thank you very much, dom chu. >>> when we come back, we're looking at 1% losses across the board. nasdaq being punished today. we're back in just a moment. >>> obviously, the broad-based selling continues. we do have some retail movers. wal-mart the top gainer on the down. macy's higher after announcing that restructuring last night. retail names year to date short on time span, obviously. but a lot of retailers are at the top. names like kohl's, for instance. >> but then you see companies like macy's, where talk of cost cutting is what stokes investor interest. interesting to see where wal-mart is trading 6673 was the level it touched before that october 14th investor meeting, after which the stock tanked 10%. and the stock has quietly been inching toward that level once again, currently sitting at 6458. i know that's a level traders are watching to see if it can recover. >> takes you back to that incredible meeting they had in this very building. watch time warner. the cfo speaking at a city conference. 460 to 470. the streets at 466. time warner has now jumped to the top of s&p

who better to uncover the truth than cnbc's own secret agent dom chu? >> let's take a look at our secret agent radar for what constitutes a financial contagion. there are major concepts. it starts locally. it goes and spreads to other geographies and asset classes as well. it could lead to some widespread financial distress for selling, margin calls. we've seen a handful of these things in recent memory. remember 1997, the asian financial crisis, it started in thailand and spread through southeast asia, hit europe and the u.s., as well. the other one here is the 2007/2008 mortgage crisis. the subprime crisis started off with that particular part of the market and spread all over the u.s. economy and globally as well. the reason we are talking about it today, china could be the next financial contagion. could be. the risk there has everybody worried. that's the reason why we keep on talking about what's happening with contagion. we'll see if things pan out. >> thank you, dom chu. >>> our next guest has never been more bearish on the space. michael, great

>>dom chu, ever the bargain hunter. we appreciate it.at verizon, invidia, amazon. any safe to buy? >> verizon is safe to buy in the fact that it's a dividend play and the sustainability of the dividend is key. i think what we see with names like invidia and amazon and the outperformance of the nasdaq in general, once the selling eased up, the market gave me another chance to buy this stuff that seemed like it went nothing but up last year. those are related ones that make some kind of sense. you haven't seen a tremendous dips response. you had a reflex. we ran out of sellers at the lows last week. i don't think that professional money managers who have cash have felt in a hurry to put it to work, which might be kind of a bullish thing for contrarian reasoning. >> so do earnings matter, more or less? >> i think they matter in pockets. one thing i'm fascinated by as the week goes on, how the industrial earnings play out. so caterpillar went from 90 to 60, and today got a downgrade to sell at goldman sachs. so the stock is reacting negative

thank you so much, dom chu., you will actually like some of these markets. >> i have to admit i do. you know, we have to think about the last ten years, and people have forgotten this. if you look at a heat map of where returns have come from from freeing physical like asia or europe or stateside here, we only beat the world markets 50% of the time, so if you are only investing stateside, you're missing performance all over the world. you can't know with certainty. last year, for example, europe, 14 point plus returns and we were sitting basically flat in the s&p so needed to have exposure there, going with the dividend, large cap strategy. my strategy was to take the same rules that we built for osua and apply them to europe and asia so it screens out, you know, obviously financial services is pretty bad. when you talk about lower than book value in a bank, there's a reason for that because there's a lot of incertainty about draghi is going to do and his policies and there's nestle and toyota, companies with th

dom chu has those details. >> good afternoon, scott. even though the earnings season and the big banks are just about over, they're continuing those big banks to be a big focus for traders because the down draft is getting worse. some are actually hitting fresh multiyear lows. now on the money center or aka, the big bank side of things, bank of america is on that list. among the regional banks, check out comerica, and sun trust hitting fresh multiyear lows as well. the move is helping to push financials to become the second-worst performing sector in the s&p 500 year-to-date, down 12%. to put it in perspective, that's worse than the energy sector in 2016. the only sector performing worse in the financials right now, guys, materials. so financials, the second biggest, and s&p weigh in big this year. back to you, scott. >> thank you. dom chu. are you surprised that the financials can't get out of their way? >> can't get out of their own way. >> i can understand with the big financials, yes, because they have so many other things. but the

