though it will pay off in 2015. raking in the profits. the f-150 truck is selling like hot cakes. >> swrim. >> long bp. >> all right. pete, what is it and why? >> i love those pharma names. i'm going to go with merck, mrk. >> have a great rest of the day. all of you as well. power lunch begins now. >> thanks very much. welcome, everybody. forget about the noefl. we are neck deep in a market freefall. 100 pounds off the lows but still a big move downward. as you see there, by almost 1.6%. the s&p 500 about 1% lower. nasdaq 1.50 lower, and the russell a half a percent. we have a lot of travel messes to tell you about on our hands. the storm is hitting new england. how long will it take to untangle all of this? big bluechip companies hurt by the dollar. who is next to report trouble? earnings, the dollar and trouble and we will get you ready ahead

of apple's report after the bell today. what is the right trade? we've got it. shares are down 7% since december. is it time to buy? sue is with us here in inglewood cliffs today. >> hi ty. the dow plunging triple digits. down 390 points at the low of the day. that was not enough to get the dow to a six-week low and as he mentioned, we're 100 points off of our low point of the session. durable goods orders dropping sharply, and a number of dow components blaming that strong greenback for their weak earnings. this as the fed kicks off a two-day meeting on interest rates. let's take a look at how the transports are performing. you just saw it. they were on the down side sharply. the ten-year note and the euro you're up-to-date on all of those. the dollar is a crucial part of this story. here's where we stand right now in terms of the currency trade. the euro bouncing today against the u.s. dollar. mary thompson at the nyse with more details on that. hey. >> hey there, sue. stronger dollar and giving lift to some of the crude prices and

energy stocks improving. that along with strength and utilities helping the dow to trim where the broader markets trim their losses today. nevertheless, the big theme out of all the earnings that were issued today the strong dollar impact and concerns about the impact of lower oil prices. let's sfoex on the companies that were impacted by the dollar. first of all, we're going to start with dupont. the company is buying back $4 billion worth of its stocks, and it's being overshadowed by the company expecting earnings being cut by 60 cents a share for 2015. united technologies reported after the bell yesterday. taking down its 2015 outlook for the second time in a month because of the stronger dollar.

its stock off 7%. the company that's impacting the dow, the s&p, and the nasdaq today, of course, is microsoft, and a whole host of issues hitting the software giant. we saw a slowing growth in commercial sales for the company. we also saw slowing forecasts for its cloud revenue. those are two of the factors behind its drop today. it is off the lows of the session. rain we're off 287 points. a hair better than we were a little while ago. sue, back to you. >> thank you so much. on the nasdaq, the biggest lose esh in terms of percentage terms and bertha coombs is there. she's following the biggest movers for us. >> of course the big reason why it is microsoft, which is not so much a case of the strong dollar ate my profits, but really of

great expectations not being met. there were some indication that is things are turning around like handsets they sold ten million phones, there's still a lot of issues that they are trying to turn that big stock around. today it is having one of its worst days in a couple of years. not only that it is trading on three times volume. it's a really negative sentiment here on microsoft even as it's slightly off of its lows. teeing up negative sentiment for apple this afternoon. there are a few stocks though that are bucking the trend. starbucks, i guess it's cold. people expect you're going to drink more coffee. it is trading at a historic high today, and what i call the couch potato trade. netflix rising to the top of the nasdaq 100. a lot of folks homestreaming today. >> indeed we do. let's if to dominik chu for a quick market flash. >> we're watching shares of safeway moving up to the session highs. the ftc is clearing its way for

a merger with privately held albertson's after the companies agreed to sell 168 stores in eight different states to win that approval, so those shares again, at least they get apparently ftc approval for their merger. back to you. >> dom, thank you very much. >> shares of the dow constituent pfizer steady in this sell-off. as you see right there, there it is wafkly flat. the drug giant beating earnings estimates. issuing a down beat set of guidance for the new year. partly because of the strong dollar. it's a recurring theme here. pfizer ceo cnbc reporter meg about the outlook. what did he tell you? >> we talked a lot about business development. that's one of the main things with pfizer. he is looking for assets. they're not in the marketplace. we're not looking to buy phase one and phase two. you want things to provide a more immediate return on capital.

