>> announcer: this is "nightly business report" with bill griffith and sue herera. unpredictable market. it was a relatively quiet day. until the bottom fell out of stocks. and investors are left to wonder, what's next? corporate mistrust. why a scandal can exact a high cost on investns. les plans. apple wants to play a bigger role in the classroom, where providing sapools with tops and tablets is very big business. those stories and much moreni tonight ontly business report" for tuesday, march 27th. and we bid you good evening, everybody. tainly hat was c interesting. an unexpected turn of events late in the day sent the blue chip dow industrials average down sharply and once again moved it into correction territory meaning it's now down

10% below it is most recent high it certainly didn't look like hat would happen when the market opened thimorning. for a time the dow was up more than points. late the day testry yields moved slower as have theors bought bonds and tech stocks tanked wh all was said and down, the dow jobs oi344s to 23875. the nasdaq wasn d 3 thrz or the 211 points. a the s&p lost 46.b sani has more. >> it was another whipsaw session for the stock market after yesterday's robust rally. markets took another turndown in the last hour wh yields on the ten year tress redropped for the first time for the first time since february. that brought down fwank and other the overall market

drooped. two issues have been going on. the tde war story ebbs and flows but everyone agrees a trade war would be detrimental to earnings. it is a jott clear whether we are going to have one or not. technology too a hit of a a whirlwind of bad news. and the recent crisis in social media stocks aroundook has led many to question whether user engagement and advertising will listen. not just for facebook but for other social media stocks as well a finally, nvidia announcing it was suspending testing on selfg drivars which dropped the entire semiconductor market. rth semiconduc as a leadership group any question on earnings is going to add tadthe aches to technology. for "nightly businesseport" i'm bob pisani at the new york stock exchange. >> let's turn now to our guest for more on this unpreziktible market. matt mayly at the equity strategy at miller ta back. welcome guys, nice to have you

here. matt, what the heck happened? well, it's kind of fuy. the tech group seemed to be the eetalyst today. of course last it was the trade issue. but right now we are -- it is a funny. in january, the mart was riding really high and everything was going good after the tax bill. but then february the market got cracked. and people were saying well nothing has really changed. well some things have changed now. whether it be interest rates moving higher toer the fed being less accommodative. tand then what bob was j t in terms of the -- whether we are going to be in a trade war or more trade stresses an the whole thing with social media. some uncertainty is out there and that's causing the market tn come d little bit. to be honest with you the one thing i'm worried about -- therefore i'm a little cautious that we could g a little bit lower. but the other thing i'm worried about is everybody seems tohe think in history of the last 20 years if the market is going down it has to be to go down 50er puz or more because that's

what happened in 2000 and 2008. where long term historyls t us even bear markets are not that bad. people need to adjust their thinking. >> people rebound waiting for some correction, people sitting on the sidelines waiting for a correction to get in. now they are wondering gee shld i get in with the market going low like this. >> that's always the it had been a while since we had seen a correction. the ldt one was tow the end of 2015 into the beginning of 2016. the reason why the markets were sanguine last year is there was not uncertainty with regards to policy. so the markets have a very sang win year. what happened so far this year is unrtain aren' monetary policy, the federal reserve ies raising intrates and signaling for rate hikes ahead and changes around trade policy. i want to make a couple of points o that if you listen to jerome powell

at the fed he talked about allowing the economy to run a little bit hot for se time. don't think the fed is going to be overly aggressive. the second thin is everything we have heard so far around trade is very small. in my mind it's very politically driver. it's not about macro economics. e last thing the trump administration wants is a bad nt macro environ heading into the med terms or the to 20 elections. aiise clients as always during market corrections to take them in stride. they happen almost every yearan will represent buying opportunities in what we believe will be a elongated cycle this. cycle is going to enas all cycles do on the back of fed interest rate hikes and an inverted yield curveeading to' recession. we are not there yet. >> matt, what seems to be unsettling though is the volatility that was so absent last year is backith a vengeance. and you are seeing whipsaw-like activity usually in the last hour or so of trading. it's unnerving to some

