business report" with sue herera and bill griffeth. losses moun. the selloff deepens after weak economic reports out of chi stir a fresh round of selling. what did j&j know and when? that's what investors ask after a report says the company was aware for decades that its baby powder contained asbestos. golf and the glass ceiling. women learn thousand play the game to cse more deals. those stories and me ton on nightly business report for friday, december 14th. good evening, and welcome. bill grieth is off ton. j&j lost about $40 billion in market value today. we'll have more on that in just a moment. but we begin tonight with the broad market selloff. the three major indexes have all

lost 10% or more from the most recent highs, meaning closed in the correction territory together for the first time since 2016. the concern is over global economic growth which was triggered by weaker than expected economic data out of china. that sparked the selling and by the close the dow jones industal average dropp 496 points to 24100. that i the lowest close since may. the nasdaq fell 159 and the s&p 500 slipped 50. so let's talk more about nacelleoff tonight with patrick chovanik with silver crest asset management. great night to have you here. >> hello. >> so tell me whate you m of today's move in particular, the volati wty has beeh us some time now. but is the market overreacting >> it's interesting. if you go back to the lastof the se before the latest one in october, all three of them

we triggered by concerns about a slowing but i don't think that you can -- i've lived in china for a decade before i came back to new york. ti don't thinkt you can draw a direct line between a slowing chinese economy and slowing u.s. economy. in fact, i think that the result is that a slowing chinese economy can bead for some companies and sectors but good for others in the united states. each time it has taken the market in the pas time to rebound.this and then >> are the fundamentals though for the u.s. economy and the companies that dousiness here and report their earnings? are those still intact >> the u.s. economy is slowing down a bit. it was really goi strong last summer when the market thought the u.s. economy could do no wrong. and now it's slowing down. and people are focused on the downside. t for the life of me i'm not a

perm a ll. i always cheer up the u.s. economy and the market and says it's aai st line upwards. i keep on looking for sig of imminent recession. and i don't see them. the latest enomic data is actually relatively robust and relatively positive. there are things that could turn to big are problems later and soft spots. but i don't see the economy facing a recession right around the corner as the market seems >> very quickly, would you use days like this or the overall trend that we have seeing of volatility and lower prices if you are a longer term w investld you add to the positions? do you find valuations compelling? >> it's dependsed liow fending long of a term of investor you are and how much volility or uncertainty you have a capacity for. i would say that somebody who i genuinely long-term it is fairly attractive now, u.s. shares, compared to the alternative

which is still low interest rates. but, again, you have to be tlling to accept ups and downs of the market in the meantime. >> absolutely. patrick, thank you so much. patrickith silver crest asset management irjt and now more on china and i weakening economy. beijing is working to halt the economicloown which comes as china grapples with the effects of t trade conflict with the u.s. that maye be reason why china issh temporarily sg tariffs on u.s. auto imports. eunice yun in beijing tonight. >> china's finance ministry says it will suspend additional tariffs on u.s. made carsnd car parts. 211 items will be affected with china lifting a 25% tariff on most o those items. the decision takes effect january 1st and lasts three months. the finance ministry posted explanation saying we hope the two side u.s. andhina will intensify negotiations towards eliminating all tariffs increases. immediately after the

announcement tesla cut prices on theodel s and model x vehicles in china. tesla is one of the few american car makers that exports whole cars to china. the announcement came after a raft of data showed the economy here slowing down further. both realtime sales and industrial output missed expectations. retail sales grew at the slowest pace since twoe and industrial output expanded the threeea yrs. mixed asset investment jumped slightly but only because wk earlier in the weier. part of the nlt slowdown has been engineered and sentiment id weigdown. so far they say the impact from the trade war has been mimal but the bureau expects greater uncertainty in 2019. that's raising questions on what policyo makers next. the central bank governor said thursday that china would keep monetary policy loose for now and next week beijing leaders

meet for the annual economic policy setting meeting for the year ahead. iemost analysts b that the pressure will be on to stimulate growth even further as domestic demand continues to weaken and the clock ticks down on the trafr truce. for nightly businessreports, eunice yun in beiging. >> now to the other big story tonight, johnson & johnson. and a product closely associated hawith brand. johnson's baby powder. for years we've rept the on lawsuits that allege the powder causes cancer, something the company denied. after every verdict, the stock barely budged bu that's not what happened today. when reuters reported that j&j knew for decades there was asbestos in the powder. the stock was slammed faumg 10%, the worst day since 2002. the stocks stunng drop followed a reuters report based on that news organization's review of j&j company m os and other documents dating back to the he remember 1970s.

