we start this hour with breaking news. this is the image from flight tracker, the website, showing the end, the disappearance from that website oaf malaysia flight 17 attempting to fly from amsterdam to kuala lumpur. you see the green line near the end of the russia/ukrainian border. there's a lot we don't know, but here is what we do know right now. the flight went down, the first bulletins came into our newsroom

some 93 minutes ago. malaysia airlines says it lost contact with the plane over ukrainian air space. sue is out today. kayla is at the new york stock exchange. hi, kayla. >> hi, tyler. good morning to you. we have live team coverage of this story beginning at the top of this hour. we start with chief international correspondent michelle caruso-cabrera. michelle, we want to get to the latest from you, but nbc news is reporting that u.s. commercial flights have been prohibit from flying in that air space for fear something like this could happen. the faa apparently issued a notice in april about this. what else do we know about this region and what some of the response has been? >> that notice was specifically about the crimea region. they were concerned about that. two new things to show and tell you as well. we'll show you some photos that reuters has sent over, but they have taken them directly from russian 24. this is a network in russia.

it appeared to show photos of debris of the plane on the ground. this is from russia 24. in addition, we have now also heard from the pentagon as well. pentagon spokesperson rear admiral john kirby says that secretary hagel has been briefed on the malaysian plane crash -- "we do not have any indications of what brought it down," adding, "we cannot confirm it was shot down." that is the question that the markets are asking right now. was this a deliberate act as a result of the fighting in the region, which is why, kayla, to your point, the faa did not want u.s. commercial jets in that area. the white house press secretary has now just said, "i can confirm that president putin near the end of this morning's phone call with president obama noted the early reports of a downed passenger jet near the russia/ukraine border." so we now have conversation that the presidents of both russia and the united states have spoken. this was a prearranged phone call in which president obama

warned president putin there would be even more sanctions in addition to the ones announced last night before this incident happened if russia did not do more to calm the situation on the border with ukraine. so once again, those are the latest things we have related to this incident. we are waiting to find out exactly what brought this plane down, why we've seen such a strong market reaction. here is russia 24 as well, which is showing smoke from what we presume to be the wreckage of this plane. back to you. >> thanks for that, michelle. state leaders in both ukraine and malaysia have called for an investigation into the cause of this plane coming down, but that's the latest that we know for now. phil on twitter, i've been looking at people's reaction to this flight. a lot of people who are either watching relatives on other transcontinental flights are watching the flight paths divert around this region of ukraine. >> right. >> i'm wondering, if you're an airline, how do you respond to this? >> well, first of all, we do know that the u.s. airlines -- in fact, i'm looking at the notice from the faa -- they were

told on april 3rd don't go through this area. do not have your flight plan go through this area because the faa has jurisdiction over u.s.-based airlines, all airlines agreed. we just learned that lufthansa has said it will not be flying through this area. ultima tly that decision in terms of flight plans comes down to the airline, the region they're flying over, and those government entities that are in charge of that space. that's one of the questions that's going to be put to the officials from malaysia airlines, which is why would you fly over the space. we have looked at previous flight paths from the past couple of days that have been provided to us by flight aware, and they show that this plane, this type of plane made the same exact flight path in the past couple of days. so this apparently has been what malaysia airlines has been doing. one thing to keep in mind, kayla, there's a lot of speculation about what might have happened here and we may not know for a long time, but keep in mind the last contact with this plane was at 33,000

feet, which would indicate something catastrophic happened at that altitude. this is not a case where this plane may have been suddenly losing altitude and the pilots sent out a distress message. this is a case where, whether it was a missile, whether it was something on board, whether it was something mechanical that happened, it was catastrophic and it was fairly quickly in terms of how it happened. so that's going to be one of the things that the folks at boeing, malaysia, as well as the aircraft investigators who are on the scene there, they're going to be focused on that first and foremost. what happened at 33,000 feet that would bring this plane down. >> phil, thank you very much. phil lebeau, we'll be back with you i'm sure throughout the course of this hour and afternoon. amman jabbers is covering the story from washington. what has the administration said whether from the white house or the state department or the defense department? >> the president boarded air force one shortly after this

