. this is "nightly business report" with tyler mathisen and susie gharib. >> stocks, wall street ends the month in ugly fashion. the dow having the worst day since february, early february, down more than 300 points. >> t-mobile shares jump as the french cell phone company bids $15 billion for the u.s. business of t-mobile. >> and a surprise call. >> meet warren buffet. >> i want to give him $50,000. >> find out what happens when a 17-year-old recovering cancer patient and a wall street want to be connects with the world's most famous investor. that and more for thursday, july 31st. good evening, everyone. i'm sue ha rear errera in for s

gharib. >> i'm tyler mathisen. welcome from me, as well. remember the stocks from a couple weeks ago, forget about them. the worst session in months, six months to be exact for the dow jones. it fell 317 points to finish at 16,563. nasdaq slumped 93 and s&p 500 dropped to 1930 and change. all ten s&p sectors were low today, all 30 dow components lost money, too. now look at this graphic to see how far the major indexes have slid since their peak, just a few days ago. small company shares suffered the most. the russell 2,000 is off almost 8% and if the indexes weren't negative already, today's losses made them so. the monthly drop for the dow and s&p was the first since january. for the russell, the worst since may of 2012. here is bob pasanni.

>> reporter: it was an ugly start and ugly close. it started in europe, port giugs bank reported a loss checking the rhetoric in the ukraine is heating up but the prime minister saying russia was seeking to revise the outcome of world war ii. then argentina put pressure on latin american stocks and other emerging markets and interest rates in the u.s. spiked when employment costs were much higher than expected. it had worries it may cause the feds sooner rather than later. we had a number of big companies with disappointing earnings, including two manufacturers adidas and home builders ryland and beaser. traders want to see clear signs the job market is continuing.

for "nightly business report" i'm bob pisani. >> joining us to talk more about the sell off and when it means for you and your investments, art hogan joins us. he's a market specialist with wonderlic securities. does it change the bull trend that you have been predicting and right on so far? >> no, i don't think it does so. it's helpful to take everything and aggergate. we've been concerned and by that, all of these things, russia, ukraine, gaza, israel, whether the defligs economic report out of the eros zone today or adidas talking about a slowdown in demand because of what is going on in russia and i think that is the market manifested to the sell off today and by the way, this is a sell

off that's been a long time coming. i think we have gone a considerable period of time without volatility. i think this is the garden variety sell off. we're down 3% in the s&p. i don't think we get down much more. we closed on support. we'll see what tomorrow brings. >> let's bring in john, chief market strategist. welcome. >> thanks, tyler. >> what happened today? it a hickup or something more? >> tyler, i would have to say i think it was more than a hiccup. it was a things the that had been mentioned. we add to everything when you consider the impact of just a potential speed bump with argentina. we've been through this before with argentina over the years, but it all leads to a good opportunity to take profits. it hasn't been a bad year on the back of 2013 when we were up about 30, so we would have to

think that at this junction tk little selling, we've been here before in february we had a spike, a pull back, concerns about growth but we're in the process of an economic expansion coming out of an economic recovery that's been significant. >> dean, so in the past, as john just pointed out we've had these hiccups where in some cases more of a sell off and the lesson to be learned is you should have bought. do you feel the same way with today? >> i do, sue. that opportunity might not present itself tomorrow. we've had one of the worst days but as next week begins and we start to see the dust settle, you'll realize when these things happen, the market was down across the board, almost the exact same percentage point and nobody was running to gold and bonds were acting funny. every industry seemed to be down about 2% that creates bargains. get out the shopping list and

with the same brush that everything else was sold with and look at the stocks you've been waiting to buy and have gotten ahead of you. they have probably come as early as next week. tomorrow might be a day to wait and see. it's difficult on a friday in the summertime after a difficult day. >> what would be on your buy list? >> tyler, i would be looking to add technology, industry jelial materials and select items in consumer discretionary. >> tell me because we had bumpy results out of the consumer sector. what are you driving at there? kinds, if you don't want to name names, go ahead, i invite you to, but if you can't, what kinds of companies are you pointing to? >> i would be glad to mention a few names. companies like home depot and tiffany's we would want to buy. home renovation and on the other

