have done well in the main. >> they have. it's interesting, the losses in the dow approaching triple digits a digits. it's been a pleasure, simon. >> always a pleasure. that's all for "power lunch" heading into the weekend. >> have a good weekend, everyone. "street signs" begins right now. have you had enough of ipos, hft or any other acronym yet? sorry if you have because we have more for you, particularly on ipos. also, the kids are all right or are they? the tale of two millenials. and herb's biggest blunders penned by none other than herb himself. >> you are a vip and that's a-okay. i want to throw that out there. friday quickly becoming a tech wreck. whatever happened to boring fridays? not for the nasdaq. you just heard sue and simon talking about it.

look at this. the nasdaq peaking right at the open a couple minutes afterwards. pretty much been a black diamond ski slope since then. the nasdaq, the worst performer today, the worst performer over the past month. 52-week high on the nasdaq, 4371. let's get to sheila dharmarajan for what is moving this market so far down on the nasdaq on friday. sheila? >> nasdaq down more than 2.2% for the day. we are off session lows but keep in mind the selloff we are seeing today is amongst the top three worst days for the nasdaq in 2014. really, the weakness is everywhere. keep in mind about 95% of the nasdaq 100 is in the red right now so a lot of pockets of weakness to talk about. got to talk about the biotech names. this really rallied the nasdaq back in 2013. today, it is down about 3.5%. it's really that lack of momentum that traders are concerned about. speaking of momentum, got to talk about the momo names, the names that consistently go higher or lower with the market. despite whatever news might be

out there. those names are getting beat up pretty hard today. facebook, tesla, priceline, all these names we talked about. if you look at how some of these names have done since hitting their yearly highs in early march, they are down big. tesla, for example, down about 20% since hitting that 52-week high in early march. illumina down 25%. facebook down about 20%. finally, got to talk about large cap tech. we are talking about google, amazon, microsoft, also apple. google, apple and amazon are now in negative territory for the year. i want to put it in perspective. look, in 2013, the nasdaq had about a 35% gain so a lot of people saying the fact we are seeing correction is okay. but the problem is we don't see a firm commitment to the bottom and that's what traders are concerned with. >> thank you, sheila dharmarajan. let's talk more about this, find out what's going on. mike crofton and brian lisorza condition and herb is joining us as well.

mike, are you advising your clients to stay out of higher valuation stocks into more defensive large cap stocks? >> no. because we never really had them in the high flyers. a lot of those companies don't have earnings, they just have presumed growth. as that growth comes out of the market and there's not earnings to underpin the fundamentals, those stocks can sell off fairly broadly. we love the market otherwise. the s&p is holding up extremely well today, the dow seems to be holding up okay given the terrible reaction of the nasdaq to some of this selling. we are fairly constructive on the market through the end of the year. >> what's going on? what do you think is going on about the momentum names and social media, in biotech? is there a bigger thing at play here that we do need to take care of? >> i don't think so at this point although it's something we are certainly watching closely. you've seen most of the weakness as you have been noting has been

in those high momentum groups, the biotech, social media names, and some of those were due for a correction. they have had quite a run. some consolidation was due. you are also seeing a little bit of a flip of maybe quarter end window dressing, people had bid those up going into the end of the quarter and now they are taking a little money off the table. at this point, it looks like more corrective in nature, although we are just going to have to keep an eye on it and see. >> i will follow up with you, brian. there are two corrections, the one where it will correct back up later and every drop is a buying opportunity, then there's a multi quarter or multi year slide. which is this? >> it's too early to tell. i think -- >> that makes investors nervous to hear that. right? >> yeah. certainly. every large top begins as a small top, right? so this could very well be the start of something but we simply have not seen enough evidence yet to convince us that the end is near because of this.

