>>annos is "nightly business report" w bill griffith, and sue herera. stocks tumble, the majorag av suffer their biggest weekly losses in more than two years, and the dow lands in correcti territory. china strikes back. the world's second largest economy rolls outry retalia tariffs, leaving investors on globe. ound the >> i will never sign another bill like this again. i am a not going to do >> the president reluctantly signs into law that trillion dollar spending bill as the drama in washington spreads tol wa street. those stories and much more tonight on "nightly business report" for this friday, march the 23. and we bid you a good friday evening, everybod sue is off tonight. drama on wall street and in

washington again today. it capped off a a rocky ugly week for stocks, after that 700 point decliney, yesterhe dow fell sharply again today, pulling the index down more than 10% from its most recent highs. and the s&p 500 just shy of that key 10% correction level. concerns about a trade war, and the threadf a spending bill veto kept investors on edge all day today. although in the end the president did sign the bill into law. we'll have more on that in just a moment. but first, the closing numbers. here they are. the dow down 424ay points t to 23,533. the nasdaq tumbled by 174. and the s&p lost 55. the crazy c dayped off a crazy week. the major averages all down more than 5%, registering their biggest percentage weekly declined in more than two yearsm bob pisani hase now on the nervous market from the new york stock exchange.

>> stocks where mostly sideways unl the last hour and a half when they drifted lower. the big news is that the two most important sectors skbanks tech a showing any leadership. it is without them it is a hard to the market to advance. the market showed it cares about a lot of things of the it's rried the fedight get more aggressi regarding interest rates. it was more worried the president might not sign the spending bill. but he did. technology, aabout lot. it's been a key leadership group all year but facebook collaps in the wak of its data mining scandal and other social media stocks tk a dive. ksubsectors that too the techs higher last f year likg stocks sold off. energy and utilities led the charge this week but they comprise a much smaller part of the s&p 500 than banks and tech stocks do. the biggest single worry is trade protectionism.t that's because potentially a threat to earnings growth, which is theriainr of the

stock market. earnings are expected to increase about 20% this year. that's a lo so even a modest threaten is gh to cause a lot of volatility. tariffs have the potential to cut earnings growth forecasts, particularly in global and industrial stocks, but it's difficult to model into these rnings forecasts because we don't know where these tariffs are going to settle out or what industries they may ultimately affect. youee, you have got a lot of chaos as a result. i'm bob pisani at t new york stock exchange. china is now ready to retaliate. the world's second largest economy is threateng to raise tariffs on about $3 billion worth of u.s. imports. and concens of escalation in trade tension is playing out in china'sanufacturing heartland as well, where they make that made in china label. eunice eun reports for us tonight from china. >> reporter: i'm coming to yo u fr. trade deficit central, american companies have been f relying otories like the

one i'm in right now to make men's shirts, toys, and television sets that are eventually sold to u.s. consumers. the word to describe the mood ih export dome is nervous this morning we woke up todi an ime reaction from beijing, tariffsre being seen a a warning shot of things to come. tariffs were a reaction not to president trump's announce men yesterday but to the steel and aluminum tariffs earlier in the month. th chinese chose their products carefully. they are goingalfter politic bases, farmers and swing they are targeting almond countr which went for trump and looking to rattle corn who have been optimistic about selling ethanol to the chinese. chinese today says the next target should be soy u.n. beans.

i toke with an expert this the field and he said if soy beans t go on thele then we are really in a trade war. it's unclear here, it's clear what tariffs will be hitting which products. busineie people here bel the president wants toart hi high -- goods however those products are a small share of u.s. imports from china. the concern is that the tariffs could hit a wider ranf products. in a low markup business like apparel that is going to hurt. exporters are thinking about survival strategies. they are telling me once the tariffs are out they will likely dump targeted products, tweak products to suit certain secretaries,ov and production entirely out of the country to other places like southea asia. but not to the united states. for "nightly bui'ness report" eunice eun in china. one of the industries that china could pentially target

is pork. and that's not going over very well with america farmers right now. jane wells has our story for us tonight. >> reporter: there i never a good time for tariffs. but now is an especially bad time. > farm income is at 12-year lows we really, really need access to those markets now. >> reporter: china isg threaten25% tariffs on u.s. pork, pork which currently enters the chinese market duty-free and it is a huge market, the thirdar lst export market for u.s. hog farmers in terms of dollars behind japan and mexico. let me explain how the sausage is made. if your average american hog sells forhe $150 onmarket, well $53 or a little over the third comes from outside the u.s. and $9 is just fromchina. that $9 adds up to over 1 bl a year. hog futures have already been dropping as china ram up its

