this is "nightly business report" with bill griffeth and sue herera. wall street angst. the dow falls below 23,000 as investors find a numbeasof s to sell stocks. spending standingthf. president demands money for his border wall, raising the possibility of a partial government shutdown. just do it. and that is what nikedid, running past wall street's earnings estimates as it faces a number ofbal challenges. those stories and more ton "nightly business report" for this thursday, december 20th. and we do bid you a good evening, everybody. anwelcome. wall street was once again rocked with equities small experiencing another substantial selloff. and the nasdaq, the same ierex that p the bull market

higher the past decade is now flirting with the bear after today's decline it has nowll almost 20% from the most recent high. and right now the overall market is on pacor its worst dember since the great depression,s 1931. leet to the numbers for thursday. dow average plunged 464 points, down more than 600 points for a time. as sue mentioned we're below 23,000. the nasdaq dropped by 108. the s&p fell by 39. so investors are clearly still uneasy. and it appears that the wavef selling is is coming from a number of fronts. which we will be exploring in evening. bob pisani starts us off from the new york stock exchange. >> the markets continue to throw a temper tantrum the stocks managed to end off the lows. the dow plulgd 67 points at the worst. the fedeeting was the last market catalyst to be 2010 but the markets grapples with issues

including trade war uncertainty. brexit concernsnd global economic slowdown. the problem is no one is sure how bad the slowdown is. so these are all old issues for the ma and they've been coping with them a few months now. but now two new issues. the fed with a less than friendly tone on rate hikes and now looming government shutdown with border and security spending. there is no reward for buying on the dips lately. maybe not until the next year. where are buyers. retail investors are froze. hedge funds in redemption. and companies are oing buy barkers but there is a limit how much they can do. the markets have taken on a life of the own and there is strange technical pressures np new lows in s&p.ud cre sink fog 15 month lows and a lot of internals extreme. more than 1,200 stocks hitew lows at the new york stock exchange. we haven't seen that in more th a decade.

e question is will anything end the buyers strike? for nightly business report. i'm bob pisani. >> s investorsnt another day digests with the federal reserve said yesterday about theconomy and tath of interest rates. but what exactly is confusing investor t is ithe central bank communication or its policies. steve liesman dives into that on >> reporter: the market sent a clear message to the fed. what it's selling about theed need for tighteric monetary p the market isn't buying. it's rare to havea suc dfrgens between markets and fed. raising the question doe the chairman have the market's trust highlighting the question the market sold offer hard a powell insisted the fed's forecast to raise rates twice neir year depends ey on whether the economy is strong enough. the market seemed to hear the fed is hiking no matter what. many in the market said they wanted the fed chair saying he would ease tff pla reduce the fed balance sheet. but powell said that plan is on

autopilot. sticking to a script dating back to janet yellen >> t bottom line is that i didn't see what the risk was foh fed to just say, you know, we'll wait until the next meeting or the couple of meetings and wait and see how things play out. they have raised rateti three s this year. when you look at the cumulative tightening into the system including the balance sheet, basis points for basis points it's 325 bpsz o tightening already in the system. we haven't seen that hit the broad economy ye >> some applauded the move specifically for not knuckling under the pressure from the markets. >> powell seems to me a level headed man who is doing his job. he is not intimidated. and we've had very low federal funds rates. they've been negative for years. it's about the time they come up to zero or something like that when the economy is showing signs of sength. so i'm compressed with what he is doing.

and seems to me it shouldn't stir the markets a whole lot. >> part of the problem is that powell fed seems to have trouble managing expectations. investors clearly wanted a more dovish message than powell intend to deliver. the market seems to be surprisef by the undermining trust. the good news, the market and the fed parteds w spou with a temper tantrum. the fed regrouped andai rd the market's confidence but it was rough sledding then as it is now wit markets and the fed not on the same page. for "nigh i'm steve liesman. >> meanwhile, the odds of a partial government shutdown are a lot higher tonight than yesterday. the president today switched course and said he will not sign a spending bill that does not include funding for a border wall. >> i'm asking congress to defd th border of our nation for a tiny fraction, tiny fraction of the cost. lssential to border security is a powerful physi barrier.

