. this is "nightly business report" with tyler mathisen and sue herera. the bulls are back. stocks jumped to start the week as several health care deals put investors in a buying mood. >> deadline looms. why the oversupplied oil market is paying such close attention to any developments in the iran nuclear talks. >> companies big and small are taking a stand on indiana's controversial religious freedom bill. that and more tonight, on "nightly business report," monday night, march 30th. >> it was the perfect recipe for a rally on wall street. we had deals, a lot of them. we had talk of more stimulus not only in china, but also in europe. and we had a market that's been up but mostly down lately. that combination put investors in a buying mood starting the

trading week with a triple-digit gain for the dow industrial average up almost 264 points to 17,976. nasdaq rose 56. and the s&p 500 gained 25. mergers in health care contributed to the optimism the big one united health group said it would acquire the pharmacy benefits manager catamaran for nearly $13 billion. both stocks leaped on the news. united health one of the top performers of the blue chip. catamaran up almost 24%. teva agreed to buy uspects for more than $3 billion, while horizon is acquiring hiperian therapeutics. those st terrell looks at what is driving >> the consol tags in the health care industry co united health purchased a pharmacy benefits manager catamaran. it's just the latest in a series

of deals in the space. >> it's a market that's going through a long-standing period of consolidation. express scripps has a history of creating value through acquiring businesses. the last big one being the metco acquisition. two of the three largest players. >> the result for one, greater power for pbns to negotiate drug prices. benefit managers including press scrips and cvs health. the catamaran deal strengthens the third largest player. that c be bad news for the drug industry. drug companies are already contending with pressure on some of their biggest products. specifically for hepatitis c. >> the more market power the pbm's having and hmos have they

are promising they will lead to lower drug prices. they put pressure with what we saul with gill yad last year in the other classes of drugs. >> it wasn't all bad news for drug stocks today. after concerns last week that the bull run was coming to an end. further acquisitions in the stocks moved them once a. ireland horizon announced it was acquiring hiperian therapeutics. >> it will cause stocks to go up more. there is an assumption by investors that this isn't the last of m & a. there will be a floor under much of health care. the major players are looking for growth which they really don't have. acquisitions in the low interest rate environment tend to be creative. so they get growth. almost any price is creative. so they're quite happy to do it. >> it brings some of the most

coveted assets to the acquirers. drugs for rare diseases which face less pricing pressure than those for illness like cholesterol and asthma. questions remain how long biotech stocks will continue to rise. consolidation is here to stay. for "nightly business report," i' just one more trading day left in the first quarter. a quarter that saw the return of volatility to the stock market. dominic takes a look at what worked what didn't and what investors should expect fr >> it would represent the ninth straight quarter the s&p 500 has been positive. so what parts of the stock market managed to be upside standouts? some of the biggest gains came from the health care sector. the worst performers utility stocks fell on worries interest rates would rise later on this year. it makes a bigger dividend yield that the companies pay relatively less attracti traders are looking ahead to

where the risks and rewards are for the second quarter. some, like the prospects for technology stocks as businesses start to look at making their operations efficient. >> one is going to be technology. some of these drivers includes mobility cloud commuting, ecommerce and big data. >> another big focus is the energy sector. as bargain hunters have been trying to capitalize on the extreme drop in stock prices in but some experts are saying it's too early to say that oil and gas stocks are a buying >> i think there are too many people who are sniffing around energy and believe energy to be an attractive valuation. it's not at all clear to me that's the case. we've seen private equity funds raise big new funds. we've seen the flows into the sector etfs for the energy sector. and there's just too much money chasing what appear to be bargains because of the sell-off we've seen in oil. but i'd continue to be wary of the energy sector. i don't think it's fully washed out yet.

>> the worry for many investors is we are due for some kind of larger pullback in the stock market. they point to the recent volatility as an indicator we could be due for a reversal for our recent uptrend. there is optimism but there is a healthy amount of caution in the mark for "nightly business report," here to discuss this volatile market and what investors can expect in the second quarter of the year is scott minor, with guggenheim partners. scott, always great to see you. let's start with that question about volatility. it has been an up-and-down quarter so far. lots of triple-digit moves. is this what we should expect for the rest of the year? >> tyler, look i think we're going to have a lot of cross-currents for the rest of the year. we have the looming question about whether the federal reserve is going to start raising rates, and when is that we have a lot of noise coming out of the energy sector that's raising uncertainty about energy stocks. so i think volatility is here to stay for a while.

