Street. Stocks plunged, the market turned icy at least for a day. Dow and s p 500 had the worst day since the brexit vote aftermath at the end of june. The reason today, a fed official hinted an Interest Rate hike is not far off. Thats not necessarily a bad thing. It suggests the Federal Reserve thinks the economy is getting Strong Enough to shrug off a rate increase, but it did spook investors who have become accustomed to easy money policies and spooked them doubly because the fed official that spoke is normally in the easy money camp. Here are closing numbers for a bruising friday. Dowjones industrial average tumbled 394 points to 18,085. All of the major indexes fell more than 2 for the week. Biggest weekly drop for the dow since first week of the year. Reporter it is about time. By summer dole drum standards, its a lopg period of volatility. It was two months ago. The feds Eric Rosengren reminded everyone markets arent positioned for a rate hike in september and he made a case it could happen. Now you see a scramble. Traders sell Interest Rate sensitive stocks. Utilities and telecom and Home Building stock down today. Second, you buy financials like Insurance Companies and banks which benefit from higher rates and have already been rising going into events today. Third, you bid up the dollar which hurts commodities and commodities stocks like steel and iron ore. Copper down 3 . So who will win . Main street is not a fan of down days like today obviously but it is great news for the professional trading community. Wall street has been miserable all summer because trading volumes have been awful. This kind of activity and volume is a godsend to them. The problem is this. If the fed does nothing in september, all of this gets unwound again. We go back to where we were a few days ago. Whats going to happen . Will the Federal Reserve do anything . Are they going to raise Interest Rates . The fed is data dependent. Data hasnt been that good recently so you dont hike. Yet rosengren and friends seem to really, really want to hike rates. Whats going on . It may be that the fed is not worried about data, that theyre more worried about losing credibility if they do nothing. So we are in a hole. All we can do is maintain a heightened state of alert until september 21st said meeting. Bob pasani at the New York Stock Exchange. While the feds Eric Rosengren thinks a hike can be near, not everybody agrees. Daniel tarullo says he needs to see more ee the economy is ready. Steve liesman spoke to him. Reporter in this exclusive interview, he says he has substantial questions about the economy,g some pause of raising rates. I have been characterized of being in the show me camp, i would like more tangible evidence of inflation given background context of unemployment continuing to increase without Unemployment Rate going down. The fact we are not running a hot economy. The fact we dont have as many tools to respond to a potential recession as we would if growth were to pick up. Reporter tarullo wouldnt say there would be a hike. He said a rate hike is possible. It raised questions about the economy momentum. Several officials suggest that a hike remains on the table but recent economic reports have market believing it is unlikely this month. Tarullos comment supports that skeptical view. Steve liesman in washington. In that same interview, fed governor tarullo said bank behavior hasnt changed enough since the 2008 crisis, referring to the fine wells fargo paid for opening unauthorizedac some we reported on last night. At least one analyst says wells fargo has a lot of work to do to win ba its reputation. Reporter one day after wells fargo was hit with a 185 million fine for opening as many as 2 million deposit and credit accounts witho customers knowledge, job one is winning back trust of the estimated 40 million customers. Thats according to a leading wall street analyst who today downgraded the bank stock. I think wells fargo to right consumers. H it has to show in some fashion that it believes in its customers, it wants its customers, and it is going to help its customers by giving them something to offset what theyve done here. Reporter the bank says it already refunded 2. 6 million to customers, averaging 25 per account. And 5300 employees fired over a fiveyear period. If so, work force is closer to 270,000. Government regulation had only fine and no indication of wrongdoing. A top official says individuals should be also held accountable. Theres a need for focus on individuals as well as the fines put on institutions. Inappropriate cases. I think fines for individuals, prohibition orders, obviously much higher standard, but for Justice Department prosecutions are things that need to be pursued. Rr on wall street, some analysts are questioning if revenues from fake accounts may have helped them post better returns than some rivals. When wells fargo made these presentations to analysts about the number of accounts it was opening, about the cross selling ratio it was giving. If all of those numbers were incorrect, if revenue was seeping into the numbers, theres real questions about numbers of wells fargo itself. Reporter in washington, theres bipartisan criticism of the settlement. A