if that moves, we will rally. >> we are watching every asset class, whether it's gold or bonds, stocks, emerging market equities. europe was a sell-off. worries about asia, china, economic data coming out. so much to keep an eye on into next week. have a terrific weekend. that's all for us. "power lunch" begins now. "halftime" is over. the second half of the trading day gets under way right now. "power lunch" is all over it. >> you bet we are. the big question this hour, of course, is this. is this the start of something serious or are we actually in the middle of something serious, namely a correction? we have a whole lot of great guests coming up, including our friend jim cramer, who is back today, ready, set and game to discuss that question and more. here's where we stand right now, folks. the dow industrials a little bit off their lows. nevertheless, down another 1% today, just above 16,000 as you see there. s&p hanging just above 1800, down 1.3%. the nasdaq going down for the

ride, down 1.5% at 4155. there are ways to win while the markets drop and we will look at the etfs, they kind of go the other way. we are talking about ways to short the emerging markets without taking on too much risk. it's tricky but you can do it. and signs, signs, everywhere a sign as the old song went. we will look beyond the indexes and the data at some other key stats like trucking and shipping activity to get a different view of what's really going on with the u.s. and the global economy. first, though, let's check in with sue at the nyse. >> it's a very unpleasant day for the bulls once again today. ty showed you the numbers just a minute ago but let's take a deeper look at the dow intraday. take a look at that chart. we are off 200 points plus on the dow jones industrial average. that is just a tad off the low of the session. we have been deteriorating throughout the day, really. the transports, i wanted to highlight because they are really getting hammered today.

we are now off better than 3% on the transports, down 237 points. where's the money going? it's going into the ten-year note. that's pushed interest rates down on the ten-year to 2.78%. the gold market had a huge day yesterday, just a modest uptick in today's trading session. and brent crude is traded up about a quarter of a percent. not a lot of fun in europe today, either. the british, german, italian, french and spanish markets all falling in some cases by better than 3.5%. there's the worry out there, the s&p covered in red with just a few exceptions on that board. looks much like it did just yesterday at this time. bob pisani joins me on the floor of the new york stock exchange. the debate that i'm hearing down here is whether or not this has a lot further to go or whether this is going to be the 3% to 5% correction that everybody wanted to see in 2013. >> all the people who kept coming up to me for months and saying the market is getting ahead of themselves, now are

coming up and saying see, we're absolutely right. there's a lot of i told you so going on on the floor. let's take a look at the dow industrials. the good news is germany had a tough day. they closed right at the lows. we bottomed out as soon as europe closed. i mentioned this at 11:30. so far, we are not rallying but not getting any worse now that europe has closed. take a look at the sectors. yes, everything is getting hammered but the stuff that's getting hurt all week, industrials, materials, energy and financials, big global names often associated with overseas, the ones hurt the most, take a look. this is the big exchange traded front for emerging markets, down about 9% for the year. a lot of these groups are in correction mode down 10% or more. a lot of the country etfs. it's about the end carry trade. i know it's complicated but it started wednesday night when the china pma came out worse than expected, the yen strengthened. we have deleveraging going on, people borrow the cheap yen abroad, invested it elsewhere. they are unwinding that trade.

that's a five day of the dollar/yen relationship and when that goes down, the yen is strengthening. i just want to point out, juniper had great earnings, discover had great earnings, starbucks, microsoft, proctor and gamble all had great earnings. please note the green here. i know we are talking about emerging markets all day but i watched these and they had a great day. finally we talk about exchange traded funds. i will be at the index universe etf conference on monday. this is the biggest etf conference in the world. we will be talking about what all the experts are saying on how to deal with emerging markets and bonds using etfs. tyler, i will watch your segment later this afternoon. >> absolutely. safe travels. see you a little later. goldman sachs' ceo lloyd blankfein touching on the reason behind the sell-off. >> somebody said you can take a position on the emerging markets and you can't change your mind for fill in the blank, one year, five years, i would be long, not

