The opening bell, piercing thh 26,000. It seemed like the he will rally was entering a new phase. But then a turn. And then a collapse. The rally was no more. The indexes turned negative. And when the closing bell rang, the dow swung nearly 400 points in total, its biggest reversal in yearly two years. At the close, the Dow Jones Industrial average fell ten points to 25,792. The nasdaq was off 37, and the s p 500 drope wild day was a he scratcher. Bob watched from the new york at it a color coaster ride for the markets with the cow opening at a new record of 26,000. But shortly after that milestone, with the dow up 283 points in the middle of the morning, investors just seemed to lose interest and the markets drifted lower into the afternoon with the dow ending fractionally negative. What happened . Shutdowns later on. Up y but for most traders the markets reached such lofty levels it was logical to take profits. You cant blame them for thinking this way. Much of the early rally was fueled by optimism, whic real there is also a little bit this fomo going on. Fear of missing out on the rally. So we saw Exchange Traded funds with very strong inflows in the last week, i mean into everything, u. S stock market, into the european stock market, into emerging mark stock, into everything. And when Everyone Wants in, traders get nervous. Lets talk more about why the market reversed earlier and what t this long running bell, joining us is hue johnson, chief Investment Adviser at hue johnson investors. Good to have you back. Nice to be with you. I guess we shouldnt be surprised given the velocity of the last couple of weeks with market. I mean, it was a record run in terms of time from 25,000 to 26,000 on the dow. Yeah. You know, its probably time for a breather. I think anybody thats a professional investor thats been at this for a long time, as i have, you just ordinarily expect some sort of a breather, so sort of a pullback. Its common sense to expect that. And quite frankly, the decline today might be it might be setting the stage for a little bit deeper of a correction, a correction phase in this market. We came a long way, very far, very fast, not only in the first two weeks of this year but obviously in the last two years. Lets just say time for a breather with some timeout. But i wouldnt derail the overall bull run in the market . Would it be that healthy correction that we have been looking for for so long . Yeah, i think it would be a healthy correction. I don it redetails the bull market. When i ask myself is this stkt economic Interest Rate cycle still alive and i look at the performance of th market over a longer period of time is i look at the performance of important economic variablesibles they say pretty clearly that we have further to go in the current cycle. In a to that, sue, i would simply say that i think earnings will be Strong Enough. I will answer the question which i think is the big question. I think earnings will be Strong Enough in 2018 to justify or support stocks at current levels and even higher. What about Interest Rates . Becae if indeed we get a little more wage pressure or inflation, you know, we have been watching the oil market for the last couple of weeks move higher. And some say that thats the inflation the fed has been looking for or waiting for, and therefore they might raise Interest Rates a little bit more ca this market withstand that . For a while, we can. For a while i think the rise in Interest Rates that i suspect is coming will not be enough to derail the bull market or offset the good news from very strong earnings, earnings that are helped along so much by the reduction in co taxes toer the tax reform. But eventually we are going to get to this point and you have seen this before, and i have seen this before where Interest Rates are simply going to be too high. And the Interest Rates or the rise i rates, the level of Interest Rates will more than offset the good news on earnings, and then well start the end of the cycle, or the end of the bull market and the start of something that might not be pretty to watch from the point of view of the before you go, hue, where are you finding value in a market that pierced through the 26,000 mark today . It hard to find value you but i do find value in e stuff that really works. Econom sensitive materials in the market. Materials, and still if you look hard some Technology Stocks which i think still have room on the bull side. Stick with the bull market. Later in the year we might have to stick to defense in telecommunic and technology but its too early for that. Merck was the best performing component today. Their blockbuster drug when used with two chemotherapy drugs was successful as a fires line for lung cancer. The results indicated the drug cocktail could help patients live longer and stop the disease from advancing, mercks6 in tr. The second best performing stock today was United Health care. I topped expectations and raised its profit outlook for the year by more than 16 due to the corpor tax cut. The insurer also said it plans to speed up investments in technology that it hopes will cut customer costs. United health is the largest u. Health insurer and the first to report Fourth Quarter profits. Stock rose more than 1. 