. this is "nightly business report" with tyler mathisen and susie gharib. brought to you in part by -- >> the street.com. featuring stephanie link who shares her insights with action alerts plus, the multimillion dollar portfolio she manages with jim cramer. you can learn more at the street.com/nbr. late day dive. heavy selling into the close of trading sends the dow down more than 200 points. its worse three-day loss in almost three years. buckle up. banks and technology companies, two of the most heavily weighted sectors in the september 11th suspe -- s&p 500 out with its earnings this week. on the radar, what the

central bank is concerned about now. we have that on "nightly business report" for monday, october 13th. good evening. welcome. columbus day was no holiday for stock investors. they sold off again and hard again. the usual stew of recent worries gets the blame slowing global growth, isis, ebola and now corporate earnings. they start flooding out in earnest beginning tomorrow. today's sell-off accelerated in the final hour with no discernible trigger, but as the major averages broke through some technical levels, investors pushed the indexes even lower. at the close the dow had tumbled another 223 points most of the slide coming in the last 45 minute. nasdaq down 62, the s&p 500 down by 31. blue chip dow stocks now at a six-month low. nasdaq and the s&p 500 at five-month lows. besides earnings season kicking into high gear, what else is causing all that turmoil in the

markets? bob pisani takes a look at three things investors are watching closely this week. >> we are entering the heart of earnings season. about 75% of the companies in the s&p 500 will be reporting between now and the end of october. several banks report this week. for big nationwide banks like bank of america and citigroup traders will be looking to see if trading volumes for bonds and stocks have bounced back, but for the average bank, the key to this quarter is loan growth. there's been some concerns that loan growth is slowing down particularly commercial and industrial loans, the positive comments from bank manager last quarter. interest rates still are not moving up. higher rates would help banks because they'd be able to charge more for their loans but that isn't happening yet. the second thing to watch is signs of weakness or stability in europe where the economic data has been poor recently. we'll get industrial production numbers in the eurozone

tomorrow. if europe continues to get weaker there's little doubt the european central bank will step in with an aggressive stimulus program. finally, and this is the biggest wildcard of all, further outbreaks of ebola could affect trading. the cdc says they're concerned about other infections potentially in the coming days following the infection of a health care worker who treated the man who died from ebola in dallas. even though there are only two diagnosed cases in the u.s., there's a high sensitivity to this. for "nightly business report" bob pisani at the new york stock exchange. with so many firms posting earnings over the next few weeks which ones have historically gotten the biggest bump up or the biggest slide down after reporting? dominic chu takes a look. >> it often drives rolltity for the companies reporting. among the best performing on earnings day is beverage company

keurig dream moucur green mount. it has risen an average of 12% in the trading session immediately following its earnings report. it was helped along by a huge gain earlier in the year after announcing a big investment by coca-cola alongside its earnings report. among the worst performing stocks is office supply retailer staples, which has fallen an average of 6% after each of the last eight earnings reports they've had. while those two companies are the most volatile it's the biggest sectors and stocks that will get a lot of attention this week. >> if you look at the way the s&p 500 is kind of constructed its financial, info tech and consumer discretionary, every one of those is expected to have very powerful double digit earnings growth in the next quarter, which will be kind of a really perfect situation for a broad-based strong market. >> tech and financials are especially important because they are the two biggest sectors

in the city s&p 500. large tech companies like intel and google as well as banks like jpmorgan and bank of america could help set the tone for the rest of earnings season. each reports earnings this week. >> earnings do matter. they matter greatly. so i think it is something very important to watch not just the earnings as they were for the third quarter but what the companies propose for outlooks year end and 2015. >> many experts believe earnings growth will be there but whether it's enough to carry the entire market higher remains to be seen. bank and tech earnings could go a long way in shaping things over the next few weeks. for "nightly business report" i'm dominic chu. >> how much of an effect will earnings have on this already volatile stock market? let's get thoughts from joe duran, ceo of united capital financial advisers. joe, between the actual numbers and as between as opposed to what ceos may say about the future, which has the greater

potential to shake the markets over the next three weeks, the numbers or the words? >> by far the words. i think what you'll find is people really don't care about what's been because it's been and care a lot about what will be. and the stock market is a gauge of the future. so absolutely what they say about the future is going to drive what happens for the next month or so. >> joe, tell us a little bit about these two big sectors we'll hear from this week, the financials, citigroup and jpmorgan, technology, intel is just one of them. what are they going to tell us about the health of the sectors and the health of the u.s. economy? >> i think what they're going to tell you, two things. one, are they going to use all of the new macro things that have been happening from ebola to prices and the collapsing dollar as an excuse to prepare people for bad news. that's the one big concern that everyone has. and second, are they going to

