At one point the dow was actually up triple digits. The closing numbers, the Dow Jones Industrials Dow Jones Industrials added 56 points to 20,663. The nasdaq rose 43. And the s p 500 was up eight. Bob pisani spent the day at the New York Stock Exchange figuring out why stoc [ bell ringing ] reporter yesterdays selloff was a oneday event, at least so far. Traders had been nervous going into the open because yesterday a lot of big institutional traders were selling stocks. The concern was that the big players would continue to sell today. That did not happen. Wall street strategists also do not appear ruffled by the wild ride yesterday. None of them were taking future stock gains, at least not yet. Jpmorgan told clients they were still raising earnings estimates because corporate guidance has really been strong. Elsewhere, an accident in times square in the middle of the day that caused the death of one pedestrian caught the attention of traders. But it does appear to be an accident and not terrorrelated. The markets did rise briefly midday on erroneous headlines from bloggers regarding jim comeys may 3rd testimony before congress. Comey was asked in the video whether the attorney general or Senior Justice Department officials had ever asked him to halt an investigation. Bloggers misconstrued the video to mean neither trump nor anyone else had ever asked comey to end the probe. For nightly Business Report, im bob pisani at the New York Stock Exchange. Hugh johnson, who has seen a lot of stuff over the years, joins us now to discuss what we can expect in the months ahead in the markets. Hugh, so glad to have you here tonight. Like me, your sense of history and sues as well goes back through many crises over the years. Mmhmm. How should we think about whats going on now as an investor and how can we keep cool helads when the headlines are so hot . Its not easy. I remember the nixon crisis and the clinton crisis. Even though we try to keep our heads, even though we tried to focus on what really counts, which of course are earnings and the economy and things of that sort, the truth was in both periods we were very focused, obsessively so, on what was going on in washington. That was true in both of those instances. And i think its going to be true in this instance as well. And occasionally, periodically, were gng to get some sort of a shock, a shock that suggests the president is going to be impeached or something is going to happen in washington. And that could cause a real ripple through the markets, a real decline. So this is going to be very much i think, you know, were going to be walking on hot colals for the foreseeable future, three to six months. There could be some fairly sharp corrections along the way if there are bad shocks for the administration. If im hearing you correctly, youre saying we cant really gauge from those past periods of time because we were in very different economic circumstances for the nixon era and also the clinton era. Very different. The nixon was era was as dismal as it gets. Not only did inflation go from 3 to 11 , the economy went into a recession. We were focused on the deterioration, in not only earnings, but the stock market itself. We were obsessed with that. There still was a lot of focus on washington. But it was very bad times. The Clinton Administration go ahead, please, hugh, finish your thought on clinton. Clinton was entirely different, the economy was expanding, things were really good. So the market performed well. Generally market performed poorly in the nixon period because of bad fundamentals. Markets performed well in the clinton period because of good fundamentals. But there were shocks along the way that caused ripples or declines in the clinton area. So what should i do, what would you like to tell our viewers who are investors that they should be wary of or they should take advantage of . Im going to ask you to cheer me up a little bit, hugh. The economy is pretty good, right . Unemployment is down and incomes are moving up a little bit. Its not all that bad. Yeah. No, its not. And the fundamentals are good. We have further to go in the current sort of stock market economic Interest Rate cycle, so you should maintain a meaningful allocation in your portfolio to stocks. The stock market over time is going to be fine. I think this is going to be a little bit of a testy period for two reasons. Valuation is not particularly good. I think we discounted all the good news that i see from the socalled trump stimulus, if we ever do get it. Weve already discounted it. What i simply would suggest to investors, maintain a high allocation to equities, but make sure youre very patient and very good at picked entry points. A good entry point to this stock market where valuation problems are not so lofty is lower than current levels. Thats not 2350. Thats 2300 or even lower. Be patient, pick your entry levels. Thanks for your wisdom, always good to see you, hugh johnson with hugh johnson advisers. My pleasure. A better than expected quarter for the Worlds Largest retailer. Walmart topped earnings estimates and report growth in key areas, helping lift shares more than 3 , making it the best performing stock in the dow index. Courtney reagan looks at why walmarts business is thriving in a challenging environment. Reporter retailers are struggling, but walmart isnt one of them. Investors are focusing on its growth streak, growing u. S. Comparable sales