Hard. The Dow Jones Industrial average and the nasdaq closed in correction territory, meaning the indexes are now more than 10 off their most recent highs. The reason once again was china. That country suspended trading after just 30 minutes. Its benchmark index falling 7 . More on that in just a moment. But first the closing numbers. The blue chip dow index plummeting 392 points to 16,514. In the last four days the dow has shed 910 points. The nasdaq falling 3 , off 146 points. And the s p 500 lost 47. And as for oil, which continues its slide, it hit a 12year low during todays trading session to close around 33 a barrel. Bob pisani has more on the selloff from the new york stock exchange. Reporter after another down open we pared some losses almost immediately after that as the chinese authorities suspend the Circuit Breakers they had implemented just four days before. Then oil rallied and we actually had a modest rally going in the middle of the day. Well, that all faded when a reuters report came out suggesting that chinese officials were being pressured to do a quick devaluation of the chinese currency, perhaps as much as 10 to 15 , to help out the economy. And the markets moved south again to end near the lows for the day even though there was no confirmation of that story. Except for defensive names Like Health Care and utilities, most of the market was down 2 . But there was particular weakness in financials with big names like Goldman Sachs and Morgan Stanley hitting 52week lows. Now, this suggests the market believes that two or three fed rate hikes are more likely than the four or so that fed officials seemed to be predicting. Now, thats very important because tomorrow our attention will turn to the u. S. Economy. Its about time we did that. Were going to get the december jobs report. Now, right now the market seems to be pricing in a roughly 40 chance of a rate hike in march. Now, a number well above the consensus of 210,000 jobs created might very well be met with a negative reaction. In other words, we made it back to the idea that good news is bad news again. As for what will happen in china, chinese etfs that trade here suggest that Chinese Markets could open down roughly 6 tonight. For nightly Business Report im bob pisani at the new york stock exchange. Well, you might think low fuel prices would help transportation stocks. They havent really. The dow transports are now in bear market territory, down 3 today and 24 from their highs last february. As Morgan Brennan explains, its a group that many wall street watchers are paying very close attention to. Reporter its a new year but not a new trajectory for transportation stocks. The dow jones transportation average has tanked more than 6 so far this week. Firmly stuck in bear market territory and trading at its lowest level since november of 2013. Commodity prices that seem to be remaining lower for longer and a dollar that remains strong against other major currencies continue to take a toll on the sector. Analysts who track Transportation Companies say thats hitting those that service the manufacturing and Mining Industries particularly hard. When i talk to my companies, when i talk to the customers in my companies, especially in the industrial size, the word is were in an industrial recession right now. I mean, you can see it by all the rail car load statistics as well. Reporter a key measure showed manufacturing contracting for the second straight month, confirming that an industrial recession is indeed under way. Its been especially tough on railroads, which saw total volumes decline 2 1 2 in 2015. The biggest drop since 2009. That continues to drag down share prices of union pacific, csx, and kansas city southern, all of which are trading at multiyear lows. But other pockets of weakness have emerged as well. One estimate says container traffic at global ports last year grew at the slowest pace in six years. And the dry index which measures rates to transport commodities via large ships has plunged to a new record low amid slowing Economic Growth in china. The one relative bright spot, Transportation Companies hauling goods destined for consumers. But even that could be starting to wane. The only area of strength that we really saw last year on the transportation side was really in automotive and anything to do with sort of online retail. So i have one of my Trucking Companies covenant transportation they picked up a big new etailing customer in the Fourth Quarter and i think theyre going to have a Strong Quarter but i think theyre going to be the outlie wrer in the transportation group. Trucking has softened in recent months. The American Trucking associations reported that truck tonnage averaged year over year gains of 1 for the three months ending in november. That modest increase marks a slowdown in growth for the group. And during the key peak shipping season. Economists and analysts are keeping a close eye on this sector