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 staples and

mylin labs. we're watching a broad based sell-off in technology, and you wonder, kelly, if this is the beginning of this long awaited correction in the market right now. >> i can tell you that's a lot of the chatter on the floor down leer. meanwhile, u.s. attorney general eric holder telling congress today he will look into high frequency trading, something the new york a.g. eric snyderman is also pledging to do. will it effectively be criminalized. >> really looking forward to that conversation. and the average congressman makes about $175,000 and works roughly 125 days a year which averages to about 2 1/2 days a week. i know i'm leading the witness on this, but one prominent member of congress is claiming that lawmakers in washington are underpaid. he said that. you will hear it in his own words just ahead. now, here is where we stand in the markets as mentioned. the dow jones industrial average only needed a couple points to close at a record high. instead, it's giving up 150 this

hour. that's almost 1%. take a look at what's happening with the s&p 500. that broad market index also under pressure on the order of 1.2% giving up 22 points to 1866. a lot of talk about heading into next week whether the 1850 level will continue to be an area of support. finally the nasdaq. we've been talking about it but it's having one of its worst days in some time. off 2.6%, 110 points lower. taking hits on all sides whether it's some of the internet names, bill, some of the pharma and biotech names or even some of the discount brokers. >> 2.6% decline in dow terms would be about 400-point decline on the industrial average but let's focus on the nasdaq where there are very few winners today. sheila dharmarajan, what's behind this move lower here? >> well, look, it's been a very ugly day at the nasdaq. both the nasdaq 100 and composite down more than 2.5%, very near session lows. we are setting up for the biggest intraday drop since

2012. as for why we're dropping, a lot of the culprits we have been talking about, biotech is down more than 4% today. you do have a lot of those high flying momentum names like tesla, priceline, netflix, also taking it on the chin, but i want to point out the sell-off we're seeing today is broad. 97% of the nasdaq 100 is in the red. large cap tech is having a big role in this. amazon, google, apple, all of those stocks are down big today. they have a big influence on the nasdaq 100. amazon, in fact, we're talking about a name that's in bear market territory for the year. a lot of traders telling me they don't like the fact we're seeing a lot of these leading groups, a lot of these leading names now pulling back. never a good sign for the market. i think scott roller put it best. he said we hit new numbers at the open, but inside the engines are rattling and we're seeing a lot of rattling right here at the nasdaq, guys. >> thanks, sheila. we'll be checking back with you as news warrants.

let's talk about the market sell-off especially in light of what was a decent jobs report this morning. joining us for our "the closing bell" exchange, kim forest, david wright, steven wood, mike gibbs, and we've got the tandem team, of course, of liesman and santelli joining us. steve, i need to start with you. the jobs report was good but it wasn't great and the market may have been hoping for great. >> bill, don't blame me. this one is not on me. i could take a lot of blame, take a lot of blame for what the market does but it's hard to look at this jobs report and see what was just being discussed, the idea of the big cap techs going down. this was a pretty good report. 190,000. we got the upgrades up to 37,000 in the prior two months. you have the workweek increase that suggests maybe better earnings ahead. this should have been the report that suggested better earnings ahead with no change in federal

reserve policy. it's also a report that i think confirmed that at least some of the weakness that we've had has been weather related, so that confirms that story that had been troubling the market. so find another culprit. you have to have eight guys there. >> we have a girl, too. kim, what do you think about the markets here? what is responsible? was it the jobs report this morning, is it just the internals of the market here? >> i think it's a lot of internals at this point. the job report as steve liesman pointed out, it was good, not great. perhaps people were looking for great and that would have kept those momentum stocks going, and i think the earlier report that i was listening to before you came to us indicated that a lot of those really high momentum names are falling today, and it just could be that we didn't get the economy that's hot, hot, hot and hiring, hiring, hiring. >> right. david, last time you were with us, we were near all-time highs, but even then you thought this

market was fragile, your term. now we're seeing this sell-off. what's going on? >> greed is good until is isn't, and what we're looking at is rather clearly the end of a cyclical stretch that has lasted over five years where we're very confident that this is a top. just as in 2000 and 2007, the nasdaq performed better and led the final charge. what you need to be looking at today is the s&p 600 and the russell 2000. this isn't just about large technology stocks. this is about a real turn down, a significant short-term down trend that is probably very early in the stages of a multimonth decline. >> rick santelli, there are people talking about a death cross in the ten-year. what say you? >> you know, death cross is interesting whether you're talking the treasuries or equities, but i think that the yield curve is your best clue,

and i think how things like bund yields and ten-year yields align, some of the biggest differentials since the end of the '90s, these are all better signals. when it comes to stocks, today is one ever your best signals. just consider that yesterday's low on the dow was 16,500 and change. we had a higher high today than yesterday. we're now below yesterday's low. if we close below yesterday's lows, those key reversal patterns are much more powerful than the death cross moving averages. as far as treasuries, treasuries are just marching -- we've talked about this, kelly. the one reason you always want to own treasuries and one of the main reasons the yield curve flattened dramatically on the march fed meeting is because the long end is not buying economic growth. they say the jobs number was good. let's consider good. since 2007's high water mark, the population is up 13 million dollar but we have 1.3 million fewer workers. >> rick, here is what's so

interesting, it's moving in the right direction. why doesn't the long end believe in the momentum we've seen in the recovery to this point or is it telling us this is as good as it gets? >> because most of the momentum that you're talking about really is mostly in the equity markets. the momentum is the committee, the bounce back, yes, there's been a bit of a bounce back, and the economy isn't doing badly, but it isn't running the race fast enough. sure, we're beating europe, sure, we're beating asia, but we're not running like the u.s. is supposed to run. >> it's a three-legged race. >> dave zervos had a note out saying this is a goldilocks scenario for equities again and you can understand to some extent why. it suggests the fed won't do anything too hasty to tighten policy. why isn't the market seeing things in that goldilocks report? >> it was a good report, not great. the revisions were quite good. there's nothing that is going to take the fed off center pin. it will be conducive for equities. i think one of the most

interesting facts about the markets over the last two years is there has not been a major pullback or correction in the markets. that might be more noteworthy than the fact we're getting 2.5% on the nasdaq or a point on the russell 1,000. valuations did look full, and this opportunity could be used by active managers to find some valuations where they didn't exist. >> real quick any areas where you see obvious opportunity? >> i think tech after today which would be on the lower end of attractiveness on valuations might have come up. we're looking at health care, financial services episodically and some areas of energy. >> mike gibbs, what are you going to tell your clients here? is it time to take some money off the table? >> oh, no, no. most of our clients are longer-term oriented. i think this is a short-term reaction. the nasdaq was down 5.5% from early march before today. now we're down 8% from the highs. it's been telling us under the

surface the market was not quite as strong -- >> are you going to buy this dip? >> oh, yes. the down volume was close to 90%. we're closer to find the low. i think you have more risk in the s&p coming back in a little bit but i think you're looking at a 3% to 5% downside at the worst and i think by the end of the year we will see prices 6% to 8% higher from where they are. i would buy this dip. >> i don't know if i'm genetically predisposed to disagree with rick and i'm sorry -- >> it's in your job description. >> maybe the market is buying better job growth which means more employment which means some kind of cap in profit margins. we have good job growth, even accelerating wages. the fed remains -- but we've been at historic highs in profit margins and you could see some of that coming off as more money

goes to labor. >> let me just read you -- it raises a question about whether this is goldilocks. peter boockvar says it's the opposite. we're left with relatively tighter fed policy and still a lackluster economy. maybe that's the message. >> it's bronze-ilocks. >> i'm happy to go home with 290,000 of job growth. >> that's the problem. that people are happy with it. it's not enough. that's what the long end is telling up. >> it's double the rate you need to bring down the unemployment. >> it just feels like a stock market thing as we were joking earlier. i'm not sure it's responding to the jobs number but you never know. thank you all for your thoughts on this friday. appreciate it very much. we're going into what is turning into a critical hour here, kelly. >> yeah.