leading republican says it is another example of Big Government propping up a mega bank at the expense of community bank, while a leading democrat sees echos of the foreclosure crisis. For nightly Business Report, Hampton Pearson in washington. In the face of wells fargo secretly opening millions of unauthorized dep or credit card accounts, what do you need to know to protect yourself . Joe rideout is a spokesperson for consumer action and joins us now. Joe, nice u here. Thanks for having me on. Up selling, cross selling, however you want to call it is a common practice in banking. Wells fargo obviously took that too far, but what are red flags consumers should look for to alert them to the fact that perhaps theyre falling victim to this . For one, check your Credit Report as everybody should do. This is a reminder checking that Credit Report can determine whether or not there may be a new credit card or other loan in your name you may not have solicited. People with credit cards opened by employees would likely find out on the Credit Reports. The problem is for the consumers with Credit Reports opened in their name, it may push down their credit score due to extra inquiry in the report. This may be the difference between those consumers getting best available rate or less advantageous car loan or mortgage. For those consumers, they face damages more than the 25 bucks wells fargo expects to pay. They were apparently opening different kinds of accounts, includin checking and savings accounts for customers. Wouldnt you know from different or altered statements that they had done Something Like that . Thats question one. Question two is do you suspect other banks are doing similar things that might be not necessarily illegal but pushing the bounds of propriety . Well, thats a good question. Theres a lot thats going to come out of it hopefully. The bank was not sending statements for extra accounts, which is probably the case more often than not, the consumer may not know about this. If you checked the specialty report, a Check Systems report, you may find evidence of extra accounts being opened, but very few people do that. As far as other banks doing it, i am not sure. Wells fargo has been more aggressive than any bank trying to upsell customers. They would upsell people ironically wit a product, Identity Theft protection service, expensive and almost worthless. It wouldnt have prevented any of these accounts being opened. You can barely take 40 bucks out of the atm without being upsold extra products and services you want. Theyre known for being aggressive. What about the arbitration clause that is in wells fargo and also common not only in the Banking Industry but in other industries where you cant take them to court, you have to arbitrate. This is an interesting wrinkle to the problem. I think basically binding mandatory arbitration takes away your right to take them to court, bind together as class action. It forces you into courts that theyre paid effectively by people that have wronged the consumers in most cases and rule for over 95 of the time in favor of the corporation. If you lose your legal and constitutional right, and it is worth checking if you were a consumer concerned about this to find out whether your bank has a binding mandatory arbitration clause or not. If it does, this wells fargo case shows that many times banks or other institutions have very good reasons for taking away your legal rights, they may be violating them and want to shield from liability. Joe, we have to leave it there. Thank you very much. A north dakota tribe to stop construction of an oil pipeline was denied. It was opposed by native americans who say it would pollute nearby rivers and desecrate their sacred land. Nearly 4 billion pipeline would be the first to allow movement of crude from the bach and shale. Oil prices fell 4 today, big drop on contin and a rising dollar. It is well known in the energy markets, theres another reason not as well known where drilling costs are low. Brian sullivan reports. Reporter getting most of the attention in the oil world, its northern rival, may be americas most Promising Oil producer, the oklahoma region known as the scoop and stack. Scoop short for South Central oklahoma oil province. Stack stands for sooner trend basin canadian and kingfisher s aside, those areas some of the best and Lowest Cost Oil and gas regions now. The area is hot. One, it is a relatively new place. Land prices never spiralled out of control. Three, oil people got what they call good rock. A lot of oil and gas thats relatively easy and inexpensive to get to. Big Companies Operating here, devon energy, new field exploration, marathon, and simerex. They can make money with 40 to 50 oil. We are blessed as a company to be involved in some of the best places for the unconventional play on shore north america. Stack is one of those places. We are doing the same in the permian basin. Not all you can make money at 40 a barrel. There are a lot of challenges for the industry. Reporter the economics look good. May be one risk that has little to do with money, earthquakes. Oklahoma was recently hit by the biggest ever quake and the state has gone from an average of a few a year to more than 