intel continues to work. it's going higher. >> joe? >> i talked about it before. i think it's more than a trade, it's a trend. go with long aruba. >> sticking with tech, buy cisco. >> i like penn national gaming. >> that does it for us. have a great rest of the day. "power lunch" starts now. thank you very much. earnings season is upon us. it begins in earnest this week. which way will it take the markets? we will zero in on an answer to keep you ahead of the game. it's been a huge day of ceos here on cnbc. this hour, see what they see when it comes to the real state of the american and global economies. and ford's big move. the changing shape of a bestseller. the f-150 truck. not just its shape, but what it's built of. sue's at the new york stock exchange. we will check in with her in just a second. first let's talk earnings. kayla tausche focusing on the financials. seema mody focusing on the big

picture. >> analysts are forecasting for this quarter, that's going to be weak revenue growth. while we are seeing a reacceleration in gdp growth, that hasn't translated into higher sales estimates for this quarter. for q-4, thompson reuters is estimating a .4% jump in sales versus 3.4% that we saw last quarter. europe will also be in the spotlight this season. analysts are betting that tech will benefit from the ongoing recovery in europe. tech companies that have exposure to europe include harmon international, electronics arts and priceline. last quarter, priceline saw an uptick in european sales. analysts say the european online travel market could offer considerable growth opportunities for priceline and the broader online traffic market, travel market, excuse me, going forward. when it comes to emerging markets, experts have a mixed opinion on business conditions. last quarter, young brands and nike were cautious on china while general mills saw strength on its earnings call. management said we had a very strong quarter in china and have seen terrific growth in brazil.

whether we see strength or weakness in emerging market sales, the chief market strategist at oppenheimer points out that unfavorable currency fluctuations will likely have a negative impact on earnings this season. tyler and sue? >> thank you very much. let's go over quickly to dominic chu for a market flash. >> check this out. it's mckesson getting hit hard. it just reopened for trading. the company said it failed in its bid to buy a german drug distributor. it raised its bid after elliott management rejected its original bid. the two sides finally hammered out an agreeable price but they needed to get 75% of shares. that's what mckesson was trying to angle for. they did not get it so those shares lower after they do not get those shares they need for a takeover. back to you. >> interesting development. thank you. returning now to the earnings season and financials of course, a big theme this week, kayla tausche. you have been following it for us. >> i have.

alcoa out of the dow, now banks will officially kick off the earnings season with jpmorgan chase and wells fargo reporting tomorrow morning. there are a couple broad themes analysts are preparing for. with revenues slim, banks have been pumping up profits by cutting expenses and releasing money they had stored for bad loans and some litigation. those strategies are wearing out and the question is are banks really starting to grow revenues. second, in an improving economy, that revenue growth comes from loan growth, especially from consumers and with mortgage refinancing drying up, banks really need this. third, what was the effect of the taper. in q-3, trading sharply slowed when the fed kept the status quo on qe, rising yields should spur more activity but it won't be a blowout quarter. jpmorgan is expected to post $1.24 per share on slightly down $23.8 billion in revenue. better than it's q-3 loss but it will take an additional $850 million hit for its madoff settlement. in october, wells fargo said its mortgage pipeline shrunk by

half. that will hurt wells since it's the bank's biggest unit. investment banking for wells could be a bright spot but analysts are looking for slightly higher revenue but lower eps, 98 cents on $21.9 billion in sales. later in the week, citigroup turns 5 and bank of america could surprise to the upside but tomorrow, with these two big banks, that will really set the tone. as we talk about the improving economy, whether banks feel comfortable leveraging will be key here. >> thanks very much. you'll be all over it for us. are we going to dominic or sue? all right. sue, to you. >> thanks very much. let's talk more about this. bob pisani is here, kenny pulcari is here. we are down 102 points on the dow jones industrial average. there's a lot of tension in the market today because of earnings. you're focusing on the financials as well. >> because it's the week, right? kayla points out it's very important that people focus on the financials. here's what i think will happen. you will get the sell the news

mentality. you will try to rally the market and long term investors will take some money off the table, people are expecting some weakness as we move into the spring. all this news they are talking about such as jpmorgan, that's not new news. everybody knows that. the madoff settlement. >> using that as an excuse. >> understood. understood. when that news came out, people already reacted to that news and the settlement and all that. you might get a little push but you will hit resistance right away. >> we were flat until -- >> the jobs picture not quite as rosy as we think. >> gdp forecast i think is 2.5% to 3%, that was fairly mainstream, but the market really didn't like his slightly bearish tone, i think. and we dropped on that news. >> especially given the fact that there seems to be a disconnect between the employment numbers and what's actually happening on main street. it's calling into question the analysts that i talked to, anyway, about whether or not you can really trust the employment data. obviously, last week's

