>>nnouncer: this is "nightly business report," with sue herera and bill griffith.h >> is t cracking? the sector has led the market higher. if it starts to falter, what happens to the bull run? trade deal. the white house reaches an agreement with south korea. and at the cenr of it, the automakers. riding in style. why a luxury sedan just doesn't cut it anymore. those stories and much more tonight on "nightly business report" for this wednesday, march the 28 good evening, everyone, and welcome. tech is struggling. as evident today again a the sector fell again. one of the biggest decliners was amazon. shares were down more than 4%, wiping billions off its market value. on reports that the president

wants to rein its power and change the way the companys taxed. the white house though says it is not considering any specific policy. then there is apple. goldman sachs cut sales estimates for the iphone, apple's flagship product. the dow component is facing multiple lawsuits over its controversial move to slow older smart phones. and sharesf facebook were higher after that company edesigned some of its security settings. >> whatever the decline in tech did weigh on the broader market again toda although the losses were modest this time. here are the numbers. e dow dropped by nine points, that's it, to 23848. the nasdaq was the biggest percentageer decl it was down by 59 points. the s&p fell by seven. as you know, the tech sector has been powering the broader market higher over the past year or so. it's a widely owned sector over this past t twooebs and has lost half a trillion dollars in value. so now some are questioning

whether tech's dominant position in the margare is over. bob pisani explains. >> the mark's tone has shifted. two week ago it was about tariffs and trade wars. now there is uncertain around technology and what effect that might hav earnings. facebook's data scandals that thrown social media into a existential crisis, then you have got nvidia's driverless car issues and tesla's credit edowngrade. aps getting hit after iphone sales were cut this year. and there is word that president trump might go aftermazon's tax treatment. here's the deal. technology has gotten too big for itsbr ches. the three biggest stocks in the s&p 500 are apple, amazon, and alphabet. combined they have a market cap of $2.3 i trillion out of the s&p's market cap of $ trillion. three stocks make up 10% of the s&p 500. tech is 25% of the s&p in total.

add financial into the equation and those two groups make up % of the s&p. that's a lot. the smaller sectors, energy, utilities, materials, telecom, real estate, they they are only 15%. they don't matter that much. consumer discretionaries and consumer staple stocks make up the rest. if tech and financials faulter they are the only ones left with the heft needed to move needles. do you see the problem? those are the ones investors will try to rotate into provide the market healthy and earnings are rising in those sectors. tech andup financials aresed to see the biggest earnings growth this year of that's why the market is so vulnerable to a selloff when the earnings quality of this largest group, technology gets called into a do you see the issue? it is a very tough situation right now. for san jose i'm b a pisani the new york stock exchange. >> let's turn now to chris zach rely for more on weakness in the tech sector and what it might mean for the bulmarket.

he is the chief investment officer at the wealth management firm independented a vier alliance. nice to see you chris.om we >> thanks for having me. >> i think bob set it up for us perfectly about the risks tt are in the market for tech. you make the point you think we are at a turning point or an inflection point for this market? >> i do. bob has it right. tech is0% of the market. as tech goes so does the rest of the market. it's going to behe leading market upward or down ward. right now we have been seeing ch haveome weakness and that's taking us down. if we can turn it around in the earnings season and see technology earnings, i ty are strong again that can provide support for technology and therefore for the rest of the market. >> we have been asking other money managers who they feel hcould leadher if technology doesn't do that. some have said financials as the fed raises rates that's good for the financials. others say the tariffs won't bother t small the mid cap stocks out there. who do you vote for?

>> i'm in ifr if a of financials. i like the setor financials in terms of fundamental reasons. if you look at rising interest rate if you look at the credit quality of loans out there because we've got low unemployment and people are able to pay back those lows. if you lookt the strength of the underlying economy as the economy continues to grow you see more economic that's typically followed by more banking activity, mergers and acquisitions or more loans. in general, fundamentals are good for financials of the if sentiment can turn around -- possess him in the market we have seen seeing wereo change because of either positive earnings reports or some of the fears b sw over we cou a turning poinl that's really the catalyst that could turn things round. >> what aboutearnings? as bob highlighted not just for technology but for many parts of the market the expectations are pretty nkhigh. >> i that's true. earnings expectations have been rising. but keep in mind those tax cuts are going to drop a hot to the if you see earnings expectations rising about 6%et but tax cuts

if you filter through all the earnings estimates would lead an additional 8%, which is what a lot of analysts believe you may actually have room to advise the up side even wit the heightened expectations. >> let's go back to tech here. as we wrap this up here, do you think it is a pause or could it move higher? who would you look at to invest in here. >> right thousand we are gong to sideways. until would see positive catalysts, earnings, it's a sell first type of market. in technology, the semiconductors have be hit. the social media companies have been hit. and the hardware companies have all been hit. looking through all of thos think where you are most likely to see a rebound will be in the semiconductor area. theeason iay that is because that's such a part of all thet differhemes in technology, whether it's cloud computing, increased need fstorage, self driving cars.

