Good evening everyone, and welcome to the support group, we invite you to sit down have a shoplifter drink soft drink or maybe something a little stronger, what has happened to the stocks that went up last year, why have the shares that loved you so much in 2013, facebook and amazon, turned cold . I cant promise any definitive answers, a few weeks ago at least we had crimea or china or yellen to point to. But in the past few weeks including this one the worst for the nasdaq and s p, including this one, maybe it is just momentum in reverse, the stocks went up for seemingly little reason when they rose, now theyre fallen just because they can. You are forgiven if you want to avert your eyes, the dow falling, suffering its first weekly loss in four. The nasdaq, which is actually higher shortly after the opening bell fell hard down 54 today, closing below 4,000, techheavy nasdaq now down 6 and a half percent since three weeks, biggest decline, and s p seeing the biggest drop since june 2012. Well, our market is calm, and investors say you shouldnt be scared off, he advises you should buy high stocks, the chief investment strategist with raymond james. Were so happy youre on set to talk with tyler and me on this stuff. Youre in new york talking with clients, you tell me they are pretty anxious about everything that is going on. Youre so upbeat, what is the disconnect . Well, it depends on who you talk to, if you talk to the Portfolio Managers who are playing the netflix and high beta stocks. There is high angst on that. But i spoke at the tiberon conference on tuesday, and i rode back, and ron baron was in a car with me for an hour and a half trying to get back to midtown in the rain. He was like warren buffet in 74, a kid in the candy store, a lot of stocks have come down. High caliber stocks, i feel more like a high caliber weapon. There has been a move from some of the high beta stocks into lets just say some of the bigger blue chip stocks, microsoft had a high year, intel, cisco, is that what youre suggesting, some of those kind of the companies . I think some of those are okay, some of those are value trap over the long cycle. But in a low growth environment wall street will pay up for true growth. And some stocks that came down for 40 and 50 that are true stocks i think will come back in. Like what . The comeback, 30 or 40 in the Health Care Group there is a Company Called dexcom, that makes the best wireless glucose blood Monitoring System on the market. Now it is trading around 35, 36 right now, they just got approved for their infant product to monitor infants blood glucose. And lets talk about other stocks, Johnson Johnson, what you like, what is the attraction there . In a low growth environment, and the gdp will be somewhere between 3 and 4 in the next few years, wall street will pay up. They tend to cluster in technology and health care, both trading one standard below the deviation numbers. A name like Johnson Johnson has a decent dividend. You have a triple balance sheet. They have a nice portfolio. And i think at this Time Next Year you will have a 9 Free Cash Flow on j j. And a quick followup. We saw the health care stock, followup companies, byiotech being sold off. If youre looking at a biotech play, look at brist bristolmeyers, it is a lower conservative way to get into pretty good biotech you like a couple of mobile phone tower operators or builders, too . Yes, again, this is the technology thing, they have a 20 roe, whereas there is a ten or 15 return, mobile computing, in the divergence of devices, you can see it every year in your mobile connection. And if you dont have the tower it doesnt work, so the stocks depend on the mobile computing and the divergence of devices. Real quick, any mention of the stocks . I own dexcom. I think youre building into a selling climax, i think it probably happens next week. All right, thank you so much, jeff fox, chief investment strategist. And j. P. Morgan schas was the first to report First Quarter earnings today, and them came wells fargo. Profits at jp fell by a fifth, sending shares down 3 and a half percent, making it the biggest decliner in the dow. And shares rose nearly a percent on a very down day in the markets. More on what is behind the earnings results. J. P. Morgan chase, the biggest u. S. Bank by as sets first entered the gate with earnings, and the model showing some cracks, the bank had two distinct problems, a sharp slowdown in under writing and trading, those issues adding insult to injury in an economy with weak loan growth and less corporate activity than expected. Eventually loans will grow and yields will rise, strengthening the financials foundation. But they say they counted that income too soon. We were afraid a lot of the banks were running up on expectations of a great economy and higher rates, now youre seeing rates drop. Wells fargo, one of j. P. Morgans fierces rivals, the San Francisco based lender relies less on trading than peers. They have double digit earnings growth. A tough feat, wells fargo aims to grow its Mortgage Business by lending credit and higher yield on borrowers, the market has fewer options for home buyers without the support or credit. A lot are being tougher than required by fha, i dont know when it is going to go away. It is not getting worse, just kind of sitting there and probably holding back a little. J. P. Morgans risk aversion has affected other lines of business, as well. The Clearing House failed to process the housing in kazakhstan, and guarding all of that just in the First Quarter. The banks clearly sacrificing growth for its longterm reputation. For nightly business report, in new york. Today we discuss the Bank Earnings and what we can expect when other big banks report next week, senior banking analyst at hamilton. Good to have you with us, lets start with j. P. Morgan and wells fargo, the two banks out today, what did you make of the results, are they buy, sell holds in your book . Thank you, i do have ratings on wells fargo and j. P. Morgan. What we saw today was a little bit of money flow out of j. P. Morgan and into wells fargo, simply because wells fargo reported better than consensus estimates and j. P. Morgan fell a little bit short. Theyre both very good banks and are