we have 50 minutes to go and 150 points lower on the dow is where we stand. but the nasdaq is by far the biggest loser today posting one of the worst days of the year. we'll have much more on the wild markets coming up. all right. plus, the question of the week, does high frequency trading break the law? attorney general of new york -- attorney general eric holder confirms that a justice department investigation is under way. plus, new york attorney general iraq schneiderman says his office is looking into it as well. he will join us after the break to look in this issue. also ahead -- >> we have almost 30,000 independent restaurants across the country in 600 cities and they're all mom and mop shops. >> wall street eating up grub hub's ipos. some analysts say valuations have just climbed too high, too fast. we'll talk to them when we come right back. right back. ♪

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high frequency trading has been under the microscope. attorney general eric holder confirming a justice department investigation into it. >> eamon javers joins us now with a story from washington.

where do things stand here, eamon? >> that's right. earlier in the week we learned that the fbi in new york was looking into this, but today's comments from eric holder raise the stakes on this. it makes it clear now that this issue of high frequency trading is on the agenda of the attorney general here in washington. that's a little bit of a different level than what we heard earlier in the week. take a listen to holder testifying on capitol hill earlier today. >> this practice which consists of financial brokers and trading firms using advanced computer algorithms and ultra high speed data networks to execute trades has rightly received scrutiny from regulators. i can confirm that we at the united states department of justice are investigating this practice to determine whether it violates insider trading laws. >> and that question of violation of insider trading laws is the interesting legal issue here because one of the questions is going to be, is it insider trading if you have advanced knowledge of somebody

else's activity in the market but only by a few milliseconds? we know you can trade the millisecond level now or even faster, but can you insider trade at that speed? and that seems to be the issue that the department of justice here in washington is now going after, and as you guys have said, the new york attorney general is looking into this one as well. a lot of investigations brewing into high frequency trading, guys. >> that's right, eamon. eric holder isn't the only regulator questioning if high frequency trade is being used in an illegal fashion. new york attorney general eric schneiderman is also veging the practice. >> he's gone on record saying high speed traiting is insider trading 2.0. mr. schneiderman always good to see you. thank you for joining us. >> good to be here. >> there are people who say this is nothing more than very smart people who have figured out a way to use technology to remove risk from the market for their benefit. how is that insider trading? >> well, the reason we call it insider trading 2.0 is there is

some activity that probably does violate existing laws, and there's some activity that doesn't fall within the traditional categories of insider trading that probably should be made illegal. the laws and regulations have to be updated, but i think there's been a lot of hyperbole in recent weeks about this issue. there are some firms and some exchanges that are essentially creating a two-tier system of information flow so that most people are relying on consolidated feed and that's the slow lane but exchanges are selling access to direct feeds to certain companies so they can front run the markets. this is something that has to be evaluated. there may be some violation of existing laws but there's no question we have to take action to prevent there from being a fast lane and a slow lane, to put some speed bumps in the way. the technology is there to fix the problem caused by the expanding and advancing technology and the lack of

regulation to keep up to it. >> you have been looking into this for at least a year. where is the s.e.c. on all of this? >> i have spoken with the s.e.c. our office started looking at this over a year ago, and we reached some early agreements. the s.e.c. sent out questionnaires and they have been looking into the matter and i think you should look for them to take action in the very near future. >> what kind of action? >> well, there obviously has to be an adjustment to regulations. when we started looking at this a year ago, no one was talking about it. people were complaining about it, but no one was really doing anything. in the last few weeks, everybody is talking about it, and there's a very robust conversation going on, not just complaining about things but coming up with ideas and proposals for solutions. >> you have raised a couple. there's one a university of chicago economist has suggested which involves frequent batch auctions for the stock market instead of continuous trading. in your order of priorities, what would be the first thing you would do to correct some of the abuses you see? >> i think the most important

thing is to address the issue of latency are a arbitrage. and that can be done by exchanges. at the very beginning of this we started when we learned that thompson reuters was giving a two second edge to some high frequency traders who were paying a little bit more just for the release of the survey of consumer confidence, and, you know, there are rules and laws that say you have to release information to all customers at once, they can't have multiple tiers. that two-second edge 10, 15 years ago would have been irrelevant. but in the universe of high frequency trading, that's a lifetime. >> that's an easy one to crack down on but what would be the next step? >> the question then is if you are providing information -- you're an exchange and you're providing information to most of your customers through the consolidated feed, through the slow lane but you're charging high frequency traders to directly connect to your computer so they have access to that information ahead of time, it has the same equivalent

effect. they essentially are able to front run the market, to know what the price is going to be before people are able to execute their trades, and that's an advantage we don't want. the markets have lost a lot of credibility and i don't like hearing that people don't trust the markets. our markets have been the fairest, most transparent markets in the world. it's a great product of the american way of doing business and i think this is an area we need to restore confidence but i think all of my colleagues and a lot of the folks who do business on the street are speaking up now about their own concerns which they have been voicing to me and to my office privately for some time, but no one really wanted to do anything about it and now it appears we are going to get some things done. >> and a lot of that is now obviously because of the michael lewis book and that famous phrase that he uttered earlier this week, that he believes the stock market is rigged. it had been going on all week now, and our viewers have asked me -- have heard me ask this

question repeatedly this week and i will ask you as well. first of all, do you believe the stock market is rigged in that context and more importantly, for average viewers watching out there who are investors in this market, have they, in your view, been hurt in any way by the high frequency trading that we're talking about here? >> sure. first of all, i respect michael lewis. he's trying to sell books. he's going to sell a lot of books, but i don't use that kind -- i think that kind of hyperbole is a good way to get everyone's attention but it doesn't move us forward to a solution. there is a cost to investors. there are two essential problems with the current structure of high frequency trading. one is that because of this latency arbitrage, they're able to skim the markets. they're taking a little bit of money out. now, we have to distinguish, and this is very important for those of us who really want -- who believe in the markets and want to solve this, between high frequency electronic trading which is a good thing, which

creates liquidity, and lowers the spread between bid and ask and we don't want to get rid of that, and folks who are trading with information that allows them to front run the rest of the market. we celebrate the technology but when we invented faster cars we had to invent seat belts. that's what we're talking about here. i think investors have been hurt but i also think they are now being panicked a little bit by some of the rhetoric that's out there. it is up to those of us who enforce the laws and regulate the markets to solve this problem quickly. there are great ideas out there. you have a lot of regular brokerage firms and other folks speaking up and saying we're on board to solve the problem. i think you're going to see a lot of action in the months ahead. >> there is a separate issue with some of those discount brokerage firms in particular that's percolating right now and their shares have been hit hard on this question to the extent that they're able to pay order

flow, take advantage of that to bring their costs down for general consumers who are using these platforms. >> it is a separate matter and i can't really comment on it, but i think, you know, the idea for the markets is there has to be -- look, we expect people to work as hard as they can. we're not saying everyone is going to be equal. you can do better research than the next guy but it has to be a fair forum and platform. if people are getting an advantage over other folks through -- by paying someone off, that usually reflects a problem in the markets. the hfts are not getting direct feeds to these exchanges for free. they're paying and we think some of the changes may be making available special technology, extra broadband clips and high frequency circuits to enable them to take further advantage of this. so we're looking at any unfair

advantage. again, the goal is to have people have confidence in the markets that if you place an order with your broker, you won't be in a slow lane and somebody else is in the fast lane that will drive the price up or down against your interest. >> thank you for explaining so many of the different pieces. >> good to see you, mr. schneiderman. >> good to be here. >> heading toward the close, the markets have been picking up pace to the downside. we have 35 minutes left. that's the dow, down 133 points. less than 1%. the nasdaq is what we've been following today. down about 2.4%. that's the nasdaq 100 right there. as you can see, we're showing all 100 components. only three are positive today in case you care. it's mylin labs, symantec, and staples.

