Friday, march 28th. Good evening, everybody. Im sue herera filling in for susie gharib. And im tyler mathisen. Welcome, everybody. It is not over yet, but the month of march and the First Quarter of the year are just about history. And so far, wall streets performance has been about as welcome as this winters weather with the major averages swinging up and down like the temperatures but ending pretty much flat for the quarter. And its not just here. That same halting performance has been seen in markets all over the globe. So what trends outperformed in the First Quarter of this year, which didnt, and what lies ahead for the Second Quarter kicking off on tuesday . Bob pisani takes a look from the new york stock exchange. Reporter it will be a choppy end to a choppy quarter. Last years First Quarter everything was up 10 . This quarter will produce real winners and losers, what traders call a stock tickers market. Lets look overseas first. Many traders who were buying japanese stocks like crazy last year suddenly got clobbered this quarter. Stocks had been rising there on a weak yen and japanese stimulus program. But effects of that boost has now faded. China started off very weak but has been rallying recently. The problem with china is that their growth appears to be slowing down. Now, here in the u. S. , gold mining stocks which were among the worst performers last year were very big gainers as were Airline Stocks, which rose on higher profits and on reduced capacity. But the most discussed change in the market came from new techs and social media stocks, high flyers. For example, groupon, twitter, amazon, linked in and even netflix, all of which started the year very strong, drooped in the second half of the quarter as traders became more concerned with valuations. Well start earnings season for the First Quarter in just two weeks. The kpexpectations are not very high because many companies, particularly retailers, cut their earnings forecast due to the brutally cold winter. But theres considerable hope that activity will pick up now that the weather is finally starting to improve. For nightly Business Report, im bob pisani at the new york stock exchange. Joining us now to talk more about the markets and his Second Quarter expectations is russ kestrich, global chief Investment Strategy with black rock. Russ, good to have you back. Welcome again. Thanks for having me. I want to get to one of the risks that youre concerned about in the Second Quarter of this year. And that is geopolitical instability. And within just the past few minutes weve gotten word that president obama and russias president putin have had a conversation where actually mr. Putin called mr. Obama trying to work out a quote diplomatic resolution to the crisis in ukraine. What would a quote diplomatic resolution of this instability in that part of the world mean to the market, and what would happen if things heat up rather than cool down . Well, i think right now the risks are to the down side in terms of things heating up. A solution from the markets perspective means that this gets taken off the table. This is not something investors have to worry about, either in escalation of violence or an escalation of sanctions that really materially impacts the economy. The risk is not so much that things are going to blow up or get out of control in the ukraine. The problem is more that theres very little bad news discounted into the market. Youve got volatility, well below the long term average. It means if you do get an unpleasant shock, thats something investors are not prepared for. What about if it green lights the market if they do reach some sort of diplomatic resolution . Well, im not sure thats going to produce a rally. Because again i dont think the markets expecting a particularly bad scenario right now. Instead i think really what you need to get a catalyst for a leg up in the market is less about the international situation, less about the ukraine. Its closer to home. As we get into the First Quarter earnings season, do we see positive guidance . Do we see an improvement in the economy . Do we see better earnings . That to me is the necessary ingredient less so whats happening in the ukraine. Russ, one of the stories of this First Quarter has been the sort of rotation away from what weve been calling the momentum stocks, which are stocks basically that go up because they were going up. And a move toward more value, i guess, in the market. Do you expect that trend to continue in the Second Quarter . I think it will. I think this is a really important point. Because the fact that the markets been in trading range the last few weeks and really the whole quarter obscures the fact there are large rotations going on. Weve seen a movement out of the glamour stocks into growth and value, more recently seen a move out of small cap into large and megacap. They reflect the same underlying trend. In a world where most of the mainly Asset Classes are close to fair value, investors are looking for bargains. I think what youre seeing now is a rotation into parts of the market where investors see some relative value, in my opinion thats likely to continue. Do you go more for the large caps and leave the mid caps and small caps behind this year . I think that investors do have a modest tilt to the large and the megacap names. A couple of reasons for that, sue. First of all, they are cheaper. Theyre much cheaper. But second of all, if you see whats likely to happen on the monetary side, if we do see a creep higher in rates, particularly real or inflationadjusted rates, that is probably a bigger headwind for small and mid cap names which tend to experience more multiple compression when real rates rise than large and megacap names. So i think the Larger Companies are likely to be more resilient if we do see rates rise. Russ, always great to see you. Thanks for being with us. Thanks, tyler. Russ kostrich for black rock. It was a volatile friday to wrap up a volatile week on wall street. Stocks soared higher earlier in the session before ending the session with only modest gains. Good Economic Data helped of course with personal income and personal spending both rising. 