that's how we use technical analysis to kind of navigate the markets rather than prognosticate. >> do you agree with that, herb, this could very well be the start of something but it's too early to tell? >> every time somebody has said that, it has been too early to tell. then things have bounced back. one of the interesting points here is this is occurring after the quarter's end, not perhaps the result of window dressing coming off, but there have been some funds coming out with some pretty big declines, so you wonder if some of the bigger funds that had been loaded in some of these because if you go to their portfolios and see what you own, this is some of the stuff they own, they are bailing out of there. >> mike, the names that are dropping the momentum names, the momos because we are in the media, we like to make things like that up, these are the traded names. does this tell you that traders are rotating but maybe investors and there's differences, right, are staying the same? >> yeah. i think that's true. i think the market is

schizophrenic. new economy momo stocks and everything else, the old economy stocks seem fairly well valued right now. if you really believe, if you believe the economy is going to pick up steam in the second half of the year, there is great opportunity there. >> do you believe that? >> i do. yes, i believe the market -- the economy will pick up steam in the second half. it's a great time to position stocks that are being sold off for really no apparent reason other than there's a selloff going on. even in names like gilead, they get below 70 it's an incredible bargain. >> all right. guys, we really appreciate it. brian, mike, herb, and herb i think we will see you later on with your five biggest mistakes you ever made. i personally can't wait for that segment. see you then. the other big story today, this is a big one, the ipo market. four new names hitting the street today. they are all at more than double digit percentages. grub hub up more than 38%. bob pisani, we will talk more about this but is low float --

how much is low float, the number of shares being sold to the public, a part of this story? >> huge part. it has been for a couple years. most of these companies are selling 8% to 12% of the company. used to be in the past as much as 20%. smaller float means more -- if there is more demand, price goes up and they sell secondaries six or 12 months down the road. take a look at some of the big cloud-based software service companies just in the last six weeks here. rubicon project up 32%. q-2 cloud based banking for regional banks on the upside. educational software service, 2u. this is a pretty good group here. look at the biotech and pharma now. these are much weaker. i did this at 11:00. these numbers are even weaker here. these are all on the downside now. that's important. that group is relatively weakened. if you look at another generic

group, coupons.com is up, cvs outdoors is up, everyday health. but king digital to the down side. if you look at the ipo etf, and there is an etf for it, had a great run to the upside but it's now been moving down in the last several weeks here. that's a clear sign that the big momentum names, biotech stocks, are to the down side. take a look at the ipo, that etf versus the s&p 500 and you will see, look at that big outperformance, the white line, the ipo etf versus the s&p. now it's negative for the year. guys? >> you can see exactly where it crosses over. thank you very much, bob pisani. let's bring in another authority on this subject. herb is still sticking around as well. david, i know you agree with bob that these low floats artificially push the price up but there's one real issue i want to raise. we have been talking about high frequency trading and whether or not it creates an unlevel playing field. you also believe that ipos are quote, rigged. >> i will use the word rigged.

i will be very clear about that. because this is a game that favors those with the money. it's the simple formula. as much as all the regulations have tried to come in and fix this situation, if you look at the allocation curves, the people pushing the big money around are the ones that gain the favors of the brokers. it's not a level playing field. clear and simple. >> but unlike high frequency trading, to mandy's point, which is still a relatively new phenomena, the phenomena you are talking about which i completely agree with you on, is not new. doesn't make it right. the ipo market has always been you pay and get to play. >> right. the market as a whole has always been about just because you can do it doesn't mean you should be doing it. nobody has stepped up to say how they want to level the playing field. the small investors always get the short end of the stick. >> herb? >> i have a question here. that's -- you mentioned they are rigged, and that gets back to the old days. what does that mean for, say, flippers? is the ipo market back to where

it was, you're lucky if you get in, you flip them out? i thought that was done ten years ago. >> no. the flippers are still very much alive. the only difference is the dbas they used to have which could have been 50, 100 or 200 doing business as basically have now been cut by the clearing firms. so a company that was working with 100 of them, maybe they are only down to five at this particular point because there is too much risk with cross-guarantees between dbas and it's very cloudy water. >> where does this leave the investor? >> well, the individual investor unfortunately is going to have to sit and wait until most of these stocks begin to trade. once they trade, they have to make a quality decision as to whether or not this is a stock that will be real. >> are you happy, david, with the quality of the companies that are going public right now? >> there is a bifurcation in the market, clearly. i cannot reconcile is probably the best way to put it the kings, for example, what we saw with grub hub. >> let's expend -- we got to

wrap here but just quickly, this is what the market is supposed to be about. mandy wants to start a company, needs $100 million to build a factory. so mandyco sells shares, you buy them to participate in the profit, she gets $100 million to build the factory. there's a lot of companies going public. i'm not picking on any specific names. they don't seem to be doing anything, they're not buying other companies, except just to pay their employees. is that wrong? >> it's not necessarily wrong. they are gaining access into the corporate market so that they have the ability to raise money if they need at a later time. >> many of these are already flush with cash anyway. they got -- >> brian, brian -- >> it's not like they are struggling so let's go public because no one will buy shares of a struggling company anyway. >> i just heard herb in my ear. >> the window is open. when the window is open, you want to be there. it's as clear as that. we don't know what will happen next week. if this market continues doing what it's doing, that window may close. people will say gee, i wish i could have gotten out there. >> herb, do not go anywhere. we will get back to you.

