. this is "nightly business report" with sue herera and bill griffin. >> games fizzle. a 400 point rally in the dow loses steam late in theay as reports surface of a raid by the fbi on the office of president trump's personal attorney. facebook goes to washington. ceo mark zuckerberg will tell lawmakers the company made a big mistake as scrutiny on the social media firm intensifies. odds of an audit. some very good news for tax filers tonight. just days ahead of thene deadli those stories and much more tonight on "nightly business report it ismonday, april 9th. good evening, everybody, and welcome. well, it appeared as if stocks would start the week with a strong rally, but then late in the day that rally that propelled the market much of the day disappeared.

many traders point to a "new york times" report of an fbi raid on the office o president trump's lawyer michael cohen. uncertainty ke any for that matter and stocks finished way off of their highs. th dow added just 46 points to 23,979 but it had been up more than 440 points. the nasdaq was up 45 and thee sp 500 r 8. stocks are clearly sensitive to headlines be theyr political trade related making this market particularly difficult to navigate and invest in. mike santoli has morerom the new york stock exchange. >> reporter: for most of this year stocks have bee stu in a box. the s&p 500 has been darting rapidly day to day, but within a sharpl dined range. the bad news is, the index is now about 8% below its late january peak. the good news the s&p i above the year's lows set

exactly two months ago and has failed so far to breach that level despite several near misses. e market remains caught in no man's land by other measures. the s&p is almost exactlywe halfway b the high and lows and it's scraped against the 200 day ming average a few times which is essentially the line separating a continued up trend from a more damagin down turn. valuation is caught between expensive and cheap. the s&p 500 based o recast profit is downly significa from the lofty january reading but is exactly at the five year average. broader global economic conditions have gone from quite ho in the wakef the tax cut law to somewhat lukewarm as friday's more subdued jobs report showed. these mixed signals and jum volatility have understand bring weighed on attitude as it's gone tom extreme optimism heightened caution. it might be one factor along with oncoming reports of good growth and passage of time that

wall street strateg ts hope it will allow the market to start exceeding lowered expectations and rise to the top of the range or beyond especially if trade war rhetoric cools. for "nightly business report" i'm mike santoli. let turn now to david liebowitz for his take on the market. he's thehi global market strategist for jpmorgan. thanks for coming ck. >> thanks for having me. >> it's a very reflexive market. it must be difficult to invest,? >> it is. there's a lot of headlines and emotions. as we lookatt what can a pull the the market it's the firstow quarter . and in a world where the news has been pretty mixed as of late, we thi that profits could send a pretty positive signal as to the state of the u.s. economy. >> is it a global phenomenon, david? the global economy has been doing very erwell. >> itmuch is a global

phenomenon. the synchronized globa economic expansion seems to be feeding through into profits not only in the u.s. but also in europe, japan, the emerging world a well. we think again this is really a global phenomenon inupport of taking risk in things like equities all around the world. on earnings here in the u.s., who do you think will do well? give me sectors that wl be performing well. >> technology should benefit from a weaker dollar and stronger global growth. financials should benefit and we think thatnergy should benefit from higher oil prices which are up 30% on a year over year basis. >> you mention checking my notes the key things you're going to be watchingnclude how inflation reacts to all of the fiscal stimulus that we're going to get. we did get some numbers from the congressional budget office that told us something about whereth deficit was going to be and all the spending. so weigh in on that if you would. >> debt and deficits are definitely headed higher here. we think that could manifest itself in higher inflation.

the question is how does the federal reserve respo to that? do they respond by hiking rates and try to slow down the pace of economic growth or do they let inflation run high? i think they'll err on the side of caution. >> we haven't mentioned trade yet. you have to bef mindful though the tit-for-tat that's been going on between the united states and china. how do you view thatthen? is it an investment opportunity or not? >> to us we're really focused on separating the signal from the noise. we're focused on the actual policy actionsather than, you know, talk about the potential policy implementation. so we're focused on what the administration is saying -- excuse me, doing rather thanhe whatre saying as really a barometer of where the economy is >> but that doesn't mean and it certainly has proven in the last couple of months or so that we still have an increase in volatility because you see that disconnect, at least initially, between what is being said in washington and what is being done in washington.