employment data, lot of people si say that was a weather fluke but it brings into question whether or not the reporting is accurate. >> the bond market doesn't feel that way. >> there's a divergence between the two. >> if it was a real fluke, it seems the bond market would be unchanged friday and today, yet it's not acting that way. >> this whole thing about the weather, it was too cold, people don't look for a job, i sit back and think are they kidding me? because if you're really looking for a job and you need a job, the weather's not holding you in the house. >> especially if you think there's a chance -- >> exactly. that whole argument is very, it's numbing to me. i'm thinking to myself, and i'm told the government was shut down for three and a half weeks, yet that number blew the roof off the bus, considering. >> with all that said, the market's not panicked. six-month low, lowest since august on the fear indicator, that's the vix today. v-i-x. the market is not panicking here. >> it's not happy, either.

down 100 points. >> deterioration. >> thank you very much. to dominic chu for a market flash. >> speaking of not being happy, check out what's happened. lots of investors digesting headlines. the biotech issued a 2014 earnings forecast that was slightly below wall street estimates but it did manage to raise both its sales and profit forecast for years 2015 and 2017. investors are focusing a little more on the short term outlook, though the stock is down. remember, this is a stock that's up for the year, up around 70% over the course of the past year. they made the presentation at the jpmorgan annual health care conference. that's where brian sullivan is. he will be there live on "street signs" in the next hour. sue, back to you. >> let's check the oil and gold market, especially given the fact we are down triple digits now in the dow jones industrial average. we have a fractional loss in the oil market. crude is down 32 cents. comex gold up modestly. investors watching for a final

deal with iran over its nuclear program. they got that final deal. that's what had been affecting the oil market. the gold market saw a slight bid in it as we saw the dow jones industrial average sell off. we will keep a very close eye at the final trade. ty, back to you. >> thank you very much. what do you call a group of top ceos? a gander, a pod, a flock? a cluster? whatever you call it, we have a lot of them on cnbc today and they were all basically singing the same kind of tune on the economy. our senior economics reporter steve liesman here with what the leaders of some of america's biggest companies are saying about their outlook for the year. >> senior bird watcher. yeah. america's top ceos on cnbc today were singing the same tune about the economic outlook. it was an upbeat song. unfortunately, it does contrast a bit with the song being sung by ordinary americans who continue to sing some variant of the blues. >> when you're going to hire another 11,000 employees worldwide, another 5,000 employees to support our

increasing production in the united states. >> you see broader economy, you see the job growth growing beyond ford and the auto industry. >> absolutely. we are seeing it in all sectors we support, especially housing and all the construction business, the energy sector. >> my belief is that there should be fewer headwinds in 2014 than there were in 2013. >> that sentiment echoed in just the past hour by atlanta fed president dennis lockhart who said he is more confident than he has been in years in his forecast for stronger growth this year. lockhart saying quote, compared to previous januarys, we are entering this year on a more solid economic footing. real gdp will expand between 2.5% and 3% and i would not be surprised if we achieved results at the upper end of this range. those comments not out of line with consumer attitudes, maybe just a bit ahead of them. take a look. consumer attitude in fits and starts, remaining well below '07 levels. even below some of the better levels we have seen earlier this year. here's the economics of it all.

better ceo confidence, if it leads to stronger investment and hiring, can lead to better consumer confidence numbers and that could lead to more investment and hiring. at the same time the dangers that companies get too far in front of average consumers or still play the waiting game which is to say the consumers lead the way and that's been a recipe for really lack luster growth. >> thank you very much. it says up here out with steve. i don't mean it personally. it says out with steve, right? in with sarah eisen. there's the trade right there, baby. who covers -- you have covered big consumer names for us. there's a lot of information today about a big deal about who is buying our drinks. >> it gets right to consumer trends. we are talking about the japanese company suntory offering a 25% premium for beam. driving this higher price, beam's crown jewel is maker's mark. you may have heard of it. strong brands. the stock beam is up almost 100% since it debuted in 2011, came

out of the three-way split of fortune brands. the story here, the industry almost back to pre-recession sales growth. according to trevor sterling, an analyst at bernstein research, in the united states, spirits consumption is actually growing faster than wine drinking, beer drinking is actually shrinking. we should note that beer is still the giant in terms of revenues, in terms of profits and in terms of volumes but spirits are seeing some high growth. they're hot right now. it's high margin products, especially when you're talking about premium varieties which is very in vogue right now. another reason for the high price of this deal, beam was seen as one of the last men standing at least when it comes to publicly held spirits companies. other analysts are pointing to brown forman, you know them for johnny walker, also constellation. it's mostly a wine and beer company but does have a small spirits biz. otherwise, a lot of these big companies like bacardi and remy

