contracts? >> when you look at it broadly, it's coming under pressure for a lot of reasons one would be fading pandemic tail winds that is a question on the street that some financial analystings have they will say government business saw a huge growth during the pandemic but what happens post pandemic. pal intear will contract it is winning business and contracting with government agencies. that does it for "the exchange." thanks, everybody, for tuning in "power lunch" begins right now indeed it does, kelly. welcome, everybody, to "power lunch. here's what we have got in store today. steep losses to start the week which stocks have you not buy but avoid. we will talk to a market strategist who has list of names including blue chips you may already own. blue skies ahead bark close turns bullish on the airlines, prefers some stocks over others. we will tell you which they are with the analysts behind the

call getting tough on china the biden administration is readied to pressure beijing on its trade commitments. the u.s. trade representative speaks exclusively to "power lunch" about her strategy, kelly. >> tyler, thank you. hi, everybody. here's where the markets stand off the session lows where thedown was down 500s. now it is down 365 s&p 500 down, nasdaq down 3. % wti crowd is the $78 a barrel arc seven-year high as opec reportedly decided to keep production at relatively current levels nearly a 3% gain today energy stocks the best performers in the s&p. devin up 6.5%. marathon gaining almost that amount facebook seeing its biggest one day decline signs last november. google and microsoft also hitting their lowest levels since july amazon on pace for its longest

losing streak since 2019 the social stocks getting hit hard as well twitter, snap, and pinterest all seeing big loss today. twitter is down 6.5% could today's selloff be part of a massive reset for the market mike santoli is at the nyse taking a look. >> an accelerated day of the reset that's been going on weeks if not months. what do i mean the large cap indexes catching down to the experience of the last five or six weeks ago today it is mostly the mega caps that have take ten s&p 500 back to where it first traded in late june you have essentially swept aside three months worth of that grinding uptrend that was largely attributed to some of the big growth stocks. along the way, a couple of relevant streaks have now ended. it was one of the 12 longest period of times without a 5% pullback in market history that's over. what comes next? historically, you have some further extension to the

downside, 8%, 10%, half the time you get a regular correction but never in history was it the ultimate peak of a bull market when it ended those streaks. also seven straight months of gains for the s&p is also swept by the wayside what does it mean going forward? we are seeing the growth stocks having a reckoning and coming back to the pack really, the average stock has gone sideways for a while now. small cap stocks, the equal weighted large cap universe, the banks, the energy stocks there is a lot of push-pull under the surface. third quarter earnings might be getting through further before we rebuild to the upside and all the policy noise out there. it seems as if we are setting ourselves up for relief if just anything gets done in washington, d.c. >> do you remember what happened going into the end of last year with tesla and the rhett of it there was yikes a yolo etf

and ipo play doubled is that going to be the energy play right now >> energy has a tail wind coming off of this cyclical low it is very much the acutely cyclical area of the market. also arguably underowned you have huge pete buttigieg of fund flows in energy shares. what i don't think -- which would be an jous to the tesla disruptive growth mini bubble that we got last year. there is not really an open-ended mega bull story in place for energy yet i don't think -- it didn't feel like we are going back to the mid 20 0s or 2011 where it was peak oil that was really the story. it appears to be to be part of the cyclical revision along with banks. our next guest says it is time to tighten your risk exposure and is using his cell model the identify stocks you may want to avoid in q4.

let's bring in michael can't wits great to have you with us. when you say tighten your risk exposure, what does that mean? what is that code for? >> we are at the part of the market cycle right now, putting today aside, where high risk doesn't equal high reward. we are moving as long as earnings begin to stag nate as the macro data is at peak levels -- so this is not time to go for a reflation trade, a swing for the fences it is really lie-risk, high reward we are certainly moving in that direction you. >> say dejunk your portfolio you have got a list of about 40 different stocks that you say investors should avoid which i guess means if you have got them, get rid of them, go you don't got them, don't buy them this is kind of a sell list. tell me how these stocks -- and then maybe kelly will follow up with specific names. tell me how these stocks ended

