Hes identifying Companies Vulnerable to hackers, and then shorting the stock. Is it legal . Is it a plausible strategy . Is it Good Business . Meet him and a former s. E. C. Enforcement attorney. Its kind of a rough day here. Tyler told you about the dow, but were going to focus in specifically on the nasdaq and the s p. Right now we have the s p trading on the minus side basically by just about 2. 75 points. The nasdaq is down 37, almost a full . The russell 2,000 is off 1. 25 . The etf that follows those stocks. And you can see that with the exception of the dow spdr, theyre all in the red. The transports have had a very rough weak session and a half, i guess, for the last couple sessions. Were down another 23 points, so its not been a good start to the week there. Bob pisani joins me, and art cashing pointing out that the nasdaq basically didnt wait for europe to close before it got a bit to the down side. The dow, as i know tyler just had it up, theres not a lot of catalyst for the decline weve seen in the internet stocks today overall. Its simply a problem with the continuation we saw last thursday or friday, so the old internet stocks, yelp, zynga, facebook, we could go down the list here, but i want to contrast this to new tech, sue, and put up the old tech names. Apple microsoft, you see what im talking about . Implts yeah. Old is new again. Exactly i bflt m is considered a value stock these days, by the way, so thats part of the problem, the continued sell jot in the internet names. The investment banks are a problem, too. Financials are weak. I dont want to just blame everything on internet stocks. They suspended their capital,s and redismissing their plans, but theyre also to the weak side. So very defensive tone. Take a look at telecom, staples, utilities, reits. All those are notably to the up side. There will be some of the consumer staple names as well. So theres nothing really obvious. We had some health care m a we spend time on on squawk on the street, and spending home Sales Numbers that briefly lifted the markets, just not enough. But rotating out of the new back into the old. Thank you, bob. He, dom. Another step in that rotations story, another tough day, you talk about the opposite or cal d. Think priceline, amazon, tesla, twitter, if its a momentum stock, its pretty much taking it on the chin. Lets highlight netflix as well. The stock is down more than 30 since sitting the alltime high of 458 back in the beginning of march. That rotation from out of the new tech into old tech is playing out specifically in those names. Back over to you. Thank you, dominic. The past several weeks we have been focusing very specifically on the socalled momentum stocks. Stocks that move woust news. They move down, because people want to sell them. Now expect news on many of these stocks, as they begin to report quarterly numbers. Seema mody . Thats right. Still to come this earnings season, reports from a few highprofile companies. Investors will be watching to see if the companies have what it takes to recover from their recent falls. Twitter, which is down over 40 since december of 2013 records earnings on tuesday after the bell, thats tomorrow. Aside from sales and Earnings Growth, analysts say the key metrics will be Earnings Growth and whether those can support the lofty multipallets. Linked in reporting on thursday, on revenue of 467 million, which would be a 44 jump. With over 300 million members gallonly, analysts will be looking for guidance on how the professional Network Plans to monetize on the international base. Lastly Online Travel giant expedia will report on thursday. Down about 29 since the february high as more users migrate to mobile, analysts will be looking to how many customers are using expedias mobile app. Experts say if these companies are able to Beat Estimates and provide upbeat guidance, sentiment may change. Tyler . Seema, thank you very much. Pending home sales picking up in march, the first jump since last june. National association of realtors says their sale index was up 3. 4 , but still far below where it was a year ago, but thats not even the big housing news of the day. Surprise me, diana. Shock me. I will do my best, tyler. Look, march numbers were better than expected, but far weaker than a year ago. That as analysts revising down dramatically. Their total Sales Numbers for 2014. They had ago many as between 5. 25 and 5. 75. Theyre now estimating between 4. 75 and 5. Why . Some bad weather at the beginning of the year, but really its about weakened affordable and shift from allcash investors to the credit dependent regular buyers. Theyre not revising their price estimates, which continue to gain, in certainly markets, prices have actually hit new peaks, that from black knight financial. That gap is closing fast. In addition, analysts say credit is not loosening at all. They point to fha, its market share went from over 40 in 2012 to 22 today, despite a drop in the average fico score. Thats because premiums went up. It all goes back to affordability. That again is why analysts are revising if estimates lower. Sue . Thank you very much, diana. Overseas the mayor of ukraines second largest city gunned down on the street. Reports say he was riding his bike when eyewitnesses say multiple gunmen opened fire. He was hit in the back. The last report we received is he was in surgery. All this on the heels of new sanctions, and robert frank reporting on the new sanctions today from washington targeting