josh, final trade. >> tan. >> doc? >> huntsman, hun. >> pete? >> under armour. >> stephanie? >> symantec. >> worst day for the dow since mid-august. "power lunch" has the story now. halftime is over. "power lunch" and the second half of the trading day start right now. we begin with a market alert and not the good kind. if you are long this market, stocks as scott mentioned, taking a beating. today it's not a mixed market. though that beating is across the board. take a look. destroy industrials down. 180%. and off those highs of yesterday, the nasdaq down about 0.09 or 38 points. one widely held company in your sights, microsoft. shares down 6% since december. so many analysts and stock watchers are focused on the search for a new ceo, we're going to forget about that

today. instead, our focus is on another big issue. windows. jim cramer is back today. he joined us yesterday, illuminatingly with seven ceos. he's got seven more from his list of bankable ceos. it's a list of 21. you wouldn't bet on a football team without knowing the coach. don't pick a stock without knowing the ceo. >> "mad money" man believes these are so strong and capable, it's worth investing in their stocks. on that primarily. first to sue at the nyse. sue? >> ty, you mentioned, dow, big loser of the day. off the lows of the trading session. when i came down off about 200 points. now down 184. 16,188.84. look at the ten year. we've seen yields move lower as money goes into the ten year note. 2.78%. haven't seen that in quite a while.

also the talk about china this morning. not only the pmi, but other issues as well which we'll talk about the shanghai index down today. down 7.5% in the past month. let's talk about all of this with bob pisani and cnbc's market analyst. good to see you again. the china data wasn't just the data that's spooking this market. there is a lot of talk china may be on the verge of its own subprime crisis. with a $500 million trust having to roll paper before next week. it's a big deadline, bob. what are you hearing about the worries about china? >> there's a lot of issues going on in general. this growth issue is going on. even though they made gdp numbers. issues about liquidity in general. the people's bank of china pushing a lot of money into the system ahead of the chinese new year. a little anxietyie around that, and the pmi numberg in below 50. that's contraction. these are defusion indexes. we were expecting something well

north of 50. emerging markets weak all year, weak again today. >> kenny, the other issue, technicals. >> in the earnings season, watching the earnings. haven't been, none have blown the roof off the bus. i think a little bit it's playing catch-up at the moment. right? yesterday the fed floats the idea about next week. has are they going to do? i think a little at moment, right, if they cut, earnings not as far as everybody thinks so far that the market will reprice. what you're seeing. people need to understand, not a sense of panic. not one of those days all of a sudden everyone's trying to throw everything out the window. not that. it is relatively calm, but it is certainly weak. >> one thing that happens when china weakens, big surprise, a problem with the yen. the yen carry trade is

important. the yen toenends to strengthen. borrow yen to invest in the united states have to turn around and cover the yen, they do it by selling stock. one of the reasons this is happening, people are forcing to sell stock to cover the trade. >> watch the chinese trust banks. the black swan. a lot of chatter about that in debt circles. something certainly i'm going to watch, gentlemen, as we continue to watch china. let's go uptown to seema modie and get the nasdaq check in times square. >> it may be a down day for the overall markets, two stanouts bulls are cheering on. netflix and f a 3 networks. the stocks moving higher on better than expected earnings. despite the big move, the nasdaq is still down about 40 points on the dpap still holding on to that 4,200 level. look at the biggest losers on the nasdaq 100. biggest ones, reporting earnings that beat expectations. guidance lower than expectations. talking about china. look at the chinese edrs

weighing on the nasdaq. down on the day, worse performing on the nasdaq 100. back to you. >> seema a big day for earnings. mcdonald's beating the street, but revenue came in slightly shy of estimates in december, same-store sales were short of forecast. nokia topping estimates with sales dropping more than 20% at its network equipment division. nokia announced sale of its mobile phone handset business, of course to microsoft back in november. and lockheed martin dropping 14% a year ago because of chargest at the latest budget cuts and job reductions. managed to beat profit forecasts and expects earnings to improve this year. now to dominic chu right here with a deeper look at defense contractors. dom? >> those defense budgets cut an overhang to a lot of companies. the new deal in d.c. could cleep