dom? dominic chu. what more can you tell us?ke a look again, on the heels of what's happening with gopro. it's just the latest in a string since the year began of stocks, industry group sectors that are really taking it on the chin. it's just so far this week, we want to highlight a few of the names. a few of the groups that have been taking it the worst here. transportation stocks are taking a real, real beating here. just again, just week to date here, down about 4% here. 3% to 4%. so transportation stocks seen by many as perhaps the leading indicator, taking a real hit here. also small cap stocks. they continue to underperform their large cap cousins. here we can see about 3.5% to the downside for the russell 2000 so far. so small caps, transportation stocks lagging the overall market. here's the momentum side of things. facebook, amazon, netflix, they've taken a big hit as well. >>> up next, we're going to speak to a big bull on netflix on why he says today's round table is creating an opportunity to get back into this name.

dom chu on the floor. >> all kinds of things that 3m makes overall. all kinds of things. something that seema talked about before the break, this idea that transportation stocks are part of the story. let's put a lot of the other pieces in place here. let's look at what is happening with small capitalization stocks, versus large capitalization stocks. just so far over this kind of one week period. now, small cap stocks are still under performing large cap stocks. just to put it in perspective over the week. if we expand this out over to the year to date period, a little more on the mediumish term, you see that same outperformance by, again, large cap stocks playing out here as well. so, again, a reason for a little skepticism lies in the fact that small capitalization stocks, which could be a leading part of the overall market, still underperforming the large cap stocks. seema mentioned the transportations. let's put those up there again on a one week and year to date basis as well. you can see here the relatively inline dow industrials may be slightly outperforming on a

dom chu all week has been looking at some safe havens amid this volatility.here are we going today? >> some of these names have been relative winners given the down draft that we've seen overall in stocks. like you said, the charts have not been pretty to start 2016. if you look at some of the names we've been highlights throughout the course of the week, they're not in terms of winning streaks winners every single day. four out of last five days, kohl's, walmart and signet. some of these names were beaten up last year like walmart or in the holiday season like kohl's and signet. right now they're up four out of the last five days. so a strong start to the year despite what's happening with china and our economy. there are two names in the s&p 500 that are riding winning streaks for all of 2016. in some cases beyond. utilities like con edison. con edison up marginally, 3.5%. it's been positive every day so far in 2016, five straight. time warner, there's a lot of activist chatter, david faber reporting on that. time warner shares riding a six-day winning stre

now to dom chu for a market flash. >> we're watching shares of maxim down sharply right now, down about, almost 3% right now, this on the heels of bloomberg headlines saying that both texas instruments and analog devices are said to decide against trying to acquire maxim. again, maxim has been the target of possible takeover talk from both analog devices and bloomberg saying now that texas instruments and analog devices may be dropping out of this particular race. we were down about 4% for one moment here, maxim has already done about a full day's worth of trading volume on this. the s&p down about a quarter percent. "power lunch" back in two minutes. the sudden loss of pasture became a serious problem for a family business. faced with horses that needed feeding and a texas drought that sent hay prices soaring, the owners had to act fast. thankfully, mary miller banks with chase for business. and with greater financial clarity and a relationship built for the unexpected, she could control her cash flow, and keep the ranch running. chase for business. so you can own it. chase for busines

. >> it is interesting -- >> or tune into cnbc and watch dom chu and you'll do the work for our viewe erers and listene >> there are some folks who believe that if you are going to buy, you would rather buy some of the winners we have seen over the past year that are not trading a little below where they have been and that's where people may nibble. to michelle's point, short covering always plays a part in some rallies because a lot of names have been beaten down, but the ones i presented, they're not the oil and gas or mining names. they're the ones that have done well and pulled back a little bit in the last couple of weeks. >> sell what you can. dom chu, thank you very much. >>> do you want to be buying dips in this market or maybe, maybe sit back and wait for things to calm down a little before putting your hard earned money to work? david lafferty, with natrixis, joining us now. steve liesman with us. we'll talk about the central bank impact on the markets. david, first to you. i understand in your business it is -- you want to do something. but are there times where maybe doing