russians. Well talk about that in a moment. First to kate kelly on u. S. Companies with energy ties to russia. Expanses sanctions today in russia that you just mentioned are the latest potential blow to Multinational Companies doing business there. Some of the stocks involved are already taking a hit. The most obvious point of tension is the energy sector. The sanctioning today of igor accept chin, who running the largest company, could have bp owns nearly 20 of it, and Royal Dutch Shell is another with ties to the Russian Energy business, albeit with stronger exposure on the natural gas side. In the financial arena, Credit Card Companies like visa and mastercard, which have been forced to stop processing payments through certain russian banks are already taking a market hit. We heard on friday from visa it that the session ways should shave pencies off the earnings and banks may be affected, too, including stu group, which counts russia as a major regional market, and morgan stanley. Not so much an earnings hit, but it could affect that deal. Finally consumers names like the beverage makers, pepsico is and co, while having a much smaller exposure still has a toehold in bottling there and spent heavily on the sochi olympics from a marketing standpoint. Obviously the ripple effects are still to be felt from that particular part of the story. To robert frank with more on the specific sanctions. In terms of the companies there could be issues here, but in terms of putins money, this was a slight tightening of the noose. There were no new billionaires targeted with todays sanctions. All seven people slapped with travel bans are political leaders close to putin. There are, hour two prominent being people. Igor sechin, but rosenft was not sanctioned. The company will continue to have banks tim chengo said he sold that stake before the last round of sanctions, but the white house was suggesting that others would be mentioned today, but they were not in fact on todays list. Perhaps maybe they didnt have proof linking them, or they may be saving them for a later round, but for nour, most of them are breathing a side of relief today. Well see what the European Reaction is. A lot more affected, absolutely. Ty, up to you. Sue, terrible tornadoes ripping through the south this weekend. Storm chasers, people just caught in the path of the twisters caught the tornadoes on tape. Look at that. The tornadoes were reported in iowa, kansas, missouri, and nebraska. Rescue crews are still active throughout the entire region, but so far were told at least 16 people have died, 14 of them in arkansas. Are more twisters on the way . Heres the weather channels greg postel. More Severe Weather is likely coming our way. Lets have a look at the area shaded in red. Ought modes are possible today hay, high winds, even some tornadoes. Of course, the other hazards that usually go along with lightning and maybe some heavy rain. Across a wide area of the country. Lets time it now. Beginning later on this afternoon, watch out, there could be some big thunderstorms rolling through there that could be tornado producers. Stay tuned for the rapidly changing weather conditions across this area, elong after dark, these storms will be moving very fast with very little time to react. Tomorrow we also have a chance for severe thunderstorms in many of these same locations. Against tomorrow, all modes of Severe Weather are possible, including hail, high winds, and even some tornadoes. So stay tuned for all the latest. Back to you. Thank you very much, greg. Cnbc fed survey participants weighing in today. Steve liesman has the result. Interesting stuff as always. Really unexpected. This hour well tell you where they stand on growth and the chance of recession. Find out which way our fed gang believes the economy is rolling, rolling, rolling, rolling, next on power lunch. Honestly, im pouring everything i have into this place. Thats why i got a new windows 2 in 1. It has exactly what i need for half of what i thought id pay. And i dont need to be online for it to work. It runs office, so i can do schedules and budgets and even menu changes. But its fun, too with touch, and tons of great apps for stuff like music, cause a good playlist is good for business. I need the bosss signature for this. Im the boss. Honestly i wanna see you be brave im almost done. [ male announcer ] now you can pay your bill. Manage your appointments. [ dog barks ]. And check your connection status. Anytime, anywhere. [ dog growls ] oh. So youre protesting . Okay. [ male announcer ] introducing xfinity my account. Available on any device. Both moving higher on news that comcast has struck a series of deals with charter that it will see it divest if comcasts 45 million deal to buy time warner is approved by regulators. The threepart deal is valued at about you can see charter up handily on this bit of news. The markets have been very volatile. Trouble in china, ukraine sparking fears, earnings, those are a worry. So what do problems overseas specifically mean for the u. S. Economy . What kind of growth are we looking at . What are the chances of another recession . Steve liesman, our senior economics reporter is here with the results of the cnbc exclusive fed survey. Always interesting. Im going to differentiate that in a second, but first i want to give you the good news. That good news is the estimates or probability of recession coming down. The lowest weve had in the three years weve been asking this question. We asked our 40 respondents, what do you think the response of recession is. You can see back in september 2011 it was 36 . Our previous low was 15. 