♪ ♪ this is "nightly business report" with sue herera and bill griffith. ♪ tech tumble. the -htechnolovy nasdaq falls again on pace for its worst week in nearly half a year. the impact for the rest of the mahaet. careless, why hackers could see dollar signs when employees ve into gossip. it's kickoff time. the nfl season gets under way tonight, butas the league tough issues to tackle. the state of the $15siillion buss. all that and more on "nightly business report" september 6 ♪ ♪ >> good evening, everyone, and welcome. bill has ts evening off. make it three straight down days for the nasdaq and it's on pace for its worst week since march

and while normally that's not a big deal for the index, consides the nasdaq is loaded with tech companies and techakes up more than a quarter of the s&p. so when the nasdaq umps, the market feels it. tonight, semiconductors were thi cu after several warnings about demand in the chip market and with that, many of the big names plged, as for the rest of wall street, the dow rose 20 points to 25, 995. the nasdaq dropped 72 or nearly 1% and the s&p 0 was off ten. and not helping the nasdaq today, facebook and twitter both down sharply and that slide follows yesterday's drop as they testified on capitol hill. the big concerns the fallout following those hearings. blia boorstin has more. >> theig question for facebook's sheryl sandberg and jack dorsey. it's looming for their platform

and they faced questions for the senate intelligence committeed ane senate manipulation. dorsey was grilled by the house energy and commerce committee about whether twitter is biased. kathy mcmorris rogers was saying she's concerned about discriminationgainst conservatives and want to see change. >> we need to see them take some acti to ensure tha it is fair and that it is free and that we are having that- that battle, the battle of ideas that needs to take place in the public square, but have it done in aee nd fair way. >> the question is how ty impartian these platforms could be regulated and enforced, and oversighteay not just c from congress, but also the department of justice. >> sayinghe quote, attorney general has convened a meeting with a number of state attorys general this month to discuss a growing concern that these companies may be hurting competition and intentionally stifling the free exchange of ideas on their platforms, but when looking at the innovations of facebook and twitter along

with google and snapchat, the chiefff technologyer and these companies should have a chance to self-regulate.re >> ly, i viewed the hearing is to prior tiedz up the ladder. egdustry selfation and i think you'll see a lot more activity on fake accounts and on ethical guardrails on artificial intelligence and on new models of consumer transparency which don't need new regulations, really need the gndustry toet their act together. > sheryl sandberg saying she believes regulation isab inevitle and she hopes it doesn't squash innovation. i'm julia boorstin in washington. >> even with the slide happening with technolog our guest tonight sees more upside in the market. joining us is tony dwyer, chief maet rategist. it is always good to have you here, tony. >> thanks for having >> let me start with tech because that's where we just left off. a two-day sndmp in some cases for some -- maybe -- wow,

that's what i want to talk to you about. some of the moves, though, in those stocks have been pretty violent to the down side you don't see that as an issue. >> well, they were violent to the upside, like, for example, if you look at appl it was very extended. these stocks have gone up over 20% and at some point you are going to run out ofan buyer that doesn't mean anything has significantly changed on the fundamental t basis andre's slower demand when you're in the trade war rhetoric and ulnmately it comes d to what is the business and what direction is earnings going and that should still be significantly higher. >> so if you're a long-term investor, the question you isbably have to ask yourself if you want technology in the portfolio, do you fee confide enough that a long-term investor could step in and buy some of these names? i do. what's important to remember and i will break the cdinal rule of strategist and simplify it. we sector of the market as a whole, movesh the direction of earnings. so to really be negative and

want to be out of either the sector or thearket as whole, you have to want to think that we're going into a recession, and i don't think anybody believes that we're anywhere near a recession given the consumer confidence, the business confidence and 25% earnings growth in irst two quarters of the year. >> another headwind facing this market. the midterm election. there say lot of turmoil on in washington and the midterms may increase volatility in the market. would you agree with >> i honestly think it is the fed increasyg volatiln the markets and the politics have to cycle in and cycle out andg the thhat shuts down economic activity and the viewers know this is when they don't have income and when they can't get credit. >> right. >> the fed drives those t ings and the fed is trying to slow things down a little bit because the economy's running pretty strong right ounow, but still have a full employment picture. the economy's doing well. the global economy is risky, but the u.s. is d,ng we and i

