for "nightly business report," i'm hampton pearson in washington. >> chief economist with wells fargo securities. john good to see you again. welcome. >> thank you. >> let's start with if you think the timetable is up for the fed. >> there's two for this. the job number was very good. it was broad based except for mining which incorporates the oil drilling the number was very strong. the unemployment rate did decline. from the real size of the u.s. economy, it's a good story. but i think early, you mentioned a change in timing and that's why i think caught the markets off guard. it brings forward a lot of market expectations that the fed could easily signal in june and increase in the federal funds rate. that would change as timing i think, really impacted the equity market as well as long-term interest rates. that's the second part of that interesting story. >> the stock market react as if can't go up if interest rates do. what is the stock market performance rise? >> that's an interesting line tyler. in fact historically the stock market has improved as interest rates have risen as

for "nightly business report," i'm hampton pearson in washington. >>> and coming up the country's biggest banks undergo stress tests to see if they can withstand a severe recession. >>> the nation's 31 biggest banks passed a test of how they would fare in an economic crisis. those tests are conducted by the federal reserve and next week we'll be told whether or not they can go ahead with plan to dividend. kayla tausche is with us and has more on results from the test. i think it was encouraging that all of the banks passed but they all kind of got different grades. >> it's encouraging but is it too predictable or easy for banks to figure out what they need to do with their balance sheet but for now, sue, it's good news. all 31 banks representing 80% of global banks assets passing this test which is quite a vote of confidence in the length that they have -- the measures they've taken to build up the capital levels after the crisis. they've come a long way. >> like the common core for bankers. did this make it more likely to be able to pay them? >> this is only part one of the test. it's a

hampton pearson has more from the supreme court. >> don't take our care! >> reporter: at the supreme court, it was a battle over tax subsidies that make health insurance affordable for millions of americans that triggered the latest legal showdown over the affordable care act. opponents asking the high court to limit those federal subsidies only to residents of the 16 states with their own health care exchanges. that adheres to the exact text of the affordable care act. and it's a direct challenge to an irs interpretation of the rule making those subsidies available to everybody. >> what the internal revenue service has done isn't fair. it isn't right. and it isn't legal. >> reporter: inside the high court, justices tested the lawyers op both sides. the courts' liberals challenged michael carbon over his limiting the subsidies. justice ruth bader ginsburg said cutting off in the 40 states with federal government only exchanges would be disastrous. more people will exit the market because premium will be too expensive for them and you will then again raise

for "nightly business report," i'm hampton pearson in wa. >> craig garthwait joining us now to discuss what's at stake for businesses and millions of people now covered under the affordable care act. he's at the kellogg school of management where he specializes in health care. professor, welcome back. let's just cut to the chase here. would an adverse ruling out of the supreme court effectively end the affordable care act as we know it? >> well certainly in the 30 plus states that chose to use the federal exchange rather than their own exchange the citizens there would lose access to subsidies. many of those people would be unable to afford insurance and the exchange in those states would effectively cease to run. premiums would be uninsured. in those states you'd see the beginning of the end of the aca. >> what about the subsidies indeed mixed? what businesses would be most affected? >> busines you look at are hospitals. if you think about how our health care system works, hospitals are the de facto insurers of last resort. if you don't have insurance and go there, you get care. if yo

they expect patience, if not caution from monetary policyma for "nightly business report," i'm hampton pearson in washington. >>> stocks took a breather today after a big week of gains. the dow jones industrial average fell 11 points to 18,116. the nasdaq saw a 15-point pullback but remained above the key 5,000 level. and the s&p 500 dropped a little bit more and in the treasury market the yield on the benchmark 10-year remains below 2%. >>> now to the european economy, and european central bank president mario drawingy said today the ecb will buy public and private debt until it is convinced inflation has normalized. it comes amid reports greece to could run out of money next >> let me disagree with you about -- almost about everything first of all, are we blackmailing greece? well it's a bit of a reach when you look at the exposure that we have with greece. ecb has 104 billion of exposure to greece. this is equal to 65% of greek gdp. if the highest exposure in the eurozone so it's a -- what sort of blackmail is this. it's up to you to judge. >> he spoke today at the european parliament. >>>

for "nightly business report," i'm hampton pearson in washington. >>> and just yesterday, by the way, the supreme court issued a decision that could affect securities lawsuits. the high court said investors could not sue companies for making misleading statements of opinion in an sec filing that later turned out to be false. but investors can sue if documents filed with the sec express an opinion but omit important facts. the case stems from stock offering statements filed by om omnicare. the supreme court decision was unanimous. >>> the security and exchange commission took an important step to making it easier for small and mid-sized businesses to raise cash in the public market. the commissioners approved rule changes that allow companies to raise up to $50 million a year from the general public without certain regulatory hurdles. that's way up from the $5 million cap. this rule approval was part of the jobs act the president signed into law nearly three years ago. >>> and american express' investor say, ken chenault said he has a strategy to overcome recent setbacks. dow component

