this is cnbc breaking news now. >> stocks this year are like the denver broncos must be feeling today. they would love a do-over. hello, everybody. a bad year getting worse. the dow down 269 points. we are now down nearly 7% just this year. you've got concern over weaker economic data, a china slowdown, japan, you name it, it's out there. the only good news, mortgage rates likely to drop again as people flood back into bonds. >> a pretty rocky start to february trading after an equally rocky january which gave the dow its worst start to a new year since 2009.

the dow has been swinging hard, triple digit moves in fact in the last four sessions. it's only about 3% away from entering correction territory. it has broken below the 200 day moving average. as for the russell 2k, the install casmall caps, it is in striking distance of entering correction territory and the nasdaq being slammed, below 4,000, the worst percentage loser out of the three indices today. the vix meantime, the fear gauge jumping to trade above 20 for the very first time since early october. it is up over 50% in the past month alone. let's get beneath the headlines and talk more about what exactly is driving each market. bob pisani is at the nyse. what are people say down on the floor? >> they are trying to figure out how much weather is part of this whole mix affecting the overall stock market. what is clear is when the ism number came out at 10:00, the market moved decisively down although we were moving down prior to that. there's the ism number coming out at 10:00. again, we were weak before that. we have just been drifting

lower. essentially we are just off the lows today. let's not quibble. we are essentially at the lows. weather was blamed by many for the weak number and ford also talked about weak weather for their disappointing sales in the month of january. here's an unusual thing. the major indices all to the down side. we are getting noticeable weakness in small and midcap stocks here, down 3.5 to 3.25. at one point the s&p 500 was half the decline of the midcaps. that's a little unusual. this is a higher beta but would suggest we are getting a lot of selling in the midcap area, including things like airline. here's an example. everybody loves the airlines, business is great. delta was up more than double last year. it's also getting sold here. this is not a company with any problems with fundamentals. zero right now. the industry is doing great. they are selling it because they need to for whatever reason. they are lightening up. same thing with mexico. everybody loves mexico. all the right buttons it hits. then that stock down big, almost 4% and it's not getting spared. it's down 10% on the year, this etf, just like the other

emerging market etfs. in other words, nobody is sparing anybody right now. the only good news is bad news is finally bad news. notice nobody turned around and tried to say we should buy things because the fed was going to increase or stop the taper program. that didn't happen today. >> bob, can i jump in? i want to ask a question. we have talked about it on this show but nobody else seems to be talking about it. we will either be right or are completely insane and will be wrong or somewhere in the middle. heating costs, natural gas way up. even electric fired plants powered by natural gas are going to increase costs. is anybody on the floor talking about this consumer impact? >> i am, because i paid my heating bill yesterday and it was $240. $240. >> what's it normally? >> i'm not even home most of the time. in the middle of january last year it was probably $160. >> it was up 75%. >> yeah. >> factor that across 100 million people where it's been freezing cold and that's a lot

of money taken out of discretionary income at the mall, at restaurants, the car dealer. >> great point. i noted it to my wife. i said look at the heating bill this month and i paid it. i didn't freak out. but yeah, i noticed it. absolutely. >> tell you what else is moving down, the ten-year yield. i think we are sitting close to three-month lows here. i just looked up at the screen half an hour ago and it's like wow, look where it is now. well below 2.6%. >> yes. i saw 2.58 briefly, now 2.59. let's go through it. intraday, we can see that the market really did speed up at 10:00 eastern and bob said ism may be about weather. maybe it is, but when i look at the inventories i think that's a key issue. i'm not so sure how big time that's affected by the weather. but get this. a lot of yield curve movement. the five years haven't been down at this level since early december. tens haven't been at these closing yields since the end of october. the 30 year bond hasn't been at these levels since early july. so the 30 year is leading the

charge in terms of how fast this yield is falling so we're seeing a lot of flattening, fives to tens, twos to tens. that tells me at least, my interpretation, the dynamics in place will continue. >> we will talk more about whether or not these low yields are going to translate to anything good for the housing market. that's for later in the show. meantime, i mentioned the nasdaq is having a terrible day in terms of percentages. it is the biggest loser. seema, what specifically is pushing it down? >> we are now at session lows, down triple digits on the day, a bearish scenario shaping up for the nasdaq. we are seeing losses across the board. internet names, biotech, many of those tech names that reported earnings last week are now under pressure. that seems to be what's weighing on the nasdaq. of course, as i mentioned before, the nasdaq breaking 4,000, a key psychological level that traders watch. there seems to be a fundamental and a technical story at play here. weak economic data coupled with the indexes breaking key support levels. many of the winners on the