investors. >> it definitely is. part of that of course has to do with the mechanization of the trading. highency traders orth algo or the computerized trading has caused the whipping in the stock market like you said inheast hour. that's why it's really important to talk to your investment adviser in advance. if we see more weakness, don't be like what stock should i pick ow, the stock market is down today. no. have it in advance. pick theck sor groups or the etfs that you want in advance so you can calmly p sk yourts and then buy them. i think right now with all the uncertainty out there is look for companies that not just good dividends but have a history of strongen div erowth so if the market is in an extendedd of uncertainty you are paid to wait. we gentlemen, we could go on forever. ill have you back because we

know this market, if anything, is going tobe continue t a headline for us. mat mayly, and brian levity with oppenheimer funds. thank you both. >> elsewhere, we have a handful of mergers and acquisitions to tell you about tonight. glaxo smith klein is buying novartis out of its stake in their jointtenture. the decision comes after glaxo last wecked not to buy pfizer's consumer health care business. brookfield property partners is buying u.s. mall owner ggp for $9 billion i cash. brookfield already owns a third largest mall the operators in the country. finally, dutch company actsco notebookel its spell chemical firm to carlyle. homerices started the year with some gains. according the case schiller home

price index it outpaced wage growthiond infl as we have been reporting prices were pushed higher by a shortage of homes for sale and increased competition for the ones that are on the market. consumer confidence east eased in march.rd acg to the conference board that softening reflects a slight decline in the outlook for business conditions and the stock market. despite t the dip number of consumers that said that jobs are plentiful climbed to the highest level since >2001. he upity beat outlook in the labor market wasle red in cnbc's all america survey which ganls the sentiment of american tionwide. steve liesman has the result. >> reporter: a strong majority of americans feel so good wh their job prospects these daysy they feel tcan up and quit. t the survey found that 61 people believe they can leave their job

and find one of similar pay and benefits in their area in just a few months. 30% not so confident. 30%ay they are more jobs then workers, underpinning this confidence in finding that new employer. just 21% see more workershan jobs that confidence in jobs does not spill over into the stock market. apparently spooked by recent market declines in the rise in volatility the percentage of americans who say now is a good time to invest in equities fell sharply to 41% from 50% in the prior survey in december. still, market optimism is only fallen back down to average levels. and the percentage of americans who say they own stocks remains high at 58%. that growth could be coming from average mom and pop investors. the percent of americans with less than $50,000e in arket has actually grownive points to 22% compared to last year. part of the recent market volatility has been linked to

fears of a trade war andre americanst keen on the tariffs imposed by trump administration. 36% say they don't know enough to say. but 35 oppose the tariffs on aluminum a teal. 29% support them. yo confuser americans see canada and mexico as economic threats and more v twm as economic opportunities for the united states. for "nightly business report" i'm steveliesman. >> when it comes to trade the white house says it has reached an agreement in principle on a new deal with south korea. though details were not real estate leased seoul announced a deal yesterday to limit u.s. imports of steel wheel increa increa automakers access to theet korean ma time to look at some of today'sespgrades and downgr we begin with facebook. bankamerica cutting its price target on that stock f the second time in five days. now downo $210 dla. the firm says the ftc probe

raises the c risk ofil penalties and it could take years to resolve. however, the analyst did on tain his buy rating facebook testimony stock lost nearly 5% in the selloff today to close at $152.22 we will have more on facebook later i our program tonight. meantime, suntrust is lowering ritsing on newell brands from hold to buy. the analyst therere sites the nt agreement of with an activist investor and the billion to sell $10 worth of company assets. the price target now, $30. the stock was down 3%o 25.19. citi is no longer telling clients to sell roku. today it upgraded the stock to neutral. the analyst sites the rollout of the roku channel app on samsung's smart tvs. the price pargtd $36 a share. ubspgraded kb home. the analyst sites strongerg

hous fundamentals and the stock's current valuation. the price target was increased to 32 but the stock fell i1% an overall down market to $28.13. still ahead, apple's big push into america's classrooms. a legal win for oracle a. federal appeals court has revived oracle's multibillion dollar copyright infringement

googlegainst the judge said google's use of oracle's va. practicing technology was unfire and ordered trial to dermine e damages. this case divided silicon valley because it pits those who develop interface c those who rely on it to develop software programs. >> reporter: there are conflicting reports whether facebook's ceo will testify in front of congnss. he has b asked by a number of different panels. if he does, it will be mark zuckerberg's first congressional testimony. cnn first reported he agreed to testify but a statement from a house committee says that the committee is still working to determine the day and t for his possible appearance. secoly, mr. zuckerberg declined to appear in front of a ukry parliamen hearing also investigating the cambridge analytic scandal. facebk of course is the latest company to add its name to a long list of corporate scandals from wells fargo, wynn

