat some fear could threaten the trade war with china, the world's second largest economy. so by the close, the dow jones industrial average hadlunged 724 points to 23,957 a nearly 3% decline. the nasdaq fell 178. and the s&p 500 lost 68. the biggest losers on the dow were thend majortrials like caterpillar, boei, and 3m. bob pisani reports tonight on that sell off from the new york stock exchange. >> scks closed right around their worst levels of the session with the dow down more than 70 points. that's right, 700 points. the markets will clearly concerned about two things. number one, technology. and number two,twtrade. bigpresent donald trump aouound

he be imposing tariffs of up to 6 $ billion on chinese goods over the next few weeks. no word on which goods. but there would be a 30 day period to negotiate tse terms. shares of mining stocks and metals got slammed since tariffs weeksirst announced a few ago. looks like they are not as tough they people thoug might be facebook is facing a who socl media group is. that's weighing heavily on all the other social medi stocks. part of it rket losttsa i i tem there is nothing taking its place. the subsectors, semiconductors and the fang names, febook and apple and amazon stopped

advancing and in most cases rethey versed. once the fang stocks started going up in the second week of marchhe market stalled out because no other sector stepped forward to lead the market higher. industrials and materials are he suffering fromrade war concerns. fangs can't move high without the help of higher volume. that's not happening. on top of th,rama in washington is still on the front burner. stock did fall earlier on word in a john droud president trump's lead lawyern the russia probe had resigned. for "nightly business report" i'm bob pisani at the new york stock exchange. from e santoli joins us the stock exchange for more on this decline. i think you were the one who coined the term tariff tantrum. is that what's going on? >> i don't think it was all we were seeing today but i think that was the added element this morning right at e outset that came upon a market that also was

nall thatad interest rates are going up, this fed is looking for opportunities to bring rates higher if they can, if the economic data allow for that. and then as bob was saying,ss t f leadership from the big tech group. which a lot of investo i think were hiding in because it seems seemed like they could grow a i almo environment. but the tariff issue is a eminder that policy across a monetary policy turned less t friendn we got used to last year. >> the volume, though, mike, didn't seem like y.ngckt wi he myhe prof tessione als wy ho were se? >> interestingly, you are solutely right, sue. it was not a feeling of panic or a mass luidation of stocks. people were pointing out that small cap stocks etperformed arge cap indexes so the more domestically poke used eemed like they were not caught up in the sell off that much. the volumes weren't as high. the volatility index got up there but were not at levels we

saw in fruary. it was somewhat lower intensity sell off than what we saw in early february. whether that means that folks are more likely to buy it at this level or not is not clear but it indiscrimina indiscrimina>> mik santoli at t stocks. the president did announce his toughest trade sanction to date. and there are fears of more to come. >> reporter: president trump signed an order that pavedtehe way for tariffs on a wide range of chinese imports. the move marks the endf i seven-monday investigation into china tactics to challenge u.s. technology dominance. >> we have a tremendous intellectual propert situation going on. so we're going to get it ten careof. and frankly, it's going to make us a much stronger, much richer nation. >> reporter: the action comes as the u.s. is imposing tariffs on

all imports of steel and aluminum with certain allies and products exempted and on top of tariffs on chinese made solar panels. companies are bracing for a counter-puchbl from china which says it will take all necessary measurrd to safegua its interests. u.s. trade representative robert light higheser told lawmakers that kind ofetiation is unfair but doesn't change things. >> it's not possiblee to t the position that because we are soybean farmers we are n gng to stick up for our rights in a variety of ways and have ndreds of billions of dollars worth of exporters and domestic producers be punished because of unfair trad >> reporte there are fears this is leading to a trade war. >> we agree there are challens in china. we want to address it in a different way, a way that' proven effective over many decades as onned to unilateral