nasdaq 100 have now turned negative, including apple. investors continue to hit the sell button on biotech. we are seeing celgene, among others, trading lower and large cap tech, google, yahoo! amazon leading this index, all of which reported earnings last week. facebook did hit a record high earlier today. that stock has now turned negative. >> with the exception of russia, brazil and the nikkei, the dow is now the fourth worst performing major market in the world. that stinks. let's get some advice on what to do and bring in stuart freedman from wells fargo and matt maley. i used your data from your morning note this morning and made a chart of the s&p 500 highlighting about 1768 to 1770. we are showing it now in beautiful seahawk blue and lime green. tell us why 1768 is such an important number and what breaking below it as we've done 20 points ago might mean. >> well, it was an important support level for two reasons.

number one, it was the trend line from the late 2012 lows and of course, we had a huge rally which was kind of led by the big rally in japan which of course has turned down. it's also its first meaningful lower low since god was a child. you got hit by the double whammy of breaking two important support levels which happen to be at the same level and that especially got the people in the futures pits to start to sell. >> so what does that mean in laym layman's terms? >> it comes down to liquidity. we talked about -- first we have the highest levels of leverage ever, number one. number two, we now have diminishing amounts of liquidity being provided because qe is being tapered back. when you have that take place, some of that huge leverage has to be unwound and that exacerbates everything. when you start to have that happen over a short period of

time, you have a repricing of risk. my feeling is although the market is very, very oversold on a short term basis, it could bounce a little, the repricing will take awhile to play through. i think we will move lower. >> what are your clients saying to you? are they worried and what are you advising them to do here? >> you know, investors haven't gotten used to 10% pullbacks in a couple years so they felt positive going into this year, the fed made some statements that moved the market higher at the end of december, confidence moved higher than it had been. so it got a little bit ahead of itself. we're thinking this is an opportunity to buy the stocks that are getting hit, particularly industrials, consumer discretionary, the technology stocks are becoming more interesting because we still think we're in a global economic recovery. interest rates are going down. we have basic materials that are softening. we think oil prices over time will be flat to off. those are all good things for us.

the dollar probably chopping higher, that's good for inflation for us. we think this is an opportunity in domestic stocks. >> do you think, do you see any opportunity, matt? are you just sitting on the sidelines? i know you told us before that obviously you have to get defensive before you hit the panic button because you need to plan before things turn bad. but it looks like things are turning a little bad right now. would you be sitting on the sidelines or is there anything you would buy? >> i actually think on a near term basis, any bounce will actually be an opportunity to sell. get a little bit more defensive. because i do think it will come down more. again, this repricing of risk is an intermediate term proposition, if not longer term. it will take time. it will be gradual. won't go in a straight line. >> but matt, matt, matt, matt, you've got to have a better place to put your money if you're going to sell. my time line is 20 years. why wouldn't i add more when prices go down? i'm not retiring this week. lot of our viewers, 30 or 40 years old. shouldn't they be adding? if you like the stock market six months ago, shouldn't you love it now, for 20 years out?

>> well, if you liked it six months ago, a lot of things have changed in the last six months. number one. but number two, i do think you want to have money on the sideline so when things really get washed out a little, kenny said earlier, my old friend and colleague, mentioned how there isn't any big panic out there. th that's good on a short term basis, we can bounce back a little bit. but when you get this kind of significant move in the market, it usually doesn't get a real firm bottom until we do see a little panic, get the marked washed out a little bit. that might be -- i think will probably be until we get into the double digit percent. >> you are talking about ka pitchati capitulation. thank you for your thoughts on the market. >> when we're down in january, 64% of the time we also fall in february. >> right. that's called the january indicator. >> i thought it was as the year goes -- >> right.

