Fueled expectations that a rate hike could come sooner rather than later and add greece to the mix and that adds up would the worst decline. The dow jones closed at 18,041 and nsds off by 56 and the s p 500 finished 21 points lauer. Dominic chu look watchers chi we could be in for more of the same this summer. Traders and investors came back from the memorial day holiday from a sea of red on wall wall street. Not kick off the Summer Season from stock. A skittishness from Interest Rates. It is expected rates to rise after Federal Reserve chair janet yellen said the Interest Rates could raise. It is normal for markets to become more volatile. We are not surprised by this. In a lot of peoples view that was less likely to occur now than c september or perhaps even december but over the last few days fed speakers including chairwoman yellen have made it clear that the first rate hike will begin sometime in 2015. Many market observers do note that while we have seen more volatility recently we have yet to see any real stress for stocks or the u. S. Economy. At least not enough to kauds any real panic. But as markets try to handicap when the fed will move on rates, more of a roller coaster ride could be in store for the next months. I would expect volatility to continue through the summer. You have a point of decision on whether Interest Rates will be moved up by september. Theyve indicated september is the likely date. The closer we get to september, the more the market is going to be pricing and the impact of that move and that usually create volatility. Even though we could see more ups and downs that is not changing the longterm investment theat is for some but it could create opportun some some some in markets of the market. You should have dry powder on the side prudently people tend to think of things that way but we want to be buyers of sectors where there is cash on the balance sheet, cash do be used to cushion the volatility whether it is share buybacks or m a and we think health care and technology are two sectors like that. And the big question is whether this leads to a bigger pullback in stocks which hasnt happened since the s p 50010 drop last fall. For nightly business rep im dominic chu. And investors and the Federal Reserve will pay close attention to the Housing Market and today new reports shows home prices and home sales are climbing. And while the latest numbers report to an improving market there are still hurdles. Die sanaa oleic has more. At a new development in Silver Spring maryland buyers are moving in. Sales of newly built homes are up there and 2345igs wide as the prices of both new and existing homes. In the nations 20 largest Housing Markets prices rose 5 in march from a year ago according to the much mapped s p k schiller price home index. Ster till 16 off the peaks of the housing boom when there was plenty of supply. Now prices are higher because there is so little to buy. Most of the buyers were talking to are fruft raiding because to bid wars not just with two more buyers but with five ten, 15 buyers, since 2006. Sales did rise since march and up 26 from a year ago. Sales may be rising but nowhere near historical norms because buildeg up houses as a normal historical base but they are raising prices and that has to do with millennials and land. They a buying houses at the rate their parents did when they were young and they are not focusing on the entry level market and they also just cant afford to right now. Land is extremely expensive and the developer is selling it for a lot of money and the only way to make money if you are a builder is to build a huge expensive home. Prices are up over 8 from a year ago and with Interest Rates expected to rise soon buy who o borrow want to jump fast pushing the prices ever higher. Im diana olish in washington. Orderers for long lasting goods slips. Durable goods such as aircraft and metals and electrical nell. But a key measure showed business spending rose for the second straight month. After an extended weak spell. That is a positive sign for the economy. Well that Business Investment data from the durable goods report prompted the atlanta fed to increasal by it just slightly the Economic Forecast for growth in the Second Quarter. The atlanta fed the economy is on tract to expand. 8 . Whoopdedo, up from 7 from the prior forecast. And the dallas fed reports the factory activity in texas fell this month to the worst level in six year. And several Business Leaders in that survey say the state is still feeling the impact of declining oil prices. Which has spread now to other industries. And they remain pessimistic. Today Oil Prices Fell 3 to 58. 03 a barrel. Concerns over greece surfaces. The cou in talks with creditors over a series of payment cocking due, the next one in early june. But as michelle carusocabre explains it is not just greece investors need to watch, but also spain. Once again a new round of meetings and teleconferences scheduled this week to hammer out a deal between greece and creditors to lead to a disbursement of euros to greece can pay bills. But over all the two sides remain far apart. Now, however, may not be the time to worry about greece. Consider june to be the cold war phase of greeces negotiations with the creditors. Sniping back and forth, no real for arma geddon. Because the billion euro payment ine go to the imf and there is not a lot of consequences to on time. The hot war could come in july and august when they have to make 6 billion euros in paym to the ecb and missing those payments will have consequences leading the ecb to shutting off the taps for greece banks and that could lead to a possible exit from the euro. And hurting shares elections in spain over the weekend in which the ruling party got clocked by smaller austerity parties. Even though there are smaller elections investors worry they port end a smaller election in spain and could that rollback spending cuts and other measures in the larger and more important economy. For nightly business rep michelle carusocabrera. From greece to housing to the Federal Reserve, what does all of this mean for the markets in the days and weeks ahead. Joining us now is steve thoj. Steve, good to