halftime is over. "power lunch" and the second half of the trading day starts now. >> yes indeed. halftime is over. it is a breaking news friday here as the markets slide. some would say even in free fall. it has been a down day all day long. and of course it started with the big friday drop. the jobs number. if you were watching "power lunch" yesterday, we warned you that this was a possibility. let's run through the numbers right now up to the second. the dow right now off 163 points, that's 1.25%. the s&p 500 down 1.5% at 1370.

nasdaq, down an even 2%. look at that. 2963. a 60-point slide for the nasdaq back below 3,000. gold off $19 an ounce. down 1.1%. and here's the big story. oil, dipping very markedly down $2.34 right now. west texas at $102 down 2% off the lows of the day. we got it all covered for you starting with co-anchor, sue herera, who's all the coverage from the nyse. sue. >> down day here. kind of a lot of intensity you can feel on the floor. and bob pisani joins me. you know, we knew from the git go this was going to be a tough session. what's your feeling as to how the rest of the afternoon is going to play out? we're down 162 points now, bob. >> i don't see much of a rally coming in here because we've got the worst case scenario. not weak enough for qe-3, not strong enough for global growth. that's why we're not seeing a lift from the qe-3 crowd coming

in. i think that's a problem. look at the australian dollar. there's my key indicator of the global risk-on global growth story. look here, sue, we're at the lowest level since january right now. and there's been fairly heavy volume in the etf world where you people get in and out of the markets really fast. if you look at qqqs, the financials, they're all on the weak side, emerging market etf -- put up some of those etfs. >> let's bring in mat which he has lock. first thing i said to you is, yes, it's a down day, but how's the volume. you said volume easterable. >> volume easterable especially on a day like this. if we saw really good volume, i would be really scared. we still haven't broke 13,000 in the dow. s&p's holding 1360. these are important levels for the time being. i'm not so concerned about today's selloff. the momentum as we go forward is what i'm more worried about. >> one of the factors, bob and matt, is also the fact we have elections over the weekend. europe is looming very large in

this market. i would argue there's very little incentive for anybody to get into the market ahead of those events this weekend. >> let me point out, we're almost at 400 million on the floor right now. we could do 900 million to a billion on the floor. now, that's better than normal. you know as well as i do 700 to 800 million, this is just floor volume here. and i think it could pick up throughout the day, i think that would be an important sign. >> sure. the acceleration of selling, that would be my thing. i don't think we're going to see backslide interest here. there's no real reason, as you said, with elections coming up, why are you going to buy into uncertainty? there's no reason to. earnings next week. nothing out there looming large as far as the economic data. there's enough earnings to keep us most vated. >> right. and many of the earnings have been good. we have to say. >> sure. but lighter than last week. there are things we're looking at. technically if we could hold 13,000 in the dow today. >> the s&p? >> 1360 is a good number. >> and a rally in bonds. there's another sign. >> exactly.

>> despite the yields, the rally in bonds. >> the second trade in the treasury market. thanks, guys. see you later in the show. so, ty, there you have your key levels that we're going to be watching throughout the day. over to you. >> fantastic, sue. let's take a look at the five biggest dow losers on this day when all of the dow 30 stocks are lower. jpmorgan chase down 2.5%. caterpillar down about the same. chevron, ditto. down 2.3%. alcoa off little more than 2%. and intel down 57 cents, 2% at $27.98. oil falling very markedly. below $98 for the first time since early february. it's bounced back off of that, but it's on track for one of its worst daily performances of the year and worst weekly drop in get this, seven months. sharon epperson tracking oil slide at nymex. >> it's sliding as we speak, tyler. in fact, we've hit a new low just a few moments ago down almost $5 for the price of wti futures. and we've seen this the past two years in may. oil prices having a major

