Picture. Analysts are forecasting for this quarter, thats going to be weak Revenue Growth. While we are seeing a reacceleration in gdp growth, that hasnt translated into higher Sales Estimates for this quarter. For q4, Thompson Reuters is estimating a. 4 jump in sales versus 3. 4 that we saw last quarter. Europe will also be in the spotlight this season. Analysts are betting that tech will benefit from the ongoing recovery in europe. Tech companies that have exposure to europe include harmon international, Electronics Arts and priceline. Last quarter, priceline saw an uptick in european sales. Analysts say the European Online travel market could offer considerable Growth Opportunities for priceline and the broader online traffic market, travel market, excuse me, going forward. When it comes to emerging markets, experts have a mixed opinion on business conditions. Last quarter, young brands and nike were cautious on china while General Mills saw strength on its earnings call. Management said we had a very Strong Quarter in china and have seen terrific growth in brazil. Whether we see strength or weakness in emerging market sales, the chief Market Strategist at oppenheimer points out that unfavorable currency fluctuations will likely have a negative impact on earnings this season. Tyler and sue . Thank you very much. Lets go over quickly to dominic chu for a market flash. Check this out. Its mckesson getting hit hard. It just reopened for trading. The company said it failed in its bid to buy a german drug distributor. It raised its bid after Elliott Management rejected its original bid. The two sides finally hammered out an agreeable price but they needed to get 75 of shares. Thats what mckesson was trying to angle for. They did not get it so those shares lower after they do not get those shares they need for a takeover. Back to you. Interesting development. Thank you. Returning now to the earnings season and financials of course, a big theme this week, kayla tausche. You have been following it for us. I have. Alcoa out of the dow, now banks will officially kick off the earnings season with Jpmorgan Chase and wells fargo reporting tomorrow morning. There are a couple broad themes analysts are preparing for. With revenues slim, banks have been pumping up profits by cutting expenses and releasing money they had stored for bad loans and some litigation. Those strategies are wearing out and the question is are banks really starting to grow revenues. Second, in an improving economy, that Revenue Growth comes from loan growth, especially from consumers and with mortgage refinancing drying up, banks really need this. Third, what was the effect of the taper. In q3, trading sharply slowed when the fed kept the status quo on qe, rising yields should spur more activity but it wont be a blowout quarter. Jpmorgan is expected to post 1. 24 per share on slightly down 23. 8 billion in revenue. Better than its q3 loss but it will take an additional 850 million hit for its madoff settlement. In october, wells fargo said its mortgage pipeline shrunk by half. That will hurt wells since its the banks biggest unit. Investment banking for wells could be a bright spot but analysts are looking for slightly higher revenue but lower eps, 98 cents on 21. 9 billion in sales. Later in the week, citigroup turns 5 and bank of america could surprise to the upside but tomorrow, with these two big banks, that will really set the tone. As we talk about the improving economy, whether banks feel comfortable leveraging will be key here. Thanks very much. Youll be all over it for us. Are we going to dominic or sue . All right. Sue, to you. Thanks very much. Lets talk more about this. Bob pisani is here, kenny pulcari is here. We are down 102 points on the Dow Jones Industrial average. Theres a lot of tension in the market today because of earnings. Youre focusing on the financials as well. Because its the week, right . Kayla points out its very important that people focus on the financials. Heres what i think will happen. You will get the sell the news mentality. You will try to rally the market and long term investors will take some money off the table, people are expecting some weakness as we move into the spring. All this news they are talking about such as jpmorgan, thats not new news. Everybody knows that. The madoff settlement. Using that as an excuse. Understood. Understood. When that news came out, people already reacted to that news and the settlement and all that. You might get a little push but you will hit resistance right away. We were flat until the jobs picture not quite as rosy as we think. Gdp forecast i think is 2. 