since truck tonnage served as a leading key indicator of u. S. Economic growth. For nightly Business Report im Morgan Brennan. Lets turn now to our two guests who have opposing views about this market. Chris wolf is maintaining his bullish position in the market. Hes head of Merrill Lynch wealth managements chief investment offices. And jack adlin is our bear tonight. Hes chief investment strategist at bemo private bank. Good to see you guys. Welcome. Thank you. Contribution weve had the worst start to the year really ever. We had a lot of chaos in china. We had very heavy selling in the u. S. Market. Several days running. So make the bullish case here. Well, i think were in an information vacuum. We dont have a lot of news out. And when countries and policy makers surprise like china did four times in the last few days you get markets reacting in a negative way. I think the bull case if youre trying to be more constructive, which we are, although i would say with modest returns in 2016, rests on two big pillars. The first is margin durability. Companies have become very good at using technology to replace people. Its been preserving their profit margins. And the second is where we are hiring weve been seeing some wage growth and ultimately wage inflati inflation. Little bits of it. But thats helped the consumer hang in there, add the low oil prices, and i think youre in a place where the u. S. Consumer still drives the bus through 2016. You know, jack, margins may be holding up but profits have been on a bit of a slide, and that is ultimately where a stock market derives its strength from. Right . Thats it, tyler. I mean, i look at china and i tend to agree, its more its more closely aligned with las vegas and macau than it is to wall street, quite frankly. But i do think its probably a catalyst. The fact is the markets expensive. If you look at equities relative to revenues, relative to earnings, i see even after the down draft here weve got an s p 500 trading roughly 15 above its median. So i think that we do need to see some profit growth. We do need to see some Revenue Growth so that fundamentals can ultimately catch up to where Investor Expectations are situated. So chris, if indeed youre a longerterm investor, a retail longerterm investor, do you use this volatility and the down draft that weve seen these first few trading days of the year to add to positions or is it too soon given what were seeing in china . You know, frankly its a little too soon. Not necessarily because of china although i think the china brush paints a lot of bad things. But i think jack made an interesting point. Valuations are fair. Theyre not really supported. Maybe theyre stretched in some ways. I think without a lot of guidance from corporate here were likely to have a pretty choppy first part of the year. And i think advisers, weve been guiding them to being more selective, more opportunistic around areas of the market that have the durability, the bigger cap companies, the cash flows, the dividends. Its really Health Care Technology and the consumer space where we want to be more selective. So blind rebalancing just by the stock market and go home, you want to be more thoughtful and selective when we talk about rebalancing in this market. You know, jack, you mentioned a moment ago that we need rising profits to justify or make investors comfortable with the prices theyre paying for equities. I should point out that i think Something Like the average stock in the s p 500 right now is in a bear market, off 20 from the highs. But do you see the u. S. Economy Strong Enough to generate the growth that will flow back to Companies Bottom lines, or is that just not likely in your view early this year . No, im actually pretty optimistic on the u. S. Economy. But i would kind of equate it more to a hiking boot than a running shoe. I think the fact is that a lot of investors, policy makers, even fed governors are looking back at the early 2000s and saying thats our benchmark, thats where we need to go. And the problem is that was a time when it was fueled by debt accumulation. Were not there anymore. Households arent taking on debt. In fact, companies arent really spending much in their infrastructure. I think we have to adjust to a lower trajectory. But i do think that we are making slow and steady progress. Gentlemen, good conversation. Thank you so much. Merrill lynchs chief Management Investment office. Jack adlin with bemo private bank. Call it the china syndrome. The country at the epicenter of the global selloff. Eunice yoon reports from hong kong tonight on the plunge in that countrys stock market and the decision to suspend its new stock market rules. Reporter chinas stock market had its shortest trading day in its 25year history, trading lasted less than 30 minutes before Circuit Breakers were triggered for a second time this week, cutting the day short. All day today chinese investors have been calling for an end