it all up. bruce tanner said he was hopeful 2014 wool see federal spending numbers bottom out. analysts at oppenheimer like the big names in the business. the so-called primes. earlier analysts at goldman sachs say it could be positive given the budget deal, improving margins and deployment of cash. general dynamics share rocketed the higher yesterday on cash headlines. ged buy back sharing of stock in this current quarter. attention now turns next week to the big names reporting there. on wednesday, you've got aerospace giant boeing delivering results nap stock up 90% over the course of the past year. on thursday, combat air maker drummen up. and before the bell also the tomahawk cruise missile raytheon, up 47%. beyond the headline number, keep a close eye on those management commentaries about the future,

where they see business, and, of course, any possible shareholder capital return plans. tyler? >> all right. thank you, dom. meantime, down to sue. checking in there. sue? >> yep. doing housing right now with the dow now going back towards its lows of the trading session. following that story. but another big story for us said to existing home sales. up 1% after three straight months of declines. diana olick is than beat in washington. hi, diana. >> reporter: hi, sue. sales up slightly, but clearly slowing down at the end of 2013. with both nofr and december numbers the lowest of the year. december came in at 4.87 million uns an allized but we now have the full year numbers and the totals were 5.09 million for 2013. december slower than thatover allyear pace, in contest. 5.09 million, highest volume since 2006. 2006, 6.5 million homes sold. affordability is weakening due

to fast rising prices, and not so fast rising incomes. the median home price up 11.5% for the year and share of all cash buyers hit 32% in december. realtor chief economist calling that phenomenal, very, very high, pushing the much-needed first time buyers further out of the market. share down to 27% of december sales snap the lowest since the realtor's began tracking that share in 2008. back to you. >> okay, diana. thank you. dom's back. a market flash for us. >> sue, this time on noble corps. the worst performing stock in the s&p 500. offshore drummen report drew more than 20% from last year. investors are worried that the company says rig utilization was expected to drop this year. this company specializes in deep water russian. transocean and falling there as well on that news, tyler. back to you. >> dom, the countdown focuses on

cars. phil lebow, first up, toyota number one on car sales. how are they doing? >> 9.98 million sold last year making them about 200,000 more than general motors global sales for last year, tyler. basically it comes down to strength, u.s. still relatively strong for them. japan has come back. sort of stabilized in china. put all that together and have a company that not only is number one for 20013 but expected to be number one in '14 with sales totaling over s 10.3 million vehicles for the year. the first 10.3 million automaker in the industry. >> tesla moving into china. starting price, $121,000. plenty of rolls-royces and jaguars there. i don't think the wealthy chinese would plink at that number. do you? >> not at all. i said this during the "halftime report." $121,000 for the luxury market in china is a steal. selling the vehicles in march or april, already shipped there

right now. the two things to keep in mind are that the chinese market, number one when it comes to luxury sales and it's got a huge growth potential when it comes to electric vehicles. tyler, you've been over to china. have you seen the politician? that's why they're pushing electric vehicles. in the sweet spot of the market for tesla a few years down the road. it will take a while, they'll ramp up sales later. >> throw in an adapter plug so it works on the chinese car. and gm feared, hyundai most posts its first ever revenue drop in tleep years. what's going on? slowing down? >> a couple things hurting hyundai. biggest factor, the strength of the korean wan. relative to the yen in japan making it very expensive for them to build and to ship vehicles out of korea. you combine that with the fact other key markets including the united states. their capacity constrained. they could grow sales in the united states if they had more capacity. they don't have the capacity

right now. put that together with a portfolio that many are looking at saying, much improved compared to ten years ago, but a little, a little stale relative to a few years ago. so it's a competitive market now, tyler and they're feeling it in hyundai. >> phil, thank you very much. down to sue for news on guy hoop not just a pop star bought business guy, too. >> yes, he is. but his business may get, take a hit, ty, because for months, that guy, the teen pop star, california neighbors there complained about egg throwing and drag racing and now justin bieber may finally have to paper the piper. he's been arrested in miami beach and could be in serious trouble. plus, violence in the ukraine. things calmed down a bit but now are obviously flaring up again big time. we'll take you to eastern europe for that story, plus morgan brennan and the war on cancer. >> sue, there are two big parts to the story. first off, fighting cancer in a new and innovative way. secondly, profiting from the