end, quality jewelry, both affordable end as well as expensive end, and on a global basis for tiffany and of course, home depot, it's a u.s. story. we would also consider here within the consumer discretionary arena, we would want to be still exposed to automobiles, average age of the automobile fleet remains stuck at around 11 years and people will continue buying cars. >> all right. we'll leave it at that. all right. home improvement and tiffany's, good jewelry as you repair your home. >> you get me the hammer, i'll get you the ring. >> there you go. >> art, john, thank you. the biggest loser on the dow, exxonmobil even though the largest publicly traded beat expectations, but, it's shares fell 4% because its production dropped to the lowest level since 2009, just under 4 million barrels a day, but don't cry for exxon. save that for defaulting

argentina. exxon managed to earn $9 billion in the quarter, $9 billion in three months and the revenue, $111 billion. the french low cost company illid made a $15 billion cash offer for more than half of t-mobile today. in the meantime, t-mobile turned the first net profit and signed up another 1.5 million customers. morgan brennan has more on what this all means. >> reporter: america's fourth largest wireless provider has been shaking up the industry, aggressively slashing prices to spark competition with larger u.s. rivals, sprint, at&t and verizon. so far, the plan seems to be working. t-mobile continues to add monthly wireless subscribers and now, it's attracting potential buyers. >> we've always said in the long term scale is extremely important. i have to point out we have multiple options to create long-term scale for this company, one of which is been

long rumors and one possibility. >> reporter: multiple options is right. while it's widely believed sprint could put a bid in, another company beat it to the punch. today a company confirmed the $15 billion offer for majority stake sending shares of t-mobile higher, even as a broader market sole off. experts say such a deal could face fewer regulatory hurdles, since it would maintain the current number of wireless carriers, but it also strikes right at the center of a heated price war, and that's redefining the u.s. wireless space. expects say a deal like this could be good for consumers, since a sprint, t-mobile merger would decrease the competition. >> at&t and verizon would have benefitted if sprint and t-mobile merge because you would see four players going to three and the presumption was from investors that would mean higher prices for consumers and

therefore more profitability for wireless carriers. the fact that those stocks are going down, in a funny way confirms exactly what the concern of the regulators was all along, it would lead to higher consumer prices. >> reporter: what about sprint? the country's third largest carrier is pouring billions of dollars into network up grades, losing monthly subscribers for 2.5 years. while the upgrades are expected to be completed this year, analysts say it would need more scale to better compete with customers. a potential deal with t-mobile could have provided that. this is the only the begin. t-mobile confirmed the bid but declines to comment making it unclear whether the offer is viable and sprint could counter and any deal struck would have to get government approval. for "nightly business report", i'm morgan brennan. shares of t-mobile were higher but the other major telecom companies fell on the

news. coming up, under armor's strategy. what the sportswear company is betting big on to fuel growth. house republican leaders cancelled a vote on a $659 million bill to improve security at the u.s., mexico boarder and have not adjourned as they had planned. they did so because of divisions within the party and a lack of support from democrats. it's unclear what congress is going to do now, if anything to deal with the tens of thousands of central american immigrants,

mostly children who are coming into this country illegally. speaker john boehner does say that the house will continue to seek solutions to the crisis. congressman paul ryan's bold budget cutting propels impressed republicans but haven't passed congre congress. john harwood asked why and whether congress will get anything done in the next two years. >> i didn't want to get into a debate about proper funding levels of the status quo because we would spend all this time about budget numbers. i wanted a debate how to reform the status quo. these reforms could occur at any spending level, you can decide later on. >> two objections, one, i talked to hillary clinton last week. she said this is not a good idea because if governors won't take free money to expand medicaid they can't be trusted to protect programs, a, and b, that you e

