today. both etfs that follow that space. final trades. doc? >> other than caterpillar lately, take a look at tractor supply. serves many of the same markets. >> winnebago. >> jp morgan. take advantage under 90. >> staying with wynn resorts. >> thank you. good stuff. "power lunch" starts right now. i'm melissa lee. on the menu, stocks sliding this hour. is the teflon trump rally starting to get a little sticky here? lots of big money advice coming your way. banks under serious pressure right now. 4% drop in the kre. etf. we'll go inside that sell-off straight ahead. and unplugged, new electronics ban going into effect on certain international flights. what you need to know about the big changes. a busy two hours of "power lunch" starts right now.

>> all three major indexes taking a big hit. first intra-day drop of more than 1% for the s&p 500 in 64 days. that happened earlier today. that kind of call market has not gone back happening to all the way back to the 1960s. nasdaq, intra-day high at the open. it has now pulled back also more than 1%. melissa said it, financials feeling the most pain. beyond yields moving as well. small caps are have thing the russell of all. russell 2000 down the most of all the major indexes. tyler? i'm tyler mathisen. second day of confirmation hearings under way for president trump's supreme court pick, neil gorsuch. preet bharara will join nyu law as a distinguished scholar in residence, he was fired as the u.s. attorney for the southern district of manhattan earlier this month. and days of heavy rains triggering the worst flooding

peru has seen in decades. look at that amazing video. a man washed away, as tries to drive cross, ill advisedly, obviously, a flooded road. more than 70 flood-related deaths in peru. thousands of others have been forced to flee their homes. very dramatic video there, tyler. busy two hours ahead. we'll kick it off with our first real down day for stocks in more than two months. the question is this. is the d.c. drama behind the move? it might be. here is why we say that. intra-day chart on the dow jones industrial average. new intra-day highs for the nasdaq were hit. but right around here, 9:45, 10:00, we started to see the market get weak. that, my friends, the same time that house speaker paul ryan made some new comments about the fate of the health care bill. so let's begin there.

cnbc's kayla tausche is on capitol hill. >> reporter: seeking to close the highest profile deal of his career. and one that could threaten the rest of his financial agenda. to sell the deal, he is returning to a familiar tactic, lobbying threats. this time at house freedom caucus chair mark meadows and obliquely republicans in general. ap is reporting that senate majority leader mitch mcconnell is echoing some of those threats, if republicans threaten this obamacare repeal and replace then it will be very difficult to get anything done going forward and to work together. but meadows, it appears, isn't budging. his spokesperson telling cnbc his vote is still a no and that he does believe that the president is the right person to try to close the deal. they hope they can get there, but that the congressman, at this moment, does not believe that the ahca has the votes to pass. he also told the washington post i've had no indication that any of my freedom caucus colleagues have switched their votes. now earlier this morning, the

speaker did say that he does believe there will be some turnover in that group and that if they did not, then the bill would be jeopardized. take a listen. >> the president helped negotiate these changes, sent it over to the senate. and the senate, without jeopardizing the bill, can make improvements to the bill. if we do it here, we will jeopardize the entire bill. >> democrats, for their part, guys, are unified against this bill. that highlights one major risk to this market. the trump rally, in part, was predicated on legislative ease, that not only was the white house agenda one that was pro business, but it was one that was assumed to get enacted relatively easily because of republican control. if there continues to be this in-fighting within the republican party, how hard will it be to get anything done on capitol hill? guys? >> kayla tausche, thank you. bob, when you pick apart what is driving the move lower today, it's the trump trades, banks, infrastructure plays, small

caps. >> trump train and a little continuation of what was done at the fmoc meeting. take a look. s&p 500, 20-point move. not just paul ryan's comments. the ten-year yield moves straight down until about 11:30. that's exactly how the markets reacted. i do think there is additional fallout from the fmoc meeting. heavy volume some of the etfs. transport, semi conductor on the third one there and the russell 2000 etf all very heavy volume today. moving the markets? it's two things, obviously. 2.6 on ten-year tre dollar weakening as well. anxiety over the trump agenda. a lot riding on that thursday vote. you heard kayla talking about that on repealing obamacare. down days are mostly related to the regional banks, getting hit

the most. they've been down the last several days as well. a bit of a trend developing. finally, one comment on the fundamentals. autos have been weak several days now here. there are reports out there, used car prices are declining. there's some softness in auto loans. noted the end of last week, s santander consumer reporting a small rise in auto loan delinquencies. 7, 8, 9%. back to you. >> thanks, bob. let talk more with scott rantz and phil rated. good afternoon, gentlemen. thanks for being with us. scott wren, why do you think financials are getting as hard as they are? why today particularly? >> there's a couple of reasons. one is that this legislative

agenda, which -- let's face it. there are going to be bumps in the road. i think there's two things going on with financials. one is the perception that the yield curve is going to flatten, not steepen. and if trump or the new administration has trouble with health care some of these other things that they want to do, which are regulatory in nature, they're going to have trouble with that as well. those two things today, at least for financials, that's the negative. >> as i peruse my notes which were probably collected from you yesterday or earlier today, there are lots of things you thought were actually stacking up pretty nicely for the market. dovish fed, netherlands vote, french vote, positive health care vote, you say. positive scotus gorsuch vote sets the table for positive trump fiscal vote and on deregulation. you want to amend that? >> no. we'll stand by our thinking.

the reality is that the s&p had a terrific rally. the fact we're down 2% to 3% in the last couple of weeks, flight to safety rally in the treasury market, given what's going on with the comments that ryan made in health care this morning, you know, to scott's point is not out of the realm of possibilities. if you take a step back and look at the bigger picture, health care is going to get through. tax reform is going to get through. the bigger picture is that this 2% to 3% correction should be an attractive buying option. >> no biggie basically. but i'm curious. why is it -- if things are stacking up as nicely as you suggest, why is there a flight to safety? >> you have concerns. the stock market up as much as it is and the bullish stock market that i envisioned isn't

going to -- gorsuch will not be approved, trump-o-nomics will not be passed. so why not shift some of that money into the bond market? >> since you're bullish, are you buying here? >> the short answer is yes. >> you are? what sectors? >> not at liberty to discuss that. >> okay. scott, you had envisioned the markets would peak mid year. is this just simply pushed forward, pulled forward, i should say? >> melissa, really, we look for that peak in the s&p for this year. we're not calling the end of the cycle. we thought we would see more of a fade in the second half. this is coming maybe a couple of months earlier than what we thought. we thought we could see 2400. i wouldn't say this rally is over. but the fundamentals, concerns in 2018 that we'll see more wage pressure, i think that is still intact and maybe some overall pressure and maybe overall

inflation pressure and a fed that may be behind the curve. as phil said we've had a good run here. you could go down 5% on nothing. this is just trading. this is not some complete rejection, many of which are pro-growth, many of which may be implemented to the right magnitude to help in 2018, 2019, 2020. this is taking. if we end this year flat to slightly higher, it's a stall year. you still want to be ready for the cycle to play out a little bit longer. >> gentlemen, thank you. >> thank you. >> scott wren and phil orlando. the sector getting hit the hardest right now, that would be the financials. bank of america down more than 5% right now. regional banks, kre down more than 4%. let's bring in charlie with

ariel investments. great to see you. >> thanks for having me. >> it almost feels like investors should decide at a point fairly soon whether or not they believe the rally we have seen in financials are due to improving financials, including a steepening yield curve or the policy of deregulation. >> be careful lumping all financials together. regional banks haven't just had a bad day. they've had a bad month and a half. regional banks peaked december 8th or 9th and since then have underperformed by 10, 11, 12%. why did that happen? they were overpriced. average regional bank got to 17, 18, sometimes 20 times earnings. regional banks have traditionally traded for 11, 12 times earnings. they just got too expensive. >> simple as that? it's not a coincidence that the yield curve basically has been flat since then?