sell through it? so the banks, they've had a very interesting interest rate environment, if they've been hedging in their own way, that's a problem. intel derives half its income overseas. the rising dollar could have an impact on its future sales. what they say about those two things in the future are going to have a big impact on how the market reacts. those big bellwethers will be telling about whether we should worry about the next earnings report. >> so is the market vulnerable -- let me pose it this way. do you think the ceos will be very cautious in their forward guidance because of all the things you just mentioned? >> i absolutely think they have reasons and ability -- remember, ceoss looic to outperform. >> sure. >> if they have a good reason and good set of excuse, for example, intel could very well say the weakness in china and everywhere else allowed us to hit the numbers and we expect to hit them in the future but open the possibility that there might

be surprises that are not positive. that tone, i think what you're going to see is a wider range of possible outcomes. as you become less confident in the outcome, you become less certain and you get higher volatility. that's what we're seeing now in the market. >> do you think investors are really going to be paying attention to what the ceos are saying in the sense that they already know that europe is a problem, they already know china is weak. the details from each individual company, does it really matter that much? or is that already priced into the market? >> i think a lot of it's priced in. that's what we've been seeing. but you have to remember we've had this very big stock correction, the russell 2000, the smaller companies down 13, 14%. the big caps have held up well. what we'll see is how big is the impact going to be across and are we going to have the time of 4% correction. the earnings matter a lot, the words of the ceos matter more, what the fed is doing and what happens with the economy is even more important. so all of it's intertwined and

we're at an inflection point clearly with the fed stepping away where earnings have to be able to keep up even with the fed stepping away. >> you pose the question are we going to have a 10% correction? is that the next big headline for us? >> i think it's going to be very odd if we don't get to 1800 on the s&p. i think it's a natural progression point. there's a lot of support there. my suspicion is we'll be probably flat by year end which is not anything anyone wants to hear. basically slightly up, single digits. but the volatility will be higher. we take care of our clients' entire network. we've had an incredible goldilocks environment where the stocks have done okay, the fed's been there to protect us. the fed is stepping away. we'll go back to a normal environment. 10% declines every couple of years. it's been four years since we had one. it just means you should be prepared for it in your portfolio. >> joe, very clear. we appreciate it, as always,

you're being with us. joe duran. >> one of the sectors responsible for the sharp losses in the nasdaq lately semiconductor stocks. the s&p semiconductor index has tumbled more than 16% in the past month alone putting the sector in correction territory. morgan brennan joins us from the nasdaq with a closer look at this key sector. morgan, just start off by telling us that, they've fallen. why have the semiconductor stocks fallen so much since their height in september? >> it's a great question. semiconductors has dropped dramatically over the last month but we've seen the lion's share of those losses in the past week alone. this is on the back of micro clip technologies, one of the smaller semiconductor stocks in this space relatively speaking. a $9 billion market capitalization. the company coming out last thursday and warning on revenue for the third quarter citing weaker demand in china and the ceo saying the overall industry

is on track for a correction, on track for a pullback, that has sent all the chipmakers down in response to that including intel that's down another 1% today, down 8% in the past week. investors will be watching that very closely because of those comments last week. >> morgan, why should investors watch semiconductors as opposed to any other industry. >> we're talking about the chips that get sent out and put into other items, other industries, appliances, smartphones, pcs, autos, so september is the peak season for the chips and for the semiconductors. when you have a, quote, unquote, bellwether like microchip technologies warning on revenue at this time of the year, it becomes very worrisome that we could be seeing slowing global economic growth. that's something we've been talking about, with the larger stock sell-off. you see these companies come out and report weaker than expected earnings, the effect there could

be that we're seeing -- going to see similar impact on other technology companies on other industries as well. >> and so i guess you're saying that this is going to have an impact on the broader market as a result? >> that's the worry. web bush analyst came out and say that whenever microchip comes out and reports any kind of guidance that they're correct 70% or more of the time. that's definitely something to watch in technology and in these other industries, the smartphones, the autos, appliances, so we could see seeing a canary in the coalmine, but it remains to be seen with earnings. >> morgan brennan at the nasdaq. it wasn't a very big decline but the price of oil did edge lower again today. domestic crude closed 8 cents a barrel down. that's its lowest level since december of 2012. those lower oil prices driving gasoline prices down again. going to the lundberg survey, prices at the pump fell 12 cents per gallon over the past three

