a rocky day on the street. we're coming to the end. what do you got? >> an ugly couple of weeks for cbs. i like this name. >> shell doing some interesting things. >> sempra energy, s.e., i bought that one today. "halftime" is over. "power lunch" and the second half of the trading day start right now. >> you know, go figure. the bottom falling out of the markets again. technology leading the way down, down, down. right now look at the nasdaq. off triple digits, 103 points, or about 2.5%. the dow's fall is also worth noting but not as severe right now. let's take a look at the dow. down about 1% at 16,275. but before we freak out, let's remember that these moves year to date are not all that great. today obviously they're pretty stark. a lot of question marks on that graphic. a lot of question marks in life. we are going to try and get answers for you as we hear from

several biggests on several different market topics today. and that is trader joe zikerman. over his shoulder is high-frequency trader minaj narang. he played several trades while he tried to convince minaj that he's being trecheated. first sue who's in the house. >> that's right. thank you, ty. and we're going to go directly to the nasdaq because that has seen the most dramatic selloff in today's trading session. the money may be moving into the bond market. it's decidedly, sheila, moving out of the nasdaq today. over to you. >> that's right. a very another ugly day here at the nasdaq. we were down 2.5% on the composite on the nasdaq 100. at session lows right now. traders say what is worrying them is how quickly we dropped today. basically we took only 30 to 40 minutes to erase all of the gains that we saw yesterday. that kind of velocity is something traders don't like to see.

as for the why we're seeing such a big drop-off, traders saying you don't need a reason. you don't need bad economic news or bad earnings. simply the nasdaq is losing momentum. as for which being sos are getting hammered, it's the usual culprits. biotechs now down nearly 5% on the day. so really getting hit hard. all of those big names that we like to talk about, gilead amongst the biggest losers. also netflix, teslatesla, price. all of those that led in 2013 getting hit hardest right now. as for a sill veer lining, traders telling me the only good news is we haven't sliced through that 4k level yet. nasdaq composite still trading above 4,000. we're at 4,080 right now. if we start to slice through the february lows, that's when they say real capitulation could happen. but nonetheless, sue, a very ugly day here at the nasdaq. >> it really is, sheila. we'll be checking back with you in a short while. first to dominic chu with a

"market flash." >> there's the etfs, the index funds. check out names like the ibd, one of the etfs that tracks the biotech index. also look at names like socl, the etf that tracks a lot of these social media stocks. names like facebook and twitter, pandora, yelp, you name them. they're all represented in these etfs. and they've shown a lot of weakness. as the broader market starts to roll over, these etfs that track those momentum parts of the stock market are turning down as well. so it's certainly a trade that we're going to want to focus on, tyler, sue, as the afternoon plays out here, guys. back over to you. breaking news in the bond market right now. 30-year bonds up for auction. rick santelli tracking the action. what's the demand like, rick? >> reporter: well, i tell you what, tyler, what a wild and crazy day. consider treasuries are rallying big time. sometimes it's best to buy things that have a momentum. that was the case today. so we had $13 billion reopen 30

years, 29-year, 10-month if you want to be resight. the yield at auction, 3.525%. that was the offer of the market. so it priced right. 2.52 to cover, $2.52, chasing every dollar's worth of securities available, nicely above the 2.36 ten auction average. you had indirects and directs pretty much right at their ten auction levels. dealers took 38.8% of the auction. you know, you want dealers to take a little less. investors definitely stepped up. so i gave it a "b" minus. it really was the better of the three auctions. at a time when it's pretty apparent that even with no concession, usually yields have to go up to get a concession. traders wanted to own this. investors wanted to own it. it's somewhat apparent. if you're not enamored with the level of stocks today, this was your best buy of the day potentially. sue and tyler? >> i think you're absolutely right. thank you very much. more on the markets now.

let's bring in cnbc contributors troy and abigail. abigail, i have to give you credit because we had you on earlier this week. you said you expected more deterioration in the composite specifically and suggested that it would be hard for the dow to hold up under that pressure. that's exactly what we're seeing playing out today. so what do you see now? how severe do you think this deterioration will be? >> these markets are wound so tight, sue, that it really doesn't take too much to cause the selloff that we're seeing today. and as sheila mentioned, it really doesn't have to be for a certain reason. the fed has pumped in so much accommodation into that market that it's created a lot of uncertainty. so the answer is i think that this selloff is going to continue. i think that we're going to see the nasdaq composite potentially breach important support lines. i think we're looking at a form of correction in the nasdaq composite and the russell 2000, both are selling off. i expect the dow and the s&p to catch up. and this really speaks to