5 to 3 , that was fairly mainstream, but the market really didnt like his slightly bearish tone, i think. And we dropped on that news. Especially given the fact that there seems to be a disconnect between the employment numbers and whats actually happening on main street. Its calling into question the analysts that i talked to, anyway, about whether or not you can really trust the employment data. Obviously, last weeks employment data, lot of people si say that was a weather fluke but it brings into question whether or not the reporting is accurate. The bond market doesnt feel that way. Theres a divergence between the two. If it was a real fluke, it seems the bond market would be unchanged friday and today, yet its not acting that way. This whole thing about the weather, it was too cold, people dont look for a job, i sit back and think are they kidding me . Because if youre really looking for a job and you need a job, the weathers not holding you in the house. Especially if you think theres a chance exactly. That whole argument is very, its numbing to me. Im thinking to myself, and im told the government was shut down for three and a half weeks, yet that number blew the roof off the bus, considering. With all that said, the markets not panicked. Sixmonth low, lowest since august on the fear indicator, thats the vix today. Vix. The market is not panicking here. Its not happy, either. Down 100 points. Deterioration. Thank you very much. To dominic chu for a market flash. Speaking of not being happy, check out whats happened. Lots of investors digesting headlines. The biotech issued a 2014 earnings forecast that was slightly below wall street estimates but it did manage to raise both its sales and profit forecast for years 2015 and 2017. Investors are focusing a little more on the short term outlook, though the stock is down. Remember, this is a stock thats up for the year, up around 70 over the course of the past year. They made the presentation at the jpmorgan annual Health Care Conference. Thats where Brian Sullivan is. He will be there live on street signs in the next hour. Sue, back to you. Lets check the oil and gold market, especially given the fact we are down triple digits now in the Dow Jones Industrial average. We have a fractional loss in the oil market. Crude is down 32 cents. Comex gold up modestly. Investors watching for a final deal with iran over its nuclear program. They got that final deal. Thats what had been affecting the oil market. The gold market saw a slight bid in it as we saw the Dow Jones Industrial average sell off. We will keep a very close eye at the final trade. Ty, back to you. Thank you very much. What do you call a group of top ceos . A gander, a pod, a flock . A cluster . Whatever you call it, we have a lot of them on cnbc today and they were all basically singing the same kind of tune on the economy. Our senior economics reporter Steve Liesman here with what the leaders of some of americas Biggest Companies are saying about their outlook for the year. Senior bird watcher. Yeah. Americas top ceos on cnbc today were singing the same tune about the economic outlook. It was an upbeat song. Unfortunately, it does contrast a bit with the song being sung by ordinary americans who continue to sing some variant of the blues. When youre going to hire another 11,000 employees worldwide, another 5,000 employees to support our increasing production in the united states. You see broader economy, you see the job growth growing beyond ford and the Auto Industry. Absolutely. We are seeing it in all sectors we support, especially housing and all the construction business, the energy sector. My belief is that there should be fewer headwinds in 2014 than there were in 2013. That sentiment echoed in just the past hour by atlanta fed president Dennis Lockhart who said he is more confident than he has been in years in his forecast for stronger growth this year. Lockhart saying quote, compared to previous januarys, we are entering this year on a more solid economic footing. Real gdp will expand between 2. 5 and 3 and i would not be surprised if we achieved results at the upper end of this range. Those comments not out of line with consumer attitudes, maybe just a bit ahead of them. Take a look. Consumer attitude in fits and starts, remaining well below 07 levels. Even below some of the better levels we have seen earlier this year. Heres the economics of it all. Better ceo confidence, if it leads to stronger investment and hiring, can lead to better Consumer Confidence numbers and that could lead to more investment and hiring. At the same time the dangers that Companies Get too far in front of average consumers or still play the waiting game which is to say the consumers lead the way and thats been a recipe for really lack luster growth. Thank you very much. It says up here out with steve. I dont mean it personally. It says out with steve, right . In with sarah eisen. Theres the trade right there, baby. Who covers you have covered big consumer names for us. Theres a lot of information today about a big deal about who is buying our drinks. It gets right to consumer trends. We are talking about the Japanese Company suntory offering a 25 premium for beam. Driving this higher price, beams crown jewel is makers mark. You may have heard of it. Strong brands. The stock beam is up almost 100 since it debuted in 2011, came out of the threeway split of fortune brands. The story here, the industry almost back to prerecession sales growth. According to trevor sterling, an analyst at bernstein research, in the united states, spirits consumption is actually growing faster than wine drinking, beer drinking is actually shrinking. We should note that beer is still the giant in terms of revenues, in terms of profits and in terms of volumes but spirits are seeing some high growth. Theyre hot right now. Its high margin products, especially when youre talking about premium varieties which is very in vogue right now. Another reason for the high price of this deal, beam was seen as one of the last men standing at least when it comes to publicly held spirits companies. Other analysts are pointing to brown forman, you know them for johnny walker, also constellation. Its mostly a wine