>> right. but it became a crowded trade. everybody was looking at the same thing. interest rates are going to go up. the yield curve is going to steepen. regulatory environment is going to get better. tax rates are going to do down. we all think that. even i still think that. but it was too much invested, too much incorporated from the stock prices and they didn't have any room to go up. >> i love that line of thinking today, charles. not to throw water on our entire show, but we're sort of focused on this market decline. maybe we should be more focused that we haven't had a one-day decline and that hasn't happened in 50 years. did we deserve the run that we had? >> i think we did in general. i want to be careful in saying that. it's pretty banked in right now. lower tax rates, less regulation is good for business. and it's good for profits.

and earnings matter. i feel good about the economy. a little bit of inflation is probably good for stocks. we're absolutely seeing signs of a little more inflation. there's a lot to be happy about. don't get ahead of yourselves when it comes to region al bank. >> i bet you're a lot of fun at thanksgiving dinner. have fun but not too much. charlie, thank you. >> thank you. sully, dow transport stocks are turning negative, index off 7% from its recent highs as well. if you look at the ishares, iyt now down more than a percent in trading. nearly all the components are negative with the exception of a big one, fedex. laggards include avis budget, matsonparsed and dissected on fast money, hosted by an amazing

anchor. can d.c. still get things done? will constant in-fighting derail those hopes? and your market rally. we'll take a closer look ahead. first, the airline electronics ban that has everybody talking. many scratching their heads and maybe looking for different flights. you're not going to believe this story. stick around. we're up next. s created over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing ist about achieving average. it's about achieving goals. and insco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.

so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start witthat. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

>> welcome back to "power lunch." we want to check on markets. we are seeing a 1% loss on s&p 500, or close to it. nasdaq taking on the chin in most of the major three, down 1.3% and s&p 500, as i mentioned, is down by about 1% right now. financials, really the loss leader in terms of sectors. we are seeing the financials down by 2.6%. it's worth noting that small caps are feeling some pain as well today, down by two whole percentage point. >> a big story and an expanding one. larger electronic devices will be banned on certain inbound u.s. flights. that directive, coming from the department of homeland security today. and just in the past hour, here is how the story is broadening. reports that britain has announced that they will institute a similar ban. phil lebeau is live in chicago with the details. phil, tell me how this works. tell me how this makes us safer. >> well, according to the

department of homeland security, this is all about the flights coming from certain airports in the middle east, directly to the united states. and the concern is that terror groups are trying to smuggle explosives onboard, whether through laptops, ereaders, tablets. as a result, u.s.-bound flights from ten airport notice middle east impacting nine airlines. we'll talk about that in a little bit, about 50 flights a day into the u.s. people on those flights will be required to check their electronics. they won't be able to carry them on board. they can still bring their smart phones and medical devices on board. the airlines that are impacted. when you look at this list, some of you might be saying i'm not familiar with some of these airlines. there are others that carry a lot of americans, including emirates, etihad, qatar. all of these have direct flights into the united states. they're restricting their electronics per the rule change from the department of homeland security. that's the only way they'll be able to continue to fly into the

u.s. the travelers on those flights, again, must check their laptops, tablets, erea tablets tablets,ereaders. you'll notice no u.s. airlines are impacted by this change in the electronics that people can bring on board. that's because the big carriers in the u.s., all carriers in the u.s., none of them fly to these ten airports that have been designated by the department of homeland security. airline stocks are down today. i'm not really sure it's because of this electronics ban. that might also be because you have a broader selloff within the market. airline stocks have had a heck of a run over the last six months. >> phil, stick around. stay with us. we'll dive a little deeper into this. what it means for travelers, for airlines. joining us now on our news line, is former department of homeland security, michael chertoff. why do you think this ban was

enacted now? do you think it's because of a specific threat or piece of information? >> there may be a specific element involved but frankly i've been expecting something like this for a long time. last year there was an incident on an airliner coming out of somalia that had an explosion. it looks pretty clear that came from a lap top that had explosives within it. terrorists have been working to create devices that are smaller and smaller with the capability of bringing down an airliner. and i'm assuming that what finally happened was they got to the point there was sufficient incredible intelligence about their capability that the department decided at this point they have to put the ban on larger electronics in the cabin. >> fair enough. we all want to be safe. that's the primary concern. this is one of those stories that i don't need to tell you -- you've been through this a lot more -- if you criticize it, it's like you're being callous

against the threat of any terrorist action. that is not the point. our confusion, secretary, is if you have an iphone plus, it's almost the same size as a tablet. why are they making this differentiation, do you think over literally maybe a matter of an inch? >> you know, this is a balancing that you always have. we did the liquid ban back in 2006 after the plot to blow up airlines with liquid, we allowed three ounces on. some quibbled and said three ounces, why not allow four ounces? they have to look at generally the size of the device, make a judgment that over a certain size is too much of a risk. it also has to be a clear line. there are gray areas but from the standpoint of the passengers and the screeners you have to have a pretty clear rule. in this case they've made the judgment that devices over the size of a smart phone are probably too great a risk and that they're drawing the line there. but there is always a gray area in the middle.

>> two quick questions. one, is this more about the airports than it is about the airlines and the security at those individual places? number two, why is the electronic device, the laptop, safer in the belly of the plane than it is in the cabin of the plane? >> so let me try to answer both. i do think it is about the airports. the only reason we listed the airlines here is they fly directly into the united states. that becomes a concern of dhs. it's a combination of screening, whether the technology at the airport allows the airport screeners to find the explosives in a device. the second issue is screening a passenger in terms of intelligence. you know, do we know enough about passengers to recognize who might be high risk? and also recognize we're dealing with an area where there are a sufficient number of serious bombmakers in the region that you do have to worry about

bombmakers being able to fashion something that could fit in a device. i think that's why they picked the airports. >> michael, this is phil lebeau. why not just ban all electronics coming in on any flight from overseas into the u.s.? the theory that i'm seeing a lot of people advance today is, look, if i really want to target a u.s. airline, flying out of frankfurt, i'll go on a flight to frankfurt and smuggle the explosive on to that flight. is the security that much better in frankfurt, paris or some other airport in europe or is it just cumbersome to try to make this across the world? >> you know, i'm speculating a little bit here. i think the issue again -- it's always a balancing act. you do want to get the material risks. i would say if you get into frankfurt and you smuggle it in the belly of the plane, you're going to -- you'll have to leave the security area.

at that point you will be screened at frankfurt. that means whatever the technology is in germany, coupled with the fact that on that flight any information about a passenger that's high risk will be available to the authorities. so, again, the judgment is that the higher risk is if you fly directly from the region that's been named. but if you have to transfer and get out of the security and go through it again that's going to reduce the risk. >> question, mr. secretary. i'm not a bombmaker, obviously. neither are you, but if you have several phones broad on to a plane by several different people, who is to stop a terrorist from stringing those together to have that same critical mass as a laptop would? >> again, to use the example back when we did the liquid ban. we ran experiments on this. >> right. >> you could argue if you had a bunch of people who brought three ounces on, could you combine them together and make a big explosive. but as a practical matter it

would be difficult to do that in an airplane without people noticing it. again, recognizing that we don't want to go to the point of being too extreme in preventing people from bringing anything on a plane. the judgment is that operationally, the risk of combining small devices together and actually be able to have an effective explosive is significantly less than having a single device with enough explosives in it. >> michael chertoff, thank you very much. phil a big benefit to the airl stocks? a lot of business people aren't going to want to fly 13, 14rks 15 hours from dubai and jfk to be on a lap top. they may choose to take a shorter flight to a connecting airline on a u.s. carrier where they can use their device. >> but the flight time might actually be longer. >> it l you'll sacrifice your time but you have lap top and can work. retails are under pressure