really want to remind everybody that that's what youan really to focus is the direction of earnings and the direction of credit and bothre still pretty good. >> you see another probably 5% to 10ef in the markete the end of the year. as a result of that are you taking less exposure tog emergin markets or global markets? >> it's really interesting. when the fed started to really raise interest rates which means they'rerying to take some money out of the system. >> that spelled a period of volatility for us in the global markets. when every global central bank is pumping money into the market, ocourse, the smallest and most exciting economies are going to do the best. when we're taking money out of the market it will get more volatile. that volatility has happened and you're down0% inany of the local markets and now is want the time to get cautious on it. that was back in december and january. >> all right. so bet on the u.s. >> tony, thank you so muc >> great to see you. >> a pair of economic data points were out today in the

laborth market. payroll processor adp says private companies added 163,000 jobs last month and that was below eectations and well off of july's number of 217,000. the august report is out tomorrow and during the last year of august is filing for oy unemnt benefits fell to its lowest level in half a century. jobless claims were a proxy for layos. last night we told you cbs was to end their litigation. today cnbc's david faber repo sed citingources that the board of cbs is deep in settlement talks with ceo les moonves that could result in his exit from the company. discussions are revolving around moonves' pay package. while under contract moonves gets $180 million in severance and the board is offering $100

million made up entirely of cbs stock and some depending othe results of the ongoing investigation on the charges of sexual harassment. the justice department is looking into wells fargo's retail banking unit and whether employees in the unit committed fraud. "the wall street journal" says thestigation focuses on employees altering customer einformation. ank is still feeling the effects from its fake account scandal from a few years ago. and ten years ago as the subprime mortgage crisis unfolding, mortgage giants fannie mae and freddie mac were bleeding cash so the government bailed them out and took themhe over andre still there. what next? diana olick is looking at the biggest takeover in hiftly and what it means for the future of home loans. >> fannie mae a freddie mac don't make mortgages. they're packaging them into

guaranteed securities that investors buy. that's how lenders get money to people who want to buy homes pain dece ago, fannie and freddie owned or backed 40% of mortgages outstanding and when the housing market crashed the two be goon bshed ca so the u.s. government bailedem thut and then took them over and putting them into so-called conservatorship. it was said to be mporary, but they are still there today. >> what the government did actually worked. fannie and freddie kept backing loans. people kept buying mbf and fha expanded like it was designed to do. everything worked and the housing crisis that people said could last for decades lasted several yearsnd home prices quickly started to regain value. >> underns vatorship, fannie and freddie drew money from treasury, but were and are required to pay any left to the government and ten years later, uncle sam ishe reaping

rewards. >> fannie and freddie together drew $141.4 billion from the treasury, but so far have paid $279.7 billion, a net profit of 88.3 billion and they continue to pay. some argue that profit i part of why congress and the administration have done very little to reform the nation's mortgage system. >> the problem is if the syste works well enough then nobody is willing to take the politingl risk to c it. if you look at what's coming up in the next two years. we have a p sidential election in 2020. the idea that the trump i administrati going to tinker with the housing finance system 18 month, 12 months before voters go to the polls. we just don't buy that. and the mar nt today ishing like it was a decade ago when lenders very nearly shut the door to anyone, but the most pristine i borrowers. was probably the most trickiest time for myself and

the mortgage business and virtually for all loan originators. not only were we having to balanc helping borrowers trying to get their homes and regulations and licensing laws and it was a time in the marketplace. >> especially in such an expensive housing market with rising interest lates. uponders are starting to offer more innovative mortgage products, but there ine big difference. borrowersncust show theire and prove they have the ability to repay the loan. for nightly businessre rt, i'm diana olick in washington. >> coming up, feeling the sting of tariffs. >> u.s. sports revenues represent about a quarter of american gdp and tariffs on theg table, shipp volumes are down.'v e got the story coming uinon "nightly bs report." ♪ ♪

chinaays it's ready to retaliate if the u.s. imposes fresh00 tariffs on billion worth of chinese goods. today marks the end of the on-calledltation period for those new tariffs meaning they could be announced as early as this week. the new taxesould be as high as 25% on some products. the national retail federation and 150 other organizations urged the u.s.de t representative today to avoid further trade escalation with china. one place tariffs are already being felt, the nation's port. jackie de angeles explains from new orleans. about a quarter of u.s. gdp is tied to trade. that includes the ports, railroads, pipelines, farmers and truckers who depend on it. he at the port of new orleans, imports represent more than $50