so goes the year. just talking about february. >> john, thank you. i don't know why they highlighted negative in bigger font. that's just stoking fear in the media. bill ackman getting personal on herbalife. he's not only going after the company but now also going after some of its biggest distributors. by name. let's bring in the street.com's herb greenberg. when we say distributor people think the beer distributor. no, no, no. these are individuals, right, that are the ones that are selling the product so bill ackman is essentially calling out some individuals, in fact, one of them by their hometown by name. what do you make of this? >> well, i think it is maybe a little bit overdue. these are not just regular old distributors. the people he's pointing to, especially the person he mentions today, who is in colorado and canada, is no longer a distributor. he's moved on to some other company. these are the biggest distributors who have real big

down lines tan point i think he's pointing out, when you look at some of these people, especially those who have left the company, is some were accused perhaps of violating some of the company's own rules and the question is why did it take the company so long to figure this out. >> he better be right. otherwise, wouldn't the lawyers be circling over this one? you better be right in terms of naming names. this could be hot water. >> well, look, these guys, the distributors they're pointing out, they are known entities. when i was doing my research on this, i was going after -- this guy they mentioned today, when i was at cnbc full-time, i was trying to get him on the phone, trying to contact the guy because there were some serious questions raised about the way he was doing his business as it related to herbalife. i think that -- remember, these aren't just, you know -- >> but you get the idea, right? this is a very powerful hedge fund manager who is naming

names, i understand they are powerful people in herbalife, he's making basically comments about somebody's family and what their relatives did to get in trouble, back and forth. i just don't know if i have ever seen this level of personal behavior in a stock battle. now, to be fair, herbalife is not a normal company. they use individuals as their salespeople. that's my only take. >> this is a different type of a fight. i understand. it's sort of the tail wagging the dog with the big distributors. look, the amount of research he's done, time will tell whether these guys come after him. my guess is they won't be coming back after ackman and filing suit because they may not have any leg to stand on. >> that's what we have to wait and see. thank you very much. we should say we did call and e-mail herbalife for a comment on this. they have not yet responded. if they do respond, we will bring it to you. thanks, herb. on deck, maybe what is the biggest bright spot perhaps right now, the only bright spot in the economy that not a lot of people are talking about.

plus, we will talk big money winners and duds in last night's super bowl. and the coolest story of the day we found. "street signs" is back after this. velocity 1,200 feet per second. [ man #2 ] you're looking great to us, eagle. ♪ 2,000 feet. ♪ still looking very good. 1,400 feet. [ male announcer ] a funny thing happens when you shoot for the moon. ahh, that's affirmative. [ male announcer ] you get there. you're a go for landing, over. [ male announcer ] the all new cadillac cts, the 2014 motor trend car of the year.

welcome back to "street signs." i'm sheila dharmarajan. check out carnival cruise line. the company said it set a one month reservation record in january, setting an all time high for the number of guests

booked in a single month. that was actually a 17% gain from the same period a year ago. carnival, though, is down today of course in a down market. mandy? >> thank you very much. we called it the biggest bright spot in the economy right now. mortgage rates. they are continuing to tick lower. just a moment ago we showed you the ten-year yield, below 2.6 now. what does it mean for mortgage rates? let's get to diana olick in washington. this is the upside, isn't it? >> absolutely. it's the upside to the downturn in the stock market and a chance to lock in on a refi if you haven't already. as investors head to the safety of bonds, both treasury and mbs, yields go down and mortgage rates follow. take a look if you will at last week, the average rate on the 30-year fixed fell from over 4.5% to 4.34% friday and today, sources at mortgage news daily tell me that rates for the very best borrowers could hit 4.25%. that's thanks to the weak report on ism manufacturing. a quarter of a point drop may not seem like a lot and really,

on a $200,000 loan, it's about $30 a month difference in your monthly payment but everyone i talked to says it's the psychological impact on potential buyers and borrowers. that part is real, especially in such a rate sensitive environment now. it begs the question how low will rates go and how long will they stay? we can look to the friday jobs report for the answer there. if the report is weak, rates will likely go lower and vice versa. but experts i'm talking to say they can't go that much lower, not given the higher costs facing lenders today. so will lower rates juice the housing market? well, the lindsey group says no, not if the drop in rates is happening because the overall u.s. economy is slowing down. we need better jobs, better income for people to buy more houses. more online, realtycheck.cnbc.com. is what's bad for the stock market perhaps good for housing?

