. this is "nightly business report" with bill griffeth and sue herera. n wall street. stocks suffer a punishing pull back as investors grow concerned about the once red hot tech sector. arrested development. a legend in the global automoti industry is taken into custody slamming the brakes on a once powerfu executive. opioid lawsuit. florida sues the nation's largest two drugstore chains alleging they played a big role in the drug epidemic. those storiesnd more tonight on "nightly business report" for monday, november 19th. and we do bid you good evening, everybody. welcome. the titans of tech are tanking. the sector that led thetock market higher for several years has suddenly been beating a fast eltres the biggest most w held names in that

group that are leading the way lower. ontinued concerns about trade and housing and you had the recipe for yet another serioulloff on wall street. it happened again today. the dow was down 395 points. it was down 500 points a couple of times. we're just above 25,000. th nasdaq was down 3% or 219 points. and the s&p was down 45. so let's start with apple. the mostbl val publicly traded u.s. company just narrowly avoidedlosing in bear market, meaning its shares are down nearly f20%m their most recent high. today it was this article that pushed shares lo "the wall street journal" reports that apple has cuter production o for all three new iphone models. the uncerinty around iphone demand sent the stock lower by almost 4%. and it's a similar story for facebook. that stock today fell more than 5.5% to its lowest level since february of last year. it's now down about 13% since

the start of november and abouts 38%ce its most recent peak in july. and today there were new reports of a more aggressive style by ceo mark zuckerberg and increased tensions between him and chief operating officer sharyl sandberg. julia boorsti takes aook at the growing list of challenges oocing facebook. >> reporter: fac may have avoided manipulation around the recent mid term elections, but the negative headlines moun the latest this weekend about conflict in the company's highest ranks. facebook faces five major challenges, first blocking fake news and preventing manipulation, which has been driving everything from violence in myanmar to attempted voter suppression. second, the platform continues to gird against data hacks and breaches. as recently as thursday evening instagram told millions of users a security flaw could have inadvertently exposed their passwords. the breach ironically tied to a

download your data tool that is tied to european regulation. all of this is potential distraction from mark 's zuckerbehird challenge, re-inventing the model away from the news feed towards the storiesformat. zuckerberg warning in the last earnings call that they haven't made as much money from ads and stories as the have from news feed ads. >> zuckerberg has realized tt they really have to monetize and ramp up their advertising on instagram stories as quickly as possible, and the issue is advertisementsn instagram monetize at a 30% lower ratio than news feeds. >> this is happening as r facebook's urowth stalled. a fourth challenge for the company. it reported that in the third quarter daily active user numbers in the u.s. and nada were flat from the second quarter while in europe daily users actually flipped. >> what's most important for investors about facebook is whether or not there' negative headlines is putting pressure on user growth and whether

ngvertisers are fleeing. this morning g through my data on monthly active users and daily active users, i'mot seeing the people leave the platform. >> reporter: as facebook oorks to hol to users and advertisers, the threat of regulation looms. a fifth chaenge for the company. there are growing calls from congress for comprehensive ivacy regulation as well as the potential for antitrust scrutiny for facebook and i family of apps. last week four democratic department of the justice to take a look at breaches.s handling of zuk kerr birg and sanberg said they believeio regulat is inevitable. for "nightly business report," i'm julia boorstin in los wgeles. ale we're at it, shares of google parent alprebet lso dragged lower today. that stocks joins other so called faang names in the bear tori up 20% from the july peak and has erased all of its gains this week. adding to today's tech

misery, a report in theia fina times that says chinese authorities are alleging, quote, massive evidence of antitrust violations among some of the world'ses la semiconductor companies including samsung and micron tech. the report says that china plans to deepen its investigation into raese companies. heightened tensions added to the market unrest. an annual economic summit brought together xi jinping and vice president mike pence who maintained a hard stance. >> we're taking decisive action to go on the trade imbalae. we put tariffs on 215 billion chinese goods and we could double that number but we hope for better. the unid states will n change course until china changes its ways. >> the so-calle apec summit involves 21 arab shoon and pacific based companies and this year it ended without a joint