short. doesn't mean i will feel good about the next -- sure. in the long run, you have to bet on growth. you have to bet, you know, you see growth, education, mobility in these countries, you know, basically the flattening of the world is giving tremendous opportunity in these countries. emerging markets feel like a credit business. what is the creditworthiness of this country, what is the balance of payments there. what is the government of this country saying versus that country. it feels like a name specific, like a credit business, name by name. at a point in time when things get bad and tips over into that category, forget the names. it's macro market. they're all -- it's emerging markets. >> is mr. blankfein right about the emerging markets or is the sell-off the start or part of the process of something that's going to get much bigger? we have an all-star panel for you. paul christopher is chief international investment strategist at wells fargo advisors. russell haass founder of new

sheridan advisors, oversees the ep small company asia fund, and our chief international correspondent, michelle caruso-cabrera joins us as well live in puerto rico. let me start with you, if i could, paul. not all emerging markets are created the same, we know that, but given what we are seeing now across a broad swath of emerging markets, is our market overreacting to what's happening in the emerging markets? >> yes. markets around the world are overreacting to a china miss on the pmi. china's economic data had been weakening or missing for the better part of a month now. the market chose to pick this particular one to overreact to. we may see more of this in the coming weeks as china's economy is going to weaken in the first quarter, we predict, and the market has to catch up to that yet. >> russell, is it an overreaction or given the fact that we have seen some weak data from china over the past couple of weeks, is the market simply trying to price in the fact that

china's slowing down? >> yeah, the big question in china right now is the balance between growth slowing down in china, which we've seen, and the reform package that the new administration has started to talk about. so investors are now kind of trying to weigh what's more important and right now, the growth slowdown is winning. i think this may actually force the administration's hand and if that's the case, then you could see some of the reforms they've talked about be implemented a little bit quicker than investors have feared and if that's the case, valuations are pretty cheap in china and you could actually get a pretty good rally. >> michelle, i want to turn to you. we focused a lot on asia but latin america is having its fair share of troubles and you know brazil and argentina probably better than anybody else. tell me what you see in those markets and the reaction of our markets to their sell-off.

>> well, you have big currency sell-offs all over the world, latin america, particularly countries with current account deficits. this probably shouldn't surprise people because we have already seen this once before when taper talk started to happen, that when interest rates or you're worried about u.s. interest rates going up, investments in the united states look more attractive than other riskier parts of the world and capital starts to flee those countries. we also don't see a lot of will in those countries to do what's right. here's what's key to remember. a lot of these countries lived as if commodities were going to be high forever and interest rates were going to be low forever. that's clearly not going to be the case. but you know, they lived like the revenue was always going to be that way and they were always going to be able to borrow. so now they are really trying to figure out what they're going to do and so are investors. i think lloyd blankfein poses the question, he doesn't necessarily answer it, is this the start of a big macro event or just an adjustment here. we don't know yet. >> no, we don't. paul, given that, where do you

put your money to work if you want emerging markets exposure? of the emerging markets, which do you favor? >> well, look, we would start by telling long-term investors to put half their desired allocation into a broadly diversified emerging market vehicle. you can use an etf, you can use a mutual fund. then with the other half, we would pick certain countries, at this point we're cautious on emerging markets so we would pick defensive. countries that as michelle said have current account surpluses, like taiwan and malaysia. we also like poland because that's a little bit of a bet that this is transitory and that we will see further growth later this year. >> okay. russell, quickly, where do you favor global asset allocation? >> in our asia fund, we are actually starting to dip our toe back into indonesia. that market has corrected from its highs in may of last year by 40% when you account for the currency. the current account deficit in indonesia is getting better, valuations are getting better. longer term, there's a great story in indonesia.

i think we're actually taking this opportunity to dip our toe back into indonesia and will probably have an overweight position in that country in our asia fund. >> all right. thank you all very much. michelle, we will see you again in just a little bit. ty, up to you. >> jim cramer here to continue our conversation about what we're seeing in the markets. you have, as you say, traded through these kinds of argentinian situations before. what do i need to know as i try and process all the news out there to help me keep my composure and keep my money? >> i'm glad you put it as composure. composure does not mean i'm not concerned. what we're seeing obviously is of great concern. if i try to even for a moment say i will be placid it's just because i don't want people to think you got to jump out of a building. here's why. we're in a better place. you hear about these things in turkey. i remember when i had a giant position in the whirlpool of