>> we also talked about taxes. they of course look to buyas are a zen ka to move overseas. they always talk about the unfair fax rate. they are advocating for tax reform saying the u.s. pays ten points lower. tax reform is a big issue for pfizer. now, of course, as you mentioned, the earnings beat that did lift their stock earlier today. not justifieser blaming the strong dollar. lots of company there. caterpillar, dupont p & g pointing to the stronger greenback for disappointing earnings. the dollar index up 4% just this year so far, and 17% over the past one year. sarah eisen at the new york stock exchange with although fall-out. hi, sarah. >> hi tyler. this is the excuse du jour. if you have business outside the united states, that's strong dollar is hurting your profits. proctor & gamble ceo said that quarter was "a challenging one.

>> outside move lowers. a good chunk of p & g's businesses are in emerging markets and developed economies. that is a direct hit on their sales. as far as the plunge in the euro that we've all been following, roughly 15% of earnings in the s&p 500 come from europe. that hurts. it also clouds companies' guidance. the dollar expected to get even stronger through this year on a better u.s. economy and potentially higher interest rates in this country. here's microsoft, cfo warning that should the u.s. dollar strengthen beyond these assumptions as it did this quarter, we would see additional negative impact to earnings revenue, and our balance sheet. the big question that everybody

is asking, don't they hedge their overseas exposures? the answer is yes. corporates are active, in foreign he exchange but those currency hedges do not protect them from these large and somewhat surprising moves. this one has been as far as the dollar against nearly every single other currency according to historical standards. down the road the dollar's climb should help a bit. for instance, p & g does a lot of its manufacturing in germany. the costs come down when it comes to input costs, but probably won't upset the negative hit which they're seeing from selling a broad png. one of the names feeling it very acutely right now. back to you, guys. >> sarah, thank you. sflirchlg the strong dollar putting pressure on the fed to not raise interest rates maybe as fast as they might have otherwise. joining us is a guy who said for a long time here that he doesn't think the fed is going to do it this year at all. ron insana cnbc contributor, market intelligence at market

buy.com. >> rule of thumb, every 10% increase in the value of the dollar is equal to a 50 basis point tightening from the fed. it's 17%. you are talking about a 75 basis point tightening under normal circumstances with this increase in the dollar. it tends to slow down.

as we're seeing already -- >> because our exports cost more overseas. >> absolutely. >> which means we sell less and bring back fewer dollars than we -- >> yes, absolutely. >> why do you think they will wait until next year to move on interest rates? what are the other factors? the strong dollar is indeed a de facto tightening, but, you know if you look at all the oil companies that are starting to cut jobs, that's going to in fact affect employment which is a metric they watch closely as well. >> there have been varying analysis that have come out about just how much fracturing employment once the layoffs start in that area. >> i was on that e-mail too the other day. >> it went on for two days. >> there's a wide variety as to how much oil employment or energy xmt has accounted for job growth in the united states. if it's as significant as some say, then we don't have as strong of an outlook for employment as we might have. you also have along with that then the global problems that have been throughout the program so far. it's not just the dollar strengthening. it's the rest of the world is weakening.

the inflation target and so will almost every other developed country in the world. it's a reason to be patient and -- >> the fed is worried about deflation. the national football league is worried about deflation. >> absolutely. as am i. i have the number for quite some time. although i didn't bring it to foxboro. >> let's go to dominik chu for a market flash. >> we're watching for shares. the stock is spiking on reports that the company has contacted potential buyers for the data software company. it's working with investment bankers at catalyst partners. that's the investment bank from silicon valley banker. it had a value of $4.5 million. those shares up 3.5% as a result of those stories.

>> welcome, guys. nice to have you here. how worried are you about the impact of the dollar on earnings because so far it has not been a very good earnings season, and the dollar is one of the main culprits. >> yeah, it's interesting. right now the earnings season has been hit by strong dollar which we're seeing today pretty dramatically, and also a drop in oil prices which we've seen in the energy companies, but that's something that longer term is going for help our structure of the u.s. in terms of lower input costs and while people are looking at the dollar one of the things driving it is the strengthening economy, and that should help us as we go into the year. >> you might be energy sector who also like big financials, and health care. >> if you told people a year ago or nine months ago that the -- they would have had a different supply-demand dynamic. globle demand is not dropping. we're not going to see a huge dropoff in global demand.