news broke. he was on ooh preplanned trip to delaware. we're told the president spoke earlier today with russian president vladimir putin. there was some initial confusion of whether that call took place before or after the news of this airliner going down had broken. now as michelle just said, we are told by white house spokesman josh earnest that he says i can confirm that president putin near the end of this morning's phone call with president obama noted the early reports of a downed passenger jet near the russia/ukraine border. the white house using that word "noted" saying that putin noted that with president obama. not clear whether putin was informing president obama that that plane had gone down or whether the president of the united states was previously aware of that. but obviously a tense phone call that had been prescheduled to discuss the intense sanctions imposed by the united states on russia just yesterday. that conversation ending on the early reports of this malaysian flight going down.

that's what we know as of now. no indication yet that the president is going to say anything about this. obviously the white house wants to know everything it possibly can about what happened here before we see the president on camera. but typically in these large breaking news stories, we will see the president at some point. no indication of that just yet, and no more details coming from the white house, guys. >> all right. thanks very much. obviously you'll be back with us as news warns on this hour. joining us now on the phone is former undersecretary of defense frank gaffney, now president of the center for security policy. mr. gaffney, welcome. good to have you with us. give us what insights you might have specifically how will we ever know whether this plane was shot down or came down as a result of some midair anomaly or catastrophe? >> i think it will depend upon whether we have access to or at least competent investigators have access to the wreckage. that would be pretty

straightforward forensic analysis, i think, assuming they do have that access. i gather that because of where most if not all of the wreckage has landed in areas that are controlled by the so-called rebels in eastern ukraine, that may be problematic. >> in other words, to get credible investigators into that area to go over the forensic evidence there. from what you know about weapons systems, what kind of weapon could have brought this plane down if it does, in fact, turn out -- and who has them if it does, in fact, turn out to be the downing of an aircraft? >> well, of course that's something that will presumably we'll know more about once this forensic investigation is done, if it can be. my understanding is that an adviser to the ukrainian defense ministry has described it as a

buck missile defense -- excuse me -- anti-aircraft missile system. it's a medium-range surface-to-air missile system. i assume there are some in the ukrainian inventory, but i also would be willing to bet that such things might have been provided by the russians to their proxies in this ongoing struggle with ukraine for essentially i think the feature of eastern ukraine, rush sympathizers. whether this is in fact what has been used is premature to say certainly by me, but -- >> would american intelligence, mr. gaffney, or western intelligence, using satellites, using whatever means are available to it, would those agencies ever be able to trace or track a missile taking off and going up and hitting a plane like this? would we be able to do that

independent of what we see in the wreckage on the ground? >> well, i think it depends whether you have assets focused on that particular territory. if you do, there is a possibility. if you don't -- and we have sort of an image of american intelligence as being omniscient. it's not. it's got some extraordinary technical capabilities, but they are limited, and i have no idea whether satellites or other sensors have been focused on eastern ukraine. there's obviously a high level of concern about what's going on there, as you indicated in your lead-in. the president of the united states and the president of russia are talking about it quite apart from this particular question because there is a very, very high level of drama playing out involving russia,

nato, the united states, and of course ukraine. so i had no idea. i think it's the kind of thing that to be sure they're going to want to see the wreckage itself, but there may be some intelligence that would be able to give you some clues provided they were being applied to monitor that sector. >> one final question, and i haven't got it phrased precisely in my own head, but i think you'll be able to intuit what i'm driving at here. if this conflict heaths up and this aircraft is proven to have been brought down by a missile of some sort, what will that mean for relations between the west and russia? and could we be turning toward if not a rearming of the west and america to something that is

very different from what our experience has been since the fall of the soviet union, since the fall of the berlin wall? >> that's a great question. may i just say that i think quite apart from how this turns out, ending the hollowing out of the united states military that has taken place in earnest over the past five years ought to be a top priority if only because what we're seeing all over the world, not just vis-a-vis russia, ukraine, but literally worldwide is increasingly dangerous, strategic environment. whether this particular episode and what it might tell us about what russia is doing and that assumes, of course, that the russians or their proxies are implicated in this, i don't know. i think in part it will depend on the investigation yet to be done. but i do think that what we're seeing is a gathering storm, as winston churchill put it, evidence of very bad actors with