defense which shouldn't be too surprising. bonds have been rallying all year. the ten-year is the tell. so long as the ten-year is below 2.80, it tells us that smart investors somewhere are seeking safety. we don't know why yet, but we're seeing it in stocks, this kind of volatility and jittery action. below 2.80 i think they have further to go down. formal correction. >> you warned us at the beginning of the year, we would likely see a lot more volatility. that certainly feels like what we're seeing. though overall the declines year to date in the dow and the s&p 500 are not particularly big. is this now becoming a little more worrisome? i mean, frankly, i don't get it. yesterday it was up a lot. the day before it was down. today it's down a lot. >> listen, that volatility will continue. i think yesterday's movement was honestly ridiculous. what did we know after the fmoc meeting minutes? nothing. it was 3 1/2 weeks old except these smart alecs read it. they try to read it. not a lot of volume.

long-term asset managers probably took advantage on the sell side peeling it out as they were trying to take it higher. look what happens today. no follow-through and boom, it breaks right down again. the nasdaq breaks through. once again it hits resistance, up at its 50-day, backs off and it's going to go lower like abigail said. i'm not sure it's going to go low -- we might have different opinions on how low it's going to go. >> i just want to turn down kenny's mike and just watch his hands. >> yeah, watch yourself, abigail. you might end up in a boxing match there. kenny, how does it feel down there? how does the selloff feel? because in the nasdaq, it feels pretty intense. what about in the dow? what about down there? >> i think it's true. it is more intense in the nasdaq. that market is down 6% or 7% as of right now. the dow is only off about 2%. the s&p is off 2%. and so therefore there's not that sense of doom and gloom. and quite honestly, i think a lot of the money coming out of the high-tech and nasdaq names are going to find a home in the big dow stocks and the big

dividend names. >>i inin in don't know if i agr that. >> i don't see that. >> why don't you agree, abigail? tell me. >> well, i just think that we're seeing investors, smart investors, dump some of these high-flying momentum names, taking out profits. they're treading water in treasuries. we don't know that there's something really negative fundamentally ahead, but we don't know there's something positive. as long as there's uncertainty, smart investors will tread water in treasuries. and i think you're going to see some of the more mature companies -- >> abigail getting into the hand action there. i can see it. it's good, man. sue and i are going to start doing it. >> kenny, how much of this is -- kenny, how much of this could be related to the fact that we have tax day coming up? i mean, there are very few days left to sell for tax day. >> i think some of it might be related to that, but quite honestly, i think this is the broader picture. i think people are concerned about what growth really looks like. so you know, i think some of it is due to taxing.

i think today's action is a direct result of yesterday. they took off 180 points for what. nothing changed. so they knock it right back down again. >> folks, thanks very much. kenf kenny, abigail, we love it. very busy day here. and next up, two stories that need to be on your radar. michelle is in d.c., kayla at the nyse. kayla. >> ty, the financial star reporting quarterly numbers tomorrow. first up jpmorgan. we'll get you ahead of the game next. and the big news out of europe today. the new greek bond is on the market. it priced just a few minutes ago. the impact will be felt in financial markets all over the world. more "power lunch" in two minutes. [ indistinct shouting ] ♪ [ indistinct shouting ]

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welcome back to "power lunch." despite the selloff, we're near session lows. there are winners out there. check out shares of hewlett-packard rising after deutsche bank had a buy rating and a $40 price target. up about 3%. also at&t. investors look to the telecom sector. then ibm gaining ground on news it's acquiring silver pop for an undisclosed amount. mcdonald's and coach are also moving higher. so tyler, sue, it's not all red out there. back to you. >> thank you very much. as greece priced its new bonds, someone in that still financially troubled country made it clear they were not happy. a huge car bomb went off outside the central bank in athens early this morning. the sound was caught by a camera crew nearby. listen.

there you can see the flash as well. authorities say there was damage in the area. buildings blocks away shook, but the bomb went off early in the morning, and nobody, thankfully, was hurt. it's been a long two years for greece after being at the epicenter of the european debt crisis. greece returns now to the bond market and a lot of fanfare surrounding it. we talked a little bit about it yesterday with our chief international correspondent michelle caruso-cabrera who is in washington with more today. michelle. >> reporter: huge demand for this bond. remember, it was originally going to be $2 million greece wanted to borrow. investors were so eager to lend the country money, they upped it to 3 billion euros, excuse me. there were more than 500 orders they had to fill. it took all day for them to get it done. it finally happened just about 20 minutes ago, the final pricing on the deal. so we'll start to see it trade in the next 24 hours. it's a five-year duration.

