Catching a lot of peoples attention is the broader based russell which is down 2 or 21 points on the trading session. The oil market, last trade on oil is on brent crude down 89 cents. Gold is down 13 bucks on the trading session. The yield on the ten year note is 237b9 552 . Over in europe. Very ugly day. Down 43 points. In germany, lost almost 2 . And in france, paris, finished down 1. 5 on the trading session. Why is market falling . A couple reasons, two main ones, europe, we saw the picture there. Rising labor costs here in the u. S. Daytoday showed the biggest jump in u. S. Labor cost in five years. Added to the geopolitical jitters. We have a recipe for the downside today. Bob, your perspective. That was a great summery there. Youre right. I would lay a lot of the blame here to the start of the problems today over in europe. Take a look. We just had an ugly open in europe and ugly close. Basically stocks closing on the lows there. Portugal, much bigger loss than anticipated. Theyre going to have to raise capitol. Then we have the very heated rhetoric continuing in the ukraine. Accusations going back and forth and adidas coming out lowering guidance by about 20 saying they have exposure in russia, but talked about the weak overall retail environment. Just an ugly day over in europe. Then we. H what you were talking about, sue, the employment cost index, saw a spike in Interest Rates. That came up in the highest level since late 2008. Cost of labor for businesses. Hawks came out immediately and said, aha, the fed may have to raise rates sooner rather than later. Another argument about what the fed may or may not do. Finally sue, i have emphasized all day how this disappointing the Home Builders numbers were particularly for beezer. Orders down single digits, missed on the top and bottom line. Lowest since october. Ryland, only up 1. 7 . Were having a housing recovery, i had numbers of 10 . This was a huge miss. It was. Most are at lows for the year, and in some case, more than one year lows. So a lot of things, a whole stew of effecting the markets today. It is. The dow is down 214 points. Thank you, ill see you again. As we mentioned the nasdaq and russell, it is now down 1. 3 . And thats right, sue, 97 of stocks on the nasdaq 100 trading lower, here are the main stocks weighing on the nasdaq. Apple, after beating expectations last week, google, amazon, callcomm all contributing to the underperformance. Its not just the heavyweights. Growth oriented names are getting hit hard. Internet sector down 2 . So are chip stocks, social media, biotech, that board paints a picture of where the loss are being seen here at the nasdaq. Of course the prospect of rising rates has been on the table for a while now. That conversation becoming more real after witnessing an uptick in wage growth. Aside from the tech sellout, the ipo parade continues. We have five ipos at the nasdaq. Mixed first day performance, early stage biotech developing gene therapy up today. Health equity seeing a big game. Bioblast, biodeveloping treatment for rare and genetic diseases trading lower on the first day of trade. Over to you. Thank you very much. Lets go back to ec. The headquarters to Bertha Coombs for a market blast. Kell log is getting soggy. Low after the serial maker cut its profit in forecast. Fifth straight decline in quartererly sales. Its cereal business is trading down. Nearly 5 on the day. Rival General Mills feeling the sympathy. All doing different stuff for breakfast now, sue. Thank you. So it todays selloff telling us that the fed will hike Interest Rates sooner rather than later and how much of a concern is that jump in wages that we mentioned at the top of the show . We have nine stars worth of Investment Advice for you. Rick lake is here at the nyse. Hes Portfolio Manager of the four, fourstar raided astin managers. Its a great day to have you both with us. Thank you for joining us. Rick, im going to start with you. How do you view a day like today. What do you do to your portfolio if anything at all when you see this kind of a decline . A day like today is a fresh reminder that Risk Management is a key part of investors jobs. The fund that we run as part of our daily task. I think investors have to revisit the riskmanagement textbook to running their portfolios for a choppier environment. What does that mean . Does that mean utilizing the Options Market . Does it mean diversification, maybe all of those. Theres a whole Risk Management menu. Diversification, it could mean having extra cash from short term fixed income. Also mean taking advantage of this new array of mutual fund that can do hedging and short selling in the equity markets. And implement strategies that are a bit different than stocks or bond. Yeah, lamar, weigh in if you will and whether or not you use a day like today to perhaps add to positions, or whether you kind of sit it out as the volatility ramps up right now. Sure, weve been up there doing some buying this morning. Now, were not buying broadbased industries or products, were buying stocks and individual stocks where we see the growth look, the Growth Outlook for the next several years very attractive relative to the where the stocks are trading. Can i ask you what you added to the portfolio today . One of the stocks is the everbank. Its based in jacksonville, florida, but its not a jacksonville bank. Its a national bank. And the reason were excited about this one. I can ask you two questions. Whens the last time you went to a bank . And what kind of interest are you getting on your Checking Account . My guess is the answer is its been years since youve been to a bank and youre getting next to nothing. In fact the average. 