. this is "nightly business report withill griffith and sue herera.>> stocks plunged. the ten year bond yield hits 3% for irst time in four years sending a chill through the markets. as good as it gets, caterpillarereports good lts. the euphor vanishes after they say the earnings have peaked. retiring comfortably. many are worried they won't have enough to r on. this is "nightly business report" for tuesday, april 24th. > we do bid you good evening, everybody. thee bulls wwhere to be found on wall street today. industrial stock gotwhacked, technology shares got pummeled as high expectations turne into

disappointment. add to that the highest yield on the ten yr treasury in years and you had a recipe for a route. the dow industrial's off the lows down 424 on the close to 24,024. first five-day losing streak in more than a year, by the way. the nasdaqas offy 121 and the s&p lost35. bob pisani has more on today's selloff in the stock market. >> stocks started the day higher following a flood of earnings reports, but those gains quickly faded and there's four issues that are facing the markets right now. first is the debate about peak earnings.d is this as g as it's going to get? earnings will be strong through the rest of the year, but carpillar today said the first quarter earnings would, indeed, at the high water mark for the year. ropped caterpillar and the entire market in the middlth of morning. second, rates are creeping higher. the yield of the ten year hit

since the first time in 10 related to higher rates is concerns over inflation. several companies including caterpillar talked about rising commodity costs like steel and oil and several talked about higher wage costs. third, there's been some major resistance from momentum names, the big tech stocks and the fang names in particular. facebook, apple, amazon, netflix arand google,t of alphabet. all about 10% or more fromnthe highs. they've been down four days in a w for the most part. finally, consumer staples are hitting new lo a lot of issues for the market for "nightly business report," i'm bob pisani at the new york stock exchange. let's dig a little bit deeper into thedu rials. three major companies in that sector reported earnings, uniteo teches topped expectations and the company raised its outlook. 3m's earnings were in line, the

outlook not so great. caterpillar really set the tone. when its stock fell more than 6% its worse decline sin 2016. dominic chu has more details. >> a lot of today's weakness is being pinned on one company in particular, and that'srp calar. things seemed to be humming along just fine with them posting solid gains early in the sessio after reporting better than expected results and boosting its full year financial forecast, then its earnings cala kicked off chief financial officer put a little fear back into investors. >> the first quarter got off to a slow start for project spend. we expect the target investments for future growth to be higher over the remaining three quarters. the outlook assumes that first quarter adjusted profit share will be the high water mark for the year. >> in other words,he profits posted by caterpillar this past quarter could very well be the best resultsor we'll see fhe

remainder of the year. yes, the st is still bullish but the investor concern is that they may not see anything better any time .so those comments sent not just caterpillar shares lower but manyther industrial stocks as well. the biggest drags on the dow in addition to caterpillar were f whicl after it lowered its full-year profit forecast andac aero giant boeing which fell init sympathy wh the rest of the sector. boeing reports its results tomorrow morning. despitetoday's negativity, some experts are still feeling pretty good about the health of the overall market. >> we see that economic data is improving. earnings are still growing. valuations are still pretty . reasonab we come away bullish. you want to make sure that volatity isn't the newnorm. once you get past the n norm, things are pretty good. >> this may be the latest sign thatnd traders investors need to see much better forecasts before pushing stocks back towards record highs ama that

the babe higher for the rest of the companies who have yet to report earnings for the season. i'm dominic chu for "nightly business report." joining us is patrick chavanick from steeler crest asset management. thank youusor joining >> good to be with you. >> what do you think, have earnings peaked at this point? >> earnings potentially will come under pressure from rising costs. i mean, there are really two concerns here that i saw trigger the selloff. th first is that interest rates, ten year treasuryose above 3%. there are a lot of people out there who are convinced that low interest rates are what have buied this market. the market's in unchartered territory. the second is this concern about see tion, if we start to price pressures rise that puts a squeeze on margins. it also puts more pressure on interest rates to rise. and so it's -- it's really the

same things that t cause selloff in late january, whichc is cs about inflation and rising interest rates. >> all right. >> but i think it's offset by the fact that you do have pretty good economic data and earnings are up. they're at least coming in looking likhere going to be up more than 20% year on year. it's important to keep that in perspective. >> we've seen the ten year approach the 3%mark. a few days, it was kind of a foregone conclusion that we wouldn't get that 3% mark. perhaps it was the combination of that and the 3%. as we point out, thes economy doing pretty darn what are they to do in the market on inner day. volatili >> right now because of the downward pressure on the market over the last couple of months, the valuations in the stock market, how much stocks are priced relative to the earnings