>> grub hub ringing the opening bell and delivering huge returns on the first day of trade and even when broader markets are in the red. we'll tell you how it's flying high and if that will leave investors reaching for antacid. >> a former top economic adviser, doug holts-eakin back with us. he will give us his take on the jobs report and if the labor market is on a steady path to recovery. very important issue for the markets coming up. stay tuned. stay tuned.

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welcome back. here is where we stand with half an hour to go in the trading session. it looks like we'll end the week on a negative note with the dow off 130. the s&p, 19. and the nasdaq almost 100 points this hour. >> dominic chu, tell us what's been moving these markets as we wrap up a week. >> so bill, we're going to start with the momentum stocks taking it on the chin once again. we're talking names like priceline, amazon, netflix, tesla, facebook, you know the stocks. they're all getting hit. netflix is down 25% since hitting a high of 458 bucks back on march 6th. utility stocks moving higher as investors move their money into a sector as more of a safe haven play. remember, the fact they delivered high dividends not hurting the cause either. these guys are defensive in nature. grub hub, the ipo up strongly after pricing 7.4 million shares at 27 bucks a piece. you can see them up 35% in trading overall. kelly, bill, back over to you

guys. >> strong performance, dom, especially today. we will discuss if grub hub's ipo is a sign of out of control valuations in the next hour and if this is a bubble in the ipo market or not. we'll be right back. 'll be righ. look at them. making moves that would put an adult in the emergency room. yet all they really want to do is grow up. it's funny, everyone i know wishes they could go back and feel younger. sound familiar? then test drive one of these. current non-gm owners and lessees use your $1,500 allowance to lease the 2014 cadillac ats for around $359 a month with nothing due at signing.

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welcome back. the selling in the high flying momentum and technology stocks intensifies today. in fact, this is the worst down day that the s&p technology sector has seen since november of '12. you had to go back all the way through the big year of 2013 to find the biggest sell-off we've had in that sector. the dow down 137 points, the bigger sell-off though has been in the nasdaq percentagewise, down about 100 points today. it's off the lows right now. and the s&p is down 20 points. kelly? >> now, the march jobs report showing an improvement in the labor market though skilled labor is actually still hard to come by. >> let's see how one company is finding workers that they need. let's go to houston where mary thompson is live from the national oil well technical college. >> n.o.v. as its known, this is one of its six technical colleges. the reason it started these programs was about seven years ago it just couldn't find the workers it needed to install,

maintain, and repair the multimillion dollar drilling systems it makes which you are seeing behind me right now. it's basically a height training course. this is so the workers at the company are comfortable working high above the rigs where you find the equipment. they spend $50 million a year training 450 service technician. 90% of them are men. half the trainees come from the military and many come from the automotive industry. mike evans is a mix of all of them. he joined the program after six years of training military personnel to repair and service navistar's arm yorked vehicles. >> i was reading the news about how the economy was going made me worried about coming home and trying to find something that was going to fit my needs. >> what he found in this program is one that pays $60,000 a year for you to take classes in things like hydraulics,

mechanics, and electronics, and where you can earn six figures in the field. mr. evans will likely be a hod commodity once he graduates. to protect its investment, n.o.v. asks its trainees to sign a contract. they give three years to n.o.v. if they leave before that time, they have to repay them for the training and that's about $70,000. bill and kelly, back to you. >> thanks very much. more reaction to today's jobs report. let's bring in former director of the congressional budget office, doug holtz-eakin, and bank rate's washington bureau chief mark hammer. good to see you both. doug, as i said earlier, the stock market was looking for a great jobs report. they got merely a good jobs report today, right? >> yeah. i think there's two ways to look at the report. one is to go through the pieces and see good news, unemployment flat. good news in hours of work.

bad news in hourly earnings. or you can step back and realize that this is the kind of reports we've been getting for quite some time. some good news, some bad news, no real discernible momentum and that's the troubling part of the report. >> yeah. all the same, mark, we got to talk a little bit about what's happening here. i guess as we look back at what the impact on consumers is going to be, their spending behavior, borrowing behavior this year, what signs are you seeing? how strong is the consumer and how have they been effected by everything from weather to the affordable care act. >> weather obviously hasn't helped. in some case that is just logistics. i think one of the things that's most important in this report beneath those sort of headline numbers is income growth or the lack thereof. that's something the federal reserve is watching closely. just like doug said before in the sense that this is the same old story, it's also the same old story in the sense that we just aren't seeing that income growth that we're so hungry to

see. of course, the fed views that as a lack of inflation problem. >> doug, it's become a tired phrase but i will use it anyway. is this the new normal? you said this is the kind of report we've had for a while now. should we get used to this and if so, i mean, if we want more job growth a higher percentage gain of job growth, what has to be done? the fed is doing all it can right now. >> i don't think this is a problem with federal reserve policy. if we're going to do something different, it has to be on other fronts where we get serious about giving a tax reform across the finish line or take on the increasingly large regulatory burdens, finish the trade agreements, do some structural and permanent reforms that would give the business community in particular a reason to undertake a big cap ex expansion, the thing that's been missing in this recovery and if you do that -- >> but now let's talk political reality now. what is more likely to happen? those are -- >> this is more likely to happen. this is more likely to happen and that's the tragedy. we don't need to settle for this, but, quite frankly, people

are. >> what do you think, mark? >> i don't think the people who work in the building behind me can be counted on for much in the near term. we do have midterm elections this year. i do think though there are some positive stories at the state and local levels where people who are closer to the ground, so to speak, to the political reality, are trying to work through some solutions, and that may be where this has to happen, unfortunately. >> i think that's a good point. i really do. and one of the things you would hope is on the ground we'd start to see the business startups, the new firms that have traditionally been the source of job growth. that would tighten the labor market and give us the income growth that's been absolutely missing in this recovery. >> i guess, doug, if you wanted to look -- where do you look, to silicon valley, some of the big oil producing regions right now that are experiencing a little bit of a renaissance? what lessons can be learning from the state and local level? >> i think state and local policy toward the energy sector is crucial. energy has been big news.

it's responsible for not quite half of all the jobs and we can do more and states should be good curators of their lands but also aggressive about the jobs that are potential there. >> we're watching this market -- this year so far especially has been such a grind for the stock market. you think -- i don't know, it's tough to read the market's mind often, mark, but do you think the market is just becoming impatient with this slow, steady drip of job growth, that we're not getting an appreciable pickup enough right now so now they're starting to throw in the towel here? >> the market has been inhaling a lot of helium over the past year if it's terrifically impatient. obviously it was time for some sort of pullback and we'll see whether that presents itself in a more meaningful way, but in the sense of impatience with washington, you know, we seem to have this bifurcation of the political world where nothing really comes together in the middle. that's kind of the problem with the diminution of the middle class in our country as well. >> that's a great point. you know, surveys even this week indicating fewer people identify

as middle class. have to leave it there for now, gentlemen. there's certainly some concern in the markets that we'll be following closely. 20 minutes left to go into the close. the dow is off 145 points. the nasdaq having its worst day since february. it's interesting that this actually isn't the worst day of the year because we are down about 100 points on that index. only three names in the green. the question now is whether there are any bargains to be had in this sea of red. dan niles tells us how he's putting money to work amid the sell-off. and listen to this -- >> i think that the american people should know that the members of congress are underpaid. >> did we hear that right, kelly? >> i think so, yes. he really said if you want -- he really said that, i'm sorry. we want to know if you agree, she said, with virginia congressman jim moran that congressmen are underpaid. tweet us @cnbcclosingbell.