006 of an interest. They dont marble shrines. Theyre paying much higher Interest Rates than their depositors. Its growing faster than other banks. Theyre taking market share from their competitors. Exactly. Right now, you know, my mother pays her bills online and deposits checks using her smart phone. I think thats as good belt weather as any to know theyre well ahead of the cur, in terms of how to attract new customers. Absolutely. Weigh in on the volatility, not just today, but duke this market is signaling a turn and a return to more volatility . Absolutely. Theres a great sea change understoodway. Weve just come off of five or six years of perhaps the greatest economic stimulus weve seen in the u. S. Feds now in the process of stopping quantitative easing, rates may rise, and the flood of liquid i did is starting to move out. So the past few years have had forces that drove asset prices down and volatility down. And now were going to head into an area of more volatility which means theyll be more selective. More choosey. Clear winners and losers which is that more investors will have to become acustomed to. Bond market, investors continue pour money into the bond markets and those are a fools trade right now. What do you do in the bond market if anything at all . Sure. We have in the balance funtd. Stocks and bond. We have a position there. That said, were pretty bearish on bond. Theres no way to go except down. We think if youre concerned about inflation, bond are exactly where you dont want to be and youre going to feel a lot of pain if off big bond exposure. We think stocks are the better place to put the money. Gentlemen, great day to have you on. Thank you. Thank you very much. Up to you. Sue, thank you very much. The frempbl Telecom Company iliad making a play for tmobile. Back out to tmobile shares, volatile reaction here, but look at the jump. Morgan brennan has been following the story and has the latest, morgan. Iliad is offering 15 billion in cash for a 56. 6 stake of tmobile u. S. That values tmobile at 33 per share, but iliads offer gives an overall value of 36. 20 thats based on an estimated 10 billion worth of synergies. Its already redefining the u. S. Wireless space. Were seeing sprint down on the news. It was widely reported that sprint was in talks to merge with tmobile. Know no deal has been announced. Would iliad be a better partner for tmobile . Analyst craig moffet thinks this is good for consumers because sprint tmobile deal would have decreased competition here in the u. S. At t and verizon would have been benefitted if sprint and tmobile mernged because merged because youd see four players going to three, and the presumption was from investors, was that that would mean higher prices for consumers and therefore more profitability for wireless carrier. Thats why youre seeing at t, verizon down on the side of sprint. Sprint is the odd man out, tyler, the company has been pouring bills into upgragd its infrastructure and shedding postpaid subscribers for the past ten headquarters. A lot of sources telling me that sprint bidding for tmobile was how it was looking to gain scale and really become more competitive with verizon and at t. Were going to have a keep close eye on that company. My first question was whos iliad. Never heard of them. Iliads a French Telecom upstart, and from what ind, they have been i understand, they have been disrupting the french wireless market. Much as tmobile. Theyre the french tmobile. Morgan, thanks, appreciate it. Target naming a new ceo. Its been a while. Big challenges facing that individual in light of the retailers big data breach and other stumbles. Plus is Wage Inflation coming . Latest read on jobs giving investors some close. And when it comes to the economy, is yellen, are yellen and the fed or is yellen and the fed behind the curve. The next move, power will be back in two. We never thought wed be farming wind out here. Its not just building jobs here, its helping our community. Siemens location here has just received a major order of wind turbines. It puts a huge smile on my face. Cause im like, this is what we do. the fact that iowa is leading the way in wind energy, im so proud, like, its just amazing. Yyyup. With xfinity internet soyour family can use all their devices at once. Works anywhere in the house. Even in the garage. Max whats going on . Were doing a tech startup. Were streamlining an algorithm. Were going public [cheering] the fastest inhome wifi for your entire family. The x1 entertainment operating system. Only from xfinity. I voted for culture. With a k. how are you . I voted for plausible deniability. I didnt kill her, david. And i voted for decisive military action. America, you cast your votes. Now, go to xfinity on demand and select the peoples hotlist to see this summers top 100 shows and movies. I voted welcome back to power lunch, dow near session lows as concerns mount over the strength of overseas economies and ongoing tensions with russia. The dow right now trading down about one and a quarter percent among the biggest laggers, nike, exxon, rer rye zon. Verizon down on the news about the iliad bid for tmobile. Interestingly guys, we have the telecoms today. The worst performer, even though theyre the best performer for the month. Back to you. Thanks so much. Lets get you headlines. Time warner cable missing earnings estimates. The cable operator did see a jump in internet subscribers but lost 34,000 residential customers during the Second Quarter. The stock is down almost two and a quarter percent. Posting a lost restructuring layoffs linked to the blame. Shares are getting hit hard earlier. We have rubbermaid in the news and it is up about 3 . Alcatel improving as cost cuts take hold. We showed you rubbermaid, that is the bright spot in the trading session. Beating profit estimates, revenue also beat sales showing particular strength in tools and commercial products. All right, target. A big stock to watch today. Finally naming a new ceo. Hes pepsi cocoo. Brian cornell. He was said to succeed as ceo at pepsi. All right, target saying he will be responsible for improving the companys performance and developing its e Commerce Business in light of the devastating data breach that occurred earlier this year. In todays Yahoo Finance question of the day, what will be the biggest challenge for targets new ceo . 