and beer company but does have a small spirits biz. Otherwise, a lot of these Big Companies like bacardi and remy martin are family controlled and dont really show signs of deal making. Hot space, hot industry, particularly in the united states, and just the lack of assets or properties out there for deal making. I did a story a couple years ago on the samuels family which founded and is still involved with makers mark. Their biggest Growth Market at that time was asia and specifically japan. Bourbon had never been a big player in japan until makers mark. Bet that was one of the reasons why suntory got so interested. Japan is interesting, aging population, less drinking. A lot of japanese bands, kiran has gone after emerging markets in the spirits business. We have seen a lot of it. Diagio is the Industry Leader and has been playing the emerging markets acquisition, very active in that as well. U. S. Has been an interesting bright spot. Japan, welcome to kentucky. Good to see you. Sue, down to you. Some big news today out of detroit. Phil lebeau has it from the auto show. A big change for fords bestselling f150. Ill tell you what it is. Well talk about fords big gamble and what it means for the company. By the way, shares of ford up 5 in the last week. Yep, and up about 1. 5 today. You know, talk about vigorous debate. Take a look at this. A parliament where that debate got a little bit out of hand. See whos fighting and why in two minutes. 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Leading the way lower here, exxonmobil and chevron as Oil Prices Fall on an agreement with iran that takes hold next week. Also check out shares of disney, nike, microsoft all lower on the session as well. Thats helping to push that dow towards those session lows. Back to you. Thank you very much. Punches and water bolts became part of the debate in Turkeys Parliament over the weekend, stemming from the contentious process there of appointing judges and prosecutors. Looks like the cnbc newsroom. No, just kidding. This wasnt even the full parliament. It was just the justice committee. Sue . Yikes. All right. Lululemon getting slammed today. They hit a new 52week low, now down almost 16 at 50. 08. The upscale yoga retailer cutting its outlook for the Current Quarter. It says that sales have been off and been slowing and then there were the controversial comments by its founder. Stock really getting hit. Down 15 , almost 16 right now. Speaking of a different kind of stock, moving the other direction today, ford shares moving up by better than 1 . The automaker gearing up for a dramatic makeover for its bestselling vehicle. Phil lebeau speaking with the ford ceo about it today at the detroit auto show. Phil . Reporter you know, im not sure the public outside of the Auto Industry fully appreciates the move that ford is making with the f series. This is a bit of a gamble and a big step in terms of fuel efficiency. The new f series was unveiled today with one of the more dramatic reveals we have seen ever here at the detroit auto show. They are going with an all aluminum body. That means that they are stripping out about 700 pounds out of the weight of the f150. This is going to be an all Aluminum Alloy f150 that has been tested offroad. By the time it goes on sale later this year, ford says it will have ten million miles being tested, and they have sold more than 763,000 of the f series last year. Remember, this is the bestselling vehicle in the country for 32 straight years. The question is whether or not consumers will look at the aluminum frame and aluminum body and say sure, it will hold up, it will be durable enough. The ceo thinks its not a question of whether people will embrace this. The response has been fantastic. Of course, a real Value Proposition for the f series is the aluminum cab and aluminum box. It will save us over 700 pounds. We can downsize the engine, improve efficiency plus all the capability. The aluminum pound for pound is tougher than steel. Reporter as you take a look at shares of ford over the last month, its down over the last month but up almost 5 in the last week. I have to tell you, two things. The f150, when they do the final fuel efficiency ratings is likely to be well above 25 miles per gallon and second of all, i have not seen alan mulally this relaxed in a long time. I think he feels very good about the decision he made to pull out of the microsoft ceo search because he has not been this relaxed in a long time as he walks around here. Thats very interesting to hear. Hes probably delighted he doesnt have to answer questions from you, who asked him very directly last time about that very point. Lets switch gears here and talk about a bizarre story of a southwest aircraft that landed at the wrong airport. How does this happen and didnt Something Like this happen not that long ago . Reporter yeah. It seems to be happening places where i used to live. Last time it was wichita, this time in branson, missouri. I used to live in central missouri. This is a case where the southwest pilots went to the city airport instead of to the commercial airport where southwest has service. This was a flight from chicago down to branson. There was nobody hurt and the plane landed and more than anything else, its not only embarrassing for southwest but now you have the ntsb getting involved and saying how is it that the pilots, with all the technology thats involved nowadays in these aircraft, how could they land at the wrong airport. Second time we have seen this in the last couple months. Thats what i thought. I remember it was wichita. I hope all those people made it to the dolly parton show that night. Thank you very much. Reporter you bet. Sue . We are at session lows. The Dow Jones Industrial average now off about 112 points on the trading session. Thats pushed people into bonds and the yield on the tenyear is dropping. Were at 2. 