weeks to a nationwide average of $3.26 a gallon for regular. the falling energy prices and the potential for deflation that is grabbing the attention of central bankers from around the globe. but what exactly is deflation and why are so many experts so worried right now? steve liesman explains. >> global central bankers are starting to worry about inflation coming in lower than the% target. right now a problem of disinflation or slowing at the rate of inflation but the real concern is deflation, outright declines in prices. in a rare interview, bank of england governor said low global inflation would play a role in monetary policy and that would make for a more dovish reaction. >> that means producing a very benign global inflationary environment, and that's something certainly we do take into account. >> first, it's tough for central

bankers to fight. they know how to battle inflation by raising interest rates but getting out of deflation is harder because they don't like to cut interest rates below zero. second, in deflation, people hold off purchases because they think goods will be cheaper tomorrow. that reduces overall growth. finally asset prices and wages can fall in a deflationary world, along with consumer prices. if wages fall faster than prices, that means standards of living decline. u.s. federal reserve vice chairman stan fisher added his concerns over the weekend about the negative impacts of too low inflation and economic troubles overseas. >> foreign growth is weaker than anticipated, the consequences to the u.s. economy could lead the fed to remove the commendation more slowly than otherwise. >> right now the source of lower prices is the decline in oil and other commodities but the worry is it's not from too little

supply but too many demand from weak growth around the globe. >> not just central bankers who are concerned about falling oil prices but also oil producers. that's creating a divide among opec, the global cartel. jackie deangelis has more. >> oil prices continue to slide on concerns about global growth at a market that's well supplied. but in recent weeks many have been questioning how low oil can go before producers are squeezed. the thought was that opec might make a move to reduce its supply to the market to bolster prices when it meets next month, but the chatter out of conversations this weekend, after venezuela called for an emergency meeting indicates that the cartel isn't making any rash decisions. middle eastern opec members have a higher cost to produce. and with the price below $90 a barrel some are feeling the pinch. but according to reports saudi arabia one of opec's most

outspoken members is courting investors in europe is a comfortable with the drop in prices. >> what it signifies to me is saudi arabia is taking an every member for himself mentality. in other words, we don't really care about what we're producing, what we do care is our market share and we want to keep it. it signifies they have very little control or no control over the non-opec oil that's being produced around the world. >> traders tell me there's no need to panic at the moment. they recall when prices dropped in 2008 because of market uncertainty and dollar fluctuations. break-even prices were equally as high then. but some look to crude as an indicator of the overall economy. it could mean worse things to come for the stock market which has already been jittery. jackie deangelis. still ahead, the big change coming to the department store jcpenney and investors react.

jcpenney's long search for a new chief exec fiv is over. the retailer has named marvin ellison home depot executive as its new ceo. he'll take over in august of 2016 from the interim chief mike ullman who came out of retirement to help the company rebuild itself after ron johnson was ousted from the top spot after he was recruited from apple. shares were off by 3 cents. they close at $7.09. canadian pacific railway approached cfx about a possible

merger. but cfx rebuffed that attempt that would have united two of the world's largest railroads. shares of cfx popped, canadian pacific fell 2% to 184.97. another deal to report. general electric will by about $1.8 billion for the helicopter leasing company milestone aviation. the dublin-based outfit will expand ge capital's aviation services unit which rents planes and offers loans for buying aircraft. shares of ge were off 1% today to $23.95. and boeing announced a massive order, indonesian airline bought 50 jets from the company worth about $5 billion. despite that boeing shares down about a dollar at 120.45. fiat chrysler began trading on the new york stock exchange

part of the effort by sergio marchionne. he said this day is a long time coming and he wants to prove the naysayers wrong. >> most people believe that the thing will not be resurrected and recovered. we look at reality today. ten years after the fiat recovery store. they're both vibrant. >> not much vibrance in the stock on its first trading day. lost 1% to $8.92. shares of lithium motors the company said a drop in used car prices hurt its third quarter profit and also cut its fourth quarter earnings forecast. the stock was down about 21% closing at $64 a share. the maker of rayban and oakley sunglasses saw its shares drop in today's session. the company's chief resigned just after six weeks on the job following the abrupt departure of the company's longtime ceo

