Of your Home Mortgage applications . Well talk about that. And the great annual American Airline report. Who is on time, who is late, who gets your bags there, who loses them is anybody comfortable on those planes . Well break down the numbers. First to sue. I know, its good to be with you. Lets take a look at some of the market indicators. Take a look at the etf, the dia is down about 3 4 of a percent. The triple qs off almost a full percent. The spider is down almost a full percent. The russell 2000 and thats what a lot of people are watching is down 1 1 3 . Take a look at the tenyear note. We havent seen a dramatic move down in Interest Rates, but we have seen a little bit of a move. The yield now is 2. 69 . And the gold market is not seeing as much of a flight to quality as you would think. Were off almost 7 on the trading session. The vicks as you well know tracks volatility. The vxx is an instrument that partially tracks it. Its up 5 in two days. With us now to talk about all this is our cnbc contributors. An gail, im going to turn to you. A couple months back, we were talking about the breakdown in some of the technicals. And you were expecting a decline in this market. As you look at the chart, do we have more to go technically in this market to the downside . Sue, absolutely. Friday was key in this likely breakdown to come. Weve seen so much weakness relative to some of the safety of large cap broke so to speak on friday. I think this signals were going to see a formal correction in the nasdaq composite. Its hard to think that the dow is not going to participate. The investors are really getting out of these growth names. The nasdaq 100 is down almost as much as the comps. Theyre clearly going toward the latter. That being said, we need to think about defense here. A falling tied is probably going to take down many of these names. Kenny, if i can turn to you. If you are a longer term investor, this could be an opportunity to get into some of those names, maybe some the dividend players or some of the larger cap stocks that may be a little bit more resist tent. I think youre right. I do agree. Money is clearly coming out of those highgrowth names. But the large caps, the dou and s p names are not getting pummelled. Nor do i suspect they will. Were probably looking for an 8 or 10 correction. 7 would take us down to the moving average. Were almost at the 50day, lets see if we really hold here. Earning season is already expected to be negative. You wrote about that, about the fact that were held hostage to earnings but that the expectations for earnings have been brought down and may already be in the market. I think its been the case during this entire recovery to a degree. Were always looking at a low lowerilowe lowering tide of earning. Numbers have really just been guided down in a strange psychological way. Speaking about the 50day, we look at the nasdaq and russell 2000, theyve gone right through. I think its difficult to think that the s p and dow are not going to also make that slice down further. A lot of those charts look very vun neshl to me. If they miss, i think the Broader Market actually does not suffer that much. I got to leave it there, guys. We have so much news to get in this hour. Ty, over to you. Thanks folks. Lets take a look at a oneweek chart of the nasdaq. You see the big dive on friday. Today, nasdaq enduring the biggest threeday drop since november of 2011. There you look at the past week. Yeartodate, the nasdaq 100, yeartodate, it is off about 2 3 4 . Were in time yaur with what the numbers are telling us. Lets start off with todays number because it is getting a little bit bumpier here. Down about a percent. Both of these industries were actually in the green at one point in morning. We have seen the nasdaq lose about 4 . That is the worst since november 2011. This is actually the type of action that traders do not like to see. The fact that we tried to rally a little bit this morning, by couldnt hold those levels. Traders say, look, thats not a good sign. Basically means there was no confirmation of the bottom. Its the same culprits that we have been talking about for the past couple weeks. So biotech stocks. A lot of those names down about 15 since hitting highs this year. Momentum names, netflix is managing to hang onto gains. But take a look at tesla, facebook. All these names are in the red again. Finally got to talk about google, amazon and apple. They are also down today. They have a big impact on the index. In fact, they are now negative for the year. Were talking about this rotation into value tech names. So microsoft, intel, are all higher on the day. Weve been doing some digging. Heres some of the technicals that people are talking about. We have sliced through both the 50 and 100 day moving averages. Since hitting a 14year high in early march, we are now down about 7 from that level. Again, if you take a look at those momentum names and biotech names, if you look at where they hit their highs this year, so many of them are near or at bear market territory. A lot of people telling me that they think selling is going to continue. Theres a lot of questions about whether this a trade or a trend. Right now, theyre telling me this feels like a trend. Lets go to the original flash boy from market flash. Take a look at some of the big losers in the nasdaq so far today. Check out whats happening with trip advisors. You have them all leading the way to the downside. If you take a look at the momentum players that continue to get harms, price line, amazon. Com, facebook, tesla, all of those names are finding some struggle today. Where is the money going . Its utility stocks with their high dividends. Look at duke energy, ppl corporation, southern company, all of those stocks are safely in the green. That is the single best performing sector in todays trade. All right. Thank you so much. Shares of quest corps up 15 on the trading special today. After they announced a buyer for 6. 