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welcome back to "power lunch." shares of technology moving lower on comments from deal reporter with a noted lack of buying interest here in the company. that's what they're saying. if you recall two weeks ago, elling yit management, has about a 10% stake in this company offered to buy for $3 billion or $19 a share. riverbed rejected. the hope perhaps other bidders

would line up. right now one news outlet saying this particular item may not come to fruition. back to you, sue. >> dom, thank you very much. violence in the ukraine exploding once again. protesters lit fires throughout kiev early this morning. and this comes after two demonstrators were shot to death during protests there yesterday. the protesters want early elections. the president today called for an emergency session of parliament in essence, the fight is between those who want to align closer with europe, and those who want to be aligned closer to russia. while the ukraine burn, much of the media attention in the u.s. turns to this troubled young man today. pop star justin bieber. that is his mug shot, arrested early this morning for a dui, drag racing and resisting arrest in miami beach. he went before a judge a few moments ago. bond was set at $2,500. all right. see the white police van? in a couple of seconds, the biebs inside. this is video of him being

transported to the miami-dade county jail earlier this morning. and this next video of the car he was driving. it's a yellow lamborghini, rented. and he an expired license on top of all of that. and i don't know. perhaps i speak for some people in america when i say, who does this kid think he is? and, please, set a better example for your fans, and for the youth over there. tyler? >> all right, sue. >> over to you. >> agreed there. there's a monumental shift in the drug industry right now. in the fight against cancer. morgan brennan here now with more on this paradigm shift and the phrma companies leading the way. morgan? >> right, tyler. immunooncology, the buzzword and. will continue to be as some new drugs start coming to market. so immuno ompgology, cancer treatments 2.1. a new class of therapies using your own immune system to target cancer cells coupled with nor

traditional therapy could have prevent relapses and analysts say they represent a complete paradigm shift in how cancer is treated moving forward. we're still in very early stages for these drugs. bristol-myers squibb the pioneer here. shed its diabetes joint venture last month to focus on immunooncology. bmy one of the few drugs on the market. the company has a promising lung cancer drug. that's in stage testing. others with similar late-stage drugs, roche, merck, as 'stro zenica getting involved and some of the biotechs, several propositions, products in earlier stages. a small biotech, parse nehring with glaxosmithkline on melanoma treatments. others, selldex, and others, recently announcing it will

increainr rnd spending. >> nicely done, morgan. all those pronunciations. microsoft leads the list of names reportings after the bell and a lot of the focus remains on the new ceo and the search for that person, maybe it shouldn't? josh lipton is live in san jose with that. >> reporter: sue, yeah. soon at steve bomber announced he would step down at microsoft ceo investors focused on who would replace him. the issue for microsoft, said walter, isn't about a person but rather what to do with windows. which accounts for 30% of the company's profits. the operating system has been the foundation of microsoft's product line for 30 years. pritchard says it's waning in

relevance, fewer using pcs. mobile device, smartphones, tablet, are growing rapidly. microsoft is moving hard into the mobile market buying nokia's business for $7.4 billion, but it's struggling today. nokia reported sales at its device business dropped 29%. pritchard thinks the more successful strategy for microsoft to pare back efforts, get out of phones and tax and focus instead on enterprise opportunities. rick cherilyn agrees with pritchard that microsoft needs to rethink its business model but the most important question is who is going to be the next ceo. only an outside here has the courage and self-confidence to stand up to steve bomber and the board can fix microsoft, he says. sue, back to you. >> josh, thank you. so where do the analysts on. street stand on microsoft stock ahead of the earnings today? there are ten buys, or overweights. no sells. 21 holds. or underweights. ty? >> all right. you know, crack in the glass,