david, thank you very much for your comments. herb, you will be eating crow big-time but i like that you're willing to come on and talk about eating crow. you will reveal your biggest stock blunders ahead. >> you could say that segment will be ravenous. first, a tale of two millenials. how the jobs report tells two different stories about the nation's young 'uns. the dow down 106 points. we are falling, folks. financial noise financial noise financial noise financial noise

i would like to say happy friday. the dow down over 100 points. but the economy did add 192,000 jobs last month and the unemployment rate held steady at 6.7%. if you're just out of college, that number is higher. that unemployment rate is nearly 21% according to the government. steve liesman is here to explain why the kids may not be all right. >> hope they have music with that. that would have been wonderful. the story is not a great story. i want to focus on the millenials here and look at this group, 20 to 24. the folks 25 to 34 who also count as millenials, they are okay. those kids are all right. their unemployment rate is similar to the rest of the population but take a look here. what you have here is the yellow line is unemployment rate for 20 to 24 year olds. it's always a little bit higher. it would be dumb economics to say oh, my god, it's higher, not a big deal. what we did now, in the next

full screen, we took a look at how it's different from the average. i looked at the '01 to '07 expansion. on average from '01 to today, it's 4.5 percentage points. since the expansion began in '09 it's been running hot at 5.6. bottom line, it's about two percentage points higher than it was normally. we do have a problem. some of these folks would go back to school, that would be good. if they are full-time in school and say i'm not looking for work, i wouldn't count as employed or unemployed but if i'm looking for work, whether or not i'm in school, i would count as unemployed. that's two percentage points. that's a bunch of kids who are not all right when it comes to the job market. it also means you get out of school, you got these big debts, these big loans, and it's tougher to pay them. >> we have also got with us in person today the atlantic's derek thompson. great to see you live and kicking. love your stuff.

you say don't blame the kids, blame the economy. >> let's take another look at these stats. >> i want to blame the kids. >> don't blame the kids. >> right now, unemployment rate between 20 and 24 is about 12% and change. the overall unemployment rate is 6.7% so the youth unemployment rate is 1.7, 1.8 times the national average. in the 1990s, that rate was about 1.7 to 1.8 times the national average. in 1980s, 1970s, 1960s, 1950s, youth unemployment rate was 1.7 to 1.8 times national average. the problem we have here is just a multiple. we have overall inflated unemployment. historically, you always tend to see this exact same multiple play out. >> lot of numbers. i will see those numbers and ante up a little more here. 3.4%. know what that number is? the unemployment rate of those over 25 with a four year college degree. yes, it's hard when you get out of college but statistically, if you want a job and yes, oh, my

god, you have to suffer for a couple years out of college because you are 22 years old, that's what happens. as you get older, if you went to a four year college, statistically you will probably get a job. >> that's true. what we have seen in this recovery is that a lot of young people have sort of taken cover in education. a lot of them have said the opportunity -- >> just get more debt, dude. >> this is something that happens all the time. when you get into a situation -- >> is your phone ringing? >> that's my phone. >> this is not a call-in show. >> here's the story. there's a great theory out there which is that you have a higher unemployment rate for people in that age group because of the construction boom. people were sucked into the labor market and out of school because they were easy good-paying jobs in construction in the early part of this millenium and they ended up not having the education. the construction boom ends, housing crashes, these folks end up, some of them maybe without a