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i'm a little blocked there so i can't see. utilities are up, defensive. consumer staples, defensive. real estate, i guess you would call that defensive, too, but an awful lot of those numbers are in the red and most especially financials down 2.5%. it is a new world for business leaders, obviously, under president trump. retailers, in particular, feeling uneasy. that border adjustment tax possibility looming large for many of them. courtney reagan spoke to several execs at the shoptalk conference in las vegas and joins us now. hi, court. >> hi, tyler. there's a lot of conversation here about ways to make shopping better and easier. i made sure to ask the ceo of kohl's, ebay and target. kohl's ceo said it would make his tax rate grow to 80%. >> the bigger issue to me,

frankly, is the impact on prices for customers. that's what drives demand. over time, i'm sure we'll figure ways to navigate through higher tax rates. it's a bad thing for our p & l for sure. >> ebay ceo says as an american ceo he wants president trump to succeed. there are a number of issues that concern him. >> immigration matters to us. trade matters to us. we're trying to separate out the politics of democrats and republicans, which isn't important to us, from the issues that are critically important to us. us and the rest of the tech industry have been vocal and we will be, about issues that directly impact our business. >> target ceo ryan cornell and i spoke on stage here at one of the keynote addresses and he reiterated what he told us, that his tax rate would swell to 75%

if a border adjustment tax were passed and prices for consumers would be noticeably higher. back to you. >> courtney reagan, thank you. time for street talk. stocks you need to know b speaking of retail, the retail sectors suisse downgrading the sector, from market weight to overweight. had been overweight given, quote, unquote, deep valuation and buy and sell side. now there's a new problem. credit suisse's earnings are falling to post financial crisis woes, showing no signs of stabilization. lows of '08 or '09 is more likely. >> that negative? >> yes. >> wow! on an entire sector. got nothing for that one. second stock, i'll try to keep up. drexel hamilton. recent revenue temporary and, quote, is at the

intersection of massive growth and internet content. unmatched with, get this, 230,000 servers. time to establish positions in akamai nearly 40% upside on akam. >> third stock here apple, bernstein, primary drivers better odds of low cost, repatriation and the coming iphone 8. of course, interestingly, this call is coming on a day when there's real questions about the ability of the trump administration to accomplish its agenda. more importantly tax reform. >> apple has more cash than anybody. stock number four, couldn't find a good small cap call today. kind of apologize. msi, jeffries upgrades it from a buy to a hold. they said a consensus estimates are simply too low and risks are overstated.

citron research, famous short in nsi say that the big risk is to police and fire department handset sales. motorola solutions main business is walkie talkies used by law enforcement. those risks are overstated jeffries says and public safety franchise is fine. their new target is 18% above the current stock set. holding up a little bit maybe because of that upgrade to them. washington's drama derailing wall street today? will it derail the president's agenda as well? we'll talk about it next. she can't become a guitar legend just by playing air guitar. the by's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customs make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition.

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hi, everybody. i'm sue herera. clouds of thick smoke over west mosul this morning. iraqi commanders say they're closing in on the old city 500 yards from a famous mosque where an isis leader announced the caliphate in iraq and syria.

tampa bay residents will be able to order costco groceries straight to their door through shipped, on dline delivery service. it plans to expand to 50 markets over the year. philadelphia investigators are looking for two men who stole $1 million worth of jewelry. surveillance footage capturing the two men entering the store through the ceiling. robbers caught a hole into a neighboring business to get in. starbucks adding more gluten free and vegan options, including its first gluten free breakfast sandwich. introducing a new gluten free friendly bagel. the gluten free market is expected to grow 12% by the year 2021. some people say starbucks is a bit late to that game. a lot of competition. melissa, back to you. >> thank you so much, sue herera. stocks are continuing to slide. s&p 500 couple of points off

session lows. 2350 is the level. 2340 or so is the session low. russell 2000, seen as the most sensitive to any tax reform, biggest beneficiary, that stock is down 2%. chipotle, that stock is rallying after data research form channel checks predicted first quarter sales, quote, unquote, will beat estimates. that stock is up 2% right now. president trump on capitol hill trying to close the deal on repealing obamacare, the president warning republicans they will lose seats in 2018 if the health bill fails. is the vote this thursday something that could derail the president's agenda? that is the cloud that is looming large in the sky over the market today. larry kudlow is here. what would reagan do? >> it's a great, important question. >> you gave it to me. that's why i'm asking it. >> reagan is a deal maker.

trump is a deal maker. the house has to learn to be a deal maker, okay? it's like the gop needs to practice bipartisanship with itself. and reagan had two expressions, if we agree 50% we're not friends or enemies. or give me half love now and the other half later. >> the culture of washington and the culture of the house is not that way anymore, is it? i don't know that we have a lot of people who say if i agree with you half the time, i'm your friend. >> there is an attitude of that. by the way, reagan got 75 democratic votes in the house, run by tip o'neal. that's how good a deal milwaukeer he was.

you're right. on the other hand, i think president trump is right. if they don't get this done, they're going to be hurt next year. key issue. i really if impressed with trump rolling up his sleeves, meeting with all these people in the roosevelt room, white house and gone up to the hill. he's not threatening them. he's just saying look -- >> he's working it. >> that's right. >> some people may say he's coming to the table a little bit late, that he had been lightly campaigning for health care but not a full-throated campaign from the beginning and that maybe you swoop in at the last minute, what do you expect here? >> i don't know. you sort of come in when it's hot, when the vote is approaching. he has been at it now, i think, a good ten days with all these meetings. i give him a lot of credit. this is the trump that gets things done. >> publicly, he has a great plan. it's going to be a great plan, better than what we have.

is that enough? >> yes. it's really good. they've got to sell this thing. i'll grant you that. look, getting rid of the mandates and rolling back the taxes -- by the way, the tax thing just loosened up. it's not going to be retroactive. >> to this year. hike, they take it out? >> yes, the tax hike will be removed, 3.8%. the other thing is, ryan is loosening up and making deals now. that's a good thing. before, he was a little too entrenched in my view. i thought his first draft was good. some amendments, i think, will be very good. it's a long process, by the way. i don't think they'll vote thursday ifght. >> reagan, give me a loaf now, i'll give you the other half. that's trust. >> republicans, though.