very malign intents being emb d emboldened by what they sense is weakness. for all those reasons, we ought to reconsider doing a course direction on the e vis ration of our military capabilities. >> thanks for your insights. i hope we can call on you again as this story develops. frank gaffney, former undersecretary of the united states defense department. dominic chu now, market ree action. >> tyler, what we have are varied market reactions all over the board. gold prices are moving higher as investors look for that safe haven-type trade. gold up about 1.3% on the day's trade. as a result of, that gold mining stocks are moving higher as well. you can see some of the names. these are more levered to the price of gold. on the commodities side, weak prices moving higher as well. you can see toward session highs up over 2%.

and corn, same kind of reaction there as well. corn prices you can see they're now just down to flat. wheat, remember, is is key, kayla, because the usda estimates that about near 20% of world wheat production comes from either russia or the ukraine, so, again, those two combined together, if there is geopolitical risk, will manifest itself many times in those wheat prices, kayla. back to you. >> of course rippling effects in the commodities complex, in the stock market, volatility is up today. stocks have taken a hit. we have bob pisani to walk us through what's happened. the dow is down as much as 93. now the market is basically back where it was before this news breaking. >> we lost about 60, 70 points on that. look at the dow industrials after 11:00 eastern time, interfax news agency, started to is see the dow move down. cash ca art ashin and i were on the floor. people were coming up saying is this possibly correct? a malaysian jet down in the

ukraine? people trying to to confirm that headline. we spent a lot of time just getting the facts right. take a look at heavy volume and some etfs right now. already under some pressure due to the sanctions announced earlier. very heavy volume in this. that's not surprising. one area you want to look at is high yield bonds because high yield bonds do not act like bonds when you have high volatility. they act like stocks. people head for the exits. we've seen some pressure recently in some of the high-yield bonds. here's one of the big ones today. very heavy volume as well. you could see it down fractionally. the vix moving up, at a one-month high, but also coming off it highs. the important point is people kept asking e me, only 60 points on the dow, aren't you surprised it's not down more. assumption on the floor has been all morning that this was some kind of terrible accident, that if it was shot down, not deliberately shot down, and i think the reaction if somebody would have come out and said we're in an act of war, deliberately trying to shoot down a commercial airliner, i

think you might have seen a stronger reaction. we still have to confirm what happened here, but everybody on the floor made the assumption this was some kind of accident. >> right. market not allowing it and trying to make sense of all of this. thanks for putting this into perspective. the news of this crashed malaysian jet over ukrainian air space really roiling the markets. we also have the fighting in the middle east. there's wall street's fear index, the vix. let's take a look at that if we have it. yes, we do. there it is, and you can see it moving markedly higher there in the last hour and a half or so since we got news of the malaysian airliner going down over eastern ukraine. we'll be back with more coverage in two minutes. summer event is. now get the unmistakable thrill... and the incredible rush... of the mercedes-benz you've always wanted. ♪ [ tires screech ] but you better get here fast... [ daughter ] yay, daddy's here! here you go, honey. thank you. [ male announcer ] ...because a good thing like this... phew! [ male announcer ] ...won't last forever. see your authorized dealer for an incredible offer

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i'm michelle caruso-cabrera at the breaking news desk. we have a statement from the chem lin in russia related to the lost malaysian jet at this point. russian president vladimir putin is expressing his condolences to the prime minister of malaysia in regard to the crash of the malaysian passenger plane over the ukrainian territory. he asked to pass the most sincere words of sympathy to the families and loved ones of the passengers killed in the crash. that's a statement from the kremlin in russia. we have a fresh photo to bring to you from reuters showing a firefighter dealing with the wreckage. we have more photos to show you as well coming from russia 24 of this passenger jet that went down in eastern ukraine just west of the russian border. once again, this is -- these are

photos that we have taken from russia 24, the 24-hour news channel in russia. this is a firefighter dealing with part of the crash. this is in addition to the video that we've been showing you of the smoke coming from what we presume to be the wreckage as well. and we are standing by as well for a statement from the state department on a briefing perhaps as well, guys, but that's the latest on flight mh-17 which appears to have been lost over eastern ukraine. back to you. >> thank you very much, michelle. peter fellstead is on the news line with us, the editor of james defense. there's a lot we don't know at this point, whether this plane crashed or was brought down. if it was some sort of a shootdown, who has the capability to do such a thing? and what kind of missile system would they have needed to do it? >> okay. well, it would have to be a quite sophisticated missile