ion pork tiproducon. no one knows how much of the pork industry china may end up targetinecially since a chinese firm owns smithfield foods aor massive u.s. pk producer. still, the news is a slap to farmers who voted for donald trump in making move ney, not less. >> we have been assured that agriculture at the end of the day is going to come out better than where we are today. >> reporter: john newton fromme thecan farm bureau federation says farmers have en pleased with tax and regulatory policies. andd releastatement which says the administration stand ready to defend agricultural producers who may be harmed by foreign country retaliation. but the question remains after all of this after netanyahu hog farmers will be bringing home less bacon. for "nightly business report,"n wells. they are warning a trade war could dispt the economy and hurt the fragile economy.

he says dialogue is the pest pat to resolving these problems. the frooun and others arero exempt the trump administration's steel and aluminum tariffsea at l temporary. we go to brussels, at a summit of european aders. >> after a couple of weeks of uncertain european leaders woke ups to the n friday that the european union would be exempt from the trump administration's steel and aminum tariff until may 1. they join other countries inclingexico andouth korea who all won the same temporary treprieve. ese meeting here in brussels insists tmptions should be permanent and they will use tha a negotiating terms in the coming week. the eu's 28 heads of state eit rated an argument made

repeatedly to trade representative robert light howser. they say they are happy to cooperate with the u.s. toeal with the problems especially in terms of steel production but eu reserves its right to respond in an appropriate and proportionate matter according to wto rules. they said they are in a multilateral trading position with the wto at its core and woulders that the united states not. to the aum drama in washington today. the senate overnight passed tha1 trillion spending bill averting a government shutdown. first thing this morning the president threatened to vet as we mentioned he reluctantly signed out later in the day. for a whi it created a lot of

uncertainty. something wall street cer inly doesn'like. ylan mui has more on the bill and its winners and losers. >> reporter: a whirlwind day in washington after president tru threatened to veto a massive federal spending bill and then changed his mind and signed it with hours to go before a government shutdown. the $1.3 trillion package included big spending increases for many agencies a jump for health and education. for agriculture, for the defense department. trump was upset the bill doesn't fund his border wall and didn't address the fate of the d.r.e.a.m.ers. he threatened to veto the legislation that republicans and democrats had carefully gotiated. a source says that house speaker paul ryanne inter speaking with the president by phone emphasizing all the wins this the deal, particularly the boost in military spending, including a 2.4% pay raise for service members. by this afternoon, t reversed course. he ructantly signed the bill

to fund the government through year. d of the fiscal >> as a matter of national security i have signed this tnibus budget bill. there are a lot ongs that i'm unhappy about in this bill. there are a lot of t thingst we shouldn't have had in this bill, but we were, in a sense, forced if we want to build our military, we were forced to have. there were some things that we should have in the bill. >> reporter: trump said republicans are on the side of the d.r.e.a.m.ersnd he is still open to a compromise. house minority leader nancy pelosi shot back saying republicans offer only a temporar patch. lawmakers have already left town for easter recess. the president will spend the next few days in mar-a-lagoo. perhaps everyone just needs a vacation. for "nightly business report," ylan mui in washington. >> let's look at some of today's upgrades and downgrades. citi cut its rating on what has en the best performing

semiconductor stock so far this year. on technology. it was cut to neutral were buy. the firm sited a decline in flash memory pricg. the analyst however raised his right target on the stock to $60. although he admits the new price forecast makes him nervous. micron fell with the rhett of the market to ma54.21. gosachs is adding cisco tos conviction buy list. the firm says the rally in cisco shares this year is just the beginning of a bigger run for that stock. the analyst bumped the price to $54. but shares fell to 42.42. and barically's is raising its rating on carnival cruiselines from overweight to equal weight. the strong bookingsnd upbeat outlook from yesterday's ournings report should drive earnings higher tout the rest of this year. price target, $77. on this down day,though, carnival was off more than 2% to