>> there's 535 women on capitol hill. we only hear from about 10 or 20 in both houses. do you believe, honestly, that sort of the fringe elements of congress, not of america or tee party or progressive far left, of congress are controlling too much? >> no. i don't know. i don't think so. let's take the freedom caucus. very good friends of mine. been on the air many times. they have a good point of view and they're staying with it. some of them can afford to do that because they come from very red districts. others have to be careful, john basso from upstate new york, a lot of moderates. the senate, by the way, let not forget, it gets through the house, you have to run through the senate. it's not going to be that easy to do, as mcconnell has already said this thing will take its -- >> but you said it. if we continue to segregate ourselves, you live among only rimg rich liberals on upper west

side or staunch conservatives in indiana, and all you're trying to do is please your constituency, if your constituency is super hard liners, nobody is ever going to give anything. >> i live around rich liberals on the upper east side. >> and you stand out, larry. >> you know, i hold my principle. but, no, you know, this is the normal give and take. it's not as big as you think. some improvements were necessary. let's not forget that. >> sure. >> for example, should medicaid have a work requirement? for that matter all the small entitlements particularly? yes, they should. we had that with bill clinton 20 years ago. i think some of these fellows are absolutely right. should the tax credits be more generous to the low end and the

quickly we can grease the wheels to get this done. maybe they'll vote on it thursday. maybe they'll have to wait. >> maybe they'll wait so there won't be a vote on thursday? >> that's right. if they don't have the votes -- >> they'll caucus around and if they don't have -- >> if the whips are reporting -- >> market reaction will be very interesting. if there's no vote. >> then you buy it back because it is going to pass. trust me on this it is going to pass. look, trump a need a w on this. >> he's all about the wins. >> ranch painting in texas, that doesn't help us. >> w. >> to the bond market. rick santelli, big move in the bond market today, rick. >> yeah. i still say it was the dollar index that didn't put the flag up today. and instead maybe a bit of a white flag actually. look at intra-day of tens. down a handful of basis points

year to date. clearly shows we are toying with a toppish formation. hyg, the baromter. it looked like it had a nice bounce going. it reversed. bund, different pattern. maybe they're just late to the party or maybe there's something below that with regard to something is going to change. maybe central banking in europe, mario dragi. maybe it's a harbinger of something we're not grasping. start this dollar index, between where we're at and november is that little bottom on the last day of january, right around 99.50. pay particularly close attention to that. the euro and dollar/yen, doing real well, as the euro. if you look at the pound it's also strengthening, but not along the same lines of those

other two currencies. sully, back to you. >> thank you, rick. we are down once again over 1% in the s&p 500. hit it earlier today. if we close below 1% on the s&p, it will be the first close down more than a percent for that index since october 11th. remember, folks, we went 64 days, a record without a 1% move in the s&p 500. we've xwot it today. the dow is down 201 points. a lot more on your markets when "power lunch" returns. ( ♪ ) it just feels ke anything is possible here in upstate new york. ( ♪ ) at corning, i test smartlass that goes all over the wld. but there's no place like home. there's always something different to do like skiing in the winter, jet skiing in the summer. we can do everything. new york state is filled with bright mis like samantha's.

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just reminder we are in the middle of the first 1% or more decline for the overall indexes in many, many months. in fact, you got to go all the way back to early october to see a decline of this magnitude. the dow is down 221 points, only a couple names really defensive-type stocks are higher today. over 400 of the s&p 500 are down. that index down 1% as well. the bond market making a pretty big move. move in the 10-year treasury move fallen down to 2.42%, nearly a 2% move there. the only thing up significantly is what you might expect, gold. the gold contract is up 1.1%. >> highest level since march 2nd. let's take a check on snack shares. something we haven't been able to say for snap's basic lifetime, doing better than the overall markets here. snap only down 0.1% versus the sell-off we're seeing in the nasdaq right now. for now on how snap has impacted

all the unicorns hoping to go public let's bring in dalton. great to have you with us. >> great to be here. thanks for having me. >> is snap viewed positively or negatively in the start-up world in terms of being the example, the hope for these unicorns? >> you know, i think snap is viewed positively. it's seen a little bit of an outsider. they're based in los angeles and so we don't see it exactly as a standard silicon valley company. the fact they were able to go public as well as they did with not a ton of revenue and still do as well, i think is a really good sign for start-ups? general. >> are you throwing some shade at snap? based in l.a. and not much revenue there. that's what it sounded like, dalton? >> you know. i red the s1. it's pretty good. usually we would want to see someone with more historical revenue and more of a rant before they go out. they went public a little earlier than you would normally see, but it makes sense given

all the competition from facebook. it was time for them to go out. now they have a lot of cash and are in good shape. >> if you were an adviser to snap in any way or an investor, you would have said not to go public yesterday? >> oh, no. i'm saying, they took the least worse decision in this case. they have a lot of competition from facebook. facebook is cloning every one of their features via instagram. they were able to go public and get the cash and now they're in a really good position to be in the battle with facebook on a feature by feature basis. so, you know, it was a tough choice, but i think it was the right one for them and it worked. >> this is brian sullivan. what is going on at uber and why do you think the valuation has not come down in the private markets given the scandal and executive turnover? >> yeah. it's been rough. the thing with uber is, you don't actually change the valuation until you raise additional financing. you see companies that run into problem never get written down

until the next round and so hypothetically speaking it could be that uber is written down. i think what's tricky with it is that if employee morale is low and stays low, that's a really big threat for all of the work that they need to do to make self-driving cars work. so there's a big -- too do you think the valuation -- >> a big task at hand. >> can i -- >> if they have to raise another round. >> depends if they need the money or not. >> they're lose 2g billi$2 bill year. >> they might need to raise more and do it on debt, might have to do it with strange terms so it keeps the same valuation but additional sweeteners the investors get. a lot of different financial engineering that might happen. >> great to see you. thank you. dalton caldwell. >> all right. coming up, ibm's ceo jenny rometty in her first interview since her meeting with president trump a few days ago. she joins us live here on "power lunch." that's straight ahead.

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all right. everybody, welcome to the second hour of "power lunch."

a busy day in the markets. along with melissa and brian i'm tyler mathisen. two hours until the closing bell and here is what we're watching and watching a lot. drama in d.c. hitting wall street just a bit. markets sliding on concerns about health. that health care bill. stocks suffering their biggest lots so far of 2017. down 202 points on the dow, better than a 1% slide for the s&p 500. almost that for the dow. we haven't seen those kinds of moves in months. well, the losses are right where we -- the biggest drop since before the election by the way if we end at these levels. financials getting hit hard. the xlf, financials etf having their worst day since last june. ibm ceo ginni rometty will join us her first interview since meeting with president trump.

trumpanom micks and her plan. >> a dive into today's top. the biggest design since october 11th. wild ride for the nasdaq hit record highs earlier in the session but now the biggest loser of the three major indices. check out the major movers height. insight, tractor supply, tesla weighing on the nasdaq 100. biogen leading the index, more on what is driving that stock higher in a moment. caterpillar, goldman sachs, jpmorgan and boeing leading the dow lower. small caps taking it on the chin. the russell 2,000 down 2% right now. >> bob pisani at the new york stock exchange. the d.c. drama is big, it is certainly an impactful thing but as a trards pointed out, allied financial, making concerning comments about loan delinquencies which he said spooked people as well. what are the traders saying? is it all d.c. or something else? >> no. you just brought up an important point. an aspect of this that relates to fundamental weakness. so there are three components

and thank you for bringing that up, brian. three components to why we are down today. let me list them for you. number one is continuing fallout from the fomc, the dovishness the dollar and the bond market, bond yields dropped on the fomc meeting and continue to drop. that's follow through. number two, anxiety over the trump agenda, lot riding on the thursday vote in the house of representatives, fueling obamacare. the third part which brian alluded to, fundamental and commentary in the autos, energy we're at lows for the year in oil here. that's a fundamental which is independently of the other two issues going on. we are seeing some heavy volume today we haven't seen in a long time. some of the etfs, the bank, the retail etf, the france ports, the -- the transports russell etf, all much, much heavier volume than we've seen in a long time and seeing 52-week lows. the border adjustment tax thing does not go away and you can see it in the retailers, 52-week lows, target, bed, bath & beyond, macy's, under armour,

auto lenders part, this is brian's reference here, ali making disappointing guidance for the year. one culprit, used car prices are declining a bit. that's an issue for them. gm and ford is down. i noted last week on friday, san tander consumer auto lender uptick in loan delinquencies for them. little bit of fundamental issues and you see the energy stocks, new lows, almost new lows for the year in oil. there we are, crude down and, of course, all your big high beta names, marathon, chesapeake, southwestern, down 3, 4% today. so a mix of issues there, guys, affecting the markets. >> it's a lot of stuff and health care, bob, down 0.8%. actually less than the rest of the market, so there definitely is other stuff going on. bob, thank you very much. the financials by far and away the worst performing sector today. it is down 2.7% as a group. but there's a lot more to talk about. dominic chu with that.