martin are family controlled and don't really show signs of deal making. hot space, hot industry, particularly in the united states, and just the lack of assets or properties out there for deal making. >> i did a story a couple years ago on the samuels family which founded and is still involved with maker's mark. their biggest growth market at that time was asia and specifically japan. bourbon had never been a big player in japan until maker's mark. bet that was one of the reasons why suntory got so interested. >> japan is interesting, aging population, less drinking. a lot of japanese bands, kiran has gone after emerging markets in the spirits business. we have seen a lot of it. diagio is the industry leader and has been playing the emerging markets acquisition, very active in that as well. u.s. has been an interesting bright spot. >> japan, welcome to kentucky. good to see you. sue, down to you. some big news today out of detroit. phil lebeau has it from the auto show. >> a big change for ford's

best-selling f-150. i'll tell you what it is. we'll talk about ford's big gamble and what it means for the company. by the way, shares of ford up 5% in the last week. >> yep, and up about 1.5% today. you know, talk about vigorous debate. take a look at this. a parliament where that debate got a little bit out of hand. see who's fighting and why in two minutes. [ male announcer ] this is the story of the dusty basement at 1406 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall off roble avenue. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪

♪ this magic moment at a company that's bringing media and technology together. next is every second of nbcuniversal's coverage 0f the 2014 olympic winter games. it's connecting over one million low-income americans to broadband internet at home. it's a place named one america's most veteran friendly employers. next is information and entertainment in ways you never thought possible. welcome to what's next. comcastnbcuniversal.

welcome back to "power lunch." the losses in the dow are accelerating, now just about triple digits right now. leading the way lower here, exxonmobil and chevron as oil prices fall on an agreement with iran that takes hold next week. also check out shares of disney, nike, microsoft all lower on the session as well. that's helping to push that dow towards those session lows. back to you. >> thank you very much. punches and water bolts became part of the debate in turkey's parliament over the weekend, stemming from the contentious process there of appointing judges and prosecutors. looks like the cnbc newsroom. no, just kidding. this wasn't even the full parliament. it was just the justice committee. sue? >> yikes. all right. lululemon getting slammed today. they hit a new 52-week low, now down almost 16% at $50.08. the upscale yoga retailer

cutting its outlook for the current quarter. it says that sales have been off and been slowing and then there were the controversial comments by its founder. stock really getting hit. >> down 15%, almost 16% right now. speaking of a different kind of stock, moving the other direction today, ford shares moving up by better than 1%. the automaker gearing up for a dramatic makeover for its bestselling vehicle. phil lebeau speaking with the ford ceo about it today at the detroit auto show. phil? >> reporter: you know, i'm not sure the public outside of the auto industry fully appreciates the move that ford is making with the f series. this is a bit of a gamble and a big step in terms of fuel efficiency. the new f series was unveiled today with one of the more dramatic reveals we have seen ever here at the detroit auto show. they are going with an all aluminum body. that means that they are stripping out about 700 pounds out of the weight of the f-150.

this is going to be an all aluminum alloy f-150 that has been tested offroad. by the time it goes on sale later this year, ford says it will have ten million miles being tested, and they have sold more than 763,000 of the f series last year. remember, this is the bestselling vehicle in the country for 32 straight years. the question is whether or not consumers will look at the aluminum frame and aluminum body and say sure, it will hold up, it will be durable enough. the ceo thinks it's not a question of whether people will embrace this. >> the response has been fantastic. of course, a real value proposition for the f series is the aluminum cab and aluminum box. it will save us over 700 pounds. we can downsize the engine, improve efficiency plus all the capability. the aluminum pound for pound is tougher than steel. >> reporter: as you take a look at shares of ford over the last month, it's down over the last month but up almost 5% in the last week. i have to tell you, two things.

the f-150, when they do the final fuel efficiency ratings is likely to be well above 25 miles per gallon and second of all, i have not seen alan mulally this relaxed in a long time. i think he feels very good about the decision he made to pull out of the microsoft ceo search because he has not been this relaxed in a long time as he walks around here. >> that's very interesting to hear. he's probably delighted he doesn't have to answer questions from you, who asked him very directly last time about that very point. let's switch gears here and talk about a bizarre story of a southwest aircraft that landed at the wrong airport. how does this happen and didn't something like this happen not that long ago? >> reporter: yeah. it seems to be happening places where i used to live. last time it was wichita, this time in branson, missouri. i used to live in central missouri. this is a case where the southwest pilots went to the city airport instead of to the