3 in february. Despite all that cold and snowy weather at the start of the month. On wall street, the dow was up as much as 150 points shortly after the open, ended 58 points higher, and higher for the week as well. The nasdaq added 4, but ended its worst week in a year and a half after a selloff nint net and biotech stocks. The s p today adding 8 and it was pretty much flat for the week. A solid debut for cvs outdoor americas, thats the billboard giant spun off from broadcaster cbs. It began trading for the first time today. Shares moved higher right out of the blocks, surging more than 5 for the session as a whole. Morgan brennan now on why this socalled old media form of advertising is now attracting a lot of new money. Reporter ever wonder whos responsible for those billboards on the highway . Theyre called out of home Media Companies. They own and operate billboards, airport signs, subway and bus station posters, even those neon displays you see in times square. Theyre considered old Media Companies, and today one of the industrys biggest debuted on the stock exchange. Called cbs outdoor americas, the new company was spun off by its namesake, cbs corporation. The broadcast giant spinning off its Outdoor Advertising business to focus more heavily on content. The idea of splitting off the outdoor division, it was a positive for the Outdoor Group plus a positive for cbs. Because it gives us more cash and more ability to continue to expand in the content business. Reporter but cbs outdoor has amassed quite the display empire. The company counts 330,000 displays across the u. S. And another 26,200 in canada and latin america. And those numbers are likely to grow. For the industry, spending on outdoor ads grew more than 4 last year. Thats why analysts say its a good time for the socalled old media stock to go public. Outdoor economy has picked up a little bit. So youve got a positive move in the stock price. But cbs is not going to stay in the outdoor business. Theyre still an investor. But their core business remains entertainment. Reporter so far investors seem to agree. Cbs outdoor stock surging 5 in its first day of trading. A big difference between this tried and true business and the socalled new Media Companies that have been garnering most of the attention on wall street. Compare that to king digital, the maker of popular mobile game candy crush saga gachlt when that company went public early this week it dropped 15 on its first day. Advertisers still only spend about 5 of their ad budgets outside. And with a growing popularity of platforms like mobile, its only going to become more challenging to attract those ad dollars. For nightly Business Report, im Morgan Brennan on the sunset strip in west hollywood. Two blue chip dow components are going to battle. Walmart is suing visa for 5 billion. The Worlds Largest retailer alleging the payments giant is charming unreasonably high fees on purchases that walmarts shoppers make with their credit and debit cards. Mary thompson has more. Reporter its an expensive charge in a suit filed in arkansas, walmart claims visa illegally inflated swipe fees on credit card payments from 2004 through 2012. Walmart is seeking 5 billion in damages. I think theyre trying to get attention. Reporter the suit is the latest chapter that long running dispute between the nations retailers and visa and its rival master card. For years the retailers, including walmart who pays a lower negotiated rate, maintained the two firms violating antitrust rules by overcharging retailers. In its court filing, walmart claims visa has engaged in a conspiracy with some of the nations largest banks to illegally fix the interchange fees and inflate the network fees that walmart and other merchants pay on visa charge card transactions. Walmart declined to comment on the suit as did visa. Though it wasnt totally unexpected. Walmart is one of 35 big retailers that opted out of an earlier 5. 7 billion settlement with visa and master card. The retailers saying the swipe fee settlement wasnt tough enough and wouldnt prevent visa and master card from increasing swipe fees in the future. Among those filing separate antitrust suits against visa and master card, macys, target, office depot and 15 others. Walmart declined to say fit plans to file a film suit against master card, but analyst david darst whose firm is seeking Investment Banking business from visa, says retailers are protected. Under the share structure, any litigation costs above and beyond reserves visa already set aside will be borne by the 22 billion worth of Class B Shares held by banks like jb morgan that used to own visa. The largest banks and credit card issuing banks will be the ones that actually bear the cost via their investment in visa. Reporter for nightly Business Report, im mary thompson. Coming up, Airline Stocks have been flying high, and theres one regional carrier that many are calling the new darling of wall street. See if you can guess which one. The government is demanding at least 1 billion from drugmakers for delaying generics. The federal trade commission is seeking at least that much from Big Pharmaceutical Companies which allegedly took steps to impede the sale of cheaper Generic Medicines after the patents on highpriced brand name drugs had expired. The Drug Companies being sued include salve, activus, previously watson pharmaceuticals, pataglads, and