walls work. whether we like it or not. a well that threw lawmakers curve ball just ahead of tomorrow night's deadline. ylan mui is on capitol hill tonight. and we know the senate voted a bill last night -- passed one without the border wall fundi t. it falls the house to get something done. and they cancelled all the plans for today otherwise. where do we stand tonight. >> things are really in flux here on capitol hill. whether or not to include money for the borde wl in a short-term spending bill that would keep the government open through february 8th. that's a fundamental disagreement between republicans and democrats. republicans believe this is something that's very important to their base. they feel it's a campaign promise they want o deliveron. they want to have the opportunity to vote on it. mocrats however remain united in the opposition against in wall. they say it'so way that they are going to vote tor it no way they are providing support for it. he so we appear to be an

impasse. when both sides are hardening ir feetns and digging t in the ground that means compromise is that much more difficult on capitol hill. >> since we find ourselves in that situation let'so through how much of the government would be affect first degree a shutdown happens, because it's not all ments. >> that's right. so this would be a partial government shutdown. both chambers have passed bills to fund about 75% of the government but some key agencies would remain unfunded. and that includes the treasury department, the irs, the small business administration, definitely some agenciesery important to the business community, investors as well. and you also hav r toember that this is really important to the federal workers who are employed a those agencies. they're facing a possibility of not getting paid during the christmas on. so it looks like the holidays may not very merryorthem. >> all right. ylan, thank you. a lot going on. we'l g let you back to that ylan mui on capitol hill. and adding to the news out of washington, very late today we efarned these secretary james mattis will retire at the

end of february. on this tough day for the markets let's te a closer look at what drove the selloff and what's said among the traders on theheloor of nyse joined tonigh by keith glis president as katonin company. thank you for being with us. >> my pleasure. >> what was the feel down there? and what does your gut tell you abat's going on in this market given the many years of experience you have trading it and covering it? well, i think one of the biggest problems we have is the brkage of the seasonal factors we have been dealing with for years and years. it's been widely reported this is going to be the worst december since the great aresi depr. and december is usually the best month out of the year. when you see that y breakage know something dramatic is happening inside of the marketplace. we startedf course to see the signs in november. and then once we entered kn december, you, all heck was

breaking loose respect when you have the russell 2000 down 13% for -- in the month of december that's a problem. so the mood on the floorne is of you know defense. we're playing defense every time we walk in herend it's tough not to do that when you walk in every day whenou see red figures. >> the key for us so point to the today day a's news yesterday the fed. today the continuing resolution in washington that may short the government shutdown. >> but it feels lik this is feeding on itself. mutual funds and hemnd funds pension funds that want to get out of this market because it's going. low it starts to become a self-fulfilling property are prove. >> you and i have talked about this many times o yr thers. it does take on the front. all it took was you know one match to really light the fire. it appears that match was the trade dispute with china. once we started getting selling pressure and things come in appear and i have to say the

confluence and the perfect storm of negative events impacting the market whether a messy brexit exit or the global slowdown or perception of a global slowdown. whether pentially not funding the government and the government shutdown. all of those factors start to feed in upon themselves and then the marketh plaerps be humbling funds, mutual funds and let's be clear here also the algorithmic program tders out there. those things trigger and has a massive selloff. i can tell you this pasteek we saw selloffs occur at almost 2:00 every day. within a we could see that coming. i say it today. dare say we may see i tomorrow. what we thought the feeling on the floor what you were talking about before is that i thoughtn we were g to have the dow down 1,000 points at that stage. and it's been the pattern that we have seen. bill youht are r it becomes a self-fulfilling prophecy. people feed on it lk for a reason to sell. as bob said in the lead into the show inhe his piece, is a buyer strike going on especially when you consider we're at december 20th.

>> keith, thank you so much. bill. well it's called a case of economic espionage. the justice department charged chinese hackers in a global scheme to stealre s from corporations and governments. and america's aies sending a message to china that this behavior has to stop. eamon javers is at the house tonight. >> the united states department of justice today unsealing this indictment against two chinese individuals that the department of justice says have been involved in a yearslong scheme to steelecretaries secrets from america's dop top technology and defenseco anies. the few individuals ha, and long. the u.s. says they worked wit a private sector company in china but also worked at th behest of the chinese ministry of state security and intelligence agencies. the u.s. government ultimately asserting here in this unsealed dictment that they were involved in activities against a

wide rangeri of an companies, including companies n a number of sectors, including space and aviation, manufacturing, pharmaceuticals, oil and gas, communications, couter processing and maritime technology. rod rosenstein, the deputy attorney general said the chinese government is on notice that the u.s. government knows that it'seen stealing secrets. >> faced with the detailed faayual allegations t and the corroborating statements not just from the united states, but from other victimized nations, china will find ito difficult pretend that it is not responsible for these actions. >> it's not clear when the two accused chinese officials might ever see the inside of a courtroom because the chinese government is not expected to extradite them but today's indictments coming alongside a global push by the united states and allies to issue statements name this particular attacker as coming from cna trying to put political pressure on the

