Yesterdayramatic selloff rippled through the financial market. Ocks dropped sharply at the open. Then they only to fall, and soar again. In the biggest comebackor the s p 500 since 2011. Lets get right to thelong numbers. The Dow Jones Industrial average rose 560 points to 12, 912. Get this. At the open, the index immediately fell 567. There issing is something about6 think about that when you play the numbers. The nasdaq add 148. The s p 500 was up 46. Investors blamed the vol on intrarate concerns. Computer driven trading, and object structure volatility funds that use leverage. Bob pisani nowlo with a at todays action from the new york stock exching. Talk abonother roller coaster ride for the stock market. The dow tumbled 560 points but reversed course. At the end of the day, the dow travelled at more than 1,000 point rang we havent seen have tilt like that in all of 2071. The dow hit correction territory earlyon. We were down 10 from recent high. But at the close it managed to top the biggest comeback in recent year its not an economic scare. The credit markets are doing fine. Gold did not budge. Corporatll america is s healthy. The world is still spinning. Remember, the three major keskings to the mare number one, inflation, number two, valuation, market expenses, and third, politics. So in the last 24 hours, nothing has really changed on the inflation front or even on the political front. So whats different . Valuation risk was a little lower. That may account for t late in the day. The market set going a lot cheaper weve gon from really overbought to really oversold in a little more than aweek. Not dirt cheap but a lot cheaper than it was a week ago. And erybody said id like to buy 10 below the market. Looks like some people rdid. Nightly Business Report im bob pisani at the new york stock he can change. For more why the market may be trading this way is peter costa of empire. Thanks for joining us. Glad to be here. What wa it like down there today, and what does your traders gut tell you about what isne coming . Several thing. Number one, it was crazy. You know and i hav been in some crazy markets. Not crazy busy. But crazy in the movements. You know, having the market up 100. Then down 75. Then up 100 again. The market whipsawed all day long until right after 2 00 when started its rise. And you know what, everything kind ofettled in as we were going up. But this is volatility. And yo know, thi thing, it doesnt go away overnight. So what i think w ut will end happening is it will probably volatile the next couple of days, early. Next we and things will start to stable aye at certain levelndhe market will look at more fundamentals, earnings growth, whats goi to happen with Interest Rates, so on and so forth. Right now, for traders down on therading floor this is actually a very profitable time because our clients are very active. Yesterday, peter, felt to me like machines reacting to t triggerst only they could see. In other words, programmed ading and so forth. Today may be a little less so. But how much of what is goi on over these past couple of days is really human beings buying andselling . I think today there was more of the Human Element as far as traders getting involved because of the volatility and the price points where people could get in and get out. Yesterdayly, definitely there was no ititutional selling as far as i could see. It was all computer driven and a lot of that was also the buyers disappeared. Re once tere certain levels reached, the buy side or the buy orders canceled. Tharket had the downdraft and nothing could really stop it until at some pnt something opped it. More like maybe some institutional buyers came in a the very low levels trying to pick a bottom. Today was more of a traders market. There were a lot of, you know, the ings. Not so many computer programs. But there were programs going into the close. So it was a mix of both. We want moreal instituti traders in. We want more institutional interests in. T i think they have stepped aside for a little bit to let this market kind of like play o this and get back whatever they are looking to accomplish either on e short side or the long side. They will be back in. I think right now they stepped awayust a lib. Understandably see. Eter costa with empire executions. The treasury secretary has been watching what has been happening on wall street and today told kayla touchy that the fundamental of the economy remain strong. The economy is doing very well. Tax reform is clearly helping earnings a lot. And thearkets look like they are functioning normally in terms of liquidity and other things. What about the reaction across the world . Again, markets move in both directions. And they are functioning very well. Im going to volatility. People should be focused on the long term investment. People have been focused on the stock market over the long term has been one of the best investments. The head of the s. E. C. Told lawmakers that the m functioning well and that his agency continues to money on the the volume snilt as volatilit as i sit here today there is nothing that concerns me from a functioning standpoi days like yesterday, our job to look at them. And clayton declined to comment on why stocks fell so sharply yehrerday. Ghout the day markets experts were sharing their thoughts on what haseen happening in the stock market and offering opinions on how it all might play out. A moment of volatility like this and a pullback in price, quite frankly its to be expected. Rethink as group we need to take a deeph and realize we are going to be okay. I do think these types of events usually take two to three weeks to wor through the system. With that i think volatility remains elevated at least two or three weeks. Markets remain tn and volatile and thats just what you need. Thats what some of the pros have to say. What about u, the individual investor . Well we took our cameras to find out. Im keeping moving in all of the friendsy and hoping that my portfolio w l holdout. And i have a couple of numbe plus years im hoping to be in the market. I hope thats on my se as well. The stock