it is etf friday. we post a question to the etf risk market. vanguard warned of some dangers of the etf phenomenon. he discusses reality is an analyst for bloomberg news. you are here to defend etf. >> a little. i think some claims are legitimate. i think some are sensational headlines. the truth is where most people get their information. goldman comes out in the report and they talk about rising correlations and etf. the headlines are that etf's are the tales widen the dog. it's not quite that dramatic. you can find evidence of concern. in terms of correlation, if you got to the sector space and look at less traded stocks like i why ours -- i why are and holds a good enough amount of boston properties. it's trading fx 10% to 15% of its daily volume. it is having effect on lesson with the name -- less liquid names. you do see a bit of a rising correlations. but when you step back in with the broad markets and take the s&p 500 index the largest etf by far is $200 billion. it only owns 1% of the s&p 500 stocks. it is a drop in the bucket. i'm no

it is in all the major etfs. all individual investors own it.he problem when there is, and this is not a very huge problem but when there become as very big problem with apple it will take down not only apple but also the entire stock market wit. cheryl: that is pretty bearish call on apple. but, greg, you have to admit here, this is probably last thing apple ever thought would be issue with the watch. we were concerned about the glass. we were concerned about the components, can they make enough. it is tattoos becoming an issue. >> this should be their biggest problem this year. listen, i would argue trade a real bull market for more private tattoo as opposed to kind of more public on the arm. so maybe they will be encouraging that after their next bull market for them. cheryl: i have to say, greg, so interesting, if you look at all, apple watch, i have to say we were there for the launch, i was surprised how much, i actually liked it but i had no interest in buying it. they came out with a strong product tattoo problems or not. >> they have va

so yes indeed, etfs have gained -- >> over $2 trillion now for etfs. >> but look carefully at the mutuald choices. >> thank you both. >> watch your wallet. >> thanks guys. time now for a cnbc news update this hour with tyler mathisen. ty? >> here is what's happening at this hour. several thousand anti-islam protesters marched in the center of dresden today. they waved german flags and held banners calling on german politicians to deport abusers of that country's political asylum system. >>> twitter has removed photographs of an instan bull prosecutors held by militants. talks with youtube which was also banned are still under way. >>> santa barbara has its answer to the california drought. tapping the pacific ocean. it has prepared now to spend $40 million to reactivate a desalination plant out there. go to cnbc.com for more. >>> a spring storm is expected to bring several inches of rain to some drought parched areas of the state mostly in the north. >>> and the cherry blossoms are on the verge of blooming in my hometown the nation's capital. 3,800 cherry trees expected to hit their peak

we'll talk energy etfs and if buyers should beware. go under the radar for the moves you may be missing today. a quick break, back after this. no wonder jim lebenthal is smiling up about how to trade the rest of 2015. it's an exclusive webinar pro subscribers. go to cnbc.com/pro talks. heck it out. tweet your questions to@cnbcpro. trade school is in session right now. etf is a popular way to play commodities, but there may be hidden risks you're not aware of. we look at these risks, and if we're talking about energy etf's specifically, the performance clearly hasn't been great. yet, the inflows are astounding if you look whether it's the uso, the xle, the iye. they don't necessarily match up to what the performance has been, but what are the risks that people need to be aware of even as they're piling in to under performing areas of the market? >> we look at the oil etf's, they've come off from 145 million barrels down to 120 million barrels. there has been a loss of interest. the risks are that they are paperback. they're actually tra

that's exactly what drove biotech. >> and the leverage etfs. we focused on it back in 2008 and so forth. when the market is melting down people are talking about it every day. this has a significant impact on markets because the way they get that is they go to credit swiss or goldman or whoever, and they give them that extra 100% or 200%. you get that going, and that's a straight one-way trade and people pulled back trades. >> apple of course was a driver on the downside on the nasdaq and the s&p as far as that faulty engine in the watch as well as the s.e.c. investigation which could lead them to pay up to 10 years in back taxes to ireland. is that a reason to sell the stock? >> it started before those announcements. it started with the release. they asked us last week what do you want to do with apple? and tim said correctly, don't want to be long there. the stock did rally post earnings. made an all-time high. but it also reversed that day at a pretty substantial reversal. and now you're seeing not only outside day on tuesday, but an outside

it is loved by traders institutions, but i do not think it is the best china i etf. -- etf. largely diverse banks. if you're thinking about it adversely owned etf, there is 140 companies, goes broader and you get less financials in a little more tech. tech is lacking from fxi entech has been part of the growth. scarlet: some would argue that is good because of valuations. eric: you could be. china is copycat appeared sometimes it is good, sometimes it is not. it -- it is a very confusing area. scarlet: what if someone does not want to make the distinction between these different kinds of chinese equities -- onshore, offshore, whether it is even listed in new york? is there one catchall? eric: there is. the deutsche bank etf. i call it the easy button. it gives you shares by market cap -- 60% a shares 20% h shares, and it even has n shares, which is lost in all this. in this cn ticker, alibaba is included. those are whole other sections. this one covers all three sections in one shot, and it basically only has 10 million. it has not really come into play -- scarlet: is it exp