high school degree and certainly many of them without a college degree and that's part of the problem we are dealing with. >> i reject derek's concept a little that i should go back further and i would find it to be normal. i'm not sure that going back to the '90s and '80s is the right way to judge are we back to normal. the more recent period is the better comparison. we can fight over that. >> good stuff. got to go. very quick question, derek. you are closer to college graduation age than i am. do you believe the kids of today are sold a bill of goods, go to college, get a degree and everything will be fine? >> look, like you said, the unemployment rate is twice as low for people that have graduated from college. the entire body of evidence says there's a college premium, you are more likely to make a higher wage -- >> it does pay off for most. >> for most. >> not for all. >> it's an investment. like any safe investment, sometimes it doesn't pay off for individuals. >> great to have you both with us. grandpa liesman, young ruffian

derek. millenial problem having an impact on the housing market. diana olick, how is this related? >> reporter: well, look, millenials in general are your first time home buyers. they have been largely left out of this housing recovery. why? because they are dependent on mortgages and mortgages are much more expensive today than they were during the housing boom. not in the rates but because you actually have to put money down today and pay that full rate up front. imagine that. add to that also that home prices have been rising very quickly, up 12% from a year ago, but wages are up just 2% from a year ago. millenials, as we have been talking about, do not have the best employment rate of the adult group. so that makes homes particularly unaffordable for them. but then again, affordability is actually shrinking for everyone right now. in fact, in seven major american metros, more than half of the homes currently on the market are unaffordable for local residents. that's according to zillo which looked at incomes as well as the

median home prices in those markets. and among the 35 largest metros, nationwide, more than half of homes currently listed for sale in miami, los angeles, san diego, san francisco, denver, san jose and portland, oregon, unaffordable by historical standards. markets like houston, charlotte and phoenix, they are also not far behind. i have been talking to a lot of real estate agents on the ground from coast to coast and it's funny, they keep using the same phrase to me, sticker shock. they have people coming through the homes, they say they have good buyer traffic, it is not translating because the prices are a lot higher than folks expected. more of course online, realtycheck.cnbc.com. >> we will hop to it. thank you very much. we will be talking big money and late night laughs. also we are keeping an eye on the market. tech sector the worst right now. consumer discretionary right behind it. the dow is down pretty big, triple digits right now. we'll see what happens the last hour and 40 so minutes of trading. ♪

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back on february 3rd, the dow fell 326 points, the nasdaq was down more than 100. today the nasdaq is down 101 points, 2.4%. the dow is also down but it's

only down 105. i say only because the whole market is down. but the decline in the nasdaq is, what, quadruple that? so today's action, one day, sort of proves the thesis we have been talking about for a couple weeks now which is higher volume, higher beta, higher valuation that stocks are being sold more than the bigger cap stocks by four times today. >> four times today. it is also the end of an era for late night tv with david letterman announcing his retirement, and the money involved here is really no joke. morgan brennan joins us with more. talking about big biggies here. >> reporter: the question everybody is asking right now, who is going to fill his chair? david letterman, cbs is certainly taking advantage of that, already running a top replacements pool on its website. the top contenders, steven colbert, jon stewart, number three, someone else. number two, conan o'brien and

number two, craig ferguson, who does fill the time slot behind letterman right now. so he has been called the heir apparent for some time. there's something else to keep in mind. advertising revenue. that has been falling for late night programming as tv audiences continue to fragment. it comes down not just to ratings but also to age. the most attractive viewer to advertise is actually ages 18 to 49. when you bring in a higher percentage of younger adult viewers, ad spending tends to follow. take a look at this data from cantor media to see what exactly i mean. the late night shows that saw ad revenue increase in 2013, the daily show and late night with jimmy fallon. also pulling in a healthy number of younger viewers. since fallon took over for jay leno on "the tonight show" which is cnbc's sister network, the ratings especially strong among 18 to 49s. according to the latest neilson numbers, 5.2 million viewers for

fallon and get this, four times as many millenial viewers so this is really something cbs has to consider when it comes to who exactly is going to fill letterman's chair. >> you know how there was that gap where it said other? maybe we can put a female in there. someone like chelsea handler. they are all guys. >> all people that have been on tv forever. >> yes. that's right. mix it up a little. speaking of new and fresh, is hebrew national's kosher? is the pope catholic? remember this ad? >> the government says we can make our hebrew national franks from frozen beef. we don't. they say we can add meat by-products. we don't. they say we can add meat fillers. we can't. we are kosher. and have to answer to an even higher authority. >> all right. yes. that is the iconic hebrew national higher authority ad. from more than 20 years ago. hold on. there's a lawsuit that claims hebrew national is not kosher

after all. today, an appeals court said that case can move ahead in state court. here's the thing. the plaintiffs admit they don't even observe kosher laws. they just object to paying more for what they say are not really kosher products. con agra owns hebrew national and says the suit has no merit. they could have said it's all baloney. this would probably not have been what they would say. coming up next, why jenny from the block is driving one particular stock higher today. and we are keeping an eye on the market selloff. the nasdaq, a two-month low. in my world, wall isn't a street... ...return on investment isn't the only return i'm looking forward to... for some, every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college.