83 . Coming up next, more on the markets plus it is called the woodstock of health care. The Biggest Health care investing event of the year is under way. Eli lilly stock is featured. It went nowhere in 2013 but how about 2014 . The companys ceo opens up his medicine cabinet exclusively for us from that big meeting. And the Health Care Sector a leader in 2014 so far. Dominic chu is looking at the best performers. They were leaders in 2013 as well, the second best performing sector in the entire s p. But health care has a whole different concept of components, insurers, drug companies. We will go through those and their performance next on power lunch. Start the engine. And shift through all eight speeds of a transmission connected to more standard horsepower than its german competitors. And that is the moment that driving the lexus gs will shift your perception. This is the pursuit of perfection. I worked a patrol unit for 17 years in the city of baltimore. When i first started experiencing the pain, its, its hard to describe because you have a numbness. But yet you have the pain like thousands of needles sticking in your foot. 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Those who have had a drug or alcohol problem may be more likely to misuse lyrica. Ask your doctor about lyrica today. Its specific treatment for diabetic nerve pain. To hear more of terrys story, visit lyrica. Com. Afghanistan, in 2009. On the u. S. S. Saratoga in 1982. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Lets get you up to date on the markets. Were off our lows, not by much. We were down 112 points, now down 97 points at 16,339. Its a fairly broadbased decline, not just in the dow but in the s p 500 and the transports are now down just about 50 points on the trading day. Lets take a look at some of the dow losers so far today. They include exxonmobil which is off 1 2 3. 1. 5 drop for microsoft and for chevron as well. Ty, up to you. Thank you very much. It is the Biggest Health care investing event of the year. Jpmorgans Health Care Conference kicking off out on the west coast. Health care, a leader in 2014, almost across the board. Its been kind of a stumbling 2014 but there you see health care up. Hmos, bioteches, hospitals all leading the market. Dominic chu looking at the best stocks to watch. Morgan brennan taking us inside the drug pipeline to look at which may be the next big best for investors. Dominic . Lets talk about this. Health care stocks are helping to pace the gains higher in the market again this year. They are one of the few sectors that are performing well. The sector is up around call it 2 , 2. 5 to start the year in an otherwise mostly down market. But which Health Care Stocks are the big movers . Among the best performers so far this year, pharmaceutical drug Company Forest labs up 15 helped along by its purchase of privately held avtallis. Then theres a hospital operator, Tenet Health Care up 11 . Medical device maker Boston Scientific up 9 . So within health care, a drug company, a Hospital Company and a Services Company and medical Device Company that are all in the tops here, in contrast to last year when all the gains were driven by a lot of the big biotechnology names. In 2013, four of the top six biggest gainers in the S P Health Care index were biogen, vertex pharmaceuticals, up between 77 to 115 on the year. Traders are looking for volatility and opportunities. They still look towards these biotech stocks that are very up and down. Look at Intercept Pharmaceuticals which soared over 500 last week on some positive test results for a liver drug. Still, though, in 2014, its the older, more established gains that are getting more attention. At least for now, they seem to be doing pretty well. Thank you very much. Lets transition to morgan brennan, who has been looking at which Companies Might be the next big breakout stars in biotech. So first a little background. The fda has four special high priority pipelines for drugs that could potentially be groundbreaking. Heres where it gets interesting. The approval rates tend to be higher for drugs in these pipelines. For example, the fdas first cycle approval rate for drugs that receive priority review in 2013 was just about 100 . Drugs that werent in priority review, roughly 50 rate. Thats looking at fda data. One designation thats really getting attention, breakthrough therapy. Since the fda rolled out this program in 2012, 37 drugs have made that cut. Cancer compounds represent the Largest Group with 12 drugs, followed by nine drugs to treat socalled orphan diseases and six drugs falling under the antiinfectives category. The company that snagged the most designations, johnson johnson. Keep an eye there. Other drugs recently welcoming expedited status, Peregrine Pharmaceuticals which just received fast track status for a drug tied to lung cancer. Also, priority review for Cubist Pharmaceuticals new investigatal antibiotic as well as a new drug for goshe disease. Lets