this is "nightly business report" with bill griffeth and sue herera. >> where's santa? that's what investors are asking as stocks are routed once again. is there any hope the jollyd fella makes a stop on wall street to end the year? d.c. drama. a partial government ls to wn, treasury c banks to reassure the investors and the president continues to attack the fed. a all creatingangover for stocks. ut> down to the wire. shoppers are stillhere tatting last minute gifts. that's making reers happy for the holidays. all that and more for this monday, christmas eve, 2018. we do bid you good evening. welcome. sue has the night off. for those on wall street expecting sant

today, it was not meant to be. astead we got the grinch. and growling beathe s&p 500 is now 20% below its most recent high which defes a bear market. we got the worst christmas eve performance for the dow and the .&p turmoil in washington continues to hangver themarkets. we'll have more on that in just a moment. but let's take a breath and look at the day's final numbers. the dow lost 653 points. that was the l of t day. it closed at 21,792. the nasdaq fell another 140 points today. and the s&p dropped by bob pisani tells us if there's any hope of a last minute st. nicke fro >> no doubt investors will find it tough to get into the holiday spirit this year, but could the be any hope for a year end rally? maybe. you might have heard of the term santa claus rally? the santa claus really begins today and that's the tendencyar

for thet to rise in the last five trading days of the year and the first two of the new year.ow you it's good for an average gain of 1.3% on the s&p 500. now thexpsualnation for this is that the first half of december is dominated by tax law selling. ont is cuy stocks for the new year. since volumes are typically light in the second half of september a modestincrease in buying interest produces a modest rally. that mak some sense, but the santa claus rally is usually fred in the negative if santa claus should fail to call, the bears will fallo broad and wall. and versus an average of 2% gain after a santa claus rally succeeds. if there is any hope for a santa claus rally ts year, well, here's the key question. what's the right price at which the buyers are going to emerge? let's assume something. let's assume flat earnings next ye. most peopl assume 8%, but let's

assume $162 for the&p 50 that means no growth next year in earnings what's the right mu the right slowdown it's between 14 and 15 so let's say 14 1/2. that would produce 2,350 on the now. we're just above it.ci that's p in an awful lot of bad news for next year. but at least it's a target. thatis rate we could hit early next week. still time for a rally. for "nightly business report" i'm bob pisani atk the new y stock exchange. to washington around the concerns over president trump firing jerome powell and word that mnuchin called the headsf six major banks over theke weend are all keeping wall street on eds . steve lies >> christmas eve 2018. aders thinking about sleigh bells, santa and get a serious stock market sell-off. it's impossible to know what

brought on the worst ever on the christmas eve. economic weakness concerns, but fingers are also pointing to actions of the trump administration and treasury secretary steve mnuchin. we don't need more bad news. we didn't need mnuchin to be confused by the commentary he was talking about and ame gove shutdown. it adds to the negativity and the concernse have out there. mainly on trade. in my opinion. mainly on the fed. >> among develo ents, monda afternoon, the president continued his war on the fed tweeting quote, the only problem our economy has is the fed. they have no feel for the market, don't understand trade wars or strong dollars or democrat shutdowns over borders. earlier in the day, treasury secretary mnuchin convened a special meeting of the president's working group on capital markets described as a check-in to discuss coordinating government functioning during the shutdowns but meetings only

happen during serious blowups. on sunday, the treasury secretary said he talked to the heads of the six biggest banks and they assured him there's ample liquidity, but no one asked if there was a liquidity r reports that the president was asking if he could fire powell, something that the president does not believe he has the authority to do. but never deny t question. >> i think there are people in sort of communicating that the president is interested in getting rid of powl is not productive strategy. >> and on asaturday,t the stroke of midnight the government entered the third partial shutdown of e year. fears of a weakening economy are real and that there will b cons christmas eve, the focus with us on the treasury and the white house, not on a white christmas' steve liesman. our next guest says now is e and growth

names to yourfo poo. nancy tingler is back with us. merry christma >> merry christmas, bill. >> you ow, it's either john templeton or warren buffett who is famous for saying buy when the fear is the highest. is that where we are right now, do you think? >> i think we're darn close if we're not alrea there, bill. i think it was warren buffett who who's naked until the tide goes out. i think we have seen a lot of investors and particularly those who are passively invested buying more of stocks as ey go and now is the times id with an active manager who's looking -- or you be active y and valuation. >> now, we have a list of stocks apple.u're regular o viewethis program will know that virtually every single money manager has picked apple. and my joke is if youat liked i

