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They arent expected to grow much when First Quarter profit reports start coming out tomorrow. Send small children out of the room, we warn you as we show you these numbers. The dow down 166 points. The nasdaq completing its worst threeday slide since november of 2011. It was off another 48 points today. Falling to a twomonth low. And the s p 500, it hit an alltime high just a week ago but today down another 20 points, capping its worst threeday slietd in two months. We have two reports on todays selloff. Bob pisani at the New York Stock Exchange but we begin with sheila at the hardhit nasdaq. Despite the overall losses, some traders were encouraged by todays action. Pointing to pockets of strength from sectors that were recently under pressure. Biotech, for example, which has been a weak sector, did see a bounceback today. The nasdaq biotech index hosted a gain in companies ended the session on an up note. Also socalled momentum stocks that consistently move in a direction regardless of news and sometimes regardless of fundamentals. Also showing selective strength today. Facebook and netflix ended the session with small gains. Some Traders Point out despite todays overall loss, the faboue back was encouraging because it could mean overall sentiment was improving and the pullback could be on the mend. For nightly Business Report from the nasdaq marketsite. It was a roller coaster day and while stocks ended well off their lows there was still a lot of damage done for the second day in a row. Biotech stocks which had been hit hard recently were mixed today but many big nasdaq internet based names, names associated with growth and momentum, like pandora and groupon, were again weak today. But there was even broader damage this time. The financials were weak, as were Home Building and leisure stocks and even small retail names like arrow postal. Its true that the s p 500 is only a few Percentage Points off the Historic Heights it hit last week but if this continues for another few days there will be greater concerns that the market is moving toward a real correction. The dow industrials has lost about 350 points in just two days. For nightly Business Report im bob pisani at the New York Stock Exchange. Art hogan joins us with more analysis on whats next for stocks. Hes chief Market Strategist at wunderlitz securities. Nice to have you back with us. Whats your take on todays selling. Is this just sort of a natural profit taking or is something more troublesome going on . Is there a real correction as bob pisani was talking about . Its interesting, susie. We ask ourselves that question all the time because we havent seen a correction of any magnitude. At least a 10 correction in a very long time. So whenever we start to see some selling pressure which we havent seen a whole lot of, it begs the question is this Something Real . Is this going to turn into something large . Are we heading into a bear market . And i would think its not. I would think this is a normal pattern of selling. I think if you look at the momentum stocks very have been selling since about february 25o 26th thats starting to spill over into the broader market. People start to get that sense, people investing in etfs have broad sectors or indices when they start selling that takes the whole market down with it. Im not as concerned this is turning into something larger. I think the selling pressure will abate over the course of this week and well find some bargains out there. So normal pattern of selling, does that mean i should feel good about the money im losing or not . Tyler, as good as you felt about the money you made in the last 12 months. We had a very significant run here. I take that it never feels good on the way down, but it is an important reminder that stocks go down, as well as going up, and i think thats going to continue to be the case. This started as a rotation out of momentum into value. That rotation into value stopped a bit over the last two days but youre still looking at, you know, s p 500 thats flat on the year. Youre looking at a russell, too, thats taken much more of a hit and certainly a nasdaq composite taking most of the bludgeoning here. And i think that is more indicative of a rotation of a market selloff. The usual catalyst for a market rally just dont seem to be there. Usually like some kind of fed policy, strong economic numbers. Strong earnings. They just dont seem to be around this time. What are going to be the catalysts to take stock highers . I think its a very good question. A continuation of the improvement in the Economic Data calendar. I would point to things like the auto sales that came out last week much better than expectations. If that continues that means that weather related slowdown we saw in the First Quarter has turned the corner. I think earnings reporting season, not necessarily in the head line numbers but the Revenue Growth is