not forget, galectin therapeutics which scored a fast track green light. This makes it a competitor to Intercept Pharmaceuticals. That was the one that was going way up last week. It was. This one rode its coattails ever since then. Sue, down to you. Thank you very much. Eli lilly shares moving higher this morning, the Company Announcing its reacquired the rights to an experimental migraine drug. Over the past year, shares are down more than 1 . Live and exclusively joining us from the jpmorgan Health Care Conference in San Francisco is john lictlighter, president and ceo of eli lilly. Pleasure to have you with us. Nice to be on the show. Lets talk about the pipeline which will lead us into this acquisition you did this morning. You know, you have lost some major patents in the last couple of years and analysts on the street have noted that have yyo been trying to build up that pipeline but that comes at a cost. Where is the pipeline for lilly right now and what has the cost been to the bottom line . Well, today we think weve got the strongest late phase pipeline in our history. We have over 40 molecules or nearly 40 molecules in what they call phase two and phase three development. Contrast that with a total of seven molecules in phase two and phase three ten years ago. So in the last decade, we have made substantial investment and have seen extraordinary productivity from our labs to bring the kind of late stage pipeline we have today. Last year, we made four Regulatory Filings in major countries around the world. We could have as many as three drug approvals and launches this year, two potential new medicines for type 2 diabetes and the antibody we acquired when we bought imclone five years ago and we hope to gain approval for its use as a single agent in second line or advanced gastric cancer. I note your costs have been elevated because of some of the things that you just highlighted. When do you think costs will normalize in the near term, the next couple of quarters . Well, we have had obviously to invest in r d even as we enter this very difficult period starting in 2011. We are losing all this revenue from these patents expiring. In the guidance that we provided for 2014 last week, we showed a significant decline in the absolute level of r d spending this year frankly because many of these programs have completed phase three, which is where the big bolus of spend lies. We have made commitments to our investors that if we launch new products and put these patent expirations behind us, we will return to margins that look more like our margins have historically later this decade. Tell me about the acquisition or better said, the reacquisition of the migraine drug that you originally licensed out to i think its arteus pharmaceuticals. You arere taking that back in house, as it were. What are your hopes for that particular drug or molecule . First of all, we have not released the data yet. The data on which we made the decision to acquire the molecule was based on a randomized phase two study looking at prevention of migraines or the frequency of migraines in people that are particularly prone to getting migraines. We hope to publish that data in a Major Medical journal later this year. But i think beyond the interest in this molecule and this pathway as a means to treating migraine, is the idea that is behind this, which is lilly partnering with venture capitalists, in this case, atlas, in order to share risk around assets that may come from our laboratories or from other sources. Biotechs or academic laboratories. Take these molecules to proof of concept, then with a positive proof of concept, monetize that, in this case by doing the sellback to lilly. We think its a very interesting way of really expanding the pool of molecules that we can consider for entering into phase two. Thats one of the reasons why the stock is up today. You are obviously a very global business, but i would like to broaden it out very quickly as we wrap things up. For your sense of how the economy is doing, from your office and from what you hear from people on the ground, how does the economy look to you . Are we in a slow and steady recovery . Well, i think its still a mixed bag globally. I think we are starting to see some resurgence in europe. Its still a very challenging place for our industry to operate. We see tremendous opportunities in japan and in china. In the u. S. , i think the Major Economic news for us is the implementation of the aca. Frankly, we dont see any Significant Impact that its going to have this year but i think we are going to continue to follow the evolution of the aca to see what sort of insurance plans do people accept, what sort of drug coverage comes with those plans. We want to make sure that people who are insured in this country have access to innovative medicines. Thank you very much for joining us today. Appreciate it. Good to talk with you. Thank you, sue. Nice talking to you. Up to dominic chu for a market flash. Losses are mounting in the s p 500 as well as the dow, like we told you. The index is at session lows right now. Pressuring the index, you got names like intuitive surgical, also mckesson on its failed bid. Scripps networks talks break down following kohl and the gap also lower as well. Overall, those are the names heading lower and driving the s p towards the levels were seeing right now. Back to you. Thank you very much. That has the Dow Jones Industrial average off about 106 points. We did see a brief movement in the gold market right before the close. We finish up about 4. 