certainly making a lot of money. Theyre both in great capital positions. I think to some extent the First Quarter is viewed as a bit of a symbol of what the run rate of earnings will be for the rest of the year. I think you will see on monday that some of the annual estimates for j. P. Morgan will come down as people think more about a run rate for the rest of the year in the 130 to 140 range, whereas at wells fargo, wells reported a dollar five up from a dollar in the First Quarter. And i think that estimates will go up for the remainder of the year at wells. Can i jump ahead because we have city reporting and also bank of america. Both of these banks have legal and other issues for Different Reasons and youre recommending that both of these banks as well, and tell us why. And what are you expecting in their quarterly number . My estimate for city is a dollar 15, that excludes the most recent mortgage settlement. My estimate for bank of america is 25 cents, that is a little bit below the consensus, im being a little more conservative on bank of america again because of some of the trading issues that we saw at j. P. Morgan. Again, i think over time the big four banks, city, bank of america, wells fargo and j. P. Morgan are slowly but surely going to take market share from Smaller Banks as they have national scale, a diversity of businesses and a diversity of risk. I think city at the moment is probably the most attractive stock in the group, simply because it is trading at about a 20 discount to tangible book value. And i think city will over the course of the year be able to resolve the capital plan that the feds had a few weeks ago and will be able to increase both its dividend and purchase activity. So fundamentally, you dont think citys problems will be n insurmountable. Look, i was at a conference this week with a number of players in a variety of financial businesses and the one thing that they all said was that their their relationships with their regulators are very tense, almost hostile. So i think it is very clear that post the financial crisis, the intensity of regulation, both in a Big Development in the ignition switch crisis at General Motors. Internal documents revealed an email from the ceo in 2011 that detailed the steering problems in cars that can now be recalled. Phil lebeau joining us now, how damaging, phil, are the documents especially for Ceo Mary Barra . On the surface it doesnt seem to be as damaging. But the email indicates there was discussion about the steering issues that were at least emailed to mary barra, now whether she saw them, responded, didnt respond, there were no emails from her. And here is what the email says, there was a response from one engineer outlining the document in the the new york times. In the email, he writes, mary, during the initial cobalt case, and that may be separate from the current one, he writes, during the cobalt case, this situation has been evolving, well meet and understand the latest data. Now this afternoon, General Motors has come out with a response, tweeting a response about what mary barra may have known, General Motors says the email dated on october 2011, references a saturn ion steering issue which is completely separate from the ignitionrelated recall. So that is General Motors response to this. So tyler look, you have to see a lot more documents in terms of what mary may have known. But she has said, and stands by the fact she didnt know about this before january of this year. All right, phil, thank you very much, have a great weekend. And more on General Motors, they are urging the Justice Department to intervene, calling on the agency to require gm to establish a victims fund and oppose the automaker to deny any responsibility for the damages. Shares dropping, tenmonth low now, closing now, the ip price of gm of 33 a share. And here is good news for the bankrupt city of detroit. A federal judge approved the latest attempt to pry itself free from longterm financial contracts known as Interest Rate swaps. They cost the city tens of millions to ubs and bank of America Merrill lynch unit. The two banks will now be paid 85 million to terminate the deal which was used to boost Municipal Pension plans. President obama wasted no time to replace the health and Human Services secretary Kathleen Sebelius who took a lot of heat for the botched rollout of the Affordable Care act. Sylvia burrell will be the next secretary of hhs, he touted her as somebody who can handle even the toughest challenges. Just four days before your taxes are due, but the commander and chief and first lady reported a total income of 481,000. They paid 98,000 in total for taxes for an effective tax rate of just over 20 , the obamas donated 59,000 to charity and paid 29,000 to illinois where they still own a home. And earlier this week, we talked about big bug chaos, exposing users to hackers, now the infection has gotten worse jumping from software to gadgets we use to the internet. Josh lipton has more on what is at risk and what it means. It started with yahoo . Okay, cupid, and tumbler, now it is threatening tech bellweathers and possibly even our banks. It is called heartbleed bug, an encryption flaw in the website, that means user cards, pa pass words and credit cards are at risk. They can compromise the keys which basically give them unlimited access to sensitive communication between banks and other companies and their clients. So i think it is extremely dangerous, vulnerability out there. Cisco and juniper say their products now are exposed to heartbleed bug. This is a real concern as they track data across the internet. But the danger doesnt stop in silicon valley, banks are also potentially exposed to the threat. The question for consumer is how safe it is to continue Online Banking right now. Smaller banks that dont spend time and money on security are a real worry. They may have one i. T. Person who does all their i. T. And security. They rely on thirdparty processers to provide secure. And that has not worked very well. Analysts say consumers who use small banks for Online Banking should call the bank and find out if it is vulnerable to heartbleed bug and if so how they will address the threat. Once they do, consumers should change their pass words, heartbleed bug is a security issue but each manager needs to update the threat, alert consumers and work on it. Whether the companies can work fast enough is the question. Josh lipton, silicon valley. Tonights market focus, the mediterraneanthemed restaurant offered 5. 