you know, i mentioned the etf exposure there. i think it's very tough to make single stock bets now. from my perspective and personal trade, i'm not going to make that single stock back because i don't know where the issuance is going to come and the impact. >> when you're talking about issuance, health of balance sheet, more equity. >> bigger acquisition. >> like a whiting. >> right. >> time now for the turn of the day. tim is watching emerging markets. what are you watching, tim? >> i'm watching ranges. if you want to go back four years, em long, short s&p has been one of the worst trades you could do. two things happening now. first of all, you're not seeing a double bottom. look at this chart. if you look at the double spread, this is put the eem out there and divide by the s&p. that's the ratio we're looking at. you can see around $18.50, .1850, the spread hits bottom. what's happening over the last four or five -- actually, two weeks, emerging markets have outperformed the s&p by almost 7%. to me, this is happening at a tim

the retail etf has been on fire.discretionary names. >> at a time when people are questioning the valuation of the consumer discretionary space wonder if it's gone too far, too fast. if you have a rotation, are we suggesting that if energy prices, well joe is saying, that energy prices he thinks are going to go up. we think that energy prices are going do remain low forever and consumer discretionary stocks are going to continue to rip from here to the end of the day? >> i don't know that it's possible that you could have a long-lasting rally in crude where retail names quote-unquote like that type of action given a bullishness is from the consumer being a little bit more willing to spend and feeling better about how much money they have to spend. i don't suggest there's a one-to-one positive or negative correlation. but i can't imagine that being looked at positively. >> i think it takes a stress off the high-yield energy market. and i do think that is a positive impact on equities. >> remember you can follow the ac

stephanie: like what, etf's? erik: like etf's, others. howard: it was in early 2009 that warren buffett said only when the tide goes out to you find out who has been swimming naked. it is only in a tough marketplace that we find out whether things live up to their promise. erik: ok, but we want your opinion. will we? what will we find out? when there is a liquidity challenge in the credit market and everybody is stampeding for the exit trying to cash out as fast as possible because prices are dropping like a rock, what is going to happen to these instruments that purport to offer investors liquidity? howard: first of all, the one thing i am sure of is that nobody knows. these are new what i call "wall street wonders," and nobody will know how they will perform until they are tested, but you see people are going into etf's for illiquid assets. they are when everything is copacetic, but the liquidity can dry up easily. there are people going into the etf's under the assumption well, i can get out any minute. so they are assuming, then, that

i'm of the belief that the etf drives the individual stocks.e talk about biotech, you know, if you had labeled amgen, and people and i talk about it, you look at it much differently. frankly it trades a lot cheaper. we had the amgen recorder was ridiculous, outrageous, and i think today's move is just somebody or a group of people blowing out of the etf, no news on the individual names. >> the sell-off in ivb and biotechs as a whole and what we saw as underperformance, is that related? is it a move away from risk in this market? >> i don't know i would say it's totally like that. if you go back to biotech itself, you have to look at that and say you can't afford to miss right now. what i miss by mean by that is bioagain. big-cap biotechs have been -- to jump back up again, i think you can say that about a lot of various names. i think there's some rotation, people have been talking about this all year. we've been talking rotation, rotation, different areas of the marketplace. remember, this particular biotech that you mentioned earlier, small-c

but the etfs here to the downside about five %. really not a lot of moves. >> let's head straight over to the nasdaq at times square. bertha has been following the big moves there. >> biggest movers today are the bio techs. they're the worst perform hers on the day. and one of the things to watch as well in terms of bio techs is coming off a huge week last year with 5% gains for the week. they're kind of dplatflat. we've got a lot of catalysts next week and also some big cap earnings on the deck. meantime you've also got the chips today that are down. they are the week's worst performers following the low. in terms of the sector performance. amd really is ground zero there for today's decline. but over all we haven't been getting very good news out of the chip makers on their earnings. and mattel and seagate are the only things with strong earnings. western digital going along for the ride. >> certainly found the bright spots out there. >>> it's been a really big week for oil. crude is under pressure as we speak right now sitting a

but the spider etf in the world, has good volume. we're 60% of the daily volume. the iwm, 80, 75% of daily volume. that constitutes heavy volume as well. one thing we're seeing some heavy volume, finally near lightening up a little bit on some of the oil service names. oih this thing for months now people have been dieing to buy it, it's been on fire for the last moth, down a little, but the volume is notably heavy and some people are starting to listening to what they said, don't expect any immediate snap-back in any production levels. most sectors here in the united states, i am not seeing particularly heavy volume. and that includes by the way, the biotech etf, the ibb, no big indications we're seeing huge selloff, it's down a little bit today. really a lack of demand rather than heavy selling pressure. carl, back to you. >> see you in a little bit. got some big changes coming to google with some big implications for millions who use the company's search to shop, eat and find information. google reportedly said introduce a new search formula next week which wil

