Store sales were better than forecast. 1. 1 on the s p and 1. 3 on the dow jones and 1. 6 on nasdaq. Street smart starts now. Welcome to the most important hour of the session. We are 59 minutes away from the closing bell and a big selloff on the way. We will talk about all this, a lot of concern on the International Front regarding china and its economy. We will get into that momentarily. Coming up, targets biggest hack in history as bloomberg does this week investigates and finds it all could have been avoided. We will talk to a white house chief Information Officer about the breach. Jetblue is selling the technology to put on the map. The Airline Financial officers coming up. There is a lot to pick from today. Big declines the market with Technology Leading declines. Take a look at facebook. This is emblematic of what is going on. Rolling outfinally with its video ads, its 15 second video ads it has introduced, and yet the shares are down along with the market. Despite what is seemingly good news, shares are still down and that is reflective of what we see in the market abroad. Concerns about ukraine, china, etc. We see a lot of oil related stocks fall today. Had a note out from i sa from isi downgrading some of the oil rig companies, saying deepwater and ultradeep water rig demand will be weaker than the market anticipates and the rate environment for these rigs will be weaker than anticipated as well. Dollar general falling today, coming out with earnings that as strongly as analysts anticipated and the company is still worried about the coming quarter. Thata lot of companies cater to lower Income Customers have been suffering as their customers suffer. Consumerk check discretionary and industrials taking it on the chin. We want to move on to the big story at this hour. We are keeping an eye on target an easy target. One third of americans had their credit card information stolen the target hack. There was an sensitive investigation on exactly how this happened and asked whether target could have done more to stop it here is a look at how it all happened from Bloomberg Businessweek. The first time the public heard the target had been hacked was on december 18 when a blogger revealed the company was being investigated for a massive breach. But the breach began sometime before then. What did target know and when did they know it . Hackers began capturing credit card data on november 27. Later, as sophisticated tool spotted the malware. 1. 6 Million Dollars for the software because of its ability to detect hacking in realtime. Soon, a security worker in india saw the alarm and send it to the minneapolis operation center. The alert is overlooked. On december 2, security tools detect another version of the malware. This also goes undetected. Had target acted on the alerts, they would not have been able to prevent one of the they would have been able to prevent one of the biggest data sets in history. Instead, hackers collected credit card information and bounced around to places like moscow. Then federal Law Enforcement but target know they are seeing suspicious activity at their stores. 15 him a target confirms it has been hacked and remove the malware. Target issues its first Public Statement on december 19, revealing up to 40 million cards may have been compromised. January 10,r, on target notifies customers that personal information for up to 70 million customers has also been stolen, effecting as many as one third of american consumers. Joining me now to talk about the implications for u. S. Retailers and the largest ever data breach. Table. A round including a former white house chief information advisor. This really amazing to think it could have been easily prevented. The software itself could have actually stopped the intruders in their tracks will stop guest. What is amazing is you start off thinking it is a mystery. We dont know what happened and then you realize when you start eating into it and parking and talking to security folks, all of the people around the investigation, the data was out there it was human error, basically. They turned off the switch that would have allowed for the automatic firewall and of this. Yes. They have this product that could have deleted the malware without any intervention. See a big company, i would why you want your team to make the final decision, but you have to be able to depend on that team to catch it. Where the human failure was. It escalated from india up to the Security Operations center in minneapolis and we dont know exactly why, but we know it did not get the attention it needed to. Then all the credit card numbers got out. And it had a big effect on the company. Company sales thereafter, logically as a customer you think twice about going to target these days. And thehat reflected company fell down 46 from the year before. What is going to be the overall toll this takes on target . As an analyst, i see the toll on to front. From a Consumer Perception standpoint, we have seen reductions in traffic to the store and once someone stops going to the store, it is hard to capture them back. Habit andut of the its not that target lacks for competition. You see amazon making greater and greater inroads. Second, this could cost target a lot of money. Their most recent Conference Call that the dollars involved and this is their term they are not estimable. That doesnt mean a low number. That means they wont know for a long time and that could constrain them in lots of ways their Share Buyback which is important for the stock and investing in needed activities. I think they have been under investing in a lot of segments in their business, including security and personnel. One of the things i keep coming back to, and this story pointed out, they had the ability to notify customers earlier and they didnt. This was in the first time this happened at target. It happened a couple of years ago as well. Shouldnt a company have a duty to tell its customers . If youre credit card information has been taken, where is the Consumer