correction. but what we're seeing today is a confluence of events. we have opec supplies at a th e three-year high. demand continues to weaken the economic data we've gotten here in the u.s. and europe. doesn't mean we'll see a change in the demand picture any time soon. the iran risk premium seems to be coming out of the market as they're back at the negotiating table. and then we have these elections this weekend in france and in greece. and there's a great deal of uncertainty about the political climate. all of that causing oil prices to drop. as you mentioned, oil's now having its worst day of the year. now, as this sector is going lower, one sector is moving higher. and phil lebeau is in chicago with more. >> thank you, sharon. the airline stocks are soaring right now. take a look at what we're seeing across the board. almost all of them are moving higher. as we start with united, which really has had the biggest gain today, keep this in mind. for every dollar drop in crude, it's a savings of about $400 million for the major airlines. that's why most of them are

moving higher as oil moves lower. with one exception. check out love. shares of southwest airlines. they are aggressive hedgers. when oil corrects or skyrockets one way or the other, that stock usually goes inverse to the rest of the group. that's why as you take a look at what happens with crude oil going lower, so do shares of luv. >> when in doubt, check out luv. thanks. jeff kilburg with kilburg capital has been with us all week as our stock buddy. oil selling off big time today, jeff. what should i do? how would you play it? >> certainly, tyler. we have seen a phenomenal move to the downside. hopefully that will relieve some of the pain at the pump for the folks filling up this weekend. but we've seen nearly $106 yesterday down to $9650. that gives folks an opportunity to get into the energy sector. i like the etf xle. a basket of stocks trading as one stock. i think it's a nice buying opportunity as we see the sector come down today. back to you, ty.

>> jeff, thanks very much. we'll be back with you shortly. meantime, let's go back to the nyse and sue. >> a brave guy, isn't he, ty? one of the reasons for today's selloff, declining confidence in the state of the economy after that very weak jobs number. that's your cue, steve liesman, take us away. >> thanks, sue. i'm calling this the purgatory number. little help on one hand but not bad enough to bring in the federal reserve on the other hand. it's a "disappointment if not a crushing one. at april's rate of job gains, it would take well over three years to return to december '07's employment level." there was some good and bad in this number. let's look at good. revisions were to the upside at 53,000. temporary help up 21,000. average weekly hours unchanged at a relatively high level relative to where it was before the recession. manufacturing hours up with overtime up as well. and the unemployment rate did decline to 8.1%. although part of that was a

decline in participation rate. part was a decline in the number of unemployed. now look at the bad. government back to its old tricks of reducing the work force down 15,000. some of that may be related to the easter holiday. service is just not doing what it needs to do to have strong growth in this country. just 116,000. we need that number near 180,000 and 200,000. transportation services was down we think because of easter. and the labor force, people dropping out again 342,000 decline. wells fargo says it appears to be an economy settling into a 2%, 2.5% gdp growth. neither accelerating or decelerating. no information to move the fed or investor expectation for growth. and the concern about here we go again, is it another spring swoon? look at february '11 and then march. those strong numbers. and look at the decline in may. look just what's happening right now. big numbers and then declining again. btig says two months of weaker than expected job growth is dangerously close to a trend. sue, i will tell you that one

issue has to do with bus drivers, the transportation services, about 11,000 lost their job because of the survey when easter week was around. >> good point, steve. thank you very much. the president weighed in on that. more on that in a moment. first brian shactman with a market alert. >> i'm looking for any positive sign i can find here. i have two midday upgrades. weye hauzer, it's getting a bounce. even a bigger bounce for blackrock. if we can put up that chart quickly. they also got an upgrade. this to buy from hold at standpoint research. they're heading back toward the flatline, sue, on a day like today, not too shabby. >> we'll take it. thank you, brian, very much. there was reaction from washington to that jobs number because jobs may well be the key to the president's re-election. he addressed that within the

hour. john harwood has more. >> talking about the positive and negative news embedded in these numbers today. the president discussed them when he went to a suburban virginia high school today. at the top of his remarks he addressed those job numbers. you can see him in these remarks balancing the need by saying we've got things turned around or not letting anyone come to the conclusion he's become con play sent. here's the president. >> 4.2 million new jobs over the last 26 months. more than 1 million jobs in the last six months alone. so that's the good news. but there's still a lot of folks out of work. which means we've got to do more. >> so the president used that opportunity to prod congress to pass more money for infrastructure to keep student loan rates down. that didn't stop presumptive

