We have all that and more tonight on nightly Business Report for this tuesday, april 1st. And good evening, everyone. It was a record day on wall street for the s p 500 and the dow transports, by the way. But we begin tonight with General Motors. It is under intense scrutiny by lawmakers for safety concerns about its cars. Today its new ceo got slammed by members of the house over how the automaker midhandled the crisis. Faulty ignition switches in General Motors vehicles have been linked to 31 accidents and at least a dozen deaths over the past 13 years, prompting a massive recall. Lawmakers want to know what took gm so long, and did gm put money ahead of lives. For her part, barra attempted to reassure those lawmakers along with investors and drivers that gm cars are safe and that she and the company are terribly sorry. Eamon javers has more on todays heated testimony barras performance and whats next for gm. Reporter gm Ceo Mary Barra arrived on capitol hill this afternoon to apologize for gms failures leading up to the automakers recall of 2. 6 million vehicles for dangerously defective ignition switches. Nothing but the truth. Reporter the audience included grieving family members of People Killed in switchrelated accidents. Todays gm will do the right thing. That begins with my sincere apologies to everyone who has been affected by this recall, especially the families and friends who lost their lives or were injured. I am deeply sorry. Reporter but in the face of tough questions about what gm knew and when about the problem, barra repeatedly said she did not have the information. Citing gms ongoing internal investigation. Gm was notified by delfi of this, correct . Yes or no. I am not aware of this. You dont know about that . Im getting this information from the chronology that gm provided to ntsa. I was not a part of that organization at the time. Thats why im doing the investigation to understand that. When was that that gm informed nhtsa . I dont know that. Reporter it was a tough outing for the relatively new ceo of the nations largest k carmaker. Did you review the documents gm submitted to the committee . No, i did not. There was over 200,000. Reporter the day began on an emotional note as the families of the dead gathered with lawmakers. Our daughters, sons, sisters, brothers, mothers, fathers, wives and husbands are gone because they were a cost of doing business gms style. Reporter at the hearing, barra announced that 9 11 Victim Compensation czar ken fineberg is going to take on a similar role here for gm. Shes not done yet. Tomorrow shes going to face a Senate Committee as well. A eamon javers in washington. Brian, how did mary barra do in your view . Did she answer the question that is you wanted to hear . I think ms. Barra did as well as can be expected. Shes new to the job, she wasnt ceo when this all took place. I found her to be humble, apologetic. She did not speculate as to what the real answers can be. I think theyre in search mode as to what the answers really are. This is very early in the process. Its not Surprising Congress wanted to see her so quickly. But i think to her credit she did not go so far as to make any statements that down the road could come back to haunt her. In some cases she didnt answer the congressmen and womens questions, did she, brian . No, i dont think she did. And i think that could be expected. As she said, there was a 200,000page data dump that she and her team are working through right now i think that if Congress People could have read it why couldnt she or her people have done that and briefed her on it . I think its very easy when you have a 200,000page data dump to be able to snipe bits and pieces and have a bit of a gotcha session. I think ms. Barra could have done a little bit better job with some of the more what i would say headline issues that i think she should have been better briefed on. But overall, this is an ongoing investigation. And i think the worst thing that she could have done would be to make a declarative statement that down the road could be proven to have been misleading. Brian, what about consumer reaction . How do you think drivers are going to feel about her testimony . Are they going to feel safe in a gm car . Do they trust the company . I think the proof of this will bear out over some time. What was interesting today, gm released its march auto sales with the rhett of test of the a. Passenger car sales are up 10 for the month of march. This has been front page headline leading news for the past couple of weeks. It would have been interesting to see whether consumers decided not to purchase towards the back half of the month. That doesnt appear to be the case. As this plays out over the course of the next few months id expect there to be some sort of backlash to consumers. Thus far it hasnt really taken place. For investors in General Motors, is this a problem . I think it is in the nearterm. Clearly there are going to be a couple of moments over the course of the next couple months that can be expected to be fairly ugly. As this investigation goes forward. Obviously with consumers passing away in auto crashes, its a terrible event. And i think that theres more to be found about this. And i think that at least in the nearterm this is an overhang for investors. As you look out one year, two years down the road, i think it really gets back to whether gm can make cars that are of the quality that consumers expect. They have a good product lineup as far as what they rolled out over the course of the last two years. The question is can they convince consumers that what