billio tariffs are making a dent. in the first six months of the year,import volumes as a result of steel tariffs are down 25%, adnu in alu and you're looking at 30% and it's not just steel or this specific port. in milwaukee it's agriculture export.ma in ala it's steel and agriculture and here, add ,poultry and po as well. as the negotiations continue and as items are addedo the list by both sides, the concerns are growing. kurt nava, the president and cee ofmericanon associati of port authorities says retaliation is an issue. >> the tariffs that have been announced already account for about 10% of the total value of the tgde that's mov through america's sea ports. so that could obviously continue to escalate,ut even at 10% it's a significant impact not just on the tra t movinough our ports and ultimately to folks like truckers, railroads and warehouses and other parts of the supply chain. >> and there's anoth impact, investment in infrastructure. the port directors we spoke to

said business is declining because of tiffs so there's less money to work with than steel, the element needed to build is seeing in priceea ins because these products could suffer ashey're making itxtremely difficult. >> it would impact the facilities that are necessary and specifically related to some of the tariff items on china can impact thety abi to bring increased size container cranes into the u.s. ports to be able to handle the increasing size of vessels. >> then there's the entire supply chain. a major trickledown effect. barge, rails, trucking, manufacturing, 23 million u.s. jobs are supported by cargo port. through the here in new orleans, no layoffs have been made, but it's been licate in terms of a balancing act and as tensions escalate, lot is on the line. for "nightly business report"

i'm jackie deangeles. new orleans. >> the justice department charged a north korean national for e 2014 cyber attack against sony pictures and last year's ransomware aack that infected hundreds of thousands of computers around the worldin uding the uk's national health service. the fbi says the hacker was allegedly working with a company affiliated with the north korean government. and that attack on sonyse rel some embarrassing e-mails set from top executives athe owany and the compromising info is n becoming big business forackers. andrea day explainses. >> before you send theutasty te the co-wokker or dish the dirt about your boss,isn to this. >> employees are not fully aware, but in some cases the organization inot fully aware of how harmful and how impactful this information can be. >> cybersecurity pros say office gossip is now a big target for hackers. >>ly is america's chief security

officer for palo alto networks. especially if and their personal brand are what the company is being looking to protect. >> no smaller large company would want that information leaked out because there's a lot of liability and legal exposure >> george kirk says criminals are huntsing for compromising info that they can use for blackmail, hacking into company e-mail, chat logs and texts. >> it's no longer just a random act. it's no longer fishing and hoping that you catch something big. its having targeted now. >> it's the t latestst in ransomware, where criminals lock up your fe until you pay and this woke they threatened any juicy data public. will the crimils lookor anything embare assing, it could

be health issue, it could be hr issues d andesticing to a company. >> in some cases theou c be digital photos from your individual private life that ar on your corporate machine. >> take a look at this ransom note sent out to firms targeted in germany. it says they'll expose private data including pick ttures and videos for the world toy so. some organizations just pay up. >> how much is at stake?on >> bs are at stake. if you look at ransomware it is a multibillion-dollar problem. a pblem that reached record levels last year according to security form semantic and it is a major risk with criminals f h focused on this very targeted attack. >> what can you tell employees. >> clicking on links and going to places they shouldn't be going and if you're going ton write thattive e-mail and the juicy gossip in thece offic.

ainly don't put it into anything that might be written and the could be used against >> you. hould you pay the hackers to keep secrets. >> experts say it's a catch 22 and you'll never know for sure, yand they'll hit up for more money later. the advice is to bf up security before you need to make that decis dn. i'm andrea for "nightly business report". >> g3 apparel blows past expeeations and that's where begin tonight's market focus. the owner of dkny says strength across the portfolio of brands with the stronger than expected rise in earningsndt expect customers to remain in a buying mood and it raised its outlook for 2018 and it rose to a decline in same-store sales contributed to a larger than expected loss at barnes & noble. the bookstore chain said some of the weakness in the quarter t w du what it called a major glitch on the website.

barnes & noble also said it would be ginn its search for a new ceo after the shareholder meeting next month. it was off for $4.55. they've accused consumer protection laws by engaging in a deceptive nationwide scheme to drive profitsth ities allege the company which makes the powerful opioid, to target patients who didn't need the treatment. maryland m is seeking $20lion in damages. shares of insispe theics fell to $10.10. ford is recalling f-150 pickup trucks on concerns that a seat belt malfunction could start a esre. the recall appo the model years 2015 to 2018. ford said the device that tightens in the belt during a crash can generate sparks when they deploy.

