this is on "nightly business report" with tyler mathisen and susie gharib. wrought to you by -- >> the street.com. we help guide and generate income during a period of low interest rates. real money helps you think through idea for investing and trading stocks. action alerts plus, a charitable trust port foal why that provides trade by trade strategy. online, mobile, social media, we are thestreet.com. >> taxing hearing, denials, apologies and heated exchanges between irs officials and

lawmakers on the hearing on capitol hill. did we get any answers? >> what a finish. another record for stocks, logging four straight weeks of gains. are things about to get volatile for investors? >> speaking of volatility, six flags has faclimbed to great heights and in the end, it made the ultimate comeback. that and more on "nightly business report" for friday, may 17th. >> top story tonight, another banner week for the stock market and new record closes for the dow and the s & p 500, and it was a stunning rally. eight blue chips hit all-time highs. more than 140 stocks in the s & p closed at all-time highs, and the year end price charge on the s & p was raised to 1750. if they are right, the s & p would finish 2013 with a gain of 20%.

dow surged to 15,354, a new record. and the s & p added 15 points to 16 and the nasdaq jumped 36 points. a record-setting week on wall street. >> another day, another record. the dow closed at another historic high. all of the major indices except for the nasdaq closed at historic highs, including the mid cap and small-cap indices. early on, a better than expected read on consumer sentiment in may. the first positive data point all week. cyclical stocks, leaders for the past couple of weeks, once again, energy, materials, indurial, d techecto ro for the week. but the rally broadens out to defensive groups, like health care, up 1.8%. the other major story, the continuing strength in the dollar which hurt gold and silver. for the week, dow up about 1.5%. for "nightly business report," i'm bob pasani at the new york stock exchange.

now to washington where things got heated quickly. acting irs director steven miller grilled in the first of a series of hearings on the targeting of conservative interest groups. accusations, denials, and few answers to who knew what and when. eamon javers following the hearing from washington. >> good evening. there were a few answers. miller testified for just about four hours all told, republicans, very eager to get answers to their questions, producing a number of very uncomfortable moments for miller. take a look. >> so that was a lot of questions, sir. >>ith one. how can we conclude you did not mislead this committee? >> i did not mislead the committee. >> you are a law enforcement agency for crying out loud. i was a cop for 33 years. you raised your right hand today. did this committee had the right to know what you knew? yes or no? >> i answered all questions

truthfully, i also will tell you that it was -- >> let me ask you -- i'm going to go to mr. george because you're not going to cooperate with me, mr. miller, and you have been uncooperative during the hearing. >> what day did the conversation take place? >> i would have to look back at my notes. >> you had notes? >> i would have to find them. >> why did you say you have notes if you don't have notes? >> sir, please. >> this is absolutely an overreach and an outrage for all of america. i yield back. >> all right. >> now, tyler, miller is the recently outsted acting chief of the irs. the new acting chief or the incoming acting chief was brought into the meeting room with jack lew, the treasury secretary, who districted him to find a way to restore the confidence in the irs, but we'll see a continuing series of hearings going forward next week and hear from the numberotreasu

woland and might get more answers at that point. >> eamon, setting aside what happened in this case, is it a legitimate function for the irs to look into whether a group with a political interest qualifies for tax exempt status? >> absolutely it is. but the criticism here against what the irs did, they weren't looking at all political groups in the same way. they were screening for names like tea party, patriot group, 9/12 group, conservative leaning names were given an undue degree of scrutiny that liberal names were not given. that's the crux of the argument and why this was so unfair. the irs has a role to play in figuring out whether these groups are deserving of the nonprofit status or are political groups masquerading as nonprofits. >> you talked about restoring the public trust. a lot of digging to figure out