last month. shares fell 9% to $47 and change. not your typical technology conference but dreamforce billed as the largest software event ever boasts a long line of celebrities and entertainers to drum up support for the cloud computing services at the tech giant sales force. josh lipton has more. >> don't let the crowds and rock music fool you. this isn't a music festival. it's dream force. an annual event in san francisco where sales force ceo marc benioff and a who's who of celebrities entertain over 100,000 people for four days. there's concerts, lectures, fireside chats and, of course, a lot of networking about the trend of cloud technology. that's when companies offer web-based solutions sold as subscriptions rather than licenses. businesses are moving their i.t. services to the cloud because it can help them save costs and

streamline operations. sales force is a leader in the cloud. the stock hasn't done much over the past 12 months given concern about its valuation. >> stocks extremely undervalue here. one, they're the largest cloud company. they continue to be innovative. a new product out today, wave. their big analytics plait forp. massive extension of their end market. and we think it's really transformative move for the company. on top of that they're delivering margin expansion. we believe they're going to continue to be more and more profitable. that's a big positive for investors as well. >> sales force competes against established players such as oracle and s.a.p. as well as smaller rivals. there's a lot of money at stake. global spending on public cloud services reached $46 billion last year according to research firm idc. it's expected to be more than a

$107 billion in 2017. there are all kinds of celebrities here from hillary clinton to al gore and musicians like neil young and will i. am representing just how big and dynamic the cloud industry has really become. for "nightly business report," i'm josh lipton in san francisco. coming up, home sweet shipping container? why architects are now thinking outside the box and making homes and business offices out of unlikely materials? but first, the bond market was closed for columbus day. here's how commodities and currencies perform. fidelity investments has a new ceo and it didn't have to look very far. abigail johnson will take over the position from her father ned

johnson who is 84 and has been ceo since 1977. abigail johnson is currently president of fmr, that's the parent company of fidelity investments. thousands of shipping containers enter the u.s. every day. only a fraction of them go back to where they came from. instead they sit in shipyards idle and empty. a new trend in real estate is already changing that. developers are using these containers for everything from retail shops to residential apartments. i'm not kidding. diana olick has the story. >> it's a beer garden, a clothing store, a bathroom. it's anything the designers at charlotte-based backman studios want it to be. but first it was a shipping container that came to the u.s. on a boat but never went back. give us the possibilities of what these things tend to come. because right now they kind of look like lego piece. >> that's a great description. it is a lego piece. how do you put them together? >> with a lot of imagination and

a blow torch. >> what we built the company was was emerging markets experiences. that means creating environments that are iconic for the brand partners. >> working with brands like hyundai, underarmour, nike. they repurpose container carcasses, breathing new life into them as mobile marketing spaces. hyundai's man cave, for example, at sporting events. then they built on that, retail, restaurants, apartments, even a hotel could be in the work. what's tricky are the zoning regulations because there really aren't any on a national level. developers have to work within each municipality, which could consider them mobile, modular. >> don't dress it with phony traditionalism, but begin to embrace them and see all the variations that can happen. >> price designed this container apartment building near catholic university in washington, d.c. it took just four months to go

from 18 metal boxes to home sweet home for these students. >> first, i thought it was a little crazy, but when i saw it going up, i thought it was pretty cool. >> a lot of people have been coming by. even the nuns from the convent came down and blessed our unit there's a lot of buzz about it. >> this is prefabricated housing probably at its best because the strength on these things is probably three times what a standard steel building would be. >> which could make them ideal for disaster relief. just another idea in the works as these visionaries mold idle metal into prime real estate. for "nightly business report" diana olick, in charlotte, north carolina. finally tonight the winner of this year's nobel prize in economics. the royal swedish academy of sciences which award the nobel prizes every year cited him for his explanations in helping to understand and regulate industries that have just a few powerful firms and showing how

governments deal with mergers, cartels and monopolies. the award and its more than $1 million prize will be presented in stockholm in december. and that's "nightly business report" for tonight. i'm susie gharib. thanks for watching. >> i'm tyler mathisen. thanks for me as well. we hope to see you right back here tom "nightly business report" has been brought to you in part by -- the street.com featuring stephanie link who shares her investment strategies, stock picks and market insights with action alerts plus, the portfolio she manages with jim cramer. you can learn more at the street.com/nbr.

the stations are going to take an almighty battering tonight, so take your observations, then carry out a full site check. secure everything. i'll go north. jennifer, you're east. leo, west. amber, south for you. and damon, you're central. i want the instruments photographed as backup once you've taken the readings. these conditions may never come 'round again, so let's get this right. once you've got the stats, get yourselves home. we'll collate everything tomorrow. stay safe, okay? uh, damon? can we swap? what for? i've just got something to do. i need to be here. please?