that companies are making is at its lowestn point nearly three years. now if you think the economy's about to fall off the rails, either it's going to go into there's or it's -- going to be a takeoff in inflation, that might be a signal things are going to get wors i don't really see those things. i see inflation creeping up a bit and it's something to keep an eye onnd i see by and large themb economic s looking fairly positive, including new numbers which is really an indication of where the economy is going to be heading in the months to come. >> before you go, let me push back a little bit on your thought on interest rates and their impact on the stock market isn't -- don't you think there will come a time when the yield on the tenta year will to provide some competition from the yields in the stock market and that will havema proor equity investors? >> it really depends why a interest rat rising. if they're rising because inflation is picking up and the's the expectation that the fed's going to have to push back, that's a negative.

if they're rising because there is general confidence that the economic gwth willontinue and that's why interest rates are rising because stocks are actually -- the return of companies is actuall providing a competition for funds, that's a positive thing. so unless we see inflation, my money is the continuation for a positive story. >> again, thanks for joining us tonight. >> good to be with you. dow component travelere rted earnings that missed analyst estimates despite a rise in net income. the property andaslty company reported slightly higher catastrophe costs but also higher premiums and improved underwriting and lower tax expenses, netheless, the shares fell about 3% in today's trading session. coke has discoveredhat americans are still willing to drink soda after all. the dow component reported better than expected earnings and revenue in the most recent quarter and a big source of the company's growth came from soft

drinks, especially all those new diet coke flavors. >> we've been trying a few things on dietcoke. it's been a while since it grew. we've been learning and we've been learning what will engage existing or lax diet coke drinke andmillennials. we have something that's gotten their attention, the packaging, marketing, or the new flavors which are more millennial relevant. >> the stock was dn falling by 2% today. verizon was a bright spot is today'son as the number one u.s. cell phone carrier topped earnings estimates and added more new users than expected thanks to smart watches and connected rs, not phones and tablets. shares of the dow component rose more than 2%. one of the few components that was higher today. speaking of which, another dow component ibm said it is raising its dividend by 4.7% to $1.57 a

this is the third straight year they've increased the payout. it will beable on may 10the it is t to take a look at some upgrades and downgrades.aw home depotts rating raise to outperform at wells fargo. the analyst sees a strong economy helping the home improvemen chain. price target 2.05. off fractionally to 7626. >> bp was up from buy to neutral. the analyst cites the potential profitability. the price target is 54. ares of bp rose slightly to 44.24. still ahead, hitting the road in beijing. herhi in the sales of american-made cars and suvs are growing even though they cost thousands of dollars more than comparable models sold in the u.s. i'm phil lebeau in beijing. what happens if china changes its trade policy when it comes to autos? that story coming up on "nightly

business report." todayt the white house president trump and french presidentmmanuel macron vowed to seek common ground when it comes to iran and when president trump signaled the u.s. and france are close to reaching agreement to preserve the iran nuclear deal, oil prices fell. domestic crude settled down 1% to $67.70 a barrel.

the u.s. has until the 12th toe decide whe to quit or continue sanctions. consumeonfidence has been helping car sales, but automakers do find themselves caht in the middle of tariff threats between the u.s. and china. china has said that it pla to eliminate rules that would make it easier to build automobileso in that country while also threatening to double the tariffs on autos built in the u.s. and shipped to chin phil lebeau as you saw i in beijing i with more on what stake at the world's largest auto market.ve >> d around beijing and you see them everywhere, ndvs cars built in the u.s. and sold in china. teslas, edmerces, bmws, all popular in china and all facing a popular doubling of the tax chinese buyers may have to pay in the future. >> it'stt a p severe tariff, and the current proposed tariff ifle inted is going to

double that to 50%. now it goes from severe to much more radical. >> right now the bmwx5 built in south carolina costs just over $57,000 in the u.s. but the current 25% tariff drives the price up to $120,000 in china. a tesla model x built in california starts at just under $80,000 in the u.s. but sells for over $50,000 more in due to the country's tariffs on u.s. autos. tack on an additional 10 to i $20,000 china's auto tariffs were about to double, you can cseesumers may not be able to pay that much. s> i think a lot of buyers would say at t price i'll look at a locally produced model. that could be potentially german but perhaps more likely would be chinese. >> another factor for chinese buyers is the possibility the chinese government may actuallyi