to the Circuit Breakers, and late in the evening they got their answer. The government announced it would suspend the Circuit Breakers friday. The breakers, which were only installed this year, added to the panic despite being designed to calm investors down. An online poll showed that more than 86 of voters thought that the mechanism was not reasonable. The authorities also tried to limit the damage earlier in the day by unveiling new rules, governing large shareholders who are hoping to be able to unwind stocks after a sixmonth ban, which expires on friday. Regulators said that they would restrict the size of the shares sold by big shareholders and require that the stocks be sold over time. The Securities Regulator holds a Weekly Briefing after the market closes on friday so authorities could provide more clarity on their decisions. For nightly Business Report im eunice yoon in hong kong. David riedel joins us now with his perspective on why it seems the entire world is suddenly watching chinese stocks and their every move. Hes president and founder of Riedel Research group. David, welcome. Good as always to see you. I understand why we in the media are paying as much attention to chinese stocks as we feel we must. But i wonder whether were all paying too much attention to it given the nature of the market and the fact that it seems curiously untied to the fundamentals of the chinese economy and driven by domestic speculators. Youre exactly right. You hit the nail on the head. Less than 10 of chinese households actually own stocks. The ones that do are extremely speculative and very tradingoriented. The best year that weve seen in the chinese stock market was 2014, when the market was up 60 . And if you and your viewers will remember, that was a time when people were concerned about the slowdown in the chinese economy. It is entirely divorced from fundamentals. We shouldnt be as worried about the chinese stock market. If people want to talk about concerns over the chinese economy, im all ears. But the chinese stock market really shouldnt be dominating our conversation. We do have to deal with the fallout from the chinese stock market even though as you say its devoid of fundamentals or separated from fundamentals. But how do u. S. Investors ride that kind of bucking horse given what we saw in todays trading session . Given the 24hour news cycle, the fact that people trade around the clock, youre going to wake up in the morning to news about china. Its inevitable. But i think people need to have the conviction that there are stocks in their portfolio that have good fundamentals, good corporate governance, and are good at getting earnings to the bottom line. Its basic investing. You have to tune out the noise of shanghai being up or down so much in just one day. You know, when you mix capitalism with communists who are at the center of the party in beijing and you put in things like Circuit Breakers that shut the market, it rarely, as sue was saying off air a moment ago, rarely turns out well. Do you think the fact that they have done away with those Circuit Breakers and the market will now be allowed to hit its natural price is actually a good thing . It may not be a comfortable thing, but is it ultimately a good thing . I think it is a good thing. I think that 5 Circuit Breaker and then the 7 shutdown breaker were really like waving a red flag in front of a bull. People were jockeying to be the first one to be selling, to be first in line to sell, and then after the 15minute break after the 5 drop they wanted to be first in the next line as well. So i think this will allow Retail Investors to sell what they want to sell. It will allow stateconnected organizations to buy shares that they want to buy. I think tomorrow may well be the day that the market finds its feet finds its footing and provides either a floor, a bottom, or an indication of where were headed. We will know by the time we wake up tomorrow. David riedel, thank you very much. David is with Riedel Research group. Thank you. And a bit more now on china. Richmond Federal Reserve president Jeffrey Lacker says the fed is watching whats happening in that country very closely. He added, however, that it remains unclear what impact the drop in the stock market and in the yuan will have on the u. S. Economy. And in a separate speech chicago fed president Charles Evans echoed those comments, saying the central bank is monitoring global events. Still ahead, the beaten down sector that was a bright spot in todays otherwise bleak market. But first a look at the 30 stocks in the dow. Walmart was the only one that closed higher on the session. The number of americans filing firsttime Unemployment Benefits fell last week. Initial jobless claims dropped by 10,000 to a seasonally adjusted 277,000. That remains near historic lows. In a separate report global Outplacement Firm challenger, Gray Christmas said planned job cuts last month fell to a 15year low. Positive news ahead of tomorrows Monthly Employment report. Bed bath beyond lowering its Earnings Guidance. And that is where we begin tonights market focus. The home goods retailer missed analysts revenue expectations and also saw its comparable sales fall by. 4 . Shares of the company were volatile in afterhours trading. During the regular session the stock fell about 1 to 46. 