theyre making is on par with their competition . And thats going to be a big question. Well see how that all plays out. Thank you so much, brian, for coming on the program. Brian sponheimer with cabeli and company. Auto sales for march exceeded estimates even for General Motors, overall sales up nearly 6 last month, on pace now to sell more than 16 Million Units this year. Shares of General Motors cars rose 4 over all. Sales at ford up 3 . Best march in eight years for that company. The big winner was chrysler. Sales there up 13 , mainly on the strength of its jeep division. Shares of ford rose nearly 5 on the day. General motors shares were flat. Those strong car sales boosted stocks on this first trading day of the Second Quarter along with solid manufacturing and constructions spending reports, and it even pushed the s p 500 to a new record high. The dow rose almost 75 points, the nasdaq surged about 70 points on a big jump in tech stocks. And the s p added 13 points, closing as we told you at 1885, a record. If the market rallies will earnings season be the next major hurdle for stocks . First quarter profit warnings are already near record levels, our friend at faxet senior earnist analyst john butters is back with us to put it into context. John welcome back. Good to see you. Earnings season, does it have the potential to stall or derail the market . Well, tyler, as you said were expecting a much weaker earnings season than we did when we started the quarter. The expected growth is now a decline of. 4 down from an expectation of 4. 4 when we stad the quarter. At this point in time 93 companies in the s p 500 have given negative guidance. Thats the second highest number weve seen since weve been tracking the data in 2006. Two sectors in particular really stand out. The Consumer Discretionary and industrial sectors. Both seeing record numbers of Companies Giving guidance. Two sectors likely to be impacted by the unusually cold weather we had this past winter. These analysts track the numbers not only for q 1 but theyre also looking ahead to the Second Quarter, Third Quarter, fourth quarter. What are the projections youre seeing so far . To tylers point, how might this play out in the markets . First quarter certainly is expected to be the dip in the earnings for the next couple of quarters. If we look ahead for Second Quarter analysts are looking for growth of 8 . And then again in the second half 2014 expected to hit almost 11 . So one of the key things to watch this earnings season is the guidance what sort of comments give. Because if we do see analysts or Companies Start to lower their expectations, we may see analysts take those numbers down the on the flip side, if we see companies saying the First Quarter was a one quarter aberration due to the weather, we expect things to be solid for the rest of the year. The market will take that optimistically if we dont see those numbers come down in the second half of year. Is the weather the principal reason earnings are going to be plat in First Quarter of the year or are some Companies Using it as a figure leaf to cover up things that go deeper than that . Certainly in the past we have heart Companies Use weather as an excuse. Were seeing some of the boy who cried wolf syndrome potentially. This time around i think it is a legitimate excuse of the 18 companies that have reported so far. Eight of them have cited the negative impact of weather. Most of those being in consumer space such as retailers, such as costco or companies in the industrial space that had difficulty transporting goods or transportation in general such as fedex and cintas. I think this quarter the weather is a legitimate issue in terms of having a negative impact on revenue and earnings. So the spotlight will be on Jp Morgan Chase next week who reports its earning. Big dow stock reporting earnings next friday. What are you expecting from them . And looking ahead, how are the financials doing . Look at Jp Morgan Chase, theyre expecting a 10 decline in eps this quarter. This would be the Third Straight quarter theyve had a yearoveryear decline in eps if thats the case. The Financial Sector is really interesting sector. This quarter its really a middle of the pack quarter. Its expecting a decline of 1. 5 . Last quarter it was the leader in growth at about 24. 5 due to strong results of insurance. If we look ahead in the second half of the year, this is one of the sectors really expected to see a pickup in Earnings Growth in the Third Quarter and fourth quarter. Well certainly keep an eye on the guidance and commentary from these companies as this is expected to be one of the best performing sectors in terms of Earnings Growth in the second half of the year and for all of 2014. Our quarterly visit with john butters, thank a lot. Thank you for having me. John is with faxet. Still ahead, last minute surge. A target once thought out of reach was met. 7 Million People have signed up for Health Care Insurance under the Affordable Care act. But does that lead to a healthy prognosis for the new law . Thats next. General motors wasnt the only Iconic American Company getting grilled by lawmakers today. So was caterpillar. The worlds biggest mining and Construction Equipment maker is accused of shoveling 8 billion in profits to offshore accounts and evading billions in u. S. Taxes. Hampton pearson was at that Senate Hearing and has more. Reporter heavy equipment giant caterpillar avoided paying 2. 