50 on the gold market. We had some slight gains in the silver market and also in the Copper Market so the entire metals complex is pretty much on the upside. As for Interest Rates, Interest Rates have been moving lower in todays trading session because of the selloff in equities. Keep in mind, its a heavy earnings week and thats going to roil the markets maybe to the Positive Side today. Its to the negative side. But that volatility has sent people seeking solace in the bond market. We have yields in the ten year in particular, i think it was 2. 83 . Youre up to date in the bond market. Ty . That is exactly what it was. What a little dip for that yield on the ten year bond from about 3 just last week to 2. 8 . Targets ceo speaking for the First Time Since the retail giants massive data breach. Exclusively, he did so with becky quick. Whats he doing now to prevent another attack and what does this all mean for shoppers and investors who own those target shares . Target not alone, of course. Neiman marcus the latest retailer to fall victim, hackers getting access to Customer Credit card data. What can businesses do to protect themselves . How about hacker insurance. What is it, what does it protect, how much does it cost . We will speak with one company that provides it. In todays market, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. 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At a company thats bringing media and technology together. Next is every second of nbcuniversals coverage 0f the 2014 olympic winter games. Its connecting over one million lowincome americans to Broadband Internet at home. Its a place named one americas most veteran friendly employers. Next is information and entertainment in ways you never thought possible. Welcome to whats next. Comcastnbcuniversal. Welcome back to power lunch. The dow transportation stocks are getting hit hard. Theyre near session lows right now. Leading the index lower, a trio of airlines, alaska air, southwest and jetblue. Also check out fed ex and jb hunt transportation. Remember, they are to the downside. Earlier today, they did touch a record so a quick turnaround for those transport stocks. Back to you. Thank you, dom. The target ceo Gregg Steinhafel speaking for the First Time Since the companys cybersecurity breach exclusively on cnbc with becky quick. The retail giant under fire for the number of days it took to initially disclose the hack attack to its payment system, exposing millions of credit cards and debit card numbers. Some of the information stored on them. Steinhafel said he was devastated when he heard about the attacks and is making the data breach his top priority. He also spoke about what businesses need to do in the u. S. In the united states, we are using Stripe Technology and thats old technology. There is a better way and its called emv technology. Is that the chip . Thats the Chip Technology thats very pervasive and a wellestablished standard globally throughout the world. We think its time for america to make that commitment to get to that standard. There has been some discussion about end of 2015. We think its important that we get there as a nation and we want not only to participate in that conversation, but we want to lead in that conversation, too. We think its really important that we have safe and secure environment and that Chip Technology is the right technology and we should adopt that. Target is not alone. Neiman marcus also getting breached. The upscale retailer confirming it was a victim of a cybersecurity breach in middecember. An undisclosed number of customers cards were compromised in that one. Sue herera moderated a big panel at the Retail Federation conference yesterday. The nrf calling for tougher Security Standards that could mean more spending for the industry at its banks and business partners. Just how vulnerable are businesses to hackers . Basically anyone with an Internet Connection can be at risk. David duragios is Vice President at burns and wilcox, a specialty insurance wholesaler, and they sell hacker insurance. David, what is hacker insurance . How much does it cost for a Typical Company . Hacker insurance is commonly known as cyber and privacy liability. Before we even get into identity theft, its all about the postbreach response services. Everything we have seen target do in wake of the breach, bringing in a Forensic Team to help identify the size and scope of the breach, having a team draft notification letters and send them out to all affected individuals so theyre in compliance with whatever state and country those individuals are located in, setting up a call center that can service any customers that have been breached and monitoring credit, fraud alerts and freezes. Thats critical if there has been a breach of credit and debit card information which we have seen, or Social Security numbers. The coverage basically covers the cleanup of the mess, right . Thats what i hear you describing there. Absolutely. These policies evolved tremendously since they were first introduced. First they were all about identity theft. Now its about cleanup and how to maintain the reputation and stay in compliance. Do you also inoculate the company that has been breached from financial liability lawsuits brought by individuals whose information has