>> we haven't mentioned john bolton when his name was mentioned for national security counsel, we saw a leg lower. not saying that's what's happening right now, this interday decline, but he is so hawkish on china or north korea and the degree -- he'll be higher pressure on trade maybe that's a cause for some selling, too. >> thanks 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. >> i'm wilfred frost stocks making a wild swing and well off session highs after president trump signed a massive $1.3 trillion spending bill. >> dow down more than 200 points defense stocks were sharply higher after the signing of that bill because of a big increase in military spending we'll look at the biggest winners. >> dan niles weighs in on the facebook fallout

you may be surprised by his view on the stock >> but first, we start with another up and down day on wall street bob pisani on the floor. an hour ago it was the markets making a comeback. now the dow is down more than 200. >> this isn't playing right. it was supposed to be a nice, quiet day. i think what's happening is we've gotten in the last 15 or 20 minutes market on close orders these are orders that are put in largely by retail investors from their mutual funds for what they want to buy or sell at the close. the mutual funds don't trade during the day they get the final print down here those orders about 1.8 billion that's a fairly large number not enormous but fairly large. i think that was a little factor let me point out a couple things the problem the market has right now is neither techs nor banks are doing anything banks have been weak all day citigroup, a major mover down here down 2% for the week we're down significantly for the week on citigroup here but we're back to levels in the

february, middle of february a lot of these banks are 7% or 8% to the downside tech is the largest sector, 26% of the s&p no leadership at all it's drifted lower hewlett-packard, a big tech name on the floor here, down 2.4% that's down 6% or 7% so far this week that's pretty significant. here's the problem we don't have much in the way of market leadership. i'm going to show you one, though, right now. oil's rallying oil is close to $66. this is the one little bright spot for the week. we have oil numbers up for the week oil is only 6% of the s&p 500. we need a lot bigger sectors to move forward so far this month, you know what's been the leadership utility stocks, real estate investment trusts. that's nice but they're fairly small market cap to move the market you need much bigger sectors like tech and banking stocks so far, that's not happening. >> bob, thanks for that. all 11 sectors lower today

all 11 sectors lower for the week let's get to the nasdaq. bertha coombs is there for a check on the big movers there. >> thanks. the nasdaq on pace to be down for the third week in four this week when it comes to the biggest drag it's really about facebook in terms of the bag losses facebook right now looking at a 13% loss that would put it in the top five worst weeks for facebook since going public on very heavy volume when you look at it for the week the volume increasing at this hour of course, the concerns over regulation, over the social networking giant following that cambridge analytica scandal. take a look. facebook, the biggest loser. it's not usually that you have one of the big mega caps being the big loser. but when you look at the best performers, there are no gainers to be found there either intel was looking near the top

those are the leaders and they're all negative for the week as well it has been for the most part, though, pretty much a tech-driven decline this week. looking as bad as we saw back in february the nasdaq right now is on pace to be down for the second straight month, at at the moment, up for the year and for the quarter. that said, amid all the red today, we do have a very big tech ipo with dropbox having gone public. pricing at $21 a share, above the range. the opening trade was $29 a share. it slipped a bit below there nonetheless, an impressive debut. the company with a valuation well north of $10 billion, which is where it had been valued in the private market so, that's certainly encouraging for a lot of those unicorns out there and tech investors looking for a greater supply back to you. >> thank you for that.

meantime, president trump threatening to veto the $1.3 trillion budget deal congress just approved. in the end, though, stepping back from that threat. >> i think i have whiplash from what's happening in washington over the course of the day it all started at 8:55 this morning when president trump issued that veto threat just hours after the senate had already passed that spending bill he said that he was mad about the lack of solution for daca as well as not enough funding for the border wall. by 1:30 this afternoon, he had changed his mind and said he was reluctantly getting behind this bill >> as a matter of national security i signed this omnibus budget bill. there's a lot of things i'm unhappy about in this bill there are a lot of things that we shouldn't have had in this bill but we were, in a sense, forced if we want to build our military, we were forced to

have there are some things we should have in the bill >> and the gop leadership has been pitching this as a big win for the military 2.1% pay increase for military services and highest level of funding for the defense department in 15 years meanwhile, democrats also claiming victory they said they were able to limit funding to the border wall to just replacement walls or see through fencing. what isn't in the bill is a fix for the so-called dreamers president trump said republicans are on the dreamers side but house minority leader nancy pelosi shot back with this statement saying republicans refuse to join us to provide real protections offering only a temporary patch instead. lawmakers have largely already left town for the easter recess. president trump is heading to mar-a-lago in just a few hours i think everyone can use a vacation back overto you. >> you could sense the tension when he tweeted that this morning. everyone going, wait a minute,

what are we going to do with this we're already out of town. thank you. defense stocks did surge after the president signed that bill emphasizing the increase in military spending. indeed, there's a big one. phil lebeau has more. >> this is one of the bright spots? a down market this afternoon on wall street. take a look at the defense stocks and how much, all of them getting a nice pop following this bill. basically because of what it outlines for the military in terms of hardware as well as for the military itself in terms of pay raise. let's talk about the hardware aspect of this overall, this budget for the military will be increasing spending by 10%. it will be $654 billion. that's how much has been earmarked in terms of spending for the military in 2018 it calls for more jets, more ships. you have the specific stocks, whether it's northrup grumman,

lock he lockheed martin. take a look at the defense index versus the s&p year to date. without a doubt, if you've been putting money into the defense stocks, this is a better play this year. one last note, guys. people say, how come boeing isn't as uch as lockheed or northrup boeing was concerned about a trade war and what might happen with the commercial airplane business in china. that's a little bit of the reason why it's not getting as much of a pop as some of the other defense stocks >> nonetheless, it hasn't got the worst possible news on the china front it could have gotten >> no. >> it's managing to end the week flat basically. >> right when you talk with people who are close to boeing, familiar with boeing and the analysts on wall street, everybody says the same thing you won't see the chinese airlines immediately cancel orders they may threaten to, but the backlog goes out a long ways

even if there are those threats out there, they're not pulling those orders right now so while it is a real concern that investors are watching, it might be overstated so far >> phil, thanks for that boeing one of only two stocks higher today on the dow. >> it's up about 1%. the dow was down nearly 300 points the selloff we've seen -- at times throughout the session today has not only returned with a vengeance and we're pretty much at session lows, down 277 for more we're joined by asset manager ceo, phil, here at post nine, along with cnbc senior economics reporter, steve liesman. i think the dow is down 10%, maybe more so frr its recent highs. are you buying the dips? >> this is your opportunity. maybe you've heard a lot of negative news lately i've been watching a lot of programs and thinking, we're getting mixed up with the benefit of a tax cut, a surge,

almost push in earnings from it, not to mention in my opinion economic data is still good. ism, both service and manufacturing, both above 50 housing numbers today are a little soft. strong earnings, strong consumer sentiment. by and large this is a chance to re-enter the market. this is your -- facebook, a name everyone is beating up on, 2.1 billion users. they make their money on advertising. to think advertisers will pull because of that is a wrong assumption. >> is it going to improve given this fiscal spending we got confirmed today? >> yeah, that's one thing that will improve it along with the tax cuts that's going to improve it anybody's guess what the impact is on fed policy you can imagine that the stimulus that's coming is going to drive rates up faster you got maybe a whiff of that at the wednesday meeting. these trade, tariffs and potential responses is another

thing. i've come to the conclusion over many years that the federal reserve doesn't know much more than smart people in the market know if you look at the white house and you understand what's going on or you're confused, pretty good idea that the federal reserve is confused, too i don't think there's any particular insight they have they're just watching what's going on and they're saying, we have this whole push me/pull me and ultimately they're a little more hawkish now, but they're waiting to see how all this plays out. >> the emperor has no clothes, phil, that's what you're saying. the wiz has stepped out from behind the curtain there's no mystique at the fed we all get it. they know as much as we do and we don't even know that much. >> the emperor has no clothes but it's unclear the president has a plan, ultimately, for how all this plays out in other words, what do you do with the steel tariff story? you were going to slap these