commercial airport where southwest has service. this was a flight from chicago down to branson. there was nobody hurt and the plane landed and more than anything else, it's not only embarrassing for southwest but now you have the ntsb getting involved and saying how is it that the pilots, with all the technology that's involved nowadays in these aircraft, how could they land at the wrong airport. second time we have seen this in the last couple months. >> that's what i thought. i remember it was wichita. i hope all those people made it to the dolly parton show that night. thank you very much. >> reporter: you bet. >> sue? we are at session lows. the dow jones industrial average now off about 112 points on the trading session. that's pushed people into bonds and the yield on the ten-year is dropping. we're at 2.83%. coming up next, more on the markets plus it is called the woodstock of health care. the biggest health care investing event of the year is under way. eli lilly stock is featured. it went nowhere in 2013 but how about 2014? the company's ceo opens up his

medicine cabinet exclusively for us from that big meeting. and the health care sector a leader in 2014 so far. dominic chu is looking at the best performers. >> they were leaders in 2013 as well, the second best performing sector in the entire s&p. but health care has a whole different concept of components, insurers, drug companies. we will go through those and their performance next on "power lunch." start the engine... and shift through all eight speeds of a transmission connected to more standard horsepower than its german competitors. and that is the moment that driving the lexus gs will shift your perception. this is the pursuit of perfection. i worked a patrol unit for 17 years in the city of baltimore. when i first started experiencing the pain, it's, it's hard to describe because you have a numbness... but yet you have the pain like thousands of needles sticking in your foot. it was progressively getting worse, and at that point i knew i had to do something. when i went back to my healthcare professional...

that's when she suggested the lyrica. once i started taking the lyrica, the pain started subsiding. [ male announcer ] it's known that diabetes damages nerves. lyrica is fda approved to treat diabetic nerve pain. lyrica is not for everyone. it may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new, or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision, muscle pain with fever, tired feeling, or skin sores from diabetes. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. ask your doctor about lyrica today. it's specific treatment for diabetic nerve pain. to hear more of terry's story, visit lyrica.com.

afghanistan, in 2009. on the u.s.s. saratoga in 1982. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. let's get you up to date on

the markets. we're off our lows, not by much. we were down 112 points, now down 97 points at 16,339. it's a fairly broad-based decline, not just in the dow but in the s&p 500 and the transports are now down just about 50 points on the trading day. let's take a look at some of the dow losers so far today. they include exxonmobil which is off 1 2/3. 1.5 drop for microsoft and for chevron as well. ty, up to you. >> thank you very much. it is the biggest health care investing event of the year. jpmorgan's health care conference kicking off out on the west coast. health care, a leader in 2014, almost across the board. it's been kind of a stumbling 2014 but there you see health care up. hmos, bioteches, hospitals all leading the market. dominic chu looking at the best stocks to watch. morgan brennan taking us inside

the drug pipeline to look at which may be the next big best for investors. dominic? >> let's talk about this. health care stocks are helping to pace the gains higher in the market again this year. they are one of the few sectors that are performing well. the sector is up around call it 2%, 2.5% to start the year in an otherwise mostly down market. but which health care stocks are the big movers? among the best performers so far this year, pharmaceutical drug company forest labs up 15% helped along by its purchase of privately held avtallis. then there's a hospital operator, tenet health care up 11%. medical device maker boston scientific up 9%. so within health care, a drug company, a hospital company and a services company and medical device company that are all in the tops here, in contrast to last year when all the gains were driven by a lot of the big biotechnology names. in 2013, four of the top six biggest gainers in the s&p health care index were biogen,

vertex pharmaceuticals, up between 77% to 115% on the year. traders are looking for volatility and opportunities. they still look towards these biotech stocks that are very up and down. look at intercept pharmaceuticals which soared over 500% last week on some positive test results for a liver drug. still, though, in 2014, it's the older, more established gains that are getting more attention. at least for now, they seem to be doing pretty well. >> thank you very much. let's transition to morgan brennan, who has been looking at which companies might be the next big breakout stars in biotech. >> so first a little background. the fda has four special high priority pipelines for drugs that could potentially be groundbreaking. here's where it gets interesting. the approval rates tend to be higher for drugs in these pipelines. for example, the fda's first cycle approval rate for drugs that receive priority review in 2013 was just about 100%. drugs that weren't in priority review, roughly 50% rate.

that's looking at fda data. one designation that's really getting attention, breakthrough therapy. since the fda rolled out this program in 2012, 37 drugs have made that cut. cancer compounds represent the largest group with 12 drugs, followed by nine drugs to treat so-called orphan diseases and six drugs falling under the anti-infectives category. the company that snagged the most designations, johnson & johnson. keep an eye there. other drugs recently welcoming expedited status, peregrine pharmaceuticals which just received fast track status for a drug tied to lung cancer. also, priority review for cubist pharmaceuticals new investigatal antibiotic as well as a new drug for goshe disease. let's not forget, galectin therapeutics which scored a fast track green light.