system, a mid to long-range missile system, something like an fa-4, an older system, that can hit targets up to 23,500 meters, an sa-11 or 12, they could hit an airliner flying at 10,000 meters altitude. now, whoever shot that, if it, indeed, was a shootdown, is it's going to be very unclear. if you look at the inventories of ukraine and russia, they both have these kinds of systems. when you talk about the rebels, what typically they've been using are smaller more portable sams. the aircraft they've been shooting down have been flying at relatively low altitude, transports taking off and landing, low-flying strike aircraft. so it would be surprising though not impossible if the rebels had

got hold of something like a book, an fa-11, as i've seen at least one report saying. if you look at the ukrainian military side, you'd have to ask, well, why are they loosing off surface to air missiles when they're not actually facing an air threat? so, you know, if you want to hypothesize, which is kind of a dangerous thing to do right now without the kind of information that we need, you could say, you know, well maybe the rebels did perhaps get hold of a more sophisticated system and not being able to use it properly, maybe they made a mistake. >> mm-hmm. all right. peter, thank you very much. very interesting insights there about the kinds of missile systems that might be capable of bringing down an aircraft at 33,000 feet, 10,000 meters, or higher. peter, thank you again. if this was a case of a commercial airliner being shot down, it is not the first time we've seen such a tragedy. russia shot down korean airlines flight 007 on september 1st,

1983. it was a 747 that had 269 passengers on board. on july 3rd, 1988, a u.s. naval ship thought it was being threatened by an iranian fighter jet. it actually shot down iran air flight 655 on its way to dubai, killing all 290 people on that airbus 300. to dominic chu now for an update. >> all right. so, tyler, again, where it's being manifested in the market right now, shares of russian companies that are traded in the u.s., they are taking a hit in today's trade. if you look at shares of kiwi, the paypal, if you, will of russia, down near 8% just off session lows. you can see there. as is the index, bouncing off its lows, this is in essence the google, if you will, of russia. also vimplecom, down to session lows. these are other places where the

ripple effects of malaysia flight 17 are being seen in the market today. back over the you. >> we'll continue to watch what's moving in the market as the dow is now down 41 points off the lows of the session in the wake of news about this malaysia airlines jet downed near the russian border. to discuss this, chris ailman joins us. welcome to "power lunch." thanks for joining us. >> pleasure to be here. >> just yesterday we were talking about earnings, mergers, and potential spike in gdp growth this quarter as something that could be goosing the market further. but when you wake up on a day like today and you see news like this, what's going through your mind as an investor? >> well, it's an example of the volatility that we've seen around the world, whether it's ukraine and russia, north and south korea, israel, palestine, there's conflict in the world and there's risk in the world. but you've still got to find ways to invest and to we think the major markets are a safer place to play. >> last night the president

unveiled a new sweeping set of sanctions against russia. the financial, energy, and other sectors that were meant to hopefully begin to krip that will economy hshgs president putin called them a pity. we have seen pullbacks pa-in stocks like visa, bp, morgan stanley, which has a big stake. i'm wondering if there are any u.s. stocks that have particular russia exposure that you would caution investors on. >> well, not specific names, but i think it's an example of how even u.s. companies are very international in their earnings. if you look at the s&p 500, over half the companies get half of their earnings outside the u.s. border. but their exposure to emerging markets like russia is less than to the developed nations. and for us, russia is a market that we've watched for a while. we have reduced our exposure to russia pretty consistently starting with last december. and some of their political

moves on personal issues. >> chris, you noted a bias toward u.s. stocks, good for your performance, but no doubt a lot of investors sharing that sentiment today. we have to leave it there, but thanks for joining us today. ? thank you, kayla. >> meanwhile, gold spiking and bond yields plunging as investors look for safety in this uncertain geopolitical climate. how it's playing out, plus the latest on that flight, malaysia airlines flight 17 crash over ukraine. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