turkey, and they devalued. i was in the blast zone. don't be in the blast zone here. don't be a hero. no need. we have got great american companies that are going down as if they are in turkey and they are here. we are in such a better place than 2008, 2009, 2010 but people forget. our country is so strong, i don't want to sound like jamie dimon here, given that big pay increase -- >> sensitive issue. i know some people feel "new york times" was wrong about that. >> our country is so much stronger that you can't take out the 2009 playbook which would say sell everything. you can't take out the 2010 playbook which says keep bristol myers. things are better. we are worried about china and china is a concern but that's where i want to look three days from now. >> don't lose sight of the fact that the u.s. economy is today very different, very strong, and so what is going on in these other countries, whether it's

argentina or whatever, doesn't -- it matters, but it doesn't -- it's not a cause for -- >> exactly. '96-97, you had an asian contagion. anyone who says don't worry about it gave up 5% to 8% in the financials, maybe 12% to 15%. that was worse than this. in terms of the contagion, europe, really bad because they are such great trading partners. listen to what howard schultz said this morning. europe is much better, okay, china, the companies are actually doing business there, are all saying it's up. i know it's a down tick from 7.74 to 7.25. i understand argentina being a concern but that's a political risk country. it's not a systemic risk country. our systemic risk is off the table. >> we will have you back in a moment to talk more about your list of the 21 ceos, but you also mentioned some great

american companies like proctor & gamble that will do just fine. >> honeywell today was so great. kimberly has done so many things that are really terrific. what a fantastic quarter. bristol-myers, they shifted over to being the biggest anti-cancer company in the world. these are things that are not going to change by the fact argentina has a really bad government. there was a time when i heard venezuela was going to go communist and be terrible. it did. the market went up 10,000 points. >> stick around. we will come right back to you and talk more about some of those 21 ceos that you should bank on. meanwhile, to sheila for a market flash. >> check out shares of intuitive surgical, getting slammed today. the company which makes the davinci surgical robots reported better than expected fourth quarter earnings but investors punishing the stock because the company did not issue 2014 revenue guidance, citing lack of visibility. today's 5.5% decline adding to about the 30% decline we have

already seen in the past year. not a very good day for them. tyler? >> thanks very much. jim is still here. we are not finished. on the board you will see in just a second over there, seven bankable ceos. we will talk about them today. they are on your list of the 21 coaches whose teams you might do well to bet on. we will run through the list and see why jim says these seven ceos are worth maybe some of your money. i recognize some of those guys. ♪ ♪ humans -- even when we cross our "t's" and dot our "i's," we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human,

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you wouldn't bet on a football team without knowing the coach. don't pick a stock without knowing the ceo. >> we have been having a great week here with jim cramer. it's been really fun playing a little 21 in association with chapter five of "get rich carefully" by jim cramer. you want to get the book because there, you can get even more detail about some of these 21 ceos. that's the allusion there. that you think are worth banking on, because they are so good. we will finish the last seven today. >> it's important to point out on days like today, okay, lot of people feel very unmoored. they don't know what to do. they are saying gee, everything's so bad. i'm saying inject the ceo in. don't just look at the company and say wait a second, if i buy

honeywell, i'm actually buying dave cody. he has seen so many things. i want to be with him in the trenches here. that's what this is about. >> let's go through the last seven here. i will start and you can take it away. richard kinder of kinder morgan, howard schultz of starbucks, one of the great business builders of the last 20 years. kinder and schultz both on the cnbc list of finalists for the most transformative business people of the past 25 years. >> yes. rich kinder is really kind of, what he's done is built this remarkable -- he's a visionary. he understood before everyone in this country that we have more oil and natural gas in this country than anyone thinks. he decided to build the infrastructure that will get it from where it is to where it needs to go. he's created, he and others have been the masters of masters limited partnerships. they give you a better than average yield. interest rates are going down here. lot of it is natural gas based.