51. Another retailer, the Container Store, posted an unexpected loss last quarter. It also saw its Comparable Store sales growth miss expectations and cut its earnings projections for the current fiscal year. Shares of the Container Store tumbled initially in afterhours trading. In the regular session the stock fell roughly 5 to 7. 18. Walgreen boosts alliance raising its 2016 guidance. It beat expectations. The drugstore giant is also in the middle of a takeover of rite aid which if approved by regulators would combine two of the three largest drugstore chains in the country. Shares of the company gained nearly 2 to 81. 17. K. B. Home reported worse than expected fiscal Fourth Quarter profit and revenue numbers on softer than expected deliveries. The home builder blaming bad weather across parts of the country and labor shortages for that weak report. K. B. Home shares dropped nearly 15 in todays session to 10. 05. Cheers, everybody. Constellation brands saw its profits jum 272 last quarter as beer shipments grew. It said it will invest 1. 5 billion in a second mexican brewery. Shares of the company up 4. 5 today. 146. 61 on a day like this. What are you going to do . Thats what youre going to do. Youre going to reach for a little modelo. Ford making some changes to how its Pension Plans are accounted for. The company says that will boost reported profits and make its results more apparent. Shares of the automaker dropped 3 to 12. 70. Time warner cable warning customers that 320,000 email addresses and passwords may have been stolen. The company was notified of the possible issue by the fbi, although it believes the data was gathered through thirdparty can vendors and not by a direct data breach. Shares of the Cable Provider fell fractionally today to 181. 32. And boeing had a record year for aircraft shipments in 2015. The plane maker delivered 762 aircraft to its customers, exceeding its target. Even though deliveries were strong, shares fell along with the Broader Market today. They were down more than 4 at 133. 01. Amid the market rout there was a bright spot, and it came from a sector thats been bruised and beaten. Retail. Courtney reagan explains why some companies in that sector bucked todays broader trend. Reporter its a mixed bag for investors as wall street gets the first indications from retailers about how the Holiday Season went. Many retail watchers were prepared for rough results from macys. So the comparable sales drop of nearly 5 wasnt too surprising. Ceo Terry Lundgren set low expectations going into the Holiday Quarter after releasing Third Quarter results. Still, macys is lowering its Earnings Guidance for the Fourth Quarter and full year for the second time. But macys is making moves to improve operations and save money, including cutting more than 2,000 jobs. But many analysts are still bullish on macys, focusing instead on the 4 dividend yield, strong Free Cash Flow, already steep share declines since august, joint Venture Real Estate exploration, and strong online performance. It was a tough holiday for finish line. Disappointing sales leading the retailer to lower its Earnings Guidance. The athleticwear retailer will close a quarter of its stores over the next four years. And president sam sadow will take over as ceo at the end of february. The unseasonably warm weather of the country pushed expectations lower for many retailers as the Holiday Season wore on. But for some it wasnt as bad as feared. Jcpenneys holiday sales improved nearly 4 over last year, and the Department Store also expects Free Cash Flow to be positive for its 2015 fiscal year. Childrens place says quarter to date comparable sales are up more than 7 . As a result it too is increasing Fourth Quarter arnings guidance. Signet jewelers was called out as a holiday winner by many analysts early in the season. The owner of jared, kay, and zales reports its holiday sales improved nearly 5 over last year and it increased the lower end of its previous Fourth Quarter guidance range. For nightly Business Report im courtney reagan. Coming up, common mistakes individual investors make in a volatile market like this. And how you can avoid them. But first a look at the ten sectors that make up the s p 500. All of them in the red today. And heres a look at what to watch tomorrow. The december employment report is due out before the bell. Consensus is for a gain of 210,000 jobs created last month. Global investors will want to see how chinas stock market performs overnight now that those Circuit Breakers have been suspended. And the Energy