what went wrong he. as they go through all of this, to what extent could this open up more scrutiny by the irs in looking at returns for everything? not just audits, but sort of a pandora's box? >> an interesting question. one of the effects might be the opposite. intimidate the irs ironically to not go after groups as much. a lot of questions asked today, one big up known we're left with at the end of this day is who was the irs official who actually approved this conduct. who put this political screen in place going after the conservative groups more so than the liberal groups. miller was asked that question several times today and he never produced a name, he said he simply doesn't have it. one thing that investigators both on the hill and over at the fbi are going to want to know at the end of all this. >> eamon javier ifeamon javers capitol hill. tim cook, testifying on capitol hill next week and is

expected to propose a simple fiction of the nation's tax laws. what is he expected to ask for? >> he is expected to say corporate taxes are too high. he told "the washington post," i don't think think should go to zero, but they should be lower. and he is looking to the tax code. >> what would he lio see changed, or has he said? >> he hasn't said. we have spoken with people who have spoken with apple about developing the policy, and you can glean a couple of things. lower rates. make them competitive with the rest of the world. second, he wants it changed to probably a market-based system, meaning if you make money in let's say singapore, you get taxed at the singapore rates. you don't get taxed again when you spring it back to the united states. and the r & d tax credit, make it better, make it more

incentive to create in the united states. >> we know that apple has $100 billion overseas. >> 1$102 billion actually. >> why tim cook? >> the senate is looking at whether u.s. companies shelter u.s. profits overseas to avoid taxes. the tech industry has come under a lot of criticism, because they do have a lot of money, cash overseas. apple says it doesn't do this. it reminds people that it has 66% of sales generated overseas, it keeps the money it generates overseas, because bringing it back, it would be taxed at a higher rate. so why bring it back and be penalized. but they don't funnel u.s. profits overseas. they do pay taxes, so he's been asked to come before them, susie, over 1$102 billion overseas, so he awill present a way, if you want the money back in the states, this is how we could bring it back. >> they, not only corporations what would they do with the money if you bring it back?

>> the theory, if you take down the barriers, companies would be more apt to build research and development facilities, manufacture, et cetera. we have become more advantageous on a labor perspective. so there is more reasons to bring this money back. they might pay out a dividend again. there is no guarantee that they would do this that's the big question. >> mary thompson, thank you very much. we start tonight's market fork us with shareholders having their final say. transocean shareholders have voted out the drilling company's chairman and backed a director of nominee of activist carl icahn's board of nominees. they owned the deepwater horizon drilling rig which caused the massive and memorable oil spill. shares closed down more than 1% today to $54.04, but are up more than 25% over the past year. >> shares of refiner tsoro,

riding the waive of a strong energy sector. they won approval from the antitrust regulators to buy one of bp's refineries in california for $2 billion. shares up just about 7% to $62.24. shares of pandora took a hit after a pair of analyst remarks. one downgraded the online music service to hold on fear that it's too expensive. while the other brokerage initiated verageit theell rating. pandora reports earnings next week. the stock fell 2.5% to $16 and change, but up 75% so far this year. and a pair of software companies making strong debuts on wall street today, tableau software and marquetto, which makes cloud based marketing software, flying high. tableau up 63%, and marquetto,

up to $23.10. one year ago tomorrow that the highly anticipated facebook ipo took place. and the public offering was anything but smooth. coming up, a look at how the company is making money one year later. but, first, we'll tell you about a stock that's up 300% over the past three years, and it has been quite a ride. but, first, at the international markets closed today. as housing recovers, the

fear is that renters would turn into buyers and an apartment investors would lose out. that fear may be unfounded and as diana oelich tells us, an analyst says low supply and strong demand points to profits in apartments. >> we are in the calm before the development storm. that's from analyst ivy sfwlelman, best known for calling the housing crash and who recently said in a television interview -- >> i think we're in nirvana for housing. >> now predicting a boom in apartment construction. this even after a huge drop in april apartment starts reported thursday. other analysts have said that was just one month of noise in a still strong multifamily market. >> there is still a lot of pentup demand, a lot of single 20-something year olds still living in mom and dad's basement, really looking for a job and an opportunity to move out. >> vacancies for apartments fallen faster than any other