this is often the hour we do see a lot of etf trading showing up. we've had some sessions where we saw gains this size evaporateingevaporating. the s&p is up 9 and the nasdaq up 16. >>> when we come back one of the stories of the day, what does general electric's massive restructuring, that $50 billion stock buyback mean for the future of the industrial giant and it's ceo? we have a bull and a bear on ge coming up as the pros dive in deeply. >>> and later, we're on watch. apple watch, of course. in case you hadn't heard, they're sold out. we're going to go live to silicon valley and get the very latest. e pursuit of healthier. it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others. healthier takes somebody who can power modern health care... by connecting every single stock buyback mean for the silicon valley and get the very for as the world keeps on searching for he

i'd like to see the etf open up a little bit, but today when the etf, the xly was 75.15, you could have bought it on the money at $1.25, breaking even. you're risking 1.5% of the underlying stock price. we're almost a month of at the money, you know, bearish sentiment here. so, to me, i like the risk-reward of this trade. i think you want to do it when it's kind of bounced a little bit. i don't like to press stocks on a day like today when it's down 1.5%. >> why consumer discretionary as opposed to retailers? >> option prices are cheap here. that's one thing i would just say, and they're going to be cheap in a sector like this with names like this in it. but to me, again, it comes down to risk-reward. i think it's 75. if the thing's going to break here, it's probably going to go to the low 70s here. you'll have at least a double, if you get that break. >> you also have what would be a fairly exceptional instance of long-term out-performance. there have only been two sectors that have out-performed the market for five consecutive years. when consumer discretion did that, stalled in '14 a

it is one of the best performing etfs over the past month, and it is the pbj etf.d this in february 23rd new ideas column on cnbc pro because every food-related commodity was down consumers have more money due to lower gas prices and heinz deal a part of it, but it's not all of why the food companies have done well. look at recent stock moves of the smaller food-related namings. over one month, spartannash, up 20%. fresh del monte up 13%, pin call foods, and jj snack foods up 7 %. the food companies, especially the small ones have been as we said on a roll. a roll. >> as you say, brian. that's so bad. >> i apologize. the final oil trades crossing jackie to rescue us. >> we are praping how oil closes today, interesting action and it's not just a technical bounce here potentially, but there may be a shifting sentiment. i'll explain reasons your for that when we return. >>> here's your cnbc news update. cuba's vice president said that while cuba was working to reestablish relations with the u.s., president obama should not have been imposed sanctions on venezuelan off

one etf in particular, power shares dorsey wright small cap momentum etf, something to look at because what they do -- david: what is it, by the way? it is a mouthful. >> it's a mouthful, but it is worth it. dorsey wright, great technical analyst, packaged index where every quarter they put 200 of the best small cap stocks out of the russell 2000. david: there it is. dwas are the callers. you're always into these exchange traded funds, right? >> well, all about diversification. it is all about low cost and knowing what you're buying. david: all right. we are going to focus on one stock, mark. i have to mention i have a little bit of it is halliburton. halliburton doing extremely well today. does that signal upward move in oil? >> i think it signals stabilization. really big companies like halliburton, exxonmobil, all the great big name stocks in oil and oil services they need oil to stablize to figure out how much money they're going to make and that's what we're seeing. i think $38 call, $20 call we heard from analysts is now bunk officially. we'll see oil sit between 50 and 6bucks fo

when the etf was 17.60, there was a buyer of 66,000 of the may 16.5 put spreads. that's about $3.5 million in premium. if the etf is below 16 and 14.5 on may expiration, they can make up to almost $10 million. when you think about this trade, it's kind of interesting to me, because here's the etf, the uso here. it's trying to put in a little bit of a bottom. it got down to almost 15. it was 17.60 today. and this trader is really looking to take advantage of a move to the lows. i'll just make one other point. when you're trading an etf that is as active as this one where option prices have lifted, one of the reasons i think they probably bought a spread, this is implied volatility. this is the price of options. look at the ramp as the price of the commodity has gone down. to make directional bets, you need to probably look to offset some of that premium. >> for more "options action", check out our live show, 5:30 p.m. eastern, you can see dan and the gang every friday at that time. >>> coming up on "mad money" tonight, cramer is seeing if natural pet food freshpet

same apply to etfs or cost cost, #getaplan.oes down i buy and and is the stock goes up i like to -- i run a charitable trust so i think typically what i try to do is lower my basis as an owner. why do i want to lower my basis? because i don't like chase and i do like buying at a discount and lowering my base sits equivalent of getting a stock i like of a company at a cheaper price than i got it before. that means i'm getting a bargain if the fundamentals are still good. next @jimcramer has more followers than wyoming has people i like his stock advice better, too. wyoming has more oil than i have. oil wins. jeff asks our next question. i have a long list of research companies that like to invest in but don't have money for all of them. how do i narrow my list? #getaplan. what you've got to do is figure which of the best at which levels. if you like them all, try to figure out what level would be the one where you'd really want to buy something and then stick by it because once a stock is coming down people run from the levels i