republican nominee mitt romney from hitting him hard saying these numbers are terrible and disappointing and as long as unemployment is above 8%, mitt romney's going to make headway on that issue and capitalize on the discontent that's out there, tyler. >> john, thank you very much. meanwhile, facebook meeting with wall street today as it gets set for the big ipo later this month. kayla tausche live outside of jpmorgan headquarters in new york. kayla. >> well, tyler, you can't sell something to investors if your salespeople don't know exactly what the product is that they're selling. that was the point of today. facebook management starting at lead left underwriter morgan stanley for meetings have teach-ins to discuss every nook and cranny of the product, financials and also open the floor for q & a. they then came to jpmorgan, the second underwriter. and then they moved onto goldman sachs. here at jpmorgan the architect is jimmy lee, a legendary deal maker what the industry has deemed the trillion dollar man.

we were able to catch up with him and ceo david eebersman as they were leaving the building. take a listen to what they had to say. >> the meeting went great. fabulous. >> i am told that hoodies were provided for the facebook team, that they opted for suits even though they were presenting today. and even though the jpmorgan team was headed out, there were just shy of 1,000 people across new york city today in the meetings and there may be just that many people here on the road show. that's where the financials are going to be very important. remember, facebook offering 337.4 million shares and they have an option to sell another 50 million shares. at the midpoint of the range it would raise $10.6 billion total. and a little more than half of that would actually flow through down to facebook because there are a lot of existing shareholders selling. now, investors on monday will have a lot of questions for the company about not only slowing

earnings that we saw in the first quarter -- slowing earnings growth, i should say, but also a declining growth in the user base, which the company admitted full stop in the s-1 released yesterday, still no word yesterday on whether mark zuckerberg will make an appearance on monday or throughout the road show. it's also unclear whether he's been at any of these meetings today. guys, back to you. >> the media are ready for the big offering, but is wall street? let's ask bob pisani. >> make me the debbie downer. i'm a little skeptical. first of all, the price? i checked on second market it was trading $43.50 when they stopped trading. what's that all about? are they concerned about the valuation there? all i know is a lot of institutions already own it because of that second market. and it's mom and pop that's a frenzy as all about. so what happens, tyler, when this thing is 20 times oversubscribed, 30 times? i don't know. the numbers are crazy. and instead of $35, forget that, it's going to price at $40 or $45 and opens at $80 or

something like that? mom and pop buying it at $80? i got a problem with that. and no real voting rights. or am i just being petty about this, tyler? >> you have some great points. let's turn to jeff kilburg now and ask him what do i want to do here. if i'm an individual investor, presumably i'm not going to get it at the offering price, whatever that turns out to be. do i buy it on the flip? what do i do? >> well, this is so exciting. this is the first time in history we have ever seen the interest in this ipo. there are some concerns although i want to buy this. i want the opportunity to buy it the first day as well. an emotional trade. it's really going to be a flier. but i think the three concerns are will the user experience change? will there be further market penetration as they evolve? more importantly, what's the involvement of zuckerberg? will he be in the backseat or behind the wheel, ty? >> so you would still be comfortable as an individual investor buying this on the flip at what might be an $80 price? >> absolutely. this is the father of every cocktail party that night of may

18th, everyone wants to own this. i think you'll see a sensational rush no matter the price. $40, $50, $60, people will come and buy this. >> jeff, thanks very much. let's go to brian shactman for a market flash. >> thank you. there's a report out there that madison deer born is considering options with farms. they make juices and going to approach campbell's soup. they want about $2 billion. rumors there could be $1.5 billion or initial offers. campbell soup got a little bounce. it's in positive territory. do we have that chart? i also want to show blackstone after that. you have campbell soup in positive territory. and blackstone going to approach other private equity. blackstone is a viable option there. and they're definitely getting a pop out of it. if we can take a quick look at that chart as well, they went from negative to positive territory. sue, back to you. >> in an otherwise down day too, brian, thank you very much. speaking of down days, yahoo! shares under a lot of pressure today. hedge fund third point demanding

