>> this is "nightly business report with tyler matheson" wi " . >> nerve racking day. investors dump stocks and bought them back. amid all the volatility, what should you do, if anything? >> a bright spot?

shares of hewlitt-packard have their best day since 2001. but you may not want to call it a comeback just yet. >> a hurricane warning for what's predicted to be another active storm season. all of that and more tonight on "nightly business report." >> volatility was the word of the day. investors were pest mystic right from the opening bell rattled by a big stock sell-off in japan, a weak economic report in china and lingering jitters about u.s. markets. the dow tumbled triple digited. by the closing bell, the s&p was down by 5 points. here's a tick-by-tick look at what drove today's wild swings in the market. >> reporter: it started out wild and it ended on the quiet side. the dow dropped as much as 115

points right after the open but rallied in the next two hours and went positive on several occasions before ending fractionally in the red. with worries about higher interest rates down the road, interest rates like reits were weak again today. another problem, weakness in manufacturing and china caused the japanese stock market to drop 7%. china is a critical market for many u.s. multinationals. one big help for the dow? hewlitt-packard. business was stabilizing. they raised guidance. there was heavy volume at the open for the second day in a ru. but heavy selling was met with an equal amount of buying interest. for "nightly business report,"

the new york stock exchange. >> as bob said, one of the fears hangs over stocks is that an improving economy may slow its bond hch buying program. the impression now is good economic news and suddenly bad for the markets. >> the u.s. labor market is improving. new claims for unemployment benefits fell by 23,000 last week. the total number of jobless roles is back below three million for the first time in five years. good news, right? not so fast. stock market futures took a hit. new home sales beat expect taxs, but the market shrugs it off. stocks now seem to sell often every time we get better-than-expected reports on the u.s. economy. so what's going on? shouldn't investors bid up stocks on the prospect of better future earnings than revenue

growth? >> not right now. there's more concern about how the economy will do if the fed begins to taper its $85 billion a month in support. markets tumble globally yesterday after the chairman told congress the fed could begin to dial back as soon as this summer if the labor market improves. >> we're trying to make an assessment of whether or not we have seen real and sustainable process in the labor market outlook. this is a judgment that we'll have to make and we have confidence that that is going to be sustained, then we could -- in the next few meetings -- we could take a step down in our pace of purchases. >> reporter: after those comments, u.s. markets turned negative and it was a sea of red across asia and europe as well. for one, u.s. investors are worried. for another, the prospect of higher interest rates without

the bond-buying is concern, as well. bill, from investors, saw the early-selloff thursday. and that helped the dow from triple digit early morning losses. the u.s. still isn't strong enough to stand on its own two legs. and that bad news, for now, is seen as good news on wall street. for nightly business report, i'm kelly evans from the new york stock exchange. >> so we now have the time to change your long-term investment strategy as the day to talk one way and then the other. we'll chat about that in just a few moments. >> hewlitt-packard knows about good and bad. profits plunged 32% last quarter but raised 17% today. now, c.e.o. meg whiten is right

where it should be. >> hp stock reached 52-week highs. >> so a happy day is here again? not so fast. these results are more a testament to ceo meg whitman's skill at managing expectations. pc group sales came in especially week. but, investors are focused on nongap earnings per share. beneath those headline numbers, it was a mixed bag. pc units fell a whopping 21%. in that department, hp made the opposite decision from dell. hp chose to sell fewer low-end pcs in the quarter. the business suffered, down 12%. printing, networking and technology services held their own. >> there are huge tectonic plate

shifts the way it's paid for, the way software is written and delivered, the way end users engage with technology. there's a lot going on in our world. but we are growing businesses that power a new style of i.t. we've got declining businesses that powered the old style of i.t. but i feel good about -- i feel good about the growth prospects for 2014. >> growth is where all of this hinders. if whitman is going to deliver growth next year, she'll have to either figure out a successful tablet and smart phone strategy or a way to turbo charge the data center. >> i think it's more likely to have the upside and the data center. and, frankly, in the consumer side, they really haven't shown much to make one expect a lot of upside there any time soon. >> so it's not a turn around yet.

but it is disciplined from h hpc suite when it comes to managing earnings. given hp's recent history, discipline alone, it's worth a little excitement. >> retailers earnings are market-focused tonight. let's begin by minding the gap. gap stores are recording a 43% increase in profits. the company's gap and old navy brands did particularly well. so shares did not jump on that profit news after trading less than a percent higher during the day. they close at 41.36. sears also reporting after the close today and posting a loss of $1.29 a share. declining same-store sales at both sears and k-mart locations are now on cooler spring weather. so your shares have been up on the rebound, up more than 30% for the year.