5 on the trading session. Then there was general electric. It was the worst performing stock on the blue chip index today, falling nearly 3 . This after the Company Announced a 6 billion setback, and the ceo said something that was once thought unthinkable. He is thinking about a breakup. Morgan brennan has our story. Reporter you mark the end of an era. The potential breakup of general electric. A call with analysts today, ceo and chairman John Flannery said he is seriously considering it. As i look at the Company Continuing to evolve along the continuum, i believe there could be different structures that could achieve all of those objectives and that we need to examine those. I would categorize it as an examination of options and it is the kind of thing that could result in many many different permutatio including separately traded assets really in any one of your units if thats what made sense. Re he helm last summer he repeatedly sai eve is on the table as he tries to turn the company around. Today marks the first time he said a total breakup is entirely possible. Power, aeration, and health care potentially on tap to be spun out. The comments coming on the heels ge capital will inclur a 6 ng billion charge for Legacy Capital in the Fourth Quarter. And must include 15 billion over the next years. Sources say more details on a prospective breakup could come this spring. While it has not been fully decided whether such a move will actually occur the possibility mark as huge shift for the dows oldest member. And for a corporation that has been for more than a sentry americas most famous industrial r nightly business im morgan brennan. As manageran just told us, ge as we know it may soon see some major changes. What could a potential splitup mean for ailing blue chip and its stock . Here to discuss that is john incha. Thank us. Thanks for having me. Whats is your reaction to the possibility of a breakup at ge. They are facing an incredible squeeze in terms of cash flow, busine operations, it had to cut its dividend in half. Frankly this company is complicated. Im skeptical that a breakup, certainly cleanly, would not be possible. K there would be things that they could do to perhaps try and unhoc some value. The problem is ge, even though the stock has come off so much, its really not inexpensive. One of the reasons you would noertically break a company like this up is to unlock value. We dont think there is a lot of value to unlock. In fact the pieces seem to be priced fairly efficiently. In the meantime, people seem to forget you cant just separate the aviation or the health care businesses. Are the important cash generators of the company, at a time when ge very much needs cash flow. Right. It back stopping all of ge capitals bonds, over 100 billion of bonds. There would be tremendous tax leakage fr separating the company. Could be a whole host of other issues as well. With a are the options that you think mr. Flannery that could put in place to remedy the situation at ge. And we should note i believe you have a sstock; i do. Issues ge has been facing rd toda has been up to decades in the making. John flannery inherited this sort of on the right track in terms of trying to streamline the portfolio and trying to simplify it. But an outright bust up i think its going to take a ong time. I dont thin there is a quick fix for ge or what ales it. They have go just work through their challenges, whether they in power or other issues as well. Its going to take a long time. Some investors held it for the dividend. As you mentioned, they have slashed the dividend. Do they need to eliminate the dividend completely. Well, if you look at the cash flows and you referenced early whier in your piece the 15 billion of insurance. This is just one segment of ge capital that they are on the hook for. Its not clear that they do not have to continue to cut the dividend. Ge is heavy hadly owned by retail investors. Many of them watching the program tonld. I would tell them i dont bee dividend is safe and secure. I k based on all the issues that ge is facing including the debt obligation, future cash obligationd s forth, i do not think this dividend is secure, no. Okay. Very quickly because im really out of time. Okay. You own the stock, do you own it or do you just sell money you have left from ge into Something Else . I think you mov i thi there is going to be many years of work through and work out. I think there a better places. Ge now today provides sort of a market dividend. Its not remarkable versus lots of other options. No. We would take profit im sorry. We w just sell the stock. Probably no profits, and move on. On that note, john, thank you so much. The head of the Worlds Largest assess Management Firm has a warning for ceos. Black rocks larry fink g the c publicly traded companies that they have a social responsibi to their communities, not just a Financial One to shareholders. In his annual letter, fink wrote the Companies Need to demonstrate a Long Term Strategy for Value Creation with an understandin the companys effect on the world. Black rock manages more than 6 trillion in assets. Still ahead, the immigration fight deepens as the threat of a cost of bps deep water horizon spill is increasing. The company is taking a nearly 2 billion charge bringing total costs from the 2010 gulf of me disaster to about 63 billion. Well blowout caused the worst move shore oil spill in american history. Bp will take the charge in the Fourth Quarter, which will also see a separate 1. 