steel tariffs on it was negative for the market now they have mostly come off. we had two weeks of adjusting to exactly what, nobody knows. >> phil, clearly from your first answer, even though things might be uncertain, you're not that concerned. you're still encouraged by the economic picture and the earnings picture. >> there's a grand experiment going on you bought two quarters, maybe three, of solid earnings growth. you cut your taxes in half you have an opportunity here to steve's point, the headlines tell you there could be dark clouds out there we don't really know if you can pull your emotions out of the headlines and focus on the data, you bought yourself two, three quarters of opportunity to enter the market and i think it has solid 8% to 10% return long term, does the deficit balloon, does it not work -- >> hang on i want to point out the dow is down more than 300 points a moment ago phil, even as you're pointing to that, there's plenty of concern about the trade situation as

well that has a real economic impact for you or no? >> it doesn't. this is noise. this is the warning shot to say, we're looking at this seriously and there could be implications. i can't manage money on could be implications the data tells me i can still make money in the market and for that reason i have to take advantage of it. >> you mentioned the market can look ahead to fiscal deficits a couple years' time, maybe this starts to fall apart the market reacts to future expectations is that what people are looking ahead to today, deficits ballooning, things like that >> it does that's why you see emerging markets doing better than u.s. stocks if you bought yourselves two quarters, market is forward-thinking one to two quarters you have this buying opportunity now. the headlines have scared money out of the market. i would argue retail money you saw the selloff and the rally -- now we're basically flat on -- this is your chance to re-enter. >> i was asking to ask phil. inherent in that outlook, and i agree with him there's very positive outcomes potentially

from the tax cuts. but you have to decide there will be benign outcomes from trades and tariffs if you told me that every one of these things is going to play out like the steel tariffs did, that he's going to make this big announcement and pare it back to a place that is sort of benign, i'd be happy with that i can understand your investment thesis i don't know that i'm that confident, that all of these outcomes will be as benign as this one >> the market's very good of climbing the wall of worry steve is right -- well, if his concerns play out that the tariffs do have this profound impact on earnings, i'd be wrong. but for me, i can't see the scenarios where it's pulled down after a tariff and big tax cut it takes too much of an impact there would have to -- for now, i want to buy this market. i want to take advantage of the opportunity. i'm finally getting stocks a

little cheaper, but watch it very carefully >> phil, thank you very much steve, thank you very much to you. perhaps we will listen to phil there because we were down 300 points on the dow. we're now down 250 listening and -- at least in small doses. down sharply on the day. not far off those session lows. >> 45 minutes to go. the "closing bell" is just getting started. >> announcer: ahead, is a proponent of the steel tariffs changing his tune now that there are carveouts for certain countries? the industry weighs in next. plus, where this country's chief financial officers believe the economy is going they have some inside information. we'll hear from them coming up on the "closing bell," with kelly evans and wilfred frost, live from the new york stock exchange

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welcome back to the "closing bell." down 237 we were briefly down over 300. the high of the day came only an hour and two minutes ago

it's been a sharp selloff. 42 minutes to go down about a percent or so at the moment. >> word this morning, china could scale back purchases of u.s. treasuries. the country's ambassador to the u.s. saying largest creditor is, quote, looking at all options. ron ansana predicted that could help, we have him here along with rick santelli from the cme in chicago ron, i still think china would be shooting themselves in the foot if they did that. wouldn't that drive up the currency, which i thought they were threatening to lower as part of this tit for tat. >> yes, but shooting yourself in the foot isn't ruled out in the midst of a war we've seen people do that in the past to get out of it. a trade war itself is mutually assured destruction. if things go too far, you can never tell what either rational or irrational players will do. that's where the cash is that's where the leverage is just by saying it, as we discussesed a month ago, the

chinese raise that as a potential lever in the negotiations you may or may not take it seriously, but it is something they have that we don't that they can use in these ongoing conversations. >> rick, what's your interpretation of the general sort of risk on/risk off sentiment? did it start in asia when you consider what happened with the nikkei in japan? >> yeah, i think it was a bit self-fulfilling to some extent i think the overseas markets were responding in large part not only to the activity we saw on our markets yesterday it carried over a bit. we were much less benign but the volatility, especially in front -- fridays are always a bit strange in the afternoon, wilf i'd also like to add something into this. forgetting whether they buy or don't buy treasuries, maybe the billinger issue is, if they have lots of dollars in their pocket, the choices are somewhat limited. to that end, i will go to the

bianco research. he wrote something in january i found fascinating. he said when it comes to jobs on the exports, when china exports goods and services to the u.s., you're probably talking 50 million jobs in china. on the u.s. side for what we export to china, his research found that about 500,000 or half a million jobs are on that side. that's 1%. the argument is you can talk about trade, impact it they've already stopped buying to the extent they used to that's not only china, that's all foreign investors of a large scale. the reality is, is that we're really discussing will these tariffs in the product make enough of a cutback to make a big difference in those 50 million chitd niece jobs the point is, they have way more to lose on every level >> and to that point, rick, 50 million jobs for an administration in china that's just doubled down -- i mean, part of the reason we're talking about tariffs is because they didn't pivot away from the consumer led they went back to the industrial thing to make sure people were employed

when they got laid off from the factories, they were protesting. i was going to ask you about the exchange rate. what do you think they may or may not do here and how does that factor into their treasury holdings >> when it gets to fx, it gets difficult because of the central bank cross-currents, libor affecting swaps, all the borrowing costs. the japanese economy isn't really in its terrific shape otherwise the government wouldn't own half of everything. but if you look at that example, just today the dollar/yen, the yen is at the highest level since november of 2016 i'm not sure the japanese are enthralled with that but there's a lot of moving parts. i think in the big picture china would like to see their currency weaker. >> what i point out here, when you take a look -- step back and look at the larger picture, some risk karats we ought to take passengers to, the persistent

weakness in the value of the u.s. dollar, the sudden interest in gold, oil prices rising on geopolitical risks in the middle east we have a change in the regime at home that is far more hawkish than we've seen in quite some time i think even beyond the trade war, there are concurrent events that force us to reassess risk i would be one inclined to take chips off the table and raise some cash. i think six to nine months from now we'll need a cushion there's enough uncertainty, enough moving parts here on the trade front, on the economic front possibly peaking in terms of global economic front, on the fed front. there are way too many bits to feel comfortable if this market is properly priced. >> ron and rick, thank you very much for joining us. meantime, shares of facebook sitting near session lows on a rough week for the stock leslie picker has the details. >> facebook down 13% for the week, on pace for the worst

weekly performance since august 2012 after a few months going public in 2012 down about 2.5%, 2.9% today. this comes amid the company's cambridge analytica scandal. just moments ago a uk high court has granted an application for the information commissioner's office for a warrant to search the london offices of cambridge analytica, according to sky news back over to you guys. >> information commissioner. >> the regulator only created recently. as we discuss with the chair of the select committee in parliament, they're thinking of increasing the powers going forward. >> it sounds orwellian, all the positions in the uk and europe let's talk about - >> the chairman of the federal reserve. >> information commissioner. >> that is unfounded criticism of the britishness they're well founded today >> tariffs on steel and aluminum have gone into effect with an asterisk last night the administration

issued exemptions to several countries including canada, brazil and north korea >> joining us, barry zekleman good afternoon to you. thank you for joining us >> my pleasure >> clearly there was euphoria for your industry a few weeks ago when these tariffs were announced. since then a number of carve-outs have been added to it what's your view on those carve-outs >> first off, i think the tariffs when they were announced were first steps we're grateful to the administration for announcing that we knew it would be a first step in a negotiated solution quite frankly, i think we're excited to see what's happening now. we have imports of steel but we need them responsibly traded in here and at responsible volumes. the whole goal of those tariffs were to increase capacity utilization of the steel industry and, therefore, employ more people. we're looking to extend the