tariffs which have proven ineffective. >> reporter: but wilbur ross says those fears are overblown. >> i think there will be se retaliation but i don't think it's going to be the end of the earth. there may be some firing sovts the bow. but i believe at the end of the day this will end up in a negotiated settlement. >> reporter: a senior administeltion official me this is just the kick oef to a set ofultiple penalties against china and that further actions namely restrictions on chinese investments in the united stes could be unveiled in the coming days. for "nightly business report" i'm kayla tausche inashington. >> joining us now the talk more about the new tariffs and the t impay could have on the markets and the economy, art hogan, chief market strategist with b ril fbr. and john conley from deutch asset management. good t see you both. >> good to be here. >> how do you -- do you step aside and let things clear out

or do you see opportunities already presenting themselves as a result of these tariffs being impose >> that's a good question. you have to think about that three ways. yes, i think we overdo the sell offers, today was certainly overdone. kit get worse before g its better? i think so. i think if you knowly this market is underpriced certainly more underpriced today than it was yesterday. i think the problem with this is we don't know how far our government will go with tariffs down the road w to tras versus using this as a negotiating tactic. i think it feels -- secretary ross said pethat, we boett gas. unfortunately unintended consequences c creep up on u.s.ike that turns knick and slows the market down. nafta is something we need to be sure we acemplish. ame thing w t bou ethate would bore bad for the onomy. >> josh, weigh in the you would, you say that owl though a benign

outcome is certainly not guaranteed the realistic economic impact may be smaller than perhapswall street is fearing. >> yeah, you look at the move today. while i think idvised it affects a small par at of the un y. you are talking about less gdp.3 of 1% of not likely to be macro re rcussions. if this is just a negotiating tactic, fine. the worry is that it could scalate intoething more and it reflects a protectionist mind-set. v gae worldw that trade is a zero sum . and trade deals a re a pllfeasance. i think that's d disguided and one that it can be doing damage undermining whatare d after world war ii. had beenamage that

done by protectionist forays. he we have not had the kind of inflation that fed height be hoping for oddly enough as ty art to ray interest rates. if we impose tariffs down the road that could bring inflation back, don't you think? d>> it could. ends on the scope of the tariffs. it would likely be a short-term bump up, though. not likely k to have thed of lasting effects on inflation to get inflation back up to 2%y itself. >> so art, if you have a long term time horiz as an investor, you have a confluence of events that are going on, you have the tariffs going into effect. you haveeb fk and social a under fire possibly facing mesoming are layiwh. do you do? do you put new money to work in those sectors because dhey have con so much or not? >> i think you asked the question the best way we should ask that question. if your time horizon is as a long term investor aabou it o n.

in the news cycle we are in we talking about these things on a minute by minute basis. for example, i think we will see an administration that says she is trade wars or these tariffs adversely affected the economy or the market. they use the market as are sco back. i think social media isike the wild wild west. owthink we will get valuations more normald what they are doing and i think we will be fine with that. righ t nowre is going to be volatility. ie n more any given year for the last up ten t night then your exposure is too high and you shoul think about datcheting it down. >> if this is a head wind for th in doeshe ted f raising interest rates for later this ye ? >> if it were a serious head wind, yes. i think based on whatve w seen so far it's likely not to turn into that. but that's the ansk.

inatwill have to bech w u ityo know, you run the risk of unleashing the adverse economic consequences. >> josh feynman with deutch asset management, art hogan with brally fbr. thank you for joining us for joining ustonight. in washington the house passed a $1.3 trillion speing bill, the 2200 page legislation will fund the government until octor. it will increase military spending and a number of domestic programs oth t msure n pass with bipartisan support. is desk presidentd stre tacsha h > congressional committee has asked facebook ceo mark zub to ostthifaty improperly accessed personal informati about 50 million facebook users. that pressured the stock again today. it's now down more than 10% over just the past week. juliati boorsn talked to

facebook executive cheryl sandberg today aut the controversy and about what she plans to do next. >> reporter: with facebook shes down 10% this week, chief operating offler che sandberg weighing in on the data privacy scandal that raised concerns of users, investors, regulators, and advertisers. >> this was a huge breach of trust. people come to facebook edary and they depend upon us to protect their data. and i'm so sorry that we let so many people down. we spent the last few days trying to get to th bottom of what happened. cambridge analytic never shos t. d t td u tulhe deleted itad.ve h but it is our mistake that we did not verify that. years ago we changed platforms so apps get much less data. but that really wasn't enough. >>. >> reporter: with advertiser nestle today raising questions about consumer privacy. sandberg stressed their business model does not put consumer dat

