business report, with sue herera and bill griffeth. gains erased. another day of intense selling pushes the dow and s&p tnto negatiritory for the year. and the nasdaq is barely hanging on. retail wreck. the sector gets hit hard ahead of the holiday shopping ason, even as companies report strong sales. pockets of strength. despite all of the selling, believe it or not parts of thrk ma are working. those stories and much more tonight on nightly business report for ovtuesday,ber 20th. and good evening, everyone anco w. the gains for 2018 are mostly gone. the selloff in technology has spread to other corners of the market, just about every other corner in fact. and tod theretail sector took a beating as did oil.

all 30 dow components ended lower. ader were kept busy especially after both goldman sachs and jp morgan said they expect the kpee to slow significantly. that led to a lot of red. the dow jones average plumted to 24565. the nasdaq dropped 119 and the s&p 500 declined 48. with the sharp declines is the nine-year bull market still in tact? a look.toli takes >>. the s&p 500 in the sus down only slightly for the year, it saw the last record high two months ago and is stuck in the second 10% downturn of theier. half of all large stocks are down 20% from the high. technical analysts point out the market's uptrend back to016 looks broken. for months investors have

gravitated to stable stocks that can withstand tough times. rallies are brief and buying dips unrewarding. the seasonal trends have been ignored. the corporate credit market has begun to weaken. global indexes remain off highs. and for weeks the widely led and owned growth technology stocks of technology have beenl to for all the anxiety and damage done investors take comfort in the factth tha u.s. economy continues to show sturdy growth for now. nearly all deep or lasting markets are accompanied by a recession. and there are few clear signs one is approaching fast now. in some spects, the the market's tail spin assembles the tail spin of 2015 and . back then we canness in chinese economy. oil crash. credit margin strs struck a tech rally in the u.s. the six month correctio phase accompanied by a corporate downturn was the result.

but they managed a i raterease before putting hikes on hold for a year. this might not be the worst outcome for investors if we see a repeat. given that it reset at loweres va as the economy recovered. then again the u.s. economic expansion is three years older.s stre more expensive than three years ago and the threat of a longrade standoff adds a tough wrinkle. for nightly businesseport mike santoli. >> was the mood on the floor of the stock exchange just as stense as theling was? kenny is the director of the nyse floor division at o'neill securities joining from us the big board tonight. welcome back. >> nice to be here. >> i won't embarrass you i telling everybody how long the e been working on floor. suffice it to say you have seen your share of upmarkets a downmarkets. what's the mood and sentiment on the floor? is thi a short-term blip or the beginning of something -- beginning stages of a longer term downtrend. >> i think the mood has turned

suddenly to a little bit of concern. but nobody is yet in that camp that it's going to turn into this pro tracted kind of downturn that you just referred to. i think whahas ening, you know, is that there is certainly shift, the change in psychology. with earnings season we got coined of weaker forwa guidance causing a little bit of concern. we saw the market break down in october when rates spiked to 3.. but the rates caused the initial downturn. they are down sfr 3.25 yet the market can't get out of it way. >> right. >> partly because the fselln october created trend line damage. longing at the 50 ob 200-day moving averages t supports for technical trading and analysis, those lines wereb en. once lines were broken risk management software that contro so much of what asset managers do today, they operate on numbers. and the minute the numbers aree

brea the risk management software goats into this overdrive and said be, okay in order to protect the portfolio you need to raise cash.o howu do that? sell stock. by selling stock raise crash. then it starts build on itself. when the technical levels are broken, the market needso find a new bottom. a foundation. it hasn't found that yet. >> all right. well we'll keep an eye o it. kenny thanks for staying late for us tonight. the the. the retaileccer was hit very hard today, days before black friday. it started with investors focusing on target's higher costs.th sendin stock down so%. and continued when kolls, ross store was lowes and tjx reported result. courtney reagan has more on the retail wreck. >> reporter: just two days ago until t day buster doors at target but the latest earnings report is giving investors coern.