the saudis when they get together with the other members of opec they want a cut in the u.s. and we'll see a cut in the u.s. production, and then they can really move the dial when they do their own cut. >> jerry, weigh in on the earnings front. i know one of the stocks that you like is apple, and we're going to see earnings from them this afternoon. what are your expectations for the season wroefr all? it's been a little rocky. >> we get to core earnings, and even p & g made this point. they're doing just fine. the issue is the valuation of the business that is have been driven by return of capital to investors rather than return on capital. >> with so many dollars, their capital situation deteriorates, and they have to flow that through the balance sheet, and the income statement is going to affect earnings. not on an operating level per

se but the companies like p & g, like microsoft, and these big multi-nationals have this head wind now, and we're quite frankly surprised that it's taken this long with the activity and the currency markets for these stocks to finally wake up to this concept. >> you know tom, a lot of people about six months or so ago really thought that perhaps germany or developed europe opposed an opportunity for people. they thought that the worst was behind them. now it doesn't team that way at all. especially with the electrics in greece. europe does not look like a good place to be. does that by default make the u.s. the best bet globally? >> it's interesting. if you just want to go risk on and take risk maybe europe is the place to be. i think the challenge there what they're doing with their quantity takive easing makes sense, but they only have half the formula. you know they have 17 18 different monetary policies -- fiscal policies trying to do that with one monetary is a tough thing to juggle. the u.s. is still where you see

some growth. >> all right, tom, jaefr, thank you very much. appreciate it. you can find out what else jerry is bullish on by going to power lunch.cnbc.com and check out what he thinks is in the early stages of recovery. once again, that's power lunch.cnbc.com. ty. >> hey sue, you know new england especially massachusetts, getting very hard hit by this major east coast storm. the forecast up there remains for two feet at a minimum of snow. the new york city area basically missed the worst of the blizzard. it was out east. snow totals so far less than predicted. maybe half of what had been expected. that prompted an apology from the national weather service's mount holly, new jersey office. meteorologist gary satowski tweeting "my deepest apologies to many key decision makers and so many members of the general public. you made a lot of tough decisions expecting us to get it right, and we didn't. once again, i'm sorry."

the weather man apologieses. still, big problems at the airports. live at beautiful la guardia at new york city, kate. >> beautiful la guardia. that's right, tyler. i have some big news here actually. we just talked with a passenger who got her boarding pass printed out here after being here for 24 hours. she's heading on a spirit airlines flight. reportedly leaving out of la guardia at 2:45. the plane is reportedly on its way here and the ticket kiosks that were off all morning long just came back on. that being said it was essentially a ghost down all morning long. the tsa security gates were closed. as i said, the ticket kiosks were off. the arrival and departure boards a sea of red here. a lot of the airline carriers, they had signs up saying they were not going to be there today. that they would resume service tomorrow. united airlines was the only ticket booth here that actually

had people working behind it. even hoe they had been here some for more than 24 hours, had he seem to be in good spirits. they're saying la guardia airport is treating them pretty well. they've got water. they've got cots. they've even got toothbrushes. sue, back over to you. >> the last one on the list would be really important to me. thanks, kate very much. appreciate it. kate rogers. the fed kicking off a two-day meeting, so how much will europe's historic stimulus program affect the fed's decision to begin raising rates? plus, greek voters get an unlikely hero. michelle caruso-cabrera is live in athens with that. >> on friday we interviewed greece's former tax collector? i thought he was crazy. this is a country full of people who hate paying taxes. why on earth would they elect the tax collector? well, guess what he got in. he is going to join us live next

and tell us what his next priority is when he is in parliament. power lunch will be right back live from athens, greece.

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lockheed expects growth again in 2016, so also projecting a huge half billion dollar jump in inorganic revenue growth this year, meaning acquisitions. lockheed trading office woes. by the way, tyler, the f-35 jet fighter is now 17% of all lockheed's revenues "and will continue to grow." back to you. >> that's a lot riding on one plane. the fed kicking off a two-day meeting on interest rates. europe remains a major concern for the u.s. recovery, of course. the question is how much will the european central bank's historic stimulus plan announced last week affect the fed's decision to begin raising interest rates? we were just talking about it with ron insana. steve liesman here with the results exclusive of our fed. >> we went into the field directly after that surprise ecb announcement last week and so the first question we put to our respondents was was the ecb qe enough more aggressive, less