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first of all, why don't we take a look at what's going on in the s&p 500? it is down by 1%, folks. at this stage the only sector of the ten that is moving higher is utilities, telecom has just proven me wrong. it's just pushed into the green. the s&p did hit earlier on this morning a brand new record high for the third time this week. but the really big story of the day is the nasdaq. it's the second worst day of the year for the nasdaq. it's these momo names which are really being sold off. so much more than, for example, what's going on in the dow.

four times. >> we were just talking, i don't think the market is actually that weak today. >> that's right. >> it's the valuation names you mentioned are getting whacked. telecom just turned negative. utilities have dividends in common. people are rotating into the income generating stocks today. >> also another "d" word, defensive. utilities often considered more defensive as well. it is time for our daily rundown. let's take a look at ad ink moving to the upside just a little bit but it is a down day. they did get an upgrade to outperform. >> yes. their target $53. indicates potential upside. valuation call, right? revenue actually not that bad, up 2.5% year over year. >> we also have anadarco petroleum, the target upped to $111 from $99. >> the stock's at $102 so potential upside of about 10% to 12% being seen there.

rating remains outperform. credit suisse, ubs, jpmorgan upgrading this name which is already up 27% year to date. game stop in the red despite an upgrade to buy from mutual at b of a merrill lynch. >> interesting call. the target is hiked to $56, that's about $13 and change of upside. the stock's down today. they cite improved risk/reward. earlier this week or last week, walmart basically said they are getting into game stop space? >> that's right. eating their lunch. >> apparently not. >> moving on to mylan, trading higher. the biggest gainer on the s&p 500 today, getting an upgrade to buy from neutral at citi. >> this land is your land. this land is mylan. don't shake your head at me. target hiked to $61 a share, shares still up despite the news they failed to acquire a swedish drug maker in a stock deal. investors don't seem to care. the average target is -- what's

going on around here? everything is falling -- remote controls are being thrown. it's chaos. chaos, mandy. now, to talking numbers and the battle of the bold-faced names. today's name, msg, madison square garden. a j-lo led group outbids a sean diddy combs backed group to own the fuse tv network. did you follow that? let's follow msg stock. jeff tomasullo and rich chiullo. a reason to own msg? the sale of fuse? >> absolutely. they will sell this asset for between $225 million and $250 million. we think that's just enough to get management off their position and they will start returning cash to shareholders. talked about dividends before. we think those start paying a dividend and perhaps they will also buy back shares. initially about a million shares and they will probably leverage up, raise about $1 billion for a more significant buy-back over the next 24 or 36 months.

>> so look for a dividend and buy-back. what about the technicals here, jeff? what do they tell you about madison square garden? >> you can't get any better than this. in 2012, this stock had a tremendous upwave as you can see on the chart, nearly tripled. now it's doing exactly what i wanted to see, sitting in a little bit of range between 54 and 62, a break above 62, you are getting long and that's a continuation of that trend. >> there you go. you guys were so quick, good, concise and we don't even need to go on there. >> everything we needed. >> that's the idea of talking numbers. rich likes the deal, likes the sale. cash in msg's pocket. go, knicks. that would also help. not sure there's a lot of hope there. >> be sure to check out the online edition of talking numbers in partnership with yahoo! finance. up next, will a judge order gm to tell customers to immediately stop driving recalled vehicles? the latest on that next. i can't wait for this

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coming up on "closing bell" is the market really rigged because of high speed trading? it's the question we have been asking all week and new york attorney general eric schneiderman will join us to tell us whether he plans to launch a probe into this controversial practice. also, we will show you why grub hub's stellar debut could actually be a red flag for the ipo market. and as you may know, a majority of the members of congress now have a net worth of at least $1 million each. but one lawmaker in d.c. says they are underpaid. is he right? or just out of touch with the rest of america? we will have that as this selloff intensifies going into the close. that's coming up. guys? >> look forward to seeing you at the top of the hour. thank you very much. in the meantime, we are showing you a chart of the nasdaq composite, down by 2.7% which means it's having its worst day since june of 2012.