probably going to be stronger on a percentage growth than earnings in this quarter and i think guidance because of the pull forward in the Second Quarter for demand for goods and services that were gone in the First Quarter is going to be more robust than weve seen in awhile. Slightly better Earnings Guidance than weve seen in awhile and better Economic Data is the turning point and that could happen any time in the next few weeks. Valuation on the nasdaq got a little stretched by any standard and thats probably why the nasdaq has suffered as much as it is. But it is hard for stocks to make much headway in a zero Earnings Growth environment. You make a very interesting point about revenue. But earnings this quarter expected to come in roughly flat. Yeah, you know, were expecting earnings to come in pretty slight to the upside in the Fourth Quarter of last year. We tend to miss our marks. And remember how well the Fourth Quarter came in when everything was tallied up. So yeah, if were going to come in flat then perhaps were ahead of ourselves in terms of valuation but if we take the estimate for the entirety of this year and next were only trading under 16 times you know this years earnings and about 14 times next years earnings. Those are fair multiples and i think that what were going to start to see is earnings that actually grow for the right reasons. The virtuous reason which is Revenue Growth and not just buybacks and things of that light. Okay. Were going to be watching carefully. Thanks a lot art. Art hogan chief Market Strategist. After a tough winter spring has sprung. It has . But the spring Housing Market hasnt exactly gotten off to a running start. First bad weather, got some of the rap but now the blame is increasingly going to a tight mortgage market. So tight that it is keeping many potential buyers locked out of home ownership. Diana olick has our story. The signs of spring are finally here. Including more of these signs. But so far, word on the street is, this spring Housing Market is underwhelming. The market kind of dive identifies into the haves and havenots. You have the people who have good credit, good jobs, thats the moveup buyers. Theyre buying. But the rest of the market is not. Firsttime buyers and those with lower Credit Scores. Thats more than half of potential buyers. You see it in the mortgage numbers. Lending volume down to the lowest level in 14 years, according to a new report from black night financial services. Only about 30 of 2013 loans went to borrowers with a fico credit score below 720. And nearly half of all home sales are now in cash. Credit is not happening, its not on the table. And its really still that threat of what happens to mortgage if the mortgage goes bad. Lenders are clearly still spooked by the housing crash, which cost them billions of dollars in payments back to fannie mae, freddie mac and the fha. A lot of bankers are telling me now, i never want to serve a defaulted loan again, which means i wont originate a loan that does default, im keeping my Credit Scores above 700. Mortgage analyst paul miller has been revising his numbers down for mortgage volume every month. Now, hes at 1. 1 trillion dollars worth. Compare that to 1. 9 trillion in mortgages made in 2013. The bigger guys are just not going to do it. Thats where the scale is. Thats when you really get, you know, the marginal borrowers, below 680 fico scores, thats how you give them credit. Wells fargo recently said it would start offering loans to borrowers with lower fico scores but only through fha the governments mortgage insurer and only through wells own retail channels. Its a very small share and a far cry from the heady days of subprime lending. Im diana olick in washington. Maryland lawmakers are trying to help some of the havenots. Theyve easily passed a bill to raise the states minimum wage to 10. 10 an hour by the year 2018. Its expected to be signed into law by marylands governor who made raising pay levels a priority this year. The 10. 10 minimum matches a measure passed in connecticut last month and its the same amount president obama wants to establish as a federal minimum wage. And the president s signature legislation the Affordable Care act is getting some credit for putting more americans on to health care plans. A new survey from gallup says the percentage of americans currently without Health Insurance dipped to a sixyear low thanks in part to the law. Black and lowincome americans saw the biggest declines in the uninsured rate with drops of more than three perch points in the First Quarter of this year. Separately, the government said payments to insurers for 2015 Medicare Advantage plans would rise nearly half a percent instead of falling tlm 2 as originally thought. How safe is your bank atm . And do you think its safer than the ones you avoid at gas stations and corner shops . Well, the answer may surprise you. A major move this week regarding the software