resorts, companies have been may have beening badly. at what cost is corporate mistrust hurting investors? we have an author who wrote about it in barren's. he's here to talk with us about it tonight. it is a confidence game this many cases becsese t companies in many cases rely on customers.ence of if they don't have that confidence they are going to flee and the goe to stock price, right? >> that's right. ert that. in the case of facebook it has been very painful for shareholders. you may notice that market cap was down $95 billion when it checked it today and it hit a low today. that's pretty painful in the sht term. in the long term there is loss of trust. and i think that wells fargo is a pretty good champl of that in that their problem began in 2015 if you remember with bogus ercounts and such. and there were o issues as well since then. you look at wells f might add had a pristineoi reputation through the

2008 financial crisis with an untarnished reputaon. since then their earnings have gone down and their stock has underperformed not only the market but the group in the las8 months. there is definitely prices to way for investors. >> it seems to me we are also at kind of an inflection point perhaps, if you will,hat people now seem to care about the way that companies make their money and produce their product and service their clients not just the bottom line. >>sue, like it or not, that's correct. at least in the studies that we have done. i will give you an example. do something -- barren's does respectedcalled most companies every year. we ask our readers, usually professional money m rank companies. another thing that we do is we ask them to rank what they think is an important characteristic for the company, we offer strong siness, ethical management.

in the 2005 survey we did, only en% of the respo said it was the most important thing. last year, nearly 30% said it was most foreign and it was the number oneanked characteristic that professional investors wanted to see. secondly, youar see fink of black rock saying that companies shouldve a social purpose. i mean that's a whole other ball of wax there. but it's all related to the ethics. >> in deed it's different in some cases. feed to see you. that was a summati there. g wasn't a question. thank you for join. >> thanks for having me. >> you bet. thanks. >> general electric shares take off on rumors of abl pos investment by warren buffett. that's where we begin tonight's marketcu blockberg said there was speculation among traders that the billionairenvestor may be considering a stake had the edruggling industrial giant. the uncertainty to a run up in ge's stock.

the shares climbed more than % at one point. while mr. buffett hasn't made an announcement of anv getment in the past he said he would consider taking a position in the company at the right prize. ge shares rose nearly 4.5% to sit ron research is betting against twitter because it is vulnerable to social privacy regulations. twitteresponded saying users know their tweets are public and added that uss' direct messages are not sold. twitter shares though are off 12% to 28.07. >> the spice maker mccormick said a recent acquisition helped results. earnings were a beat and revenues were in line with estimates. some of the money from tax reform will go to employee

bonusesage increases and buy backs. the stock was up. aetna is going to offer rebates to 3 million of its membs. the move is intended to give consumers more transparency when it comes to drug tpricing. d you earlier this month that united health group msie a lar move as well. aetna shares finished downto 1 168.36. after the bell, lululemon said thattrength over sea coupled with strong e-commerce sales here in the u.s. helped beat on the top and bottomline. shares initially rose sharply in the extended session but they finished the regular season down 2%. also after the bell, nike announced it has extended its partnership with t nfl. under that deal nike will continue to provide players who under contract to nike with footwear and gloves for game days. nike shares initially rose in the extended session.

they ended the regular day up a fraction to 66.17. it goes without saying that classrooms today don't look like they did when you and we kids. gone are the ace days of number 2 pencils andns sharpe technology is playing a bigger role school. and apple is fighting for a bigger presence in america's classrooms. >> reporter: chalk boand notebooks are a thing of the past in america's classrooms. today, they are outfitted with lap tops, tablets, and smart boardsen to prepare stud for 21st century learning. it's also a big businessor america's tech companies. the global educational technology market generated revenue last year of a estimated $18 billion. so it's no surprise tt app wants a bigger piece of that market. today, apple's ceo, tim cook, t tohe stage hereht lane t high school in chicago where he introduced new products and apps

for teachers and students. >> at apple we care deeply about education because we love kids. and we love teachers. we loveat creity and curiosity. and we know that our products can help bring t out creative genius in every kid. >> reporter: apple set u a demo room at the school showing off new ipads and apps. analysts who attended thesa eve this could be a smart move. >> the education is about 15% of apple's business. and the reason why this helps is this is the first time we have a comprehensive suite of management tools and curriculum around icios d specifically the ipad, which is critical to education. >> reporter: apple has a real fight on its hands, though. im cook's company is not the dominant force if the american classroom. the ad, rival google leads way. devices running google's operating systemsn chrome