let's bring in wilford frost and dom chu. wilford, thanks for hanging in there after doing the morning show. there's a reuters article that was out within the past hour citing sources that the people's bank of china is under pressure to allow the yuan to appreciate another 10% to 15%. what could the ramifications be of that because that seems almost evidence that perhaps the chinese regulators are losing control of the situation. >> i think it's very hard to know whether that reuters article is accurate but it's definitely that question which we have all been asking this week, have they lost control of the currency markets? is that why they continued to allow devaluations every day despite that market turmoil or is this, in fact, something they're managing. that's the big debate. moves of 2%, 3%, they're not getting us near the free floating market rate. we're a long way from that. impossible to know whether that's a further 5, 10, or more. who knows? the question is can they manage it smoothly and can they get the market to

stick around as we bring in ron in insana and dom chu. the fed planning more interest rate hikes despite a sluggish economy, despite the absence of inflation. do you have any perspectives? >> i think if you look at the message of the markets combined, you have a commodity crash, you have a stock market that can't rally. you have transports which are in a full-blown bear market and often times an economic indicator of the vigor of the economy, the yield curve is flattening. that's an indication of slower growth and the rest of the world largely speaking in recession. that's a lot of headwinds for the u.s. economy if the fed is intent on raising rates four times, as stanley fischer told steve liesman. >> what's the counteroffer? >> the counteroffer -- >> is there one? >> the fed needs to stop raising rates and possibly reverse course. i still think we're going negative on rates later this year and you need some fiscal stimul stimulus. we have the capacity, just not the political will. >> we have big picture concerns, but all of a sudden we

dom chu has a check on the markets. >> i'm going to cut back on all the butter. the dow industrial is down by about 225 points. it's bad, but it's off the worst level so far today. i want to point out that wal-mart shares are up. one of the two that are in the green so far, up by about 2% here. it is wal-mart's fourth straight day of gains. an interesting start here for one of the dow's laggers. if you move on to the s&p 500 overall, just to give you that broad scope and look here, all of the second dor sectors down. four of the more cyclical exn sectors. the bigger dividend payers are doing well, so again, we'll check out what's going to happen as we approach the afternoon part of our day, scott. >> dom, thank you. >>> rough start for stocks in 2016. should investors brace for more pain, or is it just a bump in the road? let's bring in jeremy siegel, finance professor at the university of pennsylvania's wharton school. professor, happy new year. good to see you again. >> happy to be here. >> marc faber just told us at the top of our program today, 20% to 40% dec

dom chu is at headquarters with a look at sectors that have outperformed in previous market meltdowns well, michelle, some traders like to use history for a guide of what will happen in the future if history does repeat itself. if we look at the markets in correction in bear market territory for some. let's look at the last time we entered a bear market for stocks. and there are two different instances. in the case of the international bubble, march -- the internet bubble, in march of 2002 when the marks fall and bottom out it was the s&p losing half of its value. but the outperforming sectors were consumer staples and health care. that was a revaluation of assets during the internet bubble. a difference this time around, march of 2007 and 2009, markets bottoming out there. similar, more than half of the s&p 500 was gone. and consumer staples and health care in the red but outperforming the broader overall market. so perhaps it comes around this way as well. and let's look at what is happening now. since may of 2013, the s&p lost 14%, not as dramatic, but still, utilities and consumer

dominic chu and mike santoli are with us to break down both of those strategies. domwe've given you the assignment of being today's bull. mike santoli, you are today's bear. i don't know if it's your personal views or not but just be the devil's advocate and argue it for us anyway. dom, why should you be buying? >> this is the debate happening in the marketplace. there is a reason why you want to buy the dip if you look historically speaking since the financial crisis, and that is because every time we've seen a pullback of this degree, it has been bought. so an average pullback last year was around that 4% to 5% mark. we did see a larger one towards the end of the year. it was bought. another reason for at least some hopefulness is that perhaps oil is trying to find a bottom. of course, yes, the bears will say oil has been trying to find a bottom ever since $70, $60, $50, $40. you get the drift. but there are certain names that have been beaten up badly that have been holding up relatively well and that may be a sign that deep value buyers are starting to feel like i