this makes it a competitor to intercept pharmaceuticals. >> that was the one that was going way up last week. >> it was. this one rode its coattails ever since then. >> sue, down to you. >> thank you very much. eli lilly shares moving higher this morning, the company announcing it's reacquired the rights to an experimental migraine drug. over the past year, shares are down more than 1%. live and exclusively joining us from the jpmorgan health care conference in san francisco is john lictlighter, president and ceo of eli lilly. pleasure to have you with us. >> nice to be on the show. >> let's talk about the pipeline which will lead us into this acquisition you did this morning. you know, you have lost some major patents in the last couple of years and analysts on the street have noted that have yyo been trying to build up that pipeline but that comes at a cost. where is the pipeline for lilly

right now and what has the cost been to the bottom line? >> well, today we think we've got the strongest late phase pipeline in our history. we have over 40 molecules or nearly 40 molecules in what they call phase two and phase three development. contrast that with a total of seven molecules in phase two and phase three ten years ago. so in the last decade, we have made substantial investment and have seen extraordinary productivity from our labs to bring the kind of late stage pipeline we have today. last year, we made four regulatory filings in major countries around the world. we could have as many as three drug approvals and launches this year, two potential new medicines for type 2 diabetes and the antibody we acquired when we bought imclone five years ago and we hope to gain approval for its use as a single agent in second line or advanced gastric cancer. >> i note your costs have been

elevated because of some of the things that you just highlighted. when do you think costs will normalize in the near term, the next couple of quarters? >> well, we have had obviously to invest in r & d even as we enter this very difficult period starting in 2011. we are losing all this revenue from these patents expiring. in the guidance that we provided for 2014 last week, we showed a significant decline in the absolute level of r & d spending this year frankly because many of these programs have completed phase three, which is where the big bolus of spend lies. we have made commitments to our investors that if we launch new products and put these patent expirations behind us, we will return to margins that look more like our margins have historically later this decade. >> tell me about the acquisition or better said, the reacquisition of the migraine drug that you originally licensed out to i think it's

arteus pharmaceuticals. you are're taking that back in house, as it were. what are your hopes for that particular drug or molecule? >> first of all, we have not released the data yet. the data on which we made the decision to acquire the molecule was based on a randomized phase two study looking at prevention of migraines or the frequency of migraines in people that are particularly prone to getting migraines. we hope to publish that data in a major medical journal later this year. but i think beyond the interest in this molecule and this pathway as a means to treating migraine, is the idea that is behind this, which is lilly partnering with venture capitalists, in this case, atlas, in order to share risk around assets that may come from our laboratories or from other sources. biotechs or academic laboratories. take these molecules to proof of

concept, then with a positive proof of concept, monetize that, in this case by doing the sell-back to lilly. we think it's a very interesting way of really expanding the pool of molecules that we can consider for entering into phase two. >> that's one of the reasons why the stock is up today. you are obviously a very global business, but i would like to broaden it out very quickly as we wrap things up. for your sense of how the economy is doing, from your office and from what you hear from people on the ground, how does the economy look to you? are we in a slow and steady recovery? >> well, i think it's still a mixed bag globally. i think we are starting to see some resurgence in europe. it's still a very challenging place for our industry to operate. we see tremendous opportunities in japan and in china. in the u.s., i think the major economic news for us is the implementation of the aca.

frankly, we don't see any significant impact that it's going to have this year but i think we are going to continue to follow the evolution of the aca to see what sort of insurance plans do people accept, what sort of drug coverage comes with those plans. we want to make sure that people who are insured in this country have access to innovative medicines. >> thank you very much for joining us today. appreciate it. good to talk with you. >> thank you, sue. nice talking to you. >> up to dominic chu for a market flash. losses are mounting in the s&p 500 as well as the dow, like we told you. the index is at session lows right now. pressuring the index, you got names like intuitive surgical, also mckesson on its failed bid. scripps network's talks break down following kohl and the gap also lower as well. overall, those are the names heading lower and driving the s&p towards the levels we're seeing right now. back to you. >> thank you very much.

that has the dow jones industrial average off about 106 points. we did see a brief movement in the gold market right before the close. we finish up about $4.50 on the gold market. we had some slight gains in the silver market and also in the copper market so the entire metals complex is pretty much on the upside. as for interest rates, interest rates have been moving lower in today's trading session because of the sell-off in equities. keep in mind, it's a heavy earnings week and that's going to roil the markets maybe to the positive side today. it's to the negative side. but that volatility has sent people seeking solace in the bond market. we have yields in the ten year in particular, i think it was 2.83%. you're up to date in the bond market. ty? >> that is exactly what it was. what a little dip for that yield on the ten year bond from about 3% just last week to 2.8%. target's ceo speaking for the first time since the retail giant's massive data breach.