up on the naughty list >> you will see stocks like disney, chevron. a good company can sometimes be a bad stock and a bad company can sometimes be a good stock. that's dependent on the market cycle and the macro environment. a lot of these stocks are flagged. as they are more volatile, the fundamentals are more extensive than their peers and there is some accrual accounting that investors usually look for as flags as we look into earnings quality, which will be paramount going into 2022. >> there are names here, michael, that include boeing you mentioned chevron, disney, wynn resorts cruz lines, caesar's and sands general electric also on the list are you agnostic in terms of things that pops up on the

screen or do you try to go through and say actually some of these names we think are good opportunities? >> this sell list is really just a cautionary red flag list it has attributes that investors really start to navigate away from as the cycle matures. as we go into 2022, we are expecting a synchronized global slowdown we are already beginning to see earnings stag nate as mike santoli just said, many stocks have gone sideways here so it's really become a stock picker's market. those with positive momentum are seeing -- >> michael, i have got to kell you your backgrounds or your home or wherever it is is lovely, i am going to bet you on in the over/over for best back ground of the afternoon. i will mention that to my wife. the jump in holiday travel

bookings helps airlines. southwest bucking the down market rising after an upgrade at barclays. they expect next year's bookings to exceed 2019 levels. domestic bookings for thanksgiving are up 51% from a year ago still down from 2019 barclays saying we are seeing bluer skies ahead for airlines here is brandon -- from bark close. it is great to have you. maybe i will pick up on what was on michael cantor wits's list. american airlines. we know they have issues with their lie debt load. where were you place american in terms of the bluer skies you are seeing here for the whole industry >> kelly, good afternoon, thanks for having us on again we are upgrading to a more favorable view because airlines are trading off of the highs

they reached in april. american airlines have a large balance sheet right now they are going to pay down over the next few years. we are long the ultralow cost or low fare airlines. we upgraded southwest today, long spirit, frontier, we are encouraged by those who are lower seat economics what we don't know when business travel fully comes back. i think for the levered names we need business demand to approach levels of a sellback in 2019 to help them pay down the big debt loads they took on. >> sure. let's ask about the holiday booking trends how strong are they? up 50% from last year -- well, last i don't remember was so bad, where do you see the most operating leverage from the booking rates what >> we are hearing from management teams is the holidays are, quote, unquote, looking more normal as to what they would expect during a

non-pandemic period. when we saw the weakness in delta in august and september which led to a soft fall period c but i think the expectations are -- remember, we are missing the business traveler during the non-peak days during the weeks tuesdays and wednesdayed are very light right now fridays and sundays if you look at the tsa screen data are peak. people are not afraid to travel for leisure. once they start traveling for office we should be able to get back into those stocks we are thinking after the holiday period. >> make a distinction between southwest and the others you mentioned, frontier, aleejant, frontier, sun country and spirit as to where the quality is among those companies. some of those companies have spotty performance records and

sort of public relations or public acceptance. >> tyler, thanks for the question i am going to be a little careful with this one. objectively speaking, though, you know southwest on the large company side and aleak yantd on the small cap side have almost no debt. from a financial perspective they are going to be at the top of the list. you are probably referring to some of the operational issues that a lot of carriers had this summer especially spirit, even southwest had some we had labor shortages across the transportation industry. the airlines are having problems as we ramp up operations getting back to prepandemic demands. i think this summer was lot of growing pain for carriers. presumably, we should solve this with higher wages and hopefully more employment going forward. >> alrighty, thank you very much

brandon, we appreciate your time today and your insight. >> thank you >> for more on the airlines and the stock moves you need to know, sign up for jim kaymer's investing club he will be sending writing for the website and sharing his insight into the market. you can join >> so easy point it right there at the code cool coming up, a "power lunch" exclusive with a u.s. trade represent catherine, the y plus our trading nation team will weigh in into the social media selloff and where they are finding bargains amid the climate. and how elon musk managed to vitenaga the semi shortage when other automakers couldn't. which saved investors over $1.5 billion last year.

that's decision tech. only from fidelity.