li -- eliminate the stabilizer that expands when the economy is worst. >> so i'll take the last one first. the baseline of funding changes per the economy, and i would anticipate doing the same thing here. what you call automatic stabilizers. the first point, though, i just disagree with. this isn't free money. states are getting put on the hook with obamacare and the federal government ratchets down matching rights. more importantly, it's sort of an apple's to oranges comparison and not the same thing for a governor to say i don't want to take this top down, heavy-handed approach from washington of a government health care system, there is nothing inconsistent with the government and saying yes to i want more flexibility for how to customize benefits to get people from welfare to work. i don't see that as an accurate comparison. >> isn't the actual reason that you haven't passed in the house free standing entitlement reform, but even though you're willing to do it, you're

colleagues are not? >> no, i don't think that's it. i think we know that the senate won't act on these things, and we're trying to pass bills that have a chance, a reasonable chance of passing into law to make a difference in people's lives. i think if we had willing partners on the other side of the isle, a president willing to tackle our tough fiscal issues, members would be more thanning willing to participate but it's abundantly clear the senate and white house is not interested in tackling the really big problems facing the country. if the republicans take the senate in midterms this fall, what changes in the next two years? anything? >> if we were to obtain the senate, we would actually have the ability of passing legislation all the way through congress, not just half the way through congress and giving the president the opportunity to make a decision whether or not to support legislation. >> shouldn't the message for the conclusion that average americans should draw is that there is really nothing that's going to happen until we have a new president, whether it's one party -- >> i hate to think like that.

unfortunately, i think there is merit to that criticism. >> let's bring john harwood into the conversation. john, couple of things, first of all, did he comment at all on tax inversions where u.s. corporations have been increasingly locating overseas to get the lower tax rates? >> he did, sue. he said that could only happen in the context of comprehensive tax reform. it wouldn't be effective if you try to do it as a single rifle shot proposal, and he said the broader tax reform is also one of those big issues that can't get dealt with by congress until we have a new president. >> john, do i understand correctly that congressman ryan is going to move from the chairmen ship of the budget committee to weighs and means? does that mean that his focus in the next congress is going to be on tax reform? >> appears that way. paul ryan is considering and told me he's keeping his options open about potentially running for president but is in line to

become weighs and means chair and when i asked whether he would do that job than run for president, he said i like the path i'm on in the house. so i think he'll stay there, focus on tax reform and entitlement reform and we'll see whether he can get anything done. >> we're coming up on the august recess, john, and there is pending legislation that we mentioned earlier, immigration reform, et cetera. where do the house and senate stand in terms of taking the recess or not? >> they are going to take the recess. the house is going to be in tomorrow. they will pass the va bill, pass the version of the highway bill. looks like nothing will happen on the boarder crcrisis. >> thanks, john. >> the trading debut in the biggest initial public offering so far this year. they did it on a bad day. that's where we begin tonight's market focus. the credit card company spun off from general electric sold 125 million shares at the low end of the expected pricing range.

shares flat, $23. right there. tesla posted after the bell earnings that easily topped estimates. the electric car maker sales of model s matched estimates to begin deliveries to china and panasonic announced it will invest in tesla's battery manufacturing plant. after the bell, shares were volatile. during the regular session, the stock was down 2.5% to $223.30. go pro also out with late earnings. they report a wider quarterly report. the action camera results beat estimates, still shares down during the report of regular trading. the stock on the down day was 3.5% higher at $47.97. >> wave of media earnings to tell you about. timewarner cable posted earnings and revenue that came in shy as the core video business continues to struggle. direct tv on the other hand, better than expected results on

the top and bottom line, stronger add revenue and discovery communications had results that beat the consensus and shares of timewarner and direct tv were down, discovery was higher. trulia's rising cost, results better than forecast. shares popped after the report during the regular day, the stock down 3% or so, $60.53. a soggy trading day for kellogg. the company reported the fifth straight quarterly decline in cereal sales. demand continues to fall in the u.s. shares tumbled 6% to $59.83. colgate polmolivee revenue came in short and shares dropped nonetheless 4% to $63.40. and mastercard's second