inside those bank atms is raising a lot of concerns about the security of your money. Kayla tausche shi explains. Reporter in 2001, phones were green and black, imacs were blue and consumers logging online heard youve got mail. One technology hasnt changed the software for your local atm. Inside 95 of the countrys automatic teller machines sits a computer running on Microsoft Windows xp. Starting april 8th, microsoft will stop updating the software meaning that banks who havent made the change could be susceptible to security risk. Its something youd probably never notice. The issue is when office stops supporting this particular version, what happens is, that when a security hole opens the patch wont be issued. Banks have been urged to upgrade to windows 7 or 8, but security expert adam levin says its a tedious process for the millions of atms worldwide, just 210,000 here in the u. S. The cost between 1,000 and 3500 a machine, which has to be programmed individually. Even so, banks were not caught off guard by the move. Microsoft ended mainstream support for xp five years ago. And regulators have been urging banks to switch since october. In a statement, six agencies jointly said they, quote, expect Financial Institutions and their Technology Service providers, to identify, assess and manage the potential Operational Risk brought by the change. Most big banks have shelled out to extend their individual contractors with microsoft. Jpmorgan chase bought an extra year. Bank of america, citigroup, wells fargo and pnc say they will have support throughout the transition. Its unclear how many regional banks have been able to get extensions. The irony, Third Party Atms like this one in Lower Manhattan actually run on Older Software that microsoft still supports, meaning that by tuesday, these will be seen as safer than some Traditional Bank atms. Thats a fact that doesnt sit well with consumers. I pay a fee, its a fee but safety first. I go for a bank direct. At the store. As technology advances, security, the number one priority. For nightly Business Report im Kayla Tausche in new york. Coming up a new Breast Cancer drug from pfizer shows early promise. Could it be a breakthrough for the disease . And the company. General motors dealerships are expected to start fixing those faulty ignition switches sometime this week on chevy, cobalt and other models that have been linked to at least 13 crashrelated deaths. More than 2. 3 million car owners are expected to bring their vehicles in to have the switch replaced over the next six month s. The repair should take about half an hour per car. A pair of recalls from ford motor in the bigger of the two, almost 400,000 ford escape suvs from the years 2001 through 2004 are being called back to fix frame parts that could rust and impact the steering. Now in a second unrelated recall, nearly 50,000 cars from the year 2013 and 2014 are being brought back to fix seats that werent properly welded. Hate to fly . Youre not alone but passengers actually complained less last year thats according to the National Airline quality ratings that came out today. Phil lebeau joins us now with more. You know, it was a rough winter for flying and its really surprising that care line Service Reached a new high. A high in 2013. Is that what the report really says . Well, remember, the rough winter started mostly in 2014, tyler. And yes it was a record high when it comes to airline service. People will say, well what improved last year . A couple of things did. First of all the airlines did a better job when it comes to bumping passengers. They bumped fewer people, and the other thing to keep in mind is that the airlines, as far as they were handling complaints, they got fewer complaints. 15 fewer in terms of complaints to the federal government. So you put those two together, and youre looking at a record performance in terms of the quality of ire line service. Lets face it, phil, not everything was better, right . You know, where are the airlines still falling short . When it comes to getting you where you want to be on time and get being your bags there without any problems, those are the two areas that the airlines, you know, they slipped a little bit last year. Were not talking about a huge falloff in terms of mishandled bags and the ontime percentage. In fact the ontime percentage was 78 , down just 3 compared to 2012. But you put that in there and those are a couple of areas where the airline did fall a little short. Lets name names and take tail numbers. Who did best and worst . Number one for the second year in a row, virgin america. Followed by jetblue. Number three being hawaiian. Delta and then Alaska Airlines moves in to the number five spot. And as long as youre talking about who was the best we have to show you who was ranked at the bottom of the 15 airlines in the u. S. Frontier, united, expressjet, sky west and american eagle. No surprise that you have a lot of the regional carriers at the bottom. They always bear the brunt of complaints. All right, phil, thank you very much. Phil lebeau reporting on airlines from chicago. Investors love a good dividend and they like it even better when a Company Increases and thats where we begin tonights market focus. Procter gamble upped its Quarterly Dividend by 7 today marking its 58th Consecutive Year with a higher output for shareholders. Shares of the Consumer Products giant which makes everything from pampers diapers to tide detergent rose nearly 1 closing at 80. 