for nearly three straight years, and much of that from an increase in customers. An impressive feat for a retailer in todays environment. Forecasts are stronger than analysts were expecting. Stores still generate most of walmarts sales, but its Digital Sales grew 60 from last year. Walmart has a long way to go to catch up to amazon online. Walmarts total sales, though, are 3 1 2 times bigger than amazons. This is a company that is generating traffic not only in bricks and mortar but on ecommerce. You just dont see that anywhere in retail. So i mean, if youre going to pick a winner, walmart is definitely one of them. Reporter more people are buying groceries at walmart too. In fact the most in three years. Food makes up more than half of walmarts total sales. The enthusiasm fell somewhat due in part to walmart lowering prices and sales of more expensive items at the beginning of the quarter. In a retail wreck, walmart is a bright spot. Im Courtney Reagan for nightly Business Report. In the midst of a political crisis or at least controversy, President Trump hosted a News Conference at the white house with the president of colombia. He was directly asked about the Russian Investigation and his conversation with the thendirector of the fbi, comey. Did you at any time urge former fbi director james comey in any way, shape, or form to close or back down the investigation into Michael Flynn . And also as you look back no. No. Next question. The president also said, speaking for himself, there was no collusion with russia. And he called the entire investigation a witch hunt. As we have been reporting, investors are watching whats happening in washington because events there threaten to interfere, at the very least, with the administrations businessfriendly reforms. The Trump Administration formally told congress it intends to renegotiate the north American Free trade agreement otherwise known as nafta. The twopage letter offered few details about what changes the white house wants to make to the 23yearold pact between the u. S. , canada, and mexico. But the u. S. Trade representative, the administrations main trade negotiator, said the motive is to renegotiate the deal rather than scrap it. During the campaign, the president called it a horrible deal for the u. S. And possibly the worst trade deal ever. Also in washington, the federal Communications Commission voted to begin undoing some of the rules governing the internet, rules put in place during the obama administration. The current regulations make it illegal for Internet Service providers like at t and verizon to block or slow down websites for consumers. The companies have argued that softer regulations would let them raise capital and allow them to do things like upgrade their networks. The fcc will start taking Public Feedback on the proposal. It could be put to a vote, a final one, later this year. The biggest gathering of cancer doctors in the whole world takes place in early june. But already some new data on what could be promising new treatments are being released. Meg terrell has more on the companies behind the drugs. Reporter the meeting starts june 2nd, but last night the conference released more than 5,000 pieces of research in advance, giving analysts, investors, and those in the medical community a preview of whats to come. There are 40,000 people who attend who are involved in some way with treating patients with cancer. Reporter key themes are Precision Medicine and immunotherapy, medicine that reveal cancer cells, enabling our natural defenses to attack it. Trying to figure out what therapies are best for individual patients. We used to have a handful of chemotherapy drugs we would give to people in sort of a nondiscriminatory way. Now we realize some patients will do better with some therapies compared to others, and can we pick the best therapy for each patient. Reporter the Biggest Companies in the space are merck, bristolmyers squibb, astrazeneca, roche, and pfizer. The companies have generated results that have excited the medical community. It was Mercks Keytruda that former president jimmy carter credited with completely shrinking the brain tumors associated with his stage iv melanoma. Not all patients see such a dramatic benefit. So a key strategy is combination therapy, finding out if putting multiple drugs together produces responses. Some patients dont respond or dont respond for very long. Were really trying to understand more to the next level. Reporter these Research Updates frequently move stocks as drug makers compete. Investors are putting anywhere between 30 and 40 billion, and investors are trying to figure out how you divvy that up. Reporter insights shares spiked after an experimental drug showed promising results in combination studies in a number of different cancer sites. With combination therapy looking like the future of cancer treatment, another question arises cost. With many of the newer cancer drugs priced at more than 10,000 a month, many worry that multiple medicine will drive costs too high, sure to be a key topic in the conversations in chicago along with research on new approaches to treating cancer. For nightly Business Report, im meg terrell. Still ahead, role reversal. Why ibm, which once encouraged working from home, is changing its tune. The number of people filing for job less benefits fell last week. Initial claims for unemployment payments dropped. Claims have been below the