report" with tyler mathisen and susie gharib. >> the bulls are back for one day. citigroup surprises the street with better than expected earnings, put investors in a buying mood. will the optimist continues with results from southeast biggest companies hit the street. super salary. which ceos are bringing home the biggest paychecks. we have the names and the numbers. managing your nest egg. piaa already a retirement agent. will their deal pay off as a way to woo more savers. all that and more for "nightly business report". >> good evening everyone. a beautiful spring day on wall street today and lots of green

in the stock market to go with it. the major averages bounced back from sharp sell off last week and all the end of the s&p sectors were as well. the dow jumped 146 points. the nasdaq added almost 23, ending above the key 4,000 level. and the s&p rose about 15 points. so what triggered all this optimism? investors were encouraged by new retail sales numbers that were stronger than expect ad sign maybe that the economy is emerging from a slow winter. the gains were led by autos and furniture as well as sales at general merchandise stores like target and walmart. solid earnings from citigroup boosted investor confidence. profits for the first quarter came in higher than analysts estimates and citi stock surged 4% on the news. kayla tausche joins us more with more on that surprising report from citi. kay larks last week we were talking to you about this one and everyone was bracing for a

lousy report. what happened? >> not much to write home about. two points where science citi s. credit is getting better so citi has been able to release more money. let's talk about the international sweep of citi. the u.s. bank with the biggest international footprint. do these results say anything about the overall health of the global economy. >> we saw a lot of growth on the asian consumer side and latin america consumer side. that was the runaway growth on the consumer sector. we didn't see a lot of corporate activity. with rates staying loin the first quarter and stock market going up there would be a lot more m and a activity, a lot more refinancing that continued but we don't see that happening

and there also wasn't a whole lot of trading. one surprise, actually may not surprise you, but citi holdings, it is the majority of that is the u.s. housing market. it's subprime mortgages, old line mortgage portfolios. the value of that rose very sharply. and a lot of the executives were just talking about how the u.s. housing market recovery is one of the main stories. >> you're telling us a lot of stuff that's going the way of citi. can investors expect citi give a dividend any time soon? it's been a while since they've seen one. will the federal reserve give the okay. >> they have a one. cent dividend. they didn't pass the capital return portion. executives today on the conference call said they would not be resubmitting that plan to the fed instead hunker down and try to rebuild those process make them morrow bust, resubmit next year so investors have to wait three more quarters for that. >> kayla, thank you very much. citi is just the start of a big week for corporate earning.

more banks are due to report along with a handful of blue chips, coca-cola, general electric, intel. dominic chu with a look ahead. >> reporter: this is a huge week for bank earnings. in addition to citigroup all the other major groups will report. on wednesday bank of america is out before the opening bell, goldman sachs and morgan stanley report before thursday's start of trading. bank and other financial stocks are important for the market because the sector is the second biggest in the s&p 500 right after technology. they've also underperformed as a group for such a long time. even today with stocks near record highs bank stocks are still a long way off from recouping losses from the financial crisis but some see opportunity. >> we do like the financials. we own some of the big names. nice to see wells fargo put up a big number last week. we like the smaller banks as

well because they are the ones that don't have as much capital market activity that will benefit from increasing loan demand. we're seeing good loan growth. >> reporter: banks aren't the only game in town. during this holiday shortened trading week nine dow components will deliver earnings results as well as over 50 s&p companies. including coca-cola and intel tomorrow. google and pmi on wednesday. ge and union pacific on thursday. traders are struggling to fine conviction to either buy or sell this market. earnings will be a big part of the decision. >> at the end of the day earnings is what counts. this isn't a stop market. we need to focus on what the companies numbers are but more importantly what is their guidance looking forward and how are they staying in the economy. >> reporter: concerns are growing where the market peeked. earnings reports are seen as a major catalyst to it is new record highs for stocks or give trade ears reason to sell sean lock in profit. for "nightly business report"