quantum flow of steel in the country so we can produce more steel, employ more people. we think this is the first round of those negotiated solutions which would be a combination of tariffs and quotas. >> barry, i see you're saying if trump were to exclude korea and brazil, the gig is up, it will be a big joke because they're just going to -- china will get the product other ways, right? >> i think if that happens it would be a big problem but i don't see that happening i don't see them being excluded in whole of tariffs and/or quantum of steel they'll ship in i see a negotiated solution going on right now i trust president trump and the administration has an absolute well-crafted plan in order here. we do need some of those imports in here. and i think they'll come to a viable realistic and meaningful solution for our industry. >> what about the likes of the eu, should they get exclusions as well given that they're

allies >> well, look, they're our ally and i think a lot of steel that comes from the eu responsibly traded here and that we actually need here. again, i think that it's wise to sit down and come to a meaningful solution and a negotiated solution that is good for the u.s. and good for the eu and good for the american worker again, that's what it's about, employ more people we welcome this. this is a great step. >> thanks for joining us we'll continue to check back in with you as this ee vovlsz. half an hour to go to the bell dow down about 300 the outperformer, the other averages are down 1.5%. still to come, td ameritrade explains how investors can protect their portfolio in the event of a trade war with china. dan niles tells us whether the facebook data scandal fallout is an opportunity to buy the shes ayitusar elity, trades are now just $4.95. we cut the price of trades to give investors even more value.

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welcome back as the dow is flirting with its lowest level since last november the s&p is down about 40 points right now, just over 2600. here are the sectors none are positive. energy and industrials are the outperformers right now. meantime, tech and financials are the worst. financials down 2.5%. >> financial performance worth noting financials down about 4% we're saying the end of the session it was the first big,

bad day for banks during the week that's definitely been compounded today sector leadership to the downside meantime, occidental petroleum, one of the best in the energy sector and broader market after deutsche bank upgraded the oil company from buy to hold citing valuation it's up a cent shares down 14% over the prior two months we're bouncing back a little today. >> we're looking for any bright spots with the dow down more than 300 points. time for a cnbc news update with sue herera. >> hello here's what's happening at this hour, everyone the justice department today charging nine iranians with conducting a massive cyber theft campaign on behalf of the tehran government deputy attorney general rosenstein saying the attack resulted in data being stolen from more than 140 american universities and dozens of u.s. companies. a brawl during an assembly meeting in the country of georgia. a verbal argument over a new faction inside the city assembly obviously turned violent

several people were treated for minor injuries on a much nicer note, mr. rogers was honored with a forever stamp. the u.s. postal service unveiling it today as you can see, the stamp features fred rogers in his familiar red cardigan along with one of his puppets, king friday. a business legend passed away wayne huizenga started three fortune 500 companies. he also founded the florida marlins andthe florida panthers and he owned the miami dolphins as well. he was 80 years old. and very much missed that is the news update this hour i'll send it back downtown to you. >> sue, thank you very much for that sue herera there. let's have a look at the markets. we have 27 minutes to go before the bell we are down again near the session lows the low is 300 points on the dow. we're down 270 the dow is the best performer, though, as you can see the

nasdaq's down, the best part of 2%. >> it's had a rough week facebook shares are part of that facebook is down 13% this week in the wake of its data issues our next guest says it could go the way of myspace. ubs director for operations art cashin joins us next for his take and what could happen in the maing rein27 minutes we're back in just a couple. so what else is new? how's your mother?

umm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. 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.

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to have a partner that is so skilled at what they do is indispensable, and i couldn't ask for a better partner. welcome back with a look at the dow dropping 306 points to close out a week where we're receive a lot of late-day weakness. today we started, futures were negative, turned positive and then negative this afternoon until the president signed the omnibus bill that he cast some doubt on in a tweet this morning. that put the dow up. that lasted shortly and then gave it back and then some >> it's been a roller coaster ride amazing quick and severe selloff in the last hour or two. the results of cnbc's latest poll are around. there were some surprising findings about where the market could be headed next and the impact of president trump's trade agenda jackie deangeles is back at hq

with more. >> good afternoon. that's exactly right the tone this quarter of the cfos we surveyed was a little different than we've seen in the past the majority, almost 30% said trade policy is the biggest external risk to their business right now. that's a cautious tone only one of the 38 respondents said their company sports blanket tariffs on steel and aluminum most we heard it was bad policy, trade war should be avoided. the majority of cfos said the impact tariffs would have on their business would be slightly negative overall in the past cfos thought stocks would go higher before they go lower. this time almost half of those surveyed said they think the dow will fall under 23,000 before it would cross 27,000 for the first time the market was a little higher when we did this survey. on the fed three-quarters think

it's on track for three rate hikes. most think technology will be the sector that outperforms. with tax reform behind administration, 30% of cfos said their company will use their savings for share buybacks for what's next on the agenda, half think infrastructure should be the number one priority this year for the full survey results, head over to cfocouncil.cnbc.com. there's a lot more juicy information in there. >> thank you for that. let's discuss with our "closing bell" exchange art cashin is with us at post nine, manager of ubs financial services and i believe rick santelli is joining us as well arthur, let's start with you in terms of the selloff and what's leading it how big are the volumes, at we've had selloffs, the volumes were too high, which is a small offset to be encouraged by. >> it is and small volumes usually indicate rather thin markets

you get a disproportionate effect a small amount of sellinging takes the index lower than normal because there's just nothing there to hold it back. and, again, not unlike yesterday, the heavy influence late in the day here has been indications of market on close sellers. yesterday we had close to 2 billion. as of right now, and the viewers should be very careful because this could change on a moment's notice, we're very close to that number again that's what's taken us back down below 300. >> yesterday we closed down more than 700 points. so that's 1,000 points in two days we're below 24,000 so i think that takes us back to late fall in terms of levels for the dow we came into the year roaring pretty hot does it make you feel it's more normal now or does the fact the volatility gauge is over 25 and the way markets have behaved this week signal trouble to you? >> well, the good news is a lot of people were waiting for a retest of the lows we made

earlier. we're beginning to do that now that's accomplished something. we are oversold in a variety of indices. so, that's of some benefit i think we need things to calm down in washington a little bit to get things going. the feel -- i mean, numbers are being thrown around wildly for example, they talked yesterday, the president, 50 to $60 billion tariff that's the size of the trade that's done. the tariff will be much more like $3 billion to $4 billion. we need those numbers to be in order. >> and the trade could remain. talk to us a little bit about the sector leadership, arthur. energy is really the only sector to speak of -- well, it's down for the week but not by much is that something that can be maintained or we need other sectors to fight that? >> energy is being held up

logically by the fact oil has moved higher should the wti move significantly above the 65 level, then i think they can go into a second leg to the upside and they could lead for a little while. you're really going to have to, as we discussed yesterday, probably get back to things like the technicals and the telecoms and the financials to kick in. they'll probably take a couple more days of rest. >> what about interest rates granted, they haven't been moving up much even after a strong durable goods report, but how are they behaving as other times when we've seen market stress >> you know, they seem to pay lots of attention to the downdrafts in equities and it pulls us down to the bottom of the range. we just never seem to seal the deal if you're looking for rates to kind of make that jump back under 280. we're at 281 now we're -- last week we settled at

284. we're down three basis points on the week i know many like to look at the wide ranges we covered, whether it was fed day the day after we covered a lot of ground from an intraday above 290. but the reality is, like everything in life, the score of your bowling game isn't what you have in the fourth frame it's where it closes right now treasuries are not miffed by much, at the short end gave some back that, of course, is focusing on the fed and the volatility and thinking maybe it will have an impact >> rick, thank you very much for that arthur, thank you very much for that have a great week ent. let's have a look in on the markets with 18 minutes to go. we're near the lows of the day the dow down 312 points. the nasdaq, the laggard of those indices, is down 1.9%. still ahead in the wake of facebook's data scandal, fallout noted tech investor dan niles said he sold some of his position he'll explain why coming up. it's been a rough week for