at risk. >> we provide a free service. that's an ad businessed business model. in to do that we do not sell your data. we a able to show targeted tvertising that's relevo people. we are able to give advertisers aggregate anonymous reports, never telling them who you are. we believe that we can operate our service with our current business model, continue to provide a free service all around theworl and protect people's data. but we are going to have to earn that trust. >> reporter: sandberg saying she markd that she and ceo zuckerberg had weighed in on this controversial issue sooner. nge also said they are layin a gaonin sou s andtr they are working to earnack consumesers' trust. for "nightly business report," i'm julia boorstin m inlo park, california. eggers joins us now to taub about what a regulated facebook would look like. professor, welcome back. it's always good to have you here. >> one of the clips that was not

in julia's's piece was the question oregulation. and ms. sandberg basically was open to the consent of regulation, as was mark zuckerberg yesterday, which surprised a lot of people. it seems to me they think it is a foregone conclusion that that isy.oming their what do you think? >> well, i think the recognition in a there isee obviously this -- as ms. sandberg said, kind of a breach of trust and the implications tha the government and policy makers may want to try and weigh in on and the implications of that, i think this becomes real questionf can facebook kind help to cocreate the regulations that would be put in placeha of tontrol over both advertising and the managemf social media on line? to me, the real question i go and how enforceable they would be. there has been discussions around transparency in advertising. it's owunclear that would work, who would

and how that would be done in a reliable way. the government can't do it and f it's not onebook to take on that responsibility. >> you anticipated my question, jp because i was going to ask exactly what you need to regulate. mark zuckerber acknowledged it nsparency in advertising that he felt would be the target there. but it's not just facebook. we are talking about perhaps all social mia that would be subject to these regulations, right? >> social media and on line media. google is the biggest seller of ad oninrtlig ways to regulate transparency in advertising it would affect google at leastf n more than facebook in this way. those two big players are volume of g any regulations putn place because they are the main ones selling ads on line.hi butis the way that mark zuckerberg is trying to push for the cocreation. you never want theegate

hoarse to come just after your business. you want them to be coming after the entire sector so there is a level playing field for all the firms. >> a lot ofpa these ces do business globally and different countries have different rules how they can function in their countries. mthe europeanels are much more conservative than the u.s. regulations. my theompanies try a avoid regulation by adopting some of ose european regulations or european rules? >> i think certainly the risk would become that if -- if the companies resisted this sort of regulation that the most enngorri faitave m place, which would definitely be bad for theirbusiness. the act to engage in micro targeting even if they are not selling data external, the targeting is what makes facebook successful. and to the extent that

regulation of to how the data could and couldn't be used that would be eggers, thank you for ok's joining us enagain. j.p. is with the new york frt's stern school of business. >> by the way, commerce bank and mozilla arein tempora pulling their advertising from facebook because of this user data controversy. commerce bank cited brand safety and data security n. a blog post brozzer maker mozilla said despite promises from facebook executives it takes issue with the social media company's default privacy setting. mozilla saysk when faceb takes stronger action in how it shares customer data it will consider returning. time to look at some of today's upgrades and downgrades. the auto parts maker was downgraded two notches from derweight to overweight at morgan stanley. that's wall street's onlyating on the stock. the firm says the company to be

an acquisition target but the level of insider selling suggests the deal is unlikely in the near term. the shares dropped 6% to 113.45. tre having ao shares were cut tf underweighm search n beuusines.s remains challenged. the price target is $8. the shares fell 5% to $7.40. >> jp morgan also downgraded true car towe ht from kne l.utra i automotiustry trend overall of and the price target they cut down to $10 ashare. the stock fell 1% to $9.80 just that. ravel lauren's rating was raised to outperform from market perform at cowen and company. the analyst satisfies the luxery brand growth could accelerate because ofarketing and digital lling. shares were down along with the rest o market, closing 1%