900 earthquakes. Scientists point the finger to fracking. Changes to the industry will come. As a geologist tells us, the state is unlikely to shut the industry down. I dont think the state wants to shut it down and the industry doesnt want to be shut down, people that stayed worked for the industry, dont necessarily want it to be shut down. But you cant have earthquakes all the time. That comes to knowing enough to manage it. Reporter for now, drilling continues. Oklahoma optimism is high. As long as oil prices dont fall 40 a barrel, the sooner state oil boom may roll on. For nightly Business Report in oklahoma city, brian sullivan. An update on a story we have been following. A judge said he will grant hajin shipping from creditors in the u. S. That will allow some vessels stranded at sea to dock and unload at u. S. Ports. It is the seventh largest container shipping line and unexpectedly filed last week. Still ahead, why safety regulators want consumers to stop using some popular devices the house of representatives passed by voice vote a bill that would let families of victims of the september 11 attacks sue saudi arabia. They passed that measure last may. The white house threatened to veto that measure saying it could harm diplomatic relations with a key ally. The vote comes days before the 15th anniversary of the attacks. Today, New York Stock Exchange and nasdaq observed moments of silence to remember those that lost their lives. Ahead of the anniversary of the attacks, former Homeland Security secretary earlier this week wrote an alarming oped in usa today. Tom ridge said there are gaping hole Emergency Preparedness which are being ignored. The threat comes from the Postal Service but theres more to it than that. Fascinating story. Reporter heres a small story that will tell you a lot how washington works these days. Wednesday, an alarming headline appeared on the website of usa today, an Opinion Column written by tom ridge. 15 years after 9 11, a gaping security gap, it said. Ridge wrote there remains a gaping hole in our National Security preparedness coming from a largely ignored source, the global postal system. In the column ridge said he was joining up with a new Nonprofit Group called americans for securing all packages because the Postal Service is not doing enough to screen mail coming into the country. What is this group, americans for secu all packages . It is hard to say. The firm is nonprofit, doesnt have to reveal donors. The website for the group doesnt include an email address or physical address. A spokeswoman said she couldnt say who was financing it. We did some digging. Turns out ups, private mail carrier, financed a trade association which in turn financed americans for securing all packages. There may be other large corporate donors, too. The point ridge n the d column is the point ups lobbyists have been making, security imbalance is a competitive advantage to private Mail Companies which are eating a lot of costs. One more things. Tom ridge did not write this as a volunteer, he was paid by americans for securing all packages for his time and talking about the issue. People involved would not tell us how much he was paid. A spokesman for ridge said he is proud to serve as an adviser to the new group. He is a Risk Management consultant, thats h job and is paid for his expertise but doesnt take work he doesnt believe in. He is concerned about this issue and believes it is important to speak up. The lesson here, when you see an oped in washington written by a big name, it is useful to ask how much money is changing hands behind the scenes. Back to you. Let me understand this. Ups, i assume, has to or does elect to search all packages in its system, something the usps does not do and ups thinks is a disadvantage. Thats right. The private carriers employ these enhanced security measures to their packages. They say the u. S. Postal service isnt do that because of delays following the law written in 2002 on this. That transposes costs for private carriers. Something the government run agency doesnt face. Sounds like they have a point there. Do we know if mr. Ridge even oped . Reporter we dont know the answer. We asked the spokesman. He wouldn actually wrote that but said these are ridges views. Thank you very much. You can read more about this story on our website at nbr. Com. The Consumer Product Safety Commission says owners of Samsung Galaxy note 7 should power them down and do not use them or charge them. That statement follows a warning from the federal Aviation Administration which says the device is a safety hazard, especially on planes. The with agency says the phones shouldnt be operated or charged while flying or even checked in luggage. Reporte the warning about the devices comes after 35 reported incidents of phones around the world exploding or catching fire. The main concern, the lithium ion battery. The faa has taken a new look at lithium ion batteries, looking at it from a safety perspective. Any time a lithium ion battery, especially because it is in a particular phone now, theyre advising caution. If it is the battery, that becomes the ignition source, and if that is the problem, they need to correct that. Reporter instead of an outright