yahoo!'s ceo step down after questions about his educational qualifications. the stock is down better than 1% at $15.22. it has lost a lot of ground this week. jon fortt has the very latest on the situation. jon, over to you. >> sue, not just scott thompson, also board member patty also has a degree in business administration and said she had a couple of other degrees she seems not to have. silicon valley has been abuzz about this. also because apparently three years ago scott thompson did a radio interview in which he talked about having two degrees. so no deniability there left for him as far as that goes. yahoo! has put out a couple different statements. one yesterday saying that this doesn't change the fact that he's qualified. then another saying the board is looking into it. and as you mentioned, third point saying too little, too late. this has to be dealt with and thompson must go. credibility for yahoo!. key issue right now for a couple reasons. one, layoffs. another dealing with the asian

assets. with that spin-off going on and then of course this proxy fight. dan loeb tightening the noose here on this issue. not going to let it go. he still wants his board members to be voted in. sue. >> jon, thank you very much. speaking of jobs, we're going to talk more about the yahoo! situation and jobs in general. do you want a high paying job? well, we know a guy who can help you. he's coming up next. first, check out this high paying job in chicago. $115,000 for a safety and security manager in the windy city. with the dow down 160 points, "power lunch" is back in two minutes. minutes. about saving money. this is bobby. say hello bobby. hello bobby. do you know you could save hundreds on car insurance over the phone, online or at your local geico office? tell us bobby, what would you do with all those savings? hire a better ventriloquist. your lips are moving. geico®. fifteen minutes could save you fifteen percent or more on car insurance.

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right now we have a downside bias in the market by a rather sizable volume and a sizable percent. the dow is down about 160 points. about 1.25% on the trading session. the s&p is holding key technical levels, but it is also under pressure. and the nasdaq is losing strength as well. so a downside day on wall street, ty. we're watching it for you. >> thanks very much, sue. you know, let's join now the founder of ladders, it's a job search firm for professionals. going to talk a little more about the jobs numbers today. as you look at these numbers, is the economy getting stronger, weaker? is the jobs market getting better or staying the same? >> yes is the answer to all of those. that's the problem. there's not enough in the job numbers to make us depressed about where we're going. there's also not enough to make us very excited about where

we're going. the numbers as one person said on twitter, it's more meh than bleh. >> is 115,000 enough to absorb new workers coming sbootd economy or not? >> at ladders we have seen things have stopped getting worse and job growth is enough to keep things just okay. but they're definitely not getting better. >> sue. >> mark, if i can ask you and turn you to the yahoo! story, which continues to develop this hour. first of all, your reaction to the fact that the head of yahoo! apparently had some discrepancy sis s on his resume and the call for the board to fire him. >> he's making some very serious allegations there regarding scott thompson's resume and continued deception over many years. i just back in the green room looked up e-bay's s.e.c. filings and as recently as last march he

was describing himself having a bs from accounting. so if loeb's going to backup these allegations, he needs to find out where he's coming -- >> you know, it comes to the process of vetting, though, does it not? vetting the background of whoever is applying for a job. do you do that? and how aggressively do you do that? >> the important thing is when you're the leader it's important you take responsibility you take control of press and pr team, some folks are going to be rooting for you. they might overstate your qualifications. they might elaborate a little more than what's true. over the years that can pile up to be not true. and a leader really has responsibility any time that he or she sees that somebody's overstated that they have a degree in a particular major from some place that they really correct that. it looks like he might not have done that aggressively enough in

this case. >> what is a forgivable level of resume puff ri? and what is unforgivable? >> so if this wasn't him himself typing on his resume or his files online, i got a b.s. in computer science, i think it's forgivable. whether his p.r. department made mistakes over the years that just piled up, if he himself is saying i got a degree in this particular subject matter, that's probably not forgivable. >> all right. marc, thank you very much. >> thank you very much. >> you're very welcome. sue. >> two key elections coming up this weekend. you don't get to vote. we'll tell you why they're so important to this market. but before the break let's take a look at the shares of u.p.s. in today's trading session. keep in mind it's a down market. we're down about 175 points. the company authorizing a $5 billion buyback program today. and who says they only pay in sunshine in california? look at this job.