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welcome back to the "closing bell." 15 minutes to go until the close. now down 340 points, 1.5% on the dow. that's the best performer of the indices. financials have been one of the worst performing sectors this week they were yesterday, they are again today. shares of jpmorgan, citigroup, goldman sachs all down bank of america is down almost 5% as we speak, which is significantly more than it was a few hours ago. joining us to discuss more about this week's roller coaster rise, shawn cruz, trader strategy at td ameritrade. let's kick off with the banks. bank of america, that's a big move is this a buying opportunity for those names? >> it could be i think you saw a tailwind coming from the synchronized

global growth you saw heading in i think a lot of these tariff, any sort of, you know response from any of our other trade partners, that could call that into question. i think if you do see that really play out, that could disrupt that a little bit. if you look at financials, tech, they led us higher if a lot was getting led higher on the synchronized global growth story, if that comes into question, it would make sense. >> it's also a question of what's happening with rates. people have pointed to the deficit, actually, and said, look, there's a lot more supply going into the market. whether it's little short-term treasury bonds or other types of things making this more of a competition for everybody's money. so, is that going to hurt the banks, you think >> i don't think that's going to hurt the banks as bad. i think a lot will have to do with how that plays out in the yield curve. i think if you can get the yield curve to steepen, that could serve as a tailwind for banks. if you -- >> it will only steepen for two reasons, right it could steepen because of

growth, it could steepen because of inflation or a combination of the two. is that what it comes back to? >> i think the growth story. i think if you really do start to see the growth come into play and we start to get a lot of that inflation start to show up in some of the hard data, i think that could be what drives along the curve higher and that will help financials. >> what about facebook and tech, is this a buying opportunity for those names? >> i think if you want to look at tech, it's important to be choosey about where they're at in the space when we started out the week, you saw a lot of the volatility of tech showing up in your facebook, your googles, data-driven companies. later in the week when the tariffs had an impact, you saw it spread to semiconductors. i think it's recognizing which one of those you think is going to turn around and making your choices about what you decide to move into. if you think regulation may not come into play as strongly and serve as much of a headwind, maybe you look at your facebooks, your googles. definitely make sure you know what is going to be predicating your choice -- >> people seem to be in a sell

first, ask questions later mentality. >> absolutely. >> thank you very much 12 minutes to go here. dow's down 344 points. >> up next, we'll take a look at some of the biggest stock movers ssn he day on another wild seiofor wall street. we're back in a couple minutes they keep coming back. aw draw the line. one spray of roundup® max control 365 kills to the root and keeps weeds away for up to one year. roundup®, trusted for over forty years. yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.

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welcome back dow is down more than 400 points art cashin walked by, traders were focused on close orders and still confirmed $2.3 billion to sell a pattern we've seen this week >> banks were the worst performing stocks yesterday. they are again today in the last couple of hours we've seen markets sell out more bank of america highlights this brilliantly. it's down nearly 5%, bank of america. it's astonishing for the $300 billion market cap in the market let's check on some other big movers today micron, one of the worst performers in the s&p 500 despite beating wall street investors but they were hoping for blowout results. you can see it's down 5% citigroup cutting its rating on the stock from neutral to buy on

concerns about flash memory pricing. wells fargo upgrading kb home to market perform and raising its price target to $37 from $35 after they beat wall street's expectations and hiked guidance up 2%. >> auto stocks are also getting hit hard in the late day selloff. who's spared at this point let's get to phil lebeau with more >> kelly, the automakers are certainly not spared if you look at the market overall, down 2.3% you look at the automakers, generally speaking, they're down about that much, at a few are down more than 2.3%. toyota taking the biggest hit so far, down 4.7% today tesla shares also under pressure some of this could be because you've got a slightly jittery market right here. you want to look at a stock that people are saying, look, let's try to push down on it this is one of those names that comes up here, at you've got to be very careful when you look at tesla. it's extremely volatile in terms of up and down when markets are

moving like this today it's down close to, crossing under $300 a share for the first time in a couple of months finally, take a look at the auto index, the s&p 500 auto index, versus the s&p 500 really no comparison here. there hasn't been a whole lot of good news for the automakers one last stat for you guys general motors noud down about 25% compared to its high back in october. now trading around $35 a share compared to $46 back in october. back to you. >> phil, thank you very much phil lebeau keeping an eye on autos. here's a look at the broader market dow down 450, an 1100-point drop in two days. six minutes' time to go. percentage term, dow the outperformer s&p down 56, 57 points to 2586 major averages down more than 5% for the week and the volatility gauge up around 26. wilf is on the floor >> extraordinary selloff we've seen since pretty much the

middle of "power lunch" through the last two hours down 423 points on the dow at the moment it is the outperformer, though the nasdaq now down essentially 2% and tech throughout the week has been the worst performer have a look at the two-day selloff on the dow 1100 points in the last two days pretty extraordinary selloff what has driven it over the last two days let's look at the ten-year treasury note. after wednesday's fed meeting, the yield on the ten-year 2.88% at the close of the day. we're now down at 2.08% essentially on the ten-year. if you look at that chart, look how much they slid in the last couple of hours. a real leg down in the last couple of hours. that has tallied with the market selloff, particularly with banks. let's look at bank of america. we mentioned before, and you can see the selling in the last couple of hours. it's really matched the yield selloff as well. there is banks of america the last couple of days. down 5% just today

that's after selling yesterday in terms of sector leadership today, if we now show that, you'll see financials, the worst performer. they were the worst performer yesterday. we saw about a 4% decline for financials yesterday and today another 3% as we see energy only down 0.73% as the best performer. also if we switch to see the performance of sectors for the week as a whole, energy the best performer there as well because oil prices have been on the up for most days this week. they were down a little bit yesterday. in general, oil prices have been performing well. energy is the only one you can look at with anything to hold onto it's still down. all sectors today down all sectors down for the week. >> the problem with the close, we have a fair amount to sell at close, market to close orders, about $2.4 billion these are mostly retail people you cannot buy or sell a mutual fund during the day. they get the prices at the close. normally it doesn't amount to much 500 million or so, we don't pay a lot of attention

$2.3 billion, $2.4 billion is a large number traders aggregate these during the day to estimate how big they will be at the close i think that's the source of the weakness energy is starting to show leadership but it's a small group. because it got so sold off in the last couple of years, its only of 6% of the s&p 500. even big companies like exxon or chevron, their movement won't have a dramatic effect on the s&p 500. it's tough to do that. i think the important thing to do here, the lack of leadership from technology. social media is in an existential crisis. >> it's not just lack of leadership, it's significant leadership to the downside. >> right many big names are down 9% or more facebook is down 15% even the big names, the f.a.n.g. stocks are down 4% to 99% this week we're talking amazon as well tech stocks very important to note, we're at the lows in february citigroup is back where it was, bank of america back where it was at the lows we saw in

february these are essentially lows for the year the calendar year. >> interesting as well to see bank of america the biggest seller today because yields are slipping it's seen as the most interest rate sensitive with a big part of the retail bank if we flip back and have a look at the dow 30 stocks there's a couple positives to hold onto. nike, earnings better than expected boeing up slightly as well it's picking one or two in the green. >> and so you -- the problem here is you're beset by a number of issues. number one, the fed a long time ago, but the fed being more aggressive, even in 2019 and 2020 is a headwind the fed is not a tailwind. >> but yields have slipped since then. >> that's right. there are other concerns out there that are putting pressure on that, number one. number two, the fed is still an issue. number two, you have the whole issue with what's going on in washington today was a very chaotic day, as you saw, with the president not sure if they would sign the funding bill or not. it did briefly pop when we

signed the funding bill. even washington issues matter. protectionism matters. the s&p earnings are going up 20% this year. double digits each quarter once anybody believes that's in some kind of threat, even if it's not 20% it's only 16%, i'm picking a number, you have a problem. >> a sign of risk off sentiment as well. if we can bring up gold prices because they enjoyed a bounce over the last couple of days. >> up $20. >> up about 1.5% as we go to the final minute of trading, let's sum up what all three indices are doing. the nasdaq down 2.3% today the dow down 1.7%. 400 points off 700-point selloff. an extraordinary selloff. >> the dow has moved 1400 points this week. we started - >> down below 7,000. we should point that out dipped briefly below that. let's finish on the two stories of the week. we'll start with facebook over the course of the week because that sparked the selling in the first half of the week facebook, of course, still having a terrible week over the