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>> i'm going to talk about the internet retail stocks because it's no question we are -- >> they're taking a beating today. >> a big drop in the internet names, kelly and bill. even over the last one week you can see that the internet retail index is significantly underperforming the broader markets but here is the thing. when i speak to experts who cover these stocks, stocks like priceline, expedia, amazon, they still say that the long-term bull case is still intact and that what we're seeing is investors just selling the big winners of 2013. the bull case for these stocks being that they're cash rich. many of these names sitting on a lot of cash. second, a lot of them have been able to see or witness revenue growth over the past couple of quarters, and, third, is mobile. these internet companies do have exposure to that growth that we're seeing in the mobile space. so that, again, those three reasons why investors at this point or analysts i should say are bullish on these internet names and what they're saying that this move is just due to investors selling the 2013 winners. >> so with regard to the biotech

stocks, we've been talking about these stocks for a long time, if you look at the battered biotech, it's up 40% over the past year but here is the rub. investors are saying this could be a bad omen because it's down almost 20% just over the course of the last couple of months here since its highs back just about a month or so ago. now, it still trades at 190 times earnings. this etf. valuations need to be really, really looked at. you have to figure growth has to be really high. there are some reasons to be bullish on this. spoke to some traders across the street saying there is a high short interest on these biotecheth etfs. that's a good contrarian indicator. that's why he's looking at them. also will momentum players eventually want to reload on these names if the stock market moves higher? interest rates will be a key

there because if interest rate assumptions they stay low, seema, that means the market may be heading higher and you want to get back into some of these momentum names. >> i think it's safe to say valuation continues to be the big concern, biotech or internet. >> just curious, from your perspective, the behavior in biotech, what does it remind of you? i would love a little historical flavor. is this the blowoff frothy top we get or is it some sort of broader turnover point more reminiscent of the overvaluation we saw in the years around the dotcom bubble? >> that's a great point, kelly. if you look at the overall picture for these types of stocks, you don't get the sense at least for right now there's a huge amount of conviction in selling these names. it's not like you're seeing massive, massive, massive amounts of volume. what you are seeing is some people saying, hey, maybe it's time to take some of these profits here. whether or not that continues is a key point. but it does not feel like this is some wholesale sell-off. it's one of the reasons why some people say, hey, if you look at the charts, it's getting down towards the longer term average. might be time to look at some of

the buys. >> but it's a classic sell-off in a momentum group, a group that had been the darling of the momentum investors and traders out there, and the key moment that we can look to is henry waxman's letter to the ceo of gilead science which sort of gave the clue to the momentum players that congress is on -- looking for a reason to go after these guys. >> that seemed to be the major catalyst that started the sell-off. >> it's not the only one but it's a big one that's gotten the selling going here. exactly. thanks, guys. see you later. 13 minutes left in the trading session. the selling is intensifying into the close here. down 158 points on the industrial average. that's near the low of the session there and the nasdaq down 2.5%. that would roughly be a 400-point decline on the dow industrials, kelly. >> it's going to cast a pal into the weekend and into next week. in the middle of this, grub hub is one of the hottest ipos of

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as we head into the close. ten minutes left, the dow down 136 points. the nasdaq down 2.4%. the big loser today with the s&p down a percent. joining us, david darst, senior adviser with morgan stanley wealth manage am. you ha the upside momentum is gone. >> we've said for weeks that you get a chance to buy on a correction, buy on a dip, take it easy, and we continue that theme, that thought. basically you're going to start earnings seasons and estimates have been coming down, they're up only 1% for the quarter. three months ago they were supposed to be up 7% for the quarter. you get that, you get the china slowing. so you basically had -- but these jobs number were good. you have coil springs that are going to launch this market. you basically are going to have europe and you're going to have china.

secondly, you have the consumer confidence. thirdly, the philadelphia fed, nobody looks beyond the headline number. the philly fed index, kelly, you saw this, 39% last year said they were going to increase capital expend dours. today it's 49%. you're about to see a cap ex increase biall these big s&p 500 companies. you get that 192,000, the last month was 197,000. there's a lot of good things here, and this is a good thing that there's a little bit of a cloudiness and rain in the markets. >> this goes back to the point that peter boockvar was making which is there are a lot of signs pointing towards the economy moving in the right direction but you get the sense maybe it's not good enough and maybe the fed is too hasty with the relatively speaking tightening plans. >> i say you want to listen to janet yellen, and she says she's going to be cognizant and mindful of the employment. i was very happy with that household number. it was over 440,000. >> big number.

>> 440,000. and, bill, the employment ratio is up to 63.2%. it's still low, near 30-year lows, but it's moving in the right direction. so i think there's a consumer confidence is at a five, six-year high. motor vehicle sales over 16 million this week. so, you know, the fed's watching. everybody is watching. and if this patient gets sick, they'll put more medicine in or they will slow down the tapering. the next meeting is april 29th/30th which they will probably take another $10 billion out and we will go to $45 million a month. this is a time, take it easy, add to some health care, add to some oil services stocks. they're doing well. i'm amazed at the defense stocks this year and the utility stocks have done so well. that's up about 8%, 9%. >> we want to get a break out of the way. when we come back i'm going to ask you more about what you would be buying here as this pullback and whether or not you would buy some of the momentum

stocks that have lost that momentum. that will be coming up when we get to the closing countdown for what has been an ugly day for the bulls, kelly. >> it certainly has. i guess my dress should have told us, right, what was going on? after the bell, former chair of the president's council of economic advisers allen kruger will be in the house. we'll talk jobs, the economy, and a whole lot more. keep it right here. you're watching cnbc, first in business worldwide. mine was earned in korea in 1953.

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welcome back. about three minutes left. by the way, i'm back here at headquarters because i am co-anchoring the nightly business report on pbs tonight with my pal susie. hope you can join us. check your local stations for the listings tonight. very important week. speaking of this week, here is what we've done. the dow for the week down -- actually we're finishing positive for the week. very interesting. but virtually flat with today's sell-off of 136 points. it's the nasdaq that's really seen the damage done, and the trading pattern, you can see it happening all this week and the week before that where we would see some buying on the open, and then the market would just fade into the close. that has not boded well for the markets going forward, at least for the bulls. and the vix, the volatility index, the fear indicator, now it's popping today after hitting that low earlier in the day below 13. we're up almost 5% right now.

back with david darst, also joining us is keith bliss. and, keith, i mean, as i said, you know, you have seen this trading pattern recently on a buy of the open and then it just fades into the close. what do you make of that? >> it's actually been a pretty easy market to trade from that perspective, bill. when you talk about that, it's been very predictable. what you're really seeing in the market is we still don't have a lot of institutional participation and why should they? they're riding all-time highs on the s&p 500 and getting close there on the dow. they're kind of sitting on the sidelines. you have a lot of fast money moving in and out of the market. they take advantage of still what is in our view a pretty bullish stance, an undercurrent in the market. they ride it up and fade it. we saw institutional selling come in today because i think people are getting a little concerned about earnings season coming up. >> good point. >> and you fade out of those momentum and growth stocks like you're seeing with the biotechs. they got slammed again, as well as the technology stocks, especially software service

names. >> david, would you touch any of those biotech or the momentum stocks that are getting hit so hard these days? >> bill, i think you want to focus in the small and midcap area. first is the margins are not as high as they are in the s&p 500. secondly, the markets. they sell mainly to a domestic market which is doing better than abroad. and thirdly, mergers. these companies can get bought out by bigger companies so you want to stay away from the high pe area and the high momentum area and for now that is biotech. it's cloud. it's big data. just let that -- stay away from that and work on the lower multiple half of the russell 2,000. >> keith, you sound like you would be buying dips. what would you buy here quickly? >> i absolutely would. what we do is we stick a lot to the etfs. take a look at the ibb, the biotech etf. that item is massively oversold right now. it's going to snap back next week. >> got it. thank you, both. have a good weekend.

we're going out on just about the lows of the session with the dow down 160 points, almost 1%, but, again, the nasdaq, the hardest hit. stick around. will this continue into next week? that's what they're going to talk about coming up on the second hour of "the closing bell" with kelly evans and company. have a good weekend, kelly. wow. welcome to "the closing bell." i'm kelly evans, and here is how we're finishing an ugly friday on saturday. you wouldn't know it from the cheers at the close but the dow jones industrial average off about 150 points. that's almost 1% today. the s&p 500 down 1.25% giving up 23 to about 1865, and the story of the day is the nasdaq. it's off 110 points. that's 2.6% having one of its worst days in months. mike, cnbc contributor carol roth, private investor evan n newmark and bob frank.