lower not r the tariffs on autos brought in from the u.s. anse ere. meanwhile, if the u.s. raises the current 2.5% tariff on vehicles built in china and shipped to the u.s., like the buick envision, it could force automakers to rethink their business plans. the bottomve line is automaker realizes china and the united stes are the two most important auto markets in the world, and if arerade wars out, the biggest casualty could line. bottom in beijing, phil lebeau, "nightly business report." wynn resorts whose founder and ceo stepped down earlierr this year o allegations of sexual misconduct reported better than expected earnings in the most recent quarter. reasnue, however, a bit shy of estimates and the stock was choppy in after hours trading. contessa brewer hashe one key take away from wynn's quarter. >>h wl the upheaval wynn resorts has faced in the first

quarter, the biggest surprise is that it's hiking theivend by 75 cents per share. ontinue to d it can plan to open the resort prorty underonstruction in boston on schedule in the summer of 2019 despite all the talk of whether they might have to sell that pr erty. and consider all that's happened to this company in this quarter. it announcedourth quarter earnings january 22nd. shares spiked four days later a report came out detailing sexual misconduct allegations against ceo and founder steve wynn. signed, lawsuits are filed, three new women appointed to the board and shares are up 7.6%. r some comparison here, the s&p is down 5% in that same time frame. i'm contessa brewer for "nightly business report." eli lilly raises its full year outlook, and that's where we begin tonight's market focus. the drug mhaer said higher sales for many of its medications helped quarterly

profit top expectations lily said that it's optimistic that the product pipeline will fuel the next leg of growth. >> we had a very strong quarter with9% revenue growth and minus 5% on costs yielding a large beat and significant growth on the bottom of e income statement. the company's performing well against our priorities which start with launching new products. we've launched nine new products in the last three years. hope to launch six more in th y ner and a half. this is the beginning of a new phase of growth for us and driven by new innovation for patients with serious conditions. o> shares were down a fraction today $80.09. a rise in fighter jet sales helped lockheed martin. they raised their full years earnings guidance, but iestors were disappointed to hear that the company was maintaining its 2018 cash flow outlook. shares fell 6% to 336.49. d sales inched higher at

harley-davidson helping the motorcycle mer deliv an overall earnings beat. total shipments during that period didall but the company reaffirmed its expectations during the full year saying it sees momentum picking up in various foreign markets. harley-davidson shares climbed more than 2% to$42.01. sue? higher selling prices helped home sales and orders rose. that h prompted thee builder to hike the home sales guidance. shares rose nearly to $29.65. jetblue hadher revenues. revenue edged higher but not good enough to beat estimates. they expect a keyf measure its revenue to fall as much as 3% this quarter. shares ofetblue fell nearly 2% $19.53. freeport mack moran said it sees copperll sales g.

shares plunged 14% to $16.. and t majority of wells fargoho shareholders to re-elect the bank's board of directors even as they remain under investigation the government. investors approved the bank's compensation plan forex he can tifs. wells fargo shares were down to $52.51. we all know preparing for retirement can be stressful, especially if you have noton a good job of saving for it. in fact, a new survey outfi tod s that 26% of workers have less than $1,000 put ay at this point and as sharon epperson found out, that's not the only troubling finding. >> few americanre workers very confident in their ability to retire comfortably, and most san prep for retirement makes them feel stressed. according to this year's retirement confidence survey by

he employee benefit research institute, 45% of workers have less than $25,000 saved. % have saved between 25,000 and just under $100,000. 15% have $100,000 to $249,000 in savings and two in t report having $250,000 or more saved. these numbers include a worker's household savings and investments but n the valuef their primary home, pensions or defined benefit plans. the survey, which is the longest running of its kind, found 401kng retirement plan, a or ira makes a big differencemon thet of money workers have saved. 2/3 of workers without a plan have less than $1,000 saved compared to 10% among who have one. another major finding with this year's survey, six in ten workers who are confident about retirement overall are in excellent or good health yet less than 20% have figured out how much money they'll need for health car costs.