$230 twoou months ago must love it. why apple right now, i guess because of the decline? >> two things. this stock hased rea a similar valuation before in 2012 when it hit $700 a share prespli it was trat nine times when it became super interesting to c people lil icahn and eventually warren buffett. but for those of us who slug away at this every wday, what know about apple is a couple things. one is an extraordinary brand and an extraordinarily well managed company that's been raising the dividend 10, 12% a year. and is now trading at 2%. andhe that's been historically the pretty attractive time to step in. it's back to trading at nine times earnings if youack out the cash. and you have to believe that no one is ever going to buy an iphone again if you think that this company is not going to grow again.

services is growing at 25, 30% a year. >> what do you say to the folks who are watching who arabvery nervou the decline may n be over yet. right? what do you make of what's going on on ww.l street right this is a sharp decline this month and much of yeah. you're right. sharp and quick. yeah. so i would say at we have seen we heen market sell-offs ebefore. eight times in the lhet 50 years atear market level with no we usually see a correction of anywhere between 10 an every single y unnerved and those of us o have been doing k has a lot to do lik puth the algorithms. >> the crs are at it again. >> yes. >> nancy, thank you for stopping by.

merry christmas and thanks for joining us. >> thanks for having me. >> nancy tingler. stocksre lower for the year, but there has to be a besr perforr least worst performer and health care is one of the top sectors. down about 2% so far thi bertha combs looks at the winners and the losers. >> there's relative performance to the market and the pullback has seen the s&p 500 horlth care seive up the gains. >> the health care sector has been a major force of the market ere. >> the medicaldevice subsection is themoc taking profits on that had big rallies an big losses for the sector's high fliers. like cardio device. still up for the year it's trading at more than es60 t

expected earnings per share aftequarter. analysts at ubs said in the year ahead, demographicme funals of an aging population still favor device makers. the continued expansion of medicaldvantage bodes well for the health insuranceector ich has held on to the 4% gain for the year. but the legal challenge to the affordable care act can hang over them like well care which t has lost ard of the value in the fourth quarter. the trump administration's proposed rules on medicare drug pricing will pose a majoread wind for drug makerin 2019 like regeneron. the maker of high priced eye treatment which could see reimbursements sk shed. biotech sector is down 14% for the year. but b contrast, traditional drug makers have held up

relatively well durthg the fouarter pullback. as investors have looked to traditional safe havens. sort o rejuvenation of that with the breakdow in the market. again with that potential sort ofoost to defensive posturing, at least the pharmaceutical p stocks should tty well inflated in environment. at l from a technical standpoint. >> merck and pfizer are the dow industrials' best performers lds no doubt king them attractive to investors in a defensive market. fornitly business report," i'm bertha coombs, new york. coming up, the final push. >> it's the final few hours to shop for those christmas presents, but does the recent fawdawn in the stock market keep people awrom the malls? we'll tell you when "nightly busit"

with all of the talk of an economsl down, the consumer does not seem to be listening right now. the "wall street journal" citing mastercard spending polls that total u.s. retail sales with the exception of autos r more than 5% between november 1st and december 19th. and they're not finished either. it is mated -- estimated that 7% of shoppers hit the malls today and over the weekend. and we have more in crunch time. >> it's christmas eve and with gift giving just hoursay a certain type of opper is on a ll mission. men. >> i did some last minute

christmas shopping for my t family. >> lnute shopping. >>mi? >> i shop my best when i'm under pressure. >> everything is last minute. >> the men they're >>ey want to wait until the last minute. es, when it comes to christmas shopping the biggest procrastinators are typically meccording to the consulting firm customer growth partners. they buy more during the few days leading up to christmas which is why items like jewelry and purses tend to be popular purchases during that time. toys and electronics on the other hand are bought morely freq on black friday because they fear they'll run out of stock. while the stock market has plummeted since thanksgiving, the shoppers at the mall on christs eve said it isn't impacting their spending. that said, analyhes think weakening market they ultimately affect sales. >> retailers are not having a wonderful christmastime from the investment perspective right now but i think shoppers are clearly