robert pisani and sheila dharmarajan. mike, what is your take on what's happening in these markets? >> just a few hours ago the talk was, gee, look at all the nasdaq names, the momentum names down and the rest of the market doesn't seem to care. the market started to care. usually you don't have that happen when a leadership group goes hard and the rest of the market buck it is. heavy supply in names that were really based on kind of long-term future hopes and dreams not so much this quarter or the jobs number or anything like that. so i don't really see a lot of a theme to it aside from that, aside from the fact it took a lot of energy for this market to bounce off that correction and get back off to the highs and there was not a broad participation in that bounce and you definitely had more motivated sellers right here. it sounds trite. to me that's what it is. grong it i don't think it's tax season or the joshs number. there's not enough buying level. >> such an interesting point, sheila. there's been a lot of chatter all day about where the motivated sellers might be but

it seems clear the hope and dreams sector taking it on the chin today. >> i want to build on what mike was saying because i think he makes a really good point. for a long time people have been saying, look, the nasdaq was up 37% in 2013. some of these names are up 100%, 60%, 50%. does it really matter that much that we're seeing a little correction? here is why it matters. traders are telling me what we're seeing in these rolling corrections is that more and more names are participating. if you tried to buy the low, you weren't making any money off the trade. in fact, the bottom hasn't been confirmed yet. so the fact we're seeing more participation, that's what is worrying people. the fact some leadership names like the biotech names, like some of the high flying stocks, the names that took the nasdaq up are falling back. we were talking about how all this data seems to be coming in good, but there's a nervousness under the markets. we're seeing the jitters play out right now. >> sheila, it's carol roth. i'm wondering if you're hearing from the trade bers a rotation

given we had ipo for grub hub today. we have a lot of tech momentum types of ipos coming down the pike. how much of this is a rebalancing of a portfolio in momentum stocks maybe coming out of some of the high flyers and going into new high flyers coming down the road here? >> you're hearing less about the rotation from old high flyers to new high flyers. you're hearing more about the rotation from high risk stocks to lower beta stocks, lower risk stocks. basically traders are saying, look, it's okay to be in cash. cash is a position. everyone seems to be wanting to take that risk off the table, not necessarily switching to out from one group to another. >> someone who has been sitting in cash the whole first quarter -- you're feeling pretty good about yourself, evan. >> it's a little i told you so but i never say that to you. >> what do you say to people? >> i say you're just getting started in some of these names. you can't justify twitter at $70 and now it's at $43 or $44. you really can't just fi it there either.

these stocks have no bottom until they do have a bottom. i think we'll see how far the bottom can go. >> my question is has anything changed in the last week or two? that relates to the fundamentals of these companies changing or is it really just supply of capital. did anything change? were there warnings or are there down grades? what changed in the underlying fundamentals? >> bob pisani, why now? >> actually, i think that overall the numbers have been very good. and the numbers today on the front for the jobs numbers i think were pretty good. the problem with today's job number was it was good enough for the fed to continue tapering but not good enough for people to say, oh, we've got spectacular jobs growth. i think that was a little bit of the problem. with that said, this was probably the worers all-time high i have ever seen. we hit an all-time high on the s&p 500 today and yet everybody agrees it was a terrible day, 2 to 1 declining to advancing stocks. this is what happens when markets start getting resistance. all the leadership kind of falls apart and the reason the

technicians are worried is that's the classic start of corrections. >> right, and that's an outside -- hey, kel. >> that's steve grasso i hear. welcome. "fast money" trader extraordinaire. >> just to pick up where bob left, that's an outside reversal day. you make the new high and thin you trade lower than the previous low. that's what makes technicians nervous. remember the other day when i talked and i was on the panel and i said you need that confirmation above 1900 before you really want to jump back -- >> a lot of people looking for that level. didn't really see it today. >> exactly. but you'd rather miss -- if you're a retail investor or any investor, you're not going to add to a position here because these prices are higher than your price. so if you own bank lower -- everything is run so aggressively that you're waiting for new highs. you're willing to risk 20 handles to the upside, a percent or two, before you jump back into the markets. it's silly to buy it now. >> i think a lot of this comes

back to something we've talked about time and time again which is what is the actual prospects -- what are the prospects for global growth? and if you don't get 3% to 4% gdp in the u.s. this year, stocks look expensive, and i don't think -- you could talk around the market dynamics -- >> you don't believe in the fed goldilocks thing, that it's actually better for sort of sluggish growth but the fed bid stays in the market kind of thing? >> i don't believe the fed bidwill take you to 2,000 on the s&p. >> guys, we're all tippy toeing around. the biggest story of the week was high frequency trading. does that really exude confidence in the marketplace? >> do you think that's something to do with today's action? >> as a whole sentiment is out there if it's negative -- remember flash crash? we had to gain the confidence back. we start revisiting those conversations, do you think people will worry about dumping in at all-time highs? >> if you see stocks at an all-time high right now, we need a little more aggressive confirmation that the economy is getting better and i agree.

we need to see 2.5% gdp growth, 3% in the second half. i notice it's always getting better in the second half for three years and it hasn't really improved that much in the second half. that's a little bit of a problem. >> and the jobs numbers from today certainly don't give me any confidence that we're going to be getting there. i mean, yes, we're back to precrisis levels at the private sector, but we've had so much population growth that to get to a place where we're at 5.5% unemployment, we need millions and millions of jobs. this could take years for us to get to that point. >> it could or could it happen before the end of the year depending how the labor force changes. >> is it possible we get a correction of surgical strikes against the momentum stocks in selective sectors rather than a carpet bombing that's markedwide? today was kind of encouraging in that the blue chips held up fairly well and this was an isolated correction. i wonder, mike, do you think that's going to continue? that's not a bad way to pop a bubble. >> i don't know if it will continue. i think people are getting ahead

of themselves. there's nothing that's gone on that disagrees with the idea of some kind of turn digestion year where stuff that got ahead of itself needs to prove it or else it's going to get smacked and vice versa. to the hft point steve makes, i don't think that really was anything that was a huge swing factor, but i do think you were able to see this week a general sense of smart money selling. you had ipos being jammed into the market. more filings coming out. it just seems like smart money is more on the sell side and maybe that was just a short-term -- >> let me ask everybody, what is the best outcome if you're a bull right now? is it an april jobs report that is super strong one -- >> earnings. >> i need earnings! >> earnings! >> it's all about earnings season. >> guidance. it's very simple. if we can get some kind of better guidance from companies, then that's going to support the growth concept, the 2.5%, the 3%

gdp idea. then you will see laggards like retailers grow back because people will rotate out of those high -- >> you -- >> into the boring names. i'm sorry, i didn't hear you? >> you think earnings season could be a positive catalyst if that happens -- >> earnings are not going to be great. but if we get a little more positive comment on the guidance the answer is yes. >> and it has to be top line guidance. it can't just be bottom line. it's got to be from the revenue side not just the financial engineering and the buybacks. >> sheila? >> i'm going to add on that saying it's all about guidance. the guidance we've been hearing hasn't been that great. a lot of people have been blaming weather and other things, but if we don't get the confirmation, the guidance, for the second half of the year as looking positive, that could be even more trouble for these markets. >> michael, i think the street to a large extent was positioning for a jobs number that would confirm a kind of acceleration in the economy and you look to bank of america, michael hardin, one of their strategists was talking about how he thinks we're on the cusp

of having three quarters of 3% to 3.5% gdp growth this year. it hasn't happened since 2005. i would be surprised if he would change that materially after the jobs report. there are people who still think this kind of pickup is going to happen this year or maybe to evan's point we should know that's what's priced in. >> i come back to watch what people are doing with their own money. sheryl sandberg has dumped half her stake in facebook. ken, who i used to work for is a very smart guy, he's taken his company public. you should watch what smart people are doing. >> and also, kelly, if you think the economy is going to turn around or continue to grow, you want to look at the underperforming sectors, housing, you want to make sure they could start really picking up towards the back end, towards the april selling season. you want to look at energy companies. people are rotating out of growth and looking for value in this marketplace. they're looking for quote, unquote, safety. >> quick last word, mr. santoli. >> i agree with that. one of the things about the momentum stocks is they were the

companies that were seen to be able to grow no matter what the economy is doing. auto sales, 16 million annual rate. it looks like you could have more traditional cyclical growth that does better. >> crazy day. be sure to stick around and catch steve and the rest of the "fast money" crew coming up here on "fast money" at 5:00 p.m. and that was a bell misfire here. i don't know what's going on this afternoon at the stock exchange. the nasdaq having one of its worst days in quite a while. is there more carnage to come or should you be buying back into the beaten down tech sectors. ryan jacob and then dan niles. stay with us for all of that. we'll be right back. when does your work end? does it end after you've expanded your business? after your company's gone public? and the capital's been invested? or when your company's bought another?

