Looking for answers. Losing altitude. Boeing the Worlds Largest planemaker says profits this year wont be as strong as expected. Why, and should investors be concerned. We have all that and more tonight on nightly Business Report for wednesday, january 29th. Good evening, everyone, and welcome. The weather outside continues to feel like, well, january and why not it is january. But inside in trading rooms and on computer screens all across the country it feels more like november. Specifically todays Closing Stock market numbers do. The dow had its lowest close since november 7th. The s p 500 since november 12th. Trading was choppy, volatility high. Ongoing worries about emerging market economies and currencies contributed to the slide but so did a downbeat outlook from the dow component boeing. But the third part of the triple whammy came from the Federal Reserve. Its policy setters announced a further 10 billion reduction in its stimulus bond buying program. On the day the dow fell more than 1 to 15,738. The nasdaq also tumbled and s p finished at 1774. In every other way, though, natural gas it finished at a fouryear high up 10 . As tyler just said. The Federal Reserve stuck to its plan to trim back its bondbuying program. Wrapping up a twoday policy meeting and Ben Bernankes lasts one as chairman of the fed, the central bank seemed unsafazed i the recent emerging markets. Neither recent emerging market currency turmoil in turkey and elsewhere nor the disappointing december jobs report was enough to get the Federal Reserve to change its mind about trimming its bond buying program. At Ben Bernankes last meeting as chairman of the Federal Reserve, monetary policymakers were unanimous to reduce purchases by northerly 10 billion to 65 billion per month starting in february. Leading analysts were not surprised. We couldnt see any real way that they would have stopped the process because of some increased volatility in e. M. And recent selling in the s p. It just didnt make a lot of sense. Reporter the economy appears to be a mixed bag for monetary policymakers. On the positive side, growth in Economic Activity picked up in recent quarters with both Business Investment and Household Spending improving. But there are notes of caution about the mixed job market indicators. And the housing recovery that has slowed somewhat in the feds view. Is in is more of a macro strategy the fed is trying to employ. I think theyre just trying to get out of the center stage here with quantitative easing and go back to their traditional monetary policy. Reporter mon monetary policymake for nightly busi report im Hampton Pearson in washington. Joining us now to talk more about whats next for the fed and the u. S. Economy is allan blinder, former vicechairman of the board of governors at the Federal Reserve and now professor of economics at princeton. Welcome. Good to be here. Is the fed doing the right thing at the right pace and dca the economy continue to expand . The economy can continue to expand. The fed is doing what it can with quantitative easing, but nobody including the fed this this is a first order importance in how fast the economy is growing. Were talking the decimal point or beyond. It can keep growing with the fed withdrawing stimulus. Is it doing it exactly the right time and pace . Nobody knows the answer to that. I have to admit some sympathies with eric rosengrin who dissented on the grounds they were starting too easy. This is a close call, its not a very big difference one way or another. So alan, the fed tapers, which is pretty much what the markets were expecting. And we see the bond prices go up and the stock market goes down. What is that telling us . It tells me this is not because of a surprise at the fed. I think everybody on the planet that follows the fed was expecting the fed to say and do more or less exactly what it said and did. So you didnt get any surprise from constitution avenue. There is negative Economic News if you interpret it the right way coming out of the emerging markets. Frankly, as i look at it, and i think as the fed looks at it, its hard to see whats going on in turkey and argentina and elsewhere damaging the Growth Prospects in the United States in serious way or affecting u. S. Inflation in any serious way. So the fed looks at that and thinks its too bad for these countries, it would be nice fit was better, but its not really that relevant to the United States. I was going to ask you about the emerging markets but youve already answered it. Ill turn to the question of inflation versus deflation. Which is a bigger risk right now . Probably inflation by a very narrow margin. I dont think were much we have had some episodes in the last several years where deflation started looking like the real worry. Maybe that will come back. But it doesnt look that way now. On the other hand, inflation is running below the feds target. When we say inflation we usually mean inflation that goes too high. I dont think theyre very worried about that right now. At least most of them. The fed superhawks are always worried about inflation. Let me ask you that question a different way. Some people have been saying that janet yellin will have to focus more on inflation than jobs. What is your thought on that . I dont agree with that. That could come true if inflation starts rising, right . Inflation has been in the ones. The feds target is two. And the fed has warned that if it gets over two and a half all bets are off. But that seems remote. Its not impossible. It could happen. But it seems remote. So i dont think at least early in janet yellins tenure as fed chair shes going to be worried about combatting inflation. I think shes going to be more worried about a kind of a soggy labor market