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welcome back to "power lunch. i'm dominic chu as we continue to watch the stock selloff here, especially in those technology issues, we want bring your attention to a market flash on the financial technology and payment players, square, paypal, firmly in negative territory 4 to 6% downside now they are around 20% off their mid summer highs -2 retail and crypto trading side of things, coinbase and robinhood are also trading

lower: keep an eye on fintech, crypto kelly and tyler, i will send things back to you no what's the reason here? >> we know there is a stock based selloff on everything that has a growth valuation component to it. it is not trade up tech, it is a lot of companies that meld the financial services side with the tech growth. so office little bit of a value component for some of these guys transaction guys like robinson and robinhood and market volatility, if things pick up maybe they make it up in trading volumes. >> make it up in volume. dom chu thank you. ahead on the show, oil trading just below $80 opec decides to stick with its output plan despite heightened crisis and energy stocks have been big winners this year. at least some energy stocks have been those have been. the s&p energy sector up for the year the best 3678 herbs. devin, marathon and diamonacdbk. we will dive into sector when "power lunch" continues.

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plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. welcome back in a speech earlier today, u.s. trade rep catherine thai laid out the administration's china policy review including upgrades

to the tariffs and trade calls with beijing we sat down with katherie tai's first-ever television interview. kayla. >> today she defended the biden administration's strategy to leave tariffs in place while carving out exceptions for businesses with a specific economic impact and coordinating with allies to place additional pressure on beijing. in her first television interview, she says she's under no illusions china will change its ways but she wants to reengage before potentially -- >> what is the rask that beijing retaliates again and what is the impact on the consumer if this policy creates further pressures on the supply chain? further price pressures on

american consumers and business? >> i want to take you back to something central to thatted a strigs and ustr, which is the deep sense of responsibility that this team has to well-being of americans, american workers, and our entire economy so in terms of setting out the parameters for our trade policy with respect to china, the goal is not to inflame the relationship or to inflame trade tensions the goal is to be very clear-eyed and very clear in our communication to make as successful as possible our attempts to effectively realign this relationship in the interests of the american economy. >> the administration has had a policy that it will not raise taxes on americans making less than $400,000. do you think the tariffs indirectly go against that pledge >> no. >> not at all?

>> no. >> one of our other pillars of your policy as announced today is revisit the phase one agreement and discuss with your chinese counterpart exactly where china is falling short and maybe where it has met some of its goals. i want to talk about the purchases specifically because the deal calls for china to purchase $253 billion of goods in the calendar year 2021. so far the u.s. has exported just $82 billion is it possible that china could buy a bunch of boeings or liquify natural gas and make up that lost ground >> we won't know what's possible until we start talking. >> is that something you will be discussing with them, how they can close that gap before the end of the year? >> certainly and let me make clear the phase one agreement is a live agreement. it covers more than tariffs and covers more than purchase commitments. i completely understand why those pieces get a lot of attention.

they have hard numbers attached to them. and they have metrics that people are very interested in tracking but this is the architecture of the relationship that we have right now. >> if you can't trust beijing to meet the very specific financial targets that have been laid out in the deal, how can you trust beijing to meet some of the more amorphous structural reforms that are targeted in this deal >> honestly, i don't know if i can trust beijing until i talk to beijing. >> but for that approach to work, there would need to be earnestness on the other side as well. >> uh-huh. >> president xi has shown no signs that he is interested in improving the bilateral relationship or ceding any economic ground or military ground for that matter what sense do you get that this relationship can improve and can avert a potential decoupling or another type of conflict >> kayla, that seems awfully fatalistic, the starting point of your question