see you. Welcome back. Good to see you, sue, thank you. What happened today. We know the fed will tighten up on race and weve known greece is a problem. What maybe the selloff occur today. I think it was good news is bad news today, sue. Weve been starting the markets and pricing in the foed might delay until december and maybe next year and weak Economic Data the last couple of weeks and, boom the good housing numbers and people started to pushback toward september and i think you got that selloff. Do you still believe that the underlying fundamentals of the u. S. Economy, the under financials ie Interest Rates, strength of dollar oil prices are favorable for the u. S. For stocks for the rest of the year. Yes, todd. Todays numbers are what we are hoping for the. The industrial side is the soft side of the economy. It looks like it is coming back as we thought it was. We have growth in the 3 range and we think that is good for earnings. And we are less concerned about the Broader Market is. So where are you putting money to work at steve. Equities. We almost like everything. We like consumer the Airline Stocks they are beneficiaries of lower oil and some of the Interest Rate plays like utilities which we think oversold relative to fed ike expectations. Is still money to be made in europe japan . We think so. Europe is recovering japan is doing some things right. We are moving thing money things back in there, tyler, but we are close to european and japanese allocations. And weve talked about greece and deadlines coming up as michelle just indicated in her report. Does greece factor into your Investment Strategy steve, or have you put it to the side . We put it to the side sue. As maria point out they owe the money to the they owe the money to the imf and ecb. It is not a systemic problem. And we dont have that. Whether they work it out or not, i haflt think they might let greece go. It would probably be a good thing for everybody. But either way we think it is a short lived buying opportunity but not one i would prepare for in a very bearish way. Fair enough. Steve, thank you. Steve off with federated. A 55 billion deal in the cable industry. Charter communication struck a cash options deal for time warner. It would make the Cable Company second biggest after h termid tis deal to buy time warner. And shares of tarn and charter higher in trading today. Julia boorstin has more. Charters acquisition of time warner will build a power house, along with the purchase of Bright House Networks the company would have 24 million customers. Seco to comcast. A month after comcast pulled out the planned acquisition of Time Warner Cable in the favor of pushback from the fcc. What the fcc seeking is being developed by this transaction. It is not just about doing no harm its about bringing Better Services to the country and to customers and expanding the footprint upon which those services are delivered. Rutledge is pursuing this dual not just for cost savings, but more important, he said the Larger Company can sell better products and reduce churn or the rate of customer loss but some investors have raised concerns that charter could be overpaying the idea that the churn rate which is what we look at in the debt and equity of the companies, will go down because of paying nine times multiple or getting scale. Im highly skeptical. Gro scale will be beneficial when it comes to broadbanrs shift away of linear tv to streaming vid which risks cord cutting. There is netflix and hulu and now hbo which was a Cable Provider moving into broadband and it has become a part of customers lives and doing that well and fairly and officially is a Public Interest eefficiently and publicly is important. A brand band servi in alternative to cable tv. And theyll see if it is beneficial for consumers and win the fcc approval. For nightly business report, im Julia Boorstin in los angeles. Shares of general motor fell after reports the automaker will face criminas a pay a fine for defective switches that have been linked to more than 100 fatalities. Phil le beau has more. After her company had shoern incompetence and failing to recall defective ignition switches the federal government is filing criminal charges against the automaker. The office of ferrera is ramping up the case perhaps this summer. It is likely to include deferred prosecution, meaning the charges would be dismissed if gm agrees to certain terms and conditions. There are reports gm to face a fine of up to 3 billion. A spokesperson for gm would not comment on the status of the federal investigation. Last year prosecutors fined toyota 1. 2 billion for failing to alert safety regulators for complaints involving the sudden acceleration of vehicles the largest penalty imposed on the automaker by the federal government. When maryibbara uncovered the ignition switches she said 15 gm employees were fired for their role in the scandal. It is unclear if any of the former employees will now face individual criminal charges. Phil le beau nightly business chicago. Still ahead, the words no taxpayer ever wants to hear the irs has been hacked. Late this afternoon the irs said thieves used an Online Service provided by the agency to gain access to data from more than 100,000 taxpayers. How exactly did this happen and how many taxes might stigt be effected . Eamon javers has been following the story from washington so what do we know at this point . Hi sue. Up to 100,000 americans have had personal information stolen by hack w impersonate them on the irs website. A piece of the website called the get transcript feature and able to answer very detailed questions about the taxpayers, including one security question what was your High School Team mascot and they had that information when we went to the website to impersonate the taxpayer and the website saying they got it from facebook social media and the like and they got the information, including tax returns in many cases. So they were going one taxpayer at a time, because thd to research every one to get those kind of passwordyy information. You might think that by going to the Facebook Page and go to the high school and finding out what the mascot was. But they are assuming because of the large number of people impacted here that it was ultimately an automated process to gather that data about people into a massive data base and automatically sen the questions as the irs is asking for them. So the irs have thut down that borgs of the web counseling to those impacted but they are trying to do more to learn who was behind this and how it went down. Eamon, thank you very much. In a case being closed by businesses a federal Appeals Court has blocked the immigration plan protecting immigrants from deportation. The court ruled in favor of 26 states that challenged the president s executive action. The case could potentially make its way to the supreme court. Apple is reportedly eyeing a big bond sale ane gib tonights market focus. The tech giant is considering issuing 200 billion yen in bond is which more than 1. 