>> tom: something to tweet about: twitter launches a new business model, adding advertising to the mix. >> it's another way for us to engage with people who are already actively tweeting. it's just a natural extension of the conversation we're already having. >> susie: intel has something to chirp about too. its latest earnings quadruple; we hear from the chip maker about its record quarter. you're watching "nightly business report" for tuesday, april 13. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:

this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> tom: good evening, everyone. new proof tonight that the tech sector is alive and well. intel reported that it's quarterly earnings nearly quadrupled and, susie, the tech titan's revenues surged 44%. >> susie: tom, this is intel's best first quarter in more than four decades. and that's one reason why intel's shares jumped almost 4% in after-hours trading. >> tom: here's a look at those first quarter profits. intel earned nearly $2.5 billion, or 43 cents a share, a nickel better than analysts were anticipating. intel's chief financial officer

stacy smith says strong demand for computer notebooks powered up profits. >> the notebook market for us was particularly strong, and stronger than i expected when we started the quarter. and in particular, it was the high end of that segment. what we saw was demand on our new products at the high end of the notebook market. it was stronger than i anticipated when we started the quarter. >> tom: we'll have more on how the intel results may impact tomorrow's trading on wall street in tonight's "market focus". >> susie: while intel posted record revenues, twitter announced plans to boost its bottom line, debuting a much-anticipated new business model. all eyes-- and fingers-- waited to see if the social networking giant has come up with a way to turn keystrokes into dollars. scott gurvey reports. >> reporter: 50 million tweets a day and almost nothing to show for it. it's enough to give any venture capitalist a headache. today, twitter said it has a

remedy, shades of google: search related advertising. twitter c.o.o. dick costolo says it is just the beginning. >> we will be expanding the platform beyond search once we understand the user benefits of it once we understand the metrics behind it, and once we understand what works and what doesn't. we're not going to expand it until we fully understand that. we're in no rush to do this. we're going to take our time and put user experience first. >> reporter: twitter users broadcast short messages up t0 140 characters. anyone can follow broadcasts, and you can retweet, sending to your followers a tweet you've received and want to pass along. twitter is especially popular with mobile users who tell others what they are doing. for example, journalists send out news headlines. i often tweet about the story i am working on each day. and companies monitor messages about their brands. they also post their own news. starbucks already offers promotions to people who follow its tweets. now it is one of four companies which will have its pitches, called promoted tweets, show up when users make a relevant search. porter gale of virgin america, another one of the four, says twitter fits her company's high

tech image. >> it's another way for us to engage with people who are already actively tweeting. it's just a natural extension of the conversation we're already having. >> reporter: to start, promoted tweets will only reach users logged on to twitter's web site. but the company also plans to insert the ads into the stream of tweets on handheld devices. in effect, a company buys its way into the conversation. that, says ad age's abbey klassen, may be a problem. >> i think the big fear for twitter is that marketers start unloading all sorts of messaging into the twittersphere. all these messages are really irrelevant. what a great way to irritate users. >> reporter: no info today on pricing for promoted tweets, twitter says that will come tomorrow at a developer's conference in san francisco. scott gurvey, "nightly business report", new york. >> tom: here are the stories in tonight's "n.b.r. newswheel". modest gains for wall street today, ahead of those strong intel earnings. the dow rose 13 points, the nasdaq added eight, and the s&p 500 gained almost a point.

volume rose on both the big board and the nasdaq, compared to yesterday. the dallas fed was alone in wanting to boost the discount rate in mid-march. minutes from a march 15 meeting show the dallas fed wanted to push the rate the central bank charges banks for emergency loans to 1%. everyone else, including fed chairman bernanke, voted to keep the discount rate at 0.75%. the overall u.s. trade deficit widened in february, rising almost 7.5% to $39.7 billion, as we brought in more goods than we sent out. but our trade deficit with china actually narrowed slightly, down nearly $2 billion to $16.5 billion. still ahead on the program, we'll check up on a busy medical practice and get doctors there to give us a prognosis on how health care reform will affect them and their patients. >> susie: it was the biggest bank failure in u.s. history, the implosion of washington mutual. today, the man at the helm when

it went under told lawmakers the bank could have survived if only uncle sam had played fair. wamu's former c.e.o. kerry killinger says the bank had adequate capital, and had cut back on risky mortgage lending. a senate investigation of wamu found its mortgage lending was riddled with problems, including fraud. but killinger told a senate panel the bank failed because federal regulators didn't give wamu the same protection it gave to wall street firms. >> the company was similarly excluded from hundreds of meetings and telephone calls between wall street executives and policy leaders that ultimately determined the winners and losers in this financial crisis. for those that were part of the inner circle and were too clubby to fail, the benefits were obvious. for those outside the club, the penalty was severe. >> susie: the chairman of the senate panel examining wamu, senator carl levin, says the company's lending created, quote, "a mortgage time bomb." wamu failed in september 2008.