again, i will just say we don't know what we can accomplish until we try in terms of how we accomplish, i think that that will be informed by the tone and tenor of the conversations that we have with china. >> in the direct talks that took place during the prior administration, the only women that were at the table were the translators. do you fear that because of chinese cultural norms that you won't be taken seriously as a woman leading the negotiations for the administration >> so much to unpack there you know what? i look forward to these conversations. i would say with respect to chinese cultural norms you don't have a chinese mother. and i would say -- i would say that i don't -- i don't fear chinese cultural norms n. in fact i am looking forward to

these engagements because they are so important to how successful the united states will be in the coming years. >> ambassador tai w-- the biden administration has said for a long time it wants to approach china from a position of domestic strength. i asked her weather current events in washington are projecting that strength and ambassador tai said democracy is messy you can see the whole interview on cnbc.com later this afternoon. >> question. her answers were sometimes disarmingly brief. did you get a sense that she was beyond guarded in that interview? >> well, she is an extremely guarded individual just by nature in her confirmation hearings, you did get a lot of packaged language but then again, tyler, this is an extremely sensitive relationship and she wants to communicate some very clear principles

but i would also note that the administration has a lot of voices on china. they have dozens upon dozens of officials at the national security council there is also the date department and the treasury department. there are a lot of cooks in the kitchen on this china policy ustr operates from a leading position specifically on tariffs and trade. so i think by nature she doesn't want to speak out of school, but she also doesn't want to preclude any potential outcomes by saying anything that might offend her potential chinese counterparts beyond what he she has closen to go out there and say. >> stay in your lane don't offend any others and keep it safe until we start talk. let's check on markets right now. they are a little bit messy today. democracy is messy so are the markets the dow industrials are off 353 points, 1% s&p 500 off about 1.5%

continuing to lose ground. the nasdaq, and technology and the names that have been suffering as interest rates have gone higher, down 2.2%, or 300 points there you see a few of the stocks that are suffering today. big tech, as you see there, all of those three blue chip technology storks all down about 2.5% now, a bright spot is merck, building on its gains from friday after positive results from an experimental anti-viral pill it is up 1.5% today at $82.65. >> tyler thank you very much. on "power lunch," everybody, tesla delivers despite a semiconductor shortage and engine number one is bullish on gm. and an all electric hummer an ev power run down. >> before we head to break it is hispanic heritage month. we are spotlighting cnbc business leaders and employees >> years ago, roberto gorcetta

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welcome back, everybody. amid this market selloff oil prices are surging along with it, the energy stocks look at wti crude, just below the $78 a barrel mark as opec decided to stick with its yut put schedule let's get out to the brian sullivan with more on the impact brian? >> kelly, hey, good afternoon. given rise in oil and grass prices there was some chatter amongst those of us that poll opec close that it might have been some kinds of drama at the meeting. not only was there no drama it was the fastest opec meeting every according to his royal highness 25 minutes

there have been multiday opec meetings the group is dialed in here's what they are going to do they announced they are going to basically continue on plan, that plan is to add 400,000 barrels per day prorated by member nation to the market every month. next month theoretically they will add another 400,000 the problem is that given demand around the world is starting to pop as we are seeing covid cases drop steeply in many places that may not be enough. there is a lot of demand out there. kelly, it is not just from all of us driving everywhere you have been on the roads you know that traffic in many parts in america has never ever been worse. but it's that because of natural gas prices soaring and coal prices by the way up 150% this year, there is talk and saudi aram co's head said today, this is hard to believe, many four plants in places like china and others may convert from coal to

oil so that they have enough power to heat homes this winter. think about that we are going to dump coal or natural gas and move to oil. some power plants are able to do that look at these stocks they are benefiting as well. be careful here because rig counts aren't up that much as a lot of these companies haven't been spending more money but for every incremental dollar up in the cost of oil they keep their costs down, higher margins and we are nearing $80 for a barrel of oil. opec is running the show. >> over the weekend it was said shale cannot meet this supply story. they were adding 1.5 million barrels a year going into the pandemic he says there is no way they are going to add that amount they cannot offset the need. again, that's going to drive prices up. we have a comment from the head of the iea who today said the

