of america, plunging more than 4%. financials very much a focus as we talk about today's trade, tech, financials, materials, some of the worst performing sectors today. that does it for "squawk on the street." let's send it downtown for the start of "squawk alley." thank you very much. welcome to "squawk alley." i'm carl quintanilla with john fortt and sara eisen. we are in the midst of a major sell off. only one dow in the green, unh. s&p is down 31 and change. both of them testing the 50-day moving average. gold is up 22, 23. the vix has shot up past 13. the ten-year fighting with 224. we couch all of this with the knowledge we have gone 15 sessions without a move as much as .5 in either direction. >> the context is important but there was just too much turbulence when it comes to the headlines in washington, d.c. if you look at which groups are

getting hit the hardest, financials. the explanation there is the ten-year yield drops to lows. the low we are watching now is 217. that's the low point of the year. we last hit it in april. there is clearly a flight to safety and out of some of the groups that have been winning the most, technology. apple is one of the worst performers in the dow. >> in the dow. i am interested in how badly semi conductors are doing. amd down some 8%. they didn't get more details on gross margins out of a company meeting. invidia down 4.3. applied materials down 3 plus. these are significant moves in those stocks. i don't know if there is something bigger than the negative we have going on. >> amd is up 209% in a year. a lot of people may look at their gains and said, i'm good. i've got to go. >> i think the question people are going to have to ask is does

the noise become so serious it ultimately impacts earnings and the economy, which is what this market has been moving on and what has propelled it to record highs as early as this week. >> all part of the discussion. it is a busy morning in washington. the president reportedly asking then fbi director, james comey, to shut down the investigation into former national security adviser, michael flynn. we have it all covered. eamon javers. i asked the white house about this selloff. they have had no comment. they have embraced it in the past and view it as a real time barometer of their performance. no comment here on this move today. a lot of moving pieces here in the various scandals that are engulfing this white house right now, including the offer of vladmir putin to release a transcript of the meeting in the

oval office in which the president passed on sensitive intelligence information to the russian government. vladmir putin saying he has a transcript of that. andrea mitchell of nbc news asked the secretary of state about all that a few moments ago. here is how that exchange went. >> mr. secretary, vladmir putin is offering congress a transcript of that lavrov meeting. do you think the russians were bugging the oval office? >> there is no way to know that. >> rex tillerson says, i have no way of knowing that. white house officials i have talked to hearsay they simply don't know whether or not the russians were able to record or keep a transcript of that conversation. here is what president putin had to say. his specific offer. he said, we are ready to submit a transcript of lavrov's talk with trump to the u.s. senate and congress, if, of course, the u.s. would want this. i can tell you they would not want that.

they don't want to say they are depending on vladmir putin for political cover in a domestic scandal. this is a typical day. the president is in connecticut. he is going to give a graduation speech and we will see if he addresses any of that at all. >> typical and yet extraordinary, our eamon javers is at the white house. ylan mui has more. >> reporter: house speaker, paul ryan, said this morning he wants to hear from comey himself. he also is backing an effort by representative jason chaffetz to get any and all documents related to that conversation between comey and president trump. >> we are not going to be trying to play to the crowd or try to meet timelines. we are going to do it the right way and follow the facts wherever they may lead. >> ryan was measured in his tone during that press conference. when he was asked off camera if he still has full confidence in

the president, he said, i do. the fallout here on capitol hill is just beginning. virginia representative, barbara come sta comstock, says she thinks lawmakers should have a classified briefing on what happened. they think comey should testify publicly and senator john mccain is comparing the scandal to watergate in its size and scale. he is just waiting for another shoe to drop. democratic congressman, al green, is expected to call for the impeachment of the president on the house floor. >> a lot to follow out of capitol hill. a jittery wall street response in response to the white house turmoil. joining us to talk about the markets, sean and mary ann joining us. the selloff picking up steam here. as we mentioned, the markets

