this is "nightltly business rert" with sue herera and bill griffeth. stock routes. the dow tumbles 600 points to start the week as the wave of selling spread from one sector to the next. tech wreck. apple tanks and brings the of the sector down with it. what will it take for tech to regain its footing and what happens if it doesn't? california burning. fires are spreading, cost estimates are rising and statei ies are coming under scrutiny. those stories anduch more tonight on "nightly business report" for this monday, november 12th. g, good even everyone, and welcome. it was an ugly day on wall street. stocks fell hard, led lower by a sell offin technology, but there was more to it, a lot more. the declines quicklypread

throughout the market and the end result was a broad selloff that took dn just about everything. let's get right to the final numbers for you. the dow jones industrial average slid 602 points to 25,387. the d nasdaq wasn 206 points or 2.8% and the s&p 5 fell 54. boisani reports from the center of itll at the new york stock exchange. it was a sea of red today on wall street with the dow plunging more than 600 points. the markets are boxed in because they're worried about global liowth and the federal reserve. today's d in tech can't be blamed exclusively on apple. there was supplier, lamentum that reduced their outlook. th cited reduced shipment requests from one of their biggest customers.ne everssumed that was apple. fang names like facebook and amazon were down 2 to3%. the industrial energy sectors were pointing to a big problem. u.s. growth seemed thstrong,

's good news, but the global growth picture in europe and china is generallyer we another problem is the strong dollar. with the fed raising rates,rr s about italy, the u.k. leading to a weak euro. china slowdown concerns, that's all pushing the dollar up. the dollar in turn is hurting commodities. double digit declines this year in copper, aluminum and lumber. global slowdowns. relint d in oil we've seen is being blamed on over supplies. so the bottom line is this. there's lots of global growth and what the fed's going to do in 2019. fornitly business report," i'm bob pisani at the new york >>ock exchange. bob just mentioned apple which got a lot of attention today from investors. the stock fell 5% making it one of the worst performers among the dow 30 components. josh lipton takes a closer look at why there is so much focus right now on the largest u.s. publicly traded company.

>> reporter: worth nearly a trillion dollars, apple is the most valuable public company in the world, but today its stock got whacked on news from one of its pint sized suppliers. lumentumlashed its second quarter forecast saying that a large customer cut orders. now it didn't name that customer, butes irs drew their own conclusions as the small laser maker' technology enables the iphone's face i.d. feature and that caused new worries about the health of apple's bread and butter, its iphone franchise. in thet pas apple ceo tim cook supply asized that his chain is big and complex. his point is that it's hard to extrapolate trends from just a hand full of data points. in other words, it's not ju lumentum that apple relies on other companies like finesar and two six. analysts estimate that those companies account for 50% of

this critical laser technology to apple. bothompanies also traded lower today. still, they came out in force today saying this news reinforces their view that iphone shipments arein declg. even bulls on apple like jpmorgan are now forecasting year over year declines in iphone shipments. on the other hand citi's jim suva says this lumentum news said he was never jumping on these in the time ahead. he's focused on how much money apple is making on each phone that it sells. >> we believe the average lling price are going to be bigger than expected and with that comes the opportunity to have more profitability. the costs sold are the memory costs known asnan and d-ram keep falling. on the same given unit apple will make more and more profits to drive more revenues and eps and cash flows. >> reporter: that bullish view

was in short supply today, however, and is been a tough couple weeks for apple since they last reporte results on november 1st. its stock is down more than 10%. fory "nighsiness report," i'm josh lipton, san francisco. it's not just ple. investors are also concerned about the threat of potential regulation on internet companies, something we've been telling you about. and that's just one of the concerns that drove media stocks lower today. julia boorstin picks up the story from there. >> reporter: social stocks struggling today as investors continue to question the long-term potential platforms whose user growth is stagnating. snap shares endingnhe day dow over 2%. today the company losing yet another senior executive. vp of content nick bell. oversaw all of the partnerships snap has with media companies which has fueledhe owth of snap chat's discover section. bell is just the latest in a series of executive departures and changes at the top. facebook shares losing nearly