its assets were sold to j.p. morgan chase. >> tom: the financial crisis had its roots in complex trading instruments that few people understood. now with financial regulatory reform working its way through capitol hill, there's a big push to make the investments we buy easier to understand. but as stephanie dhue found, some familiar products are growing more complicated. >> reporter: with interest rates near record lows, some banks are souping up certificates of deposit. they've taken the simple c.d. and linked it to a stock market index. tom gletner of suntrust investment services says the product is aimed at investors hoping to cash in on the market's performance. >> the majority of people who buy index-linked c.d.s know the stock market, are comfortable with it, want to participate, want to get the inflation beating returns it can potentially supply, but are paralyzed with fear of loss, so this allows them to participate in a good bit of the upside, without that fear. >> reporter: but losing the fear comes with a lot of paperwork.

for example, the disclosure for a suntrust c.d. linked to the dow runs 35 pages. the pitch is simple: a five year c.d. with a guaranteed 8% return, and the potential for higher returns if the dow does better. but look closely, and you'll see that guaranteed interest rate is not compounded, making the annual rate of return just 1.56%. that's why james deveney of the f.d.i.c. advises consumers do their homework before investing in any index-linked c.d. >> they need to understand the terms and conditions associated with the products, and they need to ask questions and obtain the prospectus or the disclosure statements. >> reporter: a disclosure will show that index-linked c.d.s are illiquid. that means if you need the money before the five year term is up, you may not be able to get it. and even if you can get it out early, it may be less than your original investment. that's far different that a traditional c.d. where early

withdrawal penalties come from the interest earned, and don't eat into principal. holders of an index-linked c.d. also have to pay annual taxes on a rate higher than the minimum guarantee, even though the c.d. only pays you at the end of five year term. suntrust's gletner says these differences mean index linked c.d.s aren't for everyone. >> those investors that are traditional c.d. buyers, perhaps those who are late in retirement or those that expect a return every year, particularly those that get income, these don't pay the income out. some of the income, or all of the income is paid at the end, so if you need the income off c.d.s, it is absolutely not right for you. >> reporter: there's another thing to keep in mind: if the index doesn't do well, the guaranteed minimum rate of return is less than what a traditional c.d. would pay. from 2005 through 2009, the dow returned just 1.79%. all things to consider before swapping the simple c.d. for the

more complex product. stephanie dhue, "nightly business report", washington. >> susie: this is a big week for bank earnings, starting with j.p. morgan tomorrow. many of the nation's largest financial firms are expected to report a profit for the first quarter. will better earnings push bank stocks higher in 2010, or will new problems show up later this year? suzanne pratt reports. >> reporter: without a doubt,

business for many of the nation's largest financial institutions is looking a lot brighter. for one thing, they're actually making money again. but, the pickup in profits has not gone unnoticed by investors. since the start of this year, financial stocks, as measured by a popular e.t.f., are up about 15%, double the s&p 500. k.b.w.'s fred cannon says underscoring the rally is the credit recovery story. >> with the economy starting to look up, liquidity back, there are signs that both housing and commercial real estate properties have bottomed out. investors are saying that's a clear sign to get back into the banks. and, some of them look cheap to investors. >> reporter: some market pros predict financial stocks will continue to rally this year, and history is on their side. data prepared by standard and poor's shows financial stocks typically do well in the early part of a bull market. in the past 60 years, the financial sector has gained an average of 17% in the second

year of a bull market, lagging only technology and consumer discretionary stocks. still, experts are concerned about potential headwinds for the group. in particular, oppenheimer analyst chris kotowski says some firms face continued heavy losses from home equity loans. >> big banks have been writing off about $5 billion a quarter of home equity loans. it's not like we shouldn't worry about it, but it's already part of the reality. these loans are becoming delinquent at a hefty pace. >> reporter: others worry about potential losses from commercial real estate. while those losses may not be as bad as originally feared, they have yet to fully materialize. >> commercial real estate has a long tail, as we say. it takes a long time, it's a lagging indicator of the economy. it's not so much when bad things hit, it's what happens later, when layoffs happen, rents fall. we think this is the year when we get the real losses in c.r.e.