could have been ripe for some sort of correction. what was it about today's news that led to that? >> the vix index has been very low. we have been looking at sentiment indicators that have been saying that having some volatility within the market would be normal and, of course, we are in the month of sell in may and go away. what's really amazing is that the fundamental drivers of the market earnings and the trends, the technical trends in the market remain really strong. any news headline really could have wobbled the markets. what i love about it, there is no major fundamental change that's occurred that is causing the selloff from what i can see. >> change in what? >> earnings, really bad economic data. we have kind of had some mixed economic data but not disastrous. there is a model we use at the firm that's called the global wave. just looking at global data for the 12th straight month, it continues to rise. it is not just strength here in

the u.s. but we continue to see strength overseas and earnings and economic data. it is one of the first times in a long time that we have a synchronized global recovery. five years of a recession are recovering. many of our investors have been looking for a pullback. well, i think you are getting the opportunity but pullbacks never happen with positive headlines. >> i think the question, sean, people are asking, has anything fundamentally chapged wi fundamentally changed with the future of our president or the future of his pro growth agenda which, as mary ann said, might not be the primary driver but got a lot of investors excited. >> at barclays, we have been talking about this a lot. it is a very crowded domestic policy agenda. you have to then tackle tax reform. if you begin to introduce other issues like this russia investigation with comey, it basically takes a lot of time

away. the reality is, until the first quarter of next year, that's your whole schedule. people are going to be very focused on the mid-term elections. are we going to have to wait an extra couple of weeks for some of this stuff? the drumbeat, specially over the last two weeks of just wild headlines out of washington that seem sure to derail any meaningful work getting done. we are not talking about what's going to happen before august recess. what's the impact there? >> here is my observation. we have had headlines out of washington for the past couple years and the markets real sently hit all-time highs. at the end of the day, as long as we were getting headlines, maybe the markets may respond here and there. it is really the fundamentals that are drying it. i know you are a big tech person. what i love about the markets, the nasdaqs have cleared their 2000 highs. when we look at the s&p 500 and look at the tech component, small cap has already cleared its all-time high. >> isn't nathat a reason worry.

amazon is at about $1,000 a share. is that a sign there is nothing to worry about? >> i know you are trying to get a negative comment out of me. it's not going to happen. >> i am concerned we might be whistling past the graveyard. we haven't been reacting. is finally a shoe going to drop. >> sir john templeton had one of the best sayings. markets bottom on pessimism. i would say they rise on skepticism. they continue to climb on optimism but they don't go into a bear market until you have euphoria. with all the questions that you are asking me, i know we are not eforic. i wouldn't even say we are optimistic. i want you to continue to ask me these negative comments or questions, because i think we are too pessimistic. i see a lot of life in this market. i am very excited. what's happening in technology with innovation, with big data,

with cloud computing. amazon is a big player in. what's happening in artificial intelligence, robotics, what's happening in the innovation and biotechnology in terms of genetics and nano technology. i can't get more excited. >> a trader said yesterday, no matter what happens, we north going back to rotary phones and video is not going back to fave. there are banks and you have expectations for june coming down in the low 60s. do we worry about the fed waffling in the next meeting. >> i think our team has come out, talking about two rate hikes going into the rest of the year. we are fairly consensus. i don't think what happens out of the white house would change issues in terms of the fed. would the president talk about what who he wants to nominate for the fed. i don't see that coming up any time soon. i don't think we will see any issues. >> how many more hikes do you have in the year?

>> i believe we have two more. >> not favoring on that? >> i don't think so. >> we have two more. should the markets continue to have extreme volatility, the fed has shown us, they might pause. if you don't have extreme volatility, we are still forecasting that they are going to hike. >> they pause when the market probability of fed hikes goes down. which republicans do we need to be watching, house speaker ryan said we are going to pursue the facts. we are not going to go with speculation and innuendo. >> key leadership in the house and senate. you have 52 republicans in the senate right now. folks like john mccain and others begin to talk about special prosecutors and expanding the investigation, i think this will have some legs. we need to see what kind of testimony is put forward by comey and others if they are asked to publicly testify. i think things will move very fast. people should take a break and relax a little in that it is moving fast right now in the

last week, last couple days. the news has been going quickly. it is not like we are going to have an impeachment trial within a week or a month. the articles of impeachment, to get to that, are quite a high bar. >> everyone calm down. it is the matching magenta. mary ann bar tells and john good to see you as well. dow close to session lows, not quite though. down 263. can we push the offer online? brian, i just had a quick question. brian? brian... legacy technology can handcuff any company. but "yes" is here. you're saying the new app will go live monday?! yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes.