aggressive, or as expected? nearly 70% thought it was more aggressive than what they had expected. just one-third thought it was in line. what about the effective heness? you can see in the next chart here, 69% thinks it is higher. 94% think it's higher european stocks. we ask relative to the current level when they answered the question, so higher from there. 66% think it boosts growth. 62% think it means higher inflation. this group did say it will be about three years until the ecb reached its 2% inflation target. what about the risk from europe? you can see pretty much the same of where it was, and that's down from where it was in october 2014. we asked on a scale of one to ten this measuring right in the middle of five. let's go back and look now at the fed timeline. what you'll see in this next chart here is that they think the word patient comes out of the statement in march. that will give the fed flexibility to raise rates. what you see compared to the prior statement, the prior rate

hike was in july and now as we pushed ahead on average to september. push that ahead to april 2016. one more thing we measured tyler. you're going to be able to get a shot here. what will the fed finally get down. treat 1% on fed. yeah -- >> which is now what? sfwler to a water. >> zero to a quarter. >> 12 basis points. >> that's a fairly steep rise. it's a long way off. >> walk with me. >> okay. >> march 2015. let's go back this way. all the way to the first quarter of 2018. it's a long --

>> anonymous phone managers strategists, analysts. exclusive. think about half of them. >> steve, thank you. sue. >> overseas now, guys. he was the most unpopular man in greece. not anymore. voters there are making him a rather unlikely hero. our chief international correspondent michelle carusa-cabrera is in athens with him. over to you. >> hey thank you. yes, the former chief tax collector of greece, harry theo harris joins us live. we had you on friday. i thought you would never get elected to parliament. i thought you were crazy, but you did. what is the former chief tax collector do now as a member of parliament? what's your first order of business? >> the first order of business is to split the different areas, the parliamentary areas of policy among ourselves in parliamentary groups. we'll decide who is going to get what. >> for the last several months greeks have not been paying

their taxes. even above and beyond what we always talk about greece because of the reez to power. they promised they were going to raise taxes, and so people dent pay because why would i until these guys get into power? revenues are down. what if anything can you do to stablize that at this point? >> are you going to pay a role in that? >> i haven't been asked yet, but if they need my advice i'm certainly going to offer it yes. >> what about the issues of political interference in the tax office? one of the reasons you left your position much earlier than expected, do you think that's going to continue under this new administration? >> well, i'm hoping it's not.

i'm hoping it will. why are greeks so famous for not paying their taxes? >> there are many many greeks and experts tell us that compliance rates are higher in greece. there is a minority big minority, that's not paying their taxes, and we need to tackle those. it's a case of not being effective at enforcing, and obviously when this happens, always people take advantage. mr. theoharis. you have to be sworn in but congratulation on the next step in life. >> thank you. >> thank you. >> former chief tax collector of greece, and now a future member of parliament. guys back to you. >> thank you very much militia. bond king jeff saying that he is getting more bullish on goal gold adding to his positions recently. more on that coming up. and prices in the gold market are closing any moment. the gold stocks soaring in this big stock market sell-off today. we'll take you to the gold pits for the close in just a couple of seconds.

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gold prices are closing right now, and a bit earlier bond king jeff speaking with bob pasapi says he is bullish on gold and increased his position in that metal, and bob will have more on that big interview in a couple of seconds.

gold market as you can see is up $11 on the day. very tough day, once again, for the copper market that slid to a new five and a half year low earlier in the session. right now it's down almost 4%. silver is up on the day. platinum is up. just a fractional loss in the paladium market. let's heck in on interest rates. rick santelli is tracking action at the cme. >> hi sue. s sometimes there's equitable, symmetrical moves, and sometimes there aren't. today is the latter. if you look at a two-day chart, there are a couple of things. we can't seem to get a couple of bases lower and testing significant technical levels. if you look at a two-day of 30 similar. also, keep in mind for a while we did not reach that 236 level, which is super important for 30 year. why? open the chart up year-to-date. you can see it was the mid-january low closing yield ever. at least ever in normal times. first world war ii. if you look at a two-day versus

euro versus dollar wow. you talk about a market that's jam packed with shorts. look at how quickly it can change. coming short euros. back to you, tyler. >> actually ricky, i'll take it. we're going to check in on the oil market and see how it's steadying out a bit today. let's take a look at brent crude. ice brent crude is up 2% and change. west texas intermediate is up almost 2% even. on the trading session. since peaking in june oil prices dropping about 55%. meanwhile, according to triple-a, u.s. average gas prices end aing record streak by increasing overnight. first time we've seen that since september 25th.