they can rebound from some of negative news headlines they have had lately. that's the area of the market within technology i would look or as a bellwether and also to invest in >> chris thanks so much. chris, withnt indepen investor allian alliance. > according to the commerce department, gdp, the broadest measure of the economy, grew by 2.9% in the final three months of last year. w th more than expected. growth was helped by the biggest gain in con mer spending three years. that offset a drag in trade which saw a rise in imports. the number of homes that went under ct rebounded last month. pend home sales were up 3.1% after falling in january. the national association of realtors blames the uneven performance on a shortage of houses for sale. the agency says that will likely cause 2018 to be all cging year. it expects sales to be flat from a year tago. white house has inked

its first significant trade deal in this case it's about south korea. it is auto one on one agreement that some say could represent a blue print for other deals. kayla tausche reports. >> reporter: president trump notched a trade win,outing a you in deal with south korea t replace a six-year-old agreement he spent the last year criticizeag. >> the we have with south korea is a very one-sided deal. it's a deal that has to be changed. the goal, to lower the u.s. trade deficit with korea, which stood $10 billion in 2017. the bulk of the imbalance, automobiles. u.s. car companies could only sell 25,000 cars each int kea before, a limit they didn't come close to meeting. e new deal doubles that limit, which ambassador robert lighthizer says should spur more business. >> we think we ar going to make real improvements. it's to the going to go to 50,000tuer manufr immediately. but i think it's going to get way above 25,000, and i think we are talking in the not too

distant future about billions of dollars of additional sales. andou i say that other countries do sell in there, and products e kind o that they will buy. >> the white house says there are new cuts to regulation in korea and a side deal combatting currency manipulation as well as caps on how much steelorea can nd to the u.s. that's in light of roonl announced tariffs. trade talks were contentious when they started with president trump surprising south korea'sn president by publicly slamming the deal during their first meeting. >> our trade deficit with south korea has increased by more than $11 billion. not exactly a great deal. >> and then threateni to withdraw all together. today trump tweeting, the two countries can now focus on their curity relationship. as a sult between the u.s. and north korea nears. >> i think there is a political reason behind this as wellru as president thinks about his meeting with kim jong-il at

the end of nay and refleing on what's just happened, this surprise visit by kim to beijing, south korea and the united states could not afford to be in a trade fight with this big strategic event ahead of us. i think that's probably another rationale for what happens over the last 2:24 hours. >> the white house saysep ations are still underway for that meeting with nothi set in stone. another trade event looms, hat's the renegotiation of nafta. foreign officials say the u.s. has not set the date of the next round of tal which is supposed to take place in washington i april. for "nightly business report" i'm kayla tausche at the white house. >> as kayla reported the trade deal comes as south korea's leader het with china's -- as north korea's leade het with chin's president. he had a message for president trump. according to stayed run media

kim told xi that pyongyang is committed to denuclearizing the peninsula. the news agency also quoted kim as saying the issue of de clearization of the korean peninsula can be resolved if south korea and theesnited statesnd to our efforts with good will. the timing is extremely important. kim is scheduledo hold a summit with south korea's president moon jae-in i late april. and there is a possibility that he will be meeting with president atump soon after so analysts here believe that this visit was meantre to pre for those heatings and also to get support from chifise als who traditionally have been his closest allies. north korea watchers believe that the relations between china and north koreae h come under strain because beijing has been for strictly adhering t u.n. sanctions. and today, though, the official papers were full o praise of the relationship, calling it a sign that the ties are

unshakeable. this visit was unofficial, but it had the same pomp and circumstance as for any other foreign leader, including aue ba at the great hall of the people. this was kim's first trip tside of north korea since he took power in 2011. for "nightly business report" i'm yunis union inin be time to look at some of today's glaids. dow component verizon so its raitd rating raised to a buy from hold over at hsbc. the firm says that verizon is well positioned in the internet media space. that could hp its revenue grow. price target, $55. that stock ros 1.5% to $48. coverage of fellow dowomponent american express was initiated with a buy rating at ubs. f thm says that accelerating business volume and loan could drive revenue there, and in turn that could result this stronger earnings per share. price target they put in, $111. the stock rose fractionally to

$92.21. in that same note the ubs analyst started coverage of discover financial with a sell rating. the firm sites potential erosion of asset and revenue growth. the price target is $70. the stock was up to $70.28. and bernstein initiated coverage of the dow component visa with an outperform rating. thely a calls visa's business model attractive and says it should benefit from the growing payments market. the price there is $143 a share. the stock fell a fraction to $116.99. >> some. brightest minds in health care together in one place discussing the most complex ie ustries in rld.