out there. they have been spending. so it's not encouraging since the online business comes at a lower marginf >> the share spending online does appear to be growing in season, however. data from mastercard found u.s. e-commerce sales jumped 18% between november 1st and the 19trs procrastina may have little choice but to step foot in the mall. 7% of americans are still shopping for the last minute gifts on christmas eve according to the survey by the national retail federation. even though it's cistmas crunch time, no one here at the mall is panicking quite yet. for "nightly business report," i'm lesliepicker, danbury, connecticut. well, let's talk now about how the retail sector may fare this holiday season when all is said and done. joining us for a third time this holiday season, charles o'shea the lead retail analyst at moody's. we are two guys, i'm finished with any shopping.

are you? >> a couple ofo. hours >> okay. >> i think i'm done. >> you'r there.the last minute when we talked on from black friday, you were onh the h end of forecast for sales at around 5% for the holiday season. have you raised that now? >> no. i think we thought 56% and i don't know that we were hedging or not. we don't normally do that but we decided to do it this year. we wenn the outlook for the sect and we wanted to put more meat on the bone and there are a lot of tail winds dr we felt that those were going to realel show thes during the holiday and i think that you'll see that and i think you'll s'19 be a good year as well. >> the job market is strong, that helps. but the stock market doesn't help the old wealth effect we talk about. >> i think for the holiday -- i think we talked about this last time, middle and lower income families r no matter what happens, they seem to find a way to pull a rabbit out of a hat

and make christmas good for their families. the upper e consumer a resilient. they'll have a christmas as well. i think that when you look at the two barbells here on the demographics side, the bottom can kind of offset some things d one of the things that you kind of hope for if looking at that luxury buyer, they bought early before the market start to get a little squirrely. >> before we look onahead, b christmas, the usual suspects you still feel are the ones that benefit the most. in terms of the retailers here. >> yes. >> the walmart's, the target's, best buys, who else? >> tjx, amazon. costco. home depot will do well. that's not such a big holiday business although they sell lot of christmas trees. what we're seeing is a continuation of the thesis for a is better. big the bigger, stronger guys are going to exploit the weak.e ter darwinism. i think that applies the more money you have the better your balance sheet is, the more you have to invest.

the better able you are to build the things you need to compete with the amazons of the world. >> this is first christmas without toys "r" us. who's going to win? >> amazon, walmart and target and the battle for the second tier is best buy. then some of the niche guys that got into to get it into it. >> after the new year, what happens to the retailers do you think? >> i think the song still will do well. i think what you'll see in the early part of '19 is a lot of the weaker retailers decide whether they're going to be there or not. we have got a lot of dt returning and maturing in '19 and '20. we have a lot of distressed retailers who got 35 names in our b-3wnd be list right now. you'll separate the wheat from the chaff here. >> well, i enjoyed our conversations during this season. merry christmas. >> merry christmas toe you too. >> charlieshea. apple is reportedly facing a boycott by chinese consumers and

tonight'sre we begin market focus. japan's nikkei newspaper is reporting that chinese companies are itructing employees not to purchase apple products in response canada of huawei's cfo. some companies are issuing fines for threatening to fire those who don't coly. apple shares finished down more than 2.5% to $146.83. software developer mind body said it's planning private after spending three years on the nasdaq. that company which cates platforms for fitness and spa businesses is selling itself to a private equity n firm forrly $2 billion. it is also being given a 30 d window to consider more attractive offers if they come forward. shares skyrocketed nearly 65% today closi at $35.83. apollo global isn talks with chinese conglomerate hna group to buy product distributors

ingram micro. it is bei reported that hna wants to sell ingram micro for $7.5 billion including $1.5 billion in assumed debt. apollo global management share were unchanged day. small cap drug maker said that the parkinson's disease treatment has been given the green light now by the fda and shares of acorda rose 6% as a result. netflix market share is growing. the guardian newspaper says the streaming giant will have more subscribers tha sky by the end of the year. netflix expected to end 2018 with about 9.7 million uk subscrib esbscribers. ndere down at $233.88. kraft heinz mondelez have been short listed for bidding and both kraft and mondelez foreign portfolio to expand their own global