your apple i-phone is one thing. but crack in the glass of an apple store, quite another pap snow blower cleaning the store around fifth avenue made a mistake hitting one of the glass panels that surrounds the entrance. the store is still open, but the replacement cost to one of those glass panels, about $450,000. coincidentally, just this week apple store started offering repair services for cracked screens on the iphone 5c. and jim cramer's list of 21 top ceos. the players are so strong you might want to consider taking a look at the stock. >> yeah. today, march rolls along, tyler. excited about yesterday. charged up there. >> it was funchts i want to remind people. said it before. i'll say it again. you wouldn't bet on the super bowl without knowing seattle's or denver's coach and their history. you shouldn't pick a stock without knowing the ceo. >> we'll go through the next

seven. very exciting. >> cool. [ car alarm chirps ] ♪ [ male announcer ] we don't just certify our pre-owned vehicles. we inspect, analyze, and recondition each one, until it's nothing short of a genuine certified pre-owned mercedes-benz for the next new owner. [ car alarm chirps ] hurry in to your authorized mercedes-benz dealer for 1.99% financing during our certified pre-owned sales event through february 28th.

if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. you wouldn't bet on a football team without knowing a coach. don't pick a stock without knowing the ceo. >> words to live by there from jim cramer. new book out "get rich carefully."

i believe it is chapter five in which you look at the 21 ceos. we're going to play a little 21. we did seven yesterday. 21 ceos you can't afford to ignore. >> you will not bust with these ceos. >> with these ceos. >> yes. >> go through the list. why don't i let you introduce them way quick thought on them. then i know you want to drill down deeper on three. >> start with ron sheikh. panera bread. i put ron because a lot of people feel pa narp nera all th. sometimes the line is too long. sometimes high quality problem. i think he'll solve the problems. high-dollar stock but it will work over time. >> the next is indrin, we mentioned yesterday in association with our list of 200 movers and shakers who change business. >> yes. she is someone -- >> you love her? >> yes, i do. in nelson pelts is right, if he can convince her to split into,

say, beverages and food, then i would like it even more, but she's a rigorous think perp fanned she doesn't think it's right, i have to say, she's got a lot of things going for her including recognition to be more into healthy snacks well before anyone else. >> and manny -- >> bvh, under manny taken over tommy hilfiger and now calvin klein, how was brands. the shirt and tie market. not a stock you want to pick up today but he's generated tremendous returns, when a stock is down like that, buy them. >> a name i can pronounce. sally smith of buffalo wild wings. >> how many times have people written her off? recently a mcdonald's intrusion into the wing business. it failed. mcdonald's moving up, interest rates down. sally smith defied skeptics. buffalo wild wings i love to go to, many viewers love to, too. sally understands the mind of the consumer and the mind of the

sports-oriented person. that's where you go to watch the games. >> go the it all. >> favorite combo. >> three i know you want to spend more time on. a lot of restauranteurs on your list. dominoes patrick doyle? >> he comes in when domino's is ats 12 $12. he decides we have to make the pizza better, which requires to admit it tastes like cardboard. a remarkable -- and then use technology. she a technologist. a huge number of orders from dominoes done from the facebook page. and by the way, just so you know, my kids, they don't like to pick up the phone and say, like to go on the computer and do it. it's your own phone if you get wrong. >> i use my phone app for this. >> it's great! you know, it's outta there. i like the baseball -- >> and deborah -- >> largest owner of nursing homes. a stock that is to be bought

now. why? come down tremendously. a good yield. doesn't have any china exposure and sddeb is a remarkable reformer. >> and eric weisman. saying -- i don't know a she'll doesn't have a north face jacket. particularly kids. >> i have two for this weather. when it turns 9. i go to my giant orange north base park. 30, a little bess. finally a lightweight spring. this was one of the many coalitions, calls them coalitions of brands that eric weisman has put together. vf corporate, split the stock, a great performer. great winter play. again, the idea, not that these should be bought today. the idea, over time these are the coaches that have created dynasties. just as we would not think -- what would you think of the new england patriots without belichick? jags. i don't mean jaguars. just another guy. >> not the jacksonville jaguars.