communique for the first time in its 29 year history. and not hpingatters was a new read on hom builder sent im. this is the latest in a string ofe bad numbers from housing sector, an industry that is criticalo the broader economy. as diana olick reports, the curits are painfully clear. >> the home builders had been eme last holdout. housingd was so high that builders' confidence stayed strong h even ase sales fell, mortgage rates rose and affordability weakened over the past several months to the worst de a de. suddenly the builders are feeling it >> for a few months the builders were looking at positive demographics and seeing if the market rate would digest thehi er interest rates, the run up in interest rates. what we saw was a fall back where builders are saying now housing affordability is a real sue. >> reporter: builder confidence dropped in november to the

lowest reading since august of 2016. this on the heels of warnings from big builders like lenar and k.b. home that they re seeing weaker demand from buyers and lowering sales expectations from next year. interest rates started the year higher, tariffs h builder bottom line and then interest rates hit bottom thi fall. the average 30 year note i an average percent higher than a year ago. while they mig like to lower the rate, that is increasingly difficult. >> becaude real estate lopment is mostly debt financed, higher interest rates mean a higher cost of phi napsing for the builders and land developers. so that's going to be baked in the cake. >> reporter: builders are reporting weaker confidence in all fac of their business. current sales conditions, buyer traffic and salesti expecs over the next six months, but it's that last one as we head into winter that weakens the worst. for "nightly business report,"

i' diana olick, washington. let's turn to john najarian to talk about what's happening. you've been trading this market for a long time. >> yes. >> and this volatility started in early october and it just continues what's this marked telling you right now? >> well, the market's more nervous now, bill, about the impact of the tariffs that vice president pence was talking about. >> right. >> and he kind of puld a little bit of a page from navar navarro's playbook talking very, very tough about, hey, this is a longad it might take years. and the market really didn't want to hear that. so that's why boeing and in rticular caterpillar were hit on that. >> do you get the sense though that the turn that we've seen in the market, specifically as it relates to technology, is a longer term turn or is this just a blip based on the rhetoric? >> i think tech, sue, is going to be a shorter term turn to the

down side. i think algorithmnd traders things like that have hit things very quickly because they move faster than humaneings can and a lot of those big cap stocks have really been punished and perhaps overly punished. facebook we can understand why. >> right. >> there's a lot of the other stocks that you can't understand why they've bee hit as hard and yet they've been hit harder than a facebook. >> but y have to admit, the highest profile and highest multiple stocks, those that have been assigned a price relative to their earnings, they've been very hard hit this time around. is this the market just fleshing out the high priced stocks here? >> it's so different, bill, than what it has been in the past. in the past a human being would respond to a big selloff and a human being like me might step in there and start buying. now with aorithmic trading being about 90% of what happens in the stock market every day, the algorithms are set up the more it falls, the more they

sell. >> the computers that are looking for certain words and headlines, they see those and down it goes. ah, and the weaker it gets, the more they sell and that's why you see something like twillio today which fell by i think 14% or something like that. i mean, when facebook or apple fall 3 or 4%, that's a big deal. when some of these other stocks that have had great years don't have bad news and fall three times faster than that, that's some of these guys acting on it. >> economic background that's pretty good. >> yeah. is soliconomy overall >> right. and cloud. i mean, you saw rizon, for instance, doing very well. in fact, it was one of the few stocks in the s&p 500 that was moving higher throughout the whole session, and that's because there's a lot of demand r their product. >> jon najarian with najarianly faoffice, always good to see you. >> thank u, guys. it is time to take a look at some of today's upgrades and downaades. dend united airlines were given an outperform rating in

new coverage at credit suisse. there's margin expansion into next year. the price targets are $71 for delta, $113 for united. shares of delta rose fractionally to $56.19. meanwhile united continental shares were down to $92.09. also atredit suisse jetblue had an under perform in new coverage. they cite a muted outlook for margins and earnings. the price target is $16. jetblue shares fell more than 1.5% to $17.73. charles schwab is downgraded totral from buy at ubs. they cited a less attractive earningsoutlook and heavy regulatory burdens. price target $51. that stock fell 2% to $45.97. also at ubst.d. am, td a merry s

upgraded. price target is $60. itlosed at $52.07. still ahead, why cvs and walgreens find themselves at the center of the opioid fight. shares of pacific gas and electric fell again today after california's largest utility revealed that a second power line outage occurred on the n morning oember 8th. that is the same day as the deadly camp fires started. it could face liabilities that exceed the cash levels and ag insurance cov if its equipment is, indeed, found to have caused that wild re. pg&e says it is cooperating with