$64.41. coming u this week's market monitor has three picks he oinks could well despite rising trade tensions between china and the u.s. more executives at wells fargo areeportedly leaving. according to the "wall street journal," four ris officials plan to retire. the changes follow a recent enforcement action by the federal reserve which restricted the brch's growth and replaced variouer board me bank of america going to pay $42 tolion to new york state settle an investigation into

electronic trading. the new york attorney generalhe said bank had secret agreements with certain firms to send tom order buy and sell stocks. those agreements were allegedly cod from clients over a five-year period. and a federal reserve dfficial today said that the central bank sho continue raising rates grad ally over the next couple of years.at nta fed president rafael bostick cited a labor that is at or near full employment and inflation that is approachingfehe ' 2% target. as you know, the fed raised rates this week and is forecasting two more rate increases this year, and three next. elsewhere, orders for long lasting manufactured goods rebounded in february, reversing january's decline. commerce department said today thatds durable g orders rose g demand hanks to str for transportation equipment. durable goods are items designed toee last at least t years. the durable goods report also showed an increase in shipments,

which could be a positive sign that business spending grew in this first quarter of theew year. two new reads on the housing market out this week showed a less thanta stellar to the critical spring selling season, and the culprit is brett clear. diana olick hasur story tonight from washington. >> reporter: homes are get expe. especially these homes. the price of a newly built home jumped to $326,000 in february, up 10% compared to a year ago. inheottest markets like california and colorado, where home builder tripoint traipry s are even ri higher. >> the story is demand. demanded is strong across the evboard. entry up to move up and luxury. that demand is really pushing pricing, both at the entry level all t way up throu the luxury price point. >> reporter: n homes are

needed most at the entry price level. unfortunately rising construction costs, especially new tariffs on materials, make that harder for builders. >> materials, labor, land, regulations, they have all had an impact on housing, especially on the price of housing because we are continuing to absorb those price increases with more price increases. >> reporter: without builders ramping up, the existing home market is onlyet gng more competitive and less affordable. february sales bounced back after two months of drops, but prices also continued to surgee hi >> absolutely. that's probably my number one problem in searching for a home that i like is finding something in my price range. >> reporter: lisa reagan has been searching for a home in tht nta area for about a year but does not want to overspend. >> i amed conce that i might be buying at the top of the bubble. and i have done that before. and i don't want to do that

again. >> reporter: rising mortgage rates like we are seeing now usually coo price as bit. but that is not the case in today's market. demand is simply so high, and lpply so that higher rates are not holding back competition. in fact they may be fuelling it as buyers try to get in fter nifore rates move even higher. for "ghtly business report," i'm diana olick in washington. boeing dpped its tariff appeal. that is where we begin tonight's market focus. company is not going to appeal a recent rule by the trade commission which allows canadian jet maker bombardier to sl to u.s. cops without steep tariffs. last year boeing launched a complaint saying bombardier was subsidized by the canadian government which allowed them to sell at unfairly low prices. boeing sharesraose aion today to $321. f eve wynn has cashed out

entirely oute gaming giant that he created. the casino mogul sold his entire stake in wynn resorts after resigning last month following sexu misconduct allegations. and mccow based galaxy said it was taking a 5% stake in wynn. wynn shares finished at 175.88. >> glaxo smith klein isakg itself out of bidding process for pfizer's unit. pfizer expects to make a decisi later this year to actually sell that portion of their shsiness. es of glaxo rose. shares of pfizer were down 3% to 4.49. shares of qualcomm came under pressure after the chip maker said all of its board nominees had been reelected. fx of the directors, though, faced oppositiom the a majority of shareholders who were concerned about how the

company handled a recent takeover offer from rival broadcom. qualcomm shares fellore than 3% to $53.66. our market monitor tonight has names o stocks that he says will remain valuable even with rising trade restrictions between the u.s. and china. this is his first time on our program. we welcome jerem brian. he is portfolio manager with radiant investments. jeremy good to see you. thank you for joining us tonight. >> thas for having me. >> i'm going to jump right in with your rst pick'm curious. it's starbucks. you say it should do okay evenr if ts trade tensions between the u.s. and china. but starbucks is making a hugen investmentchina. make your case. >> yeah. so the case is just a little bit with regardnt story to chinese expansion. and that's brand expansion. we think that starbucks, the brand over there -- there is still a demand fordsestern br in the chinese region. and we think that starbucks is

e of the predominant sources of that. we think they are going to continue thi grow in from a units perspective, from a sales perspective. and also in the u.s. side we could see reacceleration of growth a well. you get the double whammy of growth in ckstar >> you don't fear any retaliation by chinesent governould hurt starbucks? >> it could in the very short interi term. but i still thingover a longer period of time i think the bra expansion, the brand opportunity of starbucks is too big and it' still too in demand to be affected by that over a long period of time. >>okay. chevron. you are making a bet on anoil. you love that dividend. who doesn't love 4%, huh? >> exactly right. i mean if you look at chevron, the interesting part of chevr is it' back to basically about november, 2016 levels. oil prices during that time oil prices w in the low 50s then. they are in the mid 60s w. and chevron is at the same price.