.gentleman's largestrug maker is considering a possible bid for irish by crow tech company sure. th price tag could top $40 billion. deka pharmaceuticals said everything is preliminary right h has been appro made the sure's board. sure sells treatments for rare diseases and hyper activity disorders. and dekata believeshat a combination with sure would strengthen its position here in the u.s. shares of dekaose by 12%. oscar health raised $165 million in a new round of funding. the company said that money will help accelerate its expansion that includes move into four or five new cities every year. they offer small group insurance policies and hasffered its

products this year to more states. thehy hea returns conference brought innovators, investors and business leaders together to discuss new solutions to some very complex problems. cke terrell has more from new york. -- h meg terre more from new york. >> reporter: 13-year-old page horton has been through more than most adults. >> that was very depressing for me abuse like, no, this is real. you are like, it could just be in your head. we are not saying it's not real. we think you are creating it. i'm like, i think i would know if i'm creating it. >> reporter: she had a pain in her joints that got worse and worse over the years. it to an odyssey of testing to figure out what was wrong. she has a rare genetic disease. she shared her story at the healthy returns conference in new york where people are working across health care from industry to government to wall street. scott god free talked about

lower drug prices and worked on the agency'sn work public health. >> i think the most important thing we can do is g back to public health basics, reduce smokinrates, promote healthy dates and raise vaks napgs rates. >> reporter: other topics onnist display atnc the confe were the amazon effect on health care. cutting edge technology like jean editing and big data. and the changing face of the industry through massive consolidation. as for page, she is lucky, there was a treatment for her condition but she still lives with the pain every day. >> i'm ling with thepain. the treatment is not supposed to take pain away. it's supposed to pvent it from getting worse. >> it has done that? it's no worse than it was? >> it iso wor than it was. >> something for medicine to keep wor on. for "nightly business report" i'm meg terrell in new york city. a strong pharmacy business help walgreen's results. at where we begin tonight's

market focus. walgreen'sest poed results that topped analyst's expectations as that company filled more ipgsip presons for more expensive specialty drugs. same store sales continued to be pressured as customers shift their buying habits online. walgreen's hiked its full year earnings forethst. shares rose 2.5% to 67.589. the credit monitoring company equifax named a former ge chief executive as its ceo. their former ceo stepped down following a data breach at the question that compromised the personal information million americans. as the new executive he plans to win back customers' trust. act wi faction was u 2% to 119.04. growth in blackberry helped them beat estimates and led to a

quarterly loss. they shifted from hardware and software to licensing. they said the strategy is working and it's optimistic about future performance. >> we're done with the turn around so to speak. we have got a good business. shn a good couple of quarters. had a good fiscal '18. we are happy and ready to tackle it. >> shares fell 20 cents to $12.20. >>elsewhere, defense contractor khaki internationals that wiondrawn its $7 bil offer for csra effectively ending its biddg war with rival general dynamics. last week, you recall we told you general dynamic raised its all cash offer for the information technology companyn in he have to compete with khaki's bid. khaki and ge were both lower today. and csra was unchanged. after the bell, game stop in reported a risevenue and same store sales thanks to strong demand for nintendo's

switch game console. shares of the video game retailer were up 2%o 14.15. and clothing companypvh topped earnings expectations after the bell thanks ton strength itsa calvin klein and tommy hill gigger brands. pvh expects that momentum to continue aav an upbeat outlook as a result. shares ended the regular session up a fraction at $144.0 coming up the big demand for bigger cars. >> luxury autos a hot but right now buyers want more than justnother luxury sedan. what are they looking for? i'm phil lebeau at the new york international auto show. i'll tell you when "nightly business report" returns.