exclusively, he did so with becky quick. what's he doing now to prevent another attack and what does this all mean for shoppers and investors who own those target shares? target not alone, of course. neiman marcus the latest retailer to fall victim, hackers getting access to customer credit card data. what can businesses do to protect themselves? how about hacker insurance. what is it, what does it protect, how much does it cost? we will speak with one company that provides it. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal

to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. sorry to interrupt, i just want to say, i combined home and auto with state farm, saved 760 bucks. love this guy. okay, does it bother anybody else that the mime is talking?

frrreeeeaky! [ male announcer ] bundle home and auto and you could save 760 bucks. alright, mama, let's get going. [ yawns ] naptime is calling my name. [ male announcer ] get to a better state. state farm. [ male announcer ] get to a better state. at a company that's bringing media and technology together. next is every second of nbcuniversal's coverage 0f the 2014 olympic winter games.

it's connecting over one million low-income americans to broadband internet at home. it's a place named one america's most veteran friendly employers. next is information and entertainment in ways you never thought possible. welcome to what's next. comcastnbcuniversal. welcome back to "power lunch." the dow transportation stocks are getting hit hard. they're near session lows right now. leading the index lower, a trio of airlines, alaska air, southwest and jetblue. also check out fed ex and jb hunt transportation. remember, they are to the downside. earlier today, they did touch a record so a quick turnaround for those transport stocks. back to you. >> thank you, dom. the target ceo gregg

steinhafel speaking for the first time since the company's cybersecurity breach exclusively on cnbc with becky quick. the retail giant under fire for the number of days it took to initially disclose the hack attack to its payment system, exposing millions of credit cards and debit card numbers. some of the information stored on them. steinhafel said he was devastated when he heard about the attacks and is making the data breach his top priority. he also spoke about what businesses need to do in the u.s. >> in the united states, we are using stripe technology and that's old technology. there is a better way and it's called emv technology. >> is that the chip? >> that's the chip technology that's very pervasive and a well-established standard globally throughout the world. we think it's time for america to make that commitment to get to that standard. there has been some discussion about end of 2015. we think it's important that we get there as a nation and we

want not only to participate in that conversation, but we want to lead in that conversation, too. we think it's really important that we have safe and secure environment and that chip technology is the right technology and we should adopt that. >> target is not alone. neiman marcus also getting breached. the upscale retailer confirming it was a victim of a cybersecurity breach in mid-december. an undisclosed number of customers' cards were compromised in that one. sue herera moderated a big panel at the retail federation conference yesterday. the nrf calling for tougher security standards that could mean more spending for the industry at its banks and business partners. just how vulnerable are businesses to hackers? basically anyone with an internet connection can be at risk. david duragios is vice president

at burns and wilcox, a specialty insurance wholesaler, and they sell hacker insurance. david, what is hacker insurance? how much does it cost for a typical company? >> hacker insurance is commonly known as cyber and privacy liability. before we even get into identity theft, it's all about the post-breach response services. everything we have seen target do in wake of the breach, bringing in a forensic team to help identify the size and scope of the breach, having a team draft notification letters and send them out to all affected individuals so they're in compliance with whatever state and country those individuals are located in, setting up a call center that can service any customers that have been breached and monitoring credit, fraud alerts and freezes. that's critical if there has been a breach of credit and debit card information which we have seen, or social security numbers. >> the coverage basically covers the cleanup of the mess, right? that's what i hear you describing there. >> absolutely. these policies evolved tremendously since they were first introduced. first they were all about

identity theft. now it's about cleanup and how to maintain the reputation and stay in compliance. >> do you also inoculate the company that has been breached from financial liability lawsuits brought by individuals whose information has been breached? >> absolutely. you are going to see lawsuits coming from any affected individual as well as the banks. with regard to chase, they reissued two million payment cards. it's a great organization. they won't do that out of the goodness of their heart. they will be coming back from wherever the breach occurred from and they will want to recoup that money. >> how many companies have bought this kind of coverage and what is the typical profile of a company that does? >> this area of specialty insurance is greatly underutilized across all business. we are seeing the strongest growth from the health care service providers as well as small and midsized businesses. there has been a misconception about the price regarding these policies.