>> yeah. session lows right now, traders focusing on financials and for good reasons. check out the two bank related etfs and bob mentioned them, the spider bank etf and spider regional bank etf both having their worse day since the brexit lows in june 27th of last year and among the biggest decliners, you've got the big names, bank of america, wells fargo, jpmorgan, and pnc, bbt, suntrust, lagging the regionals on that side of things. one name looking for a bit of a bounce tomorrow, check out shares of bank of america. our data partners say since 2010 after bank of america stock closes down between 5 and 6% the following day it trades positively 71% of the time. average return about 1% or so. statistics very difficult in this environment but i should note out that kre, the regional bank etf trading almost 19 million shares on average it trades on a full day 7.5

million. >> xlf seeing double daily average volume. very heavy volume trading. thank you, dominic chu. more detail on the sell-off in the banks with jeffrey hart. great to have you with us. we have a lot of people saying the banks are selling off because they're simply overvalued. where do you stand on valuation of the banks? >> you know, i don't think they are overvalued. >> what's going on? >> banks have led the way up and i think any time you have a chart going way up to the right, that usually implies there's volatility ahead. some of the drivers of that, higher interest rates. that took a bit of a kick with the 10-year dropping below 30 day moving average. regulatory reform, that's going to take a while to show up. tax reform, that's going to be -- appears the second priority after health care. just the timing of that is weighing on them some. i don't think we're done here as far as where the banks are. i think we have had a sea change in washington. a good environment for banks. i also don't necessarily thing

you have to rush in today. it's going to be volatile. what we need to see is some hard economic numbers support, for instance. we like to see loan growth accelerate at the banks. the tone is that will happen. i would like to see that play out. and there's some hints at credit here or there but really, when we look across, whether it's auto, mortgage, credit card, commercial, credit indicators all look really good to me. >> sure. i want to ask you, though, on that credit because it sounds like you're setting a reality check on investors at this point when it comes to tax reform and dough regulation. when it comes to auto lending specifically, bob mentioned the allied financial presentation, just the latest in a string of data out of the used auto market and auto lending indicating there could be trouble ahead because used car prices are declining, usually new car prices follow and the yields, auto lease yields will not be as attractive. are there some banks that might see the most exposure from the lending in the auto sector and that is at all a concern popping up on your radar now? >> it certainly is something

that pops up and almost got bank by bank to see where they might have stuck their neck out too far on auto lending. i look at the big banks i cover i'm not too concerned. it they've been selective in the loans they've made. at the end of the day the thing that matters i think for auto loan credit quality if people have jobs. if they have jobs they need to get to their jobs. vast majority of americans drive to their jobs. as long as employment holds up we'll see some ebb and flow in auto credit but i don't think we're anything near what would be a significant turn in auto credit and even if we were, let's not forget auto loans are not the mortgage market. this is no means a look back at the financial crisis. >> jeff hart, thank you. it's not just the financials, retail also getting hit hard. the xrt down nearly 2% today. let's talk about that and more with brian bellski chief investment capitalist and also with us, cnbc contributor ron inson na. you get to go first because you

waited patiently all day yesterday, for a segment that never aired, because we had hearings and then we went to mr. spicer and so forth. you'll indulge us won't you? >> absolutely. >> you absolutely will. >> what was the dog whistle that went off overnight, brian? >> well, i think, tyler, the issue with the market is, whenever we have stocks and the primary investment strategy that is momentum by investors we will have days like these. for all intents and purposes, stocks in america have been fueled by confidence, not necessarily data, real hard data yet. when we start to see some negative headlines people are going to take their profits. so again, as brian pointed out on the prior block, this is the first 1 plus percent day since october 11th the actual date by the way, and we never like to see people lose money, let's be clear, but at the end of the day stocks are linear for long and

it's been healthy to see this type of a pullback. i call this the chicken little correction. now they have it. this is pretty healthy for the market. >> ron, weigh in here, is it as simple as -- not necessarily simple but, brian's point is nuance there. but that confidence began to wobble a little bit over the last week and maybe most especially yesterday, which was probably not a good day for the trump administration? >> it wasn't and aside from the comey hearings, there's also the risk that health care reform does not pass as planned and within that, and i think it's important to note, is the reduction in the capital gains sur tax which if health care reform package that is currently in front of congress does not pass, that capital gains sur tax of 3.8% remains in place. that's important to the stock market and i think that might be the thing that they're keying off of. also the sequencing of president trump's initiative and gop initiatives in congress if health care reform is delayed is called into question. those positives that people were

betting on, could be pushed off. >> you know, ron, can i -- i don't want to take away coverage from d.c. i understand it's important and a big deal and sort of thematic today but in addition to the allied financial comments, also need to remind our audience oil continues to slide. >> oil is below i think 200 day moving average. many oil stocks are down 10, 15% over the last 30 days. remember the last time oil took a big turn down, the markets were a little wobbly. i can't assign all of this to d.c. can you? >> absolutely not. oil is a still a supply story, fracking increasing at a pace faster than the last uptick in oil shell exploration in the united states. other things, s&p earnings being downgraded rather than upgraded with regard to expectations. weird things overseas. wroefr night lending rates in china spiked overnight. loan growth in india has fallen off a cliff. there are a lot of things to look at and i think d.c. first and foremost, both with respect to the comey hearings and policy

implications of health care being called into question, are overriding factors but there are other things going on inside the market. >> brian, where would you put money right now? let's not forget nasdaq set a record earlier today. >> no. i mean i think the bull market is very much alive. i think brian actually brought up an excellent point with respect to energy. you have to remember that commodities, emerging markets, anything non-u.s. is really the driving force with respect to investments the last 10 or 15 years. investors can't let it go. we've heard talk and answer a lot of questions about the quote/unquote reflation trade. going on around the world. i know china is up year to date but china still underperforming since the election. number two, oil prices are down, gold prices down year to date. we're not seeing inflation trade. i think there's way too much focus on energy where inventories are still high, that is not going to be the place to be. we still think the place to be quite frankly is north american stocks and days like these, afford a disciplined investor with better entry points to buy

their favorite names. >> gentlemen, thank you very much. brian bellski and ron inson na, thanks very much. biogen one stock bucking the downtrend but barely in the green right now. the ibb biotech etf on pace for its worst month. hi, meg. >> guys, we did see biogen up earlier in the day though moving some of the gains along with the broader biotech tape. biogen has won a patent decision. we used to talk about kyle bass and his coalition for affordable drugs, a strategy that bass was employing to try to challenge the patents under a lot of big drugs and often short those drugmakers. we haven't heard a lot about this in the last couple years but biogen just prevailed. this is around its multiple sclerosis drug, $4 billion a year drug. analysts said if they lost this they could have lost patent pro deck around 2020. this is an important decision