the investigation and califora regulators have offered financial help to keep that company out of nkruptcy, but since november 8th that stock has just about been cut in half. a man synonymous with the auto industry has been arrested. nissan alleges its chairman carlos ghosn underreported and otherfignificant acts misconduct. he's the chairman of not only nissan but also renault and mitsubishi. it is a dramatic fall for a leadt hailed as one of the b known figures in the global car industry. >> reporter: he turned things around at renault and then i nissan wheren 2005 carlos ghosn became the first person to run two g fortune 500bal companies at the same time. in 2016 nissan bought 34% stake in mitsubishi forming a re way alliance sharing technology and other resources. adding in sales by a russian

automaker overseen by ghosn as well and the group sold more than 10.7 million vicles in 2017. by some counts, the most in the world. that's why today's announcement made by the man who succeeded ghosn at nissan last year was stunning. tokyo prosecutors say the ol 64-yeas salary was worthli $89 m in the five fiscal years ending may 2015 but that it was underreported by about half. ghosn is also accused of using company money for his own benefit. analysts are questioning whether the alliance will crumble, but one former critic of the structure, bob lutz who at different times once led each of the american bighree aumakers, ford, chrysler, and gm, says the success of ghosn's alliance speaks for itself. instead, lutz doubtson whether y

person can or even should replace him. >> no ceo is immune to ceo disease. think about it. everywhere he goes all three corporations, nothing but admiration, adulation, yes, boss, et cetera, et cetera. over a while they tend toha believe they're above the rules and above the law andn t they start misbehaving. >> lutz and others are quick to point out there's no proof ghosn has done anything wrong. for now though dark clouds hang over his reputation and the future of one of the rld's biggest automakers. >> nissan's current ceo says he will propose removing ghosn when the board meets on thsday. disney's ceo and fox will take a step forward. chinese regulators thumbs up to disney's proposed acquisition of 21st century fox assets. the unconditional approval marks a big hurdle for the company disney amid the ongoing trade

disputes going on now. u.s. antitrust authorities approved that deal in june. disney shares were dn a fraction to $115.42. shares of fox rosy nea 2% to close at $48.54. oil and gas company cimarex is going to buy smaller company resolute for a billion dollars. that gives them moreet a in the shale rich permean basin. the shares fell to $88.03.'s resolu shares popped to $34.70. aft the bell elle brands topped estimates by a rise i sa store sales. they named a newceo for the victoria's secret brand. they t raised earnings for the year but slashed the dividends to $1.20 from $2.40.

they ended at $34.55. also after the bell intuit said subscriber growth contributed to an overall earnings beat. shares itially rose in the after hours but they finished the regular day down nearly 6% to $199.24. s florid attorney general is adding two of the country's largest drugstore chains to an existing lawsuitgainst opioid distributors. the state alleges that cvs and walgreens both had a hand in perpetuating the nation's opioid cris. bertha coombs reports. >> reporter: the drugstore chains br some of the problem in the crisis. she's adding cvs andee wal to a lawsuit against drug companies including oxycontin

maker purdue fapharma and mckesson. they joined the race to sell as many opioids as possible and should have known that the oiantity of o being distributed in f florida exceeded the medical need of residents. >> what's interesting about bringing cvs and walgreen in, some say they're so far down the chain of responsibility when it comes t opioid crisis. you have doctors prescribing drugs that the fda says are important, safe, you have purdue, the manufacturer,ie so many ent including the manufacturer of the opioid and that's the argument they're making. >> reporter:algreens declined to comment on the litigation but cvs said it was, quote, without merit. the company is committed to, quote, the highest standards of ethics and business practices complying wh federal a state law. both have already been sued as part of the massive multi-district litigation in

federal court in ohio which has brought together more than 400 state andal l cases before holster.n so far the court has not ruled out any defendants in the case and some analysts say that may be why florida and others are making sure they have a claim with deep pockets. >> if you look at cvs'snnual revenues and walgreens, they're over $100 billion. if you look at purdues, it's only in the 30s. if you'reing about who can afford to pay the settlement, you want to bng in the big guns. >> judge polster is pushing to l reach a glo settlement in the cases within months. he's trying to avoid them draking on. it took the better part of a decade to reach the $200 billion master agreement in the 1990 tobacco lawsuit. for "nightly business report," i'm bertha ces. coombs. >> let's turn back to abby gluck.