i'm saying this is the kind of stock, i like the kmp version best that you want to think about in a decline like this. >> howard schultz one of the most thoughtful ceos, not meaning he's considerate, though i'm sure he is, but he thinks about stuff. >> he is charitable. >> mark papa, i don't know as well. >> mark is the old enron oil and gas. mark's the man who has the largest acreage in the balkan, the permian and in what i regard as being the best parts of texas. eagleford. lot of people don't know what that is. he has been the reason why we have so much oil because he had a vision of marrying the technology and where the oil was, and the sky was the limit. he came on my show five years

ago and said things that people just thought were cockamamie. he was conservative in how much we had. >> alex smith of pier one. another player i don't know as well and a company i thought really had gone through some rough times. >> totally. the stock was under $1 when alex was trying to pull it out of the great recession. it had a weak quarter last time. one of the reasons i like to put alex on this is he will get out of this weak quarter. he will figure this out. this is a domestic furniture play, kind of boring but that's okay. >> importer. >> yes. but he has been able to pull this company out of a tailspin. >> jim mcnearney of boeing, cheryl bachelor of popeye's louisiana kitchen and terry lundgren of macy's. you think about mcnearney and all the stuff that company has gone through, then look at the stock. >> when he came on the show, i said did you ever have any concerns about the treatmedream? he said never.

sometimes again, like the belichicks of the world, there are people you just say boy, this guy, his team is down 27-0 at the halftime and he walks into the locker room and says we have them just where we want them. and you believe it. that's what he can do. >> how about popeye's? >> okay. >> why don't we like -- >> cheryl has taken a very i will say second rate restaurant chain and generated remarkable performance, turning it around to a place where, by the way, lots of millionaires have been created by working at popeye's and she is someone who doesn't get enough credit because she's not self-promotional but she's a remarkable operator. >> you had yesterday the ceo, also a female, of buffalo wild wings. you put them in the category of chipotle, for example? >> well, they've got a very big valuation. i would. this was the bankable ceos i

have met. i deal with jack hartung, i didn't want to include anyone unless they have been on the show a bunch of times because one of the things people say is i don't trust ceos. i can say at least i met them and worked with them and i do have faith. >> let's conclude with the gentleman i think, if you were to cast a guy to look like a ceo, terry lundgren would be that man. >> that's roger moore. >> it does look like roger moore. >> terry -- >> he looks the part, man. >> terry, by the way, is one of those people when you get off the desk people say what person is the most self-effacing, down to earth guy in retail and also the best-looking, coolest guy in retail. terry had 5% comps. he had costco, starbucks and macy's had the best comps of this holiday season. isn't that interesting. two out of three, seattle there. probably take seattle in the super bowl. i think when you look at

lundgren's quarter, people said maybe the holiday season's not that bad. >> or he's that good. they have done a very nice job online as well as with their physical stores. >> their omni channel is up to snuff. they have such power over the pvhs of the world they can have custom made stuff for macy's that's less expensive than other guys and if you check prices, you might still go to macy's. you won't necessarily go to amazon. he and howard schultz, totally separate ways, really thought through how to use the web to be able to -- >> been a great week. thanks. >> been really fun. thank you for having me. >> it's been a great time. come back any time. please do pick up a copy of "get rich carefully." don't miss "mad money" tonight at 6:00 and 11:00. jim will be there. meanwhile, to sheila for a market flash. >> we got our shares on caterpillar. retail sales of machinery were down 9% in the fourth quarter from a year ago. the steepest drop was in the

asia pacific region. stock right now down about 2.5%. remember, we do get that full earnings report on monday. everyone watching it for capital spending clues. >> absolutely. thank you very much. as you know, stocks around the world, a sea of red today. emerging markets selling off. but we have five ways that you can make money on that sell-off, next. stocks here at home under pressure as well with the dow down 200 points on the trading session. how do you protect your portfolio? we will show you how to do it. as we head out, a look at the biggest dow losers in today's trading session. led right now by general electric, down 2.75%. [ male announcer ] this is the story of the little room over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i-95. ♪ 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.

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welcome back. i'm sharon epperson. the surge in natural gas continues, up more than 7%. more than a 30 cent jump today. we are looking at natural gas well above the $5 mark right now and traders are looking at pipeline disruptions, they're looking at freeze-offs in production areas as well as panic in the cash market, as factors that have contributed to this rally in natural gas, up some 18% just this week. 5% rallies three days straight. we're looking also at what impact this could have on consumers and their bills as well, looking at heating bills for the northeast consumers as much as 17% higher than they were last winter, according to the energy department. we'll have more on gold, it will