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welcome back to "power lunch." keeping a close eye on the russian market, the rts has fallen 4% on the heels of new u.s. sanctions yesterday and of course the tragic events surrounding malaysia air flight 17 today. that's carrying through into the exchange traded funds, the etfs that track russian stocks. ticker rs sxshgs is down near session lows, 6%, down on the day. the russian cap index ticker erus also down by about that am as well. again, the ripple effects from stocks there showing just how much vost are trying to handicap what's going on and what the information is coming out of the ukraine and russia right now. back over to you. >> dom, thanks for bringing us all of that as it happens. gold breaking back above its 100-day moving average following reports of that malaysian jet crashing in ukrainian air space

near the border of russia. right now you can see gold prices at 1,317, up about 1.3%. the rest of the precious metals complex also up slightly. a check on the bond market, bond yields dropping following news of that jet crash over ukrainian air space. rick santelli, in the last four months as these tensions between the russia and u.s. have increased, it's always been the ten-year that's been the ind indicator. >> it has, but it's very difficult to extract what makes markets move. today with that horrible tragedy of flight 17, we can see a little more clearly and there indeed was an effect. if we look at a 24-hour shot of tens, we can see well before the 10:30, 11:00, tragedy starts to hit the airwaves, we'd already traded up. >> so you've seen the reports parentally coming from the

manifest that there were 23 u.s. citizens on board. even if you don't know if that's actually correct, can you say whether you have that information from the manifest that apparently there were 23 u.s. passengers aboard? >> we've seen the public reports. i spoke to our team right before we came out here. we done have any additional details at this point on american citizens. we're looking to of course obtain that information. as soon as we have it available, we'll make it available to all of you. >> as the secretary, you know the president spoke to president putin this morning about not this but the plane came up. has the secretary made any calls to anyone in russia, anyone in ukraine that you're aware of? >> not at this point. obviously this just happened a couple of hours ago. we can keep you updated as well on any additional calls he makes this afternoon. >> does he plan to? >> i don't have any planned calls to predict for you, but, you know, if any calls happen we

can make sure those are available to all of you. >> so the ukrainians foreign ministry is saying they have reason to believe, not just a guess, based on their assessment, this was a russian loop miss until the hands of the russian separatists. you have chatter on twitter about some of separatists saying they did shoot down a plane. has your team on the ground spoke on the ukrainians? have they told you this is your assessment, that this is their assessment and you just want to get your own confirmation? i mean, where -- >> as i mentioned, we're in touch with yooushgen authorities on this incident. >> obviously share this assessment with you. >> i don't have further readouts but i think it's a safe assumption that we're discussing reports and obviously a range of comments that have been out there. we don't have our own conversation of details. i can predict for you if and when we will, but obviously events are very fluid on the ground. we done have any more information from here to share.

>> because given the fact that this is very fluid and very early, i mean, there is already a kind of, you know -- some common wisdom that says the sap separatists have done it. but is this your belief? do you have confirmation on that, suspiciouses about at this at this point? >> i'm not going to speculate for obvious reasons. we have no additional details to share other than the reports you've seen about the plane crash. in terms of the causes, the individuals on board, i have nothing else here from the u.s. government. >> -- ukrainian transport planes that were shot down i think in the last week, maybe in the same area. i mean, is that something that you're looking at in terms of that this could be a similar mistaken -- >> i'm just not going to speculate further for obvious reasons. >> -- from the actual -- what actually happened, whoever or whatever was responsible for it, is it correct that this type of missile that e elise just mentioned, the loop missile, was

among the -- sorry? >> i could have said that wrong but -- >> however you pronounce it, this kind of missile was among the wep to upaponry that you ha over the past many or so that have been transiting from russia from these military facilities sites in western russia, sorry, to the separatists in ukraine. >> i'm happy to check that, matt, but i'd also note that we don't have confirmation that that is the cause or the source of the plane being downed. >> i understand that. but are these missiles that the ukrainians say are responsible for this plane, ra those the type of missiles apart from this incident that you were plain xlaining the russians had been sending into ukraine? >> i'm happy to check with our team on that separately from this incident. >> one of the things yesterday when you imposed the new sanctions on the russians, i