and it's the first time that greece is able to re-enter the markets for four years and two years since their massive restructuring. again, there was so much demand, they had 20 billion euros worth of demand. take a look at greece's interest rates over the last several months. a lot of that coming due to the help from the european central bank. the one thing that's important to keep in mind, why investors would still be so willing to lend greece money right now, even though it still has tons and tons of debt, it's because a lot of their debt was restructured so that it's not due for a very long time. 2023. if you buy this bond today, it comes due in five years. so there's a lot less risk within it. and a lot of investors are hungry for yield. so even though the yield is less than 5%, a lot lower than what was originally expected, it could go as high as 5.5%. still investors were very eager to get in. >> you're down in washington for an event where ben bernanke was present. and just asked a question.

what did he ask, and who did he pose it to? >> so the imf and world bank meetings are going on. that's usually an occasion for tons and tons of central bankers to come to town. the indian central bank was doing an event at brookings, and he's made some very controversial statements lately saying that central bankers around the world -- what he really means is the united states -- ought to be more considerate of other countries around the world when it comes to their impact on monetary policy as a result of it. well, the first question, front row, ben bernanke. i took a picture. i was standing behind him. and his first question was to the head of the indian central bank -- and it wasn't actually really a question -- i think we have that picture -- he almost criticized the head of the indian central bank. he said wait a minute. you said we don't consult? i meet with them, i was there eight to ten times a year. so we do a lot of consulting. and your criticism is basically you just don't like unconventional monetary policy. there he is, ben bernanke. almost lecturing the current head of the indian central bank.

tyler, back to you. >> very interesting. >> got to love that moment. you were quick with that photo. thanks, mcc. >> see you later. investors are bracing for big bank earnings. jpmorgan kicking it off tomorrow. what can we expect from the financials this season? kayla tausche is here with what to expect. >> banks unlike many sectors provide a bird's-eye view of the entire economy. and wall street's got one word for it this quarter. that is uninspiring. now, jpmorgan goes first on friday morning, and management has lowered expectations like guidance for return on equity, trading activity and consumer spending. and while margins are improving, analysts say all of that won't be much to write home about, really. though the bank has managed to beat estimates in the past by cutting costs, and it could do that again this quarter. banks like jpmorgan, morgan stanley and bank of america with the most capital markets exposure will see the most pain. citi will see compliance

spending after mexico and stress test issues. analysts have only raised estimates for one bank, and that is wells fargo. not because its mortgage business has outperformed or its investment bank did a bunch of deals, but it relies the least on trading. it has no emerging market exposure. it already has enough capital, and it will benefit the most from higher rates because it underwrites so many mortgages. while any surprise might be slight, analysts said atlantic equities have upgraded wells fargo on overall strength of its balance sheet and its outlook. wells and jpmorgan always the first two out of the gate. they'll hit first thing tomorrow morning. followed by the other banks throughout next week. and of course sue, we'll bring you all the head lines as they happen. but it doesn't look like much is going to be going on this quarter. >> thanks, kayla, for the update. appreciate it. ty. scott wapner, host of a fast money halftime report," just finished speaking with -- it says carl "investor" icahn. carl icahn about his detante

with ebay. >> it played out for so long. now they finally have this truce that everybody is talking about. it's interesting how it all developed. after many phone conversations, i'm told, with john donahoe over the last several days and even an intervention by the star banker jimmy lee of jpmorgan, carl icahn and ebrey strike this deal. carl gets a seat on the board. he doesn't get the spinoff of ebay he had been arguing for. so i asked him in light of that whether he considers this a win or a loss. and oh, yeah, what about those comments about donahoe that he was negligent or worse and incompetent? let's listen to carl from just a few minutes ago. >> we got a couple of things that i think are very good for both us and for the company. we spent, as you know, many hours, john and i, together. and i think that john has something that you really must have if you're a great ceo or a

good ceo, which is passion for the company. and i realize that in talking to him, i think this company has tremendous potential. >> well, donahoe himself was on "squawk box" this morning with andrew ross sorkin on the heels of the announcement of this deal. let's talk to -- let's hear from mr. donahoe in terms of what he thought about this whole process and exactly what changed. >> we had a chance to talk more about paypal, more about ebay, more about the opportunity of the company. and i think carl now sees the potential of our company and is now becoming, i think, a long-term shareholder. i think this is a real win-win for both us and for ebay shareholders. >> carl making it clear as well, guys, that he continues to press his case. he will do so, as he now has that seat on the board, and he even said that he is still extremely confident that eventually paypal and ebay will split, though he was quick to say those are his words, not