hampton pearson outside the supreme court.e meantime more details about the apple watch expected to be unveiled at an event in san francisco next week. however, our next guest wrote an article in "fast company" this week, you guys realize the apple watch is going to flop, right? joining us mark wilson joins us from fast company, good to see you. >> good to see you. >> are you essentially say this is like a vanity project for jony ive? >> that's what it sounds like. i know that doesn't sound kind but "the new yorker" ran a 16,000 word piece in which they went inside the apple lab and what they say very indirectly is that ive has become obsessed with rolexes and bentleys rather than the democratized designs that brought us the iphone. >> but there's a sense that the apple is only expecting or analysts are only expecting them to sell about a tenth as many rolexes as sell in a given year for the high-end of the apple watch. they know they're not going to get there overnight. you disagree with the other analysts who say expect abou

sharp reaction from the new york stock exchange but first, hampton pearson has more on what some are calling the federal reserve's most important policy decision in years. >> reporter: federal reserve chair janet yellin and fellow monetary policy makers appear ready to open the door to a rate increase later this year. but they also appear to be in no rush to do so. >> just because we remove the word patient from the statement doesn't mean we're going to be impatient. >> reporter: the fed chair rules out a rate hike at the end of the april meeting. economic data tracking further improvement of the job market and higher inflation appr to be the most sensitive rate hike triggers but the fed chair acknowledged slower economic growth and downward pressure from the strong makes a strong case for waiting. >> just as we don't want to be pre in tightening policy and aborting a recovery that we have worked long and hard to proceed as far as it has, we also don't want to be behind t curve and beginning to tighten given those. >> reporter: markets rally based on the notion of late increase they

hampton pearson has more. >> reporter: harsh winter we send a slowdown in major west coast ports and the strong dollar not only drives on the economy ae end of the year but continue to take their toll in the first quarter. total corporate profits dropped more than 8% last year the biggest decline since 2008. that decline accelerated in the fourth quarter, as earnings from multinationals were impacted by the strong dollar. after tax corporate profits fell $57 billion in the fourth quarter versus a $52 billion increase in the previous quarter. corporate profits from outside the u.s. had a decrease of $36 billion versus a $16.5 billion increase in the third quarter. and the dollar gained nearly 8% against the currencies of the main u.s. trading partners in the last six months of 2014. >> some pullback would be expected. we're not terribly concerned about it going forward especially given the fact it's a transitory nature to that dollar. >> reporter: in contrast the benefits of lower energy prices may finally be showing up in consumer spending. the 4.4% increase at the end of last year w

hampton pearson is outside the supreme court in washington. hampton, what is so important about these six words? >> the meaning of the six words could determine the future of the affordable care act. just like it was three years ago when the mandate was really the front burner issue, we had demonstrators outside the court on both sides of the issue, and we also saw the same idealogical split among the justices. now, four plaintiffs were challenging the irs rule. they are arguing that tax subsidies should only go to individuals in states that set up their own exchanges. >> what the internal revenue service has done isn't fair it isn't right, and it isn't legal. >> now, inside the court justice anthony kennedy, a potential swing vote really questioned lawyers on both sides about the negative impact if the government loses the case but he really didn't commit to supporting either side. he is supportive of the government, and he is very unusual for the better part of the 90 minute argument we heard today. chief justice john roberts was silent three

. >>> i'm hampton pearson with your cnbc market wrap. stocks sink on worries about the fed. the dow falls 128 points, the s&p sheds 7, the nasdaq gains about 8 points. fed policymakers began a two-day meeting today. the news conference is expected tomorrow afternoon. february housing stocks slid 17% last month due to harsh weather around the u.s. oracle shares are rallying after hours, though revenue was light. there's only two of us... how much dirt can we manufacture? very little. more than you think. (doorbell) what's that? what's this? swiffer sweeper. i came in under the assumption that it was clean. i've been living in a fool's paradise! toenail fungus? don't hide it... tackle it with fda-approved jublia! jublia is a prescription medicine proven to treat toenail fungus. use jublia as instructed by your doctor. once applied jublia gets to the site of infection by going under, around and through the nail. most common side effects include ingrown toenail, application-site redness itching, swelling, burning or stinging, blisters, and pain. tackle it! ask your doctor now if