close in about two minutes' time. i'll be back with that. >> look forward to it, sharon, very much. well, there is a way to make money in emerging markets but you have to do it carefully. for instance, take a look at the emerging market shorts when they do go down. this etf goes up, it's moved up 6% in a month. it's the pro shares short merging market, eum is the symbol. efz shorts developed markets outside of the u.s. and canada, it's up 2% this week. and efu shorts all things europe, it is up 4% this week. eem, another emerging market short, up 3% in a week. and eev is an ultra short on emerging markets, it's up 7% in a week. fxp, a short play on china's 25 index, is up 3% today alone, 7% in a week. if you made that bet, you are doing pretty darned well despite bob pisani, what's going on here in the u.s. >> yeah. careful about these ultra short

ones. remember -- >> you have to invest carefully. >> you have to have a real clear opinion on the direction of the markets. by the way, i'll be at the insight etf conference on monday, the biggest gathering of etf experts in the world. we will talk a lot about what you should be doing with the emerging market etfs, bond etfs and high yield etfs. let's take a look at the dow. i just want to point out we are still holding, not rallying, but we dropped to the lows as the market closed, the european markets closed at 11:30. we have been sort of moving along on the bottom ever since then. i noted earlier, a lot of emerging market etfs are in correction, down about 10% this year. they hate retail stocks, too. they're in correction territory, too. l brands, coach, kohl's, i could put up half a dozen more that are down 10% on the year. how quickly the narrative changes on merging markets and even on these retail stocks. remember the narrative last year, everybody loved consumer stocks. there was a recovery in housing and autos, business and leisure

travel was increasing. employment was getting better. the stock prices were all up. >> then the holiday season wasn't good. >> then look at the 2014 narrative now. that's a good point. look at the narrative now. the weather's lousy. consumers have abandoned the malls. higher interest rates and home prices will slow spending. all this changed in just 30 days. we knew in the middle of december that mall traffic was slowing down. but it's a pretty rapid change. 20% decline in aeropostale? that's a pretty significant correction. this is why we have all become behavioral economists, not classical economists anymore. we look at how people think very quickly, they are very quick to panic, they are a lot more quick to realize -- to get greedy and try to make gains on things. there's the pro shares ultra, ultra short china. that's three times, i believe. >> i look forward to your reports next week. >> we'll have 1500 registered investment advisors, people who manage money and only use exchange traded funds. it's a growing area.

cheaper way to invest. >> good. look forward to it. travel safely. let's head uptown to the nasdaq which on a percentage basis, seema, has been having tough sledding today. >> the nasdaq underperforming the major indexes and here's what traders are concerned with. with each new high in prices, less nasdaq stocks are participating. eagle bay capital says that in itself is a bearish signal. also, the gap between the nasdaq and its 50 day moving average continues to narrow so while we're focused on the fundamentals like the fed and weaker than expected economic data, this is truly a technical story that traders are watching as well. getting stock-specific, a lot of focus on apple given that it has the largest market weighting on the nasdaq 100. reports indicate apple is testing bigger screens for future iphones but that news certainly not helping the stock today. one of the key underperformers in today's trade. lastly, chip stocks getting hit just as we look at the transports index as a leading indicator for the dow. the semiconductors play a

similar role for the nasdaq and technology stocks, as you can see, red arrows across the screen there. sue? >> i will pick it up. thanks very much. as stocks dive, investors have been running for safety all week long. gold moving higher. the prices closing right now and sharon epperson is tracking the action. >> prices only slightly higher right now, up about $2 or so, around $1265 an ounce for the close. but you're right, traders are saying the same thing when you look at what we've seen in terms of the equities market and in terms of gold prices so far this year, if this trend continues, some say we could see gold prices going toward $1300 if equities continue to falter. that is the trade that many have been watching and will continue to watch in the week ahead. >> thanks very much. other safety play of course is traditionally bonds. rick santelli tracking the action at the cme. >> i have three numbers for you. five, nine, 30. we are down five basis points on the day, down nine basis points on the week, down 30 basis