Protection bureau . You are right will stop you are right. The lag time not only with the tool setting off alarms and the employees were not following up on the alarms in the minneapolis center, but the time to notify. Times, in defense of businesses, when they find out they have a breach, and they found out from an external source, they are trying to figure out what happened before they notify the public because its tough to say to customers we had a breach and we dont know much else. At the same time, if they had gone through the tools, they had two sets of tools warning them they had a problem. They would have seen when the problem occurred. Also happened at neiman marcus. They had a Security Breach around the same time. It could probably happen to anyone who is not vigilant and going through the process of making sure everything is as it should be. This is fascinating. What thes thieves actually do with the credit card information. A lot of this is originating out of eastern europe. Ellis what happens to our credit card numbers once they are stolen. Us what happens to our credit card numbers once they are stolen. In thisbasically end up vast underground. There are all of these websites we visited with a former lawenforcement guy who runs his own Digital Forensic company. He took us on to one of these sites. If i wanted to go on, i could buy a credit card and go and buy something. Or you can buy thousands and thousands of credit cards. Does it cost . When i was looking at the pages, they are around 12 for a regular credit card. You should see the list of the different kinds of cards. To amexfrom a gift card blue for business. It is really user friendly and you can really pick and choose. In other words, this is big business. It is and its very easy to monetize. How much money did it cost these people to break into target and how much money can they make selling these cards . I think you can make a lot of money and its hard to catch them. What is the solution to all of us . System id a pin card quit you see in europe . Chip and pin is a great first step. Cyber criminals go where the action is. Right now, theyve got easy pickings with our current credit card system, but as we move to chip and pin and theres greater volume, they will find ways around it. In addition to that great next step, one thing businesses must do is change the conversation and say when we are breached, not if, how quickly will we respond . Which means they need to be practicing a digital disaster. It would have been great if october, practice an event like this so that when it happened they would go into autopilot and be ready. Thisy be the one thing teaches every business is that they need to be doing that and investing more in security because Something Like this can wipe you out and they are going to have many lawsuits to come over the next several years along with a lot of customers they will have to win back. Thank you. Terrific reporting. Lets take a quick look at the markets because we are looking at an intraday low. Off 25 points, loss of 1. 3 . Concernsdownside amid about china and concern over ukraine and what that vote is going to look like on the 16th. Plenty of red to go around in the markets right now. Coming up, the search for a missing malaysian jet continues. Why havent investigators been able to find it . We will have more on the aircraft tracking technology when we return. Investigators are still searching for a missing malaysian plane that dissipated disappeared from radar scenes. It disappeared as it went north to vietnam. It is raising questions about partnerwhy the trance the transponder shut off. Is a professor of aeronautics and astronautics and is the director of the center for air transportation. What do you think happened . The reports are correct at had point, the airplane their transponder shut off or the transponder starts stop broadcasting. Reports that there is a tract of an airplane going west through malaysia. Mean and im just theorizing here, could the plane still be out there somewhere and maybe have landed in another country . Could it have been hijacked . Is that a possible scenario . It is clearly one of the scenarios under consideration. Technical reason why you would lose the transponder and get a sudden change in course, so that looks like an intentional action. Ancould be a hijack or intentional act on the part of the crew for some reason. The airplane had enough gas to is3000 more miles, so there a huge area the airplane could be in. Wouldnt we have found the black box by now . We would be able to find a black box if we knew where to look. The area that it could be is so enormous that right now, although nowhere to concentrate their search area. Just reportede that there is a concentration and they are searching heavily in the indian ocean because theyre summoned the the medication people think it is in the indian ocean. What is your gut feeling, if you have one at this point . It has been a number of days now. What do you think might have transpired . We have been all over the place because the data coming out of malaysia has been so sketchy. It is starting to coalesce, so it does appear we dont know for sure even if it was that airplane, but we hypothesize that itit does appear we dow for sure even if it was that airplane, but we hypothesize a loss of 1. 