dom chu has a market alert for us. >> you guys remember that baseball hacking story, it was about a formernals player, personnel director that allegedly hacked into the astros' player personnel system? well, we do have a plea now according to the "wall street journal" citing a person familiar, chris correia who was fired by the cardinals last year as one of their scouting directors or managers is now scheduled to plead guilty to a number, about five of the twelve related charges. this according to a person familiar. again, the baseball hacking story, chris correia allegedly hacking a competitor's, the houston astros' player personnel database is now scheduled to plead guilty to at least 5 of the 12 related charges. this is according to a person familiar with the matter per the "wall street journal." scott, an interesting development in hacking and in baseball. back over to you. >> dom, thanks. this is what sports has become now, i guess. >> yes. it has. >> owner of the milwaukee bucks. that's why i bring it up. watch the computers over there. we do have another surprise on the phone for yo

dom chu is on the floor. >> spx has not taken out that low. with prices stabilized, today no surprise that energy stocks are taking it worse. this follows that counter trend rally we've been seeing where energy stocks performed the best. energy still a focal point for traders, financials given the fact that we're in earnings season. if you look at other themes that traders have been talking about. talking about the bigger macro picture as well. look at what's happening with ten-year yields. you have ten-year yields now tip beg low that 2% level. now it's at 2.03. this is a significant point because, yes, it does mean people are buying safety. it also doesn't look like panic just yet. just yet. though we are watching those yields, traders watching that. the safety bid in gold as well, near the $1100 per ounce mark in gold futures, 1092. cramping up there again. that's a big concern. another theme we're talking about, yes, we do see broad based selling, but jim pointed out we're holding around the levels that we saw in the august turmoil lows. n

michael santoli and dom chu is here. often when there is sell-offs of the sort we've seen so far this year and are continuing to see to a degree today, that sets up a rebound because it sweats out some of the marginal producers to go back to the prior discussion. >> and actually that's where you get the talk of so-called healthy corrections. remember back to last year we had gone almost a record time without a 10% or more decline. you got one of those in late summer. you went down 12.5% in the s&p 500. nice rebound. in many ways a very familiar pattern. you had this autumn sell-off, very much a "w" bottom if not a "v," and then it was maybe seeming like an all clear in november. what i took a look at this time though is if we go down just a little more from here, about a 1% more from here, we're down another 10% from the november high. so it's essentially two corrections within six months. basically unprecedented since 1928 if you have not made a new -- >> what does that tell you? does the healthy correction thesis hold

mike santoli is here, dom chu is here, melissa, mandy, everybody is here. let's kick it off. what do the experts say such as they are experts? >> so let's set the stage for this whole conversation in that we are not expecting, when i say we, the market and it's strategists, are not expecting massive gains in stocks this year. >> no. >> if you look at the cnbc poll of market strategists, the median, so the center forecast, is just around 2,200 as you can see on the wall behind us here. now that at current levels means we'll probably have maybe a 10% -- >> that's a 10% gain on the s&p. >> exactly. if you look at the spectrum, usually we'd expect to see a much wider range. in this case here, the range is not wide. it's only a couple hundred points between the lowest and the highest. the lowest being 2,100, that's dave over at goldman sachs and bmo. that's a 5% increase where where we are. the high end of what we've seen, 2,300. that's john stolfutz at oppenheimer. it's interesting there are no forecasts out there we've tracked so far that are predicting losses, just modest gains

dom chu will run through the list of so-called stealth winners when we come back. >> also ahead two leading stock pickers name companies that could raise nice returns for your portfolio six months from now. you're watching cnbc first in business worldwide. my name is griselda zendejas. i love working in the salinas area because i always wanted to do something where i could help people around me. so being a construction supervisor for pg&e gives me the opportunity to give a little bit back to my community. i have three boys. they're what keep me going every day. our friends, families live in the area. and it is important for all of us that we keep our community safe. together, we're building a better california. >>> another retailer we're watching, container store, getting hammered down 42%. jpmorgan downgrade the stock to knew fral from overweight today. as we reported late yesterday the home goods retailer posted a surprising netd loss for its fiscal third quarter and cut its full earnings forecast to well below street estimates. yet another retailer like we were highlighting gap earlier,