5 billion. Joining us on the phone to talk about that, barbara ryan, managing director at fti consulting. Nice to talk with you again. Barbara . Oh. Sue. Sorry. Thats all right. Youre working on the next big deal, i know. No, no. Talk to me about the consolidation in this industry and why you think that perhaps theres more in the pipeline for specialty pharma. Shire sure. So we have line the lions share in specialty pharma as you just discussed. We actually hosted a webinar on this subject a couple months ago. They are growing rapidly, but haveportfolios. Theyre looking to diversify into a variety of other products and geographies. See a lot of them having done big transactions in places like ireland. And that has given them an accelerated cast low which strengthens theyre ability to do future deals. What about the cost of capital right now . How much is that factoring into the flurry of activity . Some of these deals are coming in at a nice premium. Absolutely. I think its a big factor. Shareholders are embracing these deals. They like them. They like the diversification. They like the axccelerated growth. As i mentioned, the ability to lower tax rate on companies. Announcing the deal with quest corps. All benefits that lowers their cost of capital. These companies have really been able to accelerate their growth portfolios. Perrigo has done 17 acquisitions over the last five years. I think that strategy is now going to be super charged. Terrific. Thank you so much. Always nice to speak with you. Thank you, sue. Have a great day. You too. Ty . There you are right next to me. Im right here. New mortgages hitting a 14year low. Where does the Housing Market stand with numbers like that . Diana is in washington. We also have susan, a real estate watcher at the university of pennsylvania and robert frank is here to tell us about one zip code really in demand right now. On the mortgage numbers . Like you said, not since the year 2000 have banks been doing so little morning lending. You can blame a lot of it in the plunge in refinancing due to the jump last year. Refi applications are down 67 . To buy a house, those Mortgage Applications are also down, 17 from a year ago. I spoke to paul miller whos been revising his numbers down every month. He was at 1. 5 trillion. Now hes down to 1. 1 trillion. Compare that to 2013. Besides those higher rates, whats the problem . Credit standards. Which usually come down a little bit. Not easing at all. Only about 30 of 2013 loans went to borrowers with a fico credit score below 720. They also note that nearly half of all transactions are in cash. Banks are not willing to ease up despite what you may have heard about wells fargo. That is a very, very small subset. Miller also says other banks have told them no way are they going to go below seven fico. We have lots more numbers of course online. Tyler . Thank you very much. Lets bring in susan. Shes a professor of real estate sf finance at the Wharton School of the university of pennsylvania. Welcome back. Put those numbers into context. What do they mean for me this spring if im buying or selling a house . Well, they reflect the slowing Real Estate Market overall except if you are selling to an investor. Typical owner putting their home up for sale is not selling to an investor. And the huge upmarket we saw last year is last years news. This is a reflection of the demand for housing is off. That shown by this big plunge. Is that demand being driven by a declining affordability, that the prices have gotten beyond the reach of many potential buyers and figuring into that is the rise in Interest Rates . Yes. Absolutely. A hundred basis points rise in Interest Rates. Huge rise in prices. Double digit. Also credit standards which are not easing makes it very difficult for the firsttime home buyer whos missing in this market. We appreciate you being with us. Susan of the Wharton School. One more big real estate story. It has to do with the big money moving in and out of one particular zip code. Hi, robert. 90210 is still the star zip code when it comes to real estate for the rich. Bifrly hills Beverly Hills had 26 of those mega homes sold last year. Thats up from 21 the year before. Ranking second, was the zip code of l. A. Following that was palm beach florida with 12. This house on mountain drive, lets see if we can see it there. Its a restored 1920s villa. Yours for 24. 9 million bucks. If youre looking for more affordable mega home, fivebedroom house, his and her walkin close ets, yours for only 11 million buck. But youll be on the same street where Nancy Sinatra once lived. Ty, the worlds biggest election is kicking off today. India is heading to the polls to vote for their next prime minister. That voting process is a long one, though. It will take place over the course of five weeks. Results expected about may 16th. Were taking a look at what it means for investors. Absolutely. Experts that i speak to say that this will be a decisive moment for the country. Because india is dealing with a a growing list of challenges from high inflation, lack of infrastructure and slowing growth problems. Their incumbent party has been bramed. Congresss lack of reform has frustrated some citizens. Indias congress is not winning the race. Who is . The representative of the opposing party. He has been using indias laundry list of problems for ammo for his campaign in hope his party will get india on the right track. He has a controversial past. Allegations that he turned a blind eye in 2002 in a deadly attack resulted in the u. S. Denying him a visa. S p capital iq says a reformed government under the power of him could help indian stocks rally even further. And the chairman of india telling me in a stable government forms, we could see a rise in deal flow. Theres a number of ways to play the indian market. Theres the