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welcome back. so tech stocks taking it on the chin today with the nasdaq off more than 2%. in fact, more than 2.5%. let's break zodown the sell-off with a man who knows a thing or two about technology stocks. joining me is ryan jacob. what do you make of the action today? what's going on? >> well, you know, we set ourselves up for this coming into this year. valuations were elevated and once the selling started, we saw real fast how strong the hands

were in terms of the holders of these names. and, you know, it hasn't been fun. >> there are people saying they can understand why faicebook, some of the more superfluous high flayer names are under pressure. but why is it taking down the more reliable parts of the space? >> we have seen more of a spillover effect as the selling has accelerated. personally, the way we look at the situation today is not too differently than when we entered the year. we expect a reasonably good economy this year. we expect our companies to post decent first quarter earnings. we still have easy money policy by the fed. and we still have low interest rates. so there's really nothing beyond kind of a valuation correction that we see in the cards here. >> ryan, it's evan newmark. when you look at the linkedin or a twitter, companies that are largely valued on the basis of

revenues, how can you possibly determine what the bottom is or should be in a stock like linkedin? there are plenty of analysts, they loved linkedin in at $250. it could go down to $100 in the blink of an eye. or how about twitter? how do you determine what the bottom should be in a stock like that? >> it's tougher. you have to go further out. you have to determine what the defensivability is of the business, whether it's a good platform opportunity. in terms of valuation, a lot of times you're just looking at revenue in the near term and trying to figure out few fur margins. a lot of valuations are very subjective but keep in mind, these are companies that are growing 50%, 60%, 70% annually. you're not going to find companies like this trading at market-type valuations. they're going to trade at a significant premium. we can argue what that premium should be but clearly they deserve to trade at a significant premium. >> the question is again, what

is that premium? what premium do they deserve if a lot of these new players will be going after the same ad dollars? that bucket is only so big, it will only grow so much. there are going to be winners and losers. who do you think are the winners here? >> our top holding, facebook is a large holding. our top holdings are apple and google and then it goes down the line. we own shares in linkedin. it's trying to find the balance between risk and reward. apple is one of the biggest positions, not because we think it has the most upside potential but because we think it's one of the least risky stocks we own in this environment. it's a balance. and, you know, in times like these it's really important to have that kind of balance in your portfolio. >> mike santoli here. i'm curious about the business spending side, the cap ex cycle has been kind of wanting this time around and i'm wondering how that plays into some other types of names. do you actually see anything in terms of a general lift in corporate spending on technology

to come? >> we've seen consistent spending especially in areas that are secular growth spending areas. a lot of this is in terms of cloud offerings. people are moving more towards open source. these trends will continue. as long as the general economy stays in this positive mode of, you know, 2% to 3% growth, these secular growers can still gain a lot of shares and put up robust sales growth. >> got to leave it there for new. thank you. please come back. we'll follow this and see what happens as we go into next week. we have to stick with technology. we have dan niles on the line of alpha one capital partners. dan, what do you make of the action today? >> the action today is as rational as the action was last year. by that what i mean is if you look at last year, it didn't really matter if you were beating estimates or missing estimates. if you look at amazon and google as an example, three out of the

four quarters they reported last year, they missed on the top line. but both stocks were up over 50%. and, you know, facebook beat all the quarters and their stock was up more, but the point being is that it didn't really matter if you bought a good company or a bad company last year. some ways like '99. they all went up. what you're having right now is the exact reverse is it doesn't matter if you're profitable or not, if you've got a good business model or not, they're taking them all down. i think what you're going to see is during earnings season, that's when you're going to start to see the stocks get differentiated between those who have profitable growth models versus a lot of these names now that are saying, well, i have to sacrifice profits to grow. that's not a sustainable model long term and it's a lot of the same problems companies had in the late '90s. >> i'm sure today is as frustrating as yesterday was fun for people in the tech space. do you hang onto the core holdings? do you double down? what does one do on a day like

today? >> i think the number one thing is capital preservation. if you lose all your money, you can't make anything back. if you go down 50%, you have to be up 100% just to get to even. you figure that out during the tech crash in 2001 and '02 and during the market crash. the thing i think tough do with your portfolio right now is, you know -- if you look at a google -- let me put it simply. if you look at google or facebook, both companies highly profitable businesses, both are growing revenues and earnings equally well. you compare that against a company like twitter which doesn't have much in terms of profitability, and is it really having to spend or you can go to the cloud computer names where you've got a whole bunch of names that aren't making any money but the view is, well, just wait. sometime in the future we'll make money but right now we're just going to spend it on revenues. those are the companies that i think i'm -- are going to have real problems. to answer your question directly, i think if you own

google or facebook, you know, you hang onto those. if you own some of the more speculative things like a twitter, you got to be a lot more careful because another bad quarter and as somebody said earlier, that he is no valuation support here. these stocks could go 25%, 50% because they were up over 100% last year. >> that's what i was going to ask. for some of the names that are valued highly on their future revenue growth, where is the bottom? how do you value these companies and figure out where they might find support? >> well, i'd put it to you slightly differently. i don't ever try to guess what the valuation bottom is or the top is, and there's an easy reason for it. if you think back to 1999, you know, there were a lot of companies people were saying these are overvalued and the market just absolutely ripped higher and killed you. likewise, from 2000 to 2002, nasdaq went from over 5,000 to 1,100 over 2 1/2 years and there were a lot of people trying to call the bottom.

the only way you can really survive this is you have to look for companies with real earnings and the guys that are actually reporting rising profits and revenue. if you're trying to pick a valuation level, it's impossible. >> okay. >> somebody is going to get it right and get lucky but i think you have to stick with the good business models. that's how you ride this out. >> dan, thank you. >> you're welcome. >> that's dan niles, ci of alpha one partners. did you see what grub hub's ipo did? shares of the online food delivery service delivering the goods for investors. it's up about 30% as we said even as the broader market under a lot of pressure. someone here saying watch out, this kind of debut should be sounding the alarm on the ipo market. also, the labor market heating up after this winter's deep freeze. is the u.s. economy now set to take off? from the white house council of economic advisers, chairman alan krueger is weighing in exclusively on "the closing bell." keep it right here. ep it right . what can your fidelity greenline do for you?