>> president and ceo of securing america's future energy it's known as safe. robbie, welcome. good to have you back with us. this prize goes to individuals who submit proposals for making more efficient engines or replacing fossil fuel engines across the board. how much do people win if they win? >> powered by the intertech group. we're looking to give away $175,000 to three technologies that we believe will reduce america's oil dependence which is so important to our economic national security. i just remind people that 92% of our transportation sector is powered by oil and there's zero choice of other fuels. every major recession has been proceeded by an oil price hike. that's why it's so important to find these technologies and get

them out there. what did learn in the first year? what were the winning inventions or proposals? >> so the winning invention was on fuel efficiency. it was an injector that made our engines much more efficient. what we're really excited about this year is the great partners we have. the intertech group, which is doing it in honor of their founder, jerry zucker that tragically died of cancer in 2008. here's a man who was an inventor and entrepreneur a businessman who had over 300 patents and really believed that, one, that tk technology could really help america and help the world. you had to get it out of the lab. how do we get the new technologies out of the lab to help our country? then great partners like cnbc i'm here and i think hopefully we and the applicants will be on for the next several months and clemson university. i think we learned that having a good partnership takes a village to get this done. >> do you feel at all in light of the fact that america now

produces a tremendous amount of oil and a lot of its own oil that we are less dependent on foreign sources to begin with. you know do you feel like you're doing this a little later than ideally you would have? >> you know i really think we should be asking those producers who are now making decisions to cut the red count, though which is down 15%. the truth is that we're dependent on oil for 92% of our trpg sector. there's zero choice for our consumers. when oil prices go up or down based on an unfair and unfree market which decisions are made in vienna, really there's no certainty. the real danger for the united states is volatility. people can't plan when prices can be -- can go down 59 percent over the last few months. what we really need to do is get this volatility out of our transportation sector by having fuel choice having different fuels. we should be listening to the t. boone pickens when they talk about natural gas or elan musk

or fred smith who understands why a mobile global economy requires fuels that we can depend on. >> all right rob where i. thank you very much. i'm sure we'll be checking in with you or some of the applicants in the competition. if you would like to compete for the -- we'll be checking in on a monthly basis to see how the submissions are coming. to enter here's where you go. go to secure energy.org/prize. that's secure energy.org/prize. you got to get your submission in a little before you get your tax return filed. april 10th. we'll be there when the winners are announced later this year. once again, thank you very much. meanwhile, julia now for a market flash. west coast style. >> teall, netflix shares moving higher on the heels of some sag awards this weekend, and it's benefitting from storm-bound subscribers streaming. several larger new england markets saw a 15% increase in netflix streaming and fixed broadband lines.

these increases do not include mobile streaming or the new york market, which is obviously a big one. tyler, back to you. take a look at those netflix shares moving higher. >> thanks very much, julia. >> stock, the s&p 500. stocks selling off. not as badly as earlier today. earnings, durable goods data disappointing the street. take a look at the s&p 500 sectors. only one utilities and man, they have been a nice place to be over the past year. only one of them in the green on this tuesday.

welcome back to power lunch. headset makers posting waeshg than expected profits. its profits and sales forecast also fell below wall street estimates. you can see the shares down by 12%. sue, back to you. >> thanks stone. let's head to the nasdaq where bertha coombs updates us. >> certainly a big cap story today. microsoft's disappointing outlook. apple nervousness ahead of its earnings report this afternoon. that's what has got the blue chips and the big caps here at

the nasdaq performing worse than the small caps. it's interesting. some of the small cap names like rambus today outperforming. they beat on the earnings pretty good outlook. also with the bounce back and the likes of carusa. that's a shale producer. saying that it is starting to cut costs. able to bring in oil at a lower price. >> thank you. let's get an update from mary thompson. >> the bad news is we're down 230 points on the dow. the good news is it we're 160 points above our session lows today. of course, let's take a look at the sector that is are leading the markets lower. it stocks because of weakness in microsoft's earnings. industrials because caterpillar

issued a very poor forecast. also reported weaker than expected fourth quarter results, and material stocks. take a look at freeport macmoran. the copper miner is the leading decliner among the s&p. material stocks. the reason being, the company reported weaker than expected earnings. the company is also cutting its capital expenditures for the year. to the plus side though within the materials group we are seeing strength in steel stocks. both ak steel and nucor reporting better numbers. nucor also getting a boost from strength in the construction industry in the prior quarter. we want to end up with the coal miners because we had peabody energy coming in with a wider than expected loss. it's slashing its dividend and also lowering its outlook for u.s. demand. arch cote coal down. as well as the other coal miner. the dow up 230 points. sue, back to you. >> all right mary.

