That and more for nightly Business Report for march 24th. Good evening, everyone. Welcome. Biotechnology known for breakthrough therapies, it may be the most exciting businesses of the 21st century. Medicines that could improve and save lives of millions. With names like cellgene, amgen are among market leaders, especially on the nasdaq but not the past two days. Down sharply on friday, partly no response to reports an influential congressman questioned the drugs pricing. The stocks tumbled again today. The biotech index was off 3 today alone. That had a big impact on the markets overall, which were able to close well off the lows of the session. The dow up as much as 80 points as one time, down as much as 7 ask finished 26 points lower. The nasdaq down by 50, more than a 1 decline. The s p lost five. Sheila looking at what is driving the sell off of the bioteches. The sell offs started last week after Congressional Democrats sent a letter asking for more information about its pricey drug to treat hepatitis c. The drug cost approximately 84,000 for 12 weeks treatment making it one of the most expensive in the country today. While they dont believe the question on the pricing, over the past two sessions the intext, a commonly followed measure of stocks has fallen as much as 7 making it the worst twoday losing streak since august 2011. Its a notable drop for an index, which is one of the best performing in the u. S. Stock market. 2013 buy jio stocks continued t pose double digit increases. They remain positive on the biotech stocks. The fundamentals for the Larger Companies remain solid and Jp Morgan Says growth porospects remain above the market. Joining us now jeff, senior biotech analyst at sanford c. Burnstein. The sell off as reported was triggered by the words of one congressman about one company. Is this an over reaction, this sell off, justified . Certainly there is a lot relying on the letter on friday and potential risks to the biotech pricing model. We really dont think there is much to be read into the letter and the ability of congress to dictate prices to pharmaceutical companies, doesnt exist in the current legislation. Were terribly concerned about that, however, it does signal confidence in the group and how the stocks are traded is certainly instructive for those of us who are close to a remarkable rally in the group over the last two years. So its down, oh, single digit in percent terms over the last couple days, jeffrey, but where do you think it ends . Is there more decline to go here . Yes, we had, give or take, five to ten percent correction. The largest caps, the worst performers have been technologybased companies. The corrections probably in this industry can be as much as 20 to 30 , so when we really see the selling pressure, you can see another 10 to 20 before were done and what you saw today is probably how it plays out. The largest caps the most defensive. So jeff, what do you do if you any for example, a biotech eft . Should you sale or hold on . Its a great way to play the sector over the last two years. More of them have double ld give or take and a lot of upside come from the largest cap names. I would be making sure portfo o portfolios are screwed towards the large caps. Amgen only down 2 . Even other large cap names are a safe place to hide in the event of a correction. Unfortunately, a lot of the etfs are going to get skewed around by companies that dont have the cash flow support. So if im tempted that this sector, over the long term, and i assume you agree, tell he if you dont, will be a growth area in medical technology. Should i invest, number one, and if so, show should i leave the stock picking to a pro like you . No doubt weve seen revelations in tech nothing over the last year and a half or so. Cancer therapy, nuclear, gene therapy, some of the exciting opportunities and in many ways have been validated. The optimism is justified. What people dont fully understand is the riskiness of the technologies and developments. Many of them are science experiments. So if youre committed to investing in that invasion, i would wait for the dust to settle here and get back into the etf or have a basket of these emerging Technology Companies and certainly Companies Like cell gene have access through partnerships. Thats a good way to participate, rather than pick stocks yourself. Real quickly, would you put new money into a company like cell gene or amgen . Certainly. There is large caps that are attractively valued here and we reck meant cell gene and gilliad. Be cautious about the smaller cap names. Thank you so much. There is just one week left until the Affordable Care acts open enrollment ends, but for some states, another deadline looms leaving six months to fix problems for the webbased exchanges for 2015s open enrollment. It may be harder to fix some of those than start from scratch. Reporter after a notoriously bad start, Kathleen Sebelius is looking for a strong finish to aca open enrollment. The marketplace works well for the 36 states it serves but in about half of the states that built their own exchanges, problems persist. Certainly have some states that get an f grade, some that are in the d category. Reporter among those not making the grade, hawaii, massachusetts and vermont that use cgi to build the exchanges, the same contractor for problems with healthcare. Gov. The base state fired them and maryland fired its contractor the north dakota based noridian and ceo burns is grateful that the state will keep her firm on. Having a disciplined Engineering Development and rollout is what is needed in these exchanges. Just like anything else, its like getting a person to the moon, you dont do it fast, you do it right. Reporter nothing seemed to go right in oregon. Federal and state investigators and trying to figure out why the states Exchange Oracle was never able to enroll online. Analysts say like cgi, oricle never built the system end to end. The engine is used in numerous successful exchanges, but to have the entire frame work applied or entire frame work applied to this particular solution, had not really been proven out. Reporter the exchanges that worked best, californias whose lead contractor was there. The key