key level for 115 straight weeks. Ibm is shifting its policy on working from home and calling workers back to the office. In a reversal of the work from Home Movement that it pioneered, the tech giant now says its remote employees must come back to a Regional Office or leave the company. Could other Companies Follow . Joining us, professor gordon, good to see you again. Hi, sue. What do you make the ibms move . Some say that this is basically the companys way of shrinking its workforce, giving employees a choice, but as a result, if you leave, they shrink the workforce. Others say its better to be in an office for the collaborative type of environment that that fosters. This is one where you just have to ask yourself, what were they thinking . Now, if what theyre thinking is this is a backdoor way of shrinking our workforce because people dont want to travel two hours to one of these locations, then its smart. But if thats not their intent, it doesnt seem smart at all. What has been the experience of other companies that have done this, have reversed these kinds of policies . Im thinking of yahoo i believe bank of america and others. So it varies depending on what your company is. If youre a bank or an insurance company, most of your workers arent tech workers. They probably like coming to work. In fact when you told them to work from home, they thought they were losing their workspace. But at real Tech Companies like yahoo or any of the rest of them, its a terrible idea, because the workers dont want to come to work. They want to work from their kitchen. They want to work in their pajamas. They want to work theat midnigh. They dont want to get dressed, be in an office, and be in a cubicle. Youre painting a wonderful picture of the american at work. Is that why you say its not a good move for ibm, if indeed their motive is more collaboration or something along those lines . First of all, theyre not going to get more collaboration. Theyll get more people i cant care yakking in front of the microwave. Even professors collaborate, much less tech people. Tech people are used to collaborating that way. If ibm wants to be able recruit the best tech workers for its supposedly advanced cognitive computing machine learning, it needs to recruit really smart young people who just dont want to come in to an ibm or anybodys office. Do you see any irony or analogy in the idea that when yahoo did it, its ceo, marissa meyer, was under pressure, and ginnie rometti is under pressure too . I think theres a lot of that. I mean, ibm has for five straight years, every quarters revenues have been less than the year before. Shes tried a lot of ideas. People are getting investors are getting really impatient about why she cant get revenue moving. This is going to be seen by some investors as pretty desperate. If this is her next best idea, i dont think its going to play well in the investment community. Got it. Eric, thank you so much. Eric gordon with the university of michigans school of business. Next time hell do the interview from home. General motors is pulling out of two foreign markets. The automaker will shed its south African Business and stop selling cars in india as it focuses on efforts in more profitable markets. The company will still build cars in india for export. Gm shares up a fraction. The childrens place said same sale stores rose. Total profit and revenue also grew, topped estimates, and the Company Raised full year earnings outlook. But still, shares finished the day down 50 cents at 111. 10. Pandora is apparently in talks again with serioa sirius. Pl pandora rejected a takeover from sirius last year. Pandoras shares popped to 9. 42. Gap says strength in its Old Navy Brand helped a rise in same store sales. The gap reaffirmed its outlook for 2017. The shares initially rose after the bell but ended the regular session down more than 1 23. 19. The Marijuana Industry is one of the Fastest Growing in the country. Use is now legal in more than half of the states. But will the Trump White House put up some roadblocks to further legalization . Kate rogers reports from oxon hill, maryland. Reporter with a new and potentially less Friendly Administration at the helm in washington, the Marijuana Industry is wondering what the future holds. Investors, regulators, and entrepreneurs gathered in oxon hill, maryland this week for the marijuana business daily conference and expo. Will the Trump Administration hinder the industrys record growth . Attorney general Jeff Sessions and press Secretary Sean Spicer have signaled potential for tougher regulation on the drug, which is still considered illegal by the federal government. The noise were hearing from washington, d. C. Is its going to stifle growth, probably slow down people from gaining medical access to cannabis as a plant medicine. I think theyre doing the industry and the citizens of the United States a great disservice. Reporter right now cannabis is legal for Recreational Use in eight states and washington, d. C. Medicinal cannabis is legal in many states. Marijuana business daily projection the entire cannabis industry will have an Economic Impact of some 68 billion by the year 2021. But for entrepreneurs there are still major hurdles, from taxation regulations to finding and keeping banking ri relationships, forcing many to operate with cash. Many Financial Institutions are fearful of running afoul of federal law. Banks continue to respect