points on the year. there's your ten year. anybody who doesn't think the ten year has been falling in yield more than just the last couple days, just look at the chart. it's been happening for the whole year. look at the two day chart, look at a chart going back to last week in november, because that's the last time we saw a close under this 2 3/4 area. it was even lower for awhile. listen, many traders say watch spanish and portuguese yields. they are moving back up after their stellar drop. that to many signals something wasn't quite right. dollar index unchanged after a wild ride but it still doesn't look very good on this year-to-date chart. back to you. >> rick, thank you very much. finding safety in the selloff. we will give you six stocks to protect yourself right now. plus it is turning into a lousy month for the bulls. also, one of the worst for the airlines. phil lebeau is on the case. >> it's the worst since 2009 and here's the troubling part of that headline. it could get even worse. we'll have the numbers on flight

cancellations this month. plus, disaster in the midwest, where phil hangs out. blizzard-like conditions causing a 46-car pileup. look at all the tractor trailers. a major highway is just reopening after being closed since last night. i believe this was the crash on i-94 south of chicago in indiana. we'll be right back. i have low testosterone. there, i said it. see, i knew testosterone could affect sex drive, but not energy or even my mood. that's when i talked with my doctor. he gave me some blood tests... showed it was low t. that's it. it was a number. [ male announcer ] today, men with low t have androgel 1.62% testosterone gel. the #1 prescribed topical testosterone replacement therapy increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair

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i' 94, a major highway through the midwest, is open once again after a terrible crash in indiana. 46 vehicles were involved, including 18 tractor trailers. so far, there have been three confirmed fatalities. it all happened in michigan city, indiana, when drivers were suddenly caught in blizzard-like conditions. rescue crews and tow trucks worked throughout the night last night to clear up the mess. the fight between protesters in ukraine who want closer ties with russia against those who want closer relations with western europe exploding again today. police firing tear gas as demonstrators took over several provincial government buildings. the protests have been nonstop for almost two months now.

in egypt, three years after mubarak's ouster, there are new signs of an islamic wave of terror in egypt. a series of car bombs rocked cairo today. this one hit a security compound and wire reports say at least six people were killed, dozens were wounded. ty, up to you. if you're looking for safety on another big down day, check out the ten s&p 500 sectors. there you see them, all of that ten are in the red at this hour but the go-to sector on days like these, hanging in there, the utilities, folks. yes, indeedy. which stocks are the winners in utilities right now? check it out. there you see them. first energy is up today, public service is up today, ditto exelon, wisconsin energy and duke energy, all with gains in the one case, 1.5%, half percent or thereabouts. looking for safety? often you find it in utilities. sue?

>> indeed you do. lloyd blankfein of goldman sachs tells cnbc he's still optimistic that a pullback won't derail the track we're on. as for the health of the economy, he says that we have a big tailwind on our side. >> the deleveraging that's occurred, the interest rate environment, the housing situation, energy, all favor the united states and of course, as we have been saying for a long time, the u.s. is probably half a cycle ahead of europe anyway. >> burns mckinney joins us with the nfj investment group, where he manages about $43 billion across several dividend focused funds. welcome. nice to have you here. >> thank you very much. i appreciate the opportunity. >> what do you think of what mr. blankfein told cnbc this morning? is he right? >> i would tend to agree with him. i think the u.s. economy does have some head winds. it is starting to rebound. i think in addition to the fact that because you do have an energy revolution going on, that lowers the cost of production, allows companies to hire here.

the consumer has been resurgent. there was a lot of well publicized delays with ups' shipping over christmas but the good news imbedded in that is the fact that consumers are buying more. so you have that, you have housing as well as the fact that one more, i don't know if i would call it a head wind but lack of a tailwind, you have a little bit less of a government cutback this year. last year, you had government either cuts in spending or hikes in taxes. probably cost the economy about 1.5% of gdp. this year that's expected to be about half a percent of gdp. >> last time we talked to you, you thought equities were pretty much in a good spot. if you still feel that way, where are you deploying cash? >> we do think that the gains this year probably will be a little more muted compared to last year's, but we're definitely finding opportunities. i think a lot of the market's gains are becoming a little narrower. it's not quite so broad, not so much of a rising tide lifts all boats type of market. but what that means is that there are opportunities for investors to pick winners. a couple of sectors that we are

probably finding the best opportunities in right now are health care as well as technology. those are really the two sectors for which their earnings yields are above their long-term averages. >> burns, thanks for the advice. appreciate it. have a great weekend. ty, up to you. >> they will move me over here and i'm ready. it's been a lousy month for the nation's biggest airlines. phil lebeau is in chicago with more. easy to figure out why it's been so bad. >> it will get worse next week. there is probably going to be more cancellations as another storm front comes from the midwest into the northeast. how bad has january been? the worst month when it comes to flight cancellations since january of 2009 when the new rules went into effect. this is all according to moss flight, a research firm out of washington, d.c. january cancellations caused by a combination of the storms going into the northeast and the new pilot rest rules that went into effect. here's the total. 35,400, surpassing february 2010. just for a point of reference, october and november of '11 during hurricane sandy, there were just 20,000 cancellations.