49. But lands end off to a rough start in its trading debut on the nasdaq today. The clothing retailer was the latest unit spun off from Sears Holdings which has owned it for the past 14 years. Lands end ipo landing with a thud. Down almost 7 to 29. 55. And not a good day for credit suisse. Switzerlands second largest lender may face a new investigation by new york state banking officials for its role in helping wealthy american clients avoid paying u. S. Taxes. The states top financial regulator requested documents from the bank to see if it lied about creating offshore tax shelters. Worried investors sold shares of credit suisse. They fell nearly 2 to 32. 07. Shares of the nations two largest credit card processors ended lower. Reuters reports a lot of big retailers are looking to lower their costs by investing in their own mobile payment systems. Also a factor, russia suspended payments by visa and mastercard because of u. S. Economic sanctions over the crisis in crimea. Shares of visa down 2 . It finished at 203. 41. Mastercard off 1 , it finished at 71. 33. A setback for connecticut based drugmaker mankind. Last week shares shot up 42 . That after an fda panel recommend approval of its inhaled diabetes drug. Now the fda extended its review time by another three months and that sent shares of mankind 8 lower today to finished at 6. 32. More consolidation in the Specialty Pharmaceuticals business. Ireland based plans to buy u. S. Drugmaker quest corps for 35. 6 billion. Best known for its treatments of autoimmune and inflammatory orders. Shares of quest core up nearly 19 at 80. 58. Malincrop which trades in the u. S. Was off 2. 5 to finish at 60. 95. Heres another merger in the generic drug industry. Indias Sun Pharmaceuticals is buying its rival also india based generic drugmakers ranbaxy in an allstock deal for just over 3 billion. Both Companies Make many of the lower priced generics sold here in the u. S. Closer to home, pfizer reported positive results from its latest trial of an experimental Breast Cancer drug by doubled the lifetime of patients on the medication. But survival rates were not significantly better. Pfizer shares ended 3 lower, that made them the biggest decliner in the dow today. Joining us now with more on this new drug is damian conover. Hes the director of Pharma Research at morningstar. Welcome good to see you. What is the name of the drug . Who is it for . And what did the trial show . The drug is palbociclib and i think its pfizers most important product in their pipeline. And its targeting a special subset of the Breast Cancer population. And right now the subset really doesnt have a lot of good Treatment Options. And what this drug showed was almost a double the benefit in progressionfree survival. Now thats an important end point that is a positive for the drug. However, expectations for this drug were much, much higher, hence thats why we saw the major pullback today with pfizer. All right. I understand, damian, that novartis and eli lilly are also working on some kind of similar Breast Cancer drug so it seems like between these three companies the race is on. What does this mean for Breast Cancer patients . How soon can they expect one of these drugs or pills to be on the market . I think it means a lot for Breast Cancer patients to have more Treatment Options. When you think about oncology, breast cansner particular, theres not a lot of great Treatment Options out there. So these next generation of products for the specific subset of breast conditionser patients is a major door opener for these folks from either pfizer, lilly or novartis, these products should really transform the medicine that these Breast Cancer patients have. Even though these results for the pfizer drug were received as somewhat disappointing, i gather that they are promising in the sense that they doubled the life expectancy, a certain latestage cancer patients. How big a drug could this be for pfizer . When we look at the opportunity for this drug we project peak sales of 2 billion a year. Now thats a little bit below the street consensus statement of about 3 billion. So we think its going to be a major blockbuster. Theres a huge range out there on the street as far as how big of a benefit it can be for pfizer but nevertheless, a major important piece of a story for pfizer. All right. So do you think pfizers going to be the one thats going to come out