i'm dominic chu. even though stocks rallied today there's a lively debate between the bulls and bears on wall street and tonight we'll hear from both sides. michael farr, president of farr miller in is washington and bear is barry james. gentlemen, welcome to you both. let me begin with barry. tell us, make a case for why you're not so bullish. why are you pessimistic on the markets right now? >> it's just a matter of risk. again, no one knows when the market will go up or down but our risk measurements say there's high-risk. southeast reasons behind that from a macro tap the federal reserve is tapering. in the past two times when they quit quantitative easing the market fell. in 2009 we were closer to one

times book value. we're much higher than that. the average pe on the s&p 500 is 25. probably the most telling thing for the next few months has been sentiment readings. we haven't seen bullishness like we've seen in the past two months until 2007 and bearish levels were not this low going back all the way 2000. wall street is very excited. there are about 50% more buy recommendations to sell recommendations on wall street today than normal. we see insiders are selling. one thing that really gives us the chills is the fact that margin debt, borrowing money to buy stocks is at all time highs. all of those kind of say we're in a high-risk period right now and we should probably take a little bit off the table to try to preserve some capital. >> michael, barry has laid out a very full case here. how do you react to it? i you know to be an extremely cautious guy especially when you're playing with other people's money which is what you do. >> no question about it, tyler.

barry makes a good case. i want to pick on a little bit, some of his data points. in general i don't think you can time the market. alan greenspan talked about ration enamel exuberance in 1996. so it's very difficult to weave your way through this. when barry talked about the market being 25 times earnings he was looking at the schiller pe. the market is about 16, 16 1/2 times earnings right now if you go back to average earnings and take a look at schiller numbers. yes, that worries me from a margin point of view but i think that there are still companies that you find that have good strong balance sheets growing earnings on the top line and the bottom line. you don't have to pay too much for them. i think you own them to weather storms like this and i think you stay invested.

the economy is recovering. it's a slow recovery, but it is coming out of this and we're maybe picking up some traction. i'm certainly not a seller. >> so i want to pick up on that, michael, because a lot of people at home watching this, they've seen in the last couple of days sharp selloffs and some are biotech's, some are high flyers but taking down a lot of the regular stock companies as well. sore you saying put your money in anyway and don't worry about, you know, all of the selling? >> my friend freddy tower says the time to invest is when you have money the time to sell is when you need money. otherwise don't think about the stock market. i think when folks are fearful and you see this huge swath of selling that's when you get your list out and see if perhaps there's some value being created and you want to buy. the stock market could certainly have a 10% correction or 15% correction. we haven't had one in a long time. but, trying to figure out when it's going to be, to me doesn't

make sense and i want to stay invested through the whole period. if you sold out in, you know, in 2008 or '09 you would be in trouble now. if you stayed through you would have a lot more money even after going through that. >> barry, i think you think there's the likelihood of a correction coming but you think the market may well be higher by the end of the year than it is today and second, you're not saying sell everything, in fact, if i read you right you're saying buy selectively particularly in energy. we got 30 seconds if you could sum it up. >> that's exactly right. as we look at today, when over 42 years in this business we know we don't have the high or low but we slice our way out of the market. we've been 55% to 60% now we're 45% to 50% in stocks. there are pockets as michael described of very good companies and we can get them at a discount. it's a good time to move forward. we would say there are higher

risks and actually bonds today as they have been so far this year still look like a better play for stocks over the next quarter. >> interesting place to leave this conversation. i hope we can continue at some point. gentlemen thank you so much. michael farr and barry james. u.s. budget deficit continues to shrink. it's expected to fall to around $500 billion this year. that is less than 3% of the nation's gross domestic product. congressional budget office says the deficit will be the lowest in six years and down more than 60% from the record 1.5 trillion during the peak of the financial crisis. today's projections are lower than earlier forecasts. one reason, lower estimates of the subsidy costs of the affordable care act. americans are also feeling more optimistic about the job market. according to a march survey by the federal reserve bank of new york, they felt they had a 49% chance of finding a new job

should they lose their current one. now, workers under 40 were the most optimistic. they put their chance of finding work at more than 60%. strong gains in the stock market contributing to a hefty jump in pay for the chief executive officers of the country's 100 largesse companies. mary thompson look at which ceos top the list and salaries and perks that accompany them. >> reporter: those at the top of the corporate ladder continue to take down more in pay. >> the stock market was up 26.5%. that's a big factor. >> reporter: with over half of the ceos compensation tied to their company stock performance it figures as the market goes up so too do their paychecks. as they did in 2013. a survey shows ceos at the nation's 100 largesse companies by revenue pulled down almost 14 million in median pay last year, a 9% increase from 2012.