course of it down about 10% or so if we look at bank of america, we see how banks have picked up the selling at the end of the week as well we are down 400 points on the dow, significant selling there goes the bell at the new york stock exchange, evertec at the nasdaq, and agricultural digest down 400 points on the dow that's 1100 points the last couple of days kelly has the second hour. thank you, wilf. welcome to the "closing bell," everybody. what a week it has been. look at the way we're going out. the dow dropping 445 points on the bell bringing us down to 23,531 we are turning back the close many months here for these averages, including for the nasdaq it's under 7,000 again nasdaq today dropped nearly 2.5% on the bell to close at 6992 s&p 500 down 2.1% or 55 points

to 2588. the russell 2000s down about the same percentage amount shed 33 points to close at 1510. elsewhere, the transports are down nearly 200 points the dollar was down about half a point today. interestingly, crude was higher. the volatility gauge up at about 25.5 that's going the wrong way for the markets as well. most of it looked pretty ordinary until just about the last hour or two of trade. that includes after the president signed the omnibus bill, he had been threatening to veto he even made some comments about the stock market but we sold off and had sell orders on the close to get through here as well. bob pisani has been in the middle of the action bob? we'll circle back to bob in a minute bertha has been in the middle of the action where, by the way, dropbox's ipo went off pretty well but the nasdaq closed below 7,000. >> what a difference from this

morning to this afternoon. certainly the enthusiasm we saw with the ipo, we'll get to that in a minute. very much dissipating this afternoon. the nasdaq closing below 7,000, at still up for the year clearly technology this week has been the huge drag that had been the driver for the rally in this market facebook is ground zero for the sort of negativity we have seen in tech this week. facebook for the week down nearly 14% that's its worst weekly performance since the week after it came public back in 2012. you remember, they had a not so smooth ipo debut that overhang has spilled over to the nasdaq 100, which is among the worst performers of the big sectors this week. as i mentioned, it is up for the year, but among those f.a.n.g. names, if you can include apple in there, now you've got facebook, apple and alphabet all

slipping into negative territory for the year after this week's decline. the real hurt and the real pain coming from the chip sector, which has been the driver. again, chips up strongly for the year, but this week really seeing a lot of big names falling out of bed micron, which actually had fairly good earnings, down 10% for the week the biggest decliner here on the day. a lot of those big chip equipment names that have also helped lead the rally in the semiconductor space, lam research, applied materials, also big losers on the day and for the week finally getting back to dropbox, after pricing above the range, seeing some strong demand, coming public today. the first trade was $29, but still ending up with a much bigger pop than some might have thought. it priced at $21 a share up better than 35% on the day. that's saying a lot, kelly, on a day that was a very tough tape in technology in particular.

>> oh, yeah, especially yesterday was awful, today is horrendous and yet dropbox was popping the champagne this morning. thank you, bertha. let's get back to bob pisani for what's happening at the big board. >> we started at the highs for the week on monday morning and we ended at the lows the s&p 500, rather remarkable we're talking about a 150-point move in the s&p 500 for the week 1400-plus points in the dow jones industrial average problem for the week, there you go, there's five days. problems for the week, well, the two leadership groups, banks and techs couldn't do anything banks were beset by a number of problems, low yields, issues with the overall markets we saw all of these major banks, that's just today. most of these banks are down 9% or 10% essentially all are right back where we saw the lows in the middle of february those were the lows for the year a good part of these banks are essentially sitting at the lows for the year

other issues floating out there, bertha went over all the issues with tech stock but the existential crisis with facebook created the problem with that whole sector f.a.n.g. stocks were weaker as a result of that it was a mess and didn't end anywhere near any kind of bounce there was no buying interest overall here leadership, well, the problem is we did have a nice week in energy stocks. we had a nice week in utilities. we had a nice week in reits. none of this matters in terms of what moves the market because utilitieses are 2%, reits are 2% of the market. with tech and financials down this much, there's no way the market can even pretend to rally. the ultimate issue is trade wars are perceived to be a threat to the earnings we're talking about 20% earnings growth this year every single quarter this is remarkable when you have somebody come along and say, we're not sure, the global industrials may have a problem with that, how do you model? it's not clear how to model. that's why there's so much kay

yot. look at the third quarter, 22% somebody came along and said, as a result of the trade wars we now believe it's only going to be 18% that's a problem for the markets. nobody can model it because we don't have any numbers to plug into the model you get this chaos you have buyers walking away the volume was not very heavy. buyers walked away normal trading pressure and the market goes down when everybody says, i don't know what's going on, i'm not buying any of this we need to get people to have more conviction about the stock market before this starts to rally. >> bob pisani there. joining me to talk about this, cnbc senior commentator michael santoli along with evan newmark and jim evans. all 30 dow stocks lower for the week the weakest was 3m nike was the only name positive after earnings yesterday over in the s&p, eog resources was the big leader but the

laggard was abvi after poor clinical results you look at some of the sectors, energy down 13%, utilities down 15%. i mean, this basically is the 10% correction. >> it's a compound correction. we had the first leg down 10% or 12%. this is a revisiting of the lows testing the nerve of people who bought that dip before we had gotten down into the zone in the last couple of days when all this is nearby the 200-day average of the s&p, we closed three points above it today, the market will always go down and see if that's going to hold it's like telling a little kid, don't put your tongue on the 9-volt battery they're going to do it. >> don't lick the frozen pole and all that. >> exactly bigger picture, there was a liquidity squeeze. that just raises the general risk level on the dashboard of investors out there.

the environment's a little less hospitable we went from high liquidity, high growth, tailwind environment to lower liquidity, growth may be peaking and policy noise. >> plenty to talk about on the trade front but quickly on the federal reserve, some pointing to the stress. we mentioned in saying, this is kind of emblematic of when you have bear markets in bonds it's not as if the long interest of interest rates are going up dramatically but there's a sense there's a lot more supply out there. it's starting to push things up, especially on the short end. people grapple with that. >> the last nine, ten years we forgot about what normalization is about normalization is about days like this a few years back or before 2008, 2009, you'd have a day like this and you'd go, it's kind of okay. but there have been so few days like this over the past eight years. especially over the last two years that people are like, well, what's going on. >> even the correction we've had when they've been sharp, the

comeback has been sharper. >> people are buying on the dip. as you know, i've been cautious for most of the last nine months or so. i don't see a reason to buy. bob pisani said earlier, you need some enthusiasm as long as there's this trade uncertainty, as long as there's the belief, which i think is the case, that this is not going to resolve itself in one press conference or one round of negotiations with the chinese. this isn't going to go away. >> we went through last year with so much optimism in the markets and complacency -- even when we had crazy headlines out of washington every day, too what's different this time >> i will say pessimists always have better facts but optimists make better money. being long, staying the course that's better than trading on the news i think this is different from the correction we saw in february now we have new news we have information about the risk to earnings for corporations and the probability those -- you know, the risks are going to expand. we saw john bolton take over as

national security adviser. he's a hawk. that increases the probability we go to war on the north korean peninsula or in iran we have trade sanctions. these trade sanctions against china, they're minor but they open the door to a broader trade war. the probability of things that will affect future earnings have gone up in a dramatic way in the last 24 hours. i think that's what we're seeing today. >> fair enough there's the volatility gauge shall we talk banks? one of the hardest hit parts of the market, bank of america down 5% today wilf back more with what's going on there. >> let's have a look at the ten-year treasury note i think that tells the story for the banks. it was up 2.88 over the course of the week. it has slipped now to 2.80 you can see that significant selloff, so buying of the bonds, risk aversion pushing into that, not just the fed bank of america on the week and it tallies that selloff as we've seen with the yields perform