huge spikes in prices -- he was referring to natural gas but it is all related have nothing to do with the world's transition away from fossil fuels. >> if scott sheffield speaks you have got to lip. he is the only ceo at an opec meeting. he wants to understand their thinking as well i love that article he put out over the weekend russia and saudi arabia really are in control right now i also liked his comment -- i shun like it but it was interesting. he said, if we try, meaning u.s. producers, to increase production, we will be punished by our own shareholders. so think about the change that we have undergone, kelly for the better part of a decade, it was grow, grow, grow in the oil patch. now shareholders, the ones who are left by the way that are willing to invest in fossil fuel companies, which there are fewer every week, are saying, no, give us back that money it is the run of capital, not the return on capital.

sheffield's comments are really really eye opening but at least today not everything is down right? big tech is down big oil is up. how about that. >> welcome to 2021. >> very real return to capital brian sullivan. from oil to electric some developing stories in the world of autos and electric vehicles it is time for a power run down. our phone fill lebeau is here to help us put it in perspective. tesla reporting a record quarter of deliveries, a 73% jump over a year ago analyst' estimates marrone away, this split product shortages, supply chain issues, and meddlesomely, the semiconductors how did tesla do it when all the other auto manufacturers have empty lots and nothing to sell >> great question. one that not all analysts are

using today. all of them are saying tesla has done a wonderful job managing the chip shortage. what does that mean? how did they do it a couple of analysts said they have been prioritizing which chips they have been going after, the more readily available ones also there may be a more strategic relationship between some of the chip suppliers and tesla. those are perhaps insights as to why tesla have been successful and others have been stumbling make no mistake, you have got to take your hats off to what happened at tesla. they have been able to manage this crisis more effectively than other automakers around the world. that's showing in the number of vehicles they have sold this year tesla, those are worldwide deliveries, up 9 % for gm, that's just in the united states. make no mistake, tesla has been able to grow while other automakers, not just general motors, but all automakers have been struggling because of the chip shortage.

>> my understanding, tesla uses a chip architecture where they can substitute chips easily. other manufacturers are using older ones that are a smaller part of the supply chain i mention that because the other big news on the day is the on general motors front engine number one announcing a new stake in gm. they are throwing support behind their push to have 100% electric cars by 2035 if they were to go down this path it would seem they would end up having premier semiconduct technology in order to do so >> sure. make no mistake that general motors understands what it has to do. engine number one is not making an activist role in his stake with general motors. it is taking much more of a supportive role.

they believe in what gm has planned, what mary barr has planned for the future pumping $35 billion into those platforms. it is going to be all electric by 2035. they have already announced four battery plants there are going to be more here in the united states that's just in the united states there is a ton of potential there. then when you talk about who might happen in terms of autonomous and electric together look at their subsidiary crews which is one step closer to offering autonomous ride share in california. many believe that will happen next year. cruise hasn't set a target daylight for that happening. but that's what engine number one is looking at. they think gm shares would triple over the next five years. >> that would be significant phil, a final word on where we are with the auto market more broadly speaking the argument that cathie wood is making is that this is more than just a production issue, there

is a structural shift away from gas-powered cars sales have fallen 30% from their april peak already and you wonder if there is going to be a hangover once everyone has gone out and bought a car. like she says, the inventory is now sitting in garages and driveways. i am curious, is the reason why tesla continues to grow, because it also expresses this conference for their cars versus the other models that are out there? >> look, there is no doubt that the world is going towards electric vehicles. the question is, how quickly will that happen right now we are at about 3% of the total market being electric vehicles it's likely to get maybe to 10% by 2025. that's if things grow quickly. then how quickly does it get there, let's say by 2030, 2035 we are not going to see the end of internal up combustion vehicles that's not going to happen there are 275 million vehicles out on the road. those people -- they drive those