2.5%. the company saying it's partnering with france for a six-month investigation into hate speech on the platform and how to preventit. winblad is saying this is one of facebook's myriad challenges. >> facebook is another story. facebook has trust issues.we e talked about that in the past. they have saturation. they have revenue per user y issues and the can't seem to come up with an encore, either to their trust issues or to products them tlves. >> andtter also facing concerns about the spread of fake news and hate. spee its shares losing 6% giving up some of its gains following its earnings report last month. for "ghtly business report," i'm julia boorstin in los angeles. let's turn to paul meeps to get more on the selloff and what it means for the overall market. paul of course is lead portfio nager at the wireless fund. welcome back. >> great to see you. >> h d much longeryou think

this lasts? and what are you watching to tell you how much longer you think i will last? >> excellent questions. i think thatre w not near the trough but maybe we're getting within a quarter or two of potential bottom in the tech sector. one of the things that most averag investors don't realize about the tech sector is it's highly cyclicalnd when you take a look at the us markets, the u. markets are divided into 11 economic sectors, e, it isgy being just a 20% weight of the market. so aery big influence. a cyclical markets and there are growths not about u.s. but about growth abroad. a tell that'mooking for in technology is kind of interestong. a big porf technology is the semiconductor industry, and what we're hearing from a numbej of the semiconductor companies is that their companies havr -- their customers, excuse me, have too much inventory of chips.

we call thatn the industry an inventory correction and when we get some semblance of a balance and the customers start drawing back that inventory and they startrdering agai that is the biggest tell for a turn around in theortunes of the tech companies and these stocks. >> you also say that you need to at least s seee progress or change or development in the u.s./china trade negotiations. >> yes. this is a very significant issue and some of the leading forecasters, particularly in china, think t as might b problem that lasts for several years. in the meantime, i'm chomping at the bit to buy shares of some of nternet companies in china, like alibaba that just posted monster sales o their singles' day over the weekend, but i can't really step in until we clear up some of this geopolitical mess. >> before we let you go, paul, very quickly, someunf the oppoies you see. would you show them on screen here. companies like boeing and

and master card. why those? >> interesting. i want to play some defense, and i think particularly payment processors, ala visa a master card, are good relatively defensiveech plays. i do consider them tech stocks. also boeing is very interesting because the m captivating part of boeing's story in my view is not the assembly of aircraft, it's their services business which isery high tech, very high margin. i can hide in some of those companies until the smoke clears for the rest of tech and of course i already have a relatively high proportion of cash to keepome powder dry for better opportunities. >> very good. paul meeks with th wireless fund. always good to see you. thanks for joining us tonight. >> thank you. goldman sachs saw i worst one day drop in seven years. the selloff shows that loyd blankfein w the unidentified high ranking executive refenced in court documents

related to a 2009 meeting with the former prime minister of malaysia who was involved in the 1mdb scandal. the stock fell more than 7% in trading today. >> meantime, shares of ge fell today.8 a share its lowest level in nearly a decade. during a wide ranging interview the company's new ceo said he's focused on bringing down the company's debt level. >> we need to bring the leverage down, and i think we've got plenty of opportunities through asset sales to dothat. in the last six weeks marksweix s on the job, i've heard from lots of peopleur across markets, people who have interest in ge assets, and iin that's confirmation that we have quality franchises and frankly that weave options. >> emphasizes he will not rush this process even though he is feelin m pressure toe quickly. he also said that ge has no plans to raise additiol equity in the stock market.

he thinks the power business is getting close to bottoming out and he's looking to streamline ge's corporate structure ie order to s money. the stock today closed at $79. oil prices which started the day higher settled bow $60 a barrel. domestic crude marked a record 11th straight session danline it follows weekend discussions by major oil producerseno pottially cut production. time toake a look nowt some of today's upgrades and downgrades. we begin a withline stocks. jetblue and american airlines initiated with a buy rating i new coverage of goldman sachs. in general thenalyst expects the airlines to expect strong revenue. they expect to seeost controls. shares of jetblue fell. american airlines shares rose to $36.86. l brands was upgded to outperform from market perform

at wells fargo. the analyst sees a l brands the next retail turn around story. price target now $55. shares rose 1% to$37.02. starbucks was upgraded to buy fromold in argus research. the analyst cit continued revenue growth, new store openings, stock buy backs and dividend the price target is $79 but the shares fell in an overall down market by 1% to $67.91. cheesecake fac was downgraded from under weight to eqweight. the price target is 47 and shares of cheesecake factory fell 4% to $50.15 still ahead, california's scorched and the cost is climbing. >