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a pretty ugly day for an investor unless you are an investor in grub hub's ipo. seema, the question i guess is not only why they were attracted to grub hub but to this extent on this kind of day. >> absolutely, kelly. there was absolutely a lot of appetite for shares of grub hub today raising nearly $200 million in its initial public offering and rising as much as 57%. the online food delivery company has been seeing strong demand

for its services generating $137 million in revenue in 2013, up 67% from 2012 as more consumers use the grub hub mobile app to order takeout and delivery. ceo matt maloney told cnbc this morning grub hub currently has 30,000 independent restaurants it serves in 600 cities. if you didn't think takeout was a big business, think again. maloney says americans spend $70 billion on takeout and only 3% of that happens online. he sees that number increasing as more people go online to order takeout. grub hub shares priced at $26 but close the day at $34 on who was a pretty tough tape for the overall markets. >> thanks very much. we want to get a little more on grub hub and if it deserves the valuation that's approaching $3 billion. joining me now, larry glaser, managing partner at mayflower advisers. larry, great to see you. so let's just start with grub hub specifically. are you surprised at the performance? do you think it's warranted? >> i'm not surprised.

you know, let's be honest, this is a food delivery company trading at 15 times revenue was a $2 billion to $3 billion market cap. with a vaulths like that, you would expect they would be curing cancer or something of greater than simply finding a better way to deliver a pizza but that's what you have here and that's what you have when you have what's becoming a frothy ipo market. >> isn't it american food delivery like the place you'd want to be? that soames eems like it would best market in the world. >> if you're one of the original investors, what a great opportunity. if you're an investor in the after market you don't want to get burned and get caught holding the bag on what seems like an expensive deal. that's what's been happening to ipos 6 to 12 months later. >> i think, kelly, what it brings to mind is what really is a technology company? it's great that this has users. it has users that actually generate revenue but as larry

said, this is a food delivery company. every company is embracing technology and using it to better their business. at what point do you go from a company that's growing well and maybe deserves a couple extra turns on the multiple of revenue to 15 times or 20 times? >> we're not talking about 30 or 50 times -- >> times revenue. times revenue. >> multiples of revenue. >> when i bank the restaurant sector back in the '90s, if you had a company like this, this would be a services company and maybe it would trade at three times revenue. >> you know if i'm going to put the market on the couch here and say what were they thinking with this deal, they're thinking open table. i thought that was ridiculous at the beginning. it didn't make any sense. really also wasn't a technology company just an overlay of a service on restaurant reservations. it was a heavily shorted stock and you got killed for a long time if you bet against it and i think they have the same kind of story. very low penetration on a very big market. i'm not saying it's worthwhile -- >> at what point does it all

catch up to us? this cannot go on in perpetuity. it just can't, michael. >> i'm not saying it can. >> we've had a bull market in the nasdaq and it's no coincidence that the nasdaq was particularly weak today. i mean, the ipo market has been wide open. we have more deals coming next week. and the easiest way to kill a bull is to drown it. and you're doing to drown it by flooding it with a supply of new deals and that's what's happening. there's good deals, no question, but it's hard to tell the good deals from the bad deals when you have 70 deals year-to-date and you have double the number of deals you had this time last year. >> and 50% of people have a smartphone and it's a technology company and it gets a premium multiple. >> it's a $70 million market right now. internet is 2% or 3% of that. that does seem to suggest a huge dollar potential and room to grow. >> yeah. >> especially in the big city. people don't cook much at home. >> 15 years ago everybody ate three boston chickens every

week. boston chicken's valuation would have made sense. >> all i'm saying is valuation, you could use that argument on anything. >> taat the same time people do- this is an innovative service. i could understand the potential for revenue -- >> it's actually not an innovative services. back in the '90s it was waiters on wheels. you called them on the phone. >> back in the '90s if you would call your local pizza place and say i want this delivered, grub hub is a fundamentally different thing -- >> but they had these intermediaries. they had waiters on wheels -- >> did people use that stuff? >> we did it all the time. >> i guess i need a history lesson. >> just because it's a great service doesn't mean it's a great stock. i think that's the issue here. >> fair point. >> valuation does matter at the end of the day. 6 to 12 months from now, what it did today is going to be irrelevant. >> thanks, guys. larry, thank you. >> my pleasure. >> have a good weekend. labor market showing some signs of life last month but up next, former white house council of

economic advisers chairman alan krueger talking to us exclusively. his number one concern for the jobs market in america. you will need to hear what that is. and a majority of congress now has a net worth of at least $1 million but one lawmaker is singing a sob story. take a listen. >> i think that the american people should know that the members of congress are underpaid. >> underpaid. wait until you hear what the panel has to say about that one. you won't want to miss it. it's all coming up and we want you to weigh in as well. let us know if you think congress is underpaid. your thoughts on this one @cnbcclosingbell is how to reach us on twitter. we'll be right back. back.

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welcome back. so speaking of tech ipos, we have some breaking news and a big one. dom chu with the details. >> chinese tech ipo news here. weibo has come out with proposed details. they are looking to share 20 million shares with an initial pricing range an indication of $17 to $19 per share. anywhere from a capital raise of

$340 million to $380 million for weibo. the twiter or facebook of china is now currently part of another bigger company called seena already publicly traded in the u.s. $17 to $19 per share for 20 million shares. back over to you. >> that would be a fascinating one to gauge. dom, thank you. the nearly 200,000 added to payrolls last month, an encouraging development but my next guest says there's still a big problem in the labor market and it centers on getting the long-term unemployed back on the books. he's alan krueger. the interesting thing about today is there was actually some good signs for labor force participation. do you say don't buy it, don't believe it, it's not going to last? >> no, today was a solid report, and i think it's part of the picture of the labor market gradually healing, but we still have a severe problem of

long-term unemployment. >> and this has important ramifications for what the federal reserve does. explain that. >> well, the federal reserve has a dual mandate. they want to maximize employment and they also want to stabilize prices. at the moment inflation is too low and unemployment is too high, so it's pretty clear the fed should be accommodative. but at a certain point they're going to start to be concerned about perhaps the economy heating up and inflation, and if there's less slack than there appears in the job market because many of the long-term unemployed have become discouraged, their skills have gone obsolete, employers discriminate against them -- >> they're in prison or they have a criminal record, that came up this week with janet yellen's comments and some media coverage afterwards. >> it certainly did, although i think that describes a small minority of the long-term unemployed, but what we're seeing is the long-term unemployed are increasingly leaving the labor force, and that's a common pattern. that's what we saw in the last recession and then recovery. >> and the real concern is they're going to effectively be

left behind. in other words, you're going to start to see perhaps wages increase, even broader price pressures pick up because those people, as i said, are to some extent left behind. the economy moves along without them. >> and they make alternative plans. they take care of the house. they in some cases go on to disability insurance, retire, go back to school and they i suspect will come back to the job market but it means we will probably have a smaller labor force. >> and a lower unemployment rate. let me put it this way. the unemployment rate, let's say it falls below 6% by the end of the year, so we've never had a case in the past where it would fall to something in the range of the 5% that people wouldn't expect the fed to react to that and start normalizing policy. don't i think they will do the same this time around even knowing the sort of shadow unemployment that may be out there? >> you know, it's hard for me to say what they're going to do. i think they should very closely monitor for signs of actual inflation. we've been in a very unusual environment where inflation has been so slow, below the fed's

target for almost two full years. i would recommend they be asymmetric and they wait to see signs of inflation before they actually respond. >> what happens if that inflation is not showing up in the consumer price index but there's a lot of financial asset inflation and so that's generating lots of wealth in some parts of the country but it's not really absorbed more broadly, it's not felt more broadly. does that still matter? >> obviously the fed has to worry about financial stability. with what we just went through in 2008-2009, that's a major concern. in fact, defact c facto or impl the mandate is now a trimandate and includes financial stability. they have to look for signs whether there were bubbles in asset prices and weather movements we're seeing are justified but they have blunt tools for addressing them. >> you're saying they have to err on the side of caution. jeremy stein is kind of the point guy and he's leaving. it would seem they replace him

with somebody who can keep a close eye on financial instability. >> i think that's probably right although they have other expertise like jay powell who is there, and they have tremendous amount of expertise among the staff when it comes to financial markets at the fed. >> alan krueger, thank you for being here. >> my pleasure. >> this afternoon. a long friday here with these markets. really appreciate it. attorney general eric hold ser launching an investigation into high speed trading. david gregory from "meet the press" weighing in on whether that spells trouble. and making $174,000 puts you in the top 5% of earners in the u.s. but it's still apparently not enough for one lawmaker. >> i think that the american people should know that the members of congress are underpaid. >> underpaid. the panel has been itching to weigh in on this controversial statement. i bet you have been, too. the tweets coming in. keep them coming @cnbcclosingbell. your thoughts when we come right back. ht back.