mean, isn't it true one of your concerns is the russians have been doubling down on their increasing supply of weapons to the separatists? >> we've stated that public pli and still have a concern about that, but i think there's a difference between making unfounded or unconfirmed accusations -- >> i understand that, but talking about the specific missile, has it been a concern that the russians have been supplying them with truck-mounted or shoulder-fired missiles? >> we've expressed concerned about that in the past, elise. >> particularly those type of missiles? >> i would point you to past comments we've made about them. >> the administration has been very clear it blames the russians for escalating the conflict in this area and that they've added to the tensions there. so whoever is to blame ultimately for this downing of the airliner, is there some responsibility by moscow for the situation as it now exists? the area? >> well, i think broadly

speaking, malt, the fact we announced new sanctions yesterday, including several defense and energy companies, speaks to our level of concern about the es cala toir actions we continue to see e from russia. however, we don't have enough information with this specific incident, and that's why i'm not going to be able to provide you any confirmation of details and i don't want to speculate on who's to blame or the root causes when we don't have that information at this point. >> speaking of the climate, the climate of conflict that's escalated and led to this tragedy psh. >> again, we don't know that at this point in time because we don't know what the causes are or -- >> it appears we lost the feed there going toto toe with several reporters about what we know about rebels based in that eastern sort of conflicted part of ukraine may or may not have.

with respect to surface to air capabilities and how they may have gotten them. >> i see they've have help with investigation. clearly they don't have any type of capability to launch any type of investigation, they might have control over the black boxes, how do you see the ukrainians and how can you help navigate ensuring there is an investigation? >> well, we're in close touch with the ukrainian authorities and if there are requests made, we will keep you all abreast of whether we are providing assistance and what kind of assistance we're providing. >> any americans on board? >> we are happy to provide all

of you with that information as soon as we have any details to confirm. obviously we're seeking that information as we speak. go ahead, matt. >> apart from that incident, just generally speaking, the situation in the east, irpresume but please tell me if i'm wrong that you still have the same concerns and the same issues with the russians that you did yesterday that led to the imposition of the new sanctions. is that correct? >> yes. >> and you haven't seen any movement by them toward what has been asked of them. >> in the last 24 hours in. >> the eu's move, which they said they would have sanctions by the end of the month. is that okay with you guys?

is that -- >> well, as you know, they placed some restrictions -- they took steps yesterday to impose costs on the russian economy. we have been going these yesterday in close coordination with the eu. they moved also to put in place the needed framework needed to impose costs on russian companies that undermine ukraine's stability and territorial integrity with a july deadline for naming the list of entities. i think that's what you're referring to. certainly we were coordinating close with them, in touch with them, welcome these steps that the europeans have taken in this regard. i'm sure you have the details. i'm happy to outline those for you if you have any questions. >> one of the companies hit by the sanctions yesterday was a company that makes ak-47s. the russians today are saying that this specific sanction runs

counter to the interest of u.s. consumers. do you have any comment on that? >> well, let me first say that clearly as we are making decisions about sanctions as it relates to any in the world, we are taking into account the impact on the united states businesses and consumers and certainly we feel that peace and political instability and respect for international law are of critical importance to the global economy and to u.s. businesses. but let me give you some specific examples of the precautions that we take. the sanctions we imposed yesterday were deliberately crafted to limit to the extent possible spillovers on the united states and on third par -- third country companies, pardon me. for example, in the financial sector, we deliberately avoid interfering with day-to-day operations to avoid a shock to global financial markets. in the energy sector we took steps to limit the ability of certain companies to raise dollar financing. but we have not tried to interfere with their ability to

export oil and gas or to maintain their existing joint ventures. so we take into account, of course, any impact on u.s. businesses, u.s. consumers, as we make these decisions. >> so the specific sanctions on the kalashnikov company will not affect american consumers of ak-47s? >> well, i have not seen the specific impact that's been listed. if there are specifics out there we can certainly look into that. >> but as far as you know, the ability of the american consumer to purchase semiautomatic assault rifles from kalashnikov has not been affected. is that correct? >> i can check that level of specificity and see if there's a direct impact. saeb? sure. >> are you aware of any efforts undergoing now of talks for a cease-fire and whether the united states is actually involved in this directly? >> well, first let me say that secretary kerry has been in touch daily -- >> that's the state department