i would like to see the etf open up a little bit. today when the etf, the xl was 75. that breaks even down at 73, 75, basically risking 1.5% of the underlying stock price for almost a month of at the money, you know, bearish sentiment. to me i like the risk reward of this trade. you want to do it when it bounced. i don't like to press stocks. >> why do consumer discretionary as opposed going to retailers. we're not shooting against a disney or comcast. >> option prices are cheap here. that's one thing i would say. they are going cheap in a sector like this with names like this in it. to me it comes down risk reward. if the thing breaks here it will go the low 70s. you'll have a double if you get that break. >> also what would be a fairly exceptional long term performance. only two setors outperform the market. stalled in '14 now again asserting itself. you're talking about a 50% increase over the markets since 1990. it's come a long way. >> with disney as the largest component of xly and news of "star wars" out it's hard to imagine how that stock will crack next week.

stephanie: what happens to the explosion we have seen in high-yield etf's? people race into their saying here is where we are going to find liquid markets. the underlying bonds are still as they always were. >> the etf market is going to struggle as well. we saw the biggest price decline we have ever seen outside of the recession. going from the peak of the market to the depth of the market in mid-december. there is no happy face on this. we don't think the economic recession is going to be bad. stephanie: the proportion of high-yield market owned by the etf has doubled. stephanie: how are they going to provide liquidity when they are not at high-yield bonds? >> to use see the possibility of a mass exit us that could disrupt markets in a fundamental way? >> high-yield is -- equity is going to be been out. high-yield is going to be beaten up. everything that looks like equity in fixed income will. part of it is just going to be fundamentals. these companies have pushed out maturities and you finally see credit market up and up again. those are all going to co

the etf drags down the individual stocks not vice versa.u look over the last six to ninety months this is the third or fourth time we've seen it. can it last a couple days? probably, but if you go back and look i don't think there's anything that changed in the biotech space today that leads me to believe the story is over. >> fair enough and we have seen this movie before we saw it last year notably janet yellen was citing concerns about the valuation in biotechs. should people who aren't necessarily overweight in the space still be concerning? is this dragging down the overall index? >> the short answer is probably not. we mentioned this last year sold off significantly in the spring in the broader markets. they stopped going up at the same pace but didn't decline. i would just sort of build on what he had to say and talk about biogen today. it was about about 11 bucks. it doesn't look fantastic. >> that's on top after earnings report last week. it really came under pressure then. it's not like this is the first time. >> it's not, and aga

i think you stay in this market. >> btw, the pek, etf is up more than 50% since that call.o, tim what do you do now? >> well, one of the things that's also happening is you're seeing the fxi get pulled up. this is the hong kong market and one of the dynamics here is that the chinese money, which is trapped money and they're forcing liquidity and liquidity is king and it's going into hong kong, so they're going into some of the big-cap stocks like china mobile, like china unicom, and so, things that were already, i should say that we're under a little bit of pressure where big value traps are catching the fx. it's been rallying and i think you stay with that trade. >> the hong kong shares trade. >> yes. i think if you've been in this trade, god bless and take your profits, but china mobile and china unicom also fundamentally as companies, i think the worst of the inefficient capex is behind these guys and the 4g build-out has been accretive to them. so, companies that -- you know, it's china. there's a lot of unknown there. they're state companies, but they've done very well

i want to show some high-volume etfs. those are oil etfs, ixe, and that tracks oil.ng out today, heavy volume in the etfs, and in china, china's made it clearist going to -- big day for tech stocks. apple doing well today, below the 200-day average. for the moment the best advice i'm hear is very simple sell the rally, buy the declines. we're at the higher end of the range. i think some people light lightening up here. nothing even close to a panic. we had a slight move up on friday but we're right back down to 13 on the vix. >>> thanks so much regardless of whether you think the fed rate hike is going to be in june or september, it's going to go higher, is your belief. where is the value here? >> there's a lot of value especially in europe. there's no headwinds. one is the counters shuck of the fed action balance sheet. it is second one is the strong dollar. those two themes will happen throughout the rest of the year. once again. european equities are cheaper as well as the headwinter of the europo. >> marshall, you're -- i'm thinking i don't know if any of your to

are there any hedged bund etfs?o has a bund etf although it never trades and i'm not sure on the market cap. the other way is really bringing it back to the equity market. dgxt is your hedged european stock portfolio. just be careful with that. take a third off. take a half off and take some profits. >> it has seen a big move. loved it, b.k., at the smart board. time for pops and drops. the big movers of the day. we've got a drop for cliff's naturals. down 2%. >> they report in a couple weeks. there's some big call buying. we saw it in front of the last quarterly earnings. 20,000 of the april 6 calls, paying 34 cents. that's an interesting levered bet to the upside. high short interesting here, 51%. if you're going to play a name that's kind of distressed that's one which to do it. >> drop for symantec. >> gave back what they gained on friday when they talked about spinning out veritas. news was maybe there's not that much interest in it. i do like this name. i like palo alto networks better. >> a drop for fossil do