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ask your rheumatologist how you can defend against and help stop further joint damage with humira. welcome back to "power lunch." brian shactman here at the markets desk where there's some interesting price action in best buy. take a look at the intraday chart. it actually hit a three and a half year low at 20.85 and bounced. so maybe that's some real resistance there. still hadn't been that low since

december, sue, of 2008. do we all remember where we were back then? >> yes, we do. thank you, brian, very much. all right. i mentioned two key elections. they're looming large in europe this weekend. then the yahoo! story out there. airlines, energy, jeff kilburg is back with us. a lot of cross currents with the market that's down 170 points right now. jeff, how would you play it? >> well, we saw that dismal job report, sue. markets really kind of initially were confused. they didn't know about qe. and about ten minutes after that number came out and you saw the equities came in and bought treasuries across the curve, that sent hiccups across the market. we're seeing chesapeake energy finally stabilizing, but every other technology company is getting hit to the downside here. and lastly, sue, i wanted to bring up tyler and i talked about leapfrog the other day. seeing a nice spike in that stock today. that's probably the only silver lining in this rainy cloud day. back to you. >> thanks, jeff. we'll check in with you later.

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gold market has been extremely heavily traded today. and it's headed for its biggest weekly drop in a month. prices closing right now. and sharon epperson is tracking the action at the nymex. is it the economic data, europe, a combination of the two? >> it's a combination of all of that. right now gold seems to be traded more as historical use more so than a risk asset. it's not really following the rest of the commodity sector. we've seen a nice bounce here in the gold market and looks like gold is closing near the highs of the session up about $20 from the low today. we're still in this range that gold has been stuck in between about $1625 and $1675 a ounce, sue. but a lot of traders are talking about the cme's margin changes and the fact they've now extended that change to august 5 9, a 90-day extension.

that might be a reason we're seeing a bounce after the selloff yesterday. >> thank you very much. >> sure. >> down triple digits on the dow jones industrial average, about 170 points. all 30 stocks are down. cisco and bank of america leading the declines. the trading action down here, bob pisani is here on the floor to kind of handicap it. and i also noticed, bob, the volume is starting to pick up as the selling is increasing, which is not necessarily a good sign going into the close. >> not on a down day and a lot of uncertainty over the weekend. i think you've got a good point. you want to watch volume on a day like today. put up the etfs, the big ones, the qqq, the eem, the xlf, the volume here is heavier than normal. and even on the floor i think we're trending just slightly towards the heavier side. we could potentially do $850 million to $950 million. look at the energy stocks. >> you were worried about this yesterday. >> several days ago. again, the energy complex is

underperforming. big energy names are on the downside. look at these declines here. these are big names here. transocean now 4%. a lot of these names are almost down double digits so far this week. dramatically underperforming the s&p once again. >> so which is more important to the market right now? earnings or the economy? today it seems to be the economy. the other day it was earnings. it's that push and pull we see. >> today we're clearly being driven by macro issues. uncertainty of the elections and the nonfarm payroll report today. we do emphasize, earnings have been good so far this season. and it's a major reason that the stock market has held up so well. >> bob, thank you. see you later as well. now to the nasdaq which is on pace for its biggest weekly drop since mid-december. seema mody is following those numbers there. not a pretty picture. >> certainly not. the nasdaq posting the sharpest losses. much of the blame on apple. that's casting a shadow on component supplies including

broadcom, texas instruments and qualcomm. amazon had that blowout earnings report last friday. the shares retreating this week. first solar hitting an all-time low of 1608 after reporting a quarterly loss. one bright spot is micron tech. reuters reporting micron is the likely winner in the bid for that troubled japanese chipmaker. this acquisition would give micron access to the d-ram chips. that's a look at what's moving over here at the nasdaq, sue. >> seema, thank you very much. to the bond pits in chicago where it seems everybody's been going today given the economic data out this morning. rick, how are yields doing right now? >> you know, the treasury market is actually pretty easy for many months now. it's pretty much showing us at least based on its high price low yield trade that it isn't confident on many economic, maybe political, maybe debt issues or all of the above. throw in europe. look at the intraday of 5-year.