well, the california wildfires are still spreading and only a small portion has been contained so far.fi s are being whipped by strong winds burning thousands of acres of land. homes, businesses on both the northern and southern partth of e state and tonight state utilities aren focus. aditi roy is in southern california, camareo fors tonight. >> reporter: california is burning on both ends withre wild ravaging northern and southern california. up north the cam fire is now the most destructive fire in california history decimating an entire town called paradise. >> it was such a beautiful

place. >> reporter: the camp fire also matched theecord for the deadliest fire in the state's history. between this blaze and southern california's woolsey fire, the two infnos have scorched more than 200,000 acres, destroyed nearly 7,00nd homes evacuated 250,000 people. >> i was just coming up the street to see my neighbors and i didn't realize my house was gone too. >> reporter: beyond tragedy of lives losts, homeowners are bracing for damage estimates. the total reconstruction value of the more than 48,000 homes in extreme or highn dangere two fires is about $18 billion and zillot reporting t the nearly 22,000 homes in the woolsey and smaller hills fire in thousand oaks have a combined value of $42 billio according to one estimate, in 2017 home and farm insurers lost

$16 billion, quadrup from the previous year. some industry insidersay that could cause a slow creep of fire insurance premiums. meantime, two california utilities say they suffered outages minutes before the fire started. their stocks flyling sha under scrutiny of concerns mounting that the companies could face bilons of dollars in potential liability. this as firefighters brace for yet another day battling fierce flames fueled by high wis. it's a roar. it's a roar in your ears that you'll never forgette >> rep as homeowners wait and watch nervously, we also know that travelers insurance in its last earnings call had also warned investors about upcoming wildfire payouts and that was n before theember wildfires. for "nightly business report," 'm aditi roit, camarill california. a deal making monday. tonight'sre we begin market focus. sap is buying the software form

qualetrics for $8 billion. the head of sap say the acquisition will bolster that company's offering. qualetricks had filed for a public offering hoping to raise $12 biion. they fell to 6% to $101.42. another software to tell you about. aptillei is taken private for nearly $2 billion just two years after it went public. it helps companies manage and understand their cloud spending. shares popped more than 51% in an otherwise sharply down market to finish at 37.65. eing thena health is acquired for $5.5 billion by two equity firms. athena health said in june that they were going tor consi strategic alternatives around the same time the founder jonathan bush stepped down as ceo. shares rose more than 9% to

$131.97. a swwall street journal rept that they want to banhe sale of menthol cigarettes sent shares lower.ho me represent 55% of british american tobacco sales by volume and 22% of altria's shares. their shares were down 3.5%. shares ofme britishcan tobacco were down 8% to . $38. and a strike has been avoided at ups freight after the company reached a dealco that rs more than 11,000 workers and prevents what would have been that company's first work stoppage since 1997. last month ups's smallackage division which employs more than 240,000 workers also reached a tentative labor agreement. ups shares fell more than 1.5% to $107.72. kellogg's said late today it is looking to sell its keebler,

famous amos and fruit snacks busiss all to focus oncor business in north america. kellogg willte consolihe breakfast, snacks and frozen food units into one. the stock was halted late today. ithe finished regular session down 1% to >$64.30. lawmakers will return to capitol hill this week for their final ssion of the year. they're expected to tackle a number of issues that could deteine whether a partial government shutdown can be avoidednt next moh. ylan mui has the roadmap for investors. >> reporter: it's back to work in washington as congress returns to capit tomorrow. there is still a lot to do in the lame duck session. tru ir se democrats pick t leaders. after thanksgiving house republicans will elect their party leader california congressman kevin mccarthy is expected to win, but he's fending off a challenge from the right by ohio congressman jim jordan. and with december comes another

deline to keephe government running. about 25% is still not fully funded and there are some serious sticking points in the negotiations. democrats want the spending bill to include protections for special counsel bob mueller and his investigation into russian meddling in the presidentl election. meanwhile, republicans want money for the border wall. mccarthy sponsored a bill that would give the white house the full $25 billion. kepeing the government will require compromise from both parties and the incominghm fr in congress say that's their goal as well. >> we need people of integrity on both sides of the aisle. we're never going to be a one party country. that's not our history. that's not how we work best. so i will be looking for anyone i can work with across the aisle including in my own michigan delegation toor get real done. >> we'll see how long the bipartisan spirit can last. for "nightly business report," i'm ylan mui in washington. some sad news to share with

you tonight. marvell comics legend stan lee was credited withre lutionizing the comic book industry. he created some of the most well known super heroes including spider-man, x men and thor. his work as awrater, editor helped make marvell an international succesom thatny was purchased by disney back in 2009 for4 billion. stan lee, himself a real life super hero to the comic book industry, was 95.