in terms of the actual range it's been trading in, it's a range of more than 3% today. we are seeing a big selloff in a number of momo names, like biotech, social media names. once big flyers like netflix are having a really hard time of late. >> here's the story. your point is well taken. so the nasdaq is down four times more than the dow. there's a rotation. let's bring up the ibb, the biotech index. biotechs have been ridiculously hot for 12 months. the ibb is down 4.4% so the ibb is down nearly double that of the nasdaq which is down four times more than the dow. that proves the thesis that you just talked about, about higher valuation. not just -- again, no offense, it's not just momentum stocks here. it's higher valuation names and also, i don't want to call them wing and a prayer but a lot of biotechs you buy them because you hope the drug works. >> you are buying a promise, a hope. >> yes, a promise that tesla

will grow its sales exponentially over the next decade, buying a promise that facebook will become the single platform, a promise that twitter will become more than a news delivery service. a lot of promise names. >> we will call them the promise names. momo is so last week. >> we can't guarantee that. happening right now, a federal judge in texas deciding whether gm should tell customers to stop driving vehicles that have been recalled. eamon javers with more on this developing story. >> reporter: it's u.s. district judge gonzalez ramos who will make the decision here. gm is fighting this. they don't want to pull all these vehicles off the road. you remember earlier this week we saw gm's ceo mary barra up on capitol hill. she was asked whether these recalled vehicles are still safe to drive. a lot of chevy cobalts and other vehicles. she said yes, they are, as long as you don't hang anything too heavy off the keychain. a lot of senators and members of congress were not happy with that. they asked her whether she would let her children drive this vehicle and she said yes, as

long as you follow recall instructions, it's safe. we will see today whether the judge agrees with that. >> eamon, thank you very much. still ahead, we got a lot to do in about 19 minutes. you ready? >> i'm ready. >> we got herb's five biggest mistakes. what else? >> we will think robot to lattes and a lot more on this late friday selloff. a look at the names we have be talking about. we have two big money guys joining us to tell us what they are doing with their money, what they make of all of this. it's a big question as to whether or not this is the start of something big. we have been watching this happen, a fair bit over the past couple weeks. we need to know whether it will spill over to the broader market on the longer term. e financial noise

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and tomorrow you'll do even more. that's what comcast business was built for. slow dsl from the phone company was built for stuff like this. switch to comcast business internet. then add voice and tv for just $34.90 more per month. and you'll be ready for tomorrow today. comcast business. built for business. welcome back, everybody. we are keeping our eye on what is going on with this late selloff on the markets, in particular we are watching lumina here. it is the biggest selloff in the nasdaq, down by 8.5%. there are other names we have been following that are also selling off big like isrg. we talked about that with herb just yesterday. we will keep an eye with what's going on in the market. the nasdaq now on pace for the worst day since june of 2012. >> we first introduced our next guest at the cnbc town hall in atlanta a couple years ago, he was one of the original

employees at four square. probably shockingly to some, he gave it all up to start bevel. a shaving company. tristan walker, great to see you. been awhile. you have obviously been extremely busy since the town hall. >> very bigsusy. >> you left one of the greatest venture capital firms out there to start your own company and its first brand, bevel. why? >> it started out of frustration. for 15 years of my life i wasn't able to shave with a lot of mass marketed tools out there. i felt there had to be a better way. the opportunity was fantastic. so what we created was the first and only shaving system designed specifically for men like me with coarse curly hair. >> okay. has it been well received? >> it's been great. we get a ton of e-mails from customers saying tristan, thank you for finally offering a product that i can teach my son to shave with. thank you, finally now being in the army, i can shave without worrying about razor bump and razor burn. it's very exciting. >> you know better than us,