despite the fact that the Unemployment Rate keeps going down. Give me a final thought if you wouldnt mind on the tenure of ben bernanke. What will his legacy be . How will he be remembered . I think hes going to be remembered for several things. First, saving the economy from oblivion. Now, it got really bad, but it could have been a lot worse without a lot of the creative and imaginative things that the bernanke fed did. Secondly, with continuing that imagination, that creativity, you might even call it bravery because he was getting a lot of criticism, into the Recovery Period because it was such a weak recovery and trying to do very unusual, lets say, and unprecedented things like qe2, qe 3, operation twists, to try to give the economy some life. Allan blinder thank you. As always great to see you. Former vicechairman of the board of governors at the Federal Reserve. More now on the crisis in turkey. Despite a massive hike in Interest Rates that we told you about last night, the struggling turkish lira failed to make sizeable gains today. Business leaders are hoping for some stability in the turkish economy. Michelle carusocabrera has more. Reporter orlando sold 150 million worth of Industrial Air conditioners last year. He imports the parts for those air conditioners from all over the world. Hes frustrated, though, because his overseas parts are costing him more nearly every single day. His countrys currency, the turkish lira, in a steady decline since may and now down 30 . Aaron killis who runs a textile business is in the same boat. His most trusted work tool lately, an app on his phone which helps him monitor the lira. Every day we check the currencies. Going up. Two hours you come here it was 213 now 221. How often are you checking the currency . For the last month every hour. Every hour. That big an impact. The turkish lira got strong after Turkeys Central Bank held an emergency meeting late in the night and raised Interest Rates by as much as 5 percentage points. A huge move in a world accustomed to Central Banks moving by a quarter of a percent or half at most. The countrys finance minister appeared on National Television to say it wouldnt necessarily hurt the economy and it was important for the central bank to act independently. The hike in rates came despite pressure from the countrys Prime Minister who feels rising rates will hurt the economy before key elections in march. Today he blamed an International Conspiracy of bankers and the media for the countrys current financial troubles. Back at his textile plant, aaron killis doesnt want to blame anyone, he wants to get back to focusing on his business rather than the currency. Just the decision you have to make, buy, sell, just make investments. Every day you have to check it. Its your Business Investment. Reporter a Business Investment in a tenuous place at a tenuous time. For nightly Business Report, michelle carusocabrera, istanbul, turkey. Earlier we told you about boeings weaker forecast for the year ahead despite wrapping up a record year for aircraft deliveries and orders. Boeing was the biggest decliner in the dow today, falling more than 5 on that lower outlook. Accounting for about a quarter of the dows drop today. So why the stormy skies ahead for the aircraftmaker . Phil lebeau has our report. Reporter after a 2013 that went from very bad to very good, investors in boeing are wondering if the Aerospace Giant is losing altitude. Shares of boeing, which soared over the last 12 months, got clobbered when the company said 2014 earnings would come in 5 to 7 below analyst expectations. Why the difference . Boeing says its cash flow will be hit by greater taxes, a onetime signing bonus to members of the Machinist Union and other factors. Boeing may be cautious about its earnings this year, but its still expecting to deliver a Record Number of new planes. Leading the way, the 737. By mid year boeing will crank out 42 per month. Meanwhile, the company is still wrestling with challenges building the 787 dream liner at its plants in charleston, south carolina. As for boeings next plane, the 777 x, planning is under way for where that plane will be assembled. It will be in the seattle area following a new tenyear labor contract between the Machinist Union and boeing. Were exiting a period where every few years we had a dramatic event. And were entering a period of ten years of stability. Reporter keep in mind boeings backlog of orders stands at an alltime high of 441 billion, which means on some models airlines placing new orders may not be flying those planes until the end of the decade. Phil lebeau, nightly Business Report, chicago. Still ahead, president obama is creating a new way to save for retirement. How does it work and will it encourage more people to Start Building a nest egg . Facebook shares were on fire late today thanks to stunning quarterly results. Profits, revenues and the number of users all came in better than expected. The social networking giant earned 31 cents a share. That was 4 cents ahead of estimates. Revenue in the Fourth Quarter shot up 63 , topping forecasts as revenue from mobile advertising now accounts for more than half of total sales. A she will will rogers joins us now from the Nasdaq Exchange for more on facebook. Sheila, as you looked over all the numbers whats the one big takeaway you see in this report . Reporter the one key takeaway is that facebook has really figured out the seek republican set when it comes to monetizing social media, especially the mobile aspect of it. When Facebook First came on the scene a lot of questions how is it going to monetize its users. Advertisers really flocked to the platform would facebook be effective . This really seems to have thrown cold water on all those