necessarily john's at this given time. but he's making a bet clearly that down the road they're going to be able to split, those two companies. and in terms of carl's position, there was never a 13d filed in this case. at least from the folks that i've been able to speak with and some of my sources, it looks as though carl is $70 million to $80 million up from his initial position, even as, you know, the stock market, clearly the nasdaq has been facing some turbulence there. but he is still up, at least according to my sources, carl not denying that in our interview. and by the way, as you see the dow down 200 points, thes that d nas dnasdaq, a guy who's seen a lot of markets in his day, is quite frothy. >> he certainly didn't quarrel with your numbers at all about his stake, at what price he bought ebay and so forth. stick with us as kate kelly joins us to discuss this and the general sort of tenor of activist investing a little bit

more. am i reading this wrong, kate? you correct me. has icahn gone a little soft? >> i would be curious to hear scott's observations on his tone. i thought he was surprisingly constructive in this case. and it was also interesting to me, i think scott and you and andrew both mentioned that there had been confidentiality agreements signed between john donahoe of ebay and carl icahn in this case to kind of govern these conversations so they could speak a little bit more freely. it was my presumption that that was probably ebay's idea. in fact, i'm told based on some reporting it was icahn's. and it's interesting to me that he was not looking to use the press as a bully pulpit at least in these final days. he wanted to have a more constructive conversation. what was your take? >> andrew? >> actually, you know, scott, let's put that to you. first we want to say that we're off 200 points on the dow and off 111 on the nasdaq. it is different this time around with the activist investor in some ways. in the past, 10, 15 years ago

when an activist investor put a challenge to your company, most ceos kept them at arm's length. they did not engage them at all. they almost strong-armed them and kept them at distance. it's very different this time around. you actually have the activist and the ceo meeting, spending time together, trying to work it out. >> the lion will lie down with the lamb. >> it doesn't mean you necessarily get what you want. >> absolutely. >> there's a couple good examples lately involving carl. in apple, he pressed his case. he wanted this em eed them to stock than they ultimately did. he didn't get a seat on the board in that case. in this case, he gets a seat on the board. he took, i thought, a conciliatory tone. maybe more than i expected on the show just a short time ago, asked him if it was fair based on his comments to say that he was capitulating a bit. he clearly wasn't ready to go as far as saying that. >> but what's interesting, scott, isn't it clear the company was able to sort of turn

icahn's thinking around a little bit? certainly on the board but also on paypal and the very decent question of is it the right asset to hold on to at a time when there is such a strong bid in silicon valley and elsewhere for payment processors? is it something that can be part of the company's organic, ongoing growth, or is it something they should take some shorter-term profits on? >> i think it's going to continue to be part of the conversation. look, long before carl raised the issue of whether paypal and ebay belonged together, my sources are telling me that those conversations were being had for an awfully long time at the board level that they had come up in the past. the question of whether ebay and paypal should remain together for a long period of time, whether a spinoff was the best row to hoe there. and i think carl's making it clear that he's going to continue to investigate that issue, continue to, as he says, press his case. and i still think in his heart of hearts he believes that ultimately those companies are

not going to remain as one ebay, that you will eventually get to the point where they are separated in some form or fashion, and he clearly made that point in our interview just a little while ago. >> it's ironic that one of the newest auction sites, ebay, is the target of an activist investor and one of the oldest auction companies, sotheby's, is the target of another activist investor. sue makes a point that maybe there's a climate of engagement on the part of some companies with activists, but not so in the case of sotheby's, right? >> i think this is all a point very well taken. i think within the last six months or even a year, a sort of longstanding practice at investment banks and independent advisers has really ramped up which is activism defense. so in the case of ebay, you had a sort of unexpected involvement of jpmorgan. >> i love that point, kate. and i wanted to ask you about it. you cover the space, the banking space, much more closely than i do. what does it say, really, to