everybody in the world wants to leave what they're doing and race to silicon valley to get in on the billions of dollars that you guys were creating. you went old school. you went back the other way. what's it been like for you? you are making stuff. real physical stuff. >> it's great. the misnomer here is that we are actually applying a technology layer around kind of style, grooming and health. i'm taking all that i learned in silicon valley, learning how to scale a cpg business and really disrupt that business online direct to consumer in other ways as well. >> really, this is the way forward. if you want to have a startup, do it online. i know you are looking to maybe get this to redistribution in real bricks and mortar stores but online, this is where it's at. >> the quickest way to reach our customers and be where they want us to be. >> how do you get your name out there? >> you got to have a product that works. our product works. and the brand and the design, folks are willing to talk about it and we are very excited and proud about that. >> okay. two quick questions. you are a young guy so please, one statement, one question,

please give us your best advice to young entrepreneurs looking to do what you're doing. secondly, i know you're not involved in the tech world -- well, indirectly you are, but you know what i mean. but with all that's going on at the nasdaq today and everything, can you give us a comment what you think about tech and valuations these days? >> yeah. i guess i would say the first bit of advice i have actually comes from mentoring ben horowitz, don't give up. startups require courage. you got to be audacious. don't give up. as far as tech and valuations, it's fascinating. there's a lot of opportunity, lot of innovation going on in technology today. the thing that i'm actually most excited about living in silicon valley are the things that a lot of folks don't know about. the things that are still private with tons of opportunity ahead of it. >> i think yesterday, didn't you get some advice? everybody at some stage in their life to go work for a startup. >> i agree with that. >> what's going to be hot, the next hottest thing? >> i think walker company is amazing. >> good, man. you are good. >> thank you so much. tristan walker. >> good luck. let's get another check of

the markets now. herb, you are back to give your three cents' worth. brian, i want to ask you what you think is going on and whether or not this is something that might be something that goes bigger than this. >> well, obviously technology's the driver to the downside here today. the big thing, though, we've got to look at what's driving within that, internets and biotechs have been the two weak sectors here. you are seeing momentum building to the downside. these areas did fabulous in '13 and the first part of '14. biotechs started rolling over late february and the internets in early march. >> that's what i find, not all momentum stocks are created equal. are there any names out there that are immune or have been like thrown out with the bath water, that shouldn't have been sold off in the way the others were? >> well, you know, the hard part with a lot of these names is their valuations beauty has been in the eye of the beholder. everything has a price per se. we do like technology.

that is an area we are overweight but our whole approach to the market this year has been waiting for your spots. when you look at the s&p up 32% last year, 16% the year before that, you know, our biggest headwind for markets this year is how great last year was. so what been doing is want to be more selective in buying on pull backs and looking at this pullback you have seen in technology is the start of something but we think that the volatility is probably going to continue into the summertime. as such investors need to be vigilant. >> you know, herb, to the point we talked about and mandy talked about it and everybody talked about it, the dow is down, yes, but it is down 1/4 of that of the nasdaq which is down 1/2 of the biotech. while everything is down, it is one is getting hit worse, there's a rotation happening. >> well, what i can tell you is throughout the day -- i would look at a company like solar city, two days getting clobbered. even this morning getting clobbered. now it's off just 1.5%. i look at underarmour down 8%.

i come back to saying if you didn't know better, you would say there are some funds that have had some trouble or something else is going on, they are unloading. something just isn't making sense with this one right now. >> kevin, are you using today as a buying opportunity? osenie or a selling opportunity? >> well, we didn't buy or sell today. in fact, some of what brian said makes a lot of sense to us. when we came into the year, we saw that the market had a big run. we tend to be value investors. the market, we said, would have to go through a period ever consolidation. that seems to be what we're looking at. we're looking at a market that more or less sideways for the year. a lot of economic data not only here in the united states but you look abroad, there's a lot of soft data out there. that can kind of corroborate some of this. when you get down to what herb said and get into the intraday action, you had a good number on jobs this morning. the market was off to a good start. then midday it started to lose

its mojo and now you're do you know on the day pretty significantly but there's no major news that corresponds with that sell-off. i'm a little puzzled about that. >> kevin, by the way, thank you for the compliment. we've been bringing up the nasdaq. i don't know if we have time to call an audible. can we bring up the s&p small cap 600. it's down 2.25%. we're not just seeing the higher valuation names. we're seeing the smaller names, too. if you had to buy a stock today, would you go mega cap? >> well, we've been seeing value in two places. we've been seeing value in technology and health care. i would say over the last month or so, we've added a few names in those sectors. balance sheets are good, valuations in old tech seem pretty good, health care looks pretty good. over the last month or so we have been adding a couple names there, but nothing really stands out today, but i will also say if you're looking at technicals