>> no. they are just other guys. >> talk about the market more broadly. >> sure. >> you were pointing out even on this down day there are companies that have been defying in, because results are different, or because you call them cult stocks today. >> right. >> talk to me about that. >> certainly. the crisis is right now contained in china, but just people are starting to hear tab because the china trust, don't know the bank or the piece of paper up front. look at union pacific. on top of norfolk southern saying good things yesterday. the union pacific numbers are terrific now. not a real china play, although there is shipping that comes from the west to goes to china. every number is good and that stock has done remarkably well. netflix we know, a wonderful conference call. wonderful. very thought. it. people want to understand it they should tleed. and tesla. tesla when netflix goes up, these cult stocks, i call them cult stocks. >> right. sue jump in. you have a question for jim. he can hear you. >> wanted to go back to something i've been watching. you mentioned it yesterday, jim,

when we talked. that's the thrift industry in china. and this race to keep this one thrift from defaulting next week. the talk down here is that maybe china's thrifts, in their shadow banking system kind of might be on the verge of their own subprime crisis. do you think that's too extreme? because it seems to be weighing on the market today? >> no, i don't, sue. i think that's really the proximate cause of this. one of the reasons why, this chinese government is determined to get rid of the overproduction, get rid of the two -- of a cuculture that got risky. the answer, this is a crisis that is ongoing. because there's a january 31st wlooline when this piece of paper might default. and down to the names of the piece of paper, what happened here. we never want to be complacent after what happened in this country. panic is not a strategy. by day two or three people would

look at, an excellent report on cancer drugs at the top of the show. they'll look at bristol mires again saying this has nopg to do with china. >> by the way, jim, i completely agree with your assessment of p indra. >> i agree. >> and the tomorrow, seven more. you can read about them in nor detail in jim's new book "get rich carefully." we'll have him back tomorrow for more of the 21. sue? >> ty, down 203 points right now. as the stock market moves down, people are moving into other assets. like bonds and gold today. which is jumping. prices are starting to close and bertha coombs son the beat for us at the nymex. hi. >> gold today, right, sue, seeing safe haven buying, hitting a two-month high as we have seen the dollar here slip to a one-week low. some strong data out of europe. that's part of what's been weighing on the dollar index

today as the euro rose up. also, the yen today, very strong as well, and that has helped gold. gold seeing this safe haven buying today along with silver as well. there's also some talk maybe we might see more physical demand in india. talk that india may ease some of those tariffs they put on gold imports, and that could likely be bullish for the precious metal. back to you. >> bertha, thank you very much. the firm that vetted nsa leaker edward snowden, talk about that coming up. plus, hastings taking jabs at his rival over at hbo. and soaring on this big down day on the back of its blowout earnings report. now up almost 16%. back in two minutes' time with the dow down 210 points. in 1953. rea afghanistan, in 2009. orbiting the moon in 1971.

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xwlshgs a geloff in place. dow, biggest lost in six beengs down 206 on the dow. just down 211 points moments ago. s&p down 21. nasdaq down 41.

bob rejoins me at post nine on the floor of the new york stock exchange. losses accelerate. we saw a dip in interest rates once again. not a pretty day. >> you get all sorts of knock-on effects mostly because of the chinese pmi numbers. the s&p futures to show you. i watched what the markets are doing. 8:30 numbers came out. you see the drop overnight. that's the chinese pmi number came out. another drop as markets opened at 9:30. you get this pmi weaker than expected. you get knock-on effects. the yen strengthens. that worries people in the yen carry trade. you sell stocks and bonds go up, gold goes up and all sorts of effects. emerging market stocks another ugly day. hurt all throughout the year on chinese growth concerns. look at the chinese, fxi, main chinese etf down 4%. turkey, korea, brazil down 5.3, and 3% as well. here in the united states, sectors that we used to call risk on we don't anymore, but we see materials, financials industrials and energy leading to the down side and bertha