spokesperson talking about what the state department knows about this lost malaysian airliner. she said she did not have confirmation of any number specific of americans who may have been on board that flight, though there have been reports that there were american passenger passengers on p passenger manifest. we'll keep watching that and bring you the news as it parents from the state department. meantime, let's go to steve liesman with some breaking news about the economy. >> just a bit of normal cnbc news here. some hawkish comments and the market may be trading in the wake of them saying federate hikes may have to come sooner rather than later. policy, he says, should be careful not to create excess inflation or financial instability, and he says the fed's goals are close to being met. normalization, code for raising rates, will take a long time. current policy he says is far from normal. there's a mismatch, he says,

between the economy and policy and that could cause problems. a loose policy and improving economy suggests, tyler, an earlier start. we're watching the dow in this the wake of those comments by st. louis fed president jim bullard. >> we want to send it to dominic chu also far quick market flash. dom? >> so the dow has lost about 30 more points in just the past half hour. there are other russian stocks trading in the u.s. that are also losing more value today. one of the big ones is a russian oil and gas giant, a $90 billion company that trades around a million shares in the u.s. on average every day. it's already trading over 1.5 million shares, down 4.5%. then there's ctc media, a russian television company, media company, $1.7 billion worth of that company, has traded over 1.1 million shares, down 3.5%. and mobile telesystems, a $19 billion telecom company trading 2.4 million shares a day on average, down 3%, tradesing that

amount in just today's trade so far. again, heavier volume far lot of these trades. back to you. >> thanks you, dominic. as we look at the dow industrials, down about 70 points. quick break. over 20 million kids everyday in our country lack access to healthy food. for the first time american kids are slated to live a shorter life span than their parents. it's a problem that we can turn around and change. revolution foods is a company we started to provide access to healthy, affordable, kid-inspired, chef-crafted food. we looked at what are the aspects of food that will help set up kids for success? making sure foods are made with high quality ingredients and prepared fresh everyday. our collaboration with citi has helped us really accelerate the expansion of our business in terms of how many communities we can serve.

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tooiler? >> thank you very much. we have live team coverage. our chief international correspondent, michelle caruso-cabrera, our reporter philip lebeau. michelle, you first. >> we've seen an interfax report, russian news agency, that 23 americans were on board this plane. we do not have confirmation of that. as such, the state department spokesperson was asked specifically about it in the news briefing we were just showing you a few moments ago, and she does not have confirmation of that as well. we will at some point know this very clearly because there will be a manifest and we will know what passport was used by each of the individuals on this plane when they boarded this flight, which went from amsterdam to kuala lumpur. what is still unclear at this point and the key question is why did this plane go down? was it deliberately shot down? there are conflicting reports it was shot down, and if it was shot down, was it a mistake, was it thought to be a ukrainian plane, a russian plane, and did the separatists in this region

have anything to do with it. these are the questions we don't know the answer to. and one of the reasons why we saw a sell-off in the markets earlier, and then when it was thought, well, if it did happen, it's likely to be some kind of horrific mistake, but still a mistake nonetheless, why we've seen the markets come off the lows. bottom line, we're waiting to see why this plane went down, trying to figure out exactly what brought it to the ground. back to you. >> michelle, thank you very much. to phil lebeau in chicago now. one really important point here that frank gaffney made earlier, and it is an obvious one, is that when a plane goes down, obviously you want to get to the black boxes first and retrieve them, you want to look at the wreckage. but because, phil, this plane went down in an area where the separatists seem to hold sway, who gets there first and who claims that information is really going to be critical to the investigation. >> absolutely. you definitely want the flight data recorders because that's going to tell you hopefully what

happened in the final minutes there, unless we're talking about something that was so catastrophic that basically you have a flight data recorder that just says nothing. but what remains to be seen exactly what happens there. let's talk about a couple pieces of news that just came out, tyler. first of all, the department of transport out of london, department of transport saying that it has advised all pilots around the world to avoid the area in question. here's what boeing is saying on twitter. we are apair of reports of mh-17. we're gathering more information. that's the latest we have from broeg. the plane in question is a boeing 777-200 er, the er standing for extended range. here's a shot of the plane in question. 295 people on board. 280 passenger passengers, 15 cr. it went down about 31 miles from the russian border. if you take a look at shares of boeing, when this first was reported, there was a dip for shares of boeing, but as the day has gone on, the stock has come back primarily because initially