to success was that his team worked closely with deloite to figure out what was achievab achievable. We were building a cadillac and decided we needed a ford focus and scaled back about 30 of what we wanted. And coming out of that, was a much more focus type of work flow. Reporter with 2014 open enrollment starting in less than eight months, another tight deadline. States like oregon have to decide soon whether they will try to fix what they have or scrap it all together after investing hundreds of millions in federal grants to start fresh with proven technology. Bertha coombs, nightly Business Report. The latest new on that missing malaysia plane with 239 people on board. After 17 days, relatives received word late today from malaysias Prime Minister after satellite images spotting debris, there is no doubt flight 370 went down in the indian ocean and no survivors will be found. With deep sadness and regret that i must inform you that according to this new data, flight 370 ended in the southern indian ocean. More from beijing. Reporter the families in china were overwhelmed with despair. The relatives have been staying in the hotel behind me for the past two weeks and its been a very difficult, intense time for them where every bit of information or every rumor thats come up weighed on their mental state. Now, the airline had called the families in for an emergency briefing tonight. They said there they were listening to the statement by the malaysia Prime Minister on tv, and it was a statement that none of them wanted to hear. Now, this was a very controlled area. Normally, chaos quickly ensued. There was a man that ran out of the room. He quickly fell down an escalator and fell on his back and had to be dragged away. There was a woman that fell to her knees and sobbed, and she said that her children were on the plane. She said her grandchildren were on the plane, and that she was now alone. There were many medical emergency workers who were going into the room and they were trying to help the people who were there because several of them had fainted from the shock, and also angry relatives who started to break out in fights and were demanding for information including any hope or sign that their families might be alive. Well, the recent slow down in growth in chinas economy, coupled with beijings loosening the grip on their currency had a big impact on sale s caterpilla. According to the ceo, there is no need to panic. In terms of our business on the ground here, our production rates, its really more flattish than down. I dont see a doom and gloom atmosphere coming up, but i dont see a boom, either. I think what were witnessing is the continuing transition from a really good solid double digit growth rate, 12 to 15 down to maybe seven or eight and frankly, were caught up in that slow down. Caterpillar, the largest maker of construction and Mining Equipment is seen as a proxy for Global Economic activity. But there was good news on the outlook for the u. S. Economy. After a setback from bitter Winter Weather and the First Quarter of the year, the consensus now from the latest survey of the National Association of business economics is for the economy to pick up, despite the Federal Reserve ending the bond buying stimulus. The group is forecasting the u. S. Economy to grow 3 or more by the end of 2014. More potential problems for General Motors. Richard bloom of connecticut is asking the attorney general to force gm to set up a fund to compensate victims, family members, car owners, defective by ignition switches in more than a million cars over the past 13 years, defects linked to 31 accidents and a dozen deaths. Under the terms from federal bankruptcy protection in 2009 the new General Motors is not liable from claims for accidents that happened before july of that year. In the meantime, the New York Times reports that federal regular laylators are looking into whether the auto maker committed bankruptcy fraud in 2009 for not disclosing what it knew about the faulty ignitions and when the company knew it. Tech drama in Silicon Valley. Did some of the biggest names conspire to fix the hightech job market . Guilty on all counts. A clean sweep for prosecutors, all five convicted of charges ranging from securities, fraud, criminal conspiracy for helping madoff hide his massive ponzi scheme for years. Nine others pleaded guilty to aiding the fraud. Detroit emerging from bankruptcy. Kevyn orr hopes the citys plan for financial reinstruction touring will be approved and put in place by this fall. Thousands of retirees and beneficiaries will receive ballots to vote by the end of april. Congress returns to washington today from one of two spring recesses and lawmakers have a lot on their plates to extending unemployment ben fits to raise the federal minimum wage. John harwood joins us from the nations capitol. What is number one on the agenda this week . Number one is going on now on the senate floor, to begin debate that would be aid guarantees for ukraine and sanctions against russia that would allow president obama to go further than hes gone and include reforms to the imf. But this is while the president other sees, this is a step forward that the administration hopes to take and democrats hope to take. They do expect to get the 60 votes needed to perhaps pass it by the end of the week. You think both sides will come together behind this ukraine sanctions, but what about issues tyler mentioned whether minimum wage, immigration, whatever. I think republicans will come together this week. Other things are much more difficult. Unemployment benefits, there is a bipartisan agreement in the senate. The house said they will not pass it. Well see whether they can sustain that position that are resisting going on with minimum wage. They may refuse and attack line with democrats. Right now its stalled. You got a bill to restore doctor fees, the doc fix. Many under medicare will see rates cut. That is one republicans and democrats will look. Is there a point at which in this Election Year work either needs to be done or just wont get done . Hard to say, tyler. Typically people said, well, if you dont get it done by the end of the summer, that big things cant happen. You look back to the 1986, the sixth year of Ronald Regans presidency, they passed Immigration Reform in september and october of the election. I wouldnt bet a lot of people but not impossible. Thats an interesting note, john. I forgot that was 1986 in the fall, john harwood, thanks very much. Herb life gives carl icahn three more seats on the board. The maker will have five icahnbacked on the board. Hes backed the company, despite claims that its a pyramid scheme. Shares surged to 52. 