but first, hampton pearson has the cnbc market wrap. hi, hampton. >> hello, alex.o look at stocks heading into tomorrow, friday. the major averages all moving higher. the dow gaining almost 39 points. the s&p 500 rising by two and the nasdaq up by 15 points. that's it from cnbc, first in business worldwide. i want some gray...but not too much. only touch of gray uses oxygen to gently blend away some gray but not all for that perfect salt and pepper look. satisfaction guaranteed. just you and the look you want. just for men touch of gray uh, and i know my iq. okay. uh, and i know-uh-i know what blood type i have. oh, wow! uh huh, yeah. i don't know my credit score. you don't know your credit score? --i don't know my credit score. that's really important. i mean -- i don't know my credit score. don't you want to buy a house...like, ever? you should probably check out credit karma, it's free. credit? karma? free?...so, that's... how much? that's how much it's free. credit karma really free credit scores. no credit card needed. ♪ building aircraft, the likes of which t

. >> i'm hampton pearson with your cnbc market wrap. stocks end with modest losses.ls by 11, the s&p is off 3, the nasdaq sheds 15 points. existing home sales rose last month, but the gain was less than expected. sales jumped just 1.2% in february, reclaiming some of the ground after a steep decline in january. gas prices are taking a breather. prices have fallen four cents to 2.50 a gallon nationwide. that's it for cnbc, first in business worldwide. ♪ [ piano background music begins ] ♪ when i was on wall street i felt trapped in that i was investing in a health care industry that i didn't believe in. for years i really struggled with this idea that people were making money off my illness and i wanted to do something different and so i finally made that change. [thunder and rain] [thunder and rain] [thunder and rain] congratulations. you're down with crestor. yes! when diet and exercise aren't enough, adding crestor lowers bad cholesterol up to 55%. crestor is not for people with liver disease or women who are nursing, pregnant, or may become pregnant. tell your doc

we will talk triangulation coming up next but first hampton pearson has the cnbc wrap. >> let's lookomorrow after a big rally today. the dow jumping 228 points the nasdaq netting 57 points. >>> that's it from cnbc, first in business worldwide. doug. you've been staring at that for awhile, huh? listen, td ameritrade has former floor traders to help walk you through that complex trade. so you'll be confident enough to do what you want. i'll pull up their number. blammo. let's get those guys on the horn. oooo looks like it is time to upgrade your phone, douglass. for all the confidence you need. td ameritrade. you got this. whether you need a warm up before the big race... or a healthy start before the big meeting there's a choice hotel that's waiting for you. this spring, choose choice twice, get a night at no price at 1,500 hotels. book now at choicehotels.com ♪ building aircraft, the likes of which the world has never seen. this is what we do. ♪ that's the value of performance. northrop grumman. now with the xfinity tv go app, you can watch live tv anytime. it's never been easier wit

. >>> i'm hampton pearson with your cnbc market wrap. stocks pulled back. the dow falls 85 points.e nasdaq is off by 28 slipping back below the 5,000 mark. automakers had a tough february. sales figures fell short of analysts estimates. target plans to slash thousands of jobs over the next few years as it tries to cut costs and restructure its business. biotech to clean energy. whether your business is moving, expanding or just getting started... only new york offers you zero taxes for 10 years with startup ny business incubators that partner companies with universities, and venture capital funding for high growth industries. see how new york can grow your business and create jobs. visit ny.gov/business there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like nee

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. >>> i'm hampton pearson with your cnbc market wrap.session lows pressured by a strong dollar and interest rate jitters. the dow plummets 332 points wiping out all the gains for a year. the s&p sliding by 35. the nasdaq 80 points. a different story at target. last week it said it would lay off thousands of workers. 1700 jobs are being eliminated. another 1400 will go unfilled. that's it from cnbc, first in business worldwide. nderserved season". and before he quit his friend's leaf-raking business for "not offering a 401k." larry knew the importance of preparing for retirement. that's why when the time came he counted on merrill edge to streamline his investing and help him plan for the road ahead. that's the power of streamlined connections. that's merrill edge and bank of america. it's a significant improvement over the infiniti we had... we went around the country talking to people who made the switch to ford. the brand more people buy. and buy again. oh i love it... we test-drove the escape... we both said, "i think that's the one".