under 80 basis points. the settlement yesterday and last week are the same. down 5 basis points, 7 basis points away from historic 70 basis point yield close. look at the 10-year down about half a dozen basis points on the day and week. and this is going to be a fresh yield close going back to february just like the 5-year. if you look overseas, also almost identical formation 10-year bund, we've talked about it a lot. it is now under 160 at 1.58. all-time, all-time low yield closes. tyler, back to you. >> thank you very much, rick santelli. the annual pilgrimage to omaha is on. tomorrow is the big day, annual meeting out there. shares of the company pretty flat over the past year down a little bit. basically down 0.75% at a modest $ . becky quick just spoke with one

of warren buffett's right-hand people. becky. >> hey, tyler. we sat down with charlie munger and he is an interesting character. if you ever get a chance to talk to him, he's been around 8 years and he's seen just about everything happen on wall street. he has some big thoughts about what's happening in the market. more on that for you in just a moment. of course what's on everyone's minds this time around is what's happening with the situation with warren buffett. he just announced recently that he has prostate cancer. i asked charlie what he thought about it and he said basically he thinks this is a total nonevent. in fact, he says he doesn't bother to get his own psa levels checked. he thinks it's a little silly. he does admit this has made a lot of people think about the succession plan even more cautiously and making them want more details, more information. here's what charlie had to say about where he thinks the state of the succession plan is for berkshire right now. listen in. >> well, i've never been more comfortable about succession or duration of culture than i am

right now. our new investment people show enormous promise. it's good we were provoked into doing that by lose retirement. i have enormous confidence in continuation of the culture. >> of course with those new investment people he's referring to ted and todd who have taken over and stepped in to do a lot of the investment small piece of the portfolio charlie and warren have been responsible for for so long. we talked about the unusual style of investing at berkshire. warren buffett told us last november he had been investing in ibm. it's now the second largest position berkshire has in outside stocks. this was something buffett told us he had been doing on his own. he hadn't even told charlie until he was about even into. we asked charlie if that made him uncomfortable. here's his response to that.

>> i was perfectly okay with it. it's a very buffett-style play. >> how so? >> well, it's simple. they announced what they were going to do and why they thought it was going to work. you can see how entrenched ibm was in many places, including the building and railroad. >> he talked a little about the markets overall. again, munger and buffett don't normally make comments about the market. he doesn't think it's as cheap as it usually is, but a good place for bargains. david einhorn pointing out he thinks gold is a good investment, charlie has not really bought into that. at least not yet. more on that when we return in "street signs." but, tyler, he also says wall street's a place where there's been a lot of bad behavior. we talked about michael lewis and some comments he's been

making recently how he thinks the volcker rule isn't enough. munger says if he were in charge, he would make michael lewis look like a piker, his rules would be even stricter. >> becky, thank you very much. we look forward to your continued coverage over the weekend. it's going to continue on cnbc.com specifically where we're going to be live blogging from warren buffett's address to shareholders and mr. buffett himself, the younger guy in this butch and sun dance pairing. he'll be live on "squawk box" on monday from 6:00 to 9:00 eastern. first live interview with becky after he speaks to shareholders. all right. let's head to jeff and find out what your favorite buffett picks are right now. >> well, ty, first and foremost, what an absolute stud warren buffett is. annualized returns of nearly 20% for the last 45 years. i really like his position in wells fargo. he's really pulling in the stock for the housing recovery.

and wells fargo is the largest originator, ty, in the next seven originators combined don't even equal to wells fargo. i think he's really positioned properly on this housing recovery. obviously he has some wonderful vast portfolio, but wells fargo i think he's really positioned correctly. back to you, sue. >> thank you, jeff. now some top headlines on this big down day for the markets. oil stocks getting hammered as bob pisani mentioned to us as oil drops below $100. exxon, b.p., chevron among those getting hit. tillies is bucking the trend. soared on its first day of trading. linkedin soared on earnings. the ceo told squawk on the street job postings on that site are soaring as well. the dow is not. it is sinking on the back of that jobs report. in terms of the dow jones industrial average we were down about 160 points just a few moments ago. volume to the downside is picking up on the trading session. bob talked about the etfs. let's look at the etfs that are

short this market. if you picked those, you're doing pretty well today. perhaps a little bright spot. we're back in two minutes time.