here's a look at what to watch for tomorrow. we'll see how rising mortgage rates and slowing housing growth is impacting home depot when it reports its eaings. opec's monthly report will be in focus given the slide in oil ices and we'll find out how small businesses are coping with the tight labor marketith the release of the nfib survey and that is what to watch for on tuesday. well, this increase in market volatility has many investors searching for stability in quality stoc, but which companies fall under that category and what does thista roon mean for the broader market? mike santoli takes a look. >> reporter: investors are increasingly willing to pay up shr quality in a turbulent market. es of high quality companies began outperforming even before the bro market hit a rough patch starting in late september. quality in this case means companies have stable businesses not dependent on a strong economy, little debt and strong

cash flowis reference can be seen in the likes of mcdonald's, walmart,di walt ey, starbucks and merck. health care is the top perfo performing. quality stos are not quite t same as value stocks. cheaper looking companies are s and tendgrowth ra to carry a good deal of debt. wall street isncreasingly preoccupied by how much it might trail off next year after a 30 brand18 which makes name stocks more appealing. and with the fed's mr. interest rate increase it's making debt more interested they want to bet on a strong balance sheet. while it's never clear or predicti, this kindf rotation towards quality is something that tends to occurla r in economic cycles as it turns towards a tougher, more val volatile past. perhaps an encouraging deal with

china on trade or more accommodative tone from the fed could refresh investor appetite for riskieroc for now though quality is in style. for "nightly business report," i'm mike santoli. so our next guest is here with some quality names that you may want to consider inhis volatile market. joining us tonight is eric marshall, president of hodgespi l management. good to see you, eric. welcome back. here. d to be >> you think we're about 2/3 of the way through this particular correction so maybe don't go defensive but definitely go to quality? >> yeah. it's hard to hit defensive when we've seen the market corct as severely as it has. no one knows where the bottom is, but i think this is the time where g you'reng to start seeing new leadership emerge in the market. and, you know, recently over the last year or two it's legally been abo lly been about those companies that carry high couldles and we think you see a rotation back into some of

the more value areas of the market. notnly would we b focusing on quality companies but also very focused on valuations here. >> you give usour names, we don't have time to highlight all but of them necessarily, they are fede agco, nordstrom's and cinemark. what do you lik about these compan os? >> all fou those are areas of the markets that have been forgotten about, transport, ag equipment, consumer names like retail and a movie theater company of all things. >> these are areas that have been ignored. they have very positive cash flow. they pay good dividends and they trade at very reasonable multiples that we think have very limited f down sidem here. >> how important is the dividends? i mean, in a market tt's volatile, how would you rate it? obviously you want a good balance sheet in a company, a good brand, but how important is

the dividend to you? >> wellnk i t the dividend does represent some stability in the mpany's cash flow because they have to generate cash flow to look at dividend every quarter, but we do think that tcompaniest have very stable earnings, stable cash flow pay dividends and it can protect you on the down side. >> and are these the kin of companies you want to own even as interest rates risend the fed is in the midst of the whole process of trying to normalize rates. so are these the kinds of companies you like in that >> i said, these are areas ikvironment? of the marketen that you h seen outpace a lot of the more higher growth areas of the market. they tend to be some of the more boring areas, and i think a valuatio so compelling right now that even in higher interest rat we m see the market's of what the

willing to pay for those earnings, not go up anymore, but we still tnk these companies have the prospect to see further year.ngs growth next >> sometimes boring is good. >> in a lot of these areas. >> eric,y thank you vmuch. and before we go, it was one wall se days again on street. the dow fell by more than 600 points. theq nas dropped more than 2% and the s&p was down 54 points. leares of a fell by 5% pressuring the broader technology sectorto y. quite a day. that'll do it for us tonight. i'm sue herera. thanks for joining us. >>gr i'm biliffeth. see you tomorrow.

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