carl's point about, you know, here you have goldman as an adviser here who at least according to carl, never picked up the phone and called. it was an intervention by jimmy lee that said, you know, what are you guys doing? why don't you talk this out and figure it out? maybe there's more to the story. and i'm sure there is. but carl's point, i thought, was interesting. >> yeah. and i thought that's an interesting twist, too. here's jpmorgan which actually ended up having ebay as the client, actually. john donahoe was their client. they happened to be talking to carl icahn on some unrelated matter within the last week. jimmy apparently made the point, hey, donahoe is not a bad guy. maybe you guys should take the gloves off. apparently that struck a chord with carl and he said maybe you're right. and then the confidentiality agreements were put together, the talks happened, and a deal was sort of brokered. i think that was probably a happy accident on jpmorgan's part, but it does go to the sort of longstanding relationships that some of these dealmakers and advisors have and how they can sometimes work out a solution. i'm told these activist defense

advisers are playing an increasingly important role in some of these situations. and key for the companies which was smart in this case is kind of trying to get ahead of the public rancor. they didn't quite get there here. but i think they were able to staunch the sort of vitriolic bleeding. >> perhaps from mr. lee's standpoint, there comes a point where the client becomes a distraction to the ability for the company to execute. and if mr. lee is representing, you know, ebay, you want them to continue to execute. you don't want that public rancor that kate's referring to bubble to the top and then disrupt the way the company functions. >> to both your points, really, sue and kate, what i really want to see now is what the reaction or response, if there is one publicly from mark andreseen, to your point of being able to execute and run the business, here you're going to have carl's guy on the board. and carl's going to be very involved.

he told me that directly. this is not a guy who's going to sit on the board, represent carl and then carl's not going to have anything to do with it. the confidentiality agreement's there. what is andresen going to say? can they come together and get past all the rancor and rhetoric and nonsense and then actually execute the business, and where does that relationship go from here? >> very quick final thought, kate. >> i was just going to say, while i would never rule out another poisoned letter or sort of outburst from icahn who has a lot of active -- you know, colorful things to say about companies, at the same time, i do see a little more of a conciliatory tone. and another example might be apple. he's really sort of made nice with tim cook while at the same time looking for changes, a few of which they have made. but -- >> he's making nice? he's making nice and he's making money. >> right. >> it doesn't get much better than that. >> and it is certainly a contrast from what you mentioned earlier with sotheby's. >> to be played by mel brooks in the movie. >> yeah, going mano a mano.

>> thanks. "market flash." check out share of gilead sciences. this is the leading u.s. pharmaceutical, at least company with regard to a certain kind of treatment. the entire group is down. there is a trade group defending the cost of the company's new hepatitis c drug that's named sovaldi. saying the treatment offers a priceless breakthrough for patients with the liver-destroying virus. now, sovaldi costs about $84,000 for a 12-week treatment. that's a lot of money. for every particular treatment. now, this comes on the same day that merck's experimental hepatitis c drug produced clinical trial results that really position it as a strong contender to rival sovaldi. wells fargo analysts are cautioning that merck is down 2% on this news and gilead sciences is down 7%, sue, on the day. back over to you. >> we're on the lows of the trading session for the dow jones industrial average. we're down about 212 points.

we're down 117 on the nasdaq now and the transportation index is down 138. and part of the selloff today is the biotech area which is really getting hit hard. there's the index. down almost 5%. now, the etf it follows is also getting hit. it is down almost 6% on the trading session. so ty, it's -- >> this is an accelerating selloff. >> accelerating selloff with the dow down triple digits. we should mention the s&p was down 31. so we're starting to see larger percentage selloffs in the major indices. >> 2% there. that major triple-digit decline in nasdaq which has seen several of them. it was last friday was another triple-digit decline. >> and the money is going into the bond market. we're seeing dramatic drop in the ten-year yield. so they're looking for safety. gold is up. the dollar is not playing in. >> it didn't have a good day in ibm which is a high-priced dow stock. remember, it's a price-weighted

index. the dow's decline would be even greater than it is. we are, as we pointed out there, at the lows of the day. one of the best fund managers of our time says this may be the best bull market in our lifetime. but how far does he expect the run to continue? well, it's not running that way today. we'll tell you what he has to say. not everyone getting slammed today. if you put money in these inversion etfs, you're up psq is short the nasdaq. hs is short. the s&p and dog is short the dow.