2. You can see this time around it dropped. As you can zoom in here from 16. 6 , thats a great zoom. Sunrise job. Youll see thats the lowest weve had going across here. Looking at what is the growth forecast for this year, 2. 7 , which means well have to do better the next three quarters given the number well probably get, and then we see it ratcheting up to 3 . Its been pretty consistent in that area, if you look at the history of this forecast thats come out for 2014. What about geopolitical risks . We asked about china and we asked about ukraine, and what kind of impact the respondents thought we would have. 6 say almost no impact. 64 , though i will say most is in the modest impact category. Tax and regulatory policies remain the biggest threat. Theres the new where engine right there. So some of the commentary weve gotten. Bob bauer writes we believe the u. S. Economy is returning to normal, not a new normal, but the old normal. John donaldson thinks the improvement in the federal budget is an underappreciated story, and stu hoffman from pnc writes in our economy has the talent and energy to step up the pace the rest of the year. Tyler, you can see the actual results on cnbc. Com, the repository of significant talent and energy. Who are these guys, the respondents . Economists, strategists, money managers. Its a changing panel, but in general they seem to make good, consistent we keep working until we get 40. We have a minimum on this survey. Its one of biggest of its kind, followed in places of high power, i think its fair to say. Thank you, steve. I think were going to sue. We are certainly doing that. Thank you, gentlemen. The markets were rallies today, but right now that volatility has set in with the nasdaq down 51 points. Where do we go from here . Well have one of deutsche banks Top Investment guys. 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[ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Welcome back to power lunch. Humphries downgraded the stock. Marriott will report First Quarter earnings tomorrow. The street is looking for a gain of 51 cents a share. That stock is currently down toward session lows, about 3. 5 to the down side. Back over to you. Thank you, dom. Stocks are given up their gains. S p is flat for the year. The dow and the nasdaq, well, the dow is holding on to a gain. Now its lost 13 points. The nasdaq is accelerating its losses, down 56. Given this volatility, how do you invest in this market . Randy brown is cochief investment officer. Jim iuorio and jim kill burg assistant i by. The volatility some people expect to see ramp up. Can you expect that volatility to continue . Yes, we do expect volatility to continue. Theres tremendous geopolitical risk given whats going on in russia, given the weatherrelated slowdown in the u. S. In the front loading of that slowdown. Then whats going on in the middle east and other parts of the world. So geopolitical tensions i think are going to cause increased volatility. Theres also been the technical of reed positioning. We think that may continue. You have an s p target of 1975 for the next 12 months. How are we going to achieve that . Because earnings, you know, the bar is lowered for earnings, though they came in okay, it was a pretty a essy comparison . Yeah, we think its going to be built on earnings increase in the back end of the year. So multiples we think are fair. We dont think it would be multiple expansion like prior years, but really built on the back of Earnings Growth. Thats really the underlying, you know, thesis that we have, growth is returning to the markets globally, and that growth because corporations are very efficient, companies are very efficient, will translate more directly into bottom lines Earnings Growth. Looking at the nasdaq now at session lows the thats spooking some people, moving them away from the u. S. Market. As you look at things globally, where are you investing . Well, we like europe over the u. S. Right now, but were positive on the u. S. , as you mentioned, but were more positive in europe. On the were cautious on the emerging markets. I would say from a tactical basis. We think that they will experience heightened volatility, so longer term strategically we love the emerging markets in the equity space, but short term were much more cautious. The sectors that i understand you like are Consumer Discretionary financials and Information Technology. Financials are getting hit hard today on the back of b of a. Would you in that type of situation, would you step into a sector like that today . Our view typically is a little bit longer term, sue, so from the day to day timing, i would say theres going to be more volatility given whats happens in russia, in the ukraine, so today may not be the day. The downgrade you saw in the equity market was not that dramatic. I know that individual stocks have had some pretty much moves, but the market as a whole, we havent seen a really healthy correction in a long time. You like the maul and mid cap stocks. All right. Thank you, randy. Thank you. Ty, up to you. Thank you, folks. Rundown time. Jim iuorio and jeff kill berg lets focus on the areas he he favors europe over the united states, and i guess in the short term over the emerging markets as well. Jeff, do you agree . Disagree el or what . Randy is a smart guy, but