you can get policy, an annual policy for as low as $500 a year. of course, it depends on the industry segment that you're in, the type of information you're storing. but they are incredibly affordable. a lot of businesses just don't realize it. >> affordable at that level. obviously for a larger company, the premium would go up much higher, wouldn't it? >> that's correct. it really depends on the type of information that you're storing. if you're in the retail space, you are prone to serious attacks and we have seen that going back to 2006-2007, when t.j. maxx was exposed and had to notify 94 million customers. obviously with an organization such as that the price will be considerably higher than a midsize organization that is operating in the manufacturing industry. >> thank you for being with us. appreciate your information there. in today's yahoo! finance question of the day, we asked how concerned are you about your data. 62% of you say you are very worried. companies and the government need to do more, just more. 13% say not worried. 25% say there's no way to stop hackers.

sue? we have another triple digit decline in the dow jones industrial average today. we will talk about the market and show you some of the big movers coming up. they include gilead sciences, principal financial, first so lar and harley davidson off off better than 2%. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪

or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. a research tool on thinkorswim. fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that parker. well, did you know auctioneers make bad grocery store clerks? that'll be $23.50. now .75, 23.75, hold 'em. hey now do i hear 23.75? 24! hey 24 dollar, 24 and a quarter, quarter, now half, 24 and a half and .75! 25! now a quarter, hey 26 and a quarter, do you wanna pay now, you wanna do it, 25 and a quarter - sold to the man in the khaki jacket! geico. fifteen minutes could save you... well, you know.

before we get you back to "power lunch," here's what's coming up in "street signs" in just a few minutes. special bicoastal version here at the jpmorgan health care conference with the ceos of several companies, along with a name you may not be familiar with which is making money leasing space to the biotechs. plus with the triple digit market decline, mandy has jim paulson on to talk about the

market and something very cool for you car lovers. phil lebeau will show you the new bentley. big "street signs" bicoastal in a few minutes. now back to "power lunch." >> see you at the top of the hour from beautiful san francisco. all right. it's not so pretty down here on the floor. bob pisani joins me at post nine. we just touched new session lows, down 118 points. >> people wonder why this is happening in the middle of the day because we started off fairly quietly. take a look at the dow industrials, moved down the middle of the day. lot of people pointing to the fact goldman sachs was cautious on equities, lockhart came out, gave what i would call a tepid analysis of the u.s. economy, not full steam ahead, not stop. markets just drifted lower on that. the dow yields on the ten-year drifted lower as well. we were just talking about this, about the fact that some people are speculating, put up the full screen, about the fact that since we had a good move into treasuries so far this year, pension funds might be taking profits on their stock gains, then using the money to rotate

into longer dated bonds which now offer higher yields. >> almost 3.8%. >> pension funds don't report these numbers so we are left to sort of speculation but it fits the facts as we know it. meantime, sectors are having problems right now. put up some of the energy stocks. want to point out, all year we had problems, no matter what you're looking at. these are today's declines. exploration and production, the drillers, anything are having problems. this has been a theme all throughout the year. another theme has been general weakness in the retail group. we saw some of the retail companies came out with comments today. a lot of the big names, none of these had any comments today. gap, kors, tiffany, coach. >> 4% decline in gap. that's a pretty big percentage move. >> these are just companies that are in this space today. we now know from the companies reporting that there have been discounts that have been continuing well into january and that are going to continue. express basically said they are having this issue all throughout the month of january.

it's not just they stopped on december 31st and decided they were going to go ahead and full price. they are discounting well into january. >> what they're really saying is they don't have any pricing power. they have no pricing power. they can't get the consumer into the store or online without some -- >> sales were fairly tepid in january. off 3%, 3.5%, with 50% off. we see the internet really biting now. >> yeah. could be. thank you so much. let's head up to the nasdaq. seema mody seeing some movers to the downside there today. >> losing some steam at the nasdaq, still above 4100. that's a key technical level that traders watch. in terms of the biggest losers, security names semantec downgraded. biotech names also under pressure. health care of course very much in focus as the jpmorgan health care conference kicks off in san francisco. a couple of winners in the

consumer tech space, f-5 networks the best performing stock on the nasdaq 500 and then there's two specific stocks stories. first up, a bold call on the street. maker bought is a consumer 3d printing division. and blackberry, the stock has been on a bull run this month but oppenheimer's downgraded to underperform is pushing the stock lower. on a separate note, the ceo of blackberry continues his hiring spree, today announcing a new leader of global sales at blackberry, eric johnson, who most recently served as an executive at s.a.p. back to you. >> thank you very much. you want five reasons why the dow is down today? here are five. exxon, disney, microsoft, verizon, chevron. all those companies taking hits today. more in two minutes.

so ally bank really has no hidden fees on savings accounts? that's right, no hidden fees. it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh... surprise!!! um... well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally.