welcome back. nice to have you here, abby. >> thanks for. having >> i want to go back to something that you said in hese are report, that legal drugs. they're fda approved. they're prescribed by physicians and as a result of that walgre s andcvs are obligated to fill those prescriptions. so on what basis is this lawsuit going to go forrd with them? >> well, this lawsuit is different from the tobacco lawsuit precisely because the plaintiffs are casting a hugely broad net of responsibility. they are arguing that everybody down the chain had a responsibility to raise red flags when they saw too many pres'riptions. th arguing that these companies had a public health duty ande duty to public to monitor and raise warning about.s when they came that's different from the tobacco crisis and it's what's pulled in cvs and walgreen. >> here's the question i have. when you consideve the mas settlement talks going on in

ohio and you add in the other state lawsuits that are com ag up her the time, what you're essentially going to do is just punish the people, the entities that had been involved in perpetuating the opioid crisis but you're not solving the opioid crisis. do you suspect as judge polster isthoping, t there will be regulations or new laws to come forward to try and d that? >> yeah. this goes to the question, can litigation solve a public health crisis? it money is needed because a lot of people need treatment. you're not going to get ao solutionhis crisis until we get actual legislation that deals with proper pain management, addiction and let's unlock the barriers. >> who's going to do that? where's that going to come from do you k? >> congress tried. they didn't do any harm, nibbled around the edges, but it didn't do very much. >> every state has tried to pass

gislation and prescriptions have gone down. for something more comprehensive i thi the federal government has to come back in. >> will this not have a chilling if a walgreens and cvs can get put into this msive lawsuit, everybody who touches the drugs on the way down the line is rr vulnerable, t? >> yeah. they already have been put into the lawsuit. i thi t the answer that is, yeah, who's left? ecause they've already got the distributors. they've even got a hospital accreditation agency that remmended against the und achievement of pain in the '90s. these plaintiffs are being very aggr. they started with tobacco but they went far beyond the tobacco playbook to in as many defendants as they could. >> abbe, thank you very much. >> thanks for having me. >> ab gluck with yale university. coming up, stay calm and invest on. how to take the emotion out of retirement decisions even in a maet like this.

as we mentioned, big declines in some of the largest tech stocks drove today's market slide, and because they are so widely held, it nea doubt some investors to worry about the impact on their 401ks and retirement savings. and sometimes it causes some to make major moves as a result. sharon epperson joins us now to talk about how retirement savers should be thinking about their portfolios o amid allthe volatility. annette, is there evidence that the've already mad some big moves here as a result? >> there is evidence over the last several weeks. they're looking at their 401k plans. they may not have individual shares but they'ng loo at the selloff and saying maybe i need to do something. what we' seeing according to light solutions which looks at k activity is in a buy and

hold like your 1k40 we're seeing higher than average daily trading. usually we don't see anything. on october 9 the market plunged a nearly daily double and as the market started to rebound a weak later we needed to be trained, wha they should be doing, selling at the bottom and going in it and buying more equities. >> jon najarian sai the computers are doing it. it sounds like we're getting -jme knk reactions from retirees or people on the verge of retirement. they're going to have some regrets. >> ye 've seen it often. blake mason did a sur they looked at investors who had $50,000 a me of vestable assets. have you ever sold and regretted itn your 401k plan. one in threehe said made an emotional decision and later regretted it.

more than half of them had kids in their household. we spend money out of our 401k to do it.er what's iting is they never describe about investments but their emotions got t best of them. >> 20 seconds. how do you take the emotion out of it? >> couldn't do the bad things, now or in retirement. don't over subsidize your adult kids. the vacation home that seems great, can you really afford it or are youstretching? think about the health care costs. where they are now, where they may be. the market is volatile. stay calm. >> sharon epperson, as always, thank you. >> my >> wise words. billionaire and former new york city mayor, michael bloomberg, is donating $1.8 billion to his alma mater,pk jos s university. it is the largest gift ever made to an educationnstitution in the u.s.

bloomberg says the donation is to hel the university provide financial aid for low and m income students. johns hopkins says it will allow it to consider qualified applicants without considering whether they can pay. one last look on wall street. down 1.5%. the nasdaq down 3%. s the down 45 points. >> keep calm and invest on. i' sue herera. >> i'm bill griffin. see ya tomorrow.

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