8 million of its shares at 15 each. That was at the upward numbers. The stocks surge at 65 to 24. 72. Chinas largest ecommerce company, ali baba buying navi, shares popped up almost 3 to 20. 612. Ali baba is not a Public Company in the u. S. Yet but is expected to debut later this year. And the times report that the Justice Department and the fbi are investigating the multilevel marketing company. Herbalife has been accused of operating a pyramid scheme. The operator denies allegations that it is a pyramid scheme, shares fell to 51. 48. And sony warning customers to stop using some of its vio laptops saying it is possible that the battery pack could overheat and catch fire. The Japanese Electronics maker says it is in the process of creating a program to repair or replace the products. Despite that, shares of sony were up more than a percent today in a down day to 801839. And there is a push by the u. S. Government to get more people interested in farming and ranching, especially young people. Jane wells explains. Reporter for a time, 33yearold Daniel Fenton left the farm. I graduated from stanford in 2002 and most of my friends were going into high tech and things like that. So i spent a couple of years doing that. Reporter but he has returned to the 18,000 acres his family has had for five generations in california. His father and grandfather were afraid he might not. Yeah, sure. It is always a concern. You time runs out and you dont know what is going to happen if somebody doesnt step in as i did with my dad. And he has now done with me. And he will have the same worry in 30 or 40 years, as well. Reporter it is a worry not just here. The average age of the American Farmer is 58 and rising. If you take a look at the numbers of recent ag census, there are tens of thousands under the age of 35. They are trying to attract new blood with training. But it is a hard road to hoe if you dont have land in the family. Ryan kerby was a Petroleum Engineer in houston but he, too, has come home to join the family farm. I love what i would do, i would never do anything else unless i absolutely had to. Reporter in atlanta, 35yearold jake carter uses agriculture to teach a new generation about farming. Even what were doing here, teaching small children, most of the time theyre prek through second grade about farming, you can just see the light come on in their heads, that may be something they want to do one day. Farmers may be disappearing but farmings are not. This land here could be managed by outsiders who dont live in the community. This could be the farm of the future unless a new generation can figure out how to buy land and can afford to do it. Why do it . You know, the love of the land, it is the right thing to do. It is a wonderful thing to do. For nightly business report, california. And for what is being done the attract the next generation of farmers go to our website at nbr. Com. And still ahead, a look at the high tech lab that is creating the next generation of golf balls. Can the Company Really break through in this billion dollar business. And finally tonight, it is a huge weekend for golf fans, that is because the 78th annual masters Golf Tournament is under way in augusta, georgia, and with millions tuning in to watch their pros hit the links, we took a look. Morgan brennan has more on what makes a golf ball. Reporter they call it the oven west. Nikes standing arm dedicated solely to golf balls, here, the engineers work on the golf balls used by pros like tiger woods and rory mcilroy. New designs are shot from golf ball canons, even rolled around for two days to see how they weather the elements. This is the place where 40 engineers get together and talk about the next Great Innovation to make the offers better. So they hatch the idea and test the performance of these ideas and ultimately they bring products like the new resin golf ball to light. Reporter this new golf ball has a resin core, weighing less than the traditional rubber. This adds more energy to impact, nike has high hopes for the golf balls and not just for sales. But while nike has dominated the apparel and foot wear, the golf balls have not been easy, they are a 1. 2 billion business. The space is crowded. More than 1300 designs were tested in 2013. From 73 different companies. In fact, each year enough golf balls are produced to circumstancircle the entire earth. You want to be seen not just as the nike brand, we want to be seen as a golf equipment company. And it is very difficult, i think in this industry to be seen as a golf equipment manufacturer, per se, unless you have got the full line. Competitors have been around for decades, and golfers tend to be loyal. Not to bridmention bridgestone callaway. Nike golf means more to the larger business. In 2013, 791 million, tonights business overall, for them it is not you know, they have a 27 billion business. So it is a Good Business but doesnt move the needle very much. Still, the division is growing. Albeit slowly, nike golf believes the key to unlocking more market share ultimately lies in innovation, and that comes from the oven. For nightly business report, im morgan brennan. Beaverton. Thank you for joining us, im susie gharib. And im tyler mathisen, thank you for joining us, well see you on monday, have a great weekend. Kathleen sebelius, womens pay equity. 2016 politics and the civil rights anniversary. All tonight on washington week. This is the most meaningful work ive ever been a part of. In fact, its been the cause of my life. Gwen obamacares chief architect resigns with 7 million signups under her belt, and a trail of controversy behind her. Whats next for the president s signature domestic achievement . 2016 heats up with all eyes on the clinton and the bush dynasties. We had a bush, then we had a clinton, then we had a bush, then were going to have a clinton . The hard questions are not do you want to be president , can you win . The hard questions are why. Gwen then, two discussions on eq