market will return, maybe not right away. It was a bubble of course. Everybody understand that it was riding up like crazy like a rocket. My thoughts are a little ain calm but i r because i have been through a number of market cycles and i realize time is on our side and as longs you hole on it will come back. Im going the wait it out for a while. I have been through this before. I was into it in 1987, and then in 2006 or 2008. So it always comes back. His wife is hitting the sell bu saying get it out and get it in cash. I think the most important thing is to think for the long term. Most people see this and get skpard and dont realize that they have another five or ten or 20 years and over time few things have done as well as the stock market as Warren Buffett will tell you. Hey have it right. Lets bring in a market watcher who says a pullback is a goo t thing f market. Jeremy siegel, a professor at university of pennsylvanias Warden School of business. Over time, professor, the stock market has really performed better than almost any other asset class. It has. Does yesterday change that at all . No, not the long run. What we real had washe marke went up too far too fast. I was even saying to myself january is crazy. Momentum players. Now momentum invesrs are those who say im going to follow the trend. I dont dare about valuation im jumping on they train and t place their stop orders, sell orders just a few percent below. And say when the train starts slowing im going jumpon. Interest rates were set to go up. Friday there was a ltle problem. It multiplied and they all jumped off yesterday. And that produced a vacuum and th decline. We have got much sounder values right now. You know, there is an old sayin on wall street that goes back decades called up the staircase, down the elevator. And january was our staircase. And early february was the elevator. And this type of behavior is not something new. Its been true of speculative markets for ages. Did the shakeout yet did all of those momentum mayors take the elevator and get off, do you think . I think most of them did because it wiped out the gains of january at the low. You know im not saying all of them are out. You know, even last year, i said this year not going to be as good, anywhere near as good as 2017, and its going to be challenged by higher Interest Rates. We have a very strong economy. I think the fed is going to raise three, i think four times. Higher Interest Rates are ave nega factor for stock prices. Now on the other s you have great earnings. So it is a battle between great earnings and the higher interes rates. And thats what i think we are going to see throughout 2018. Professor, talk to the individual inv wtors i can well imagine might be concerned at what he just hrd peter costa say. And that is that yesterdays spasm of selling was being driven largely by computers. Have the machines got too much power . And what should i as individual investor think of that . Im not sure of that. Because momentu players, speculators they were around in 1929. They kept on driving the market and they were around of course in 1929, ur1999,g the internet bubble. It is a feature ofla speve markets. Whether you set it on a machine or a human being, you know says im selling at this point, really the final result is th same. Its just that in todays world, its going to happen so much faster. Its going to take place in a matt of minutes, not a matter of hours or days. T. All ri professor siegel in philadelphia. Congratulations on the eagles. Thank you vy much. Im proud. Thank you. Still ahead, the says he welcomes a shutdown. Even as lawmakers say progress is being made on a budget deal. Disney shares closed higher today. And after the csing bell, the Company Reported earnings that blew past wall street estimates. Des me earned 1. 89 a share. That was a fl. 28 per than forecasts. Revenue up nearly 4 from aear o to 15 billion. Investors liked what they heard about strong attendancet theme parks and resorts. Julia boorstin now with more on the quarter. She spoke to disneys ceo. Disney beating expectations thanks largely to the outperformance of its parks asi resorts di. The company saying it saw higher spending and higher attendanced its u. S. Parks both in orlando and anaheim, california. Also saying it hasig seenr performance of its cruise Line Division asla well as disn paris. It starts with success across the globe, partilarly in som of our international or in one particular International Park and sort in paris that it had a number of years where the numbers werent that good. And they have improved substantially. But we have also had record results for our domestic operatio as well. Record revenue, record bottom line. An across the board success story. Also saying he is optimistic about the company benefitting from bigtal distribution of its Media Networks such as espn. He also announced espn plus, the newubscription app thats launching time this spring will cost 5 per month. For nightly Business Report im Julia Boorstin in burbank, california. The batteried tech sector bounced back aftering getting walloped yesterday. It is a sectornvestors watched closely since it was the best performing one last year. Josh lipton is in San Francisco for us tonight. Reporter s volatility returns to the stock market, investors have been selling their winners. That includes some of biggest names in technology. That comes despite a prettyood earnings quarter for the sector. Profit and Revenue Growth both exceeded expections but that doesnt mean last years hottest rctor is immune to a broa decline. These Companies Just reported q 4 earnings last week. By and large what the numbers show you is that demand fundamentals remained extremely strong, particularly forme dy like an amazon. Even for a facebook or even for an google or a alphabet. If there is any pushback is to be had is on the margin. E fact that all these guys to continue to grow at thatevel they are going to need to invest and therefore there is potential or margin contraction over the next year or two. Reporter take apple. Company recorded record quarterly rev and earnings per share earnings per share but sold fewer iphones than expected during the holiday quarter. Then there was alphabet. It jumped from the latest report. But there is concern about the fees that it pays partners for traffic. There are still reasons why tech is an attractive sector tost ins even as they prepare for the possibility of more volatility. One reason is dividends. Some of those can be found in the bluest of blue chip tec stocks. For nightly Business Report im josh lipton. San frhecisco. Ubber met the road at general motors. Thats where wegh begin tos market focus. The automaker said cost cutting initiatives and demand for suvs and cross overs helped them top estimates. Gm saw a lot of bright spots in the quarter. Very, very pleased wit the results in north america. A record there at 2. 