in the market which -- >> many do. >> a lot of people do. >> we do. >> every day. >> a lot of people do. i tend to be more of a value guy, but if you're a technician, you may be looking at this market and not liking the action technically. you may wouldn't to take some risk off and you will go to your highest beta and most volatile things which would be the biotechs and small caps. >> sit tight for a second. i want to go to dominic chu. there's a lot to look at. >> a lot to look at. this is semantic. reuters is reporting large activist funds are examining the company as a possible takeover target. now, that stock you can see spiked at one point up about 1% so far this day but still interesting that symantec which just went through a ceo shuffle is up possibly on takeover chatter for activist investors. brian, back over to you. >> thank you. so, well, i guess we let kevin and brian go. thank you kevin and brian, if you're out there. up next, what is herb's five

biggest mistakes of all time? >> he'll be fessing up when he messes up. herb is there, he will reveal his top five. >> someone has got to. we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going to have to rethink this thing. it's hard to imagine how much we'll need for a retirement that could last 30 years or more. so maybe we need to approach things differently,

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welcome back, everybody. let's take a look at what's happening with gold. it is currently sitting at $1,303. why are we bringing this up? of course, the markets are moving down, particularly the nasd nasdaq, not so much the s&p and dow percentagewise but gold has

pushed through the $1,300 mark. we're up by 1.5% which is about 20 bucks. >> yes, and who am i to argue with you, but i will. >> no doubt. >> i know i will lose. gold is up 1.5%. the nasdaq is down 2.5%. >> correct. >> they're not particularly core la tiff. currency instability will drive gold more i think. >> there is the nasdaq down by 2.6%. >> wow. >> absolutely nobody, not even this gentleman here, is always right when it comes to stocks. making that point. herb greenberg says he's learned the hard way more than a few times. he's here and it's very brave of you, you have a few of your biggest stock blunders, five to be expect. they include starbucks, monster beverage, intuitive surgical, netflix and amazon. which would you like to start with first? >> let's start with starbucks because it was the one that fooled so many people when it came out of the gate in the early days, opening stores right across from one another.

we said it's ridiculous. you say it's never going to work. so especially for coffee. lesson learned in this because i have lesson in each of these. the rules of retail can be broken. starbucks is great proof of that. the second -- >> first off, let's hit the food mistakes. then you have monster beverage. did you make the same mistake for the same reason on monster and starbucks? >> no. monster was totally different. i used to cover the beverage industry. i just assumed the big guys would quash them if it was really a product that had legs. >> you know what they say about assume. it makes a what out of you and me? >> yes, we have been there more than once, brian. >> when you assume that the big guys would -- you're talking about the cokes of the world, right? >> absolutely. and, you know, i did a lot of research, talked to competitors, ex-employees. guess what, they don't always tell the truth or at least they don't have it right themselves. >> let's talk about intuitive surgical. i'm not entourly sure that

you're entirely wrong on this. isn't the jury still out a little bit? >> well, you're going back five, six, seven years. when he was doing moy research, the one thing i didn't talk about is there would be every hospital for marketing purposes had to have at least one of these robots inside the hospital and that's where i really got it wrong. i just thought they would see what i was seeing, the productivity in the operating rooms wasn't what it was expected to be. and that gets back to the lesson, don't overlook the obvious and that was the obvious, that everybody hospital had to have one. >> you may not be wrong on some of these names. let me ask you a question as we go to break. one of my predictions was gold would tank. are you still wrong if it just happens a year and a half after you say you think it will if you're ultimately right, are you wrong? >> no, no. >> that's my view, too, but i, of course, just don't want to say i'm wrong. >> the point is some of the stories evolve over time, and it

depends on if you're a trader, an investor, long term, short term, good luck. >> and you're bottom line is making mistakes is human, learning from them as well. thank you very much, herb greenberg and thank you, everybody, for of whwatching "s signs." >> much more coverage of this market on "the closing bell." >> i'm bill griffeth, that has been the story today. the dow is down enough as it is, down 147 points right now. a 1% decline or thereabouts, but the nasdaq is the story. the biotech, the internet stocks getting hit. those are all the components of the nasdaq 100, and in the upper left-hand corner you can see only three of them are positive today, including