here. second recent decision for kyle bass. accorda also came out on top in a patent case here. that's why biogen is up today. they still will have another patent case to duke out with forward pharma pap people are still watching the ip. >> today's session looking at a broader market selling off the trump trades very hard. the trades that really were rising on the notion that donald trump was going to get through his agenda and last night at his rally in kentucky he said once health care reform is done and obamacare has been repealed it will be time to get to work on medicine, bringing down the costs of medicine by having a fair and competitive bidding process. you would think health care would rally if the thinking is the agenda can't get through and some sectors are selling off because of that health care, would actually do well. >> yeah. it's really interesting because these comments aren't new for trump about biotech. he talks about bidding a lot, saying he wants to get drug pricing somehow into health reform if not in the first iteration, we've been hearing

this. today you are see biotech sell off. folks are attributing it to the comments last night. the ibb according to our data team is on track for the worse day since january 11th when trump said pharma was getting away with murder. keeps being able to slam biotech even though who knows what's going to happen with drug pricing. >> meg, thank you. >> we haven't talked about infrastructure, ak steel and u.s. steel down 9% and 7%. so a lot of fear and we've talked about this before this should not be new for our audience we've talked about gop infighting for months. why am i doing this. >> fighting. >> because it hurts. on deck should you just buy it. what you need to know about nike earnings coming up. plus, what do logos on uniforms virtual reality and canada goose jackets have in common? your next guest, meet the man involved in all three ahead. plus, another huge cnbc interview ahead, ibm ceo and chairwoman ginni rometty will join us. some of the retail stocks also

feeling the pain, bed, bath & beyond, macy's, target, under armour all down. everything is down. we're back after this.

have a deal between two dow components, he said, but we have one today. ibm and at&t, linking up to bring ibm's watson to at&t's products. let's get right now to kelly evans live at the new york stock exchange with a special guest that is not a computer. kelly. >> thank you, brian.

that's right. i am now joined by ibm ceo ginni rometty live from their cloud conference in las vegas. if i may, thank you for being here. >> thank you, kelly. >> i want to begin before we get into all of the flurry of announcements lately, including the announcement about at&t today, to ask you a little bit about what's happening in these markets. you were just with the white house on friday. we know you're on the president's business advisory council and can give us a sense as the markets are so worried about whether trump's ayen da, which includes health care and tax reform has stalled and if so is there anything you think the president could be doing about that? >> well, certainly as part of the advisory board, i mean we've been very clear about things like tax reform and the importance of it. and i know when we think about tax reform some of the most important things are to modernize the tax system both from a rate perspective and a territorial system. so just being clear about what the most important things are to get done is an important role. but part of the other reason for

that meeting is, underneath all of these issues and when you speak about jobs, the underlying factor is the work force and work force development so kelly, i've spent a fair amount of time on that topic about how to develop the work force in the programs that we could really scale across this country because we've got 5.5 million opens jobs and half a million open tech jobs, so that's really one of the most importantleash r for growth you have to fill the jobs and they are different kind of job at the intersection of industry and technology and so one of the greatest things we can do is something we've talked about is, developing that. that's really been a focus and was a focus of the meeting on friday. >> these new collar jobs, p-tech jobs the way you're getting kids there through an alternative college in six years, you think this agenda -- >> that's right. think of it as a six-year high school. it's on track. we'll have 100 schools. >> i was saying, though, when it comes to the president's agenda and the need to simplify the tax

code and other things, perhaps this market needs a little bit of reassurance at this time, and by the way, one of the good gauges of that is animal spirit, we look at all the deal making and the big deal you had with salesforce last week, you've got companies there including h&r block, royal bank of canada, so you're pretty active on that front right now. tell us a little bit about this deal with you and at&t? >> well, you've got me out here at our interconnect conference, i'm with 20,000 clients and we finished this morning talking ability the underlying point that ibm cloud is the platform for the next era of business and randall joined me here, randall stephenson from at&t, to talk about this announcement we made together which if you think of it simply, think of in this world of sbnts of things you start with a device and securing that data from the device through the network to the ibm cloud to do work as cognitive both in the network and on the data, back and forth, an end to

way, as well as doing it in a way that you bring insights. that's really at&t and ibm, bringing our strengths together and that's what we did this morning between randall. and it gets down to, i said randall, together, we're really reinforcing what i think are the three biggest differentiators about the ibm cloud and why it is the platform for the next era. one it's enterprise strong. second it's data first. and third, it's cognitive at the core. and that announcement with at&t is all three of those. >> it's interesting this is also happening as you've just come from china, signing a deal with wander group to allow you to provide cloud services there. we often think of china as an impenetrable market for some of our leading tech firms. why do you think with ibm it will be different? >> yeah. this is i think an outstanding partnership and when we talk about enterprise strong, part of that is your scale. and the partnership with wanda, one of the most successful private companies in china, is

the ability to take our cloud, 209sth country, 51st cloud data center and they are an extremely, extremely successful company and they have the ability to move with speed and they understand what big and small business needs and we'll be providing the cloud technology with them. so i think this is going to be an outstanding platform for companies in china and they desperately want the type of enterprise, security and analytics, cognitive and data we've been talking about. it's a great -- and by the way, the other part about being enterprise strong, which is whether you're china or anywhere in the world, is this idea that the foundation of the cloud continues to bring lots of innovation. today we talked about the announcement that block chain announced in production, the first commercial enterprise strength block chain out on the ibm cloud and two weeks ago it was quantum. you'll continue to see these innovations for enterprise coming one after another for our cloud. >> and we should mention, one of the analysts at morgan stanley last week, upgraded ibm's

prospects saying she believes your cloud transformation is underappreciated. there is an opportunity to draw more attention at what's at ibm when you have a big outage at rival amazon, for example? >> well, absolutely. that's why when we say enterprise strength, key parts of that are that knowing that when you're talking these kind of businesses you're up around the clock without stopping. mind you, we do run 97% of the world's largest banks, 80% of the airlines, we're doing 90% of all of the credit card transactions, run through us. and it's about bringing all that to the ibm cloud. but really, more importantly, it's two other pilars that i think are important to our clients. one is when i say data first, we tell these clients architecturally we can protect their insights remain theirs. you know, it's one thing if you're in a consumer world and data is really distributed and some use the word commoditized or democratized. we're about being sure a customer's insights remain

their. the piece of cognitive at the core, 20% of the data in the world is searchable on the web. 80% is prepropry tarry in a customer and that's where the value is and distinguish about what we're doing here. when you talk about how do you take advantage of these moments, i think it is being clear about enterprise strong, data first, protect your insights and all around this idea of cognitive at the core, in a domain, 80% of that knowledge, is domain, industry, and that's what watson knows how to do and where the value is. >> all right. ginni rometty thank you for joining us on "power lunch." please stay with us. much more coming up on "closing bell." we'll throw it back to you. >> thank you very much. we're going to take a short break here and a major market move here. the dow down over 200 points. facebook getting an upgrade today. we'll talk about that and these overall markets. stick around. ho! ( ♪ ) it's off to work we go! man: on t gulf coast, new exxonmobil projects e expected to createover 45.

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i am bedict arnold, the famous traitor. and know a thing or two about tding. on arademarkedra platat thahas all th.. get off the computer traitor! (cannon soun . hi, everybody. i'm sue herera, your cnbc news update. nasa's human exploration of mars was part of the space agency's objectives in legislation signed by president trump at the white house today. that law includes more than $19 billion in funding.