ody's lowered its credit rating on tesla by bun notch y yesterday. the credit rating agency sites the company's large negative free cash flow and the shortfall in production of its model 3 electric car. tesla is also under scrutiny by rtthe national transion safety board which is conducting an investigation is a fatal crash in california. the stocked 7% to 257.78. federal regulators want to cancel planned increase for meyer penalties for gas guzzling vehicles. the rule was put into place by the obama administration. it called for a dulling of fines if the cars failed to meet nimum fuel economy standards. the national highway traffic safety administrion says that a higher penalty would have a negative economic impact. t surprisingly automakers had

opposed that increase saying it could raise compliance cost by $1 billion annually. >> trucker paymes rising. acan stud audio buy the american trucking association showed the median salary increased about 15% to $53,000 from 2016 to 2017. by comparison, hourly earnings rose about 10% during the same period. the trucking industry, asve we een reporting, is facing a shortage of drivers, and increased demand for shipping services. for years now the new york auto show has been the place to see the latest luxury cars but this year, the luxury lines are pushing newuv and crassovers which now make up a majority of the sales among the high-end models. phil o lebeau hasur story from the big apple tonight.or >> repr: from the return of the lincoln aviator to bmw's redesigned x 4 to cadillac's new xt 4.

auto make remembers pushing luxury suvs t hardern ever. >> it puts us into the heart of ne of the hottest growing segments. it is a compelling entry and i think cadillac is goi a large share of that business. >> reporter: cat lack and luxury brands are cashing in on america's growing appetite for bigger vehicles. what started over a decade ago with mass market brands offering a wider varietyf crosses and suvs has now extended to the luxury players who are capitalizing on wealthier buyers who want to sit higher in a more refined interior. the demand for high end suv is so song bmw's plant in south carolina which only building suvs is expanding production. we have globally.est factory i have to say we feel in a very good potetion. >> rep right now, over 60%

of the vehicles sold in the yids are trucks and suvs. but that percentage isve higher among some luxury brand like lexus. >> in lexus's case it's almost 70% luxury vs. in fact, in new york, we are unch laing another new one, the ux, which is just below nx. so i think we have got a great portfolio, and a great suv to offer any customer. >> reporter: with gas priced expected to remain relatively low deman for digger less fuel efficient vehicles should remain robust and even a little stronger among luxury names. phil lebeau, "nightly business report," new york. from cars to boats, business has been growin thanks to the rising stock market and the strengthening economy. but at the recent miami boat show experts say the industry could be starting to face some waves. landon dowdy has more. >> reporter: the miami inteational boat show attracts marine enthusiasts from around

the world for a sneak peedu at the ry's latest innovations. and this year, a rising tide is lifting all boats. >> yacht sales and all boat sales are being driven by, ctain, consumer confidence, the wealth ef people just feel good today. >> reporter: the industry is entering its seventh straight year of growth. and though ghewth in t number of boats sold annually is ctually slowing the average cost of a new vessel is on the rise. consume remembers opting for bier boats and higher horsepower outboards. this brunswick 3'8" boston whaler yacht retails forlmost $1 million. it comes fully loaded with new smart boat featuresin allow boat owners to monitor things like battery charge and oil levels remotely. plus autonomous driving technology to help with navigationt sea. d docking ashore. >> nailed it. >> nailed it. >> reporter:or thosen the market for a boat or a yacht losely he stock market and there may have been some concern with the recent

volatility but it wasn't enough to teople away. >> technology is something that excites people and says i really got toet one of those. >> reporter: it is a not allab t giant yachts. torpedo's electric soutboard powered by solar panels on the dock offers stability. and for those in search of the right wave, this boat has a product that creates the perfect wave. >> our business really soared after the hurricanes that hitt the west cof florida here. and the other areas of the couny. what's more frustrating than worrying about your asset sitting in the waterou when have a hurricane bearing down on it. >> reporter: for some shipless cap on thes the lure oeathe will prove too much. follow hurricane katrina and super storm sappedy, builders dealers and marine industry

analysts say they expect insurance payouts for damaged boats to provide extra wind in sales. >> before we go, another look on the day on wall street. much calmer than monday or tuesday. the nasdaq was down 59, the s&p down seven. the dow down just nine points. >> that does it for "nightly business report." i'm sue herera. >> i'm bill bill. see you tomorrow. -- i'm bill griffith. see you tomorrow.

>> this is "bbc world news america." >> funding of this presentation is made possible by the freeman foundation, kovler foundation, pursuing solutions for america's neglected needs, and purepoint financial. >> how do shape our tomorrow? it starts with a vision. we see its ideal forthin our mind, en we begin to chisel. we strip away everything that stands in the way to reveal new possibilities. at purepoint financial, we have designed our modern approach to banking around you --