>> scott, what about the strength of the dollar. we saw a number of companies when they reported their earnings point to the strength of the u.s. dollar as a real drag for others say that of the dollar is topping out here. which camp are you in? >> well sue, i think we're in a long secular trend with dollar strength, intact for some pe i would think that the euro would fall to parody and possibly even lower. and so in the near term i don't see much relief for s & p earnings coming out of the dollar. none of this should be unexpected. we knew the dollar strength was going to lead to translation problems in earnings for multinationals. and the market has room to appreciate just on multiple expansion alone. so while i think the dollar will be a headwind for earnings i don't think that is going to get in the way of stock prices moving higher. >> you know scott, i realize you run different kinds of portfolios and what you do in one you might not do in another.

broadly speaking have you been buying or selling or holding? and if buying or selling, in which sectors? >> well tyler, you know we're looking opportunistically at some sectors right now. energy i think it's too early. but you need to do your homework before you get to the bottom. and nobody can pick the bottoms perfectly. certainly the large integrated companies that pay dividends look fairly attractive. and as an investor we look at things over sort of a three to five-year horizon, not over a quarter-to-quarter horizon. so i think energy for a part of a portfolio over the next quarter or so will give really good returns for the next three to five years. >> how important is the interest rate scenario to you and your investments, scott? we saw just the other day when the fed chief ms. yellen said they were going to be very patient. we saw the stock market shoot up. we're still hinging on every

statement from the federal reserve. >> well you know sue, it's interesting, every period that precedes a fed rate increase in the post-war period has been associated with a stock market rally. and the reason i think that that happens is that the fed will move only if it's convinced that the economy is strong. if the economy is strong that's good for stocks. so i see the fed rate increase if we do get it in the second half of the year say, a positive sign for equities. and history also shows us that in the period that follows a rate increase we would expect to see equities continue to perform well. so over the next 12 to 24 months if the fed does raise rates, i could see equities being 10% to 20% higher than where we are today. >> scott, that sounds like a very cheerful note on which to end. so let's talk about the which saw consumer spending rise in february. though just barely.

while incomes rose more than expected. the commerce department said personal spending rose .1%, a number below ex peck tagss. the economists say part of the reason for the soft spending number was the weather effect. with snow and cold temperatures in the northeast in the midwest keeping people from getting to the malls. despite the spending figures, a group of economists forecast a solid year of economic growth. the national association for business economics predicts gdp will grow at 3.1% rate this year, which will be the best performance in a decade and compares with the growth of about 2.5% last year. the group says a stronger job market consumer spending and housing investment support that optimistic outlook. more americans signed contracts to buy homes in february. the national association of realtors reports about a 3% increase in pending home sales. that's the highest reading since june of 2013.

buying activity was the strongest in the midwest and the west while it dipped slightly in the northeast and south. oil prices fell today as iran and six world powers try to negotiate a deal on tehran's nuclear that could end sanctions against that c. with only a day left until the self-imposed deadline west texas intermediate settled down 19 cents to $48.68. that was well off its lows of the session. brent also closed lower as yo jackie deangelis has more on why the markets are paying close attention to the iran talks. >> reporter: with the deadline for a nuclear deal looming large, oil traders think at least a framework will be reached to clear a p that's because iran is one of opec's largest producers. reported at over $100 a barrel u.s. imposed sanctions are hitting the country where it hurts. >> the iranians, what they do is

subsidize a lot of things that happen in the country, such as gas sales and things like that and they're not able to do that if they're not selling the oil. the citizens on the street feel it. the international side but the iranians if they can't sell oil, they can barely fund things they need to do, infrastructure projects, things like that. the last two years of sanctions have hurt them greatly. >> a nuclear deal could lead to sanctions being lifted and that could add to the decline we've already seen in oil prices. that's because more iranian oil would only add to an already oversupplied market. >> if there is a nuclear deal cut, iran doesn't get a nuclear bomb but the saudis have to deal with iranian oil coming back immediately, because that's what the iranians want. if there is no nuclear deal the saudis have to worry about the iranians getting a bomb. that really ups the mistrust and distrust and geopolitical problems in the middle east. i'm sure that the saudis don't