mentioned when it happened, bonds rally and gold basically also moves to the upside. sue, what's going on here is, we've had three weeks of chinese economic number, not just today. all a little disappointing. >> piling on. >> and these drop in new orders in the pmi indicates there might be weakness in domestic demand. that's what people are concerned about. >> i have to get up to seema in a second. >> at the los for the day. >> on the dow, yes. transports briefly ticked positive. interesting to see whether that -- >> unusual. >> very unusual. >> good rail numbers. >> right. see whether or not that holds, however. transports down just a fraction. you can almost call that unchanged on the trading session. all right. we also have a sell-off in the nasdaq just about a percent on the day to the down side. seema modie is back. seema? >> sue, at session lows here on the nasdaq as well. focus in on where the weakness is. for one, social media. facebook, twitter, groupon shares underpressure and

biotech, red hot stocks there trading lower, although analysts say despite the moves, bullish on biotech for the long run. two reasons. new drugs brought to the market and second a growth potential in biotech if the global company improves especially. on the winning side. if5 networks, ebay, surge on networks. turning to semiconductor and microsoft, tech heavyweight and coffeestarbucks. all three reporting earnings after the bell. >> seema, thanks. it's a decidedly negative session for both of the indices. all three major indices, actually. even the broader based russell down towards the low of its trading session. people are moving into the bond market and rick santelli tracking the action at sme in terms of the bond market and currency market seeing action today. >> moving in and plenty of

u-haul trucks available because nobody expected this type of move. it's been all downside in yields for 2014. look at intraday chart of tens, down ten in the tens. and the comp, just in the last three hours comp and a closing basis to december 10th. now november 29ble. closing in on two months. and twos to tens. big yield curve that everybody's watching, flattened to the tune of 231 basis points. all significant. now, want to talk about foreign exchange? look at the dollar index. today alone almost given back half its year. and the main call prit here, depending which of the trading card you're on is the euro is screaming because china's pmi was going south, but we're aiming for canada on the eurozone pmi. tyler, back to you. >> all right, rick. thank you very much. lows of the day on a couple of the stock market barometers, by the way. in the wake of the edward snowden catastrophe, the justice department is suing the company that conducts a large portion of

security background checks for potential u.s. government hires. eamon javers in d.c. with raekd. >> the economy, usis, a government contractor spun off from the federal government itself back in the 1990s. what they do is a lot of the background checks for these security positions that contractors and members mp the federal government get. now the department of justice is alleging they were in some cases fraudulently sending along background investigations that hadn't been completed as if they had. s am as 660,000 of those ever a multiyear period. and although edward snowden and also the u.s. navyyard shooter who was also vetted at one point by usis were not mentioned ex-sples italy in the actions, there are problems for the company in terms of these e-mails. look at some of the e-mails that have surfaced in the investigation. talking about flushing bad data to the u.s. government. shelves as clean as they could get. flushed everything like a dead

goldfish reads one internal usis e-mail. we talked to the company who said these allegations relate to a small group of individuals over a specific time period and are ichb consistent with the strong service record we earned since insnepgs 1996. since first learning of the allegations nearly two years ago we acted decisively to reinforce processes and management. usis is owned by a company called alltegty, mostly owned by provs den equity partners, sue. >> eamon javers in washington, thaum, eamon. appreciate it. today's power house takes us to the city by the bay. how far can your money take you in beautiful san francisco? we'll show ya. back here on the east coast -- is a segment of the high-end real estate market taking a breather? robert frank following that story. >> hey, sue. could be sales in the hachten, scorching last year. now prices are falling. inventories rising. we'll show you what's selling and what's not and what you can