and truecar users... save time and money. so when you're... ready to buy a car, make sure you... never overpay. visit truecar.com today. welcome back to "power lunch." three stocks are taking it on the chin today, in particular soda stream first off reporting preliminary lower than expected fourth quarter profits on lower than expected sales. also, lululemon cutting earnings and guidance for the current quarter and intercept

pharmaceuticals falling. it could be plain old profit taking or it could be that late friday, news came out one of its experimental liver disease drugs could be experiencing abnormal cholesterol levels rather than those taking a placebo. maybe possible side effect. that stock up more than 500% last week on positive data from that same trial. tyler, back to you. >> amazing move in intercept pharma last week. our next guest says the markets are being pulled down short term on earnings fears, coupled with valuation concerns. on the phone is christina cooper, u.s. investment strategist. welcome. thank you for joining us on short notice as the dow continues to melt away just a little bit. how worried should individual investors be about this sort of halting, stumbling start to 2014 in equities? >> well, this start is probably fairly appropriate given the kind of run-up we saw in 2013. recall some of the biggest

concerns moving towards the end of 2013 were about how scrappy the market had become. now we are seeing a good level of digestion plus today we are seeing for the first time significant fears in the stock market. but this should all be assumed to be fairly normal and natural in terms of the response to what we saw last year. >> one of the things that i'm hearing from traders and analysts down here at post nine is that there's a worry about valuations. are you worried about valuations? do you have those same concerns that some of your colleagues on the street have, or not? >> well, we recognize that valuations are stretched right now in general for u.s. stocks, but that doesn't mean that there aren't pockets of opportunity. what we're recommending is that investors be far more discerning this year than they have been in the past few years.

that's because as the fed reduces its quantitative easing, its support, what we're going to see is a stock market that goes from being supported by asset purchases to one that's being supported by fundamentals. that means we won't see a rising tide floating all boats going forward. what we're going to see is stocks standing on their fundamentals so it's going to be a very different market environment. it will be much more stock tickers environment so investors should pay attention to valuations but shouldn't necessarily be fearful of them. they just need to be choosey. >> again, thank you for joining us on short notice. christina hooper. sue, basically what she said was don't freak, but be selective. when we come back, three of the biggest etf winners this hour. es tdd#: 1-888-648-6021 just waiting to be found. tdd#: 1-888-648-6021 at schwab, we're here to help tdd#: 1-888-648-6021 bring what inspires you tdd#: 1-888-648-6021 out there... in here.

tdd#: 1-888-648-6021 out there, tdd#: 1-888-648-6021 there are stocks on the move. tdd#: 1-888-648-6021 in here, streetsmart edge has tdd#: 1-888-648-6021 chart pattern recognition tdd#: 1-888-648-6021 which shows you which ones are bullish or bearish. tdd#: 1-888-648-6021 now, earn 300 commission-free online trades. tdd#: 1-888-648-6021 call 1-888-648-6021 tdd#: 1-888-648-6021 or go to schwab.com/trading to learn how. tdd#: 1-888-648-6021 our trading specialists can tdd#: 1-888-648-6021 help you set up your platform. tdd#: 1-888-648-6021 because when your tools look the way you want tdd#: 1-888-648-6021 and work the way you think, you can trade at your best. tdd#: 1-888-648-6021 get it all with no trade minimum. tdd#: 1-888-648-6021 and only $8.95 a trade. tdd#: 1-888-648-6021 open an account and earn 300 commission-free online trades. tdd#: 1-888-648-6021 call 1-888-648-6021 to learn more. tdd#: 1-888-648-6021 so you can take charge tdd#: 1-888-648-6021 of your trading. (voseeker of the sublime.ro. you can separate runway ridiculousness... from fashion that flies off the shelves.

and you...rent from national. because only national lets you choose any car in the aisle... and go. and only national is ranked highest in car rental customer satisfaction by j.d. power. (natalie) ooooh, i like your style. (vo) so do we, business pro. so do we. go national. go like a pro.

rough monday on wall street right now with the dow jones industrial average off of its worst levels of the day, but still down about triple digits on the session. we're down 100 points on the dow. the s&p is down about 12 1/2 points on the trading day which is a two-thirds percent move to the down side. the nasdaq down three quarters of a percent. there are a couple winners right

now. the u.s. natural gas fund and the market vectors gold miners. there was a winner as well in the biotech sector but now it is a loser, down half a percent on the trading session like a lot of other things in this market. >> a real choppy start to the trading year. see you when you get back home. that does it for "power lunch." >> "street signs" begins now. hello. welcome to a very special bicoastal edition of "street signs." i'm mandy drury. big story here at hq is the markets. let's take a look at what the dow is doing. it is currently down by exactly 100 points. however, brian sullivan is over there live in san francisco, a mile away from what's going on on wall street. he's at the 32nd annual jpmorgan health care conference and the biggest names in health care are there. he has a jam-packed can't-miss lineup for us, right? tell us exactly what you have on tap. >> you really s