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welcome back to "power lurching lunch." it's been a tough year for stocks. following session lows after offering 95 million shares at 25 bucks apiece. not a good sign for the bulls. right now it's trading $24. down about 4%, tyler, in today's trade. all right. let's see if there's any solace in gold today. shall we look in? as gold prices close. and yes, there is a little bit of solace. if you had money there, you're up 1% today at 1320 an ounce. silver high as well by almost 2%. copper basically flat. platinum moving lower. palladium, $10 higher or 1.3%.

sue. ty, let's go to the nasdaq and sheila is back with us. because sheila, just a few minutes ago, it seemed there was another push to the downside and losses seemed to accelerate. i don't know whether you agree, but that seemed to be the read when we were looking at the tape. >> that's absolutely right. we are looking like we're trying to see support right now, but nonetheless, it is a bloodbath. down 2.7% on the session. here's a couple more stats. 98%. that's how many members of the nasdaq 100 are in the red right now. 2%, that's how much we are down for the year when it comes to the nasdaq. we are down more than 6% off of those march 6th highs. and we keep on talking a lot about those biotechs and that they're perhaps the leading indicator for the nasdaq. if you look at the ibb, that's that nasdaq biotech etf. down nearly 18% from that high this year. we are in bear market territory again. again, if afraiders are looking at this as the leading indicator, certainly not a good sign. want to hit up on some other names that are also leading the nasdaq down the most. that would be microsoft, gilead,

amazon, facebook, google, all down 3% to 4%, really pushing the nasdaq down further. and if you look at what's actually higher on the nasdaq 100, those two stocks that are up higher, very telling. c.h. robinson and kraft. investors want nothing to do with the biotech stocks today. what's really concerning traders now is the acceleration of today's selloff. within the first 30 or 40 minutes of the session, we basically erased all the gains that it took all day yesterday and the day before to get. that kind of acceleration is something traders don't like to see. the fact that we can't seem to find this confirmation of the bottom, again, not good signs when it comes to the nasdaq. >> absolutely not, sheila. we're stating here looking at the nasdaq 10. right now 99 of those 100 are in the red. check on the bohn marknd te. >> we had that auction, it wasn't a bad auction. a "b" minus.

but at 1:00 eastern, rates moved down a bit. right at that point, the dow was down only 140. maybe the foegs, who would want to buy the 30-year bond? kind of sunk in. and the equities took another way down. we're hovering at eight-month lows. tinkering with the 3.5% area. what happens when you derisk the marketplace? the dollar/yen moves. look at intraday. dollar getting tagged a bit. open it up year to date. boy, does that pattern look familiar. looks like all the fixed-income markets. tyler, sue, back to you. >> it sure does. almost lockstep on that. rick, thank you very much. well, the losses have been accelerating on the street. the s&p is down sharply. but one of the greatest fund managers of our time says this is probably still the great bull market that we're likely to see in our lifetime. one of the greatest. how much higher can we go? and would today be a good day to step in and maybe if you're a long-term investor, anyway, add to your positions? we'll talk about that when we come back.

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to bob pisani for context on this big selloff for the dow, the s&p and most especially nasdaq. bob? >> yeah, and you put those major indices up, you can't look at them enough. worst day since june, i think, 2012 here. take a look, not just at the major indices. i want to show you the sectors because the group leaders on the year, there's your major indices, look at the dow down -- excuse me, the nasdaq down 2.6. health care is your leader in pharma as well. that's the weakness. you can see telecom, another leadership stock, a leadership sector on the upside here. buying bonds and selling stocks, that's the story. the u.s. ten-year yield's at a five-week low. the backdrop is slow economic growth. until you see evidence that the pace of the -- of the economy is notably picking up, it's hard to force the market notably higher. that's the main argument i keep getting from the bears. and with shares at all-time

highs, you need oxygen to continue to fire. economic growth decent but not dramatic as we saw with the jobs report. just a short while ago. take a look at the previous leadership groups here. there's your biotech which we keep talking about. also health care in general. semiconductor is another one. airlines, even airlines, a leadership group this year as well, down 2%. housing-related stocks are also on the downside. as you can see today, some of them down 3% or 4%. and not surprisingly, tyler and sue, you can see the weakness in the ipo market today. we had allied financial pricing. you can see that's down $1. priced at $25. the other ones are weak over on the nasdaq. none of this is a big surprise because the primary driver of the ipo market is the strength of the stock market right now. now, we've got a number, seven ipos that are supposed to price tonight including zoe's kitchen which is a hot product in the restaurant space. paycom is also another very hot ipo that's out there.