not surprisingly, the airlines are all getting whacked today, not just because of this news, but really because transports as a whole are down. in fact, when you take a look at the transports, this is the worst day for the transport index since april of last year. look at that, down more than 3.4%. tyler, back to you. >> wow. jim cramer mentioned it just a moment ago. that's a big selloff. three leading economic indicators that no one is watching but we probably should. see what they're telling us next. plus, did china's rich see the emerging market selloff coming? >> i think this is an indicator. wealthy chinese have moved more than a half trillion dollars offshore. a shocking new report names names. some of them are prominent government officials. we will look at who they are. >> and often bringing their money here. kicking off our year-long celebration of cnbc's 25th anniversary, we have unveiled a list of what we have dubbed the

200 most influential. most transformative business people over the past 25 years. over the next couple months, we will narrow that list down to a final ranking of the top 25. we need your help. give us your comments at cnbc.com/25 to vote for your picks and leave your comments. you can do write-in campaigns for people you think deserve to be on that final list. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪

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don't care, we're going to still soar. what gives? we will talk about that and lots, lots more. do join us at the top of the hour for "street signs." back to you. >> mandy, thank you. see you at 2:00. in today's yahoo! finance question of the day, with u.s. stocks taking a big plunge, we asked do you think this is the start of something bigger? 40% say yes, i think stocks will continue to fall. 41% say no, they will go back to climbing. 19% say i think they will stay steady for awhile. that's what makes the market. new developments in the corruption scandal placing former virginia governor bob mcdonnell and his wife. eamon javers has the details. >> it's a little hard to believe that just 14 days ago, bob and maureen mcdonnell were the governor and first lady of the state of virginia. today, in court, pleading not guilty to federal corruption charges. it all stems from their relationship with businessman johnny williams and his company,

star scientific. the governor and his wife are alleged to have taken a laundry list of gifts from williams allegedly to benefit star scientific in return from the governor's office. take a look at this list of some of the gifts, including $6,500 rolex, inscribed 71st governor of virginia, a $50,000 loan to maureen mcdonnell, a $70,000 loan to mcdonnell real estate businesses, a $15,000 new york city shopping trip, $25,000 in cash and wedding gifts and also $7,500 in golf outings. the total here, $165,000 in gifts and loans, according to the government. mcdonnell has said he was not aware of all of the gifts and insists that he did nothing illegal in all of this. but a fascinating scandal in the virginia area just outside of washington, d.c. >> a very high profile case indeed. thank you. we have a great read right now on cnbc.com by economics

reporter john schoen. the u.s. recovery is gradually picking up momentum and there are a few less widely followed data points that are contributing to that, and one of those is truck tonnage. yes, truck tonnage in 2013. truckers hauled 6.2% more than the year before. the best showing since 1998, says the american trucking association. railroads also seeing increased traffic although we should note today the rails are the biggest drag on the transports. but if you take a broader look, that's thanks in part to the boom in oil and natural gas production in areas that don't have pipelines. the only way to get that oil and gas is by putting it on the rails. and u.s. manufacturers slowly boosting their exports as well, since bottoming in 2009. the volume of steel containers moving in and out of u.s. ports reached a new post-recession high in 2013. rising household spending also boosting imports of goods from

overseas. just some very interesting little followed or perhaps better said, less known indicators, but that's the kind of edge that you need in this market. >> got to always read beneath the headlines. those are important numbers. china's rich may have been watching these leading indicators and did they see then the emerging market selloff before everybody else? robert frank with a look. >> this will be the question. they might be the canaries in the coal mine. the rich it seems have been fleeing china and it may be that they saw some of this emerging market problems early. the chinese wealthy moving more than $600 billion overseas and 64% of chinese millionaires have either moved or plan to move overseas. a new report names names. the international consortium of investigative journalists has found that 22,000 wealthy or well connected people in china and hong kong have created offshore overseas accounts. many of the people named are either government officials or relatives of top political