>> exactly. so focusing on the real economic impact is going to bely particulimportant. at the current juncture we don't view that as being terribly significant butiously this is a situation very much in flux so we may just have to wait and see.y, >> by the speaking of inflation, you happen to think that the cpi report knenow shou be viewed more importantly than the jobs report, right? >> fs. i think t is looking at the labor market. they see the labor marked is at full employment.y we're rea focused on what is happening with inflatis as that seo be the missing piece of inflation. >> thank you, david. well, as bill mentioned, trade is still very much on the minds of investors and today in washington the president's chief economic advisor made itlear that he thinks china is to blame for decades of trade misdeeds. >> i don't lik blanket tariffs, you all know that, but i've also talked for years aboutow china is getting away with stuff they shouldn't get away with. so thi president' got the

backbone, right? others raising the issue in fu publ view and setting up the process that may include tariffs, may be negotiations but you can't ruleny of that t. i don't think this is damaging the market at all. >> as we reported, the trade rhetoric ratcheted up with both sides threatening increased tariffs. over the weekend some administration officials softened the tough white house stance saying there is still time for a dealo be worked out. however, china is not ftening its stance. in fact, beijing's trade talk is gettin even tougher. eunice yoon picks up the story there tonight. >> reporter: the chinese government signaled a shift in its position on the ongoing trade dispute with the united states. the foreign ministry today said under current circumstances it's even more impossible for both sides to negotiate with the

china/u.s. trade dispute was caused by the u.s. and. the u bears the full responsibility for it. the u.s. is carrying the big stick of trade sanctions and they want to negotiate. s thekesperson wasn't specific about how the situation needed to changen order for the chinese to engage the u.s. in talks, but this is a much harder line than what chinese officials have been seeing in the past few weeks. just a few days ago the vic finance minister told meha directly tt the chinese are open fors negotiatind that they would welcome u.s. officials like treasury secretary steven mnuchin to china. this is also a significantly different tak than the trump administration. just yesterday president trump himself tweeted, china will take down its trade barriers because it is the right thing todo. taxes will become reciprocal and a deal will be made ontu intell property. commerce secretary wilbur ross has also suggested that

trade dispute would ultimately end in negotiations. we're going to hear more from the chinese side when president xi jinping gives an address at business forum tomorrow. he's expected to present himself as an international states man, a defender of globalization and also his speech i expected to be friendly and about economic liberalization. at the same time, most observers believe that president xi jinping won't want to prent mself or china as one that is giving in to u.s. pressure. r "nightly business report," i'm unit yoon in beijing. as china a the u.s. go back and forth, regional economies and local are trying to figure out just how much financial pain they may have to endur if the threat of tariffs turns into a reality. brian sullivan reports tonight from charles ton, south carolina. >> reporter: the difficulty in talking about tradects that it im every segment of the economy. in fact, 26% of the american

economy at some point comes through a u.s. seaport. like this giant containership behind us probably carrying $1 billion worth of goods on oneship alon there's so much going on he, they're getting a 5$500 million project. >> the big trend is handling big container ships.g we're tryo raise our cranes, deepen our harbors and straighten our wharves and deepen the capacity. >> savannah, jacksonville, florida, and the port of new york have also invested more e sure2 billion to m that the big ships can reach them as well. but trade and tariffs impact more than just infrastructure projects and corporations. 6 in nearby holly hill,outh carolina. >> deion: hutto is a fifth generation farm. 100% of his soy bean crop ships out of e port of charleston.

for him the tariff would not only hurt his bottom line but also his community. >> if we don't have that 25% in our pocket, we can't put it in the next p person'sket and that's the trickle down effect on, you know, anything from -- from hardware store or the grocery store, so forth and so on. 25%, i'm going to have tout 25% of my spending and i'm just going to pass that on dn the line. > the schooler company which buys and exports agricultural products including sis beans says clients are paying close attention to the tariff tit-for-tat between thend u.s. china. >> soy beans have been a bright spot in avag so to hthem be cut would hurt profitability o fa farmers. a bean is worth $10 a bushel. you put a $2.50 tariff, that will get their attention. cause for pause. it's created a lot of anxiety in

the ag business. >> reporter: for now many are weary but not yet worried. it's a complex talk but whether a fivetalking about person family farm or a billion dollars in goods on a giant containership coming from asia, one thing that's not up for debate is the siz and magnitude of the discussion. for "nightly buness report" in charleston, south carolina, i'm brian sullivan. time to take a look at some of today's upgrades and downgrades. morgan stanley is raising its rating on m generors to overweight from equal weight. the analysts citeru infraure bill which theoretically could increase sales of pickup trucks and that could lift earnings. price target raised to $48. the stock closed up a fraction 37.83. intel has been named evercore's best idea. li they cite the valuation, vidend yield and risk/reward. the price target was raised to