lower to $107.6 still ahead, nike just does it. reporting remember better than expected earnings. that could set the tone for trading tomorrow. better than expected earnings. better ter than ex.better thaet han late day, cloud storage company drop box priced its ipo above ioexpect. according tocnbc, the highly anticipated offering priced a $2share. the range was anywhere between 18 and 20. drop box is expected to start trading tomorrow. it will be the largest tech ipo since snap started trading more unanim year ago. sue? >> bill, the dow component nike report better than expected earnings and revenue fueled by

growth in its international sales and its momentum in china. the ceo said he sees a sales slump though in the u.s. reversing. that sent the stock initially higher in offer hours trading. courtney reagan has more an nike's results. >> reporter: nike's trong third quarter results were driven by strong international sales. sales strongertehan eif europe, greater china, and asia pacific though nike north america's sales disappoint. they sell direct to consumers grew double digits internationally with china leading the way. it is been a difficult week for nike after parker sent a memo after allegations regarding inappropriate workplace behavior had been reported and two executives left in the wake of the reportinglthough parker didn't directly tie them to those chip miker micron beats expectations. after thebell,he company said

that broad based demand for its memory and storage products led to a strong quarter. the company excepts that to continue. that's why it gave guidance for the current quarter above estimate shares were volatile after hours. they finished the regular session down .923%t higher selling pces helped kb home, the home builders. earnings rose and were stronger than expected. investorsocn fussed late. shares were down. dardenen said an increase in the number of restaurants in operation helped increase earnings. they raised earnings guidance for the rest of the sales were a sore spot for this quarter. they rose less than anticipated. dardeneneahares offy 8% to $85.94i new proct launches kept g 3 apparel grow sales and

profit above street expectations. but the owner of brands like tommy hilfiger and calvin klein gave guidance for 2019 below street estimates. shares% plunged to 33.01. carnival said a rise in online spending helped that cruiseline top sales. demand remains stroel. shares f 1% to om.20. cg up, at&t spars with the u.s. government. at stake, $85 billion, and time warner. we head to court next.

the biggest anti trust case in a generation is finally gotten underway. the justice department as you know is suing to block at&t's $85illion merger with time warner. hampton pearson is at the courthouse for us tonight. hampton? >> reporter: bill, this was like opening day of that long aatited legal the departement of b justice enetwet and at&t time warner. opening arguments attended by, among others, at&t's ceo randle stevenson as well as his time warner colleague. they were eard onc in court is the government in essence saying that this merger would see consumers ping higher prices and less innovation going forward for all of the video however they choose to receive it, whether it is on atv, smart phone, or tablet going forward. the lead government lawyer even said in court that at&t would use time warner as a weapon

against its competitors and to some degree against consumers in future negotiations going forward because time warnerhave content. on the flip side at&t says t government has it backwards. they have to get in the game because of the likes of facebook, netflix, amazo and googe getting more and more sarubsct ribers inle the t line formats and frankly twinning toin the warith advertiserectoass. is si ial to t eightrisweeks. we are just getting started. >> all right, hampton peaon for us in washington tonight. thank you hampton. and there's more sad news from the toys r us world tonight. the founder of the toy retailer passed away at the age of 84. charles laz rouse founded the company 70 years ago. he rightly anticipated that the post war baby boom would create demand for baby supplies and toys. boy was he right.

he remained ceo of the succeeded him called charlesst lazarus the father of the toy business. before we go here's another on walltoday's sell off street. it accelerated as we went into the close. the dow jones industrial averagi ed down 724 points to 23,957. e nasdaq lost 178, almost 179 points to 7,166. and the s&p lost 68 points. so d quite a on the street. >> indeed. >> that does it for us tonight. i'm sue herera. thank you for joining us. >> i'm bill griffith. have a great evening. see you tomorrow. ♪

>> this is "bbc world news america." ♪ >> funding of this presentation is made possible by thfreeman foundation, kovler foundation, pursuing solutions for america's neglected needs, and purepoint financial. ♪ pe>> how do we sur tomorrow? it starts with a vision. we see its ideal form in ourth mind, and en we begin to chisel. we strip away everything thate stands in y to reveal new possibilities.