want another million barrels of oil on an already oversupplied world market. i think they'll do everything they can behind the scenes to make sure iranian oil doesn't come back on the market anytime soon. >> last week after another strong build, the iaea said the level of crude in storage remained at an 80-year high for the 11th consecutive week. at the moment there is no sign that global demand will pick it up. it appears the crude conundrum continues, with the wall street firms calling for oil to go to the 30s, maybe even the 20s if the supply/demand situation doesn't work itself out. a key gauge of business activity in texas, a state known for oil production fell sharply in march. according to a survey by the federal reserve bank of dallas business activity fell 6% from the prior month. they say the reductions in the oil and gas investments are taking a toll on that state's

economy. still ahead, the controversial indiana law that has businesses both big and small taking a stand. a new state law in indiana is drawing criticism from the local and national business communities. critics say the law opens the doors for businesses to discriminate against gay indiana governor mike pence said that's a misperception and the law is about personal empowerment. mary thompson has more now from indianapolis. >> reporter: on the streets of indianapolis small businesses

hang signs letting clients know everyone is welcome. because of an unwelcome law. >> we shouldn't have to hang signs that say, i don't discriminate. >> reporter: sentiments echoed by others who see indiana's religious restoration act as legal cover for businesses who want to discriminate against gays. the backlash putting state lawmakers back on their heels and looking for >> to the extent that we need to clarify through legislative action that this law does not and will not be allowed to discriminate against anyone we plan to do just that. >> reporter: the business community clearly sees it as a threat to their livelihood. the local and national response now threatens indian indianapolis based angie's list an online marketplace, suspending expansion plans that would have added 1,000 jobs to the state by 2019. >> if the atmosphere is such in the state that we can't draw the

talent that they can't be comfortable, then i can't commit the company. >> reporter: eli lily calling the law bad for business. apple ceo tim cook writes in an op-ed, other states considering similar proposals put their economies at risk. stating from north carolina to nevada, these bills under consideration will truly hurt jobs growth and the economic vibrancy on parts of the country where 21st century economy was once welcomed with open arms. local businesses fear the law will hurt the state's $4 billion convention business and its future as host to big events like this weekend's ncaa basketball championship. based here the ncaa also expressed concern about the law's impact on student athletes and its empl indiana's chamber of commerce calls the law unnecessary. but in lebanon, indiana, it's

supported. samson said it doesn't discriminate but wants the right to refuse business that causes it to write or create something it's not comfo sampson told cnbc it knows other likeminded businesses but the companies didn't want to go public with their view. it takes a bloom off the resurgence in the indiana business and economy. painting her and other indiana businesses with an unwanted brush. >> i'm not here to discriminate. i'm here to sell flowers. and make people happy. >> reporter: in indianapolis i'm mary thompson, for "nightly fidelity tries to end a dupont proxy war. that's where we begin tonight's market focus. fideli investments, a major investor in dupont, has put pressure on a fund led by nellson pelt according to a report from reuters. that activist fund known as triad partners is pushing for the directors to dupont's board.

they shares of dupont rose. best buy plans to close some stores and consolidate its operations in canada. with that the electronics retailer will cut 1,300 jobs. still, shares rose a fraction to $38.75. shares of world wrestling entertainment took a hit today. maybe a body slam is a better way to put it. they announced the wrestle mania event last night was the highest grossing in its history. but online subscribers who took advantage of a free february promotion will stick around long term. and those concerns sent shares plunging almost 15% on the day to $14.09. gmc holdings started selling inging supplements to their new york stores today.