let's bring in ken rosen as well as jed colco. a slight dip in rates for a short time perhaps, we're not sure, is this going to help housing? >> lower rates of course make it more affordable to get a mortgage. if rates drop a full point, that lowers the cost of your mortgage by more than 10%. but this is not a real silver lining. what's bad for the market is not good for the housing recovery for two reasons. first of all, affordability is not just about mortgage rates. it depends on your income. if the economy does worse, more people stay out of work, incomes don't rise, that really hurts affordability. the second thing is at this stage of the recovery, it's rentals that's driving a lot of the housing recovery. all the young people who have been living with parents, who have been unemployed, we're at the point where some of them are starting to move out of their parents' homes and into rental apartments. if their job prospects turn worse, if they're not finding

jobs, if they're not earning more money, they are not going to become renters, that will hurt household formation and that will kick the legs out from under construction. that's very bad news for the housing recovery. >> a lot of points being made there but do you agree that if indeed we do continue to see declines in the stock market due partly to things such as weak data points on the economy that that's going to outweigh, is going to be much greater than the impact of lower mortgage rates in terms of housing? >> first, i do not agree the economy is weakening. the economy actually is doing quite well. we had very strong gdp in third and fourth quarter. job growth has been about 200,000 a month. as long as the job growth continues about 200,000 a month, i think 50 basis point decline in mortgage rates which is, we're at 40 basis point decline now, will actually help in the spring selling season. i think the weak data points we see in the economy are due to weather. they don't mean a thing. the stock market decline certainly encourages people to worry a little but if it continues, it's a problem.

if it were to stop here and bounce back some, i think the lower mortgage rates help a little bit. not a lot but a little bit. but the strong economy, i think we have a good solid economic recovery continuing. >> so jed, you heard that. i get your point. oftentimes rates will go down because bonds are going up because stocks are falling. give us your forecast for the year. a lot of people might be nervous right now. what is your -- should you soothe them? can you calm them? >> i agree that the economy still looks like fundamentally it's in recovery. i think the decline that we're seeing in mortgage rates is short-lived and mortgage rates will go back on their upward path, both because of continued fed tapering and because i expect we will start to get more good news about the economy overall. now, rising rates with stronger incomes should mean that we will see more people moving out of their parents' homes, more renters, prices won't rise as fast as they did last year. last year's price gains weren't sustainable. but we should see construction

continue to pick up and we will see sales keep swinging away from the distressed sales, those foreclosures and shorts, to the conventional home sales. >> of course, we have data points this morning on u.s. construction spending. it only rose modestly in december, slowing from what was actually quite a strong month before. ken and jed, thank you very much for joining us today. still ahead, fast food, video games and designer clothing, all thrown into one. the earnings squad will join us with the three biggest names to watch before the report. later, a maserati for the masses? if you watched the super bowl last night, you saw this ad. what exactly is happening to luxury? ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays...

that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.

with the mobile trader app. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities

and see them through, we say: let's get to work. because the future belongs to those who challenge the present. welcome to the earnings squad. i'm melissa lee. joining me, dominic chu and stephanie link. let's start off with yum brands, scheduled to post earnings today after the close. of course, with china and the news today, a lot of concerns about yum. >> yeah.

i think the most important thing is this stock is massively underperformed. it missed the group in terms of performance by 38% last year. it's underperformed another 8% this year. relative to the group. so it's really depressed. expectations it's because china -- it's going to be key what they say about china and also about margins in china because margins last year actually held up in the face of very weak comps. so have comps stabilized which they have already given us a 4% comp number for the quarter. that shouldn't be a surprise. but it will be commentary there. then you guys remember mcdonald's ended december, their quarter, with a 3.8% decline in the u.s. so it will be very important to hear what they say about the u.s. and the competitive environment there as well. got a lot of moving parts here. the whisper numbers are 75 cents. they will probably do that but again, it will be all this color commentary on the call. >> of course, the 2014 outlook because in the beginning of december, they said growth of at least 20%. we don't know if they will hit it given the china number they

released in january or so. then also, the weather. it's awful. awful today in the northeast. it's going to certainly be a wrench for them, too. >> and their china operating profit, they are expecting to see 40% growth for the year. that's an aggressive number. we have to hear what the company says. that's why conference kaulcalls so important. >> dom? >> this stock has been on fire. home entertainment software companies like take two, the video game makers, electronic arts, they have been on a tear. if you look at these particular companies, take a look at that. that's up marginally over the past week. over the past year it's up 47%, 48%. 60% for electronic arts. big, big moves here for these companies. when it comes down to it, this is all about the holiday sales for grand theft auto 5. that's one of their big franchises. and if you look at it, the options market already pricing in an up or down move of 8% after the earnings.