commercial real estate sector and lowest since 2001. one driver of apartment demand? home builders, slowing production because home prices rising so fast. meritage homes said it was limiting earning sales to maximize profit in certain community. >> in a lot of these markets across the country, prices going up almost monthly, weekly in some markets, so the slower they keep absorption, the more price appreciation they can get from the market. >> rising rents are pushing some tenants to move, just 11.5% left in april for that reason, compared to 17% in 2011, morn half of those who do move are moving to other rental apartments, about a third buying homes, which was a droprom previous reports, while 10% are moving to single family rentals. more than 150,000 new apartments are expected to come online this year, but that is still far less

than being built during the housing boom. with overall demand even stronger, recovery in single family housing and apartment rentals can coexist. for "nightly business report," i'm tdiana oelich. while we are seeing a rising demand for apartments, our market monitor tonight says investors should prepare themselves for ongoing corrections in the stock market. he's howard ward. so, howard, are frequent corrections good or bad for the market? and for investor confidence as opposed to one solid correction? you get the pain over with? >> i think personally, i would rather have a small corrections than the big ones after what we've been thrgh in the last decade and it's inevitable that

we'll have the 3% to 5% and occasional 10% correction that's part of the life of the stock market and it's just a little bit ahead of itself. and we can't really predict exactly when that correction will start. >> howard, a lot of chatter from fed governors and fed bank presidents about when the fed may pull back on its bond purchases. how worried are you about the effect that could have on the market broadly? >> well, tyler, i wouldn't say i'm worried about it. i will say when the fed makes it clear they will taper their bond purchases, i expect that to be a call list for lower stock prices, and that will result in profit taking. it probably signals that the market is doing better and the market should move higher, and i expect it will. >> stock picks that you are presenting to investors tonight. top of the list is apple. it is your biggest holding, the stock down today, even though the rest of the market was up robustly. why do you like it?

and what do you think of the at $433? a buy? >> i think it's a strong buy. i like the valuation at 11 times next year's earnings, 30% to 40% discount to the overall market and $60 billion buyback that the company recently announced that will be completed over the next 2.5 years, that's the equivalent of buying $87 million of stock for every trading day the next year. we'll see a new product flow from apple and positive earnings comparisons. all things will help. >> howard, a lot of deals on priceline, but is stock a deal at $113 a share, near or at an all-time high? >> that's a good question, tyler. i would like to point out that the stock has done very well, but the earnings have done better in recent years. stock with earnings compounding, more than 20% in recent years. it will continue to grow at 20%

and the p.e. 20 times this year's earnings, 17 times next year's earnings, a good buy. jerey boyd the architect, going back to the early 2000 period. we love priceline as the global leader in online travel. >> see if we can squeeze in one more. eog resources, what's the attraction? >> terrific acreage. strong oil production has driven strong earnings growth and driven the stock higher, we think that will continue. >> howard, thank you so much. any disclosures to make on the recommendations? >> yes, susie, i own all of these stocks myself. >> thank you so much. have a great weekend. howard ward. >> putting his money where his mouth is. for the final installment in the week-long series on companies that made a big comeback. tonight, six flags, a company that putin investors on quite the roller coaster ride.

the stock was soaring and three years ago, fell into bankruptcy and jackie deangelis tells us a new strategy and new management got this company back on track and riding high. >> we enjoy it. kids have a lot of fun. come a few hours, and we have season pass, since we're right in town. >> six flags perfect customer. they focused on season passes, just one strategy which helped with turn around. >> season pass attendance increased 44%. total attendance went up from 23 million in 2009 to 26 million, and the strategy really working. >> james reid anderson, a turned around specialist, wants it to be a regional theme park leader in stead of trying to be all things to all people. his goal? boost revenue, improve operating efficiency and reinvigorate the brand. new management, new strategies and innovat recipe