>> legislation we support nasa scientists, engineers, astronauts and their pursuit of discovery. we support jobs, it's about jobs also. opening statements taking place in the trial of former jc penney state president graham spanier who is facing charges of child endangerment and conspiracy linked to jerry sandusky. he is denying any wrongdoing on his part. the van gogh museum in amsterdam unveiling two paintings by the dutch master 14 years after they were ripped off the wall in the museum at a nighttime heist. they were recovered last year by italian police probing mobsters for cocaine trafficking. that is the news update this hour. you're up to date. melissa, back to you. >> thank you very much. the oil market closing for the day. let's get to jackie deangelis at the cnbc commodity desk. >> good afternoon to you. you can see crude oil prices are closing lower today for the session even though they started

higher. there was optimism in the marketplace that the opec cuts that 1.8 million barrel a day cut would be extended past june. we've been sort of going back and forth on this but more members seem to be leaning towards that. still you can see the market doesn't have much confidence here that necessarily it will go through, or that it will help that much because u.s. shale production is going higher. you can see the april price is around 47.50 at the close today we will roll over to may, that's around $48, but still sitting under that $50 point. this market appears to see some pressure going lower. back to you. >> thank you, jackie. soup may be good food, but apparently it is no the a good investment. campbell's soup and general mills and kelloggs downgraded by bernstein research. to sell. remember loyal viewer last week i was wondering whether there were more sell ratings on wall street because it seemed like

there was. eric chemmy joining us with a special segment he tells melissa i was right. >> melissa, what could be better than that. >> brian was right. want to get that off the top. maybe my segment is done. >> thank you, eric. see you later. >> i will use that as my check please. >> going to be brian was right. >> but it's not just food. right. you mentioned food today. not just food. across the entire s&p 500 we're looking at an increase in selling about 16% more than a month ago. that's nearing the highest level of sells we've seen in the entire past year. just this past month, a full 63 stocks in the s&p 500, saw an increase in the number of sell ratings issued against that. here's the thing, sell ratings still pretty rare. only 4, 5, 6% of all the ratings out there. when brian or anybody starts to notice several pile up in a row that's a real trend. obviously, those changes. these research guys did well to time the market as it's been going down the last few days.

but, we know, 95% of ratings are still a buy or hold. this move from let's say 5% to 6%, is at the beginning of the sell ratings going up to 10% or just a blip and maybe it stays -- >> 63 stocks out of how many? >> 63 out of the 500. >> out of the s&p 500. >> exactly and the other part is that usually within research shops you have to have -- if you have overweight or outperform ratings whatevers the wall street equivalent is a certain number of sell ratings to offset, so have the number of super bullish ratings gone up too? >> buy ratings go down. buy ratings going down, sell ratings going up holds staying in the middle. that's the aggregate. every shop has a different rule. different banks will do 20% sells, other banks 2% sells. this is the overall. >> to be fair to melissa, you never said -- >> what do you mean, be fair to me about what? >> it's fun. it's just fun once the a while. >> fine. go ahead. >> that you weren't saying it was incorrect because when

melissa and i do street talk every day we're looking through and you kind of eyeball it and like -- >> like today you found all those retail stocks like an entire sector. >> got downgraded. >> a sell rating on. >> financials retails and industrials the three in the past month have seen the most downgrades. >> the biggest point be it's tiny, but -- >> relative to its universe it's a lot. >> everything starts somewhere. is this the beginning of more. >> uh-huh. >> no. the biggest point, the biggest point is that brian was right. >> don't encourage him. >> if melissa had been right and brian wrong i don't know if i would have been here today. >> i rate all the employees. tyler, you've always been a buy, i've upgraded you convictionless. >> strong buy. >> melissa -- >> conviction associated with my name under any circumstances. >> your rating -- >> analyst drop coverage. >> turn around a market sell-off it's a positive earnings surprise from a couple big companies. nike and fedex will get their

chance to supplies rprise us af bell. we'll get you ready for those reports when "power lunch" returns right here. whetheyou're after premperformance... ...advceintelligence.. ...or breathtaking style. ...there's a c-class just for you. decision decisions, decisions. lease the c300 sedan for $389 a month at your local mercedes-benz dealer. mercedes-bz. thbest or nothing. i am benedict arnold, the infamous traor. so i trade wh e*trade, where true traders trade on a tdemarked trade atform that has all the... i won't. (cannon sound)

welcome back to cnbc. i'm kayla tausche in washington

where senators have just wrapped up a weekly policy luncheon and following that mitch mcconnell making comments to reporters about the health care bill. take a listen. >> these are the various episodes you go through in trying to make a law and get a signature. it's happening in the house. i'm confident they will be successful and when it comes over here it will happen in the senate. >> he says that this is a process unlike what congress has seen in the last eight years when they weren't sure that they would get a signature on the other side of that governing process. he said that's different this time around and that's why republicans should ban together and figure out some common ground on this. he said he is confident as you heard that the house will pass this bill, although immediately after he followed his remarks senator chuck schumer on the democratic side said that this bill looks less likely to pass the house and senate so there appears to be a little bit of tug of war and nbc news, guys, is reporting there are 26 republicans in the house that have either said they will vote

against it or are strongly opposed to the deal. there are 230 something republicans in the house right now, they need 216 votes. they will need to sell some of those to get them on to the other side for this to pass. guys? >> kayla tausche, thank you very much. thursday vote guys, is shaping up to be a big market event. >> we are less than 90 minutes from the closing bell in what could be the worse day of the year for the stocks. the dow down 80 points. it's come back a little bit. financials still the worst performing sectors inside the market. goldman sachs, b of a, taking a move down. industrials are lower as well, caterpillar, boeing and united rentalals, only thing doing well is the safety trade utilities and consumer staples. >> we are watching shares of nike due out with 30s quarter earnings after the bell today. here are the key things to look for, susan anderson. good to see you. i've been reading your preview

note and looks like you are expecting nike to miss street estimates when it comes to north america. >> yes. that's our big difference, so basically the street is expecting positive growth. we think it will be a little bit negative and that's really based on the minus 4% futures they gave last quarter for north america, even though they talked about they felt that north america could grow positively, we were a little bit skeptical on that. but i think that's going to be the key thing to watch and if they can eek out positive growth in north america, i think investors will be happy. >> when you're taking a look at channels such as the finish line or foot locker what are you seeing for nike? >> well, i think it's looking much cleaner, so the stores and the nike product within the stores are looking much cleaner than what we saw all year last year. nike kind of hit a wall last year and they really revved up that innovation and i think it's starting to improve sales for them and then also with cleaner inventory that should lead to better margins too. >> do you expect them to address border adjustment? will you ask that on the call?

>> it feels like retailers are avoiding it giving the lack of information but i'm sure the question will come up and depending on what happens if there is a border tax, given nike's international exposure, which is 60%, they actually may be better set versus some of the other domestically exposed retailers and then also if they can repatriate cash from international markets tax free that would be good for them. >> do you know what, if any, of their product of apparel or shoes are made in the u.s. >> they're starting to ramp up their 3d imaging in portland, oregon. it's tiny but over the long term that could ramp up. if there is a border tax that could be accelerated. >> what's the strongest line of merchandise right now? >> you know, foot wear has always been their forte. that's where they've been the strongest. >> sure. >> but on the apparel front i think they've done a very good job in women's. we continue to see that grow strongly. that's because they did move so quickly into athleisure, so more

fashion-based athletic apparel which under armours that struggled with and nike has done a really good job there. they've been ramping up it feels like their innovation and coming out with a number of new innovations such as the flies which we saw launched yesterday which could be a hot new product for them depending on how well, it goes over with the consumer. >> going to leave it there. thank you. susan anderson. all right. elsewhere a story we broke a few weeks back being confirmed by "the wall street journal" softbank investing into the sharing company we work. the company has become the go-to host. the journal notes that investment will grow to $3 billion my source says we could go above $3 billion but softbank finally investing. i was starting to sweat it a bit. >> stocks on pace for their worst day of the year right now. dow down about 187 points, we'll talk to bane capital about the

markets and his investment in the new ipo canada goose and basketball, one of the owners of the celtics. that's after a short break. i'm only in 0's.