this is going -- >> interesting if they can do that, 67% revenue growth that they guided for. if they did 40% that would be great but they're talking 60%, that's huge. >> high bar. >> it's all about expectations in this market. michael kors trading lower ahead of its third quarter earnings release. we got that terrible release from coach, the fiscal second quarter results. expectations were high for michael kors but this story is about valuation and can they beat by a wide enough margin in order to satisfy investors who are concerned about valuation. there have been at least seven downgrades on this name recently because of valuation and that will be -- especially when you compare it to other luxury brands. it's more expensive. >> this might be a little different only because we know they are taking share from coach. wait until coach actually gets their act together which i think they will later this year, but you're right. expectations 27 times forward estimates, very expensive. if they do just -- >> interesting to see how the

market reacts. that does it today. tonight on "fast money" with this selloff, we will look for shopping opportunities around the world. you don't want to miss that. back to you. >> correction protection. we look forward to it. thank you very much. try to stay warm. still ahead, we found maybe the biggest brightest green arrow in a sea of red. we will name names coming up. plus, why bobby is having a tough game. first, today's pump patrol. >> the national average for a gallon of regular gasoline, $3.28. that's the same as it was on friday. aaa is saying that the harsh winter weather has actually kept people off the road in the past few weeks, lowering gasoline consumption in many parts of the country. that's kept prices relatively flat nationwide. the state with the lowest average gas price is missouri today. that state average is just two cents above the key $3 mark.

columbia, missouri is selling the nation's cheapest gas, just $2.84 a gallon. that's today's pump patrol. [ sn] i've got a big date, but my sinuses are acting up. it's time for advil cold and sinus. [ male announcer ] truth is that won't relieve all your symptoms. new alka seltzer plus-d relieves more symptoms than any other behind the counter liquid gel. oh what a relief it is.

than any other behind the counter liquid gel. to manage your money.r guy around 2 percent that's not much, you think except it's 2 percent every year. go to e*trade and find out how much our advice and guidance costs. spoiler alert. it's low. it's guidance on your terms not ours. e*trade. less for us, more for you.

welcome back. let's take a look at how the

markets are doing. yeah, we're in the red here but the dow is up by 260 points, not quite at the session lows. the nasdaq as we have been saying has been the worst percentage loser today and it was below the 4,000 mark earlier on. the little guys, the russell 2k, that's really been hard hit so far this year. let's find out more about which specific names are leading the decline. let's get to sheila dharmarajan, who has been digging into the pullback. >> well, today we have seen a more than 5% decline from the beginning of the year and it's be begging the question, where do we go from here? lucky for us, the spoke investment group and our cnbc data team have crunched the numbers. they have in fact analyzed all the 5% plus pullbacks in the s&p 500 since march of 2009 which of course was the beginning of the bull market. here are some facts. number one, there have been 19 of them. the average pullback has been about 8%. s&p right now has to hit around 1702 to hit that average. number two, this is interesting here, the two largest 5% plus

pullbacks we have seen happened actually when the fed was out of the market. something to keep in mind there. finally, the current pullback we have seen this year has lasted around 31 days. that is longer than what we have seen on average. so there's a little pullback perspective for you to kind of put in perspective what we have been seeing this year. but remember, if you're talking about correction, that of course is a 10% decline from the january highs. the s&p needs to hit 1665 which right now is only about 80 points away. bank of america isn't too concerned about what we're seeing right now. they have looked at all the data over the past several decades and say on average, 5% pullbacks happen around three times a year and what we are actually seeing is a quote, normal phenomenon. the question is what's going to happen going ahead? we have to wait and see. >> or wait for this interview right now. thank you very much. david lutz joining us. dan, i will start with you

because you got in your car and braved these elements. you need your sled dogs today. your take to mandy's point earlier in the show, a lot of people suggesting maybe this is a buying opportunity longer term. what's your take? >> we are early in the earnings season but what we have seen so far, we are pretty optimistic about. remember, a lot of what we do is around small caps. small caps tend to report their earnings a little bit later than the s&p 500 constituents. >> who are 100% exposed to the united states for the most part. >> but many of them do have emerging market exposure, too. on friday, we had manitoac report, a stock i own in my personal account, and shares were up 18%. that's a stock we've owned for quite some time. we also own the debt which is in the process of being refinanced hopefully at even more advantageous rates now that the ten-year's moved off the 3% range to around the 2.6% range. but they cited specific tremendous demand in -- >> it's a wisconsin based crane