bank of america is seen as the most interest rate sensitive of the bigger banks because of its high portion of retail exposure, also high number of deposits. >> down 9% on the week. >> pretty extraordinary. and over the last two days, most of that selling. look at the trade today as well that we've seen. it's not just bank of america. i mentioned it's a high retail bank but investment banks selling off as well. morgan stanley down 5% jpmorgan 3% after being down 4% yesterday. goldman sachs down 3%. bringing it back to the wbw bank index, banks have led the market down over the last two weeks start of the week it was other things like facebook and tech. kbw shows you just the last two days where banks have led the market lower pretty much flat since the start of the week. >> but now it adds up to an 8% drop. >> 8% drop over the last two days just as i round things off, if

they show it, over the course of the year, banks lower for the year as a whole. >> people all along have said -- people bullish on the banks, look, it's more about deregulation it's more about those forces not so much about interest rates. >> by the way, i don't buy that at all i mean, if you talk to people who work on wall street, i know people want to believe there's going to be a return to the -- it's just not happening. >> what about bb&t, regional banks. they've been the leaders it's not all about investment banks. >> i understand that but in the financial sack tore there's a believe -- gold manl sanction came out, 1,000 new banking -- it smells like the banks have gotten in terms of the share prices way ahead of themselves i doubt there were many buyers of goldman sachs at 280 a share, wherever it was trading a few weeks ago. >> it's ultimately about interest rates and all these things come together why are trade wars bad they're bad because they increase prices. increase in inflation, which

means the fed has to react which means the yield curve doesn't steepen. the banks need to steepen. if it doesn't steepen, they won't hit their profit targets ultimately this is all tied together we basically need to see a steepening of the yield curve for banks to hit their profit -- >> we have been talking about short term overnight lending markets where you've seen a little bit of this stress. that's the cost of the raw material for banks, in a sense that's been going up >> they've been slapped with a tariff, too? >> in a way. >> banks have done well, like tech had done well this is a risk-off general sentiment. i would go back to bank of america. 5% today, 4.5%, whatever it was, astonishing in terms of sudden unwind of a position that people were comfortable with. we've seen goldman sachs' earning be volatile over certain quarters but bank of america has been this staple, still got - >> everyone was saying, look

what a great job they've done. remember the trump rally when it was really on bank of america -- >> this market finds its footing and people say bank of america is one times two book value. it's going to go up against. if all of a sudden it's all smoke, no fire, then - >> easy target for people to take profit in or raise cash it would have been up from a year or so ago still, big, big selloff. >> also, as you said, if it's seen as the most interest rate sensitive, and that's the discussion everyone is trying to figure out, it explains -- well, you have a soccer -- football game to go watch. >> i do. >> we'll let you go. >> thank you we basically sat in every chair this week. >> yes, we have. that's the kind of week it's been thank you. >> my pleasure. on the tariff and trade front, china did respond to the tariffs imposed by the the. the chinese ambassador to the u.s. saying he wouldn't rule out the possibility of chooip scaling back u.s. treasury purchases. joining us on this is john, portfolio manager at western asset. john, first blush to you, is

this just talk or something more substantive here in this threat? >> well, i think china will retaliate. i think they've made that clear. they are retaliating in terms of selling treasuries, that's on their list it's not high on their list. it's not their preferable means of retaliation in terms of what we expect, you see more direct targeting of u.s. exports to china like they've already done that's a very concrete targeted measure they can do. and i think they're going to sell treasuries very limitedly, if at all. it's just not in their self-interest at the moment. it has currency implications and i don't think that makes sense from their perspective >> put aside the question of what may or may not be in their self-interest. we know they don't -- they obviously don't want to get involved in currency manipulationle and things like that but let's say that they view this as just a longer term or short to medium term

negotiation. why wouldn't you go directly to the treasury market if it's just seen as a negotiating tool and not in terms of its monetary implications >> well, i think the answer is they just have better options. some of their better options would include the limited tariffs they're going to put on american goods we've seen that. they announced today $3 billion of goods they're going to put tariffs on that's in response to the aluminum and steel tariffs from a few weeks ago. i think they're going to make a similar response to the newly announced tariffs from this week again, the feature or the benefit of those is they're direct, concrete, well targeted. from china's perspective, that's a more effective tool. we're selling treasury, it's not very targeted, not direct in terms of being responsive and not consistent with their self-interest here look, it's on the list but i don't think it's very high >> i would just say, look, if china, they want to -- if

they're going to manipulate it down if they start talking about dumping treasury, it will push the currency up. >> i totally understand. my takeaway over the last few days has been -- >> why not just target the u.s. states who make soy and the trump supporters and -- >> i totally understand what they're doing. i think if i was a -- on the chinese side here, i'd be going, they're playing it exactly the right way. my only point is that we have a treasury that needs to fund itself and that china can really quite easily demonstrate their overall power much more than hurting soybean farmers -- >> they need those export jobs in china they're not going to mess with their currency and send it up. >> the chinese government and chinese people can take a lot more pain than the u.s. people can. >> the swings between the demand

and supply of treasuries on a monthly basis from all over the world is tremendous. you can't just say i'm going to mod late it a little bit and i'll know what the rate -- >> john, last word. >> if i could take a broader perspective. the fed hiked rates, upgraded their forecast and yet treasury yields are lower on the week the reason for that, even with the china news you're talking about, the reason is treasuries continue to be the best diversifying asset in an investor's portfolio this china story is interesting but i wouldn't want your investors and viewers to lose sight of that fact treasuries have an important role in portfolios in providing that diversification >> there's the ten-year. great point. john, thank you. 2.815% the ten-year has been the least volatile of all the asset financial classes today. let's talk to leslie picker. >> it appears at this point in time that hedge funds aren't really the main drivers for the selloff we saw yesterday and

today. contrast that to what we saw earlier in february where there was a lot of the algo activity, a lot of unwinding credit suisse are -- the hedge funds aren't making major moves that would reflect big concerns about a larger selloff here. it also doesn't appear they're super optimistic that global growth will turn to churn and we'll see the market move upward from here, which is a common refrain we've seen from hedge funds. they've taken these opportunities to buy on the dips here doesn't appear they're doing that today in terms of net positioning or the amount of leverage hedge funds are indicating, that indicates yesterday's volatility has not prompted major unwinding of their position. but they, according to cs, they're rotating into tech and reducing exposure to inflation sensitive rate positioning, u.s. banks and metals, indicating that hedge funds do believe they could be -- the markets could be

lower for longer >> leslie, thank you it's been a choppy year for hedge funds. i'm curious to see how they'll hold up. >> the contrast leslie points out is significant because in late january hedge funds were extremely long the market, heavy equity exposure, a momentum chase going on that got unwound rapidly and violently into the february lows now they have lighter positions, they're not forced to be sellers. maybe they're letting the market come in. doesn't mean they're going to get it right but it does -- it does mean they're not going to be - >> we don't know that's exact will you the race, though, mike. >> we know that. we aggregate >> when you see these selloffs, a stock like facebook, the hedge funds have been big chasers, the netflix -- >> it's the most consensus trade in - >> i'm sure a few hedge funds were hurt badly. >> no doubt about it. >> jim will give you the final say. >> i would say stay long i'm concerned treasuries won't

continue to hedge against declines in markets. i think if we get an inflationary pop, you have trade constraints with record low unemployment, i think you end up with stock decline at the same time so make sure the portfolio has a diversifier to protect against inflation. >> bitcoin or -- >> not bitcoin, not bitcoin. >> he's singing my song now. all of a sudden santoli is singing my song. >> i'm saying if you're afraid, that's where you go. >> i think that's a nice place to go. but there are -- i mean, there are other options out there, too. you can use cpi swaps -- >> oh, lord. all right. >> we can talk about that another time >> he can make one for you right now. >> it's been a effective tool recently. >> thank you it does highlight the importance of watching that data. still a lot more ahead on the "closing bell. next up, famed tech investor dan niles. see what he's doing after facebook's terrible week

he's with us live. plus, big fear in the pig pen. if china strikes back against u.s. tariffs, will the hogs get caught in the crosshairs this is the "closing bell" live from the new york stock exchange with kelly evans we're back in two minutes.