stock market by buying sh that's the etf that gives us negative correlation to the u.s.cks, but i want to be long hshr which gets you that exposure. that gets you that disparity. the markets go down you will see central bankers in china do more. it is a way to play. doesn't matter you don't have to sate the central banks. just embrace them mandy. >> i get it. you're trying to let the central bankers make money for you. they've done it here in the u.s. they're doing it in europe. doing it over in china as well. but come on what's the risk here? i want to look out for the little guy, okay? for the average joe, if they're starting to pile their money in china, there's a lot of risk over there. how do they hedge that? >> well it's hedged by itself. it's a long/short strategy. buy 50% of the portfolio having short exposure via the etf. you are betting that the u.s. economy will have a little bit of a pull back while even if china comes back it goes down, what is going to happen? the central bankers will be forced to do more stimulus. we just saw some action that economy over

the xl you spider etf is down 6% this year. says the weakness will not persist because as investors begin the hunt for yield, this etf has the biggest potential upside. we are joined by the head of microstrategy and green capital. hunt for yield. towns like the last couple of years. >> everyone sounds -- got scared that the treasury we come out and that would raise rates, but that is done to repair down. we are in this very newer range on treasuries. maybe 1.8 on the one side, 2.2% on the other. people start searching for yield again. scarlet: the utility sector has a 3.6% dividend yield. as prices go up, that goes down. >> personally to see them go up. we have seen them underperform. they are at key technical levels. where they are at right now, there is a decent bands chance. we are looking for that bounce. yields have stabilized, energy prices are at the highest end of the range. we like the technicals. scarlet: talk about the linkage between energy prices and then finding a bit of a floor here in utilities. what does that m

scarlet: let's move onto your trade, on a semiconductor etf the smh. on this sector? max: i am bearish. we had a slew of negative announcements as of late. intel kicking things off. sandisk following suit micron's earnings with a lower forecast, not very upbeat either. this basic dropped a bit and then got picked up by speculation of an intel-ontario deal -- intel-alterra deal. i'm looking at the possibilities that things slide again at the m&a wears off and as we head into earning season which peaks next week with intel reporting before april expiration of the options. scarlet: give us your trade. max: the smh, intel is a major weighted stock. the april 54 calls for .45 cents seem like a cheap way to get a high impact earnings concentration. scarlet: you profit if the etf falls but you do not lose money if it stays where it is. max: the most you lose is the premium you pay. scarlet: max breier joining us today. "money clip" is next. ♪ pimm: welcome to "money clip," we tie together the best stories, interviews and video in business news. i am pimm fox.

look at the chinese etfs here. they are down about 5% here. is the big one, that's hong kong and the asa chart is mainland china stocks down about 5%. this is reflective of where the market is really right now, not the chinese close. we also had, i want to talk about the market here. some strange revenue misses. a lot of them recently. ge seagate, key corp honeywell, blackrock, sherwin-williams, schlumberger all missing. this is a problem here. if you take a look at the earnings today, honeywell and american express everyone is blaming the dollar. i guess you get a pass on that. american express in the decline. we are seeing a notable decline in revenues though. i think you need to keep an eye on that. earnings are not coming down as much. down 4.1%. that's better than a few weeks ago. look at revenues. revenues are continuing to decline. you can't keep having revenue declines and earnings getting better. there is a dichotomy. that's got to be resolved. schlumberger and here is the key sentence, a recovery in u.s. land drilling will be pushed

i wish we had more knowledge about the etf situation.utures last night, down 14 15 on nothing. china never came out. be careful. let the market settle down. too much supply hitting the tape. too much supply. >> "mad." fresh pet. this that is natural organic for your pets. and then therapeutics md typical of what's going on obgyn stuff, kind of interesting stuff that they do. talk about it tone. >> you love dogs we know that about you. >> i do love dogs. my dogs can both hit the boo-yah button better than anybody in the country. taking them from hold to buy. >> them too. >> "mad money," 6:00 p.m. eastern. ism coming up first trade for godaddy in a moment. ♪ >>> good wednesday morning. welcome back to "squawk on the street." a very big ipo day at nyse as godaddy's going public at post 8. i'm carl quintanilla along with sara eisen david faber, live from post 9. simon's off today. another rough session to start off april and second quarter. dow down 164. every component in red led by bowing and merck, one of the best performing stocks of the

an etf. it is a global etf number. look at that dramatic move. okay. who are investing in this basket of stocks, to be a little more safe. right? which includes linkedin. pandora. you can see that took a hit. liz: facebook is down. one and two-thirds percent. linkedin down one and a third percent. you're right. you could go to the other social media stocks that aren't related. groupon down a third of a percent. not exactly in the same universe as twitter. we're watching this closely. we'll take a quibb. againquickbreak. twitter is trading after having been halted. stunning news. an early release. accidental of twitter's numbers showing a pretty significant miss on revenues. the stock plummeting more than 20%. traders. nicole petallides. jo ling kent all over the story. we have the latest on the tense situation in baltimore and how businesses like cvs, you saw it being looted, are reacting to the attacks on stores in downtown baltimore. don't go away. much more ahead as we come up against the closing bell. just four minutes away. ♪ [ female announcer ]