cefalon owned by teva. Another blow to pimco, the Worlds Largest bond fund which is still reeling from corporate defections over allegations of a hostile work environment. Pimcos total return fund may not be returning very much these days. The flagship portfolio is trailing 87 of its peers so far this year. That according to morningstar. Different story at the nations big airlines, sue. Among the companies that have been top performers so far this year, especially Alaska Airlines with shares up 24 since december. Alaska air, which is breaking out of its niche of flying only in the western u. S. , may be about to soar even higher. Phil lebeau has more. Reporter with the eskimo on the tail, Alaska Airlines stands out on the tarmac. And increasingly among flyers looking for a new way to the western u. S. I think they are efficient, friendly, and they do a pretty good job. From my experience this time, i like them better. Other airlines. Reporter from its hub in seattle, alaska is rapidly expanding, adding flights to five new cities, including baltimore and tampa. This latest move today is really just about strengthening our hub in seattle and sort of playing to our strengths here. Reporter because its smaller than other airlines, alaska has been willing to try new ideas for customer service. Like boarding passengers from the front and back of the plane. Next month passengers will be able to print out bag tags at home so theyll spend less time waiting to check luggage at the airport. Alaskas also testing an app telling you wait times at security before you get in line. I have four choices, literally right this moment at the seattle airport. Which one is the fastest . Oh, the fastest one is the one down here. I am very happy to walk down there to get the faster line. Reporter as alaska gets bigger, its also facing stiffer competition. Delta is expanding in seattle, and other carriers are adding flights along the pacific coast. Alaskas very much a west coast airline. While they have added flights from seattle and a few other places to the east coast, ultimately it ends up touching either in seattle or portland. And theyve got to figure out what to do. Theyre really hemmed in. Reporter despite potential headwind, alaska is proof airlines have room to soar even higher. Phil lebeau, nightly Business Report, seattle. Blackberry posts a smaller than expected loss, and thats where we begin tonights market focus. Costcutting helped the struggling smartphonemakers Fourth Quarter results but sales still missed estimates. The company has lost a stunning 5. 9 billion for its fiscal year. But ceo says a turn around is in sight. We need to build up the capability, both in engineering and marketing as well as in the sales force. But were going to be very moderate. Everything we talk about being able to be cash flow positive by the end of the year, fiscal year, and being profitable the next fiscal year in some quarters, its still right on. Reporter nonetheless, shares fell 7 to 8. 41. Finish lines Quarterly Earnings rose 25 on stronger samestore sales. The athletic gear retailer said demand for basketball shoes helped make up for a slow down in sales of run sneakers. Despite the increase, revenue came in short of estimates. Still, shares were up 2 to 27. 05. Massachusetts is blocking the sale of zojenixs controversial but fda approved painkiller zohydro. The state declared a Public Health emergency that stems from the abuse of opioids. The drugmaker criticized the move saying it unfairly restrict access to an approved drug. Shares tumbled on the news. An upgrade lifted the shares of cognizent tech. Morgan stanley raised from overweight to equal weight. Shares were up 4. 5 today to 46. 69. Our market monitor says individual Stock Selection is a much more significant factor in Portfolio Performance this year than it was in 2013 when virtually every stock in the s p 500 and the dow went up. Hes jordan posner with matrix asset advisers. Welcome, jordan, nice to have you here. So what type of stocks do you find still have value . Weve talked earlier to russ kostrich. He said theyre favoring the larger cap stocks. Does that fit in with your portfolio selection . Well, were a large cap stock manager. So were always looking for stocks within the large cap sector. Whats interesting is that what were finding most attractive are stocks in the financials, the industrials and the energy sectors. And thats because were expecting that the general Economic Activity in the u. S. And actually worldwide will improve throughout the year. And these three sectors should have pretty good participation in that recovery, and the stocks we think in those sectors are pretty cheap. You know, jordan, its been a kind of choppy First Quarter of the year which ends on monday. Is that the kind of performance volatility weve been accustomed to for the remainder of the year . We expect for the year youll probably see something in terms of total return, dividends plus appreciation, in the range of 8 to 10 , which is kind of a normal historical range. But we do think that therell be volatility throughout the year. We would expect there to be some type of correction perhaps as much of a 10 correction at some point during the course of the year. And thats typically generated by some kind of unforeseen macro event. We would prefer to use the dips down, the downward volatility, as an opportunity to buy stocks that we think are attractive, and wouldnt necessarily chase rallies to increase in asset allocati allocation. In the health care sector, helogic, why . Were looking at companies that have the ability to improve their business internally not just sell more wingetmore widge it were. The ceo has brought in excellent operators. The businesses are real franchises. Leader in mammogra