dom chu has an alert. >> those of news connecticut, we know how to deal with snow. let's bring you up to speed on what's happening with rig counts. baker hughes says total u.s. rigs are down 13. the key number oil rigs are down 5 to 510. oil rigs in the u.s. down 5 this week to 510. this represents the ninth out of the last ten weeks where rig counts have declined. also pointed out that canadian rigs up 23 do 250. so the headline u.s. oil number, michelle, down 5 rigs to 510 for this past week. back over to you. >> thanks, dom. >>> check out this incredible picture. the ceo of athena health carrying out cpr on a person who suffered a heart attack in the street. that ceo, jonathan bush, joining us live first on "power lunch" to talk about it. tell us about one red hot area of health care as well. you're watching cnbc. jonathan, enjoy that coffee. first in business worldwide. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you

dom chu is tracking the slide, and other areas of the market feeling the fallout. dom? trade talked about, catching the eye of traders, no matter what they trade. yen a safe haven. as you see the yen buyers come in, maybe that shows you a little bit of a sign that risk is coming off the table, that's what some people say about how the yen trades. now, if you take a look at that pack as well, beyond currencies what's happening with interest rates, the u.s. ten-year government yield, there was a time when people thought, hey, rates rise up to 2 prepondera%. they have gone opposite directions. we have are down to 2 prepondera.14%. people are buying in the safety of the yen, buying up the safety of the treasury notes in the u.s. pushing prices higher and yields lower. you see over the course of the last year, that ten-year note trade, headed back lower on the right hand side of the screen. gold, another place, right? some say it's a safe haven, whether you agree with them or not, gold typically does run higher when people sense there's panic or sense there's a crisis brewin

time now to look at the weak, good, bad, and ugly, dom chu walking us across the wall.ll there at cnbc headquarters? >> i do, and, yes, buying a power ball ticket for saturday's drawing. let's talk about the bad in today's market here, again, we've talked about the idea we're off 5% in four days to start 2016, worst start ever, yes, we know that much. we talked about $864 billion shaved off the market value of s&p 500 companies according to the dow jones indexes, but looking at the companies of interest, and how much, look at alphab alphabet, losing $24 billion, that's part of the fang, remember the facebook, amazon, netflix google thing, and apple, not part of the fang, but still the biggest company out there, lost $50 billion, just to put that in per special circumstancetive, that's, like, netflix disappearing from the s&p 500. among the names here, i will point out, though, joe, if you look at facebook, it's down 19 billion in market value. netflix is now flat for the year, so, total, that facebook amazon netflix google fang stock group lost $75 million in market cap

let's send it over to dominic chu for a market share. dom? >> all right, sarah.oldman sachs has added the toy maker that mattel earnings are at an inflection point. so as we talk about goldman, they also say that the increased price target on mattel is now $36. so, again, sarah, mattel showing some sights of trade. back over to you guys. >> one of the best performers right now in the s&p 500 which is down about 0.6%. dom, thank you. >>> when we come back, aig's battle with carl icahn. what he thinks aig's next move should be after a key call this week. we'll talk to him after this break. ♪ >>> aig is holding a call tomorrow morning to give an update on its strategic plan. that, of course, after carl icahn released yet another letter last week renewing his call for the insurance giant to break itself apart. my next guest says it's time for aig to shrink to greatness, or be regulated to irrelevance. here to explain, josh sterling, managing director, senior analyst at sanford bernstein. thanks for coming. >> thanks for having me. >> you have been an outspoken critic

dominic chu points out the average target on the street is still 144.66. >> i listened to dom's piecethe printed numbers are like that. the sentiment is amazingly negative on the stock. when i saw merrill go hold to buy -- remember, there's big firms that have downgraded the thing. apple is so hated, it, too, can have a trading bounce. even though the listing of the guys are buy, price targets keep coming down. the chatter is so negative about the supply chain that you could get a bounce -- remember, it's an inexpensive stock. it's no longer a momentum stock. >> do you believe the cash balance is so big -- >> last week david faber questioned my notion of having another revenue stream and how important it is. the watch can't do it. the app store can't do it. the itunes can't do it. the auto can do it. that's the other form of mobility. >> do you think it can present -- the watch may do it one day, jim. i know you're not wearing it. >> what is -- >> i was about to say something positive, now he's not even wearing it. >> okay. the band -- the band broke. >> the band broke. >> all right.