you get the dividend yield over 4%. and you have free cash flow tuned to increase that dividend and doac share buy in the future. >> finally, you have celgene. i know it hassu ered, this biotech company. is this a value play? that how you see it then? >> yeah, it can be a long fall from growth to value, which celgene has kind of been through. the funny story is we bought this today. we think we are there. at's the thought. i mean celgene was at 147 about six months ago. it's about 85 now. so we are still looking aty a comp that can do 10 to 15% eps growth over the next few years. if they even get one of their drugs to come through into that pipeline, this be a double stock in the next two to three years. >> but it is a good highlight that biotech can be very, very volatile, right? >> absolutely. you have tbe cognizant of that that's why we prefer to buy them when they are a these price levels where upside is large potential both from the

growth and the valuation opportunity. >> jeremy brian with gradient investments welcome. thank u for joining us tonight. >> thank you very much. >> to read more on our market ks monitor's p go to our website. when we come back, a bright spot on wall street. and it came from the tech sector. the just department has accused nines irani of orchestrating years of cyber attacks on behalf of of the iranian government. it is one of the largest state sponsored hacking cases evergh br by the justice department. d.o.j. says that the hackers' goal was to steal data from businesses, government agencies, anduniversities. >> they hacked the computer systems of approximately 120

universities -- pardon me, approximately 320 universities in 22 countries. 144 of the university victims areri an universities. the defendants stole research that cost those universities approximately $3.4 billion to procure and maintain. >> and that stolen information was then used by the iranian revolutionary guard or it was sold for profit in iran. drop box soared in its wall street debut today. investors rushing to buy into the biggest technology o we've seen since snap came public last year around this time. the cloud storage company closed out itsst day of trading with a gain of more than 35%. deirdre bosa has more on dropx nd its strategy for growth. >> reporter: as drop box makes its public debut, the company enters a land of land graphs. cloud computing has been one of the hottestf corners oe market over the last year. it's not just cloud foc

companies like sales force playing in the field. tech behemots like google, apple, microsoft and amazon are major players and they are only setting bigger. where d drop box fit in? the san francisco based company has 500 million registered users and became a household name thanks to popularity with consumers rather than businesses. >> it is viral. it is a sticky. an you see that across the metric of the company. if they can continue to innovate and lode which they have proved they can do in the past. >> reporter: in the file sharing cloud business the money is in enterprise and drop box is increasingly moving into the space on its path to y. profitabil the ceo and founder says the co any's consumer following will help it win more business customers. >> we have over 500 million registered users. they have been bringing us into millions of companies. we have over 300,000 paying drop box business customers.

it starts simply you start using drop becomes at home. bring to it work. share and collaborate w oh a te a project. that team becomes a department, the whole company, the w industry. >> reporter: investors seemed to agree. while there were concerns as to whr public markets would value drop box as richly as the private market hasn the past the company's debut today suggests investors believe there is plenty more room to he gro. now as a public company though it wl have tocarove that it grab more land in a competit for "nightly business report," deirdre bosa, new york. niinally t, sad news in the business world. wayne that zynga died at the age of 8 to. he is still the only entrepreneur ever to create three fortune 500 companies in his career. they were blockbuster video, waste managed, and auto nati. he cofounded extended stay america, the hotel chain. he was also a fixture in the world. at one time he owned three professional teams, seball's

florida marlins, the nhl's floridant rs, and football's miami dolphins. what a life. before we go here's another look at the selloff on wall street today. the downo dropping byer 4224 points. the nasdaq tumbled by 17 and the s&p 500 lost 55. the major averagesegtered their bige weekly decline in more tn two years in week. that is the "nightly business report" for this on the. i'm bill thgriffith. ks so much for watching. have a great weekend. we will see you again on monday.

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