Markets will be paying close attention to the Weekly Oil Rig count. And thats what to watch for on friday. With the dow falling nearly 400 points today and more than 900 points this week alone, some may be wondering whether its time to make changes to their portfolio. So we decided to find out what youre doing with your money. I believe in the u. S. Economy, and i think over time its going to come back, and im not selling. So im okay. Im pretty young, right . So you just hold on to it and you wait for it to come back up. Pay attention to what money you have and dont panic. Ive learned from like eight, nine years ago not to be so risky with some of the funds i had. So now its a little bit more conservative. So ill be okay. Just hang in there and ride it down and ride it back up again. Our next guest says hes been seeing and hearing from two types of investors in this volatile market today. He is jeff goldberg, Branch Manager at td ameritrades Retail Office in new york city. Welcome. Nice to have you here, jeff. Thank you. So you said you heard from two types of investors. What types of investors have you been hearing from . Well, there are investors who have overly concentrated positions. And of course we talk to these people and reminds them they should go back to their original strategy, they should go back to their original goals and why they took those positions, and maybe its a Good Opportunity to reevaluate and see if theyre still take the same risk, same level of risk that they set out to take in the beginning. You know, my wife will attest to this. Im always a look on the bright side kind of guy. Shes laughing right now. Shes watching this at home. But the way i look at market selloffs like this, jeff, is that the one thing they do that is a positive is they force you to come face to face and they put a real sharp point on what your risk tolerance is. And if youre looking at your portfolio and theyre seeing it go down and this is too much pain four, isnt that a learning opportunity . Well, absolutely. And in fact, we believe that your portfolio should be a reflection of the amount of risk you want to take, not necessarily the amount of money you want to make. On that note you say there are three mistakes that investors commonly make and you say one, dont get emotional. Dont abandon your basically longterm Investment Strategy and goals, and then dont overreach. Correct . Absolutely. The one big advantage that institutional you knonoknow professional investors have over the average selfdirected investor is theyre not emotionally attached to their investment. And they can look at it in a dispassionate way and evaluate whats working, whats not, where they should be positioned. In terms of your overall goals, most people start out investing for a reason. Its either retirement. Maybe its college planning. There are a lot of Different Reasons people invest. And those reasons dictate how long an investment horizon theyre looking at and what kind of risks theyre willing to take to get there. The other mistake is people overreach. So you see a market down like its been in the last few days and what a lot of people will do is take more risk in the hopes of making that back. And thats usually not a good thing. So usually you want to make sure that your risk tolerance is in line with what youre comfortable. You need to sleep at night. If youre putting your head down on the pillow and staring at the ceiling and thinking about what a market decline over a few days is going to do to your life, then youve probably overextended your risk tolerance. Let me ask you one quick question. You said one of the advantages institutions have over individuals is they arent emotionally attached. On the other hand, ive often thought, a quick answer, please, that individuals have the advantage that they do not have a board of directors or anybody to report to. Unless its your spouse. Well, thats an important board of directors. Thats usually the chairman. Yeah. Thats true. Yep. But being able to make decisions without an emotional attachment im sorry, people buy a stock and you know, they dont want to be wrong. Absolutely. On that note, jeff, thank you so much for the advice. We appreciate it. Jeff goldberg with td ameritrade. And lets give you another look at the rout on wall street because we know you havent seen it enough. The Dow Jones Industrial average plummeting 392 points, 16,514 the close. Last four days the dow has shed 910. Nasdaq off 3 . 146 points. S p 500 lost 47. And that is nightly Business Report for tonight. Im sue herera. Thanks for joining us. Thanks from me as well. Have a great evening. Well see you back here the following kqed production was produced in high definition. Calories, calories, calories wow, it rocked my world it just kind of reminded me of boot camp. I dont know what you had, but this is great it almost felt like Country Club Food to me. Dont touch. Its hot i gotta tell you, you people