been breached . Absolutely. You are going to see lawsuits coming from any affected individual as well as the banks. With regard to chase, they reissued two million payment cards. Its a great organization. They wont do that out of the goodness of their heart. They will be coming back from wherever the breach occurred from and they will want to recoup that money. How Many Companies have bought this kind of coverage and what is the typical profile of a company that does . This area of specialty insurance is greatly underutilized across all business. We are seeing the strongest growth from the Health Care Service providers as well as small and midsized businesses. There has been a misconception about the price regarding these policies. You can get policy, an annual policy for as low as 500 a year. Of course, it depends on the industry segment that youre in, the type of information youre storing. But they are incredibly affordable. A lot of businesses just dont realize it. Affordable at that level. Obviously for a larger company, the premium would go up much higher, wouldnt it . Thats correct. It really depends on the type of information that youre storing. If youre in the retail space, you are prone to serious attacks and we have seen that going back to 20062007, when t. J. Maxx was exposed and had to notify 94 million customers. Obviously with an organization such as that the price will be considerably higher than a Midsize Organization that is operating in the manufacturing industry. Thank you for being with us. Appreciate your information there. In todays Yahoo Finance question of the day, we asked how concerned are you about your data. 62 of you say you are very worried. Companies and the government need to do more, just more. 13 say not worried. 25 say theres no way to stop hackers. Sue . We have another triple digit decline in the Dow Jones Industrial average today. We will talk about the market and show you some of the big movers coming up. They include gilead sciences, principal financial, first so lar and Harley Davidson off off better than 2 . [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. A Research Tool on thinkorswim. Fifteen minutes could save you fifteen percent or more on car insurance. Everybody knows that parker. Well, did you know auctioneers make bad Grocery Store clerks . Thatll be 23. 50. Now. 75, 23. 75, hold em. Hey now do i hear 23. 75 . 24 hey 24 dollar, 24 and a quarter, quarter, now half, 24 and a half and. 75 25 now a quarter, hey 26 and a quarter, do you wanna pay now, you wanna do it, 25 and a quarter sold to the man in the khaki jacket geico. Fifteen minutes could save you. Well, you know. Before we get you back to power lunch, heres whats coming up in street signs in just a few minutes. Special bicoastal version here at the jpmorgan Health Care Conference with the ceos of several companies, along with a name you may not be familiar with which is making money leasing space to the biotechs. Plus with the triple digit market decline, mandy has jim paulson on to talk about the market and something very cool for you car lovers. Phil lebeau will show you the new bentley. Big street signs bicoastal in a few minutes. Now back to power lunch. See you at the top of the hour from beautiful San Francisco. All right. Its not so pretty down here on the floor. Bob pisani joins me at post nine. We just touched new session lows, down 118 points. People wonder why this is happening in the middle of the day because we started off fairly quietly. Take a look at the dow industrials, moved down the middle of the day. Lot of people pointing to the fact Goldman Sachs was cautious on equities, lockhart came out, gave what i would call a tepid analysis of the u. S. Economy, not full steam ahead, not stop. Markets just drifted lower on that. The dow yields on the tenyear drifted lower as well. We were just talking about this, about the fact that some people are speculating, put up the full screen, about the fact that since we had a good move into treasuries so far this year, Pension Funds might be taking profits on their stock gains, then using the money to rotate into longer dated bonds which now offer higher yields. Almost 3. 8 . Pension funds dont report these numbers so we are left to sort of speculation but it fits the facts as we know it. Meantime, sectors are having problems right now. Put up some of the energy stocks. Want to point out, all year we had problems, no matter what youre looking at. These are todays declines. Exploration and production, the drillers, anything are having problems. This has been a theme all throughout the year. Another theme has been general weakness in the retail group. We saw some of the Retail Companies came out with comments today. A lot of the big names, none of these had any comments today. Gap, kors, tiffany, coach. 4 decline in gap. Thats a pretty big percentage move. These are Just Companies that are in this space today. We now know from the Companies Reporting that there have been discounts that have been continuing well into january and that are going to continue. Express basically said they are having this issue all throughout the month of january. Its not just they stopped on december 31st and decided they were going to go ahead and full price. They are discounting well into january. What theyre really saying is they dont have any pricing power. They have no pricing power. They cant get the consumer into the store or online without some sales were fairly tepid in january. Off 3 , 3. 