. >> rsx is the etf. luke oil, gas promo. magnet. some of their largest companies.t interesting because you have gazprom in there. gazprom struck an interim deal with ukraine. i thought they were at war together. apparently commerce is still happening. >> i can't speak on that behalf. you know, we look at -- >> i want everyone to know. jc literally goes by the numbers. he's not a fundamentals guy. i keep trying to push him. you don't look at the emotions going on at the ground. >> no one wants to know what i think about the economy and russia. i love it. from a risk reward standpoint, it makes sense. up to the 200 day moving average. realistically, we want to see how it reacts to that level. i think we can essentially go up to about 22 and a half on the rsx. 20% here. the energy companies, the components in energy, you know what, everybody hates the energy stocks here in the united states. i like them too. >> we just actually showed correlation with the us oil fund compared to the russian market sector. you can see how the yellow line, russia, rsx, is outperforming

the spider etf that tracks utilities. it's up 3.4%, and it hasn't had a losing april over the last ten years. 100% positive over the last ten years in april. the health care sector meanwhile, is the worst performing of the broad sector etf's. xlb, the ticker there, it's only up and it's still positive but only up 1.4% of the time. it's positive. we'll call it a coin toss. 50% of the time. as you look at what's happening overall, tyler, health care and utilities. health care, the strongest ones going into the second quarter, and now they could be some of the worst performers. >> it's a little bit of financial faber metrics here. >> it is. >> looking at the amount of gain and the percentage of times that they're up. >> there you go. >> thank you very much. >> the world's biggest carmakers out with their latest sales figures and overall they saw a drop in march which had one less selling day than prior month. go figure. february has 28 days. oh, well. strong demand for jeep helping chrysler sales up 1.7%. that did fall short

>> so the ibb, if you look at the top ten holdings, they're like 60% of the etf.heavily in celgene, gilead, what we're calling blew chip. this is where the more speculative money is. it's taking much more of a beating and tends to be a lot more volatile on the downside. you look at the probable cause of today's selloff, it's a company called celledon. it missed a phase two trial or a milestone of some sort. that's the wake-up call for this -- >> that's a $320 million plus market cap -- >> right. >> that's the point you're making is that it's small. i'm just pointing out -- >> you get away from biogen -- this is the true face of the sector. it's tremendous gains when you hit it and it's huge vegas-like losses when you miss. >> because these are true biotechs. they're not the biotechs that trade like pharma. it's all about what you have in the pipeline. if you've got it, it will fly to the upside. if not, you'll see days like this. >> celladon is down 66% from the ipo priced to its lowest point ever. just putting a -- >> it's a tough day. now tomorrow they'll start

into your bank account into a savings -- into an investment that's going to be an investment in the etf so another type of investment account you might want to think about. >> kids. >> allowance is a big question. i don't know if yours get one. mine don't yet but stipe -- >> sometimes any do. >> keep it consistent. allowance manager is something to think about because it allows kids to think about virtual money. a lot are seeing us play with plastic so know about that. they put -- puts money on a card. you can do that as a parent and helps you manage what they're doing in terms of what they're spending on school lunches or on their own, you know, personalal spending so it's a very good way to kind of check up on your kids and the other one that's good for younger kids perhaps, is savings spree so it helps you figure out whether you should save, spend, invest, donate and how to allocate that kind of money. it's gotten some really great awards from parents and teachers associations and by money savvy which is a great organization trying to help skids learn about money. >> sharon, thank yo

the least risky way is through an etf. spyd spydr gold shares.he price. doesn't always track it it won't always will. i have faith in it. you could call your broker and buy bullion the actual bars of gold. that makes sense for investors that can afford to buy gold in bulk and store it in a depository bank. if you pick the right company and then outperform the commodity. remember it will not trade in lock step with the commodity and the same things that make gold valuable here. the fact that it's hard to get out of the ground cheaply and not a lot of new mines. plus, gold minors can screw things up in countless different ways. they have dectsbts and fining costs and management teams and can and often make mistakes. virtually every single time i have gotten. hind a gold stock in recent years i have been burnt. higher than expected cash costs and every time things just seem to go wrong and then the stocks get hammered even if gold goes up in value. i finally just gave up in the entire group and simply stick with the physical commodity. the bottom li