thank you very much. think do not have strong dollar exposure. have not been performing well. can the market continue to move higher if you don't have earnings? >> well, i think -- no i think -- and i think we're seeing that, right? the market is very disappointing. what i think is very interesting this earnings season versus prior is remember we always have the story at the beginning of every earnings season about how they've already taken the numbers down and now they're going to -- the market is going to go higher. we're going to get 80% of the companies that report bp estimates, and everything will be rosy. this time it doesn't appear like that's happening. right? we've got more misses than not. we've talked about that. you know that. if you are investing in those companies that have a lot of dollar exposure then you understand that. that shouldn't be so much of a surprise. i think the guidance and some of the worry about the forward

guidance is really what's spooking the market even more. >> how does it feel on the floor? what's close going to look like do you think? >> you know it feels a little bit less ominous than it did an hour ago, right because we've rallied back 150, 160 points, but it's quiet data. not a lot of volume. i don't feel like there's a direction yet. i can't tell whether or not they're going to get weaker into the bell. my sense is they're probably not going to get any -- i don't think they're going to get much stronger. i think we're going to end about here. it feels like this is a spot it wants to kind of try to build. >> we'll see. thanks. appreciate it. ty, over to you. >> all right, sue. the variety of exchange traded funds virtually endless, but there aren't many that are actively managed. power lunch is going to go inside the world of etf's with one new fund that bond titan jeff gundlock has a hand on. the markets through the prism of etf's. welcome back to showdown! i'm jerry rice here discussing the upcoming big race between the tortoise and the hare. jerry, the hare always brags about

his speed. fine, but he crossed the line when he told... hey, turtle neck. want a head start, how about a week. yeah, my performance does the talking, ok. jerry, thanks for having me, i have film to study. hey, how about you rice cake wanna race? you don't want none of this.

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>> i think the logic is that i don't like having no tools. when and if the economy rolls over, if you are at zero at that time, you're in a very bad situation. that means that raising interest rates would be a negative for the economy. >> and that was double lions jeff gundlact on the fed. that's not really the reason why he went south for the etf srchs. bob is in hollywood, florida, with more on that. bob. >> hello, sue. believe it or not, jeff famous hedge fund manager, came here and gave a major address on the state of the world for 2015 but more importantly, he is going to be starting an exchange traded fund of his own. why? he has talked to the guy that's starting it with him. jim ross runs state street and that controls the spider the biggest etf in the world. what is going here? jeff wants to fwet into the etf business. why is that? >> you know a couple of different reasons. one is the etf business has been

growing fast. it's a great place for clients to use -- clients like to use etf's. they're a great tool for clients to use to broaden their diversified portfolios and, you know, jeff has interest to get into this business. being able to pull that off together. >> you have to admit active management has -- it's sort of the last area that etf's haven't conquered yet. there's only one out there. the bomd, and that's the pimco total return fund. that's been a reasonably successful active management etf. nobody else has done it. you think the time is now for active management? is that the argument? >> i think in certain segments of the -- remember i come from a broad etf primarily, but we do have an active etf. i think in the -- where you can be fully transparent and you need a significant amount of skill to deliver, and i think in certain segments of the marketplace, active retail will

be really successful and is going to have a demand from the broad client base that's currently using etf's. so is this the start of a trend. do you think other big famous money managers mutual fund managers famous money managers in general, mario gavelli, for example, anybody like that suddenly is going to start announcing their interest in an etf since forming their own? >> i think they're all looking -- i think they're all looking at the market. the market has tremendous growth over the last five wreerz and ten years. i think all the money managers are looking at saying is there a way i can participate in this? there's some challenges. when you think about transparency and what that might mean for an equity manager, but there's also a significant opportunity. etf's brought $2 million. >> how many jeff gundlach's are there? lower costs and indexing works.