leaders. the report says that price-waterhouse, ubs and other western banks may have played a role in helping these chinese clients set up trusts and companies in the british virgin islands and samoa. this may be perfectly legal and the wealthy say they are diversifying their portfolios with you t but the number of wealthy rich moving their families overseas say the smart money may have left china. >> they are a step ahead. robert, thank you very much. sue? we are going to put a face on the face of puerto rico's $70 billion debt crisis. see which of these bonds are in the biggest danger, coming up after a quick break. well another great thing about all this walking i've been doing is that it's given me time to reflect on some of life's biggest questions. like, if you could save hundreds on car insurance by making one simple call, why wouldn't you make that call? see, the only thing i can think of is that you can't get any... bars. ah, that's better.

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some call it the greece of the united states with a population of just over 3.5 million people, puerto rico has racked up an astonishing $70 billion in debt, $30 billion in unfunded retirement benefits and it's not just about big wall street investors losing money here. it's having a very real impact on everyday folks. michelle caruso-cabrera is live in beautiful san juan putting a face on the crisis. >> yes, and there's a large swath of individual people here

in puerto rico who have lost a lot of money as a result of the situation with the debt here. i want you to meet marco and maria. they are uvs clients and they are emblematic of an issue that is going on here. there's a special exemption in u.s. securities law, if you live in a territory like puerto rico, get this, you can invest in closed end funds, they are 23 year created by ubs, in which you get tax-free dividends. these things were yielding 8% and 9% per year. everything in there, two-thirds, everything is tax-free, two-thirds is supposed to be puerto rico but the other one-third could be other types of security and any revenue you got from those were also tax-free. by the way, when you die, they are also not subject to the estate tax. now, this couple, they are not married, they are brother and sister, they had more than $1 million combined with ubs. they claimed their broker

convinced them not only to invest only in these closed end puerto rico funds but that they convinced them also to borrow against these funds. now, when puerto rican bonds went south this past summer, guess what, they started getting margin calls and they have lost close to $1 million. maria says she feels that she was misled by her broker. >> i'm completely exhausted, i tell you. i cannot sleep. i write to him at 12:00 in the morning. i'm sorry. i gained about 15, 20 pounds. i'm very anxious. >> securities attorneys are crawling all over puerto rico looking for these ubs clients. you know jake, we have him on the air frequently. >> the customers told me the

brokers said these were safe and conservative investments. they were never told that these were risky investments, that there was limited liquidity. they have lost everything, once the bonds started collapsing in value, and they can't even sell them. >> ubs gave us a statement, they say that for more than 20 years, investors in the municipal bond closed end funds received excellent returns that frequently exceeded the returns available through investments in other funds, and that using non-purpose loans to buy these closed end funds or any other securities expressly prohibited in all the loan documents. the couple has those documents but they say they trusted their broker and that they were convinced by their broker. tyler? >> michelle caruso-cabrera reporting. thank you very much. another triple digit sell-off in the dow but there are big winners out there, if you look hard enough. we'll tell you, next. ♪

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well, dudes, the markets may be down big but take a look at that. that's half moon bay, california, where they are doing the maverick international surfing contest. these are big wave surfers, 24 of them. you have to be qualified as a big wave surfer. we are in between sets here. i know this because my husband is a surfer.

but the waves there have been averaging 50 feet. it is a beautiful part of the world. some big winners today, starbucks, juniper networks and discover. the dow is down 209 points. >> 208 points. that wraps up a bumpy week for "power lunch." >> "street signs" begins now. you know the old adage when the u.s. sneezes, europe catches a cold? let's bring this up to date. now the emerging world is sneezing and the developed world is catching a cold. talk about a pre-weekend crescendo flight to quality. the dow is currently below 16,000, its worst week since may of 2012, with the dow and the s&p now touching the lowest in over a month. as for the ten-year, who would have thought we would be here at this particular juncture. it is currently sitting at 2.74%. >> so there are the numbers. what the heck is going on? well, the emerging markets are gettinl