doubts. Facebook showing its at the forefront when it comes to digital advertising. Another thing a lot of people have been questioning is facebook losing its cool when it comes to users. In the past year facebook said it added 170 million users to the platform. Sheila, stay there. Theres a deal to talk about tonight. Chinas lenovo apparently buying googles motorola Handset Division for almost 3 billion. That unit makes the motox and g smart phones. Google bought the company not too long ago, in 2011 in fact for 12 billion, little more than that. That 12 billion is more than four times now the amount it is said to be selling the unit for. This is going to end googles move into hardware. Sheila, what do you make of this report and what has been the reaction in google stock early today . Reporter tyler, let me tell you. Shareholderers are really applauding the move. Google stock has climbed higher in the after the hours. Theres a lot of skepticism when they made the move. Investors are happy theyre going to focus on their core business. If there was one key take away from this, even Great Companies can make mistakes. Google kind of acknowledging its made a mistake by buying this business and now cutting its losses. Sheila, thank you very much. Reporting after the bell today, qualcomm whose snap dragon mobile chips are used by both apple and samsung in their smart phones. Qualcomm pulled in 1. 26 per share, 1. 26 in the first quarter. Their first fiscal quarter. A top line beat of 8 cents. Revenue was 10 higher than a year ago but still a little less than forecast. Shares of qualcomm popped initially on the report, but theres one thing that qualcomm is counting on for future growth. Josh lipton explains. Reporter if you use a smartphone from apple or samsung, then you rely on qualcomms technology. Its chips are the brains that make smartphones smart. The companys chips are in 70 of smartphones around the world. Analysts say its china that holds the key to qualcomms future. In the second half of the year, china mobile, the Worlds Largest carrier, will continue to roll out its new wireless 4 g network, a cell phone standard in which qualcomm is the cheerleader. So china mobile rolling out the networks this year and volumes ramping this year. Thats a new incremental growth driver to qualcomms business. Reporter the potential for qualcomm in china is huge. According to market researcher i. H. S. , the 4 g Smartphone Market in china is set for explosive 1500 growth this year. Analysts say qualcomm is wellpoised to capitalize on the opportunity. They have over 95 market share by units of the chips that go into lte handsets worldwide. So that maturity is going to be a differentiator for them. Reporter but there are also risks for qualcomm in china. Reports say regulators there are threatening the company with a 1 billion antitrust fine. The details arent clear, but he says it looks like the Chinese Government is trying to win concessions from qualcomm as it rolls out faster mobile networks. Lowcost tablets and smart phones made in china are also pressuring qualcomm. The competition is coming from Chinese Chip Companies such as rock chip and all winner. Mark sears with rbc is looking for a possible quote snowden effect. Companies doing business in china such as cisco has said that nsa revelations by Edward Snowden have spooked customers there. The question is whether qualcomm could suffer from antiamerican sentiment. Qualcomm is in negotiations with the Chinese Government over licensing fees over its technology and possible antitrust fines. The Company Offered no comment on the status of those talks. Josh lipton, nightly Business Report, silicon valley. Shares get a boost even though profits at the Health Care Industry plucked. Well point customers raced to use medical services before policies were canceled at the end of 2013, which is why profits fell. But the company gave an optimistic enrollment outlook saying it expects applicants in the Affordable Care act plan will be in the age and demographic range that it anticipated. Well point shares rose more than 1 to 85. 37. Shares of dow chemical surged and thats thanks to good earnings. On top of that news that the company is hiking its dividend and tripling its Share Buy Back program. Dow was recently targeted by activist investor dan loge of third point capital. Hes been urging the company to spin off its petrochemical unit. Shares jumped almost 4 to 44. 73. Earnings at Jetblue Airway saturday on improved passenger traffic and stronger revenue. But recent bad weather and Flight Cancellations prompted the airline to slash its revenue outlook for this quarter. That worried investors and sent shares down almost 3 to 8. 50 even. And shares of the auction house sothebys which trade under bid were lower today. The climb came despite news that bid will return more than 450 million to shareholders through a special dividend and buy back program. Investors put the paddles down nonetheless. The stock was off slightly to 48. 