welcome back sharp declines on the close for the major averages nasdaq was down nearly 2.5%. for the week, the nasdaq down 6.5%, one of the worst performers was facebook. for the week facebook shares now down 14% joining us on the phone is dan niles, founding partner of alphaone capital partners. great to talk to you on a day like this. just to begin with, facebook, what is the story there? are you buying the stock after all the weakness they've had on this data breach or do you think there's more trouble to come >> we ended up -- when we saw the data breach, our first reaction is, this isn't that big of a deal from a business perspective because nobody's got any practicasswords stolen, no things stolen, no credit cards stolen like we've seen with equifax and things like that then i thought about it, the politicians will blow this up into a huge are deal, its an

election year, everybody wants to blame facebook for, you know, the loss - >> everything. >> everything, right they're to blame it can't be them we sold the stock above 170. we figured it would go lower if things heated up and today we bought it when it broke to 160 and got to the high 150s i think it's overblown, is what i'm saying, but it doesn't mean we're not going to get nasty headlines over the weekend so, you have to pick a level where you think there's good value. >> we've seen some investor surveys showing advertisers still seem to be buying as much as ever with facebook's platform we also had another high-profile case of delete facebook just this afternoon, it came from elon musk. i'm sure you saw this. musk tweeting in response to the delete facebook post brian ac n acton, musk took down personal

page and tesla facebook page is there aid user revolt you're concerned about? >> not really. this isn't the first thing we've seen remember google and the blowup over youtube extremist videos. nobody's even talking about that anymore. i would argue that's a much bigger deal than this. so, if you look backs over the history of tech, we have apple antennagate, samsung galaxy because the phones were blowing up on planes to me, this is not -- i mean, yeah, you have some people making some headlines, but, you know, i feel like it's going to go the same way as the google/youtube stuff, which i think is a much bigger deal than this is. you have to pick a level the quarter should be fine, it should be decent i think we'll look back in six months and go, this is politicians just heating things up because they want to get elected and they all have to run for office in 2018 i think that's what's going on >> dan, big picture you could

tell this story as something like, yes, obviously you don't want a data breach but ultimately, people are concerned that facebook is too good at what it does and it can deliver you hyperrelevant advertisements it's that powerful i wonder if the example you want to look at in the past is microsoft. microsoft was too good a deal for consumers, it was bundling everything together and giving it to you and the government said, nope >> and the shares did horribly for a while. >> you bring up a really good point. here's the thing, i mean, you had to pay for microsoft products facebook is technically free i can imagine if facebook said, okay, why don't you pay 50 bucks a quarter and you can have access to your facebook. i don't think most consumers would go for that because we're used to in the old days -- i remember the rabbit ears on the tv that i used to watch in black and white. you're used to having that for free you're used to being able to search on google for free. all these companies go ahead and start charging you, but, you

know, i don't think most people would honestly go for that versus what they can get today for me, getting hyper-targeted ad, i might look at an ad i'm interested in rather than something for baby food gwynn i don't have a baby. for me, there's pluses and minuses. the payment you have for getting something for free is valuable for people to use, you're looking at ads just like you did for television for the last 50 years. >> dan, it's evan. what if you're wrong when will we know if you are right that it's going to be business as usual or what if it turns out that users actually, for whatever reason, do change their habits, people spend less time or there is a trend that maybe it's not the end of the world but it's not a good trend. when will you see some data that will tell you that that is the case

>> i think you'll go over time and see the data as it comes out. it's too early they'll obviously report results and they'll give you some feedback in terms of what's going on mark zuckerberg actually commented on that, that he hadn't seen a whole lot of traction in terms of people deleting their facebook accounts as kelly mentioned, there have been some high-profile ones like elon musk. you have to sit back and compare that against the number of people that they continue to add. i think it's something you watch as you go forward. but it's not like it's easy to get off facebook if you get off facebook and go to another service, if your family isn't there, there's no use to it. are you going to completely shut it off i suppose you could, but it's not -- there's a network effect here this makes it incredibly sticky and makes it hard to switch to something else this isn't like amazon you can say, well, i'm buy it off ebay or something all your friends are on

facebook you're not moving to google plus - >> or going to instagram dan, thanks for joining us dan niles there, who is buying some facebook after this 14% drop this week. here's a look at how we finished on wall street today. the dow was down 424 points on the bell, following yesterday's drop of more than 700 points on the week the s&p and dow are down more than 5%. the nasdaq down more than 6% the nasdaq was down nearly 2.5%. the russell small caps weren't spared either. it's time for a cnbc news update let's flip over to sue herera. >> hello here's what's happening at this hour crews in washington, d.c., are getting ready for tomorrow's march for our lives. organized by students from parkland, lorida's stoneman douglas high school. the march is expected to draw at least a half a million people. police storming a market in southern france to end a hostage situation. they shot and killed the hostage taker, but three people were killed and a dozen others were

injured in the incident. french police say the gunman himself called himself a soldier of the islamic state. as kelly just mentioned, elon musk deleting the facebook pages for his company's tesla and spaceax in a challenge from twitter users. musk said he didn't even realize they had facebook pages and a short while later, they were gone. a japanese youtuber ticketed for going 149 miles an hour on a motorcycle that's a record for speeding in japan. at one point he was going as fast as 173 miles an hour. he posted video on his youtube channel and he said he did it to get more viewers. since we've been covering it all day, i'm sure he did get more viewers. >> that's just wonderful that's awesome you know, it - >> there you go. >> ban him for that, youtube >> have a great weekend, kelly. >> you, too. we'll have much more on this

bad, awful, terrible week for the markets right after this the nasdaq down 6.5% in the week lost nearly 6% for the s&p the dow down 5.5%. the russell down nearly 5% we're trading one sector that's had a huge run with the "fast nerars when we come right back on the "closing bell." at the lexus command performance sales event. current qualified lexus owners can get up to $1,000 cash on select 2018 is models for these terms. experience amazing at your lexus dealer. i thyou never got the brakes looked at?l... oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital.

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facebook under fire. the company taking heat for what some are calling the biggest data breach in social media history. >> people are finally beginning to recognize that this is not the fun and games, innocent place they thought it was. >> the saudi crown prince is visiting the white house today. >> should the president pull out of the iran deal >> we'll talk about that today. >> the federal reserve raising interest rates by one quarter point to a new range of 1.5 to 1.75%. >> zuckerberg breaking his silence. >> this was a major breach of trust. and i'm really sorry that this happened >> we do not sell your data. >> president trump announcing a new round of tariffs, this time targeting china. >> the word is reciprocal. that's the word i want everyone to remember. >> really ugly session on wall street with the dow dropping 723 points. >> fears of a trade war with china taking a new turn. the country's ambassador to the united states saying moments ago that china won't rule out scaling back the buying of

treasuries >> i will never sign another bill like this again >> what a week it has been look at the way we're going out. the dow dropping about 425 points on the bell that brings us down to 23,531. >> earlier today the president did sign an omnibus spending bill that he had earlier threatened to veto it promises record defense spending so, you should have seen the stocks afterwards. joining us to trade this sector, our "fast money" traders, david sieberg and mike, welcome to you both lockheed martin was up, saying we're number one, no one can match us are all the gains in the stocks? >> i think it's a home run for the industry, obviously. in my opinion, it's boeing, lockheed and general dynamics the beneficiaries here lockheed is the cleanest play in the entire space they're 100% defense you have boeing 50/50 commercial/defense

and dynamics has biz jet lockheed is the cleanest play. when you look at boelg, you can make the argument that the defense side of boeing has been dormant or not necessarily a driver of the stock over the past several years so, that could be an uptick given the strong cash flow story from their commercial side if there's any sort of weakness on this, like, fear over china pulling back, it could be an opportunity to jump in >> mike, boeing was one of the only dow names positive today at all. and it had a pretty tough week, too. what do you think about that name or the whole space? >> well, you know, it's interesting. of all the names we were talking about, boeing is easily the largest, about $100 billion in revenue. obviously, a big part of the story will be the commercial side obviously, there are trade war concerns on the commercial side. that's kind of the off-setting issue, specially with boeing i think raytheon might be the interesting one to take a look at here. that one is about a quarter of the size in terms of revenues. of course, they're making a lot of their money on missile defense systems like patriot, which is one of the most well