quarter net income climbed as the company was helped by volume growth and increase in consumer spending. despite that, the company ceo was cautious about the economic recovery. the stock fell 2% to $74.15. target is bringing in an outsider for the ceo as it fights to redefine itself. brian cornell was an executive with pepsi co and replaces the chief financial officer. cornell will lead the effort to help the retailer recover from the massive data breach. shares were off 3% to $59.59. another retailer, under armor. they have traditionally focused on men's acti active wear and n trying to win over women. >> reporter: under armour centered around ballerina misty

copelan copeland. not what you would expect created by former college football player and ceo kevin plank. >> this transition just being about the female athlete, to being a story about the athletic female. as sports bras and compression shorts, much more style. style is cool and important. >> reporter: the women's active wear market is $15 billion and that's grown 8% from this time last year. underarmour has a tiny slice but says it can grow and be bigger than the men's business. plank isn't worried about competition. >> i don't think anyone else controls the destiny of under armour. not size but something where the women's business, ipo in 2005.

for men and women, sports apparel has been booming, growing four times as fast as the overall apparel industry. that's helped sales explode on track to grow 29% this year to $3 billion. it's stock up more than 60% this year, more than ten times the broader gain of the s&p 500. no question under armor has the momentum but to catch up with nike, it has to grow and grow internationally. nike still has nine times total sales. for kevin plank, the ceo, that means focussing on growth, international footwear and women's, even at the start of football season. coming up, the teen who has wall street ambitions and got wisdom from none other than warren buffet. that's next.

a judge ruled against microsoft saying u.s. law enforcement can force the company to turnover e-mails it stores in ireland. the federal judge in new york ruled after hearing oral arguments but she agreed to stay the effect of the ruling to give the company time to appeal. microsoft said that rulings forcing it to turnover e-mails threaten to rewrite the constitution's protection against illegal search and seizure. arguments were joined by apple,

at&t, cisco systems and verizon. sometimes wishes do come true and this week thanks to the make a wish foundation, one did for 17-year-old trey of alamo, california. trey wants to be an investment banker, maybe a money manager. last christmas eve he was diagnosed with lymphoma. make a wish arranged for him to do a week-long internship with goldman sachs. he rung the opening bell at nasdaq and met derek jeter on the field and today, he had perhaps the biggest thrill of all during an appearance on cnbc. we surprised him with a phone call from warren buffet. >> i understand that you're being shown around gold mman ani would like you to become my agent. they will try to sign you up but the two of us can make a better deal with lloyd than if he has him to yourself.

if we can get jamie diamond in the act, they would be competing for your service. >> how, mr. buffet, would you counsel ordinary investorsr a guy like trey out there trying to make money in his personal portfolio to factor in the various crosscurrents we hear on the market on a day like this, that wage inflation is coming back, argentina is defaulting on debt. there is increased tension in europe and the european economy may not be good. how should people think about that on a day like this where they see an immediate effect? >> well, if they are in a good business and they have got some spare money, they like buying it yesterday, they should like buying it better today. the day to day stuff doesn't make any difference. you know, the trick in investing is to buy good businesses and hold them for a long time and make a lot of money and it's a mistake to pay attention to the day to day fluxuations. if you found a good business in

your hometown to buy into it, you wouldn't think of buying and selling it every day on headlines. you would concentrate on buying the best business you could and have the best management. >> if you liked it yesterday, you might want to buy more of it today. trey, any final words or questions for warren? >> well, i think your advice is really good. if you liked it then, you're going to love it now and dow is down and i think it's a good time to reup position. >> trey, we would like you to come to the brooke shire ma meeting. i would like to meet you. >> we would like to make that happen. >> trey is feeling well. he had the last chemo treatment a month ago and next for him, classes at the community college in california, may be cal berkeley and goldman promised to make another wish come true coming to that powoow and

meeting with warren buffet. >> he was a great fellow. >> we wish him the best of luck. >> he had a hard way up and battling his illness effectively. >> and feeling good. >> thank you, mr. buffet. appreciate that. >> we do. i'm sue herrera in for susie gharib. thanks for joining us. >> i'm tyler mathisen. thanks from me, as well v. a great night, everybody. we'll see you tomorrow night. . great night, everybody. we'll see you tomorrow night. ev. a great bo. a great night, . we'll see er a great n

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