but flat today, closing at $58.17 before dropping more than 10% later on that earnings news. >> dollar tree was the top gaining retailer, reporting a 15% jump in profits and raising its earnings outlook for this year. the discount also increased private label products and added frozen foods. they rose almost 4% to $50.19. and ross stores raised its guidance for the full year announcing a dividend of 17 cent. shares were flat during the regular trading session closing at $65 and change but rose about 1% on that profit news. >> so how should you invest in a market suddenly prone to wild mood swings. your advice is john manly. great to see you again, how are you? >> very well, tyler.

good to see you. >> is this what we're seeing in the last couple of days, the beginning of the widely expected correction that we've been predicting for so long? >> i think this is a buying opportunity. i can't give you guarantees about one or two percent. there's still a lot of money waiting to get in. the market goes down very quickly on minor bad news which says to me people are still itchy. >> they are feeling itchy. they're also very nervous. nay don they don't like this volatility. what should investors do or not do during this phase of volatility? >> decide where you want to be in a year or two or how you want to retire. i think that's really important. yield is a very, very important commodity going forward. >> one of the things i noticed, john, is that generally, as a baseline, you think 65% in equities is a good place to start, given the growth potential there. but you've got 5% in cash, and

nothing, nothing in bonds with the remaining 30% or so in what you describe as alternatives. why no bonds? and what do you mean by alternatives? >> well, we're in the process of moving in that direction. again, we're not going to focus on high quality stuff. on treasuries, there's just no value there. but even that's not as cheap as it used to be. i think you need something to offset some of the volatilities and stocks. i think more and more do that. we try to look at funds for example that actually do that kind of thing. to try and ambulance off with the noncorrelated asset that is not in the bond market. >> like what? >> well, there are a lot of things. you can do long short, you can look at some commodities, both long and short again. there are all sorts of different little strategies to try to get a little more of gerks ep and a little more cpi for your return.

>> are there enough alternatives in that alternative space? >> they're out there. they're out there and they are available to individual investors. you have to look a little bit, but they are there. i think one of the things that's happened has been the democratization of investing to a certain degree. it doesn't mean higher volatility. hedge funds are there to offset volatility, not create it. >> john, you said you're still a big believer in stock. tell us a little bit more of where investors should be putting their money, what kinds of stocks, and stocks that can withstand volatility. >> i think that, first of all, we've been focusing on large cap and it's been recently good. i still focus on large cap, but i would be less strict about it. i think you're going to see more m&a activity.

they've been passed over to a certain degree. i still think we're going to rotate down more. we'll hold onto health care stocks and it's more economically sensitive. >> john, terrific. thanks for stopping by. appreciate it. >> and late this evening, nbc is reporting that the irs, the woman who headed the union at the heart of the scandal and appeared in front of congress yesterday has been placed on administrative leave. >> coming up, this year's hurricane season could be a quite active one. are businesses prepared for what may be ahead? first, though, how the international markets closed today.

some of today's stock selloff has been due to a weak economic china. investment by chinese companies in the u.s. is now at a record high and growing. michelle cabrera has the story. >> reporter: vitamins of every shape, size and solubility manufactured at this new jersey-based company but owned by chinese inves tors. >> driving over this bridge in new york state? it was rehabbed by a chinese firm. chinese companies spent $6 billion buying american last year. a record amount. the biggest investment so far? amc theaters.

a beijing firm bought them last year. regardless of nationality, the goals are the same. >> they have expectations. as you would think, of net profit delivery and returns on investment and attendance growth. but those are not unexpected nor, are they frankly different than a return on ourselves. >> the chairman tells me he's just getting started. he plans to spend another $7 billion in the u.s. before the end of the decade. >> he tells me the u.s. market is the top choice for investing not only because it's the biggest movie market but because the u.s. has the best environment for investors. a legal system is more depending than in any other parts of the world. the ceo of national vitamin corporation in new jersey, a firm he and several other investors bought in 2010. they poured hundreds of millions

of dollars into ivt and nearly doubling the number of employees all from the u.s. . corruption is nearly nonexistent in the u.s. and he's never been asked for a bribe. >> you're well rewarded. you don't have to deal with many other things like connections or relationships. it's a purely business relationship. >> reporter: nearly every chinese executive told us the same thing. building roads in new york state and schools in south carolina. >> investment, environment is very good here. >> reporter: it's one of the key reasons why chinese investment in the u.s. is expected to hit another record level this year. for "nightly business report," i'm michelle caruso cabrera. if so, it would become the

largest chinese acquisition in the u.s. >> hurricane season starts june 1st. and, today, government forecasters predict a stormy six months ahead. insurance companies and businesses are already getting prepared and the big question is are you? >> reporter: batten down the houses, the 2013 hurricane season could be a big one. >> for the six-month hurricane season starting june 1st, an above normal and possibly an extremely active hurricane season. >> warmer-than-average sea temperatures along with near-normal sea temperatures in the pacific behind that forecast. they predict 7-11 will be hurricanes and 3-6 of those could be a category 3 or above. this year's forecast, above the average of 12-named storms and six hurricanes a year.