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let's get you up to date on the markets. intraday the dow jones industrial average which was down almost 180 points a short while ago has paired its losses. down 155 just above the 13,000 level. technically that's where a lot of people are watching, the dow 13,000 level. in terms of nymex crude down almost 4.25% at $98.22. very tough day for those long the oil market. a lot of them decided to even up positions ahead of the elections in europe, which are coming over the weekend. but that is helping the dow transports a little bit. we were considerably lower than this earlier. the transports now down less than 1% or about 48 points. so the lower price of oil helping some of the

transportation stocks today, ty. >> sue, thank you very much. power rundown time now. it is of course all about jobs, jobs and jobs. mark memorial, welcome, gentlemen. you're on the clock, guys. unemployment dipping to just a smidge above 8%. no president has been re-elected with an unemployment rate above 8%. ron christie, you first, can obama be the first? >> i think he can be, but he's in trouble. this is the 39th straight month you've had unemployment above 8%. the president's teem team coming in saying unemployment won't go above 8%. so president obama still has a little time to turn the clock around, but i think the american people resign themselves to the fact that we're going to have high unemployment for the months to come. >> marc. >> the president's had 26 months

of continuous private sector job growth. no president has faced the kind of obstruction and ob city innocence that this president has faced from a congressional majority. if but for that obs innocence, i think the unemployment rate would be lower because some of the reasonable moderate steps like the american jobs act would have been voted on and taken effect. no president has faced not only the opposition but the depths of economic difficulty that this president has faced. >> touche. let's talk about unemployment specifically mayor, morial, african-american in mid-double digits, among hispanics north of 10%. has the president done enough to address minority employment specifically? >> let me say this, we will not be satisfied until the unemployment rate in communities of color and urban communities comes far down to 4% or 5%. we're going to continue to work. but, again, the president has put a number of things on the

table containing the american jobs act which we think would help the black and latino and urban unemployment rate. again, he's faced obstruction in congress. he's faced abstinence in congress. he's done a number of thing. would i like to see more? absolu absolutely. can he do it by himself? he cannot. he needs a willing partner in congress. he hasn't had that. >> ron christie, has the president done enough and have the obstructions been the reason he hasn't done enough if he hasn't? >> i don't think he has done enough. you say republican obstructionism. the fact of the matter is the president controlled the white house, the democrats controlled the congress for the first two years. they were intent on passing a health care reform bill rather than focusing on the economy and jobs like so many around the country wanted them to. i think the republicans are very willing to work with the president, very willing to find ways we can have government get out of the way and allow job creation, but i think education is the true civil rights of the 21st century. and i think we need to focus on education to allow communities of color and people of color to

get a job. >> let's cut to i think what is probably the ultimate question as we head into the election in the fall. ron christie, you first. is america heading in the right direction? are americans better off now than they were four years ago? >> absolutely not. and if you look at the unemployment rate just under 8% when president obama came in office in january of 2009, there was a great sense of hope. people thought we were going to turn the corner from the recession. turn the corner with the poor housing market. and i think gasoline prices have gone up, people's prospects of finding jobs have gone down, we are not better right now than we were when he took office. >> not better off. not heading in the right direction, mayor. >> we're better off and the nation is heading in the right direction. it isn't where it ought to be and it's headed in the right direction because the depths of unemployment and the depths of economic recession put the unemployment rate at 10%. now it's down in the 7% range. so you've seen a one-third cut. secondly, no president has inherited the kind of absolute mess in foreign policy and

domestic affairs than this president has inherited. and i think he's managed to stabilize and point the country in the right direction. it's going to take a lot more work, but it would be better if he had a willing partner and a congress willing to meet him on common ground and not simply take the position that we want to deny the president any legislative victory for political purposes. >> gentlemen, thank you very much. see you in june. >> thank you. >> all right, guys. sue. >> ty, up next as we continue here, much more on a down day for stocks. all the dow 30 on our big wall are pretty much in the red. right now the dow jones industrial average is off about 158 points. down volume obviously is picking up a little bit of speed. we're back in two minutes time.