. >>> i'm hampton pearson with your cnbc market wrap. stocks ended in red.w slides 117 points. s&p falls 10. nasdaq up by nine. the number of americans filing first-time job less claims rose by a scant 1,000 to 291,000, falling we below the key level. shares finished down nearly 1%. and google intel are teaming up on a smart watch. it's expected to hit stores later this year. that's it from cnbc first in business worldwide. it's a significant improvement over the infiniti we had... i've had a lot of hondas... we went around the country talking to people who made the switch to ford. the brand more people buy. and buy again. all-wheel drive is amazing... i felt so secure. i really enjoy the pep in its step... that's the ecoboost... the new image of ford now looks really refined. i drove the fusion... and i never went back. escape was just right. just announced, make the switch to ford and get $750 competitive owner cash on top of other offers at your local ford dealer. there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and wh

. >>> i'm hampton pearson with your cnbc market wrap. stocks begin the week with a rally.>> one stock not participating in today's rally, netflix, which was downgraded to a sell by ever core. shares finished down more than $16 or nearly 4% and blackstone group is buying chicago's willis tower, formerly known as the sears tower for 1.3$1.3 billion, the highest price ever paid for a building outside of new york city. that's it for cnbc, first in business worldwide. before earning 1% cash back everywhere, every time. and 2% back at the grocery store. even before she got 3% back on gas all with no hoops to jump through. katie used her bankamericard cash rewards credit card to stay warm and toasty during the heat of competition. that's the comfort of rewarding connections. apply online or at a bank of america near you. when you ache and haven't slept... you're not you. tylenol® pm relieves pain and helps you fall fast asleep and stay asleep. we give you a better night. you're a better you all day. tylenol®. ♪ one, two, three o'clock. four o'clock pop. ♪ five, six, seven o'clock

. >>> i'm hampton pearson with your cnbc market wrap. the dow closed up 39 points. up two and a half. the nasdaq jumping nearly 16 points. cost cost costco finished the day up. and the nation's top banks all passed the feds annual stress test, which shows the nation's 31 largest banks are stronger than any other time since the 2008 financial crisis. and the euro fell below a $1.10 for the first time since september of 2003. that's it from cnbc. first in business worldwide. why do i take metamucil everyday? because it helps me skip the bad stuff. i'm good. that's what i like to call the meta effect. 4-in-1 multi-health metamucil is clinically proven to help you feel less hungry between meals. experience the meta effect with our multi-health wellness line. when we stopped selling the cheeseburger pizza boy did i hear about it. @biggbill7 writes: are you kidding me? no more cheeseburgers on a pizza? are you kidding me? they're back big bill. with bacon. are you kidding me?! introducing the new bacon cheeseburger pizza. get a large for $12. and add our new double chocol

but first hampton pearson has the cnbc market rap. how is your bracket?>> well those were two bracket busters, at least shattered glass on my end. i lost out on both of those. anyway let me move on and take a quick look at the stocks. we have a reversal of fortune today. heading into friday the averages look like this. the dow losing 117 points. the s&p sinking by 10. the nasdaq alone, gainer of the day, adding nine points. that's it from cnbc, first in business worldwide. surprised? in fact, america is now the world's number one natural gas producer... and we could soon become number one in oil. because hydraulic fracturing technology is safely recovering lots more oil and natural gas. supporting millions of new jobs. billions in tax revenue... and a new century of american energy security. the new energy superpower? it's red, white and blue. log on to learn more. >>> we will never be royals as the song goes, but not so for prince charles and his wife camilla. they are wrapping up a whirlwind visit to washington today, that has so far included a trip to

hampton pearson in washington with the highlights of today's hearing. >> hi, kelly.atest challenge to obamacare really centers on the tax subsidyies that makes health insurance affordable for millions of americans and the irs is in the middle of the controversy. they put out rules that say those subsidies should be available in all 50 states, essentially for everybody. but opponents say only residents of states that set up their own insurance markets can get government subsidies to pay those insurance premiums. now, inside the high court, justices tested lawyers on both sides. the court's liberals challenged michael car vin over his argument to limit the subsidy. justice ruth bader ginsburg said giving subsidies only to people in the 16 states would be quote, disastrous when it was the government's turn the sol lis ter was hit by questions about the law congress wrote for subsidies established by the state. justice alito suggested it might be possible to delay the effect of any ruling from the high court to give the states and federal government time to act. the gove

here to break it down is cnbc's hampton pearson who joins us from the labor department in washington,.c. good morning. >> reporter: good morning. both of those headline numbers, jose are real upside surprise. the expectation was for just 240,000 jobs. talk about a 5.5% unemployment rate you're kind of at the upper end of what the federal reserve considers to be full employment. a lot of that job growth was in the private sector. 288,000 overall again, above consensus forecast. across the board. we saw professional business services leading the way. generally good paying jobs followed by retail and even construction adding about 29,000 jobs, despite the weather. and the expectation was, frankly, weather and layoffs in the energy industry due to those falling oil price was going to be drags on the employment report. so very strong report. when you look at the breakdown of that 5.5% unemployment rate the black unemployment rate 10.4 percent. hispanics 6.6%. asians, 4.0% about the same. no real change there. the final missing piece, however in all of this jose still no real signs of wage