if this continues for a few more days, you'll start seeing things get postponed potentially for a day or two or maybe even longer. we'll see. for the immediate concern, if we end down right here, down 200, there will be a lot of interest in watching those ipos price tonight. so remember, we had both of the big ones in the last two days price a little bit below the price expectation. so already, sue, we're seeing some weakness in the ipo market. but perhaps that's a good thing right now. that is exactly what should be happening when you get some weakness in the broader market. >> yeah, cool it off a little bit. we'll see. it's a tough week if you're pricing your ipo. we'll watch this afternoon, bob. thank you. if you want to profit in the market like a king, you might take a cue from fund titan bill miller. he's one of the best performing money managers on the planet. and he shared his top picks with the "squawk box" team earlier today. he's buying despite the declines. >> the housing stocks, the

builders, those kind of things which did very poorly last year, even though our fund had a great year and have done poorly this year, i think they're extremely attractive because that's a long cycle. i think the airline stocks, cost on united is 7, the stock's in the 40s, those things are nowhere near as cheap as they were. but they're not expensive if you look at the underlying economics. technology is, i think, quite attractive, whether that be -- i think it's about time to buy ibm again. >> miller's fund returned 60%, 6-0, last year. more than double the s&p, and he thinks that the market has room to run despite today's selloff. >> we may be in the best bull market that we're likely to see in our lifetime coming off that 660 level. if we can maintain very low inflation, if interest rates are low, if growth can continue globally at a slow place, valuations are likely to get a lot higher. >> so do you take mr. miller's advice and buy on the dip or cut and run? let's ask jack brewer, ceo of the brewer group and patrick kaiser, portfolio manager at

brandywine global. patrick, what do you do in a market that looks like this if you're a longer-term investor? >> one of the things that i think that's been attributed to bill, and i don't know if he's the one who said it or not, he said many people that think of themselves as value investors neither value companies or invest long term. this a lot of times presents great opportunity. the best opportunities come from down markets and down days. a so it's a very interesting time as a value investor to be sorting through the weeds. we agree that technology is one of those areas where we see opportunity right now. >> jack, it's hard to jump into a market like this at this juncture when it's falling fast. >> it is, but you have to find opportunity. i agree across the board. right now we're really invested in emerging markets. we think it's really cheap right know. and particularly emerging market debt. we're getting yields, you know, on debt in the upwards of 11, 11.5%, which is great for our clients. >> jack, let's talk about domestic stocks.

miller just said he thinks technology represents value. housing, certain housing stocks represent long-term value. and so does, i believe he said -- oh, i can't remember the third one. >> the airlines. >> the airlines. thank you for reminding pe. i me. i'm channeling my inner rick perry there. do you agree with that? >> i agree. i started buying a little bit of american a couple days ago. i think there's a lot of value in our airline stocks over the long term. i also agree with the housing. i think if you look at the housing sector, i think interest rates will remain low. i think the buyers will remain in the market. and it should be strong over the long term. >> you know, speak to me, if you could, patrick, about reaching for yield. because there are -- if you're a long-term investor and you're in retirement or rather close to retirement, it's been tough to get yield. you can't get it in fixed income, certainly. so where are you finding yield? are you looking at corporate paper? are you looking at emerging market debt like jack is?

where are you finding yield to add to the portfolio? >> yeah, you know, one of the things, we think when we look at domestic bonds in particular, we don't see a lot of opportunities overseas. that's something brandywine does well. right now we think many of the best deal opportunities are indeed in stocks. one example i would give overseas, this might fit with -- i believe it's jack's thesis a little bit is we own a lot of china mobile right now. an attractive yield that has more wireless customers than the u.s. has people. it's one of the cheapest stocks out there right now. less than three times enterprise value to ebitda if you wanted to look for a tactical metric. another one finding domestic, coming back to that technology team is cisco. more than ten times earnings. so i echo there's a lot of things in mature technology companies where they have tremendous balance sheets, produce cash flow. i think stocks in many cases

have a reasonable amount of risk for somebody -- even for somebody that's in retirement and offer attractive income because as most people foe, a substantial portion of the market's long-term return does come from dividend income. >> all right. gentlemen, thank you very much. good to have you on such a down day. ty? dom chu, "market flash." >> take a look at momentum stocks. yeah, we're going to talk about them again because they are really the center today. first look at solar. then you've got tesla, cellgene, all getting hit pretty hard. momentum continues to be a focus. perhaps what's leading the market to the downside. now, stick right here on "power lunch" because after the break, we're going to talk about some of those reasons why those momentum stocks are getting hit as hard as they are and why the market may be -- may be -- showing signs of a top. all that next up on "power lunch." keep it right here. financial noise