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the kind of market day we have not seen in several months since before the election. welcome back to "power lunch." it's a big sell-off on wall street. the dow is down a little less than 1%. about 0.93, 193 points, was down more than 200 a few minutes ago. leading the way lower most especially, financials. goldman sachs, jpmorgan, lot of regional banks. they're not in the dow. industrials, too. caterpillar and boeing big decliners as you see right there, 26 of the dow 30 moving lower right now. can i get some .

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we asked you earlier would company logos on sports uniforms, virtual reality and canada goose jackets have in common. the answer your next guest. "power lunch" exclusive, steven is managing director of bain capital, part owner of the boston celtics and his firm

bought a stake in canada goose in 2013. good to chat with you again. warmer than the last time you and i chatted. before we get to sports which is where you are and why we're talking to you, last year was a terrible, terrible year for the ipo market. you guys at canada goose had a successful ipo. do you think this will be a rebound year for ipos? because it's not looking that way with the exception of yours and maybe one or two others. >> well, i think it's great to see that happening. i can't predict the future. ipos could be successful have to be great companies and we're proud of canada goose, its track record and what it's done and it's an exciting story. i wear the coat myself and i certainly have many warm winters because of canada goose. >> are you worried about some of the bad behavior we have seen? all the drama around you know and silicon valley stuff, does that influence the way when you take a majority stake in the company that you manage that, go hey, knock it off? >> you know, we try to run the companies in a very responsible

way, and if there are a lot of issues, we probably won't invest in a company. in today's world, millennials and people really want to have a great product and company. as you high standard. bain capital stemmed out of a consulting firm and their claim to fame was getting close to the customer and that's what we try to do. >> let's get back to the business of sports if we can. you probably saw adam silver's comments about teams sitting players. golden state sat basically almost the entire starting squad in san antonio a few weeks ago. you have a responsibility to fans, but you also have a greater responsibility to fans ever se of the celtics. where do you come across on this issue? >> i think it's a very complex issue. i think it will be discussed at the upcoming board of governors meeting an adam is extremely at the forefront of most of these issues. it's a delicate balance.

i think fans have every right to see the players play every night. some have injuries -- >> don't laugh so much over there. it's not that funny. >> a crossed mike right there. >> or was that you? turns me on when you turn it on. >> nope. >> obviously we don't know what happened. some sort of weird moment there. steve is back with us. if there is somebody next to you, just give him the old stiff arm there. we're going back to the idea of fans and where your duty as a team owner lies to the nba or to the celts. >> i think our duty lies to all those. we have to do what is right for the players, the fans, the video partners. and that is why adam silver is convening a meeting to on talk about this. my gut bias is i really would like the players to play if they can play. and there are legitimate

injuries and there will be a gray area, when can someone play when there is a stress fracture, for example. but i think adam will come up with the owners with a thoughtful response to the issue to be fair to the fans, players and media partners. >> one of my guebest friends pld with you at duke and told me to remind of a circuit shot that you made. we'll talk about that later. but what is that -- >> oh, my goodness. >> what do you think is the solution? is it a scheduling issue primarily? >> i don't think it's a scheduling issue. i think that there is not a solution yet and i think you've seen maybe as people are focused on the long term. coaches in their defense are focused on the long term. and if players are under the weather or fatigued or need a a

break. that obviously causes dynamics with the media and the fans. so we need to look at it and see what is the fair solution. >> good to series one of the best in the game. good luck to you. >> is nick your son, the current new player? >> yes, he is. we're re provery proud of him. a tough game at greenville. that was his last game unfortunately, a sad moment for the doouke team. but proud of the team that fought so hard. nca ampt attorn ncaa tournament is fantastic. south carolina played really well but i'm proud of the duke team and nick. >> for the record, i was the worst player on the worst duke team in the last 50 years. kind of like bob's long jump are. >> well, ben clark said to say

hello to you. he was number 50. >> and he was a great rebounder. >> thank you very much. pretty impressive. we're back right after this.

oue so i brought imy cfort pony, warren, to help me deal. isn't that right warren? ll, you could get suppt from thinkorswim's in-app chat. it lets u ch and share you screen directly with a live person right from the app, so you don need a comfort pony. oh, so what about my motivationaleerk? in-app chat on thinkorswim. only at td ameritrade. let's welcome in chief investment officer at heartland financial. given everything going on in the markets, what do you think is

really behind the market decline? >> i think it's exhaustion. since oblgt ctober as you know,e we've had a 1% decline, and markets don't go straight up without taking a breather. so i think investors are ready to step back and see what is behind the earnings as we move forward and then also the political agenda. although we think that the health care bill gets done, we think tax cuts, maybe not reform, get done. and we think infrastructure gets done this year. but it will be ugly. it always is. >> you've been trimming financials. which one? >> we have been selling the community banks. so pnc entered our sell range. we began trimming it back. we of course didn't trim enough for today's movement. and we still are just slightly above with a market weight in some of our portfolios and market weight in others. but jpmorgan is close to a sell.

wells fargo is getting there. so we oewn the money centers an regionals. >> and do you think there are things -- stocks that i want to buy right now, take advantage of the pull back? >> yes. we are actually buying in technology. so before i knew i knew i was coming on, we made a decision yesterday to add to our facebook holdings. going to talk about it one way or another, i guess. but we had been advocating it in december and it's continued to appreciate, but still a cheap stock. we've been adding to microsoft and taking a little dip further into ibm. and then of course the health care. >> back up at 10,000 feet, if the health care plan does not succeed in this thursday vote or the vote is postponed because they can't push it through, would you expect the market to sell off big time or big league? >> funny, tyler.

look, i expected to sell off on many instances where it hasn't. we had that -- >> auhaven't we all. >> yeah. but i will say this, i think it's going to be a contentious year. it already has been. and i think the markets are going to react to that. whether they react the way you and i think they should or have historically is another question. but stocks are not super expensive. the rally in bonds is not a big surprise given the alternative. so we're just picking away and using these days evof volatilit when we get them as an opportunity to buy high quality companies. i didn't answer that, but -- >> that was a great answer, nancy. >> it was an artful answer. >> thank you, nancy. >> most honest answer we've had in a long time. >> on 00 ba big sell off day li

today, technologies nancy is adding to. >> and don't lose sight ever of allied headlines. >> thanks everybody for watching "power lunch." >> "closing bell" starts right now. hi, everybody. welcome to the closing bell. i'm kelly evans at the new york stock exchange. >> busy day indeed. stocks on track for their worst day of the year so far. and actually the worst day since last october 11. there are concerns about whether president trump and speaker ryan's health care bill can get passed through the house on thursday. that seems to be weighing on investo investors. but you also have the financials, the retail sector and the transports all taking a hit all for different reasons. so we'll have more on what is behind today's selloff. >> and we have a first on cnbc