for success. and the strategies have worked. after emerging from bankruptcy in may of 2010, the stock up more than 300%. one of the things that make six flags unique is its appeal to regional clientele. no air fare or hotel lodging required, which keeps costs down. >> in a market where we face any type of competition for a regional park is in california, but other than that, they almost have a monopolies in every one of their areas. >> to drive foot traffic, the company continually invests in each theme park. >> new attractions, new shows, every single year at every single park. and we tell our guests about that. they know to come back on a regular basis. >> six flags says this is the largest theme park in the world, but here, not just about roller coasters. it's all about the safari experience which will be integrated within the theme park

as a ride. the largest safari outside of africa. in the first quarter, revenue up more than 30% year over year, thanks in part to an early easter and the company bought back 4$404 million in stock las quarter and a 5.5% dividend yield. management also announced a stock split to announce new buyers. >> there is no empirical evidence that stock splits are a good or bad thing, but they are strongly favored by investors. >> bad weather, disease scares, tough economic conditions, could have an impact on revenue. >> of course, you might see a slowdown in the economy or slowdown in consumer spending. gas prices coming down and we've done studies and what we've seen is that people aren't really affected by gas prices over the high gas prices, they still go to the park, but we see a big spike over a very short period

of ypically might put a damper on attendance. >> even with the 30% move year-to-date, it still has room to run. for "nightly business report," i'm jackie deangelis in missouri. >> shareholders of record as of june 12th. coming up, one year ago, facebook's much hyped ipo turned into a big fiasco. today, many people want to know how the social media giant makes money off you and all your frnds. but, first, how commodities, treasuries and currencies fare today.

general motors shares topped their ipo price of $33 a piece for the first time in more than two years. the stock is now up 14% this year, roughly the market gains, and it comes as the company gets ready to introduce redesigned full-sized pickup trucks and as the u.s. treasury winds down its stake. >> a different story for facebook since its wall street debut. tomorrow marks the one-year anniversary since the social media darling became a public company and one tush y turbulen. after a gross mishandling of the ipo with canceled orders and confusion, the stock didn't perform well. off 31% since it became public, making it the worst performing stock in the nasdaq 100 over the past year. but a year later, many people still want to know how facebook

makes money. julia boorsten explains. >> they want to keep over 1.1 billion monthly users, connecting, sharing and playing, more time spent on the site means more ads can be delivered. ads like these on the page and others interspersed in the news feed. they uniquely target each individual user, so the ads are see are determined by who i am, what i share and the links i click on. in 2012, facebook generated 5.1 billion in revenue. vast majority of ads, and advertising revenue in the first quarter grew 43% to 1.$1.25 billion and smartphone adds went from 0 to 30% of revenue. and they can set up communication pages for fans for free. take the fans who like coca-cola. coke can pay facebook to make

sure fans see messages and updates, even more valuable to a brand is reaching friends of its fans. in coke's case, hundreds of millions of people. and then there is the record number of people playing games on facebook. topping the charts, farmville 2 and texas hold 'em poker. you can play for free, but big money here too. you can buy virtual goods with facebook credits that cost real money. the growing gaming economy pushed payments revenue to $213 million in the first quarter and they are also taking revenue from real gifts, buy and send flowers and starbucks gift cards to facebook friends. part of one big strategy to keep facebook as popular as ever and get people to spend more time on the largest social network. for "nightly business report," i'm julia boorsten. a story straight out of hollywood, a million dollars

wo of jewelry stolen at the cannes film festival. a thief made off with the shopar jewels from a hotel safe last night. the room belonged to a hotel employee of the swiss jeweler and on the same night that "bling ring" was being screened, about teenagers that break into stars' whomes and steal jewelry. >> that's "nightly business report." i'm susie gharib. >> and i'm tyler mathisen. see you back here on monday night. >> nightly business report has been brought to you by -- >> the street.com. interactive multimedia tools for an ever changing financial world. our dividend stock advisor guides and helps generate income during a period of low-interest

rates. options profits helps educate beginning and seasoned options traders. action alerts plus is a charitable trust portfolio that provides trade by trade strategies. online, mobile, social media. we are thestreet.com.