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it now stands at 12.7 million dollars. should we worry about another financial crisis? it is substantially different. here is some of the things out. the mortgage auto student loan debt rised. debt for cap ta is we low the peak and default remains low. it has fallen by 5% compared with '08. auto loans are up. student loans are up 6%. more student and auto loan debt. less mortgage debt. while the percent of debt 90 days delinquent did rise it is

below '08. those with credit scores of 760 or greater, got 36% of all loans in '08. now, it is 61%. less credit worthy borrowers are having trouble getting loans. student loans remain high. down a bit but they bear watching after a steady rise since 201 12. we are above the peak of '08. it does not look as troubling as it once did. >> steve, do you read this as a good or bad sign for the economy? debt is a dirty word. if consumers are taking on more, does that mean they are more confidence? >> a sense they can handle that

debt and handle the debt service. you don't want to see people stretch wg de stretching with debt to meet every day needs. you want to be a little bit careful with debt levels here, interest rates are low. as they go up as expected by the fed, that debt burden could go up for people. >> right, right. specially watching those 2008 levels as you mentioned. thank you, steve. when you come back, stocks having their worst day of the year on their heels of more d.c. turmoil. we are keeping our eye off the selloff. the dow down some 243 points. the nasdaq, down 1.5%. we'll be right back. your insurance company

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welcome back to "squawk alley." i'm julia boar stiff.

lyft passed uber. uber's challenges had an investigation where the department of justice could add both riders and drivers for lyft. they doubled their passenger miles from a year earlier. lyft's director tells us its strategy of partnerships will give its networks an edge over uber. >> we believe in bringing autonomous technology to our passengers. we have worked with them for a number of years. what that does is allows us to work with these technology providers to bring autonomous technology to our group. >> lyft says the new technology won't eliminate drivers because it will be a while before cars are totally autonomous. >> we introduce autonomous

technology. we will see the number of drivers we need grow. you are actually going to see more people adopt transportation as a service and viable means to get around. >> i took a drive with ride share expert, harry campbell to get a driver's perspective on autonomo autonomous cars as well as uber lyft rivalry. >> how are you? whoo have you found is the most important thing for drivers? >> in 2017, we actually surveyed over 1100 drivers. overwhelming responses that we saw were drivers care most about their pay and their flexibility. lyft drivers reported earning about $2 more per hour than uber drivers. i think a lot of that stems from the fact that lyft has an in-app tipping option. >> what was the impact of that

video that was leaked of the ceo of uber not being very nice to an uber driver? >> i think there are a lot of drivers. it wasn't a surprise, because there has always been that feeling that driving for uber, you sort of feel like sometimes you are a disposable commodity. they are constantly looking for new drivers. >> how worried are you about driverless car sns. >> in a place like the united states where there are going to be so many regulatory issues and so many political issues with self-driving cars coming and taking people's jobs, i think it is not a huge issue until much further down the road. >> tlanghanks, harry, thanks foe ride. >> as for whether lyft is missing out on big opportunities overseas, he says the company still has plenty of room to grow within what he says is a $2 trillion u.s. transportation market. we'll see where they rank on

next year's list. "squawk alley" will be back right after the break.