5 billion accounting charg related to the u. S. Tax bill. Senate democrats say they are close to getting the votes they need to reverse the fccs controversl decisn to roll back rules governing the internet. Even if the resolution were to pass the senate, it would still need a majority vote in the house and the president s signature. Last month, the fcc struck down rules that prohibit Internet Service providers from slowing traffic to certain website. Also in washington, there e repor that the former white hous chief strategist has been subpoenaed. According to the new york steve bannon was subpoenaed last week by special Counsel Robert Mueller to testify before a grand jury as part of the russia investigat believed to be the first time mueller has used a grand jury to seek information from a member of the president s inner circle. He w reportedly subpoenaed du his closed door meeting with the house intelligence well, this next sentence probably sounds pretty familiar. We are just days away from a government shutdown. The deadline to reach a deal is friday. And right now, the focus is on two issues, spending caps, and immigration. John whowood joins us tonight from boston this evening. John, why is an immigration deal connected to the governmen funding deadline . Well, you recall, sue, that presiden ordered the ending of the socalled daca program, protecting those d. R. E. A. M. To the United States have not committed crimes there are about 800,000 of them he has directed that to expire at the during the month of march. What the democrats are saying is that because President Trump has said he wants to protect those d. R. E. A. M. Er in a different way than president o did, and because its very popularing it this spending bill because they have to reauthorize funding for the government by friday. So they are establishing that as a condition of their cooperation. Do k they can still reach an agreement . And if they dont, what are the possibilits of government shutdown. T still reach an agreement. We have seen from president p that he often reverses field and takes one position one day, another the next day. There is the basis of a bipartisan deal on immigration although some conservatives in the Republican Party dont like it. But it has gotten harder because of the way the president spoke in the Oval Office Meeting we have all been talking about for several days f. They dont reach an agreement there is a chance we will have a government shutdown. Ther also a chance they will find a way out with a very shortterm extension of government funding the give them more time to work on it . We will wait and see. John harwood in boston tonight. Its been yearly a year since donald trum was sworn in as president. He told the company that he would help grow the economy. So how is he doing so far . Steve liesman takes a look. S to have gotten his 3 growth number during his first three quar is how much he is responsible for and it whether the growth can continue. Gdp afternooned exactly 3 since the Second Quarter of 2017. Thats assumes the fourth quarr comes in at the projected 3 . Thats an extra 1 of growth compared to the prior four d mos of that extra growth has come from investment, including less growth in structures and housing but more growth in business equipment. One force that could be behind it is increased business confiden from the president s policies, including expected tax cuts and actual deregulation. Higher stock prices could also be generating a wealth effect. You have gone from an administra that said you didnt build it to an administra that says how can i help you build it. Repor part of the equipment spending increase looks to be tied to energy. The growth has also been helped by more federal spending from the feds. There is also a big boost in inventories and in trade in part because of the weaker dollar along with better growth overseas. Job growth has been strong under President Trump, up 1. 9 million jobs since february but a bit less than the comparable 11 months of the obama administrati em plunged to 4. 1 from 4. 8 . Retail jobs have been depressed in the president s first year, continuing the tre seen before. Manufacturing js has been strong. The revival of the manufacturing goes to the Global Economy. The ent Global Economy is on the same page for the First Time Since the recession ten years ago. Its tough to connect those dots between economic gro and the president. I mean, there was no major change in Economic Policy except at the very end of 2017. Thats the deficit financed tax cuts. The jury is split. Some see a trump economy benefiting positive action in the real economy to his expected and actual policies. Others say these are trends beyond the president s control and influence. Many experts agree. We will he see if this trend continues now that his policies are actually coming into place. Steve liesman. The energizer bunny buys its rirayovac. Energizer has agreed to buy the company from spectrum for 2 billion adding the rayova krrk company its portfolio. Citigroup posted its biggest quarterly loss ever as a 22 billion charge related to the new tax law erased the banks profit. Los was largely due to accounting changes the bank had to make in under the new legislation. If you take out the charge,city beat expectations. So shares were up a fraction, to 77. 