5 billion. They trying to take advantage of the rock bottom Interest Rates in japan and they are hoping to expand japanese operations shares fell to 129. 62. Price line will invest in sea trip. Com a china based onl look at the fast growing chinese travel market. This is the second investment in that firm. Shares were off to 159. 95. Trae trip tumbled to 81. 99. Auto zone reporting quarterly profits that top wall street estimates and the Company Continues to repurchase shares. Sales were off a little bit from wall street expecting. Stocks fell to 688. 43. The Israeli Software provider nice systems in z is in talk to buy live person which is what i can never get when i call a service provider. It is a chat software company. The value could be 650 million and shares popped 13. 5 to 10. 16. Yum brands will remove artificial flavors and food at taco bell and pizza hut by the end of the year and hope to remove transfats and other ingredients by 2016 and ending at 21. 54. And hormel abuying applegate forms, a organic meat company for nearly 800 million, and shares surged but then fell to 66. 61. Coming up why it is a tough time to be in the taxi business and what some drivers are doing about it. A disappointing start to the Summer Box Office it. Was the lowest grossing memorial day weekend since 2001, in part because of the performance of disney tomorrow land which took in just 40 million and that was elect than expected comparing to last years x man, days of future past which grows 110 million and fast and furious six before that which grossed 97 million. Bred lang with variety magazine said it is clear from the results that there is an underlying issue. It does show this problem that hollywood has right how which is diminishing star power it. Was a maim above the title was enough to guarantee a big opening with the exception of brat pit Brad Pitt Robert downey smith and even will smith is looking shaky. He said the movies are surfing because of how much they co a big weekend for car buyers. True car reports that sales were up 7 nationwide this weekend as compared with last year. And putting the sales pace for may on track for more than 17 million vehicl for t year. Pickup trucks and small suvs continue to be the hot sellers. It is a tough time for the taxi industry. Ride hailing apps like uber and lyft are upending the cab business as we know it taking away customers and deflating the coveted medallions but some taxi drivers are fighting back against the startups and doing what they can to survive the ridesharing revolution. Kate rothers have more. Taxi and Limousine Companies are hurting. It is a trend, garr hard deutsche has watched unfold. A Company Comes out and has an app and you push a few butt yonz and a car comes to your door. He has a fleet of 500 cars that service the tristate area. In the past year he said 15 of his drivers and customers left for uber or lyft but the company has since recouped about half of the loss. They have a knack of their own. Iride and he said drivers and customers can count on them for a reliable experience when has helped bring business back. There was a huge advertisement on the uber site and pretty much going out to various drivers, and having various initiatives out there to large forwardlo to large payments to join them. So that hurt us. The medallions are the seals that allow drivers to operate yellow cabs have dropped as well. Medallions have had been soeltd for 800,000 dollars in the Second Quarter and that was a drop from where they sold for 100 apiece. This man bought his meddlean for 600,000 dollars in 2009. But now he sees his car as a liability. Investment in the longterm, it would help me raise a family and take care of kids and pay the rent. And later on it will work as my retirement. I will save enough along with working, expenses so that was the plan. But if that plan doesnt work out, he may throw in the towel and drive for one of his appbased competitors, foirks nightly busin im rogers. And for more head to our website, nbr. Com. And finally tonight, the worlds 100 most powerful women. Forbes is out with the annual list including 24 ceos, 15 billio and eight head of state. And the women on the list control some 1 trillion in annual revenues. Toppin for the fifth Consecutive Year is Angela Merkel overseaing the largest economy in europe and in the world and jumping up is Hillary Clinto the probable democratic candidate in the president ial election and last year number six. And then third gate and then yellen and sue herera was next. Oh, right. And janet yellen and i dont understand that. And neither does taylor swift. But she was on the list. No. Tea and honey or something stronger. Im Tyler Mathisen have a great evening, everybody. Well see yo. The following kqed production was produced in high definition. [ music ] when amy x. Neuburg discovered electronics, she never looked back. And the musical places she goes to will surprise you. Amy x. Neuburg i just fell in love with the sound of the electronics. Not only are you creating all i mean, music, youre creating all new sound. The work of ceramicist shuji ikeda requires patience. This kiln will burn for seven days. Shuji ikeda through my work i want to communicate without language. And the floral work of stanlee gatti. Those stories, this time on spark. [ music ]
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