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these are walls that bring us together. because quality public schools build a better california for all of us. good morning, i'm sue herera. private chelsea manning was released from a kansas military prison earlier this morning. these transgender soldiers served 7 years of a 35-year

sentence for providing classified government information for weeikileaks. she posted a photo on her twitter page, first steps of freedom. vladmir putin criticizing u.s. politicians for whipping up anti-russian sentiment calling them either stupid or dangerous. he was speaking with the visiting prime minister of italy. he offered to turn over to u.s. congress records of president trump's meeting with russian diplomats. new orleans removing one of two remaining confederate monuments. crews removing the equestrian statue of pierre beauregard that led td attack on fort sumpter in south carolina. ever wonder what it is like to ride out a tornado in a car? this is a crew when a fast-moving tornado moved right in front of their vehicle. other than some frayed nerves and a broken windshield, the

crew was okay and probably not anxious to do that any time soon. that's the news update this hour. back downtown to "squawk alley." sarah, back to you. >> those videos are always so scary. >> they are. >> a broad selloff is underway. the dow is down 240, off the session los. let's get to bob pisani. >> the important thing is, we are seeing europe clothes. let's look at the s&p, you can see it is a bit slow now. take a look at the sectors here. a number of other parts of the market are affecting us. you notice banks are notably weak. the ten-year yield below 2.3. that's the lowest at 227 since april 24th. that's been a problem for banks. tech, a high beta group week. some support for utilities, like gold. the dollar is at a new low, generally, since the election. that's helping commodities like gold and oil. it is not helping commodity

stocks interestingly. market risk, it is important to review exactly what the risks are. the reason we have been holding up so well, earnings guidance has been improving. geopolitical risk outside the united states has been perceived to be lower. what's changed today is u.s. political risk is perceived to be higher. markets can withstand some of the trump political drama but talk of obstruction of justice or an impeachment fight, higher political risk in the u.s. finally, not a lot of new lows or dramatic technical detection. i wouldn't know g.e. since its earnings reports. it has had a tough time. a new 52-week low. down about 5% since the earnings at the end of april. you mentioned europe was about to close. let's get to sima moda. >> europe's post their biggest

one-day loss in almost eight months. market in france on track for their worst session since june of last year. investors are seeking safety. just take a look at bonds. money going in, the german, french and protuguese ten-year yields falling. portugal, lows not seen since late october of last year. taking a look at european currencies amid weakness, the euro at 111. up about 5% against their green back in 2017. the pound rebounding as well at 1.29 in today's trade. in terms of stocks, lloyds is one of the bright spots announcing the british government is no longer a shareholder after sharing its remaining stake. the government bought a 43% stake in lloyds as part of a

bailout. lloyds claims u.k. tax payers have made a profit of almost 900 million pounds from the sale of their shares. stock up, 2%. carl, back over to you. >> amazon ramping up efforts to break into the pharmacy market. sources close to cnbc tell us although it is not a certainty, they are trying to come up with a strategy. let's bring in nyu scott galloway and jeremy phillips. both of them at post nine. it is good to see you guys. >> thanks, carl. good to see you. >> we have been having this discussion on different categories for years, more specifically the recent months. what could they do at will and how damaging would it be. >> any time they roll in, you take it pretty seriously. they are running a test in phrma. in japan. why wouldn't they? >> for me, it is a matter not of

if but of when. >> one reason would be they have their hands full. is that nod a good enout a good reason. >> i was surprised he they weren't already doing this. i have forgotten this wasn't a product they already offered. >> why aren't they? >> they do subscribe and save a lot of the companies that do offer pharmacy services. they are big on sending them on a schedule every couple of weeks, every month. amazon would seem to be in a great position to do that. are there dangers here we might not see? >> that was the correct question. why aren't they? >> complexity and regulation typically benefits the people who have figured out the incumbent players. this will be bad for the manufacturers brands of pharmaceuticals if they get into this business. something the brands benefit from here is a lack of transparency. when amazon comes into a category, you see universal margin pressure across the entire echo system.