4 billion in u. S. Taxes under a Corporate Restructuring 15 years ago that shifted most of the profits from parts sales worldwide to a subsidiary in switzerland. Thats the major finding in a just released report from the Senate Permanent subcommittee on investigations. What turned into a fivehour marathon hearing began with committee chairman, michigan democrat carl levin, saying closing off shore loopholes should not be held hostage to a complete overhall of the tax code. We cannot tolerate the loss of our taxable revenue the way it is currently lost to uncle sam, which is the use of these tax loopholes which are unjustified and which are exploited and pushed over the limit at times. Weve had hearing after hearing which shows that. Reporter caterpillar and its longtime tax consultants, Price Waterhouse coopers, which was paid 55 million for its strategic advice, say they are obeying the law. Pointing out caterpillars effective tax rate is 29 . Three points higher than the average for u. S. Corporations. Caterpillars philosophy is that our Business Structure drives our tax structure. We do not invent artificial tracks structures. Reporter republicans on the committee were outspoken in their defense of cat erpiller and its offshore tax strategy, leading to charge senator rand paul. We should be complimenting caterpillar and perhaps giving them an award. Caterpillar not only employs 52,000 people but pays 600 million in taxes every year. So really weve got the wrong people on trial here. The tax code needs to be on trial here. Reporter so caterpillar now joins the ranks of apple, microsoft and hewlettpackard who have all been called to capitol hill in the last 18 months to defend their tax strategies. For nightly Business Report, im Hampton Pearson in washington. And staying in washington, theres some celebrating at the white house tonight over a milestone for the Affordable Care act. The Administration Says more than 7 million americans signed up for a new Health Care Plan through Online Marketplaces by last nights open enrollment deadline. President obama spoke at the white house late today. I said before, i will always work with anyone whos willing to make this law work even better. But the debate over repealing this law is over. The Affordable Care act is here to stay. So has the sixmonth Enrollment Period been a success . John harwood joins us now from washington with more. John, what happened at the end of the enrollment process to reach these goals, these unexpected numbers . Reporter well, tyler, the white house always said that the shape of the enrollment process would include a spike at the end. I think this is a spike that was bigger than they expected, but they did a very heavy social media campaign. Thats why they sent the president on with zach g galafinaisis. Lebron james. Ellen degeneres. I think thats what produced this number. As for whether that makes the enrollment a success, dont know that yet. We wont know until we see how financially viable and balanced these exchanges are. So president obama found it pretty upbeat today saying the Affordable Care act is here to stay. John, whats his message . Reporter well, his message was two parts really, susie. One was celebration. As you indicated earlier, i havent seen the president , his aides, Congressional Democrats this elated since the night he won a second term. But the president also was reflecting real exasperation with the political resistance hes faced. There was a plaintive tone in his voice when he said i cant under underwhy people argue against giving health care to people. Its a fight thats going to take place through the fall when democrats try to win back the house thats going to be hard and hold on the senate will be hard. What is the gops reaction to todays events . Well you see a whole series of reactions. Yesterday Speaker Boehner said were going to continue trying to repeal the law. You had some republicans coming out and saying the numbers are made up, that this is just spin from the administration. Others saying well yeah maybe people have signed up but havent paid their premiums. Theyre still trying to absorb these numbers. Over time once we see how satisfied americans are, maybe the program gets more popular or not. The outcome of that is going to determine how well the election goes and then the fate of the law going forward. John, thank you very much. John harwood at the white house tonight. Trading on the New York Stock Exchange at a standstill for a time today. Traders were transfixed on author Michael Lewis who says that stock trading is rigged by socalled High Frequency traders. Things got really hot between Brad Katsuyama and prominent figure in flash boys William Obrien over whether the average investor can compete with highspeed traders accused of rigging the market. You said in the book, thats when i knew the markets were rigged. Its disgusting youre trying to parse your words now. You cant say that. You are quoted that way in the book. Lets walk through an example. Do you believe it or not . Because you said it. Let me walk you through an example. Yes or no question. Do you believe it or not . I believe the markets are rigged. There you go. I also think that youre a part of the rigging. If you want to do this lets do this. Lewis brought the term High Frequency trading to light this week with his new book flash boys but still supports investing in stocks. Do you not invest because do you stay out of the market entirely because you dont want to be scalped a bit . No, you dont. But that doesnt mean the scalping is okay. To what degree does that system have in it this incredible instability just to able the scalping . The complexity of the system is breathtaking. Meanwhile, the fbi has opened an