and adhere to the policies that are already in place that lay out a path for how banks can permissibly bank in this space. Reporter some marijuana advocates are hopeful legalization will continue and financial progress will follow. Ive worked on this issue for decades all over the country. Ive never met a Single Person that thinks theres any good purpose for forcing this industry to be conducted on an allcash basis, if you care about money laundering, tax evasion, robbery. Its insane. And i think were positioned that we can take care of this even while were dealing with larger issuing of legalization. Reporter for nightly Business Report, kate rogers, oxon hill, maryland. Coming up, priceless . What happens when that work of art or sports member areorabilio longer worth what you th leon coopermans omega advisers has settled with the securities and Exchange Commission for nearly 5 million. Last fall the sec accused the Hedge Fund Manager of insider trading, charges he said were without merit. Cooperman admitted to no wrongdoing. A settlement in the yearslong memorabilia suit involving the new york giants and eli manage could be forget coming. The su last night we told you that this is a big, maybe a huge week for the art market with more than a billion dollar of art expected to be auctioned in new york city. Have you ever thought about the people who determined the value of artwork or other collectibles . When their opinion on what a collectible is worth changes, it could mean millions. Andrea day has the story. When they change their minds about the authenticity of the work, the market rises and falls with that. Reporter a cezanne bought at sothebys and exhibited around the world. First is the royal academy, then the national academy, before being sold at sothebys. This is a stellar exhibition history. Reporter and included in the artists catalogue raisonne or complete list of his paintings. Inclusion in the catalogue raisonne is generally deemed to be an authentication. Reporter was there any doubt in their minds that this was a cezanne . Nobody at the time could have had any doubt. Reporter but years later when judd grossmans client tried to sell its unsellable and virtually worthless. Reporter Expert Opinions changed over time. The authors of the online catalogue raisonne project have determined they just dont believe its by cezannes hand. Reporter the painting included in a new experts catalogue. Its not the first time and it wont be the last. Reporter and he says it can happen for a number of reasons. New scientific methods that come out. Information about the works history or past owners. Or just new generations of experts. We reached out to sothebys but did not get a response. So how many millions could be lost here when opinions change . Countless. Countless. And that can happen in the blink of an eye. Reporter its not just art. At golden auctions, sales of sports collectibles topped 25 million last year. Billionaires buy sports teams. The multibillionaires buy sports memorabilia. Reporter he says jerseys were later found to be counterfeit. As years went by and authentication standards improved, everything revolves around who is authenticating it. Reporter he offers insurance in case things change. That would allow us to reimburse the customer for this event happening because we sold it as authentic. Reporter when it comes to priceless art not including a work in a catalogue is essentially saying its not right and no explanation beyond that is really necessary. Reporter and he says even the courts wont usually go against it. His best advice, do your Due Diligence before the sale to minimize any risk. But even with all of that, just know that opinions can change. For nightly Business Report, im andrea day. Roger ailes, the man who helped create and build a cable news empire, has died at the age of 77. He died from a fall at his home. He was a titan of media industry, turning fox news into a ratings juggernaut. But as Julia Boorstin reports, he was also very controversial. Reporter roger ailes was founding ceo of fox news in 1996. He became chairman of fox tv Stations Group as well in 2005. He was ousted last july following a Sexual Harassment scandal and a series of lawsuits. In the five decades prior, ailes rose to become one of the most powerful people in american media, building the Fox News Channel into a billion dollar brand and transforming the capable news landscape into what it is today. In addition to building fnc into a news powerhouse, ailes was president of cnbc for three years before launching fox. He consulted to republican president s richard nixon, ronald reagan, and george bush, and advised President Trumps campaign, helping with debate prep. 21st century foxs ceo Rupert Murdoch says he will always be enormously grateful to ailes. He forged an indelible mark on the american landscape. For nightly Business Report, im Julia Boorstin. That is nightly Business Report for tonight. Im sue herera. Thanks for joining us. Im tyler mathisen. Have have a great evening, everybody. Well this is bbc world news america. Funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for americas neglected needs. Planning a vacation escape that is relaxing, inviting, and exciting is a lot easier than you think. You can find it here, in aruba. Families, couples, and friends can all find their escape on the island with warm sunny days,
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