$60. it raised to 49.55. comericaoutperformed. they say that they're the best rising edback in a interest rate environment. price target was lifted to $111 a day. shares wereigher at$95.55. still ahead, why despite all of last year's bad airline headlines the quality of service is soaring to new records. the country's budget deficit will surpass $1 trillion by the year 2020 accordingew to

estimates from the congressional budget office. the deficit will rise 20% from st year and that is partly because of the new tax law the d late last year and funding measure to increase military and domestic spending which was approved in march. the csumer financial protection bureau may fine wells fargo as mh as $1 billionor alleged abuses that took place in its auto insurance age mort lending units. according to reuters, the fine would be theirst since mic mulvaney was named interim bureau. of the they fined wells fargo 100 billion back in s tember of 2015 to settle the bank account scandal. facebook ceo mark zuckerberg will testify o capitol hill tomorrow and on wednesday on the data mining and privacy scandal his company is facing. he made his way to washington a day early to meet privately witk las. kayla tausche has more. >> reporter: mark zuckerberg brought facebook's apology t r to capitol hill monday

trading as signature hoodie for a dark gray suit he met one on one with the top lawmakers on both sides of the aisle of the two ring to ommittees pre grill him on tuesday. >> the message i wanted to convey to him, that if we don't rein in the misuse of social media, none of us are going to have any privacy anymore. >> reporter: it's the 33-year-old's ceo's first visit and comes after the company comes under fire to how susceptible they are to breaches. the prepared testimony includedy a lengt apology and a pledge to take tougher action going forward even if it means losing money. saying i oe directed teams to invest so much in security on top of other investmen we're making that it will significantly impact our profitability. heaid there would soon be 20,000 people at facebook working on secloity though this week all eyes will be on the man at the top of it all. for "nightly business report,"

i'm kayla tausche in washington. novartis begins to bet big on gene therapy. that's where we begin tonight's market focus. in its second gene therapy deal thisth yeaswiss drug maker said it would buy biotech for $9 billion adding a drug for spinal muscular aophy to its pipeline as a result. novartis said it would put a damper on poor operating this year and next and it expects results to accelerate in the20 year novartis shares rose to 81.07. shares of avexis rose to $210.40. merck said they would look at keytrued da. the medication has been used to treat a specific type of lung shares rose 5% on the news to

$56.16. e continue with more upbeat drug news. the experimental rheumatoid treatment met alloaf the during a trial including reducing the symptoms of the disorder itself. w share up a fraction today >o $90.48. sue? bill, viacom has reportedly asked cbs to raise its takeover offer by nearly $3billion. they have asked an amount that would value it at $3 billion. the redstone family which controls cbs and viacom separated the two families back in 2005 and has been pushing for the companies to merge once again. cbs shares were up a penny to $52.85. shares of viacom rose to $30.97. theonomerate luadia said it was selling the majority of itt and auto dealer businesses and changing its name to jeffries financial group.

it's meant to narrow the business's focuses to fancial services. they doubled the share buy back to 25 million. sh shares climbed more than 11% to $24.29. the propose$60 million deal by bayer and mon been blessed. they say bayer has agreed to sell additional seed assets and make concessions to satisfy the anti-trust concerns. shares of monsanto finished up 6% to 5.$125 veratone is being taken prate for about $2.5 billion. shares of veratone soiared 50%. in case you hadn't noticed, gasoline prices are on the rise.

the average price of regular unleaded is u c 8ts a gallon for the past two weeks. the increase was driveny primarily rising oil prices. the highest price in the contiguous united states, $3.63 in san francisco. the lowest at baton rou at $2.37. well, in a year marked by a string o high profile airline incidents, it may come as a bit of a surprise that a new survey found service across thein stry soared to a record high. which airlines flew highest in quality rankings? phil lebeau has the results. >> reporter: with a record number of people flying in the u.s., a new study says those travelers are getting treated better thanever. baggage handling mistakes in a record low last year. so did the nplber of p bumped from over sold flights. >> i would have to say overall at the airline experience is getting better for most people although there are still people that are disappointed. >> reporter: frustration that boiled over leading to