i can't imagine they won't be in this $300 billion sector. good for amazon and shareholders and consumers and everyone else bad in the system. >> isn't there a regulatory and safety aspect that we are not thinking about. you can't just ship drugs all over the place. don't you have to show your i.d.s and be registered in terms of your insurance and there is this big debate about drug prices. that affects the actual drug companies a lot more. there are regulatory risks here. >> sure, the question is, can amazon address those risks as confidently as cvs or walgreen's. in japan, you have to go into a pharmacy and show your i.d. and a registered pharmacist makes sure you are getting the right drug. amazon is good at figuring out a complicated problem, growing their share price and have everyone else take a beating. >> i am trying to think about what the investment required would be. you are not dealing with

products that are hard to ship or bulky or heavy. it can feed right into their logistics plan. >> they have been in this business before. they had a partnership with drugstore.com back in the day, a decade ago. i don't see why they shouldn't be able to deal with this. it requires short-term logistics. not all of it is suited to getting there within three days. some needs to be there within an hour. the last mile logistics is still a challenge. >> would you imagine investors would have the patience to say, we are going to tackle a brand new area. >> investors have always given amazon a very long leash. >> indeed. >> there was this idea that industry should be very scared when amazon was entering their turf. we see that in the share prices at cvs and walgreen's. what's the verdict on that. i get it with retail, the bookstores, groceries. they haven't really made a dent there. >> no one has figured out groceries.

you have to trust amazon probably will. everyone is focused on amazon versus walmart. who is really getting hurt is manufacturers brand. amazon has algo richlies that goes out and looks for the lowest price per ounce regardless of the packaging and then demands of their brands that they offer that same price or better per ounce in any package or within a nano second, they will kick you off. you have to maintain probability. they are inspired with 500 million consumers, fanatical investors that fund this to declare war on brands and all the margins to give it back to the consumer. >> classic play in that regard. >> a new chapter in the legal battle between qualcomm an apple. qualcomm filing a complaint against apple's iphones saying it was not paid proper royalties for use of the technology.

john, i know you are watching the space. it is getting more fiery. >> qualcomm has been very generous with their time talking about this side of the story. apple doesn't want to pay qualcomm licensing fees for its technology making the argument the fees are too high. it is a percentage of the cost of iphones and ipads. apple tends to price those high. i am wondering, do you see an argument for apple to completely stop payment and say, we have paid you enough already. we are going to handle this in court. for now, do with nothing. regarding any legitimate argument, no. will they get away with it, yes. they have decided not to let the federal government into their iphone. if ford said, you can no longer get into a trunk. you see someone thrown in the trunk but you can't get in. that is where we are with the

idol t id idolatry of apple. do you see any legitimate argument on apple's side? >> i wonder if this move is an effort to pressure the manufacturers. they are going to somehow say you can't make any phones for somebody if you are not going to pay us. could that work if they do it through the manufacturers, not apple? >> my understanding is apple has lawyers and big boys that sign this contract. it basically said we don't like the contract. so we are just going to stop paying. other than that, i don't see the argument here. >> i don't have any special view other than a sophisticated company. the lawyers have given them some reason to take this point of view. >> it is fascinating, though. the scale of these feuds, whether it is google or apple qualcomm, it is like the pepsi and coke of tech battles.

they have the sharpest elbows in the world and can kind of dictate the terms of almost any partnership. law of public opinion, that's all sort of second order affect here. >> a lot of people put qualcomm in that camp as well. they have been known to get their way. broad cam and others have come after them for years, largely unsuccessfully. it is all very well to say that i agree with what scott said, these companies are used to dominating particular markets. when we talk about four or five of them, that arcmegument becoma lot weaker. they are converging on a lot of markets. they are keeping each other. that's our protection. >> i think the headline was that they are not so scary. they are at competition with each other. what point were you trying to

prove? >> people get consumed, because they say you can't go a day without using one of these five company products. which one of us goes a day without using one of the mobile carriers. they are incredibly competitive and offering us more data and lower prices. if you look at google, apple, facebook, microsoft, they are all converging. it is not because music is this incredibly high margin product. they feel like it is necessary to be in consumers everyday life. i think they are overdone. they are keeping each other on us. >> that's a lot healthier than having regulators keep their eye on them. jeremy, scott, good to see you guys. as we go to break, we are tracking the selloff this morning. the dow is down 245. some of the morning selling was driven. rick santelli, what are you watching? >> i continue to watch the

dollar index. when the reserve currency of the world seems to break away from normal correlations, there was a message being sent by that trade. it is that message we are going to discuss after the break. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