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welcome back to "power lunch." brian shactman here at the markets desk. if you want example number 472 of the facebook hysteria, an analyst initiating coverage before the stock even trades. wedbush initiating with an outperform and a $44 price target, which they'll probably have to increase that target after it starts trading. basically saying more users should drive usage which should increase advertising revenue, mobile revenue is a huge growth

opportunity, payments opportunity, 12-month target of $44 reflects 22 times their 2015 eps, sue. the hysteria continues to build. >> thanks, brian, very much. all right, the markets down about 155 points on the dow jones industrial average. we're going to bring everybody in and talk a bit more about that. ty is here with us. jeff kilburg is here with us and here onset with me is steve grasso. steve, start with you. your feelings about today. i just looked up and it looks like the upside volume is gaining a little bit of strength but still a lot of pressure on the market. >> you nailed it before. is it about the economy? is it about earnings? is it about europe? it's a combination of everything, right. so earnings obviously took center stage. now we have a bunch of elections going on in the european zone this weekend. why step in front of the train right now? we broke down a little technically. we talked about it yesterday the 50-day moving average, 1386. we broke through that. so at this point i think traders want to see where we level off. for the moment we've stabilized

right around the 1370 level. another big level. but below this it gets a little interesting. 30 points lower is the next real stability. >> interesting. >> in the s&p cash, that's a big move there. >> it is a big move. jeff kilburg, i always cringe when i hear the words it's going to get a little interesting. you've given us some plays for people who do want to step in front of that train, certainly. but to steve's point, why would you do it on a day where we have a lot looming large over the weekend? >> grasso's got a great point. to add on we are seeing this unexpected punch from the unemployment number. therefore we're still in kind of a hovering pattern on what's going on in europe. so right now i think the treasuries, you seem to grab them across the complex, seeing the nasdaq down nearly 2%. and as grasso eluded to, they did break technically. so unfortunately, sue, i think there's more pain to come. >> we discussed yesterday the dividend plays. we discussed it on the show today. you really want to be able to sleep better at night. it's not like you're giving away

performance. a lot of stocks are around the 52-week highs. that's probably a better way to transition your portfolio so you can sleep better and feel better about it. >> ty, what do you say? >> i say you bet your grasso is right. the truth of the matter is i think his point on europe is really key. this is going to be a very interesting weekend especially with the french elections coming up and whether the socialist over there is able to topple mr. sarkozy, who for the most part has gone along with the austerity proposals of the northern europeans and most especially of the germans. there is a real fissure as we were talking yesterday between northern and southern europe. and it ain't over yet, folks. >> what about the utility stocks, steve? i just looked up the utility average is in the green by about -- not a lot, 1.5 points or so. >> it's another aspect. so xlu, if it serves me correct, i think it yields roughly around 4%. so instead of you picking out the one stock where you think it

might have some exposure to xy and z, it doesn't matter. you buy the basket. you buy the xlus. this way you're more insulated for the one-off or earnings miss or some type of news headline risk. buy the xlus and still get the 4% yield. >> jeff, how much more play is there in treasuries? earlier this week they were ushering in the second phase of the big treasury buy. do you agree with that? do you think there's a lot more left in that trade or not? >> i do. but for folks looking for yield, the treasuries are not a place to be. we're coming in for price appreciation. and the 1.67, that 1945 low which we just tested, i think that's going to happen again. but honestly, sue, i think there's an equity purchase coming here because there's an opportunity as these stock prices come down, the qe perks back up and all of a sudden, boom, a knee-jerk reaction. if you are looking to get in the market, hang tight, have dry powder. the next couple days of trading,

you may be presented that opportunity. >> killer, you can jump in here as well, the main issue for me every time it looks like we're breaking down technically, every time we look like the news out of europe is coming back in, you wind up seeing a rally in the markets that surprises everybody. it means that obviously volume is light and people want to get long this market. they're not totally involved. but the one caveat is election year. and that's the one wild card where every time you think this market should be flat on year, which i do, you get that election year cycle. >> thanks, guys. appreciate it very much. ty. >> all right, sue. we're going to look at all 30 stocks in the dow are down today. before the break, five of the biggest losers of the day, walmart the least bad in a sorry lot. cisco the biggest laggard, down nearly 3%. there are some friday losers not in the dow. a lot of them in energy as you see right there.

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