as for insurers, despite spiking claims, analyst randy binner saying the insurance industry can handle an above-average hurricane season without a big katrina-like storm. >> it's very well positioned to absorb -- you know, anything but the very larnlest event. so a few hurricanes this summer really wouldn't make a lot of difference relative to the overall capital base. >> reporter: the insurance institute reminds you to have adequate insurance for your home. flooding isn't covered by most homeowne homeowners' policies. lastly, for your own safety, have an evacuation route in mind if a hurricane is bearing down on your area. for nightly business report, i'm mary thompson. >> and for more, we turn to evan gold. evan, i want to start by asking you that question.

are we better prepared for this hurricane season? individuals and businesses? >> hi, suzie, yes. there's a couple reasons for that. first and foremost, the tragedies this weekend in oklahoma expect reminders to have people be ready. and the heels of sandy last year that hit so many population centers on june 1st, you know, the dpifirst day of the hurrica season that folks need to stock up and get prepared. next week is national hurricane preparedness week. so hopefully, people will be out there. from a business perspective, absolutely they're prepared. the clients we're working with are constantly prepared. hur kwaricane hurricanes, snowstorms, tornados, you name it, they've come at us fast and furious. so volatility is the word of the day. >> we seem to get better forecasts of exactly where and when storms are going to hit and

with what force. comment on that, if you would, and how that helps people prepare better. and, number two, are you expecting the kind of hurricane season, an active one, that noah is? >> sure, fie ler. from a forecasting perspective, it's gotten better. not only in terms of accuracy, but over a time period. today, in looking at a three-or-five-day outlook is a lot more reliable than it was seven years ago. that doesn't mean that you should get complacent at all. people still need to watch this and keep track and tabs of this event. a little bit for a specific track of a storm can mean significant impact. in terms of the activity this year, you just mernntion lookin up to 20 storms. we're looking for an above-nor 345 mall season as well. on the heels of what happened last year, we only have a couple of major hurricanes, but everybody remembered sandy.

really, it only takes one of them to have a significant impact. >> you're absolutely right with that. so go over some of the dos and don'ts for the companies that are not so prepared? >> first and foremost is, absolutely, be prepared. you've got to have a plan in place long before june 1st, including staging inventory, planning operations, planning logistics, you know, all of those things have to be in place. i think the other thing to kind of keep in mind, especially from a business perspective, consumers buy the forecast. not necessarily what actually happens. if the news is out there saying five days in advance there's going to be a major event hitting, say, south florida, which is an area that's always under the gun and is again this year, consumers are going to be out there buying specific products. whether that storm goes there or not, in some respects is immaterial. the businesses need to be prepared and service value-added members to those communities. evan gold, analytics.

still ahead on the program, a hot new job in health care. and it's one that you probably haven't heard of. find out who's in demand and how they're improving health care for everyone. first, let's check commodities, treasuries and currencies faring today. finally tonight, hospitals, health insurance and farma are looking to harness big data and the growth is pushing demand for new skills, like data scientists and analysts. by the year 2018, the u.s. will be short two million workers with the required expertise. in the last installment on our series on the future of health care, bertha coonz takes a look

at closing that talent gap. >> reporter: it may not be long before explorers out-grows its offices. the firm has doubled its staff to 100 in the last year as its client list has grown more than twofold. >> we've done very well in atrablgting greatal ent. i any that our mission and purpose is key. we've spent a lot of time really thinking about what matters to us. and, you know, our purpose is to really unlock the power of big data to improve health care for everyone. >> but explorers may be an anomaly. in part, fuelled by new digital billing and patient monitoring requirements for hospitals, doctors and physician groups under the affordable care act. burning glass, found while total online job postings happened 6% since 2007 and health care has

actually slowed to 5%. health care forematics has surged more than 50% in the last five years. a pwc survey found two-thirds of hospital executives say after building up their i.t. infrastructure, they're having trouble. >> 50, 60% of those ceos are saying they're concerned, they they don't have the skills to execute the strategy they just created. that's, to me, there's a signal that there's a real issue here. >> it's not just hospitals. pharmaceutical companies, insurers and researchers are all on the hunt for data scientists. a number of health services had resorted to buying the talent they need. in december, an acquired population helped specialty form r firm for an undisclosed sum. in january, united health groups bought clinical benchmarking firms.

could explorists with a growing number of clients be next? >> steve mchale doesn't rule it out. but he's committed to others in the industry to nurture and develop new talent. >> we're involved in university programs right now that are f m formi forming both undergrad and graduate level programs at a rapid rate. >> rong terlong term, that's th way the industry will be able to fill the talent gap. >> you know, suzie in the movie "the graduate" dustin hoffman got the advice. >> a lot of jobs. i hope the ones who are in college will major in things that will prepare them for this. >> and in that data we will find a way to lower costs in the medical care area. >> that's "nightly business report" for tonight. >> i'm tyler matheson.

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