i firmly believe in indexing and i'm here talking to you about a partnership with double line investments. i think there's certain areas where if you bring skill and i think jeffrey and his team has that. you can bring that and blend it but understand while etf's are primarily passive, the users of etf, use them in very active ways. they're tactical and they use them to build portfolios. to me it's really about the asset allocation. >> jim ross thanks very much. state street. i can tell i talked to jeff for a while about this etf business and the implication that i got from all this is that's where the money is. that's where i'm interested in it and managing two and 20 or a hedge fund for a few thousand people, why not consider taking 90 bates points or something like that and managing for a few million people and i think that's the idea a lot of these famous money managers are looking at right now. costs are going down. technology is improving the

business. hey, we can get into this business with millions of potential people. even if the fees are a lot smaller. sue. >> all right. thank you very much. very good points. >> let's if over to dominik for market flash. >> one stock that's bucking today's downward trend is comscope that's up big. about 17%. the "wall street journal" here is reporting it's close to buying te connectivity network equipped unit for $3 billion. as for te connectivity shares they are up, again, by about 2% as well on the day. tyler, back to you. >> thank you very much. the stock selloff continues. as you see right there. still ahead, the big headlines you may have missed in this hour of power. we've got that and more right after this.

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>> sfox tumbling on disappointing eshgsz. the dow, s&p, and nasdaq off about 1% or so. plantronics shares posting weaker than expected q3 numbers. futures will also be lower. netflix shares up more than 1% after getting a boost from storm bound subscribers. if you missed any of the big

stories in the past hour go to visit our website at powerlunch.cnbc.com. that's a good picture of us isn't it? don't we look handsome on there. >> i'll stand dangerously close to you. fox con announcing job cuts just hours before the tech giant is set to report earnings. josh lipton with details live at apple headquarters in cupertino. hi josh. >> how many phones did apple ship in the december quarter, and what's coming up next? first, a preview of what to expect on "street signs." >> all right, swrosh. thank you very much. coming up, obviously we're going to be all over this market selloff. plus, we're going to name names of the one sector that a stronger dollar should help. plus the ceo of domino's pizza will sxwroin us exclusively. power lunch will return though right after this break. i'll see you in just a couple of minutes.

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>> a lot to talk about from iphone sales to apple supplier fox con cutting its work force. josh lipton live at huhhed

headquarters with what investors can expect. hi josh. >> well tyler, how many i phones did apple ship? that's what investors want to know. now, analysts rbc telling their clients they think apple shipped 64 million i phones in that december quarter. that would imply tyler i a 25% year-over-year jump but what about the next quarter? well, the team at rbc says you'll see a deceleration in shipments from 64 million to 54 million. that would mean a 20% drop. . >> the deceleration is not a reflection factor. you get seasonal patterns that kick into the march quarter. the fact that supply side has come up more in line with demand. it will also have impact. the initial watch of iphone demand after the launch is behind you. if you saw a 60% drop if that's

true, apple bulls point to a number of near-term -- they say it pushes the stock higher. apple historically updates its capital return program in the spring. and we expect to see some news on a new product such as apple. of course investors have to think about after that strong move in the stock. is the stock attractively valued at these levels or are a lot of those near-term catalysts already priced in? guys, back to you. >> well we'll find out this afternoon. see what the market does when the company reports its earnings for the latest quarter. we were down close to 400 points. now look at dow jones industrial average down about 252 points on the trading session. the s&p is down 21. the nasdaq composite basically almost tied for a percentage loss with the dow. down almost 67 points. interest rates have been going down in today's trading session. the ten-year note the yield is 1.797%. the dollar index a little bit of

profit taking today. west texas and ice brent crude tied both showing significant percentage gains. >> for the first time in a long time actually, gasoline prices moved a little higher overnight. that's it for this decision was "power lunch." >> street signs starts right now. stocks slammed as investors shrug off the snow and focus instead on earnings. hello, everybody. welcome to "street signs." mandy is on assignment today, and another huge day today. apple and caterpillar bringing down the dow. we're down about 250 points but below the day was 17,288. we're about 140 points off that low. still, no consolation especially for microsoft investors. that stock is on pace for its worst day in a year and a half. you do have gold rallying though, up over $13 per ounce. let's get to it and get around the horn and hit everything thaw