1. Au nat said it would use the save prosecution the new tax plan to bolster its retirement and Health Benefits for employees. Nations largest auto retailer said it would also see a onetime benefit of 45 cents a share for the Current Quarter and an 80 cent benefit for full year earnings. They were down to 57. 24. After the bell, csx reported stronger than expected earnings but said a drop in shipments caused revenue to disappoint. It comings one month after the csx chief executive died while in the midst of a company turnaround. Csx initially fell afterhours after adding 2 losses to the regular session. Also after the bell, boeing said it was launching a company with adiant to create airplane seats. Boeing said it would have a minority stake. Boeing shares initially fell fractional in the afterthe bell hours necessar is sellingo italys if a raro which makes butter finger and crunch bars which has been underperforming its rivals for years as consumers gravitate to more healthy food choices. For ferraro, the purchase is the chance to scale up quickly in the u. S. Market, which is a top priority for that company. Coming up, the future of driving. Her something you dont see every day. The whole side of the car opens up. Innovation broug to us by a chinese auto company. And they want to sell cars in the United States. Im phil lebeau. That story coming up o heres a look at when the watch for tomorrow. Soldman sachs and bank of america are scheduled to report earnings and givifiedance on how their financials will be impacted b the senate will hold its second and final vote for fed chair nominee jerome powell. And the fed will announce its beige book, an anecdotal look at Economic Conditions across t country. Th what the watch for on the price of bitcoin fell below 12,000 for the first time in more than month. That drop came atmosphere south koreas finance minister said the shutdown of Virtual Currency exchange is still an option. South korea is one of the largest markets for Digital Currency trading. There are repor of a crackdown on the crypto currency market in china. Gl car makers are pouring money into electric vehicles. Togeth investm total 90 billion. According to analysis by reuters, that number is expected t grow. The worlds top automakers are expected t introduce new types of Battery Powered vehicles as well as hybrid cars over the next few years, many of them in china. General motors, meanwhile, expects Profit Growth to stall this year following five years of increased earnings. Th said results in 2018 will be inline with last years. Gm says pricing pressure in the u. S. And china will impact its results but the company is forecasting higher profits in 2019 with a revamped lineup of pickups hitting the u. S. Market. Late today its rival, ford, issued disappointing profit guidance. Automaker said higher commodity costs are offsetting gains for continued demand for its pickup trucks. In years Detroit Auto Show is highlighting an industry at a crossroads. Are strong but growing questions abo nafta and americas appetite for trucks and suvs have some questioning how long the good times will last. Reporter riding a wave of demand for bigger vehicles, automakers are rolling out a slew of redesigned suvs like the jeep cherokee, and pickups including the ram 1500, and chevy silverado. Its been a huge couple of truck years. We anticipate another big truck year. You have got to keep up to date. Rep ford, which underestimat appeal of midsized picku is now trying to catch up to competitors with the new ranger pickup. The f 150 is doing really well. D t proves to us, with this midsize category that we need to be there. So a lot of what weve learned has come back with the ranger. Weve got a good franchise around the world. But having it here in the u. S. Is really important. Hovering over automakers is the question of what happens to nafta, and the vehicle they import from plants in mexico and canada. President trp i threatening rip up the agreement and tax vehicles and auto parts coming from north and south of the border, a move that could have huge consequences. The consumer in the absence of a realignment of production facilities will pay a price. Its not insignature zmoont as cost goes up, demand typically goes down. Its simple economics. Thats risk to employment here in the u. S. Reporte questions the u. S. Market is expected to remain strong and lucrative. So lucrative, china based gac motor is planning to sell cars here starting next year. If gac can deliver on its promise it will become the First Chinese auto brand sold here in the United States. Phil lebeau, nightly business look at wall streets big reversal. After the dow surged past 26,000, steam. And by the close the dow lost ten points. The nasdaq lost 37 and the s p 500 dropped nine. Tonight, im sue sioux. We this is bbc world news america. Funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for americas neglected needs. Planning a vacation escape that is relaxing, inviting, and exciting is a lot easier than you think. You can find it here in aruba. Families, couples, and friends can all find their escape on the island with warm, sunny days, cooling trade winds, and the crystal blue caribbean sea. Nonstop flights are avaie