average pay remained unchanged at just over $14.5 million. topping the list as he did last year, oracle ceo. the founder of the software giant awarded $77 million of his 78 million in pay in an option grant. oracle's board ignores shareholders who voted know on ellison's pay for two years in a row. directors don't have to act on it they just have to consider it. by ignoring shareholders wishes now, oracle's board could be causing problems for other boards in the future. >> what this does is it says to public not just shareholders but to the public that advisory votes can be ignored and what that can often do as it has done in europe and the uk is it can result in pressure being put on politicians to make votes on pay more meaningful.

>> reporter: that could mean restrictions on what's paid to the suite. it's the board that decides. disney's ceo is the second highest. he pulled down $34 million a decline from 2012. rounding out the top three, 21st century fox, robert murdoch. he earned $26 million. proving even when you're on top, your pay at least can climb some more. for "nightly business report," i'm mary thompson. still ahead, details on the multibillion dollar deal that's lifting retirement giant piaa into the top ranks of the u.s. mutual fund business. that story next.

a marriage of two money managers today. piaa craft is buying nuvene investment. the merger is partly the result of the changing way people are saving for retirement and increasing competition to manage your nest egg. bertha koombs has more. >> reporter: they are already the leader for retirement funds and nonprofit institution with 5 million customers. adding nuvene investments could help it expand. >> as the retirement industry moves away from pensions and into the defined contribution or 401(k) plans having a big presence there can be really important to tiaa craft.

>> reporter: nuvene is the largest manager of closed end funds. analysts say the acquisition valued at nearly $6.3 billion will provide tiaa craft with a new revenue stream to pay its pension clients. >> instead of having corporate bonds or u.s. treasuries or commercial mortgage loans as an investment, some of the money will be in an investment called nuvene investments which which pay dividends to the parent. another sort of earning asset for tiaa policy holders. >> reporter: just as important, tiaa says the deal will allow it to provide its clients with wider range of investment choice and tax exempt bond funds and real estate options. >> it's a comment on how scale can be helpful in the retirement business and having your fingers in a lot of pies. we see a lot of complicated products and investments in retirement plans and this gives

the firm a few more options to deal with. >> reporter: the acquisition if approved makes tiaa craft a much bigger player, bringing to it $800 billion under management. but it would still lag well behind fund giants like vanguard group with nearly $3 trillion under management and blackrock which reported $4 trillion last year. bertha koombs, "nightly business report". google said it agreed to buy titan aerospace. that's where we gin tonight's market focus. internet search giant wants to use the high altitude solar-powered drones to collect images and get more of the world's population online. no word on how much google paid for titan. facebook did end up purchasing its own drone company so there it is called assenta. google shares rose 1.5% to $545.20. more on facebook. it's apparently no longer

content with being just the largest social media site. it's preparing to provide online financial services starting in ireland. facebook just needs the approval of the irish regulatory board to offer users several types of financial transactions online. shares of facebook up slightly today. web md said it expects to report strong first quarter results at the end of the month. anticipates reaching the upper end of its annual earnings and revenue projection. the health information provider says 32% more people used its website in the first three months of the year. that gave a big boost to its ad sales. shares surged to $43.87. and general motors gained ground after said it's replacing executives in charge of communications and human resource. it's not linked to the on going safety crisis. gm attributes the move to mary

barra who took over in february making her own hires in key position as she builds her own team. shares of general motors up 62 cents at 32.55. medical device maker edwards life science was the best performer in the s&p 500 today. it got a farvable court ruling on a key patent. federal judge has reaffirmed an earlier ruling that the core value system infringes on edwards patent for replacement heart valve. a share surged to $81. medtron fell. goodrich petroleum surged on news it drilled it's successful well. that bolstered confidence in the field and production potential of that area which spans parts of louisiana and mississippi. the stock rose more than 30% to