passengers f clashing withght crews. last year there were several high profile incidents iluding a passenger being dragged off a united flight in chicago. more complex fees for where to sit and what service to receive in flight and you see why many people think flying is a miserable experience. >> a lot of the complaints we f gem consumers are about the pricing ructures. keep in mind most people don't travel all that often on the airlines and the oasional traveler is very frustrated by all of this. >> the top airline fd a sec year in a row was alaska edging out delta and jetblue. by comparison, express jet, frontier, and spirit were the worst in the airline quality rating. one reason spirit was last was because the complaint rate is higher than other airlines. the complaint rate is actually improving and it believes this study fails to give the airline

credit for offering low fares hich are popular with spirit travelers. phil lebeau, "nightly business report," chicago. having ag up, why conversation with your kids about money could really pay off. so have you filed your taxes yet? well, if the answer is no, you have a few more days to getne those and the good news is that the odds of getting audited are the lowest they've been in years. robert frank has details. >> reporter: the irs will receive over m130lion tax returns this year. the good news for taxpayers, fewer of them will be audited. cuts to their staff have meant fewer auditors so your chances of being audited have dropped dramatically, especiall for the

wealthy. in 2011 the irs audited 13% of returns for those filers who earned 1 million or more. lastur year that f dropped to just 4%. those who make more than 00 $200 have seen their audit chances drop from 4% to 1%. thisarks a sharp reversal from the irs under thebama administration when the group formed a global high wealth group to target companies that used companies to avoid taxes. audits jumped 50%. recent history. lowest level in because of reason is cuts to the irs budget which has cost the agency between 4 to 8 llion in uncollected taxes. the wealthy still pay the vast majority of taxes. in 2018 the top 20% of earners are expected to earn about hal ofnation's income but will pay 87% of the income taxes. the bottom 60% of americans will

pay no net federal income taxes. for "nightly business report," i'm robert frank. and finally tonight, did you know that having money conversations with your kids or grandkids at a young age can he prepare them to make informed financial decisions when they're older? well, a new study found that the money lessons that they learneds from their par may be more beneficial from what they school's n their personal finance classes. sharon joins us with some tips on h to approach that. >> good to see you. >> that is easier said than done. >>. a lot of us want to have a conversation with our kids. start.'t know where to we don't know what to share with them or whatnot to share with them. we y, they'll get it in school. some schools are good and they are offering them some financial lessons or evenso a pl finance class requiring that for high school graduation, butt varies so dramatically from state to state. only 17 states require a high school graduate to have taken a

s.rsonal finance cl there's a lot that needs to be done at home. we can't leave it to the schools.he >> what are likely to learn in a personal finance class? what are the goals they're trying to aceve? hey're trying to help them create a budget, save efficie tly, h retirement account. when they have this class in school they are much more likely ,to do th to have an emergency fund, to put that money aside or know that they should for retirement, but the numbers increase even further when they've actually learned that from their parents, when they've seen their parentsr do it talked to their parents about it. >> right. >> they're more likelyao hav budget or have emergency savings or know to put money in are rent account. >> i think after the 2008 financial crisis when a lot of families were struggling, when the stock market portfolios went down, when the v aue of house went down, i know several people personally who had to have hard coersations with their kids fd that's more valuable than

what you can leam school. >> absolutely. what it's shown is that these conversations shoul be done at the very last minute. we're going to sit down and tell them how t t manageir money and send them on their way. it has to be something that happens along the way and that it's talked about from your ct perse. whether that's going over your pay stub so they understand how all of thatks when they eventually get their paycheck or whether it's having ait conversation them about having to not have it right now but you'll get a little bit later, delayed gratification. >> workinghard. >> difference between what you need and what you want. >> what you need and wt you want, exactly. >> but i think it's important that they see how you manage anney, not what you tell them to do abouting money, right? >> exactly. exactly. and as kidsre becoming much more technologically savvy, show them the app they c download or the websites they can go to. one be of my son's favorite ones is a coupon site. if he tells his mother athere's coupon for t he's more likely to

get it. >> the kids have to show me where the apps are. >> yeah. i'm with you on that. >> sharon, always great to have you. >> great to be re. >> sharon epperson. >> before we go, look at another wall street. a lot of volatility. the dow was up more than 400 points uil word got out about the fbi raid of attorney michael cohen's office and the dow finished up 46. the nasdaq gained 45, the&p up just over 8. that will do it for us tonight on nbr. i'm sue herera. thanks for joining us. >> welcome back. >> gat to be back. >> i'm bill griffin. have a great evening. see you tomorrow.

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