86. Cocacola came under attack for excessive pay. David winters who runs the Money Management firm sent a letter to coca cola shareholders including warren buffet criticizing the plan. The plan transfers too much wealth from shareholders to management. Coke responded saying winter green misunderstood. Shares were off to 38. 40. Reports that apple is no in talks with comcast for a streaming tv service sent shares of both companies up from todays session. The deal would use apples boxes and comcast cables so that content could by pass congestion on the web. Shares of apple rose to 539 and change. Comcast edged up to 50. 30. We want to remind you, comcast is the Parent Company of cnbc, which produces this program. Apple is considering launching a new on demand Music Service weighed on shares of pandora. Apple is considering developing an itunes app for google devices. Down 1 to 38. 39. Disney names its abc news president ben sherwood as the Media Networks and president of disney Abc Television group. It will replace ann twee knswee disney will buy maker studios for . 5 million. Disney fell to 79. 49. Cisco will spend a billion dollars to build up its Cloud Computing network, rather than build its own Cloud Service and compete with amazon and ibm. Cisco will deliver the service, which it will call intercloud. Shares fell. Its tough enough getting a good job these days but in Silicon Valley, hightech workers are finding how tough it can be. As josh lipton reports, there are secret agreements to not poach employees of large tech companies. It started with apple and google entering into an alleged secret agreement promising not to poach each others employees. Now Court Documents show that this alleged tech wage conspiracy scheme could include microsoft, oricle, comcast and others. The suit is being brought by attorneys representing 64,000 tech workers. A lawyer says they are seeking 9 billion in damages. They said there was a behind the scenes agreement. In 2007 when a recruiter from google contacted an apple employee. Steve jobs forwarded the message to eric smicht. I would be please fd your recruiting department would stop doing this. They fired the recruiter within the hour. Bill campbell wrote googles about steve jobs, steve called me again and is [ bleep ] that were recruiting his browser guy. He said jobs told him if you hire a single one of these people, that means war. Now when Silicon Valley executive is distancing herself from the controversy. Cheryl sand burg filed a decoration with the court on friday of last week that pins this scheme specifically on two google executives. Sand burg says she was contacted by the google executives who quote expressed concern that louis described as the perceived rate facebook could hire employees at the rate. A nonpoaching agreement in a clear rebutte to the rifle. What happens next . This coming thursday the legal fight between plaintiffs representing tech workers affected by the potential scheme and attorneys representing the Companies Involved head to court. Jury selection starts may 27th. Tech Companies Say that i had did nothing wrong. Apple says between 2005 and 2009 hiri hiring of tech workers jumped 50 and wages rose as well. No conspiracy there, apple says. One says the parties may settle out of court, another expects a fight until the end. Up next, why some of the worlds top luxury auto brands are finding america is fertile grounds for expansion. Prices at the pump still on the rise. Over five cents a gollon. The reasons, the rising cost of the additive ethanol and refineries are switching over to making more expensive summer blends of gasoline. For years, german auto makers like bmw and Mercedes Benz assembled many cars right here in the u. S. , but now demand is surging and not just in the states. As phil lebeau tells us, u. S. Manufacturing plants are the world supplier for many luxury wheels. Reporter its the newest model build by bmw and as the first ex 4s roll off the line, the head of bmw north america is banking on the luxury crossover adding to the demand of bmws x lineup. Our dealers and customers are screaming for more x 5s, x 3s and im sure they will be fond of the x 4. Reporter bmw is expanding in South Carolina, adding jobs to more than 7,000 already work. Since 2008 increasing demand led bmw to more than double production at the plant and within the next few years, that number could grow even more. There is no doubt that at some point, bmw in South Carolina could be the largest location for bmw production anywhere in the world. Reporter and it is the world beyond america that will drive 70 of the bmws build in spartanburg. The biggest market for exports, china, germany and Great Britain and u. S. Earn europe. Given the appetite for Sport Utility vehicles, could bmw some day built a half million vehicles every day in spartanburg . Its not impossible. At least we have the space to expand the plant to further grow. Reporter while bmw trails mercedes in luxury sales in the u. S. , it did sell more than 3,000 vehicles last year and the new x 4 is expected to boost the total. The x 4 rolls into showrooms in the middle of this year and while bmw has yet to announce a starting price, most believe it will start around 45,000. That will do it for nightly Business Report for tonight. Im tyler mathisen, thanks for watching. Im susie gharib. Have a great evening. Tyler and i will see you back here tomorrow. Nightly Business Report has been brought to you in part by. Thestreet. Com, founded by jim cramer, thestreet. Com is an independent source for stock market analysis. Cramers action alerts plus is home to his multi Million Dollar portfolio. You can learn more thestreet. Com nbr. 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