$23.96. and twitter's ceo said they have no plans to sell any of their company shares. the reason is twitter debuted at $26, jumped to more than $74 in less than two months but has pulled back sharply. shares closed today at $40.87. the harsh winter weather took a toll nings's farmland and this evening in a new government report we get a first look at the damage that was done and how much of it impacted it may have on the spring planting. we have the details and what it may mean for the price of food. >> reporter: by all accounts it was a brutal winter even though the weather may be looking up that doesn't mean the damage hasn't been done for farmers. last week the usda revised and tightened its crop estimates for last year and today it said the 2014 planting pace for corn was 3%, that's in line with analysts

expectations but below the 6% five year average. what does the crop report mean for your wallet? it could mean higher prices this summer at the market and wouldn't just be for fresh corn also be for packaged foods that use corn as an ingredient. harsh winter weather didn't just impact corn's planting pace but also hurt other dormant plants. broken limbs and torn vines, some are beyond repair. in some cases the extended winter chill delayed budding all together in other case buds popped then froze. damage to peach and cherry trees. some growers fear their entire lot is gone. and the drought has hurt california citrus industry. 40% of california's orange crop and 20% of its lemons could be lost. amounting to more than $400 million in loss revenue. add it all up and fruit prices may jump 2.5% to 3%. to add insult to injury, beef

prices are at their highest level since 1987. just in time for growing season. that's because less corn meant less feed for cattle which translated to less supply. couple what the an increase in export demand and beef prices rose 25 cents from january to february. industry analysts say there could be more hikes to come. what does it all mean? hold on to your wallet this summer. for "nightly business report" i'm jackie deangelo. coming up meet the company that's trying to develop the next big thing in technology. that may one day make your smartphones and tablets obsolete. that's next. the future may be a lot closer than you think. imagine not needing your smartphone or tablet and instead getting all the information you need from a pair of glasses.

one silicon valley start up is trying to do that and sees endless possibilities for consumers and businesses. >> reporter: up in the hills above silicon valley 30 engineers live and work together in a modern day commune. >> we're looking at a model of a house and separating the various layers of it. >> reporter: welcome to meta a leader in the growing field of augmented reality. put on the glasses and your reality is enhanced with polograms that you feel you can touch and move with your hand. when i tried it i saw a 3-d image of a building i could examine and move around the world. it could appeal to professionals who want to work in 3-d environments with their hand. architects can show hollow grams of their buildings to their

clients. it's already been in touch with boeing about potential applications. there's big possibilities in the field of visual entertainment. >> entertainment and gaming are extended benefits from this. people just want to see 300-inch tv screen in 3-d and see the jurassic park dinosaurs. >> reporter: they have raised $10 million in its first year. it's high-profile investors include dolby digital, and tony shay. the glasses will be available through its website this fall for $3,000. the company's ceo sees disruptive potential in the technology. >> then could you begin imagining a world where you don't have to carry around these flat device and remember if they are charged and remember, you know, if you bought them in your

suitcase to work today. you just have a pair of glasses that encompass everything. >> reporter: it may be a long time before it is the must have product that replaces our smartphones and tablets. the technology is still in its infancy. it is often compared to google glass which goes on sale tomorrow for one day only to the public. google's wearable let users search the web, use apps and respond to voice commands but with meta you can see objects in three dimensions while google is 2-d. he's not interested in selling his company but wants to turn it into a transformative powerhouse. we'll see if companies are excited as he is about his hi-tech and high price glasses. and finally we leave you this. some good news as many americans are racing to meet tomorrow's tax line. your chances are being audited are lower than they've been in

years. steep budget cuts means internal revenue service has fewer agents auditing returns. last year, the irs audited less than 1% of all returns from individuals and according to the irs commissioner this year the numbers will be lower. feeling better, tyler >> that's a small comfort. >> did you get your taxes in? >> die. >> that's "nightly business report" for tonight. i'm susie gharib. >> i'm tyler mathisen. have a great evening everyone and we hope to see you back here tomorrow night.

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