company. >> the rental companies are starting the see more activity, more utilization. that has to indicate that the cyclical outlook for the u.s. i believe remains intact despite the recent data. >> of course, to your very first point, in terms of the earnings season so far, revenue and eps have been above average, in terms of beats, right, which is really good on the top line. dave, what do you think is spooking the market here? we knew the taper was coming. we knew china was slowing down. has it been the severe weather, the severity of emerging markets? what do you think in particular is taking us by surprise? >> well, you know what, obviously emerging markets have been a big theme going forward in 2014 and that's been a big headwind for the market. the stronger yen has really been hobbling us the last couple sessions. friday in the morning, japan printed their fastest inflation growth in five years. that really had a big cover going on as far as the yen was concerned and that's reducing a lot of leverage in the system which of course, the markets were very overlevered at the end of 2013.

what's also pretty interesting is obviously what you noticed about the weather. a wise trader pointed out to me it seems like the s&p is trading inverse to snow accumulation forecasts. we had the ism claiming poor weather as far as just the manufacturing miss. we had poor weather impacting the december employment report. that's spooking traders as to what's going to happen this friday with this non-farm payroll report we are anticipating. estimates will be all over the map but i will tell you to the reporter's note at the top of the segment, an 8% pullback in the s&p gets us close to about 1705. we have the dow testing to 200 right now, we have the nikkei testing about 200 right now. that's the s&p's level. >> is it a buying or selling opportunity? >> i do not think this is a selling opportunity. we have relatively missed the bus as far as that's concerned. but it doesn't feel like there's any panic on the trading desk. we don't have large clients saying sell, sell, sell. it's very calm. a lot of this just feels like it's hedging going on with the concerns in the emerging markets. if you haven't sold yet, i

wouldn't sell. i would certainly be thinking about nibbling on some good quality positions at these levels. >> nasdaq still up 26% over the past 12 months. it's been a good 12 month run. quickly, bill barrett corp down 5%. what do you like the name? are you adding to it today? >> we would be adding to it at these levels. the company's in two businesses, gas, which is what they're known for, oil which they're less known for. they have big holdings there. but both things are moving positively right now. we think asset value in this company's at least $35 a share with the shares at $26 a great buying opportunity. >> thank you so much for joining us. david and dan, go nibble. go nibble. >> be safe getting home. thank you very much. do you remember the movie "cool runnings" about the bobsled team? for the first time since 2002, the team has again qualified to compete. the two-man team, not four. they had just days to come up with $80,000 but that is before

sochi social media came to the rescue. they now have more than enough money to compete. they have more than $130,000 at the last tally. good for them. >> yeah, good for them. through kickstarter, fantastic what you can do these days. you can look for them yourself. the bobsled team, when you head to sochi in a couple weeks' time. yep, brian will be anchoring "street signs" from sochi. opening ceremonies february 6th. brian will be there. he will be cold. maybe not as cold as here. that's from february 18th, we are looking forward to it. i bet you are, too. on deck, we talk technicals and debate the fundamentals on jos a. bank. >> we are all over the markets. pfizer getting a lift, pfe. lot of red on the screen for the s&p 500. bill griffith, i have just a sneaking feeling that you will

talk more about these markets in "the closing bell." just a hunch based on years of experience. >> you are wise, mr. sullivan. yeah, we have another big selloff that has wall street on correction watch. we have an all-star team of money managers to tell you whether to head to the sidelines or maybe think about buying at these levels. also, will this market plunge in stocks and bond yields force the fed to rethink the tapering plans? we break down the impact that could have. then get ready for more earnings tonight. we have instant analysis on the numbers for fast food giant yum brands. kelly's in the city. i'm back here in the suburbs. we look forward to seeing you at the top of the hour. tdd#: 1-888-648-6021 there are trading opportunities 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.