known. i think what's interesting about this is also the scale of how much larger this was you're looking at maybe $55 billion is what they were expecting to get that's a pretty big increase you know, you were talking before about lockheed and the 35 is really the one that's the biggest one. that's always been a dodgy play anyway i like raytheon. >> guys, thank you one's in a jacket, one's in jeans. maybe that's why he's wearing the jacket. >> it's casual friday, come on, kelly. >> not allowed on the floor. >> i know. tough rules down here. >> thank you 20 minutes to go until you can catch all the "fast money" action beginning at 5:00 p.m. eastern time. much more "closing bell" ahead. before the break, the 11 s&p sectors for the week that was. what a week it was back in two. at fidelity, trades are now just $4.95. 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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. welcome back the retail sector fell more than 4.5% this week nike was one of the few names in the green today on the bell. joining us is stacy, president of sw retail advisers. a lot of different things. retail in the past we've talked about, death by amazon sector, what's going on, but why do you think it's getting carried out

in this broad market selloff does it have anything to offer >> i think we had this big rally in retail at the end of the year we had tax cuts, the perfect setup for holiday and everybody got excited. reality check, we still have the same structural problems as we had before there are certain sectors like footwear that still has some life nike, which is barely positive holding up better than the market look what's happening with them. their north american business was down 8% this quarter and adidas was up 7% those pesky north american retailers are causing trouble in the market. >> what do you think >> i wonder -- there was a story when we rallierallied, the pie enough now, for the businesses to stabilize - >> for retail dollars -- >> while they get their act together is that not really true? was it never true? >> i don't know if that's true i think the good news is that there is still a lot -- or bad news is there are a lots of

store closings going on. eventually we'll be a little more rationale here. i think to watch out, a lot of retailers are telling us they're still in investment phase. if you look at walmart or target, we're getting comps but we're not getting earnings and the street was really looking for that in 2018 and they're not getting it so, these stocks - >> corporate tax cuts are bei i spent. >> definitely being spent and more than that. >> i know you're picking up a lot of names in the sector, evan. >> we had jerry over here, the old ceo of toys "r" us i asked him, and i'll ask you the same question, from an -- put aside the targets, the walmarts, the costcos, maybe, you know, some of the other big -- home depot. is it investable space once you get outside of those big -- the big, mammoth -- meaning, can you put your money in and go, you know what, eight years from now, ma macy's will be around and market

cap will be bigger than it is now? >> that's a legitimate way to think about the space. who are the weak guys, only getting weaker and where do you invest in the huge target is huge and they guided down they're investing in brands, remodeling their stores. are they a winner in the end is macy's a winner >> is macy's a winner, yes or no >> really putting her on the spot. >> come on come on. >> that's the idea but we can't predict these things. >> everybody remains -- but they're winners in the end walmart, target, macy's and everybody else - >> even though macy's down 4% today. thank you very much. awe wild ride for stocks the dow finished 10% off its recent highs a portfolio manager joins us with where he's finding opportunity. you're watching cnbc first in business worldwide alerts -- wouldn't you like one from the market

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welcome back dow and s&p just had their worst week since january of 2016 the dow finished the day officially down 10% from its recent highs joining us to join us is chad morganlander we thought you were going stock picking out there. anything popping up on your list >> we would go with some of the consumer staple companies that have come down quite a bit so, a couple of names, hershey's, hormel for example, mccormaccormack, pharmaceuticald

drug companies look attractive. >> even with food inflation? we saw general mills get whacked this week. >> on that downdraft, i would be a buyer of general mills i think the multiple makes sense now. and over the next five years -- and you have to have a five-year perspective for all these companies i'm mentioning i think they'll do quite well. we'll have these companies that are going to have consistent free cash flow in this volatile type of market environment, that's where you want to overweight your portfolio. >> what about tech, chad >> so, we're staying away from the f.a.n.g.s at this point, though we would be invested in some of the big boring tech names, oracle, as well as cisco. we think there's value there and predictability of free cash flow with a lot of cash on their balance sheet and very little debt and dividend growth. >> so boring is beautiful. >> boring is beautiful, absolutely. >> that's the message from washington crossing advisers thank you very much, chad. >> thank you >> i thought oracle was down

like 10% after earnings. i'm not sure it was boring. >> yeah. >> i think it was probably down 15% on the week. something like that. the stock was not boring. >> we'll see if it returns to comatose if you're just tuning in this afternoon, it was another tough day for stocks biggest tuning in it was a tough day for stocks biggest losers were pfizer, dupo, d ldn ntangomasachs. it was a long list those are the decline he is, up to 4% in dupont's case we'll be right back. let's get started. show of hands. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors.

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china responding to president trump's tariffs with a list of 128 u.s. products to target the cloinz ambassador also said the country could stop buying u.s. treasuries. jean wells has a look at one of the specific products on their list and the impact it could

have on u.s. farmers and eunice eun has the potential threat to the bond eunice, a busy factory for an early chinese morning. let's begin with you. >> reporter: that's right. it actually runs 24 hours. when you are talking about the market, the markets were jittery in part because of the uncertainty over where the u.s./china trade relationship is going. that uncertainty was being matched here on this side of the world perhaps nowhere more than where i am right now i'm in a town which is essentially where the u.s. trade deficit was born american companies come to factories like the one i'm in, and then these factories churn out men's shirts, toys, gadgets that are eventually sold to u.s. consumers. i've been speaking to a chinese factory boss as well as american executives who source here who say they are worried about a major disruption to trade, which

could cause a lot of problems to the supply chain here as well as to their businesses. and that really was emphasized again today when the chinese government imposed tariffs of their own on $3 billion worth of american goods there were a lot of smaller items, or -- that would include nuts, wine, as well as seamless steel pipes. this was really seen as a warning shot, and also a somewhat moderate move and that's because those tariffs were a reaction to the trump administration's steel and aluminum tariffs from a couple of weeks ago and not necessarily from president trump's larger package and announcement that they were going to b more tariff s as well as restrictions >> tariffs could have an impact on the pork industry here in the

states that's where jane wells joins us now with a look. >> kelly, let me explain how the sausage is made. your average american hog may sell for $150. out of that $53 or a third goes to exports and $9 of that goes to china, which currently goes there duty-free. but the chinese want to go from zero to 25% tariffs. that's what they are threatening and the national pork producer's council says china is the second u.s. export in terms of dollar volume behind japan and mexico hog futures have been dropping china is porking up its own domestic production, and it comes at a time when rabo bank warns we may be in a pork gluchlt pork may just be in the beginning. >> in a time when the farm economy is at 12-year lows it's not a time to close the door to these important markets overseas. >> now a lot of rm if aers voted for donald trump while newton says they like

trump's policies on regulation and taxes when you have 25% of farm products in the u.s. going outside the country, free trade is big deal. the usda says they stand ready to support agricultural producers who may be harmed. it's going to be interesting to see how this affects smithfield foods a huge u.s. producer owned by a chinese company if these tariffs expand to harleys, we may be in a situation where there is a double whammy of hogs and hogs funny line, nobody is laughing. >> i'm thinking about how much i love pork buns this is a big deal, especially in some trump states jane, great stuff as always. thank you so much. it was a volatile day. we wilrep l cathe headlines and check on after hours movers. dow down 424 demand a cfa charterholder.

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bump stocks, we will ban all devices that turn legal weapons into illegal machine guns. back over to you. >> the attorney general announcing regulation effectively banning bump stocks as well. guys, thank you evan and mike for joining me to close out the week a brutal week it was have a great weekend everybody "fast money" starts now. >> "fast money" starts right now live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders on the panel today -- tim seymour david seabur steve grasso guy adami the high flying semistocks getting crushed this week. one trader says there is more contain to come. plus the rise of the alt coins. the chief officer at stellar will be here to tell us about how he plans to be wall street's favorite coin. a selloff on the street. the dow now firmly in correction territory, after wha