shares up 7% today to $49.26. a tough day for shares of biodelivery sciences. the drugmaker's pain drug failed the late stage study. a gel that treats nerve damage caused b. the stock tumbled 24% to $10.51. >> well march can't end soon enough for technology investors. one of the worst performers in the s&p 500 this month. take out apple and its performance is eve josh lipton takes a look at what's pressuring te >> the tech sector of the s&p 500 is down about 3% so far this month. for the quarter, it's basically flat. in fact this would be its smallest gain since at least 2005. so what's pressuring tech? strategists blame a rising dollar. as a sector tech generates

nearly 60% of its sales from overseas. that's more than any other sector in the index. a stronger dollar can impact sales by making the price of u.s. products more expensive to customer. strategists only see the dollar moving higher from here. >> it goes to the u.s. economy, it's growing because corporate earnings are appreciating because the yield on our 10-year note is superior to that to other yields around the globe, that it just acts sort of as a magnet to international investors bringing in their moneys to the u.s. and that helps to strengthen the u.s. dollar. >> a stronger dollar could prove a substantial headwind for some tech companies. according to analysts at amore. for example, they point out oracle took a 6% hit to revenues because of a stronger dollar in its most recent quarter. they estimate a 9% impact in its may quarter. of course tech still has its

fans. they point to expected earnings growth and attractive valuation. >> earnings are expected to rise in 2015 at a 5% clip versus the 0.4% pace expected for the s&p 500. also, the price-to-earnings ratio is less for technology at 16.2%, versus more than 17% for the s&p 500. >> tech investors might have a better sense of where the dollar heads from here on friday morning when the jobs report hits. dollar bulls say that report if it's strong enough could provide more fuel for a rising for "nightly business report," i'm josh lipton in silicon coming up the silver lining for consumers as some retailers continue to feel the pain from the backlog at west coast

here's a look at what to watch tomorrow. the s&p home price indegs will be released before the bell. as we reported earlier, it's the deadline for the u.s./iran nuclear talks. the first quarter ends. that's what to watch tomorrow. the west coast ports continue to dig out from the backlog of cargo that built up during the long-standing labor dispute. many retailers are still trying to assess the damage that was done. courtney regan has >> reporter: it's been more than a month since a deal was reached to settle the labor contract dispute at west coast ports. but the pain is still present

for reta william so nome oh says the congestion continues to cause a material disruption. it estimates it will incur $30 million to $40 million in lost sales. with a 10 to 12 cents earnings per share hit for the year. the retailer is among the 25 largest container volume importers in t restoration hardware said 10 to $12 million in orders are delayed. but the home furnishings retailer is confident it will be shifted into the sikd quarter rather than lo. spring goods are delayed. the ceo called the sales hit quite significant on its earnings call adding that even though a new sneaker was featured in windows, stores didn't have the shoes to sell. they're not expecting to get back lost sales. lululemon now says it expects inventory delays will hurt untiat

much beyond the original forecast of inventory backlog through th. the one thing on every investor's mind how long will the backlog last. >> one thing that maybe has been underestimated is the cascading impact of something like this. it's not just the goods that don't get to shelf now, there's also this knock-on effect those boats are not able to get over to the far east or other places to be reloaded. there's this rolling impact that should last much longer into the future than you would immediately think of when you imagined a port slowdown. >> reporter: conrad also says historic data shows supply chain disruptions caused share prices to fall an average of 25%, with impacts that linger for two years. however, not every retailer is hurting. five below children's place and finish line say forward planning has and will prevent any delay or disruption.

francesca's and men's warehouse are among those experiencing only a minimal impact. and there could be a silver lining for shoppers. while there has been less inventory to pick from in early spring once the merchandise does come in retailers will likely have to discount it to catch up. for "nightly business report," i'm courtney regan. from fed chief to blogger, former federal reserve chairman ben bernanke is writing about economics and finance on the brookings institute website. he's a senior fellow at brookings. he defended his actions as the head of the central bank to keep interest rates low. not only did he post his first blog but he also made a rare public speech saying rates may not remain this low fo >> the downward pressure on global interest rates will probably moderate somewhat over time. the pressures for the trade deficit of the united states will probably moderate somewhat

over time. i think those are positive factors that need to be taken into account thinking about growth. >> until today mr. bernanke has only made limited comments on the economy since he left the fed last year. on that note, that does it for "nightly business report" for tonight. thanks for joining us. i'm sue herera. >> i'm tyler mathisen. that's it for me too. have a great evening, everybody, and we hope to see you right back here

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