for "nightly business report," i'm sharon epperson. okay., wehat's scary. so let's talk about some strategies, shall we?ia chri weller joins us to talk more about retirement savings and why many americans are not comfortable with their retirement plan. he is professor o public policy at the university of massachusetts boston. welcome, professor.u nice to have ere again. >> thank you very much for having me. ow, but scary, you when i talk to people about retirement they say it's just overwhelming when they have to think about how much it's going to take them to retire. they don't even get to the point nking about e t health care. how do we change that dynamic? >> well, let's look at that scary number a little bit more, in particularly health care numbers. one in fourre rees, for instance, say the long-term care costs are larger than expected. long-term care costs as we know are overwhelming. speaking of overwhelming, saving for retirement, as you saids

sort of a big challenge. the good news in the report or survey, when people have a retirement plan at work, they feel more confident, they feel moreor coble. the problem is that at any point privateless than 50% of sector workers actually participate in a retirement plan at work. >> right. >> so that's sort of the entryp t. from a policy perspective, we need to do things to encourage more people to participate. now there is different ways we can do this. one would be asking -- encouraging, we have done this through the mplaw,yers to, for instance, automatically enroll every new he into a 401k plan, for instance. the other way is sort of what a californ oregon are doing, and that is offering a retirement plan that is separate from themployer andll the employer has to do, would be required to do is te a part of the payroll, deduct it into an ira andlo if the ee doesn't want to participate, they can opt out, but that has to be the

rst step. getting more people to participate in these plans. but, yeah, i thi about that old aesop's fable. the ant diligently putting food away while the grasshopper is playing the when winter comes the grasshopper is going hungry. aren't we just a bch of grasshoppers? we're not wired to think about the future when, in fact, well have these incentives and these retirement plans that are available to us, w don't take advantage of it. >> yes and no. i mean,ll the survey data, not just the retirement confidence survey, but also the datasets that we have from other sources suggest that people do pay attention, they are worried about retirement, they do wan to save. they find itpl c, perplexing but the problem is they have so many other uchallenges. ave to remember the typical worker's wages haven't risen at the same time costs for health care and for kids' education have gone through the roof. housing costs, rents, or

homeownership have gone up for the last seven years. >> i don't want to interrupt you. forgive me for that. what about people who don't have access to a 401k. quickly, what should they do? >> well, save as much as they can wherever they can. but, again, it depends on the personal situation. but ihink askingaround, finding ways to save. typically there are sort of tax advantage savings in individual retirement accounts world. i would only cauti to be mindful of fees if you go that route. but for a lot of people it's basically starting to build emergency savings. mean $1,000 in emergency savings, yes, that's not going to get you a good retirement, bu y it may give some piece of mind today that will allow you thoen plan for the future. >> ofessor, thank you so much. > thank you very much for having me. coming up, maybe you need a priceless antique. we'll talk about whyotheby's is taking ae page from

antiques road show playbook. sotheby's is breaking records in the spring auction market. the auction house is putting this modiglioni up for sale with an estimated value of at least $150 million. the highestlepre- value ever placed on a work of art at auction. the auction is next month. well, if you don't havenshe millo spend on an art auction like that, maybe you have something valuable in your home and youant to find out how much it's worth. now sotheby's can help get you an estimate on just about ything. robert frank explains for us. >> well, ifou're looki to find out how much that antique vase or painting over the mantle might be worth, sotheby's can lp. best known for multi-million

dollar picasso's and monets is getting into the estimate game through new chnology. customers can e-mail sotheby's a photo and brief description of anbject they want valued and the company will send an estimate or response within a couple of days. the program is just starting and sotheby's won't say just how many clients have submitted items orhat technology they're using, but last year it acquired a small artificial intelligence firm called thread genius which uses image recogtion and algorithms to identifyd objects values. it has specialists and expensive experts. eventually the algorithms can separate the treasures from the junk. for sotheby's it's a great way to find new business. >> if we can get more supply out of your vaults, off your walls into the market, liquidity goese up and will have the demand to find it. >> a couple recently sent company a picture of a chinese

ceramic they inherited from a relative. turned out to be from the ming dynasty. it sold at auctionor $3.1 million. another woman sent in a picture of an emerald ring she had and it sold at auction for 1.6 million. for "nightly busineort," i'm robert frank. >> wow. befo we go, here's a look at the day on wall street. the dow plunged 424in . nasdaq was off 121 and the s&p 500 tumbled35. on that note, that will do it for us tonight on nbr. i'm sue herera. thanks for joining us. >> i'm bill griffin. have a greatu vening. see morrow.

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