let us trade the oih, the oil index is the main etf in the market.l stocks fundamentally as they buy. >> no. i think there is a lot more here to be short at the oih. there is a lot of small means that make up that etf that are at risk of missing. there is a lot of concerns out there and a lot has been predicated by the sort coverings. again, i think we can agree on that fact. i think the stocks have near term risk from the perspective that i don't think numbers have come down enough to justify. it will be interesting to see what happens. >> i love your message and it's a message that needs to be hammered home. know what you. do not buy any mom and pop. never ever ever without going on to the internet or whatever it is and knowing exactly what stocks are inside of an etf and what the percentage weight really is. >> i will tell you why. they represent a large waiting within the oih. when you think about the waiting they have, it's a lot less but it's an overhang. they have then really supported this halle. i think that is over. what it is the next cata

david: in the international sector, there are etf's that you can use for china and etf's that you canwhere in the world now, and we would take advantage of them. we are overweight asia and our international components, and we have a piece of japan at a piece of europe, and they are currency hedged because of what is going on with the dollar. alix: what kind of central bank moves to you expect to continue over the next six months? we saw two rate decreases. david: i think if you look at china or any emerging country or any economy, they have to make a decision about central-bank policy domestically focused, and then they have to relate it to what is going on in the world, and the most powerful force in the world is coming from the european central bank with a negative interest rate so the negative interest rate is coloring central-bank policy everywhere. you tally up the central-banks of the world, and since october there have been about 30+ movements, all of them easing, all of them stimulative, so this is an example, but there are many examples. this whole world is now trying to mana

this is mainland china, the biggest etf.p 30% just since is the beginning of march, so a lot of interest there and at least on this side as well. speaking of some of the disappointments with gold we have a very small merger this morning very symbolic of the idea that these small guys are having troubles. it's a small deal but a lot of these companies can't make money. sectors right now, energy is leading, tech, health care and financials exxon is the big problem there. just look at some of the big moves here. most of them are trading to the up side. carl, back to you. >> thank you very much. oil is off of the high but still up about 1 punz. jackie deangelis is at the nymex. >> that's right. we're seeing oil up about 53%. traders saying this is short covering. we did fin strong on friday. having said that. crude really can't find that much direction if we were seeing selling pressure we would see the same kind of action in the rereverse. new positions, the highest we have seen weekly since 2011. at the same time gas prices ar

whether it is the hedge funds or etfs, the mutual funds.'re carrying a lot of that risk that used to be on the banks. that is a risk we need to think about. david: senator bayh, all this stuff with dodd-frank, took months if not years to arrange it, we're not sure what is all means that was designed to prevent another financial crisis. he said not only will we have one but he says the regulations will get in the way. >> we're always fighting last war, dade. david: that's true. >> dodd-frank was designed to stop problems that existed before. as the previous guest said before, derisked banks some. they're not involved behaviors. the risks haven't gone away, but moved them to the shadow banking system where problems may exist if the future. he is right about that. one final thing, taxes regulations settlements, made banks less profitable and had ironic effect for harder for people to get who really need it. david: good point. sec powered by dodd-frank, and through the sec they will create a uniform standard for banks. e theone si fit a ing li

as far as europe is concerned, for that we're using either funds or etfs. we're not buying individual ones and they're broad behave. we think we'll based. we'll let managers do that. not pick european stocks ourselves. david: mike, talk about the consumers, no bigger consumer market than you have in china. alibaba is slowing down. they have tremendous market share. david: impenetrable market share, market share we can't get into. the stock is way off its highs. the highs in november was 120. flat just about at 80. 82.21 is where it closed today. is that a pie? >> i think it's a major buy. rarely you get opportunities, you said it yourself, they have a great position what could be one, two, three decade consumerrization story in china. high margin business, great valuation. this is the type of stock you buy, you don't have to think about it. let it sit in the portfolio. doesn't require a lot of work. for a long termer, sorry, long term investors take advantage of short-term concerns in the stock and get in now. liz: thanks so much to all of you. great to hav

. >> vanguard dividend appreciation index etf it's made up of stocks of companies that keep raising their dividends. >> interesting. den. >> i always love mr. buffet if i can be his partner by buying a share of berkshire hath way i will to it every day i can. >> with the employment report, how do you think it would have done done, ben? >> i think this market is overpriced but for the long run it's great. for your children, for your grandchildren, for you if you're in middle age it's great. >> what do you think charles payne? >> i agree 100% with ben. as far as the market on friday would have been done, the feds work has not helped main street and we need a new fiscal policy business friendly administration. >> adam does that anemic jobs number portend the economy is sput ring here? >> not necessarily. we know that the economy is growing, that's what investors should keep in mind. >> you're not blaming the excuse about the weather because i never see them credit the sun when the numbers are good. >> there will be ups and downs, no question. >> wait. jobs reports down -- >> i can say it mor