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fidelity, where smarter investors will always be. coming up, a debate over whether this is a turning point over how the markets view the trump presidency. is volatility about to come back? apple is suffering the worst day

of the year. is their your big chance to buy? the health care names you should buy ahead of next week's big cancer conference. we start noon eastern. we'll see you in a few. >> let's get to the cme group in chicago and get to the santelli exchange. good morning, rick. >> good morning, carl. there has been an alignment of global pieces and we could count volatility. low volatility, pretty much global markets don't trade at the same price but for the most part, they have the same moves. the size of the moves may vary. when our ten-year started to get hit in terms of yield and rally and terms of price. we saw the same dynamic with, boom, it didn't measure out the same. we outdissfanstanced them. that makes sense when you are multiples of what their yields are. the dollar index, the reserve currency of the world. we could argue between what's going on with the president,

what's going on with the administration, what's going on with the media, is there smoke, fire, is it real? it is not for me to say. for me to say, eventually, when i was young, we used to say, knock it off. if somebody wanted to knock that block off, they will have a confrontation with you. let's duke it out. that block has been sitting there and this administration is the block. it is off. the markets are on the loose. today, you have heard many guests say the pressure is building. what's going on is finally affecting the markets. i think the dollar index has been after if he canned by some dynamics for a while. let's look at what's going on. the last significant bottom is 9706. current dollar index is 9768. we have talked for days. most likely, we are going to be looking at a 95, 96, 98. these are going to be the areas that the dollar index will find support.

when things get pretty hot and you get some pretty big moves in the dollar index, they tend to be self-feeding, so to speak. this move, in my opinion, if you want to take a step back. we want is to see how it acts when it gets here. see if it pauses or slows down. there is very little doubt that ultimately, right around 96. it might come past. that's where you are going to find support. the reason i think that is significant is because i think the ten-year note like the way the tens and the boons trade, this isn't going to correlate direct with the dollar index. they both feed off the same feeding areas. they are joined at the hip, so to speak. it's the calibration that's an issue. if you look at the most thinly traded zones, we have talked about it before, it is basically 180-220, a big area. insofar as specially that occurred right around election. this all seems to have at some point a political denominator. simple assessment.

when the dollar index hits that 96 level, my guess is that where you are going to be with ten-year notes is right around the middle zone of its thin value line. right around 2%. if it happens to correlate that you see 96 with the dollar note and 2% with tens, it might be something you want to pay attention to. they failed unchanged on the year at 244. they have a double tap at 263 and a double bottom at 145. you have to get your nobodies righ knobs right. >> maybe there is something to be said for that, yes, sarah. straight ahead, we are keeping you prized of this market selloff watching technology under heavy selling pressure. technology is the second worst performing group in the s&p.

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markets having their worst days since september, 2016. joining us, paul christopher and our mike santoli is here on post nine. things are ticking along as far as economic growth is concerned.

you think consumer spending is going to continue to be decent. it sounds like you are saying, don't worry too much about headlines that are coming out that might spook the markets one day or two. >> that's right. we don't know, as rick >> we don't know how long this noise lasts, but what we see frequently this year so far when we get noise out of august, paem begin to suspect the administration will get less done and that tends to bring valuations down. we thought they were a little bit stretched. the good news is we think economy is still solid so you've got buying opportunities here, just going to have to rebalance a little bit. >> my valuations though are still rich in many people's judgment. could this be a case of people trying to call downturn so many times and it doesn't happen that now, nobody wants to call a downturn? >> certainly nobody wants to call a downturn. i think the backdrop of not just the fact that valuations are

stretched, but that there's broad acknowledgment. if you look at the merrill lynch fund manager survey this weerk you have people say iing the mu is overrate. basically, you have to go back to the year 2000. it means that frofsal investor psychology, we're sticking in this for that last bit. whether we're going to get policy help, i don't think it's a big driver, but it's something or this final bull market flo flourish we often get. makes people say i wasn't digging in here for five years of growth and great economic times. >> the survey also talked about cash level, not suggesting you're at a top. looking for 10% earnings growth over the next 12 months. >> i think that the biggest committee fundamentally is the back half of this year, the earnings forecast have held up very well. is there anything in those forecasts significantly linked to policy? i would say probably not. i think basically, people are