footprints. the business could sell for as much as $3 billion. shares of mondelez, kraft and heinz and campbell's were all lower with the rest of the market today. well, we're all familiar withity theft unfortunately. where someone pretends to be you to make purchases, t apply f credit, get your tax refund. but did you know that the same d as a mattn the rise of fact. business identity theft was up 46% last year according to dun & bradstreet. andrea day has the story. >> it'seallyasy for an attacker to impersonate a business. r: imagine criminals changing over your company. and running it as their own. without you having a clue. cyber security pro brian vetchy. >> for businesses it could be months or years befor they realize it. >> reporter: it's called business identity theft. at stake -- your brand,re tation, even trade secrets.

fbi unit chief stephenshapiro. >> they'll take on their client lists or the special sauce that makes them operate and compete with them directly and other instances they're pretending to be that >>business. ave you seen where businesses are hit with the attack? >> yes. >> reporter: he says a recent case cost the business $1 billion in market share and hundreds of jobs. i how tought to spot? >> depending on the business it can be very difficult to spot. >> reporter: he saysopriminals ca phony social media accounts that look legit. even start making andng sel goods. what makes this so enticing for criminals? >> criminals have a perception that it's easier to find business's data then for individu a perception that businesses have deeper pockets than an individual would in identi the very reputation of that business. >> reporter: he'sn e

business of protecting those reputas at veronus. >> this can happen to any business. a lotat of the information th you need to impersonate a business is publiclyav lable. the addresses, the phone numbers, the e-mail epdresses. >>ter: he says the attack can start with a data breach from the outside. >> 58% of companies that we looked at last year had more than 100,000 folders literal to ybody who joined the network. >> reporter: he said don't discount threats from within. >> insidersore difficult protect against. they know more about your organization. if they want to doe some dam they can do it very quickly and efficiently. >> reporter: what can you do? the pros' best advice is to restrict data tose t who only fed it and make sure when someone leaves tm make sure they're cut off. if you're a victim, report it right aw that's ic 3.gov. i'm andrea day for "nightly

business report." up next, what hollywood is hang. the king of the seven seasd conquehe box office this weekend. warner brothers and d.c. comics "aquaman" brought in $72 million in the debut which includes ws prev disney's "mary poppins returns" wa second at $22 million. and "bumblebee" was number three. well, the holidays are peri for movies with the range of new titles opening and oking to draw audiences. so how does the julie boorstin has a look. between thanksgiving and

new ayear's is crucial time for mo teheaters and studios. holiday stretch generating 17% of last year's box office. christmas week alone often topping ha aillion dollars at the box office. this year three big franchises film opening ahead of yhristmas. disney's "mar poppins returns" and warner brothers' "aquaman." paramount "bumblebee". >> for the last three years we have had a "star wars" movie opening in midce er. we don't have that this year. but we do have a cadre of films ata nice slate of films th could really boost the box office. >> reporter: even without a "star wars," we' w omrecord. thetic box office will end the year somewhere between 11.6

and $11.9 billion. that's thanks to record breaking films such as "bld k panther" avengers. but it's not just franchise films out around the holidays. >> i want you to -- >> reporter: on christmas day independent picturess opening drama vice about vice president dick cheney. one of many holiday movies looking the favorites and . with aimax and shares down this year, they're hoping to end with a box office bang to drive interest in audience's for next year's batch of films. >> this is an important time for the studios a the theaters to do a full court press on audiences who they're trying to rev up for the slate that's.>> reporter: and next year is thexpected to set anoer box out

of record. again on the strength of disney films. c includingtain marvel, a lion king remake, frozen and toy ory sequels and another "star wars." for "nightly business report" i'm julia boorstin in los angele w befor go, one final look at the day on wall street. the worst christmas eve trading day ever with the dow down 653 points, below 22,000. the nasdaq and s&p are also down 2%. the markets are closed tomorrow, but we'll be here with a special christmas edition. i hope you can jour us. enjoy yovening and see y.

>> this is "bbc world ne america." fundg of this presentation i made possible by the freemafoundation, and kovler foundation, pursuing solutions for america's neglected needs. and now, "bbc world news." >> this is "bbc world news." am lewis vaughan jones. heour top stories --eath toll in indonesia tsunami rises