the moves in the etfs today highlight the divergence of the two. the ashr down 2%.is is an example of you've got to know what you own here. because there's a huge difference. people are saying there's still a disconnect in valuation. >> no doubt there's a disconnect. we talked specifically about the fxi last night. said probably going to break through the $50 level which has been resistant for forever. it did that today. how do you trade it? i think you stay long. it's been in this range now for the last four years. breaking through that range, you stay long fxi now against $50. very well defined stop. >> what you've also got is huge volume. of course you're not just sighing this on no volume. this is record volume for the hong kong exchange. which you would expect because this is the first time many of the folks including us would have access to it. one thing i don't know is the ability to short or not. whether or not this is a one-way street. in other words, in many markets you cannot short if this is one of those then all the more reason for why guy is going to b

but the 20-year treasury etf/tlt is up 10% by labor day. >> you like that one? >> no. i want to be in equities. >> and your predictions? >> kentucky finishes the college basketball season undefeated since 1966. led by the world's greatest military lead other colonel harlan sanders. >> what do you think about that? >> yuck. >> have you ever eaten kentucky fried chicken? >> i used to. >> with the cheap gas and everybody buying these self-driving cars, it's going to be great for businesses. michelen up 20%. >> neil is next. >>> remember him? that face of evil might be dead, but has this become the new face of evil? alive and well and oh, man, not necessarily a man. welcome, everybody. i'm neil cavuto. so much for being the softer sex. two women arrested in new york now looking at the possibility of serving hard time. authorities say for something they were cooking up for a very long time. trying to build homemade bombs and set them off right here at home. they are just the latest. don't expect them to be the last. we saw this play out the same week we had similar arrests

the asia focus etfs, fxi is up about 19% and the ewh is up more than 10%. should you get in now? dilemmas that faces homeowners. should you rush to pay off your mortgage before you retire in key question for baby boomers and our sharon epperson says it may not be your best financial move. would you let your life insurance company track your every move if it meant you would get a discount on your policy. the man behind the plan will join us. scott, back to you. >> thanks so much. oil prices rebounding today after diving 6% yesterday on higher than expected inventories and record saudi out put. everyone wants to know how long oil prices will remain under pressure. we are continuing our energy summit this week and welcome in john dowd, four-star energy fund manager at fidelity beating more than 90% of his peers over the last five years. welcome. >> good to be here. >> you must have an opinion on whether you think we've put in a bottom or near a bottom or about to retest some lows or find new ones? >> so i'm constructive op oil prices. the bear case is based on rapid inventory builds

here to date the vpu, the van garde utilities etf is down 3.6%. we'll be back to talk utilities on "power lunch" in two minutes. e financial noise financial noise financial noise >> that's the biggest total ever bringing its total to an all-time high over 10,000. take a look at the shaerz. up 1.9%. tyler, back to you. >> thank you very much. >> if you missed the lunar eclipse on saturday because maybe you were sleeping we thought we maybe could give you another chance to look at. it comes from the griffith observatory in los angeles. the total eclipse lasted five minutes. it was the shortest eclipse of the century. the century is not very old yet. some refer to it as a blood moon because the moon as you can see right there, kayla, glows red. the next blood moon is set to appear on september 28th. >> we can set our alarms ty. let's check some headlines at this hour. shares of microsoft may be down 10% in three months, but up today up by about 2% nearly 3% after the company got an upgrade from wells fargo. wells upgrading microsoft from market perfo

if you look at some of the etfs for the a shares for example, after tracing out a wonderful midpointher move higher over the course of the past several weeks, it's rallied so quickly. i would not be a buyer of chinese stocks after that. markets that respond bearishly to very bullish news and that was very bullish news are to be avoided. >> it was very bullish. but just to take the other side. they also announced changes to the margin mirments andrequirements and they were encouraging short selling. it was a push/pull that played out in the markets today to the down sooird. can you actually say it was the market not responding to the reserve requirement cuts or do you think that it could be also the fact that they're sort of clamping down on frothy investments? >> there's no question that they're champing down. there's no question that beijing is very uncomfortable about the fact that the stock market has risen as sharply as it has. and i thought it was interesting that they're going to allow short selling. what was more important was the fact that they're going to expand the use of m

. >> these are etf stories. etf carried this whole group down. are so powerful, they could crush lennar which is having a good quarter. take anybody out. >> i did want to try to get to viacom and time warner cable. i guess we can start off with the viacom. don't forget they announced that re restructuring a couple weeks back. writing down a number of shows they had on there. networks, as well. cutting jobs. they reported what was in line in terms of cable network results. advertising declines. currency did impact them. overall you had that large restructure which did have that impact. they did seem to be ahead of some estimates. looking here. they do appear to have been ahead there. higher equity income. a number of other things. generally not a bad quarter at viacom. stock not doing much. sumner redstone was on the call in listening mode. they tell you he is listening. as for time warner cable, speaking of rob marcus about 40 minutes from now, the ceo -- >> how did you get in? >> i kind of didn't. that is a story for another day. we are happy to