kind of extrapolate iing just t global growth trend and the question is is, does that trend persist or are we in another soft patch? >> can you take the other side of that urk paul? ceo confidence has been high since the election. they've had a voice in this administration. if we start to see change s in washington, the "wall street journal" has loose lips sync presidencies. has that changed over the last 48 hours? >> i think that's more of a question for 2018, for 2017, i'd agree there's not much priced in that was going to happen this year. we've just come off a weak first quarter in the economy. as the economy gets ready to ramp up for a 3% probably rate this quarter and into the coming quarter, we think there's plenty still to discount this year, we like the earnings estimates. we just think that you know,

people who have been waiting to take some profit, waiting to rebalance for a good opportunity, this might be the time they're finding finally. >> on tax reform, mike, or tax cuts. it's been suggests there's a strong underlying bid, sell, if you have to sell, wait until december 31st because if they do pass that thing in the first quarter of next year, make it retroactive, 17, give them the most leash you can give. >> sure, i don't know what slug of the market that really can account for. in other words, how many people are basically modifying their behavior based on that. it's unclear to me. look, there's a big tax cut embedded in the health care reform bill. that would be kind of in theory, a high-end tax cut that got a con summit boost. does the noise get so overwhelm, do you have this political fog that it impacts business and

consumer confidence and behavior. too early to say. >> paul, quickly, one piece of advice for investors at home that they should be doing in market that as you mentioned, is valued this highly. some people taking some profits. >> it's time to stop waiting if for the opportunity to rebalance. look to take profits here, look to put the money back to work in areas where you've been underweight. >> sound advice. paul, mike, thank you. >> thank you. >> on that point, stocks are having their worst day of the year. at least for the s&p and the dow. goldman, j prpm, dupont, apple,e biggest laggards. the biggest are apple, intel and boeing. back in a minute.

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and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. google is kicking off its conference today. josh lipton is live at the conference with a preview of what to expect. >> when he takes the stage here to deliver the keynote at 1:00 p.m. eastern, the expectation is that he's going to talk a lot about google assistance, its

answer to apple, siri and ama n amazon's alexa and we could get updates on google's hardware. for example, google home, the smart speaker that answers questions and plays music. there could be additional pressure on google to offer updates today because we know it is playing catch up with amazon, which dominates 70% of the market versus just 24% for google. amazon benefits from first mover advantage and continues within this space. but tech analysts say don't count out google either which continues to add new features to its smart speaker, too. like recognizing multiple users. garrner says spending on these devices will top $2 billion by 2020. other hardware, reports that google is also going to unveil it's new vr headset.

coming up later on closing bell, i'll be chatting with clay bavor. guy, back to you. >> thank you, they got some updates to do on daydream as well. they promised us these phones that would work with vr and they haven't showed up, guys. >> in another universe, we might have led with google io conference today. not the day for it though. zpl we can look at the slide of technology stock, which are some of the biggest losers as they have been. the biggest winners of the year and that potentially explains why nasdaq is is down 1.5%. this liquidation of some of the losers. the dollar was a tell. continue to watch that, i would say, going forward. it's pretty much broken down over the last two days. >> indeed. longest losing streak for the dollar in about two months. the earnings parade is going to roll on. we are going to get earnings from cisco, after the ransom worm over the weekend. >> maybe this is the one tech earnings call we'll have where

people aren't talking about competition with amazon. that's where the market 2017 for me, amazon, amazon, amazon and gook l io, apple, retail, everywhere. over to headquarter, scott wapner and the half. >> our top trade, d.c. drama. whether the turmoil around the trump p presidency has reached a tipping point for stocks and how to protect yourself if it has. with us today -- and kevin o'leary is here. also with us from the white house today is cnbc's eamon javers and from new york, cnbc cr contributor, ron inaans. vix