cars for a long, long time i don't care how quickly evs grow you will see gas powered vehicles in our lifetime they will still be on the road. >> let's talk about an ev unlike any other ev i have ever heard of this is a hummer electric vehicle? oh, yeah. >> 1,000 horse power 1,000 horse power. and it goes from 0 to 60 in three seconds! >> i had a chance to drive it last week at the gm proving ground north west of detroit let me tell you something, this is unbelievable, what the hummer can do their whole idea here was, we want to make the ultimate electric pickup truck. so we can handle anything, including extreme off-road i went over more than a few trails where they said drive over it. i don't care if you bottom out on boulders. do it. i has skid plates on the bottom. it can handle it and i did the crab walk where you can drive diagonally

here's the thing i took away from this. hats off to general motors for finally building an electric vehicle that makes no apology for making it fun to drive the volt and the bolt, yawners complete yawners this, i think people will drive it and they will say, okay, i get it. >> let me ask you, phil. my understanding tyler is that the tesla model s splad also a 1,000 horse power. three engines. the hummer, because it is bigger and heavier, does it have a 200 kilowatt hour battery? >> it goes up -- the range is 350 miles. >> wow. >> i don't know the exact on the kilowatt battery look, you are going to have more than enough range in terms of what performance you are looking for from this vehicle. and this is the age. we are starting the age of the electric pickup truck. you have got the cyber truck coming next year you have got the f 150 lightning. both of those are on the way it is going to be pun. >> supposedly, 9,000 pounds.

do we have any idea what it's going to cost? >> the first ones, limited editions coming late they are year, $111,000 the base model coming along in a couple of years, starting at $79,000. >> phil lebeau thank you very much, that's a specialty vehicle. >> might be a blessing you couldn't get your car this year. wait a few months. >> crab walking hummer. games glitching, video games down again after a rough few weeks but our next guest says now is the time the buy. >> check out treasuries as we watch yields on the short-term sticking on debt concerns. on the long term, ten-year under 1.5% back in a moment i just became eligible for medicare and, can i say? it's so

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- [narrator] introducing the grubhub guarantee: our promise to deliver the food you love on time, and give you the lowest price, or you'll get $5 off your next order. welcome back, everybody. the video game stocks had a strong run over the past two years as people spent more time at home during the pandemic. but over the past three months they are falling out of favor.

singa, act vision and take two all down 12 to 32% ea, just positive by about 1%. our next guest sees opportunity in these selloff names eric handler is of mpm partners. good to have you what are your favorite names in the space? how much upside do you see >> sure, i have business on several, but the two names that stick out the most are electronic arts and zynga. >> electronic arts and zynga electronic arts has held up better why has it weathered the selloff. where do you see it going? >> when you look at the big picture the reason i think these stocks haven't necessarily worked of late is, you know, people rotated into reopening trades, comparisons are very challenging right now against last year's very strong covid numbers. and then right now you are a

bit -- near term catalyst length that being said i think it is a matter of when people rotate back into these names, not if. growth is supposed to accelerate next year for all of these companies. and the secular trends coming out of covid are even better than they were going into covid. so the market dynamics are right. improved release slates are coming companies are expanding in the number of platforms they are releaseding this biggest franchises and these are good free cash flow generating businesses which frankly right now are trading at valuation multiples at eight year lows. >> do you see any signs of franchise fatigue across any of these names? i am basing that on my own little focus group of 15-year-olds who will say -- i am not going to mention the name of the game but one of the sports games they used to love they have just gotten tired of

playing. >> sure. look, i think a lot of games will ebb and flow. but companies have shown with games like call of duty, games like grand theft auto, you know, apex legends in battlefield, fifa, nba 2k and so forth that they are consistently updating content that people are quite frankly finding very engaging. and it has allowed them to year-after-year generate very strong results people like big franchise. >> right. >> the franchises over the last decade have only gotten bigger. >> i can't quarrel with that at all eric you are exactly right. these franchises -- grand theft auto -- how old is it? it must go back 20 years. >> it goes back quite a long -- yeah, 20-plus years. and it still generates several

hundred million dollars every year. >> amazing. >> it is the gta on line game that has been successfully launched by the company. >> it is so old that each i knew what gta meant in your report. >> i should mention his targets. the nasdaq is down sharply today, more than 2% earlier. among the social names lower following the reveal of the football whistle-blower by scott pelly last night our trading nation team is going to tell you if any of these rebiiethe ggs are worth buying now lp share th. wealth is saving a little extra. worth is knowing it's never too late to start - or too early. ♪ ♪ wealth helps you retire. worth is knowing why.