74. Moving from stocks to big news in the world of fixed income. Pemco the Worlds Largest bond fund manager has to fill some big shoes ahead of the announced departure of their ceo. Bill growth appointed four new deputy chief investment officers to help replace him. But growth still doesnt appear to know where his highprofile colleague is headed next. All we know is that he does have a new job. He said that if one develops it wont be in the financial industry. So thats an important consideration. So wall street and the city can breathe easier, i guess. Where do we think it will wind up in 2015 and beyond . Well, certainly somewhere i think at elevated circles of influence. Olarian is scheduled to leave pemco in mid march. The house bassed that bipartisan 1 trillion farm bill today. It is the First Comprehensive legislation covering everything from federal assistance for farmers to Crop Insurance to food stamps since 2008. The measure now heads to the senate where a vote is expected as early as next week. A lot of talk and curiosity today about president obamas proposal for a new simpler way for americans to save for retirement in his stateoftheunion address last night, the president announced a Retirement Savings plan that he called my r. A. Sharon epperson explains how it works. Reporter on a visit to western pennsylvania steel plant, president obama today signed an executive order creating in new plan designed to give those with no Retirement Savings and no workplace Retirement Plan a place to start. The president first announced program called my r. A. In his stateoftheunion speech. And today he hit the road to promote it. Those of you who dont have a 401 k on the job, dont have a pension on the job, dont have a mechanism to start saving especially younger workers, you can get started now. And in an emergency you can withdraw contributions without paying a penalty. So its a pretty good deal. Reporter as long as your 2014 income is less than 129,000, 191,000 for married couples, you can contribute to a my r. A. It will work like a roth i. R. A. Earnings and contributions grow tax free. You can withdraw contributions tax free, too. For savers worried about the volatility in the financial market, the money you put into a my r. A. , your principal is protected, guaranteed by the u. S. Government. And invested in the government Securities Investment fund, which is currently available to federal workers. You can open a my r. A. Through your employer with as little as 25. Once your balance reaches 15,000, you can roll it over into a privately managed i. R. A. 25 here isnt going to make or break someones retirement account but it will start the ball rolling early on and encourage healthy savings habits. Reporter some say it would be more effective paired with automatic savings options. The big is how Many Employers will want to offer the my r. A. This is a good idea if its paired with some other policy proposals that are out there that make it more attractive for employers to offer Retirement Savings plans. And we do have to Pay Attention to what employers need. Reporter the Treasury Department says a pilot my r. A. Program will launch with an initial set of companies by the end of the year. And will later be offered to more workers through their employers. For nightly Business Report, im sharon epperson. Coming up as football fans converge on the new york city region for the super bowl, many homeowners are finding ways to cash in on the big game. And finally tonight, just four days to go until the super bowl at met life stadium in new jersey. Its the first time the big game is being played outdoors in a cold weather state, but some local homeowners are warming up to the idea of renting out their houses to fans headed to the game. Dominic chu has our story. Reporter new york and new jersey homeowners are hoping to cash in on the super bowl in the garden state. An increasing number of homeowners are offering to rent out their homes and apartments on web sites like home away and air b and b to football fans planning a trip to the big game. Many people feel opportunistically they can make some money during that period. Reporter homeowner peter tishy is charging 1,000 per night to rent his home. Thats 600 more than what he usually charges. The hotels and the hotels are going to be completely booked in this area. People just want to stay close to the stadium. And my house i believe is located perfect location. Reporter home away says theyre seeing a 221 increase in home rentals in the region during the super bowl period. Hotel prices have really gone through the roof for that small window of time. And so you see the same thing happening with home rental prices as well. Reporter this sixbedroom super bowl vacation dream home complete with a personal chef is going for 119,500 per week. Tickets to the game not included. Trip adviser estimates that fans staying in hotels within ten miles of the stadium can expect to pay more than 400 per night, that is if they can still find a room. A typical three or fourbedroom house might sleep up to six people. People also have a kitchen so they can save money on food. But nighttime instead of being distributed in a Different Hotel rooms they have a place that they can gather. Reporter factors like that make renting a house an appealing option for many, especially for those traveling in groups. For nightly Business Report, im dominic chu. Got to get the tickets. Yeah. Got to get the tickets. Thats nightly Business Report for tonight. Im susie gharib. Thanks for joining us. And im tyler mathisen. Thanks from me as well. Have a great evening, everybody. Well hope to see you back here tomorrow night. Nightly Business Report has been brought to you in part by the street. Com. Found by jim cramer, the street. Com is an independent source for stock market analysis. Cramers action alerts plus service is home to his multimillion dollar portfolio. You can learn more at the street. Com nbr. Hello, welcome to this is us. Im Becca King Reid on top of Mount Hamilton at the observatory. Were going to take you inside and give you a look at a telescope built here in the 19th everyone isry. Of course, a von is hers are still up here studying the heavens and well show you the newer telescopes as well and you will meet the founder of word press, who turned down a fortune to save an idea and dr. Jill tarter, founder of seti, the search for extra terrestrial intelligence and greg chin, a star who has risen, faded and is back on track. It all