chinese to knock it o. for nightly business report, eamon javers at the white house. it is time to look at upgrades and downgrades. humana was upgraded to overweight from neutral and yp morgan. the analyst cites factors including humana recent mechanic share gains and medeare advantxposure. the price target is $ 33. thehares fells 1.5% to 278.09. e paint mak ppg was upfwraded to sector perform at rbc capital markets. iting favorable raw materia pricin the price target is $121 dlrs. the stock rose a fraction to 97.07. still ahead nike's run away quarter.

let. >> the stakes were high for nike and the company did notittes appoint. after the bell the dow component turngd turned into a strong quarter thanks to strong dman in the key north american market nike earned 52 cents a hair. better than estimates. revenue rose by 9 peppers to more than $9 billion and the stock took off in after hours trading ton. sarah eisen has more on results. >> wall street may be worried about a global slowdown but nike is not feeling it. across the board beats for nike on earnings and sales. if you look around the world it's strong everywhere. greater china and importar growth dri for the company

plus sales gained 27% despite the trade fight betden the u.s. hina escalating. north america, its home market and justtl recy turned around, grew 7%. better than analysts expected. even europe, which is seeing a slowdown in economic growth saw 11% growth and 15% for emerging markets. adde up it for a company getting 60% of revenue ovsees there is a lot of hammering from the the every inves dollar weakness but nike managed to beat ontr thegth of new innovations like vaber max which is speaking to consumers. for "nightly business report" sarah eisen. >> let's talk about the key take aways from the nike quarter and whether the moment up the company cancontinue. we are joined for brian naegel and senior analy at oppenheimer. he has outperform on the stock

with a $90 price target. good seeing you. >> good tsee you too. >> it looked like across all sectors very solid report. >> very dsolid. i woay this is a stellar report from nike. like you said in the intro, across all metrics we saw real strength her from obviously from a sales perspective and me gross margins telling they are selling full price product not stuchng discoun here. >> what about the trade situation? china is a big trade for them? what about the currency translations. >> any of th'l worry. >> answer that this way. as i talk to my clients every utday we are talking a or discussing or handy capping the potential for economic slowdown here in t united states and brewedly. but this is the most recent data point ar me nike couple mourps ago we're simply not seeing it. this is a company that sells high-priced discretionary type items. in sales, they continue toor pe well.

my team we were on the conference calwhlistening to nike was talking about guidance, telegraphing even behrer sales growthgh the year end of may 2019. n froms one more indicat my vantage point that again the consumer onomy, consumer demand is good here. >> it's interesting also because they have competition from the so-called soft shoe category like some all birds and some of the alternatives. but that doesn't seem to be hurting them at least >> no, i agree. and i've maid this point before, make it agai i really think this emergence of the newernd like all birds and the others out there as well. those companies have made nike stronger. i see this throughout -- i cover a number of larger retailers and brands. >> um-hum. >> this is competition like thir here. what i'm seeing this has been the case in the the last one or two years where the established brands like nike have really woken up to in new competition

and become even stronger. one of the big themes right now with nike iverything they do digital. this is a digital company. largely a tech companys and tha allowing them to design better products quicker and more -- most importantly really conhct directly w the consumer. >> brian, thank you. >> thank you. >> brian naegel with oppenheimer. >> wahl greens wants to save $1.0 billions thaere with he begin the market focus opinion the dow components wants to cut aual costs by that much in three years. also plans to invest in partnerships as a way to stay competitive. meanwhile wall street -- wahl greens reported better than expected earnings in the recen consider quarter and rice in sales however the stock fell 5% 69.51 blackberry reported better than expected earnings and revenue in the recent quarter. citing the strategic shift to software using things t dwell driverless cars. as we know blackberry was a smartphone b pione lost out

to apple and android devices. sharesose more than 2% today closing at $7.50 5 a. package foods maker conagra reported weaker than expected revenue in the recent quarter. the company say it was hurt by delayed shipments and weak demand for some of its grocery brands. conagra sold fewer products to restaunts and to caterers. sending the stockown 16%. carnival isss a disappointing outlook amid fuel costs and currency flukt wakes analysts say it could mean the cruise line have is having a hard time raising fares. any topped quarterly profit and refer are knew estimates. but investors focused on the guidance sending the stock down 19% t 49.79. and everies get the first chance to react to a partnership between a ab and tilray. yesterday the two companies said