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coming up on "street signs" at the top. hour, is fear back? asking smart guests. also as we copt to hear about store closures, is the traditional mall a dying breed? and we continue our look at mint. today it is nigeria, outside gains could be made, but also really outsized risks. that and of course lots more at the top of the hour on "street signs." back to you on "power lunch." >> thank you, mandy. this time san francisco is our locale. jeff is a top producer and partner with the mcguire real estate. give awe feel of the market

internals stats for single family homes in san francisco, fourth quarter of last year. average list price, $1.295 million. average sales price, $1.35 million. after days on the market, 36. 678 units sold in san francisco in the first quarter. jeff, welcome. let me just start quickly. the stock market is struggling right here. if it continues to struggle, is that going to affect prices and sales in san francisco? >> well, good morning, tyler. thank you for having me. i believe the first quarter of 2014 will be an extension of the fourth quarter of 2013. we are going to have limited inventory. just like we saw before. and i believe that will take supply and demand and be strog. going into the spring market. we'll see. inventory levels should rise. in our city, i think we'll be fine. >> we'll see. first listing 237 lake merced

listing, three bedrooms, 2.5 baths just over 2,000 feet. tell me tab and why you like it. >> wonderful. three bedroom, 2.5 bath townhome located in the lake shore district right next to san francisco golf club. it's in a park-like resort-like set wig a 24 hour gated attendant near the galleria, san francisco state, highway 101 and 280 close also. >> looks very clean. >> three-car parking. >> three car -- oh. brapd new bath. very nice. second listing, 150 and 152 vicksburg street. are these units recently sold as one. the list was about, a little more than $1 million. but they went for $1.3, 16,5 hun in taxes. 65 hun feet between them. herg them? >> no. beautiful victoria located off

24th street a lock and a half. world renowned for its shopping, strants. tech shuttles and so forth. they'll leave it at two-unit buildings i presume and also two-car parking because it is a two to a building. >> move on to powerhouse of the week. 49 caselli avenue, listed $1.99a but sold for $2.35. 3,000 square feet. looks nice, jeff. >> tyler, this was a spectacular four bedroom, 3.5 bath, full foundation remodel with using high-end finishes in eureka valley known for wonderful view, sunny neighborhood, close to the castro neighborhood. beautiful home. >> looks spectacular. obviously why it sold for about $400,000 above the list price. jeff, thank you very much. see you again soon. >> thank you very much, tyler. >> back here on the east coast, one important area of high-end real estate is, as it turns out,

cooling off. our wealth editor robert frank joins me with more. >> hey, tyler. talking about the billionaire sandbox known as the hamptons. a little less expensive. alities less. average price in the hampsons falling 26% in the fourth quarter compared to last year. median sale prices falling 15%. total deals falling 6%. deal in the hamptsen, still $1.3 million. average. ever optimistic brokers say just an anomaly. this year bound to look a bit worse. what's selling? well, look at this modern beach home, one of the top ten sales, and there are signs, however, worrying, of a deeper chill if you look at inventory. jumping 50% in the hachtens. one house on the market, 4.5 acre beach frontd. 7-the-6,700 square feet. guest suite, tennis courts,

beach, all yours for $45 million. tyler, look at this. >> whoa. >> at the markets, you and i both know from watching the hamptons of wall street, correlated markets. when markets go down, the hamptons goes down. i'm looking at, broke eers are not looking at, what's happening in markets today will have a direct effect there. that's what i'm keeping on. >> you better believe it. is the stock market going to affect sales? maybe not in san francisco so much but i bet in the hamptons. >> at right away. in the hamptons. >> robert frank, very much thank you. and a quick market update. what's happening here. first with what's going on with lockheed martin. reuters reporting a new defense diplomat report warning ongoing software maintenance reliability problems with lockheed's f-35 stealth fighter could delay the marine corps plans to start using the f-35 jets by the year mid-2015. so, again, those earnings out.

outlook issues and now this report from reuters, too, and those shares, lmt down at session lows. back to you. >> and making a new session low, dow jones industrial average. down 222 points on the dow jones industrial average, and that's about 1 1/3%. seen the ten year yield make new session low. so we're seeing the knockoff effect of the sell-off in the dow, s&p and nasdaq push interest rates to their lows of the session, 2.77%. the dow is down 225. s&p down 23 points and the nasdaq down 47. more market coverage in two minutes' time. fifteen minutes could save you fifteen percent or more on car insurance. yeah. everybody knows that. did you know there is an oldest trick in the book? what? trick number one. look-est over there.