will comparable sales grou more than 5% analysts expected more. the retail digital sales increased nearly 50% butful fulfilling the online orders was expe pive andssured margins. >> i think the t numbers for retailers could they represent the high water mark. >> because whave come through a time period where we have a strong consumer, a that benefitted. and in 2019 we're lapping tax reform, wanl increases and we have labor cost pressures and freight pressures. you have a strong consumerers but each of the companies there is initiatives in place that don't come for>> free. lowes and kolls margin were pressured even though they turned in stronger profit and rerevenue. retail ceos are working tohe assure market that the u.s. consumer is still strong. >> the holiday season a that the right strategies are in place. on a media cald target ceo brian coronell said quote the consumer is very healthy a we

entered the quarter. unemployment is low. gdp is growing. when pressed as to whether the consumer is weakening cornell said quotee he change in the consumer environment. and best buy's media calmed hubert joly said everything we see about the consumer i very positive. and quote we are feeling really good about t holiday season. but he continued. because the cycle has been gonng for so long everyone that studied economics knows it can't last forever. as a result are convincing emselves it's going to end. >> we think the consumer is in the best place it's been in a long time i think what you have to focus on though is the fact that gains begin to moderate. we heard that from amazon all the way down. >> we expect one of the jolyest lidays for over a decade now. i think that investors looking out to next year and saying can the momentum continue. >> with so many concerns the strong reretail t is over the who will za stakes got higher. for nightly business report,ey

cour reagan. stro. indeed the timing of the selloff couldot have come at a worse time for retailers. while somehoppers we talk to say they do not plan to cut back, others are thinking twice. >> i tried to do basically the same thing i do every holiday. iot a budget myself and decide exactly what i'm going to do. i know inns what i'm going to do. i don't get caught up in -- in volatility. i just do what i planned to do. i make a price i set it and that's it. >> i don't know other people but themight think twice about big things, maybe not give for the grandchildren and thi like that. but an extra goody you might have thought about when the market was up higher, you might not think that good today. >> markets up or downoesn't tter i'll find something to buy no matter what. well, one thing peoplt were buying today was apple. it was the worst performing

stock in thedow. shares were off nearly 5%. after goldman sachs cut the provides target the third time this month. putting th stock in bear market territory now down more than 20% from the october 3rd if that's not enough wait until dominic chu shows you the size of the market losses in big cap tech. >> for many traders out there, the fang stocks, facebook, amazon, apple, netflix and google parent company alphabet have been leadership to the up i hadside but trade resist watch them fall. each name has fallenbout at leas 20% from the respective record highs hit earlier this year. to put the numbers around those percentage dlng declines, they are staggering. for instance, a amazon andle both of those stocks have fallen by enough to shave off around lion apiece from their market values. and just to put that in perspective, that's like losing an entire bank of america from

one market cap just to put in theperspective. also facebook shares, $250 billion. r there abouts and lost market valu alphabet, the parent company of google lost the record highs back op july . and online streaming giant netflix has lost 64 billion since record highs on jurn june 21st. all told if you add in all of these market values lost that means these fang stocks facebook, azmodan, netflix and google. lot $992 billion in market yes, that's right. almost $1 trillion gone in overallarket value. appear and again for perspective that's like losing more than tha e of apple as an entire company just since each company's respective hig for nightly business report i'm dominic chu. >> and theed is still a concern for investors. and now it appears that the rket's expectations about future rate hikes may be

cheging. stliesman explains. >> reporter: the decline in the stock marke and recent fed compensates have investors thinking that interest rates may notine r as much next year as they originally thought. while a quarter point rate hike in december looks priced in futures markets don't see another hike until june 2019. in areviously priced in march. some of the new thinken on the med comes fro fed from the chairman jerome oem powell. suggested there were equal risks in going too fast or too slow i hiking rates. >> one error is to cope the rates too lowor too long and we have had plenty of ratesed this we had raisising rates too soon and premature end pangs. we're at a point we have to take hyth risks seriously. . that we've been raising rates again quite gradually. >> economistouis alexander said powell's recent comments is

a dovish shift in the message.d and sed officials openly question the does hike. the philly fed president saidt this point i'm no the convinced the december rate move will move is the right i move buteed to watch the data the next few weeks. many fed officials committed to bringing the fund rate to neutral where it neither stimulates nor slows the economy. the fed puts it between 2.5 to 3.5% compared to the current rate. if the kpk data weaken over the next several months the fed could stopp whoing in the lower end of the range meaning not much wor for theed to do from here on hiking rates. > so we are six weeks into the selling. what are individual investors ing? j.j. kin i hand chief strategist at t ameritrade talks to us about that. >> good to see you jj. >> you say you are hearing from people that the question about whether or not we're in a bear

market. and are they acting o that suspicion? >> no, you know, i think the most amazing thing about this -- you talked about it a little bit at the top of the show is this has been the most orderly selloff. i think what pappened isple are no longer buying the dip. but a lot of people that have accumulated stocks like apple, facebook, that are a favorite of retail traders, people are staying with t overall, hoping that there is a little bit of a bounce back because any haven't panicked yet. one thing i would say to the reilnvestors so many of whom watch you every day if you get to a place where you uncomfortable think about partially getting out rather than getting out of all at once or in at once. that's a mistake people often make. at said back to the trading itself i think that as dominic showed the vix as still not a very high level overall compared to even last month. last month we got the 28th. this month the -- today we're at