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welcome back to "power lunch. facebook selling off today alongside the rest of the high growth stocks. additional pressure for the social media network after a whistle-blower revealed the identity in a "60 minutes" expose the former employee accused facebook of prioritizing profits over public safety this is just the latest scrutiny of the practices and could

portend regulation ahead with system outages today. let's talk with the trading nation team. ari and nancy, nancy, you are a facebook shareholder are you trimming your position given the noise surrounding stock? >> thank you i characterize myself as a reluctant shareholder. we are concerned about a management team that's cynical at best smug and out of touch and the regulatory issue we took it out of the 12 best ideas portfolio. we trimmed it way back cut it from 5% to 3% and i think at this level we are happy to own it. it's super cheap but i do think you have to be wary. advertising sales slowed due to apple's privacy rules and in addition you have a company with a great mote around it so i'm

surprised it is not down more but think boeing got a great moat but a lot of problems and it's going to sit here for a while think about microsoft when it went into the anti-trust lawsuit. this could take sometime so i wouldn't jump in here. i'd let it settle. >> okay. ari, you are looking at technicals does the chart tell you facebook goes higher or lower from here >> over a longer period it should go higher the stock's down 16% from its prior high it prompts the question has the trend changed or presenting an opportunity? our take is that the charts indicate an opportunity. so looking at that chart it is a traced back to the may levels but above the breakout above its 2020 high and still above its longer term trend of higher lows looking at past selloffs in this year makes sense to stabilize

over about a one to two-week period but we do think on the surface it is attractive into $315 support that's the stock's 200-day average. >> down over 2% the nasdaq thank you. for more follow us on twitter or the website. >> thank you. after the break a technical look at this tech selloff. with the nasdaq off more than 2% we're back in a moment >> and now the latest from trading nation.cnbc.com and a word from our sponsor.

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and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit tdameritrade.com/learn ♪ technology leading the selloff today. dom chu breaks down the technicals >> so there are a lot of ways to measure technicals just patterns, historical things to repeat themselves and looking at momentum. a lot of folks simplify it down to things leek the averages in play right now as you can see with the nasdaq composite up 29% on a year to

date basis but the right-hand side of the chart is where traders are concerned or perhaps even excited that there might be a buying opportunity the reason why there's a couple averages in play first of all the magenta line is the 50-day average price on a rolling bases. we are about 4% below that but that grayish line is longer term 200-day moving average the last time we went below that line it was during the lows of the pandemic back between march and april of last year so that's something to watch there. by the way, just some more food for thought coming to the averages, if you take a look at the pullback we have seen it is pretty much about 7.5% you are getting to a point right now where people are saying if it's a 10% pullback do i buy because if you look at the dips that we have seen about a 3% to 4% drop the markets have been

bought. >> that's what i was going to ask you. buy signals and if it cracks the 200-day moving average - >> over the last year it has you can argue about the statistic statistical significance but it bounces back. >> professor chu. >> hardly but thank you. >> thank you thank you for watching "power lunc lunch" "closing bell" picks up right now. all right. welcome to "closing bell." i'm wilfred frost at new york stock exchange the major averages lower with the nasdaq seeing the biggest declines into the final hour of trade. >> i'm sara eisen. welcome. let's look at what's driving the action facebook is sinking down more than 5% after the whistle-blower behind stories in "the wall street journal" made the identity public telling "60 minutes" that facebook chooses profit over safety