they will jointly research non-alcoholic beverages including non-marijuana and thc and cbd. the smars are limited to canada. tilray gained 10%. cigna closed the $54 billion deed to buy express scripps creating one of the biggest providers of pharmacy benefits in thecountry. the combination they say will help cut costs. shares of both companies fell. cignaff 7%. express scripps down 3%. it goes without saying that it's been a tough year for facebook given a series of controversies aut how it handles user data. since the stock peaked in july it's down 37%, erasing aut $245 billion in market value as a result. and other costs are building as well. julia boorstin joins us tonight with that part of the story. we've been reporting on the controversies surrounding facebook fro the lawsuits, possible regulations, what kind

of costs are we talking about here, julia? >> well i think it's worth noting that t stock did hit the all-time high inall. you mention the decline since then. even year to date, bill, facebookhares lost 24% year to date and for mark zuckerberg founder and ceo of facebook that means his holding of facebook declined in value by about $20 and the additional issue of fine nas facebook may be facing.t facebook was j sued by the washington, d.c. attorney general. and forcy pri violations. and if the attorney general wins then facebook could face about $1.7 billion in fines for that issue. and thenk if faceb is found in violation of its agreement with the federal trade commission, that could be additional fines.s of dollars of >> let's talk about the reputational risk. and theit that that has had on facebook. can we measure >> well, it's hard to measure the real question will be what

we see on the next earnings report, whether weee the user base is stagnating or declining. it's too soon to get hard numbers from facebook on that. but it's notable that the naacp as well as other civil rig organizations did call for a boycott this week because of facebook's wrack recordh data and privacy issues. and there have been calls on twitter to delete facebook. the top trending article on w twitten you seashore for facebook on twitter with "the new york times" arm on how to delete facebook. we will see how it impacts use zbleers quickly before you go this is not lost on advertisers, is it? >> well it's too soon to say what happens, especially with the big brand tierszers. the small and mium size businesses are less likely to leaveacook because it's simply one of the best ongss they have. bo'll see whether the big brands get concerned brand safety issues. >> julia boorstin in los angeles. thanks, julia. coming up, last minute

shoppingh. p why procrastinators might be in luck. theiggest american cigarette company has made official what we have been reporting. altria is taking a stake in juul, the e cigarette company. the 35% stake is worth nearly $13 backup. this ises altria's l move to look for growth beyond tobago. >>f and for all you holiday shopping procrastinators you know who you iare. >> thes a way to skip the ng lines and avoid dreaded shippingees. d retailers hope you take advantage of it. courtney reagan in new yk for

us. >> reporte if you still have shopping to do before christmas, you are not alone. about a quarter of americans are still checking off the lists. but you are running short on time. >> only ha halfway down. >> we came up from philly topi sh in new york. >> i'm in the middle of actually going to thee gstop. >> the delinquent deadline for not expedited shipping passed for many websites but buy online pick up in store is an increasing popular option for procrastinators online sales are up almost 18% this holiday season compared to last season with with by online pick up in store orders up 47s% according to adobe. >> this is the firstin tim three years we measured where we saw performance increase for all 'stailers. this ye top five for buy online pick up in store were bed bath and beyond. best bu's ko wab target and home depot. >> during the year about half of target.com orders are picked up in stores. but in the final days before christmas it surges to 80%.

the retailer expects theay hol season order pick up volume to be three times last year'sve dick antibiotic sporting goods expects the online order u pick will triple closer to christmas zpl old navy says it's breaking records with the amount of buy online pick up in store orders this holiday season. most orders are rtd in two hours. and up to arter of shoppers end up buying something else when they come in to pick u the online order. something other retailers are seeing as well. i forgothat i bought six months ago and i keep buying more on top of that. >> i do onlinen a then i do like o go into shops or whatever but i hope done by friday. >> kohl's designated parking spots for those order pickups. target is offering drive up where the employee brings the ordered. and old navy is giving free round trip lyft rides to and from the store. but the fast click and collect orders are still using store inventory. so the closeter gets to christmas, the riskier it gets

to find what look for. for "nightly business report," courtney reagan in new york city. and before we go, here a another look at the day on wall it was not pretty. the dow plunged 464 points. e nasdaq dropped 108. and the s&p 500 fel 39. welcome back, by the way. >> thank you great to have -- fies to have a voice again. >> i know. that will do it for us tonight. i'm sue herera thanks for joining us. >> i'm bill griffeth. have a great evening. we'll see you tomorrow.

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