ford fell to $9.43. >> saudi arabia's aramco is thinking of creating a $1ll n venture capital fund that would invest in international tech companies. it's an effort to diversify its economy. the dow jones says that fund would invest in technologies to complime the company's operations. another company in the region is undergoing a transformation, egypt. the country is building a new multibillion developn the outskirts of its capital, cairo, gandet this, it is roughly the size of singapore. >> ashley gamble takes us on a tour. >> to the pyramids, and when it comes to mega projects. now the lates a multibillion development on the outskirts of cairo promises egyptians a better life and a better city, but f a price.

>> it's a new cap oal city carv of thet desr egypt. he doesn't need anything, but it is set forompletion in 2019, and the biggestal cathe on the kontent from africa. >> did youhink this is crazy, it can't be done? >> yeah. with this huge space, more than 175,000 acres and i mean, it's for the double of cairo. c over 22 million people in the growing capity is plagued by overcrowding, pollution and seraingly endlessic jams. the new capital promises all of the benefits of a smart city, electric powed mass transport and wireless connectivity. >> you have apartments and

separate villas. >> exactly. call it residential 3 or r-3. >> okay. >> it contains 25,000 in the unit. >> 25,000. >> that's a lot of people. >> yeah. >> i wanted to move one minute away. >> talk to me about the price point. >> it's suitable. >> some are making planlans for the move startinging at $55,00 and that leaves the majority of egyptians out. >> you may wonder how the government plans to pay for it all, it is run by the administrative capital for urban development and it's 55% contlled by the egyptian military and the 45% by the

housing. they had over $10 billion u.s. and this project to completion could cost over $30 billion. there's no budget and they're tepecting the pri sector to pick this up. or nightly business report in darrow, i'm ashley gamble. >> it is football season and eric chumm sred a plum assignment. >> the nfl season kicks off tonight in philadelphia where the super bowl champion eagles when we come back, we'll talk about the business of football and how it's doing. ♪ ♪ are you ready for some football in well, tonight the nfl kicks off bowl champion philadelphia eagles taking on the atlanta on fa but while tens of millions of fans are ready for

the new season the multibillion league is grappling with some challenges. eric chemy has more from the city of brotherly love. ♪ ♪ it's a new season for the nfl, and befoream any have been played the league is already battling a barrage of attacks to its sport. in two years tv ratings have declin 17% and experts are afraid it might get worse in 2018, the national anthem saga has gone well beyond the football field with controversial quarterback colin kaepernick becoming the face of nike. player safety continues to hang a cloudver the league and a new move desucned to rede njuries have caused more confusion among players, referees and cches. despite the negatives, weak executives remain optimistic. >> i actually am very bullish on the nfl and i think our best days are ahead of us. if you think that business fundamentals, whether you

measure that by revenue growth or whether you measure that by fan growth or television ratings, it is still heads and tails above anything else you could get in the media world, and i think that's a strong characteristic. >> another area the league is looking at,h the grof legalized sports gambling as a way to increase fan engagement, up revenues and open up a new tegory of sponsors. >> on the longer term scale, the cifootball partion is declining across the country as kids find other interests and hthers are shrinking or outr shutting down. >> everybody is hearing the concerns and everybody understands the rnd there's an inherrent troifk play the game of football. what's the rig wayo do it so we can continue to grow our sport because it's unique, it's different and special and provides people with opportunities they would never get otherwise. >> one maj tailer, dick's sporting goods said football is a struggling business and they're focused on soccer and

baseball ahead. the ninth grade team, we have 15 kids at one point and we went tt recruiting and we should be able to feel them and hopefully we'll be successful and we should feel it. >> on opening weekend, for nightly business report, i'mer chem ney philadelphia. >> and that is nightly business report for tonight. i'm sue herera. than for joining us. have a great we'll see you right back here tomorrow.

>> this is "bbc world news america." ntationing of this pre is made possible by the freeman foundation, kovler foundation, pursuing solutions for america's neglected needs, d purepoint financial. >> how do we shape our torrow? it starts with a vision. we see its ideal form in ourth mind, and we begin to chisel. we strip away everything that stands in the way toeal new possibilities.

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