23. so i think people have a little bit of sort of faith that things will reprice at some point down bre. >> we han watching the bond market as well. and while stock prices have ben going d sharply bond yields have not been going down. >> right. s> as much as you might imagine. which suggeeople are -- when they get out of the stock market they are not necessarily going to bonds. probably to cash. what do you make of that. s >> i think thaart of it, bill. one of the other things we are seng maybe surprisingly is people looking for sort of what they consider safety divend stocks. we have seen that in some of the consumer staples, if you look at coke or psi with over 3% dividends and people feel are more blue chip steady, normally you see them as you say go to bonds or utilities or energy players during times like this. but with what's going on with hat's scaredies people away from that. i believe you are right. they are going to cashr what

they consider to be true defensive and some of the staple stocks which held up well compared to the rest of the market recent. >> jj, always we appreciate your perspective. thanks for joining us. >> thanks for having me. >> we're talking more about oil in a minnesota. jj kinnehan. >> time to look at upgrades and downgrades beginning with exxon mobil which was downgraded to underperform from at raymond james pmts saying it will not benefit from higher oil prices next year. they cite the ultradefensive tharacteristics. stock fell 2.5% to 76.97. >> but raymond jamesup graded bp to moutperform f market perform. the analyst cited that stock valuation. the firm also pointed to bp's free cash flow and production the stock fell along with the broad are market today to $40.10. still ahead why the oil bears are out in force and no

where near hieber nation. but first, a look at 2018 performance of all 11 s&p 500 sectors. late today, the french car maker renault said carlos ghosn will remain as the chairman and ceo f now while detained in japan. but renault did appoint aeputy ceo to lead day to day operations. as we reported yesterday. ghosn who runs nissan was arrested for misusing company

funds. well as we mentioned oil provides fell sharply today on the usual suspects. supply concerns and worries about a global economic slowdown. losses deepened after president trump today said the u.s. stands by saudi arabia after receiving the cort on the killing last month of journalist jam l khashoggi. >> we're not going to give up hundreds of billions in orders and letrussia, china and everybody else have them. it's about for in me, simple it's americat. fi saudi arabia, if we broke with them i think your oil prices uld go through the roof. i've kept them down. they'veelped me keep them done. right now we have low oilpr ides or relatively i'd like to see it lower. >> domestic crowdun settled a $53 a barrel today. that is the lowest level since october of last year. >> let's talk more about the decline in oil priss joined by john with again capital good to

see you this evening, john. >> good evening. >> what's your sense of where we are in the oil cycle? viously we in a big drop today. we have seen the market fall for some where are we in the cycle. >> president trump turned out to be the s theaw that stirs the drink in this market, really. because miss administration goeded saudi arabia and the russians to put oil onhe mark earlier this year which they aggressively did ahead of sanctions imposed on iran. there was a clear signal from the iran oil exports were going to zero or as close as possible to as quickly as possible. a complete 0 was undertaken in october when the sanctions came into effect in early november and low and behold, we're losing hardly i anynian oil and the saudis a rsians are puchg full out we tripped into oversupply. >> but the expect aches open peck will vote to cut meeting next time around yet thepriss go lower.

>> well the saudi u.s. relationship was obviously bought and paid for today. there was concern inhe market that the saudis were unhappy with more sanctions imposed the country potentially even on the crown prince mohamed bin buiously the relationship salman. is too big to fail. and wraer we're going to stay together and as a result of that the saudis are beholden to have to put on the market or keep the market on the market and the keep the priceschower oh or risk the wrath of president trump it's a clear setup. >> if there i a downside do you have a sense of how much more to the downside oilould move. >> well we are going into a peak demand. the northern hemisphere winter should support it. the low prices should have aul sting effect on the global kmoe. it helps the consumer. one silver lining for consumer into the holiday even the stock pofrlts are down here in new rsey youee gasoline down around 2.25 gallon potentially that's a big morale boost.