>> reporter: some banking experts are also concerned about the overhang from financial reform. they say fear of unknown changes could stop this year's momentum in financial stocks. suzanne pratt, "nightly business report", new york. >> susie: tom, investors are going to be talking about tech stocks, especially after the intel report came out. that will set the tone for training. >> clearly, and it is a good tone at that, if intel, after the close was up by better than 3%. let's get to it and take a look at tonight's market focus. the intel news after the close puts the focus on technology heading into tomorrow's opening bell. after the close, intel was up as much as 3%, adding to the gains ahead of its earnings. intel told us to watch for smartphone and tablet chip announcements later this year.

the results will influence trade across the semiconductor sector. the semi exchange traded fund hit a new 52-week highs before the intel news. intel is the biggest component of this e.t.f. intel wouldn't comment on rumors that it may be interested in palm. palm shares saw some profit taking after the move up from under $4 a share just two weeks ago. the major indices climbed out of negative territory through the day, but energy stocks held back the gains. major oil stocks were among those weaker. the international energy agency increased its forecast for global oil demand, but it also thinks supply will increase. earnings and outlooks helped set the tone as the market shrugged off the disappointing alcoa sales numbers. alcoa was the biggest percentage loser of the dow industrials, losing more than 1% on about three times its normal volume.

but it wasn't all disappointment for industrial earnings today. fastenal sells industrial and construction supplies. stronger first quarter were driven by manufacturing, which brings in about half of fastenal's revenue. the stock rallied to a new 52-week high and is now less than $1 away from an all-time high. a few others, meantime, are resetting expectations ahead of their earnings reports in the weeks to come. fertilizer maker c.f. industries warned that its first quarter sales will be disappointing. it also plans to sell stock and issue new debt, raising money to pay for its acquisition of terra industries. tennant makes industrial cleaning supplies. it raised its quarterly and full year outlook, leading to a nice stock rally. while the market awaits j.p. morgan earnings tomorrow, the biggest bank in puerto rico provided for some outsized gains on huge volume. popular jumped almost 15% and was the most actively traded

nasdaq stock. it is raising $900 million through a preferred stock sale, money it may use to buy failing banks, expanding its presence. it also says it may sell some units, which could fetch about $1 billion. for more than a year and a half, avon has been conducting an internal investigation into allegations of bribery. it now has suspended four of its top executives in china. the stock saw heavy selling. the company's investigation centers on allegations of employees buying trips for chinese government officials. the probe includes operations in latin america, where it gets 40% of its sales. education stocks ran to some new highs as the u.s. department of education continues work on a new rule directed at the industry. the regulation aims to make sure graduates can make enough money to pay back their student loans. if they don't, the schools federal student loans eligibility would be at risk. the worry is that the rule may

cut into profits at education management, devry, i.t.t., and corinthian by limiting student loans. credit suisse thinks the education department will exempt schools from the requirement if they meet certain graduation and employment thresholds. all four rallied on heavier volume. tonight's triple digit gainer comes from the world of drug development, as is often the case. molecular insight pharmaceutical is a micro-cap company, even after today's 128% jump in its stock price. phase two clinical trials of a cancer drug show symptoms improve for certain tumors. and that's tonight's "market focus".

>> susie: ask doctors about the new health care law and you'll get an opinion, and a second opinion. some are grumbling about it, but others, like doctor brian o'leary are all for it. he's been an internist for two decades and says health care reform is the boldest change in medicine he's ever seen. diane eastabrook visited his office in suburban chicago. >> you ready? how are you? >> reporter: dr. brian o'leary's days are a blur of patient appointments, prescriptions, and more patient appointments. o'leary's has roughly 4,000 patients. he thinks health care reform will bring even more newe[f patients into his internal medicine practice and help him take better care of them.