5 , with 50 off. We see the internet really biting now. Yeah. Could be. Thank you so much. Lets head up to the nasdaq. Seema mody seeing some movers to the downside there today. Losing some steam at the nasdaq, still above 4100. Thats a key technical level that traders watch. In terms of the biggest losers, security names semantec downgraded. Biotech names also under pressure. Health care of course very much in focus as the jpmorgan Health Care Conference kicks off in San Francisco. A couple of winners in the Consumer Tech space, f5 networks the best performing stock on the nasdaq 500 and then theres two specific stocks stories. First up, a bold call on the street. Maker bought is a consumer 3d printing division. And blackberry, the stock has been on a bull run this month but oppenheimers downgraded to underperform is pushing the stock lower. On a separate note, the ceo of blackberry continues his hiring spree, today announcing a new leader of global sales at blackberry, eric johnson, who most recently served as an executive at s. A. P. Back to you. Thank you very much. You want five reasons why the dow is down today . Here are five. Exxon, disney, microsoft, verizon, chevron. All those Companies Taking hits today. More in two minutes. So ally bank really has no hidden fees on savings accounts . Thats right, no hidden fees. Its just that im worried about, you know, hidden things. Ok, whys that . Well uhhh. Surprise um. Well, its true. At ally there are no hidden fees. Not one. Thats nice. No hidden fees, no worries. Ally bank. Your money needs an ally. And truecar users. Save time and money. So when youre. Ready to buy a car, make sure you. Never overpay. Visit truecar. Com today. Welcome back to power lunch. Three stocks are taking it on the chin today, in particular soda stream first off reporting preliminary lower than expected Fourth Quarter profits on lower than expected sales. Also, lululemon cutting earnings and guidance for the Current Quarter and Intercept Pharmaceuticals falling. It could be plain old profit taking or it could be that late friday, news came out one of its experimental Liver Disease drugs could be experiencing abnormal cholesterol levels rather than those taking a placebo. Maybe possible side effect. That stock up more than 500 last week on positive data from that same trial. Tyler, back to you. Amazing move in intercept pharma last week. Our next guest says the markets are being pulled down short term on earnings fears, coupled with valuation concerns. On the phone is christina cooper, u. S. Investment strategist. Welcome. Thank you for joining us on short notice as the dow continues to melt away just a little bit. How worried should individual investors be about this sort of halting, stumbling start to 2014 in equities . Well, this start is probably fairly appropriate given the kind of runup we saw in 2013. Recall some of the biggest concerns moving towards the end of 2013 were about how scrappy the market had become. Now we are seeing a good level of digestion plus today we are seeing for the first time significant fears in the stock market. But this should all be assumed to be fairly normal and natural in terms of the response to what we saw last year. One of the things that im hearing from traders and analysts down here at post nine is that theres a worry about valuations. Are you worried about valuations . Do you have those same concerns that some of your colleagues on the street have, or not . Well, we recognize that valuations are stretched right now in general for u. S. Stocks, but that doesnt mean that there arent pockets of opportunity. What were recommending is that investors be far more discerning this year than they have been in the past few years. Thats because as the fed reduces its quantitative easing, its support, what were going to see is a stock market that goes from being supported by asset purchases to one thats being supported by fundamentals. That means we wont see a rising tide floating all boats going forward. What were going to see is stocks standing on their fundamentals so its going to be a very different market environment. It will be much more stock tickers environment so investors should Pay Attention to valuations but shouldnt necessarily be fearful of them. They just need to be choosey. Again, thank you for joining us on short notice. Christina hooper. Sue, basically what she said was dont freak, but be selective. When we come back, three of the biggest etf winners this hour. Es tdd 18886486021 just waiting to be found. 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There was a winner as well in the Biotech Sector but now it is a loser, down half a percent on the trading session like a lot of other things in this market. A real choppy start to the trading year. See you when you get back home. That does it for power lunch. Street signs begins now. Hello. Welcome to a very special bicoastal edition of street signs. Im mandy drury. Big story here at hq is the markets. Lets take a look at what the dow is doing. It is currently down by exactly 100 points. However, Brian Sullivan is over there live in San Francisco, a mile away from whats going on on wall street. Hes at the 32nd annual jpmorgan Health Care Conference and the biggest names in health care are there. He has a jampacked cantmiss lineup for us, right . Tell us exactly what you have on tap. You really s