ban, the faa issued warnings to fliers. If you go to the hack safe website, the place they tell you not to bring long knives on the plane, theres a note telling people not to bring this phone on the plane. Reporter Consumer Reports believes the faa should have gone further. I think there should be an official recall which allows the faa to ban the phones which they havent done now from flights. It would also make it illegal to sell one of the phones. Reporter replacing all galaxy note 7s. They told nightly business they plan to expedite shipments this week to alleviate safety concerns. As far as whether or not they will replace that battery, they didnt respond to that specific question. The ongoing slump in food prices prompts kroger to slash the outlook. After disappointing quarterly sales, they said they would cut revenues guidance for the year, not expecting deflation to improve any time soon. They also reported decline in profit and attributed that to restructuring charges. Investors expect wor ne. Shares were up 20 cents. The move prompt by a quarterly loss which saw results impacted by writeoffs. They did report arise in revenue, that missed analyst estimates. Shares down 1. 5 . Investors had a chance to react today to finisars earnings. The fiberoptic company said profit and revenue rose. Both metrics surpassed expectations. The company gave better than expected Sales Guidance after which they upgraded stock. Shares up 12 to 26. 20. Shares of super ees are rising. They said they continue to underperform long term expectations but are working on managing expenses structure. Shares to 17. 39. Looking for stock picks for a volatile market . Market monitor market monitor has small cap names he says will help you ride out stock market volatility that may be about. When he was on in november, he recommended steve madden, up 4 , buckle gained 18 , and g 3 apparel. It is unfortunately 30 lower. Jay kaplan, Portfolio Manager of royce Small Cap Value fund. A fund i used to be a shareholder in. Used to be. We will get you back. Do you like the g3 apparel . What happened there. I am not an owner of it today. They announced a big acquisition a month or so ago, paid a lot of money. Doesnt earn any money right now. Its a really good business, well run, but there will be some did i jesings, we are on the sidelines. Ken mole is, head of the firm, consume at banker. Is that one of the reasons you like it . It is. Theyre in two businesses, independent investment bank, those are working out well, taking market share, a few of them. M and a business was a driver, very good in 2015. Weaker in 16. Still okay. Genesis is in restructuring. They have a vibrant restructuring practice. As we have gone through volatility, that business is picking up steam. It is closely held by partners of the firm. The owner, operators, they pay a big dividend the past couple years since public. Paid a special dividd at the end of every year. Good growth business. Another value play, pc connection. They changed the name to connection. They dropped the pc. But theyre in the Technology Distribution business. They help small and medium size businesses, federal government, school districts, acquire technology, learn to do cyber security, learn to do cloud computing. If a Small Company doesnt have the staff to do that, they consult. It is a good cash flow generating business. End of the year, paid a special dividend to owners. Camden national. It is a bank but in maine. In maine, beautiful part of the country. I was just there. The global world hea camden, maine is lovely on the water. They bought one of their biggest competitors, bank of maine. In the southern part of maine. They have a good statewide presence. 2. 5 yield. Well managed. Someday if a bigger Regional Bank wants a presence in maine, camden would be a place to look. Do you think it presses more volatility . It probably does. Small cap market since its bottom in february is up 30 . Straight up until today. We had a bare market from 15 to 16. 25 down, 30 up. Correctis are normal. They will happen with that kind of action. Thanks very much. Have a great weekend. On this down day on wall st a look at the sell off. Dow tumbled nearly 400 points. Nasdaq dropped 133. S p 500 slid 53. All major indexes fell more than 2 on the week, it was the biggest weekly drop for the dow since first week of the year. Thats nightly Business Report fo tonight. I am sue herera. Thanks for joining us. I am tyler mathisen. Have a great weekend gwen who can you imagine as commanderinchief . Hillary clinton or donald trump . Were searching for answers here editionado on a special of washington week. Mr. Trump i think i would have very, very Good Relationship with putin. Secretary clinton were going isis without committing american ground troops. Trust . Ho do you mr. Trump were going to convene my top generals and give them a simple instruction. They will have 30 days to Submit Office a sound for soundly and quickly defeating isis. Secrete says he has a plan to defeat isis but the secret is he has no plan. Mr. Trump hillary likes to play tough with russia. Hein looks at her and laughs. Secretary clinton not only did trump mess
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