>> i'm hopeful that the pilot projects that are being funded by some of this legislation will look at innovative ways to take care of people to prevent disease from progressing in ways that are very expensive and reduce costs, preserve access and quality. >> ah, that's cold. >> sorry! >> reporter: 56-year-old ed beckenhaupt is a case in point. a recent change in insurance providers increased his co-pays and out-of-pocket costs. so he's cut down on doctor visits and medication for his diabetes. >> when was the last time you tested your sugar? >> it's been awhile. i haven't done it since the last time i seen you, no. >> do you have any way of guestimating about how you're doing? >> i'm probably about 150 or 170. >> reporter: o'leary thinks government insurance subsidies to employers could provide better coverage for people like beckenhaupt. >> these are people who are the most vulnerable, most likely to have morbid events, heart attacks, and are most likely to cost society the highest dollar amount.

>> reporter: o'leary's practice is part of the dupage medical group which includes nearly 300 doctors in 40 offices west of chicago. all of those offices are linked electronically, so doctors can share patient information at the click of a mouse. health care reform is expected to electronically link all medical professionals. that, says o'leary, could cut costs by preventing duplicate testing. >> we talk about preventing disease and we talk about taking care of patients in an efficient way, but we often don't have a good way to measure that. >> reporter: dupage medical group c.e.o. mary goldsher is still leafing through the nearly 1,000 pages of the new legislation. she thinks health care reform will encourage her doctors to better coordinate patient care. >> what the insurance company does, what the public does, is gives us a little push that maybe sometimes we need to improve those factors that can have a real effect in making care better. >> reporter: o'leary says the legislation isn't perfect, but it's a step in the right

direction. >> it is bigger than anything i've seen in health care over the last two decades. >> reporter: diane eastabrook, "nightly business report", naperville, illinois. >> tom: here's what we're watching for tomorrow. federal reserve chairman ben bernanke testifies on the economic outlook before congress. our "street critique" guest is kris jenner, manager of the health sciences fund at t. rowe price. also tomorrow, we'll update the health of u.s. consumers as we see the march reports on retail sales and consumer prices. late today toyota said. 20 10 s.u.v., that's the lexus 460 model. the move comes after consumer reports urged readering to steer clear of that model. they put a rare "don't buy" recommendation on that lexus because of a rollover risk. 4800 of those s.u.v.s have already been sold so far

this year. the sales suspension comes as le lexus parent toyota deals with massive recalls and problems. >> tom: those problems at toyota have helped boost sales at rival ford. the automaker said today u.s. sales jumped 37% in the first three months of this year. that's ford's largest quarterly market share gain since 1977. ford's entire lineup saw higher sales, most notably in s.u.v.s and pickups, enough to make the company optimistic about consumer confidence. we'll find out more about ford's quarterly performance when it reports earnings at the end of the month.

>> susie: it's crunch time, with just two days to go until your federal taxes are due back at the i.r.s. and kevin mccormally is here to help. he's editorial director at kiplinger's personal finance. in tonight's "tax tips", kevin takes on the 1099 mine field. >> the i.r.s. loves those little pieces of paper called information returns, you know, the forms the agency gets from all sorts of companies about your money. the w-2 from your boss and various 1099s. here is a key piece of information, money reported on 1099s isn't always taxable. the 1099 i.m.p. covers taxable interest and tax-free interest. the 1099 "b" shows

proceeds of sales. i have one friend who got a 1099 "b" showing $50,000, even though he didn't sell any stock in 2009. he did have $50,000 worth of bonds mature. no taxes due on that transaction, but he has to report it on his schedule drchlts. what about the 1099 "q," that reports money distributed from 529 state college savings plans. it is tax-free if you use the to pay qualified college bills, and the 109 "g" reports state funds received next year. tax-free for anyone who claimed the standard deduction under the 2008 federal return. but for 2009, the first $2,400 of jobless pay is tax-free. it's up to you to reduce the amount shown on the 1099 by $2400 to arrive at the proper amount to report on your return. bottom line: don't let an information return mislead you into overpaying your

taxes. i'm kevin mccormaley. >> susie: and that's "nightly business report" for this tuesday, >> susie: that's "nightly business report" for tuesday, april 13. i'm susie gharib. goodnight everyone, and goodnight to you too, tom. >> tom: good night, susie. i'm tom hudson. goodnight everyone, we hope to see all of you again tomorrow night. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org

>> be more.