books and android tablets controls nearly 60% of the u.s. education market last year.h that swarves b apple and microsoft. some say google's advantage lies elin theive affordability of its hardware and its software. like g sweet, which allows students to collaborate on document and projects. >> with today's ent, it's clear that cook's intend is to teach rivals aesn about how to compete and win this the classroo josh lip ton, "nightly business report," chicago. coming up a self driving jaguar. they may soon be on the road. sooner than you think.

the state of arizona has now suspended uber's drooifl driverless car testing after last week's deadly car accidentl in ater the mayor said the video of the accident was both disturbing and alarming and it ns about the uest ability of uber to continue testing in arizona. uber had already suspended operations on its own and kid it wouldp a dialogue open with the state. >> the chip maker insliddi propertiedly plans to suspend self driving tests worldwide t aftet fatal uber accident in arizona. e company had been testi self driving glovely in new jersey, escalatora, japan, and germany. that news pressured the stock, sending it down more than 7% in trading today. still other companies a ving ahead with their plans to roll out autonomous cars. waymo, the company that was spun

out of google h now signed a deal with jaguar meaning you say soon see driverless jags on the road. phil lebeau has our story tonight. >> reporter: think of jaguar, and th is what comes to behind mind sh high-end performance cars. soon this will be the image of jaguar, an all electric p iaced suv modified to become a waymo self driving vehicle. >> we like the idea of something a little bit more compact. as you do a o tourthe world there are very few full electric vehicles with batteries the size of this incredible jaguar i pace. >> reporter: they will join chrysler pacifica hybrid minivans waymo was currentlyg test arizona. later this year they will start giving rides to the public as waymo races to beat auto makers and tech firms with a self driving ride share service. >> one could i easilygine that

at some point there will be a shakeout and we will end uph w two or three or four major autonomous operating system players that sort of dominate the industry. t reporter: but followi death of an arizona woman hit by an uber test car in autonomous mode, some are asking if regulators should hit the brakes on allowing self driving hicles on public roads, a concern waymo executives hav discussed with safety agencies. >> we are continuously chatting with them. i think that's part of our respsibility ataymo is to make sure the world and the cities in w whiperform and the reagan raitt regulators who regulate those cities understand our technology. >> reporter: way more's technology including the dome on the i pace will be out on the flowed a couple offees., w expe have 20,000 of those modified suvs giving ridesc to the pub with no one behind the wheel. phil lebeau, "nightly business

report," new york. eye ac is reportedly exploring a detail of dictionary.com. "wall street he journal" two potential suitors approached iac which owns the on line dictionary. dictionary.com and its sister site, tee sawyer us.com took in more than $20 million in renue lastyear. my kids helped with that. some say this could potentially be a defining moment foran the co >> that's a lot 6 money for words, for sure. >> finally tight with the start of baseball season a few days away the league'say rolls have been released. the red sox payroll tops the majors this year at $23 million. that ends the l.a. dodgers four year run at number one n. second placia the san franciscos with $203 million. and rounding out the top three, as you can e, at $183 million, the cubbies in chicago. traditional leaders,rkhe new yankees, they are number seven on the list this year with a payroll of just before $165

million. that's their lowest payroll since 2003. before we go, a look at the selloff and the wild day on wall street today. the dow dpped 344 points to 23,857. nasdaq was the biggest loser, down 211 points, nearly 3%. 46. the s&p 500 was off on that note, that does it for us tonight. i'm sue herera. thank you for jos.ing us. >> what will tomorrow bring? >> volatility. >> no. do you i'm bill grfith. have a great evening. we will see you tomorrow. . do you i'm bill griffith. have a great evening o.u.d. b. do y t. do you i'm i'm bill griffith. have a great evening. i'm bi gsee you toi'm bi this is "bbc world news

america." >> funding of this presentation is made possible by the freeman foundation, kovler foundation, pursuing solutions for america's neglted needs, and purepoint financial. >> how do we spe our tomorrow? it starts with a visn. we see its ideal form in our mind, and then we begin to chisel. we strip away everything that stands in the way to reveal newo ibilities. at purepoint financial, we have