in its report reuters say j&j execs mind managers, scientists, doctors and lawyers worriedhe raw talc and finish powders had at times pesteditive for asbestos but they denied all claims until forced t share thousands of pages of internal reports with lawyers representing almost 12,000 fs plaint who claimed that talc gave them cancer. >> we see that historically in the 70s, 80s, gnat era, that there were company memos and reports where they are talking utout asbestos, what to do a it, fretting about it, how to detect it, get rid of it. is there ever a way we can get rid of all ctaminants. during the era they were talking about it. >> j & j disputes the validity of the report calling it one-sided, false and

inflammary. simply p the reuters story is an absurd conspiracy theory. end quote. the company says the baby powder and other products are safe and stos free. reporter lisa ge. rian as said that the j&j testing shows the products are free for 159 years. but the bigger problem for j&j may be the barrage of hits the reputation has taken this year. trial juries have come down on both sides. merdering the company to pay billions of dollars in damages while others sed with the company. but all that publicity is now compounded by questions of trust swirling around one of the world's biggest and best known consumer health products brands. s does j&j stock continue lower after today's drop? ining us is damian conover the analyst at morning star. damianhank you for joining u ton. what did you make first of all of the selloff in the sto

today. >> yeah, thanks for having me. selloff saw the marilyn today based on the news it seemed a major overreaction to see this much mket kpap capitalization wiped out relative to the legal threat we think it's overdone. we thought the stock price had gotten losty. but that said we thought the reaction was well erdone based on the legal threats that seem to have always been there but just wer elevated through this article that came out today. >> you have a price target of $130 on the stock. did today's action cause you to change>> that? no. today's action didn't cause us to change ourvaluation. we have already accounted for a lot of legal charges for j&j not only for the talc powder but ther cases that have gone on unrelated tothis. taking that into account we think the fair value is $130. the pullback today put the stock where we think it's worth. but we don't think the stock

provides should have moved as much based on this news. >> if this goes the way the other issues with the company have gone we are seeing lawsuits and testimony and things. and see jury decisions. how is the stock do you think going to take tha this time around given the selloffs we saw today? >> it's interesting i've never seen j&j react this to way to litigation concerns. going forward it's a little bit more of a volatile name relative to t different verdicts. but generally what we see not only with j&jth but firms that have gone through massive legal suits over many yrs is that the investment community focuses in every once in a while when there is a inflammator case or inflammatory article. but after a while they tend to get bored of the potential risk. and they pull bac from damaging the stock because of the concerns and you tend to see the stock to trade t more on fundamentals and less on legal

concerns. and i think that is something that will very likely happen here with j again. over time j&j will litigate case by case until a long period down the road offers some settlement that will be probably not overly impactful to the overall valuation for j&j. >> it's more the headline risk right. >> i think that that's what we are lookingat. >> damian thank you. damian with morning sta h inde damage something the latest revelation to the j&j brand? we are joiead by crutchfield, the ceo at dean crutchfield and partnering. welcome back. >> nice to be back. ni to be back. >> how damaging do you think this is? >> well i think it's enormous. i think markets are emotional rational. the big questions companies ask is in a close shaver deep cut clearly it's a deep cut. this is a maj f calamit j&j it's a brand we know and love. a brand as you say that has the name on the front of the pack.