merging market index and then theres etx. Power shares india portfolio all of which are up over the past one month. Or if you want to play the indian rupi, theres the index. Thank you very much. Some of the best performing funds these days do not come from managers with wall street addresses. They come from places like tampa, nashville, reno. Were talking about public Pension Funds that are putting almost all of the big name funds to shake. Were going to tell their stores all this week on prurge. It all starts after this quick break. Plus, whats it really like to fly these days . The data says that the quality of Airline Service has never been higher. So why are we got geting to where we go as quickly as we used to. And well talk about that when power lunch returns. Mine was earned in korea in 1953. Afghanistan, in 2009. Orbiting the moon in 1971. [ 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. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Welcome back to power lunch. The small cap stocks continue to take a hit. The index is down about 5 . That of course being the russell 2000. For the year, though, its still up about 23 for the past year. As for individual stocks, the big losers include wwe and sun ed son, all taking hits. So the small caps just the latest to at least see bigger declining on their particular issues. Tyler, back over to you. New developments in the search for that malaysian flight 370. An Australia Navy vessel did pick up signals. Authorities say it is the best lead yet in the monthlong search for that missing plane. The pinger locator picked up signals consistent with those of a flight data recorder. They were heard at a depth of nearly 15,000 feet. Could still take days before investigators are confirm whether the signals did in fact come from a submerged aircraft. Results from the 24th annual Airline Quality ratings in. While few of us can say we enjoy flying these days, its up 15 so far this year. Phil is live in chicago. You dont enjoy flying . Not really. Youre not a loan. The quality of Airline Service, according to the report, has never been higher. But theres good news, bad news in this report. And well tell you which airlines did the best. Overall complaints to the dot. , they were down about 15 . And the quality of service has hit a record high according to the Airline Quality report. It calculates four different factors. The negatives, airlines mishandled a higher percentage of bags last year. And the on time arrival percentage dropped down to 78 . Who is still struggling in the number one airline again Virgin America repeating the same. It was number one two years ago followed by jetblue, hawaiian and healthcaalaska moves into t tooif. The worst, includes american eagle. When you look at shares of the airline index. Look at this, you cant compare what they have done to the s p 500. Off to the races as i like to say. Its been a spectacular year. For those on radio, thats a 51 gain in the airline index. Thanks so much as always. Another rough day for investors. So which stocks do some of the biggest heng funds have on the figure money out there. C dominic, you fill many shoes around here. I do. Youve been looking at these stocks. Its always kind of fun to watch what the smartest guys in the room are doing, right . Absolutely. So they have taken a look at the 50 biggest hedge funds out there. Theres no surprise when you look at the stocks popular among them. Many of these investments havent worked out so well in 2014. Shares of gm given all the news around the recall, 18 of the 50 top funds held a position as of the end of last year. That stock is down so far 15 in 2014. Then theres city group. 20 of the top 50 funds held citi shares as of the end of la year. Amazon. Com, one of those big momentum stocks weve been talking about so much, that stock has lost a fifth of its value just so far in 2014. Heres one thats interesting. Netflix, it turns out it was one of the most sold by funds between the Third Quarter and the end of last year. Meaning they were already getting out of it and that stock has continued to slide with stocks down 8 . Maybe it started at the Fourth Quarter of last year. I think youre right. Well see you on the market flash. Absolutely. A major move this week sparking fears about using your bank atm. Were in new york. Yes. Sue, i drew the long straw today on assignments. If youre wondering whos using old software, in all likely, its your bank atm. That story coming up on power lunch. [ bagpipes play ] make it happen with fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Why relocating manufacturingpany to upstate new york . I tell people its for the climate. The conditions in new york state are great for business. New york is ranked 2 in the nation for new private sector job creation. And now its even better because theyve introduced startup new york dozens of taxfree zones where businesses pay no taxes for ten years. Youll get a warm welcome in the new new york. See if your business qualifies at startupny. Com without standard leather. You are feeling exhilarated with frontwheel drive. You are feeling powerful with a 4cylinder engine. [ male announcer ] open your eyes. To the 6cylinder, 8speed lexus gs. With more standard horsepower than any of its german competitors. This is a wakeup call. Welcome back to power lunch. Earlier we told you about the sell off in small cap stocks. Thats bleeding into the mid cap stocks. Its now below its 50day leading average. The mid cap still up about 20 . American eagle, 3d systems, also bob evans form farms and alo. Back over to you. Thank you very much. Now, if you have windows xp, you might want to get rid of it. Microsoft no longer sending updates. Every day you are less and less protected. Well get to john ford for more than that, but first to kayla on why this is a big problem for atms. Thats true, ty. It might surprise you to know that 95 of the a