and it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. in clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b,

are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your gastroenterologist about humira today. remission is possible. welcome back, everybody. bit of a blue monday edition of street talk today. very down day. but let's take a look at some stories catching our eye. we have whole foods getting an upgrade to overweight from neutral. i don't know. not really having much of a positive impact. >> on a day like today, nothing will really be up. positive commentary from piper on wfn, they know category growth, price gap improvements

and investments in private label brands, sustainable margins. they increased their target but whole foods, 52, that's about a 15% upside. >> let's take a look, an update on ann taylor. >> interesting call here. siegel expects a negative preannouncement. he says over the past years, ann has provided a fourth quarter update and generally they come out and warn the street and blah blah blah and he thinks it could happen this week. here's what's interesting. he thinks that this concern is making the stock in his words, quote, increasingly cheap. it's down 3% today but siegel is saying listen, he might be an opportunistic player in this name because the stock is getting too cheap. mattel could quadruple the downgrades this morning after recording disappointing holiday sales last week. >> 1% per downgrade, down 4 p% right now. mattel getting walloped. sun trust, longbow research,

downgrading it to neutral from a buy. somebody just beating up on the toy company today. all right. spurned by men's warehouse, josa. bank reportedly in talks to buy eddie bauer. let's talk numbers. craig johnson joining us on the charts, steve cortez on the fundamentals. steve, i want to start with you. jos a. bank, do you think this is some kind of game they're playing as okay, go away, men's warehouse, we will do this in the hope they get reborn together with men's warehouse? >> i do. i don't think this is a reason to get involved. it almost got a bit comical -- >> it's like they're playing games. that was kind of my point. >> it is. they tried to buy them and men's warehouse channeled moe green from the god father and said you don't buy me out, we buy you out.

this is a story for investment bankers right now, not for long term investors. now, there is i think a bit of a floor under the stock price because of this in terms of jos a. bank but in general, retail is trading very, very poorly. i'm short the xrt, the broad retail etf. it's hitting four-month lows today. to me, to pay a market premium, meaning you will pay a higher p.e. than you get for the market as a whole for jos a. bank right now, in that space of retailing and apparel which is particularly troubled doesn't make long term sense. >> are the charts telling a different story or the same story, craig? >> well, they are telling a different story. when you step back and really look at what the stock is telling you, we have recently seen the shares reverse about a two year down trend and they are pulling back just a little bit to this 52-ish level. when you look at a longer term, something is changing. something is getting a lot more constructive with jos banks. a measured objective from here could put the stock into the low 70s. things are getting better.

they are more positive than what you're seeing on the fundamentals side. at the end of the day, stocks don't lie. >> bit of a different story. be sure to check out the online edition of talking numbers in partnership with yahoo! finance. head straight there right now to cnbc.com/talking numbers. coming up, we are following the markets down. we are sitting around session lows right now. plus, you can blame old man winter. why not? everyone else does. that's what some of the auto makers are doing. we'll take a look at the bitter weather impact on january sales. in case you're in phoenix and wondering what we're talking about, this is what we're talking about. a live look, snowy times square, what's left of what they called super bowl boulevard. we will do a little monday morning quarterbacking of our own. did advertisers really get crushed in the second half of last night's game? we'll talk about that, about maserati, just absolutely miserable snowy day on the east coast. if you live out west, you are a genius. [ male announcer ] legalzoom has helped start over 1 million businesses.

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. we're here to help you turn your dream into a reality. thcar loan didn't start here. it started with that overdue bill he never got. checking his experian credit report and score allowed him to identify and better address the issue. then drive off into the sunset. experian.

sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

looking at a live picture of new york city here. mayor bill de blasio saying they have been unable to get a handle on plowing the six inches of snow because the snow is fall sog fast. new jersey governor chris christie issuing a state of emergency for that state. i'm getting word from home that the power is off. not ideal. if i'm not on the show tomorrow, send help, you know what i mean? >> do you keep like a pillow and thermos in your car just in case. >> i'm more optimistic when i go out on the road thinking i won't need that due to my skills. >> you have to be prepared. speaking of snow, some automakers pointed the finger at this year's wet and wintry weather saying that that is to blame for their sluggish sales in january. our very own phil lebeau is in

chicago where it's a balmy 20 degrees. phil, is that a fair thing to point to, the weather, considering not all the automakers did badly. >> i think it is a fair thing to blame it on, mandy. when you take a look at those automakers who are most impacted, they have the heaviest concentration in the eastern half of the u.s. we just received word that the january auto sales rate, 15.24 million vehicles, that compares with the estimate that many on wall street were expecting just of two or three weeks ago of 15.7 million. basically 12.24 on par with where we were last year. look at the sales numbers for the month. they were terrible across the board. if you see where the impact was, it was greatest on the eastern half of the u.s. the central u.s. down more than 10%. eastern half, down 1.9%. and then you see the southeast down anywhere from 1% to 5%. the west coast is the only area where you saw any kind of a growth in auto sales. no surprise, they really didn't have any bad weather on the west, and that's why you saw