the concern was could this have been something mechanical that happened and if so that has far greater implications for boeing than if it was shot down. again, we don't know exactly what happened here. but a couple of things to keep in mind. the last contact with mh-17 happened at an altitude of 33,000 feet. there was no disstress signal. in other words, if this was a plane crash where something mechanical happened and they started losing altitude quickly, the contact would have been happening at a lower level, there probably would have been a distress signal, there were neither of those. the other question is how wide is the debris field? if you have something scattered over wide range that would seem toind kate perhaps there was a catastrophic event at 33,000 feet spreading the debris over a wide area as opposed to if the plane had something mechanical that happened and it went almost straight down into the ground. that would limit the debris field. so a lot of question, still, but we should point out again that the department of transport out of the uk says that euro control, essentially the air

traffic control for europe, it is advising pilots for all airlines around the world, stay away from this area, certainly while this investigation goes on and also because of the possibility that this was a plane that could have been shot down. tooiler? >> phil lebeau, there are reports that the debris has been seen over an area roughly 15 kilometers wide or about nine miles, which is one piece, as you point out, of the puzzle. kayla? >> thanks for that, ty. we're joined by "new york times" correspondent david hertzenhorn. we know this plane went down about 30 miles from the russian border. it was supposed to go into russian air space and never made it there. characterize this region for us and what's been going on recently as russia, ukraine, those tensions have been off our front pages for some weeks now. >> right. well, what we've been seeing in recent days obviously is sort of an air war beginning in this month-long ukraine crisis.

since april, you know, there's been a separatist insurgency going on in the east. this area is quite close to the border. what we saw monday is a military transport plane, a ukrainian military transport plane that was shot down. then yesterday fighter jet was shot down and the ukrainian government today accused russia of downing that fighter jet with its own planes. so this is not a precedent, this kind of activity, either involving rockets fired in the air or from anti-aircraft fire. there's no indication yet that it was shot down, that the president of the ukraine issued a statement calling for a national commission to be formed to investigate. he pointed out this is the third bad tragedy in the last few days and pointed out that ukraine holds russia responsible for the first two. >> david, we're just scratching the surface on this situation. thanks for bringing us up to speed with your on the ground

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on the phone, a commercial

airline pilot and publisher of "jet wine." a two-headed question. if you were uneasy over flying over a particular region, whether ukraine or say north korea, would you have the ability on your own to avoid it? >> absolutely. absolutely. captain always has the final authority into where anyone wants to send him, whether it's the airline dispatcher, air-traffic controller, or anybody else. he may have to answer some questions when he gets back, but the point is he always has that option. >> all right. and second, if the plane were hit by a missile of some sort, would anybody on board have had any warning whatsoever? >> not to my knowledge. the only airline that i believe has the ability to detect his ls is ll, the israeli airline. the rest of them do not isolate. >> all right. and your sense of this, you have any speculation here that could advance the ball? >> well, it's a hard one to call until we see the wreckage for

sure. we're going to know when we see that. but my guess is -- i'm still trying to figure out what in the world the pilots were flying in a hot zone like this. >> robert mark thanks for being with us. i'm sure we'll be back in touch with you over the next if, hours and days. that will do it, kayla, for this edition of "power lunch." and it's been great being with you on this very busy news day. >> yes. >> "street signs" begins after this break. i make a lot of purchases for my business. and i get a lot in return

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and welcome back to c, in where we begin with breaking news. a malaysia air boeing 777 went down in the eastern part of ukraine just a few hours ago. pictures from the scene show a wide swath of airplane wreckage. malaysia airlines flight 17 was on its tway from amsterdam to kuala lumpur marx l, malaysia, in ukrainian air space when it disappeared from radar. there are reports, and it is important to know these are unconfirmed but widely out there, that the plane may have been shot down. more on the story in moments, but here's how your markets are reac