it's one of the brands that defines who j&j are. not so much for b investors for the average consumer around the world this is j&j. ishis children's baby pouder > they were the gold sfd in handling a corporate crisis with the tylenol scare years back. they seem to be at least on the surface denying this repor by reuters. and also the language that is being used seems different this time around. well, last time they had a tampered product three people died. 1982, didn't have the media toverage you get now. they handled brilliantly took the product off the shelf cost millions of dollars to do itut they wanted customers safe wanted the customer confide. here we have a swagts totally the opposite. that crisis is nothing likeis because as you said they've been defensive. typically companies facing a crisis that they don't like they depend or they tend to defend themselves in overly analytical manner and come out with

corporate legal puff. if you look at the response that's what we see. it's on resky,he ceo watch to say how do you deal with the crisis? because this is lingering and continuing. this is where the throat to choke is the ceo and we want to hear from him. >> theanguage i thought was interesting, the use of the word conspiracy theory. if you had to craft a message for them, what would ite? how -- how should they go forward. io well they should look at their v statement. it's about people living healthier and better lives. it about the consumer and t they ne to stand with the consumer and the kind of lives. the respond boldly with empathy. have some humanity. don't send the lawyers after me. send the ceo who canome up with something sensible to say including the fact that you refute the claims. but i need to hear it from you. in and does this give an advantage, do you to other companies that are in kind s the same field? we did the stocks go down

today. has j&j mishandled it to the point where it works to advantage of the messaging of the other players in thatar partic field? >> absolutely. they're going to take a major hit on this an people are walking away from it in the millions. so othere competitors can c in on here and take a position that depositions their brand and the reputation they've got. i mean there is four phases to a kroisz program. the build up, which has been going on months now, the impact stage which is todayosg $40 billion off the value. then the chronic crisis stage. d we haven't see that yet. that's happening next week and the following weeks where the media a the gosh and horror and probe will unleash itself. at j&j wants is when is the resolution phase? does that mea goresky steps down? that's my question zwloo that's a question will be answered i time. and probably be talking to you about that. thanks, dean very much. >> thank you. >> dean crutchfield with dean d crutchfind partners.

in the meantime the investors brushed off relatively strong economic reports including retail sales which rose at the start of the holiday shopping season. sales seincr2% in november, exceeding expectations. economists say consumers are feeling good about job prospects helping to lif spending. a separate report showed a% rice in industrial production also exceeded expectations and was the strongest gai in three months. and now to europe where british prime minister theresa may spent the two-day summit of european leaders looking for rexit oncessions on the deal. but in the end she didn't get it. and eu leaders said their final. agreement was the union stands by in agreement and intends to proceed with iwith certification. not open are for renegotiatven. >> as w reported a turbulent week for theresa may she survived a noe confide vote on

leadership after she postpone e vote on her brexit deal. time to look at upgrades and downgrades. sysco ground i hadded to dp it spending may soften in the new year. the price target is $50. the stock fell about 3.5% to 45.82. may wahl green's rating cut to sell f neutral at goldman sachs. the analyst says challenges in the pharmacy business have intensified. the price farther is $68. the stock fel more than 4% to finish at $78.74. procter & gamble was upgraded to overweight at morgan stanley .basically citing improving outlook for gross margin. the price target is as the 106 and the stock was a bt spot in the market. it rose a fraction. it finished at 96.64. still ahead the market monitor is finding bargains in in seoff. he is naming names. coming up next.

in washington, tonightid prt trump has picked nick mulvaney to be his acting chief of staff. mulvey is currently the white house budget director. e will replace john kelly in the new year. well today's stock market losses wiped occupant oh gains foreehe all three major indexes lower. the selling caused investors to pull money from u.s.utual funds and he etfs at a record pace. according to lipper more than $46 billion was redeemed last week. the lgest weekly outflow since it started tracking inflows and outflows. which brings us to the weekly market monitor.

he has names of companies he says investors nd toet into. they're getting for a great price in the market and names you want to own ove the next year. joining us is hank smith chief investment he officers of equities at has beenersford investments. . nice to have you here. >> good evening, sue. good to be with you. names picked large sca in a diverse field. let's start basically with the first. dow dupont why do you like it. >> well,ll first of if you don't believe there is going to be a recession you've had this big selloff in a lot of the cyclical names like dow dupont. and we think this company is extremely well positioned. they're going to be splitting into three different companies this spring. the history of spin offs is very post-. they have taken $3.5 billion of rists out of the company to spins. all spins are investment grade. all paying a dividend. and think this selloff we have

seen in the past five months in dow dupont represents a real opportunity, particularly with our forecast of no recession in '19 or '20. >> okay. a next you hav stock you call best in class. and that is joon-pp morguen >> it's h thehest quality bank in the world. it has a fortress like balance sheet. and it is returning money to sharolders in both share buybacks and big significant dividend increases. and so, again, if you don't believe there is a recession, the 20% pullback in jp morgan is a wonderful opportunity at a try attractive valuation of under times earnings. >> and we finish up with apple. the stock has been hit quite and it's in bear market territory. but you think it's also kind of a best in class st,k. >> yeah absolutely. it's one of the greatest brands ever created.