9 billion and 10 argins in the fourth quarter. Another half a billion dollar quaromr of equity i from china. And really important improvement in our Gm International marketsi another pble quarter in south america. Gm finished up almost 6 on theay at 41. 86. Strong demand for botox treatments helped he willer jen post better than expected profits and sales. Igparately the cpany said its experimentaline treatment performed better in a study. Up t 168. 33 there tapestry said its coach and stewart widesman bran helped overall sales edge past expectations. Earnings also came in ahead of expectations. And the company hiked its guidance for the year. That helped push tapestry up more than 9 on the day to 49. 02 dwl. The healthee insurer teen raised Profit Guidance for the year after reporting stronger than expected earnings. The company attributed the stronger results to higher enrollment in its Affordable Health care business and benefits from the new tax law. Send tee finishing up more than 4 on the day to 103. 67. After the bell, chipotle saidha burrito which i pettily shares were volatile in the extended session but ended the regar day up more than 1 to 304. 33. Out aer the bell,nap reported active user growth that impressed wall street alysts. The social Networking Company also saw sales pick up. N larger t expected gains there. Snap shares popped inut afterhours finished the regular day up 21 cents to 14. 06. The president today called for a shutdown of the government if congress does not pass Border Security measures if we dont change the legislation, if we dont get rid of these loopholes where kill remembers allowed to come into our country and continue to kill if we dont change it, lets have a shutdown. Well do a shutdown. D its worth it for our country. Id love to see a shutdown if we dont get this stuff taken care of. The comments came as lawmakers on capitol hill said progress was being made on a spending bill t to ke government up and running past the friday deadline. Elon mui is in our nations capitol tonight. Where do we stand on theseti neions to keep the government open. Reporter it does not look like we are headed for a shutdown. The house is looking to pass tonight a shortterm spending billldhat w keep the government open through march 23rd. It could keep funding for most agencies at current levels but w itld increase spending for the Defense Department and fory communealth centers. This is a very dfer tack than the senate is looking to take. Over in that chamber both em republican andratic lead remembers trying to come to a compromise on a long term spending bill that would fund the government for two years and it would increge spendoth for defense and for nondefense. And that is a point that is very important to democrats. Ey call it parity. And they say that would be a win for w them. Course keeping the government open though is one of the key responsibilities of lawmakers. This is a long term spending al that h alluded them for many months but both sides say they are very optimistic they can reach a compromise soon. One of the things that wall street is also worried right now is the status of the debt ceiling. What can you tell us there . Sue, this is something that is on the tablede to be inc potentially as part of that longer term, twoyear spending deal. But lawmakers have not decided whether or not to actually go forward wit that strateg yet. The deadline for raising the debt ceiling is around mid march according to the congressional budget office. So they have to do this soon. Unclr if itill be part this larger spending deal or not. Let me understand this. Is immigration part of, tied into, thel budget d that you were just talking about . And if it isnt, is ide prt ready to veto a long term spendingal it remains unclaire clear. Right w what we can tell you is that immigration is a separate issue from this spending deal. Those are going to be on separate tracks here on capitol hill. Thank you. Ylan mui on capitol hill. Today we learned that the trade deficit has soared to a nineyear high. For 2017, the gap leaped 12 to 566 billion. Last year, the u. S. Imported more foreignmade cars, computers and cell phones. The deficit with china hit a record. And imports were mexico also hit a new peak. Coming up, are you retired or nearing it . What you should do and not do in this type of market. Look ats time to take a some of todays upgrades and down grades. Exxonmobil was downgraded to underweight from overweight at bar close. The firm says the stock is v richued and sites a structural deterioration in its upstream business. Objection exxons price target was cut from 1. The stock fell th. Same analyst upgraded chevron from overweight to equaa citing improving fundamentals and an attractive valuation. Shares were up 4 to 117. 18. Micronech upgrated to overweight from sector weight at key bank the firm says the stock is too inexpensive to ignore following upbeat earnings guidance. The stock climbed 11 to 43. 88 and fellow chip maker cirrus lodging downgraded from hold to buy atneedham. The firm sites weak Third Quarter results and guidance. An ysts also concerned about weaker smart phoneemand given that cirrus makes chip for apples iphones. The stock off 3 to 43. 40. The flurry of activity in the markets has manynvestors king a closer look at their portfolio.