financial noise financial noise

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stocks. hitting its all-time high of $72.59. back on march 11th. the stock is down 20%. one-fifth of its value gone. over the last year, remember, this is a stock that's still up over double. overall, tyler, yes, momentum coming out, but still, keeping perspective. back over to you. >> all right. hang around with us, dom. and we'll be rejoined by bob pisani. sue is also here in the building. looking for answers here, bob. yesterday was a blip higher because the fed minutes were published and people saw reason for cheer in that. and yet today, the bottom drops out. why? >> well, look. look at the jobs report. a short while ago. we saw a decent jobs report but not a great one. and the bears had been pushing the argument you've got to have oxygen to keep the fire going. stocks are at an all-time high. show us the evidence of dramatic improvement in the economy that would be necessary to really push stocks even to a higher high and the bears have been saying we don't have it. i think they have a valid point,

and i think we do need to get better news. i do think it's coming. but right now it's 50/50. >> dom, what do you think is behind it? we do have a tax deadline coming up. it could be a little bit of that. it could be people taking profits in a market that's becoming more predictable and more volatile. what do you see? >> you know what's interesting, while i was filling in for bob on the floor of the exchange yesterday, i took an unscientific poll. after the news came up, remember the market doubled its gains. it was interesting. it was pretty evenly split. those saying it's a sign that the market is continue to move higher. another batch said to, you should definitely sell into this. this is not one you want to get long in in these levels. what's interesting about the action today, it's a valuation concern, yes, it is. but what's more important to me, at least from my perspective, is why this kind of action is happening ahead of the bulk of earnings season. we've only had a couple of companies report out. we don't even get jpmorgan and wells fargo until friday. yet traders are comfortable

taking risk off the table despite the fact that there may be some positive catalyst, maybe again with earnings season. >> i would point out, the s&p is flat on the year. >> yeah. exactly. >> we make a big thing about the momentum stocks. your average guy that's sitting out there that owns an index fund, he's flat. >> yeah. it's the headline, though. you know, when you look up and you see a 201-point decline in the dow and a triple-digit loss in the nasdaq. we're going to talk more about that on the other side of a break. nasdaq's down 112. dow is down 200. make it happen with fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity.

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must be a big fan. and the license plate reads "sir charles." i'm gonna get some drinks with my capital one venture card. be right back. earn unlimited double miles with no blackout dates from the capital one venture card. forgetting something, sir charles? what's in your wallet? stock market significantly lower right now. it's not just the dow jones industrial average. it is the nasdaq. it is the s&p. it is the transports. so let's talk more about this. bring in barry james, president of james advantage funds. kenny polcari back from the nyse along with art cashen. i loved your afternoon note. you gave us levels that we need to watch. how does the market feel to you? you've seen a lot of market action over the years. what's your interpretation of what's happening now? >> there's a couple things. let's start with a little folklore. as you know in my preopening comments, i mentioned that the thursday before option expiration week for some strange reason over the decades has had

a high volatility factor. and in fact, almost a 70% bias to the down side. so we're living up to that today. if you look at what's moving, you look at how sharply the ten-year yield is down, i mean, it's almost phenomenal. you look at gold, you look at where the selling is going in the stock market, those factors would tell you this is a massive flight to safety. now, what's missing there is the dollar. you could say they're going to the yen as the strong currency. it's a little scary. >> art, i'm going to turn to barry for a quick thought here. we're a little tight on time. what do i do now, barry? >> well, i think you should be selling stocks. we've reached a hairpin curve. you feed to downshift. buying bonds is a good thing. but energy stocks, i think, are the one pocket that can hold up really well. stocks like valero, vectron and

railc railcars, all three. >> ten seconds, kenny. >> i don't think you panic at all. i think you take some money off the high flyers, put it back into the ones that will be value oriented, that will do better in the second half of the year. >> thank you all. appreciate it. >> that was pretty good. >> ten seconds on the noes. that does it for us. >> mandy's up with "street signs" next. >> absolutely. top of the hour, we've had two days of gains. what is going on? what do you do right now? also, the prices that some drugs cost is absolutely crazy. but if you have a disease like hepatitis c, you have no choice about up to pay. "street signs" is back right after this very short break. ♪ ...work with equity experts... ♪ ...who work with regional experts... ♪ ...who work with portfolio management experts,

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(aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. stocks are down across the board. the nasdaq once again bearing the brunt of the pain, mandy. it is a triple-digits loss for the dow as well. >> it really feels like easy come, easy go. they've all wiped out gains from the last two days. let's get straight to sheila at the nasdaq. sheila, tell us what's going on. >> the good news is that we do seem to be finding some sort of a bottom. we are now down