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welcome back to "power lunch." just joining us, ugly day for the bulls. dow jones industrial, s&p and nasdaq at session los. moments ago down 232 points. now down 227 points on the dow jones industrial average. the nasdaq and s&p also in sell-off. we're going to talk markets here. dominic chu is with me and art

carbon with shin as well. art, put out your midday note and basically said markets are in correlation mode once again. they have not been doing that recently. is this all about china or is there more to it in your book? >> it's about 75% about china, and that's the heaviest thing. the chinese manufacturing index came in lighter than expected. it was below 50. that, contraction. having trouble in the banking system, shrugged it off, lunar new year coming up. one-third of the population flies around. drawing money out. that's what's causing the tightness. >> do you believe 2345? >> no. because if you read the equivalent of the chinese beige book, one of the sentences translates into at least, better at latin, but if my understanding of the chinese translation is correct, it said the credit transmission system may be breaking down. so that makes you think they have a bigger banking problem. that spread into the currently markets, where things are

topsy-turvy. >> exactly. >> the euro is sailing. >> yen. >> japanese yen, bob noted several times, the carried trade. more importantly, a lot of hedge funds. when prime minister abe came in and said i'm going to drive the yen down, they went all-in. so they're getting crushed on the reversal, and so it's spilling through all of the markets. >> and ty and dom? >> interesting, tyler, you and i sat there. >> writing on the wall tht jiggering agents, jumping back and forth but there are 460 down issues in the s&p 500. so the vast majority of it is all in the red. tyler, the sectors. i asked you and being the market veteran you are, you knew when i said exactly, one sector in the green today. >> telecom services. >> you can see they're up just a little bit. but for that, it is all red, and as you pointed out, in the s&p

500, but for netflix which is the best performer. >> think what it would be's down 1 1/3%. in net flik wasn't up 16%, f5 not up 6%, all the companies weren't up, you'd see losses accelerate further to the down side. don't forget about the dow. >> worst day since august for the dow and for nasdaq. >> just four stocks in the green now. at&t, verizon, mcdonald's, merck, united health care unchanged. >> weigh in on that, bob. >> strange disparities. not just today and what's going on in the major indices. art and i talking about it in daily reports. dow is down 2.6% for the year. transports are positive. russell 2000 is positive. >> and you usually don't see the dow and transports -- >> unusually large disparageies in the markets. railroads have become in very well. shipments terrific, even as coal

shipments dropped, railroads strong. odd to see disparities and we've been pointing out the fact stocks are diverging. certain groups are doing better even with insecter, a decent earnings report, hold up. if you don't, guidance poor, they sell off quickly and the market isn't moving in tandem. correlations last year. everything moves in one direction, breaking down now. >> art, tell us what history tells us about the fact that the previous year was so stellar? i mean, we had close to 30% in the s&p, better than 24% in the dow jones industrial average. so perhaps this should not be unexpected? >> well, you know, we're over extended to some degree, and overbought. but i think you've got to look into next week. there's got to be a multiday phenomenon. one day won't make it all. >> seema? >> that's the big question, sue. are we on the cusp's a correction of some sort? look at the nasdaq. one has to take a deeper look to understand where we're seeing the losses, because we do have

standout stocks like netflix, f5 networks and ebay. those stocks rising on the back of better than expected earnings, but it's biotech, social media. certain subsecretary of sta sec. >> and folks, a busy afternoon with two hours to go before the closing bell. don't go anywhere. that will do it for "power lunch," sue. >> that's right. "street signs" begins after a quick break with the dow down 220 points. we will see you tomorrow on "power." (vo) you are a business pro. seeker of the sublime. 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...

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and welcome to "street signs," everybody. nervousness seems to rule the day. we are down on the dow the most in about five months. you can see down 229 points. that's about 1.4%. there's not one big story out there today, folks. rather kind of a conglomeration of a bunch of stuff. overnight china manufacturing. the pmi number coming in weaker than expected. that got people spooked. then, i'm not sure we ever, mandy, talked about the argentinean peso. that's taken a better than 15% haircut. new emerging markets concerns. turkey still out there. a big down