with this . How about these rivals that are also working on it . I think pfizers going to be first. I think pfizers going to be able to file on the phase two data and that will give them a two to threeyear head start on lilly and novartis. And being first to the Oncology Market is really important because oncologists get used to using a particular medicine and really wont change the medicine unless a new medicine is much better in efficacy or much stronger on side effects. And i dont see either of that happening with novartis or lillys products. Are the chances this drug becomes publicly sold good . Yeah, i think theyre very good. We have a 70 chance of approval for this product. In the spectrum of things, thats pretty high. All right, damian, thank you very much for being with us tonight. We appreciate your time. Director of Pharma Research at morningstar. Coming up next, the growing appeal and potential profits of digitalonly Video Networks and what it might mean for traditional media companies. Citigroup says it will pay more than 1 billion to a group of private trusts to settle claims over Residential Mortgages between 2005 and 08. Bank of america and jpmorgan have reached similar deals with investors. Two tech giants are going hollywood. Theyre taking a page right out of netflixs playbook offering original tv shows like the ones you see on hbo or other premium cable channels. The wall street journal says yahoo is working on plans to order four halfhour comedies, each consisting of ten episodes that will air on its signature website. And not to be outdone, microsoft has committed to producing six original tv shows at its xbox entertainment studios. And first up from the software giant, debuting next year, its a sigh chi series called humans about robot workers that look just like humans. Finally tonight, investors body slammed shares of World Wrestling entertainment today. Sending wwwe down almost 15 after wall street expected better subscriber numbers for its new digital channel. Morgan brennan has more on the companys big bet on the future and whether this could be a template for others to follow. Reporter a big day for wrestling, wwe releasing its first subscriber numbers for its new alldigital streaming Service Called the wwe network, the Service Allows fans to bypass cable and payperview for Online Access to original series and live events. And for 9. 99 with a six month commitment its much less than a payperview subscription. Since launching in late february nearly 670,000 wrestling fans have subscribed. A number thats already about twothirds of the way to the companys stated goal of 1 million subscribers before the end of 2014. And at 1 million subscribers the Service Becomes profitable. But what may seem like a victory for the wwe network wasnt for investors. I do think there were some investors that were expecting a slightly higher number, maybe upwards of 1 million. That was the catalyst for the selloff. Since launching the streaming service, shares of wwe have surged with the stock more than tripling over the past year. But todays numbers caused the stock to drop in what moore calls a healthy correction. Still the new wwe network is only one part of the wrestling story. Last night the companys wrestle mania 30 pulled in 10. 9 million dollars. A record for an entertainment event at new orleans superdome. And the fifth consecutive time the annual event has done so at a host venue. And the companys largest tv contract with nbc universals usa and scifi networks are up for renegotiation. That could have a positive impact on stocks between now and may. On a perviewer basis the wwe currently earns between onefifth and onetenth of what comparable what comparable sports franchises like nascar, like nhl, earn on their carrier agreements. In the meantime media experts will be keeping close watch on the Wwe Network Subscriber numbers. After all, if the streaming service succeeds in attracting the 2 million to 3 million fans that the company aspires to, this could become a model that other Companies Want to adopt. For nightly Business Report, im Morgan Brennan in los angeles. Let me just guess that neither of us have the wwe app on our phones, do we . But you were amused. I was amused, yes. Amused, yes. Not every night you see that on public television. That will do it for nightly Business Report for tonight. Im tyler mathisen. Im susie gharib. Have a great weekend. Tyler and i will be back and we hope to see you tomorrow. Welcome to Film School Shorts a showcase of the most exciting new talent from across the country. Experience the future of film, next on Film School Shorts. Film School Shorts is made possible by a grant from maurice kanbar, celebrating the vitality and power of the moving image, and by the members of kqed. [ answering machine beeps ] man on machine hey, sweetie, its daddy. I i just wanted to tell you that i love you. I

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