but pat $53 i can't see itoing much lower than $48 and maybets some effy opec. >> thank you, john. there is talk of other tyrek highup where we begin the folk. pharmacy giants wahl greens and humana are in preliminary discussions to take equity stakes iach other. according to the "wall street journal" the talks are in early stainings. but both companies face competition from the merger of cvs and aetna. that deal is expected to close after thanksgiving. wahl growns fell 2% while humana down 1%. campbell soup reported quarterly earnings andue rev that beat estimates. the ceo says he seesma improved for soups and return to sales growth in its v 8 drinkit s well. the company face as key shareholder voting vote on the makeup of the board next week. shares jumped 5% to $40.5 a.

and the trade war between the u.s. and china increasing cost for medical device maker med tronic but the company reported a doubleigit increase in earnings for the recent quarter and maintain profit forecast for the year. med tronichares rose about 2% to 92.16. after the bell bj's wholesale reported the overall revenue missven as it grew the same store sales. the discount warehouse chain did however top earnings expectations and it lifted the outlook for the full year. shares were initially higher in after hours buthe finished regular day down 1% to $19.83. and also out after the bell foot locker reported improved margins and earnings better than expected. the retailerrew sametore sales and said it's well positioned to deliver a strongh day quarter. investors liked what they heard and foot locker shares jumped in after hours but finished there lar day down more than 5% to

$46.09. oming up even during big s selloffs there are pocketsndf strength we figure out where they are next. amazon has reportedly made a bid for disney's 22 regional sports net irks. disn required to divest the networks as part of the neay $72 billion to acquire assets from 21st century fox. cnbc's says amazon's bid included the new york based yes new york broadcasting the n york yankees games. the retailer faces competition

however. apollo global management, kk, the blackstone group. sinclair broadcast and tech that are said to have made first round bids. well even the selling intensied theext guest says he is find being pockets of strength in the volatile maet. joining us cole meed is managing director and portfolio director at meed capital management. goods to you welcome back. >> good to see. notou i'm guessing you're looking to technology just yet, right. >> that -- no we're pretty early on in this, bill. where the frustration of the ma let over thet six weeks has been is like you said in technology. using apple an example, you talked about the couple of provides target cuts that just came. what we are dealing on in this mania that we're coming off of in technology is what i'll call death by a thousand price target cuts. it's going to be torturous, probably longer just like the growth era we built up to theth peak i names was elongated

period for stocks. >> you are looking mon street. and you gave us three stock picks you like. one of which is discovery. reality television, why. >> well it's a great question. here i am sitting withou guys. i am an unpaid actor for nbc.is and thi a great thing for me. because i get to sit here andha tellyou i think but you don't pay me. the reality television is profitable because i everyday people on the shows you pay chi and joanna gains to being injure as like you and bill b everyone come in contact with the show is froh or cheap and no stript writers needed it's l cost and can you make a lot of compareth that today to scripts. >> you you like banking. bank of america is your pick. butates are going up. i know thats that's supposed to be a positive for banks.t he stocks haven't responded. why do you like them necessarily? >> well, ah, to your point, bibl people are very nervous on

e economy. are we late stage has been the biggest debate the last three to six months. warren buffett has been saying we are in the sixth inning and the big hitters are coming. jamie dime isn't saying 4% on the 10-year treasury yelled. if we are gng where the smart gentlemen have laid out, the economy is not the thing towat. ab but in the interim bank of america i the fear. one of the other names i mentioned nvr. people are nervous on the economy. i think the bigger risk is that e economy is going to do great and that stock and also like you talked aboutearlier, bond markets do poorly in the same time that sarckts do poor gli sfr. >> all right cole meed with meed capital thank you for your ideas. >> thank you so much guys. >> you bet. >> t amazon ceo jeff bezos is giving more thanio $-97 mi in grants to 24 non-profit organizations helping homeless families. these are the first donations to come fromezos $2 billion day one fund. the 24 organizations that were

given the award serve communities in 16 states and tha tal. all right before we go, one final look at the day on wall street f still looki a bottom in this market. the dow fell another 551points. the nasdaq down 119. and the s&p dropped by 48. the dow and s&p now negative for the year. >> it's a holiday shortened week. we will see. stay tuned. that does it for us font. i'm sue h thanks for joining us. >> i'm bill griffeth. haat a g evening. sleep well. we'll see you tomorrow. >> right.

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