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welcome back. so as you can see, a tough day in the markets. are members of congress underpaid? the answer would be yes, that is if you did this congressman. >> i think that the american people should know that the

members of congress are underpaid. >> members of congress underpaid. robert frank here has been looking into the average net worth of congressmen. so, robert, underpaid? but this is a wealthy group. what did you find? >> they're not doing so badly actually. millionaires now have the majority in congress. the 268 of the 534 msnbc are actual -- members of congress are millionaires. congress is in session only 113 days a year. they get a salary of over $174,000 plus benefits. maybe they're looking at china. china has more than 80 billionaires in their parliament. maybe they're looking at china saying we're underpaid. i feel for them. >> i'm sure you do. does anyone else here feel for them. >> it's not only ridiculous but it's offense from a congress with a single digit approval

rating. not only do they have these six-figure salaries but they also have pensions. >> maybe if we got better pay we'd get better congressmen. >> i don't think that's the case. this is supposed to be public service and these people are set up for life with no fiduciary responsibility. >> you know, without defending the congress and knowing the context, robert, the point being might be that people have to be rich to take that salary that you offer for public service. in other words, you kind of skew toward people who have already made their fortune and then they're going to go and do supposed public service. >> but they make a six-figure salary plus they get perks plus if you're around for long enough you get pension for life plus you set yourself up for consulting and -- >> plus you get the free haircuts. >> i think that seems like a very reasonable above market salary. >> the most kind of ironic element to his comment i believe was something around the fact

that washington has become so expensive a place to live that he felt -- by the way, he's from the washington yiarea, moran. >> we reached out to his office for comment. >> washington is so expensive it's very hard for members of congress to keep two residences. but the reason why washington is so expensive is because basically over the last five or ten years, all the money -- the best performing economy has actually been that that feeds off the federal government which is this strangest element -- >> but it comes down to doing a poor job. obviously the people of america aren't happy. they shut down the government several months ago. they're not getting the job done, and to come out now and say they deserve more i think is a slap in the face. >> he's retiring. he's safe making comments like this because he doesn't have to get re-elected. >> he said this would be a popular proposal with his fellow congressmen. they didn't think it would go anywhere. if congress at this point -- he said we're like the board of directors for the biggest country on earth. you should pay us more.

we're worth more than that. we need to be earning more than that to -- and maybe, maybe he has a point. >> board members have fiduciary responsibility and the people who represent us do not. >> evan raises such a good point. they make $174,000 a year. most of the people they're with most of the time are billionaires, multimillionaires. they're looking around them saying i'm the guy with the power and everyone who surrounds me in d.c. is richer than i am. >> real quick, we asked for your opinion on representative moran's comment and here is what some of you had to say on twitter. lou tweeted, if the metric for higher pay for congress is failed legislation and record debt, sure, give them a raise. kcorrine wrote, if it's based o productivity, they should get the minimum wage. ann says pay congress more based on how much they get done, not how much they obstruct and no free health care. so, yeah, carol, i think they decidedly -- >> i don't want to pay them on getting anything done.

the less time they're in d.c. the better off we all are. i think that's a better notion. they should telecommute. that's what we should do. we should have telecommuting representatives. >> using a google hangout. >> my wife will appreciate that. >> disclosure, please. are democrats breathing a sigh of relief now that the job market is showing signs of life? "met the press" moderator david gregory weighing in on that and the justice department's investigation of high speed trading when "the closing bell" comes right back. comes right ba. ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade.

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. . welcome back. want to get to today's hot jobs report, 192,000 jobs is that a big enough number to give democrats a boost in the upcoming midterm elections? joining me now is david gregory the story for the last couple of weeks has been how much momentum republicans might have this fall, could they retake the senate? for example. does it actually give the incumbents here? >> it definitely gives them

momentum. a lot about this is about symbolism. how washington is working. regulation all of those things are part of this argument zone that will be in for november, but look, if you're president obama and the democrats, this has been a good week, you defied some expectations and some really rough predictions about the rollout of obamacare and a jobs report that matches some expectations about a robust recovery. i look at the different signals. i have janet yellen saying -- she's concerned about a lot of hiring going on. the jobs picture, you report on each day is still quite murky. i still think people are feeling that the economy has held back and not roaring forward. >> it's interesting, david, it was a pew studiy this week, how many americans considered themselves a part of the middle

class u down significantly. even though it ended five years ago, it sounds like we're going to need many, many months more of progress. >> also, let's remember, when we're talking about politics, we're talking a about different zone. i was talking to democrats today in an interview i did on twitter about their desire to make this a choice, a choice between the president's vision, the democratic vision and republicans. they like the idea of a choice. they can say, these republicans want to repeal health care reform under the president. they want to take the benefits away. they want the president to be out there fighting for a minimum wage increase. not, are you happy with how the economy is going? are you happy with your personal situation? i have been looking at ads running in states like arkansas, where mark pryor is fighting for re-election and republicans are

still really advancing the argument that's murky, it's vague, that it's complex and you don't know what's going to happen in the future, that scares a lot of people, what motivates republicans to get out there and vote. >> to what extent does that motivate people to throw money at some of these tight races? a pretty close call coming to the fall. >> right, well, that's going usher even more outside groups and the impact of that is going to be felt for a long time rand it's still being assessed. the reality is, the overall picture in a lot of these states, take the senate, where you have states where the president fared badly, you don't want to have the debate about obamacare, maybe you want to fight it to the draw, fight it on the economy the jobs number

today may help in that. the factors, the dynamics in the race could change seven months from now. the president, when he spoke this week, he was saying to democrats, don't be afraid of fighting and standing up for affordable care act. i think the big issue in this campaign, do democrats feel loss? do they feel disappointed in the president? do they ultimately stay home? democrats want to live and party like it's 2010, great off-year election for them. do they have the energy towards president obama that democrats and obamacare to come out and vote. >> david, thank you for your time this afternoon. david gregory, moderator of "meet the press." this sunday, david will be speaking to shaun mccutcheon. check your local listings for

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eyes going over to the website. what's hot on cnbc.com. >> kelly, it's been all about the market today. we have seen this in the past. when the market goes volatile, people jump into the website. today has been tremendous. not only did we see spike alerts and all sort of heavy traffic on our market rights, also going into our quotes and looking at what stocks were banging on to check prices, amazon, linkedin. people wanting to know what's going on with their portfolios. it's interesting to watch. >> any surprises? >> not too many surprises. except the apple stock, usually the king, actually took second and third place to tesla and amazon. it was quite a horse race.

>> i have a feeling all weekend people will be trying to sort through it. thank you. enjoy the weekend. final thoughts from the panel here. carol. >> you know, i'm looking forward to the final four here. even though i picked florida to win my bracket i'm rooting for kentucky. i like an underdog. >> any market metaphors. >> rooting for the underdogs. >> tough weekend, my dad's kentucky. my wife's florida. >> if i had to name the teams in the final four, i couldn't do that. should i just leave the set. >> i think you should leave the building. >> you'll probably end up winning the bracket, kelly. >> something a little bit on point. i would just say there's more to come in these momentum stocks next week. i tonight think you should be running into the market right now hoping to get a bargain in twitter stock.

>> quickly, mr. san tolli. >> i'm glad we went down on the payroll. >> thank you, guys. great to see you all of you. "fast money" is coming up in just a few seconds. she's in red now. these guys here on the desk will tell you whether you should buy or not on monday. the question is if, not a matter of what. >> over to you guys. >> have a great weekend. breaking news on today's selloff. the nasdaq getting slammed today. it seems like a tech exodus. momentum names, like facebook and tesla. take a look at biotech, all in the red today. the broader market is not much better. the dow and s&p making a major reversal after hitting highs earlier today.