sales generally okay for the month of january. real quick, again, that sales pace of 15.24 million, that is just terrible compared to what was expected, and there's the january sales numbers, gm down 11.9%. chrysler up 8% but they were even below expectations. we did see weather impact how many people were coming into dealerships, particularly in the eastern half of the united states. >> all right. let's talk about this d.o.t. mandate. some question about whether it is a mandate about vehicle to vehicle communication. what can you tell us, phil? is this another case of big brother in the old passenger seat? >> it's not a mandate but it will be eventually. they are moving towards ultimately saying to all the automakers, you will have this technology in new vehicles. when, they haven't given a time line yet. i suspect we'll probably see this in all new weeks within four to five years, and i know there are people who are out there saying i don't want everybody knowing how fast i'm driving. >> that's right.

>> or if i was ultimately in an accident. they're saying this is going to be technology so cars can talk to each other to prevent accidents. it will not be a communication monitored by a third party. >> what about the implications with insurance companies. it was the car, it was me. >> maybe that can already happen right now. if you get into an accident and you say i don't know that happened, there's a little black box if there. if there's a serious enough accident, they can take you to court. they can already do that right now. it doesn't happen all the time, but that ability is there. >> but right now they can't -- maybe they can, phil, and i'm wrong. like geico could be like, mr. sullivan, your average speed last year was 81 miles an hour. here is an 81% increase in your insurance premium. >> that would be regulated by the states and the states can say the data that is being transmitted between cars cannot be tapped into by a third party. that's the idea at this point. could that change in the future? probably. it could. but at this point the idea is

that this is all about cars communicating with each other on the road. >> a seismic shift, indeed. phil, thank you very much. >> that was clearly -- i was making that up. cruise control is on 67.5 miles an hour only. just -- there we go. all right. elsewhere in the auto world, what you're seeing on your screen right now is the first ever tv commercial for maserati. it aired last night during the super bowl. got a lot of buzz, too. robert frank, it was like is this an end of the world movie? is this an ad for some relief program? >> is maserati teaming up with aliens to invade the world in the strategy is understandable. maserati is going head to head with bmw and mercedes for a $67,000 car. they're going down market relatively with this cheaper car. this was not conveyed in this ad at all.

a good strategy, a bad advertisement, but it speaks to what's happening in the broader luxury economy which is so much of our spending right now is done by those at the top. >> indeed. actually test drove that maserati -- >> and you liked it. >> okay. let's look at what's going on quickly with the markets right now because we're down over 300 points on the dow. the nasdaq is below the 4,000 mark. the s&p is also sharply in the red. we're watching an accelerated sell-off going into the close. still an hour left in the trading day. >> if you're wondering, there's eight s&p 500 stocks that are up right now. carmax is up 1.3%. kmx. pfizer, edison, the southern company and mosaic. that's it. if you own one of those names, congratulations. and time warner cable because no other stock in the s&p 500, mandy, is higher but those eight. and eight is definitely not enough in this case. >> it is not. okay. >> genuine parts down 5.5%.

tractor supply. retailers are getting walloped. everyone thinks we're insane talking about heating bills. i think it's a big deal in the economy. >> taking a massive chunk out of everybody's discretionary income. gold is higher. the vick is above 20. that is spiking as the fear gauge out there. what is lower as well? it is the ten-year yield. it has broken below 2.6% today. there we go. we just pulled up a gold chart for everybody. it's up 3%. when you consider what a terrible year gold had last year it's one of the comeback stories along with coffee. >> by the way, herb, if you're out there, my coffee bet with you, i'm in the money now. coffee is up 20% year-to-date. score. plus you know what else is up 20? the vix. the vix has just crossed over 20. it's up 13%. the fear gauge is higher. thanks for watching, everybody. >> "the closing bell" is after this quick break.

in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. 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. but with less energy, moodiness, and a low sex drive, i had to do something. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer,

worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about axiron. well, anyone hoping the losses would stay in january is sorely disappointed today. it's more of the same for the stock market in february. welcome to "the closing bell." i'm kelly evans. >> i'm bill griffeth here at snowy cnbc global world headquarters. yes, if you thought it was going to be over in january, it's not. in fact, it has intensified just in the last few minutes here on what has been a down day