4 , being led lower by industrials, which are down along with the along with consumer discretionary. Utilities the only bright spot as people seek safety today amid concerns about the chinese economy. Coming up, we are talking about the ukraine. The money is going to come at a price. If you have been on other airlines, you hope that no more than three or four people are using it. It going to cost something . Cfo . U are asking the yes. This is a business network, you have investors watching, are you going to make money . Thats absolutely right. Of install it and we. Ave airbus aircraft clearly by the end of the year, if not sooner. Beta in june, the basic features of emailing and shopping are free. Will make, i think we our hearts go out to it. G ive never seen anything like this. There are a lot of different theories out there, one being that this plane might have been. Ijacked do you think that is something authorities should be looking at carefully . Im sure they are looking at everything. Im sure multiple jurisdictions are looking at everything. Wont know until we know. It is easy to speculate. We all do it. I dont know. That theare reports copilot allowed women to come into the cockpit at various times. Let me ask you about International Standards for safety. I was on an air France Flight several years ago and the cockpit door was wide open and i thought wow is there a different standard on the International Front for some of these International Airlines and for a u. S. Airline and is that something we should be concerned about . Concerned, i dont know. I have been in the Airline Business more years than i would like to imagine. I hope we have converged to a really high level of safety. Im certain there are some airlines out there that dont do that and clearly, when im buying an international flight, that goes into my selection. We will continue to watch that situation. Congratulations on the deal and i look forward to be able to surf online when i am on a flight. Thank you so much. Thank you. What took the company so long . We are talking about General Motors waiting 10 years to recall faulty cars. Find out what they are trying to do to minimize the crisis. New york city renters rejoice we will tell you why manhattan landlords are laying off your rent. Also have more on the steep selloff as we look at the lows of the session. One. 25 and the Dow Jones Industrial average industrial average getting hurt, more than 200. We will be back right after this. I will tell you that the gm is in damage control mode. The carmaker is recalling 1. 6 million cars with faulty ignition switches. The problem has been linked to at least 12 deaths will stop what makes it even worse is that gm was aware of this problem for a decade or more. Gm now facing multiple federal investigations and wrongful death lawsuits. Take so long for gm to do something about it . Why did it take more than a decade . Joining me now is an auto analyst with our glaze and the Deputy Editor of an autoblog alopnik. You say it has been 15 years they have been sitting on this . It was around 2001. Apparently in a preproduction prototype, they discovered the same fault and nothing was done. Unbelievable. These are peoples lives. Not beld the company more forthcoming . I guess there are obvious reasons, but just look at target. At the end of the day, its going to cost them more. You dont understand why gm nt do anything and says or has been no real recall and there are a lot of questions on this. Brian me go over to johnson, an analyst at barclays who covers the company. Happens now for gm . They are in damage control mode and trying to backpedal. But at the end of the day, there were lives that were taken it seems as a result of this faulty ignition switch. How do they recover from that . There are a couple of things first, the cost of the words he repairs and recall campaign probably is not the biggest of the cost of the second, they have to deal with the claims bar coming after them trying to reopen part of the bankruptcy to go after them. That may not go very far but if you look at toyota, there was a settlement crafted with the plaintive lawyers. Third, whatever the government does as far as fines, the stock, if you put a few billion dollars in the price tag on that, its more reflective than the last few days. The credibility of the company, thats where i would expecte the if the company knew something they could result in someones death. Why wouldnt they come out earlier with this . There is a case of not checking the documents. They knew the ignition switch did not quite stick in the on position and that was a problem. It doesnt seem like they to thatd the dots accident until sometime later. I have heard this one before bureaucracy. You look at what happened with target and peoples credit cards information and it was stolen and at the end of the day, it comes down to people not really doing their jobs and using the Security Software that they had. Too much bureaucracy and at the same time, we are talking about gm trying to handle it situation , now in damage control mode because of bureaucracy. Are Companies Going to get nimble enough so they are preventing these problems ahead of time . Hope lee now, with mary in charge, she has from it to do a full investigation. Any she has not done interviews on this so far. I would like to see her out in front a little more than she has been. This is incredibly important because while this didnt happen under her watch, now having to deal with the aftermath of it. Exactly. It could make or break her career. Asit is a fighting moment ceo to have this thrown in your lap a few months after you take over. How she handles this will probably divide the rest of the time she works at gm. Thank you very much. Coming up, im on the hunt for a new apartment. Is it time to buy or rent . New York Real Estate insider Jonathan Miller will help me and all of you next. We will get an overview of the new york City Real Estate market after this. Manhattan apartment bowlers can breathe a sigh of relief after two years of increases, the median rent fell in a month of february according to a report out today. Here with us to break it down is the author of the report, a top new york city appraiser and president and ceo of miller samuel. Finally rent is going down. Lex i would not get too excited. Is is that they are not going up. Rents have somewhat stabilized. Yearoveryear numbers are starting to show a decline. Is that rents in brooklyn versus manhattan, there is the lowest differential between the two markets based on median rent 210 between the median rent for brooklyn and manhattan. In other words, your not saving much money moving to brooklyn. Move over theonal last co