investigation into the practice, trying to find out if firms taking advantage of fastmoving market data over hightech wires unavailable to other investors are actually engaging in insider trading. Tyler . Theres a big change coming to the New York Stock Exchange. Goldman sachs is preparing to sell its socalled designated market trading unit which pairs up buyers and sellers on the New York Stock Exchange. Goldman acquired it for 6 billion. Now that so much trading is moved off the exchange floor, experts say that space is now worth only about 30 million, maybe less. Can you say tax writeoff . To surgicals new device gets the okay from regulators and shares jump. Thats where we begin tonights market focus. The food and drawiug administran approved the da vinci xi. It allows surgeons to perform complex but minimally invasive procedures. The stock was the biggest gainer on the s p 500 surging nearly 13 to 493. 60. Shares of yahoo rose on reports that its in talks to acquire Online Video ServiceNews Distribution Network for 300 million. The deal could be a competitive threat to googles youtube. Yahoo was up more than 1. 5 to 36. 49. And casino stocks popped after mccow announced First Quarter gaming revenue grew 20 beating analyst estimates. Winn resorts Las Vegas Sands and mgm get most of the revenue from mccould yo mccow. News corp. Won the dismissal of a lawsuit. That suit accused them or defrauding shareholders by hiding illegal phone hacking at two of its newspapers. Shares of news corp. Up 1. 5 today to finish at 16. 94. Tjx Companies Parent of t. J. Maxx and marshalls new dividend of about 17 cents a share will be paid to shareholders in june. Shares up a fraction, 61. 19 to finish there. Coming up, 4 million americans expected to get hit with the alternative minimum tax. Are you at risk of paying it . And is there anything you can do to avoid it. Just 14 days to go before tax day, april 15th. And many high earners are dreading the possibility that they might have to pay the alternative minimum tax this year. So whats the amt all about and how can you avoid being targeted for the tax . Sharon epperson has answers. Reporter lamb haalmost half americans do their own taxes. Many think theyre taking advantage of all tax breaks. Millions of taxpayers may not realize some big tax breaks theyd normally take on their regular income tax return wont save them any money at all if theyre subject to the amt. The alternative minimum tax. Many people actually call it the stealth tax. Its because it comes as a surprise to people that theyre affected. Reporter many taxpayers need to do two calculations, one for their regular tax and one for the amt, and prepare to pay the higher amount. A certain amount of income is exempt from the amt. If youre a married couple, the full exemption amount is 80,800. Its 51,900 for single taxpayers. But the amt exemption phases out as incomes rise. As result, taxpayers with incomes over 200,000 are most likely to face this tax. Its generally those people who are id say moderate to upper income who may have lots of like state income tax deductions, a lot of children or other exemption. Theyre the ones who are generally going to be affected by it or at least need to check to make sure theyre not affected by it. Reporter if you live in new york or any place where state and local taxes are high, those taxes can be a big deduction on your regular return. But the amt wont allow it. You wont save much with miscellaneous deductions, including exemptions for children, either. Deductions for amt purposes are in essence penalties. Theyre trying to capture taxes on expenses and deductions that really shouldnt have slipped in their minds through the cracks. Reporter many deductions are adjusted downward or eliminated entirely when calculating the alternative minimum tax and may trigger a tax liability. So what can a taxpayer do to avoid the amt . Dont take too many itemized deductions, tax experts say, since theyll lose their value. Instead, shift some deductions to a year when youre less likely to be subject to the amt. But with the april 15th tax filing deadline just two weeks away, many taxpayers will just need to be prepared to pay the higher tax. For nightly Business Report, im sharon epperson. If you want to know more about the alternative minimum tax and what it means to you, go to our web site, nbr. Com. It is april 1st, april fools day. That means some companies try to drum up some press by announcing outrageous stunts or unveil hard to believe products that seem to fool a lot of people, including some of us. Dominos pizza is at it again this year announcing the edibox. Do not try this at home, folks. Fresh direct said it would start delivering salmon that was caught by eagles. Pepsico which makes cheetos snacks handed out perfume that smells like cheetos. People were having a lot of fun today. I couldnt play any jokes on you, though. Nor i on you. Thats nightly Business Report on this april fools day. Im susie gharib. Thanks for watching. Im tyler mathisen. Have a great evening, everybody. Well see you back here tomorrow night. Another Beautiful Day in paradise lets go this tower may be the most complex, and costly building ever constructed on american soil. It will be a place where people will come to work and to remember. we all saw a lot of things that we werent meant to see, you should never have to see. out of the shadows cast in this citys darkest hour. we lost much on september 11. We lost 3,000 people. We lost our offices. We lost lower manhattan. . It will rise a symbolic 1,776 feet. Now the race is on to get it finished.