and look, apple's stock price has a history of these kinds of significant corrections with o, be markets as you corrected pointed out both in 12 and 13 and then again in 15, '16. so it's had a major run up, big pullback, probably overdone. but for new money coming in you're buying one of the great brands at abe w-market multiple. and again a company with prodigious amounts of cash to buyback stk and increase dichds. >> on that note, thanks. hank smith with haverford investments. a denn paysk. you b that's where with he begin the mechanic focus. pfizer hiked about 6% pruchg a $10 billion-dollar share buyback program in adiagnosis to the $5 billion remaining under the

company's current pla the stock, though fell more than 1.5% t 480. in new core is forecasting 2018 profit above analyst estimates. the largest u.s. steel producer expects strong demand and highee aver prices next year. and that lifted the s ck more th1% to 56.39. starbucks issued a growth forecast. the world's biggest coffee chaie said s store sales growth would remain steady over thelo -term as it expands delivery options and expands in china. we arerowing in china in the mid-teens. and we outlined that china is in a different stage of market development than the u.s. mcis all about store expansion, new unit growth. so that we can create a first mor advantage and establi the starbucks brand in more points of presence in city that is wren and in more cities we are not in. >> starbucks shares finished down 2% to 65.34.

p endoshares fellhead of a 60 minutes report on the opioid kriez. the report focuses o opioid put ut by district are and pain killer attorneys plan to use the data against opioid distributors like endosending the shares lower to $109.19. coming up, women are taking swing. i'm jane wells at west lake golf club in west lake, california where women executives are trying to break the glass ceiling with a little white ball.

general motors is offering etails on its restructuring plan the auto maker said that most of the 3,300 factory workers slated to lose jobs will be able to find employment at other factories. that does mean, however, some employees will have to relocate. gm still plans to lay offbout 8,000 white collar workers and another 2,600actory workers in canada. well, the golf course is has always been thoughtf as a place where business relationships are formed and where deals are done. but the sport is still very much dominated by men, leaving little room for women to climb that coorate ladder. that's why one female former pro golfer is making it her mission to get more women executives involved in that game.

jane wells is in west lake village, california. already, pam. >> a group of women executives in southern california is trying to move fourward. a now lawn the golden state mandates the more than publicly traded companies have at least one female board members. but a lot of women cfo with ceo. cio realize you don't get positions from the resume only but fromsh relatis. busy ot of people golf in felt it was important. it's fun. i really enjoy it. >> so, god that was so good! >> deborah smard is a former lpga tour brought in bypoor to teach it wonderful frustrating g addictivee to women executives. >> if i do quick math i've played with 2ma00urs in lpga sponsor in pro ams.

i t played with women. i spent all my career helping relationships that advance careers. i want to do that for women. >> golf makes you vulnerable and teaches but a potential client or employee while out on the course. for example, you know, do they cut corners or -- howy do t handle the disappointment? you get to learn about the frustration level. what ticks them off. are they really. >> but a funny thing happened in the group. the woen may have gone int the program to learn a newhi to network with men. instead they start to network with each other process. >> because i know you communicate with eac other and getting together outside of the events and nothing makes me happier than that. >> oneeport over the last 20 years says golfing ceos make 17% more money. perhaps the women are nottious just learning to drive for show but to truly putt for dough. for nightly business report.

west lake village, california. >> and before with he go, here is a look at the final selloffe nu on wall street. the dow fell 496 points to 24100. the nasdaq off 159. the and s&p 500 was down 50. for the week all of the major lower. were and that's it for "nightly business report" i'm sue herera. have a great weekend. we will see you on monday.

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