17 say cyber security. 19 say improving their own stores. But 42 of you say competing with amazon and other online retailers. 22 say competing with wall street. I thought cyber security, ty would be higher on the list. I guess people, people i dont know, i guess people are worried about it, maybe not as many as we thought. All right. Inflation, people worrying about that. Warning signs may be picking up. Latest read on jobs showing some wage pressure and when you see wage pressure, you know economics, you know that is one of the key drivers of inflation. Raising questions about the feds next move and will policy makers need to act sooner and maybe a little more dramatically. Our Senior Reporter steve is all over this. Steve. A couple data points this morning, first the jobless claims number and the employment cost index. And both of them are showing strong growths. The question is whether or not the fed needs to accelerate. Look at the eci. It was, it was employment costs. And 0. 7 . High nest many highest weve had in my years. The best since, moving average . Best jobless claims . Since 2006. Six. Very good. Close enough. Okay so both, heres the question, does the fed have to accelerate . To me when i look at the numbers, i say you know what, if we keep improving at the pace were improving. I think it just stand to reason, certainly the risk of a fed acting faster has to be considered. Very quickly. I want to go back to something you asked the president last week. You pointed out in his reciting of all the numbers that were doing well. The one that wasnt was incomes. Is this evidence that incomes are picking up. It may well be. Its something that wages were strong inside that report. Benefits were up as well. Wages also up. Heres the question for the janet yellen. Just when median incomes begin to rise, just when the average family starts to do well, is that when you need to take the punch bowl away. Its a big social question. Fed is going to face serious politics on this. Thank you very much. Another big concern today, argentina. Dont cry for them. Well maybe you should. Argentina nation, the nation defaulting on some debt. Kate kelly here with the developing story. Thanks so much. Tyler. Theres been talk of the Banking System working out a private sector solution to the default by purchasing argentinas debt for the hedge fund that hold it. Now it looks like more global banks have gotten involved. Recently as yesterday, citigroup were asked to consider buying the debt from the holdout creditors, mml, Elliott Management among others. That effort fell through. Today im told, u. S. Banks are still in discussions about the matter, but its unclear whether theyd. Acting as agent to help broker a deal for argentinas banks or principle in buying a debt themselves. Meanwhile, markets have been thrown into disarray. The bempbl mark stock index is down sharply. The governments bond are trading at flat prices. Assuming no Interest Payments whatsoever are have the going concern. Firms that are traded in the u. S. Are down significantly today. Elliott isnt the only bilge u. S. Hedge fund involved. Other fund have bought arch tine papers over the year including perry capital, and hayman capitol. Highland global. Newburger burman and goldman and sachs. More revealed friday morning as they gather in Downtown Manhattan for a Court Hearing on the issues. At the same time, tyler, an Industry Committee will meet to decide whether or not todays technical default as some of are calling it because the money was posted, just not distributed. If it does, those who hold cds, the insurance policies that hold out get their money. All right, well be watching all of that. A lot of issues. Kate kelly, thank you very much. Sue. A lot to watch on the market. We are all over the selloff today. Down 220 points on the dow. S p is off 76. The s p is off 30, nasdaq off 76. Now the dow, s p on pace for the worst day in nearly four months. Average is also breaking through some key Technical Levels. Well talk about those when we come back. Plus a wall street dream come through for one teenager. There he is. Hes also going to get investing advice from the worlds best stock picker. All of that coming up next on power lunch. Dont just visit san francisco. water dripping and pipes clanging visit tripadvisor san francisco. soothing sound of a shower with millions of reviews, tripadvisor makes any destination better. Welcome back to power lunch. Hitting a pothole today. Falling after full year of forecast fell short of street expectations. The stock right now off about 3. 5 . Autosuppliers in general moving lower after that outlook. Also came in light of expectations. Taking a look at that chart, there you go. Automotive down about 1 . Tyler. Thanks very much. The dow at session lows there about 239 points lower as a market check for you. Last year 17yearold trey grinner was diagnosed with hodgkins lymphoma. He was determined it would not interfere with his dreams of becoming an investment banker on wall street. Trey has an internship at Goldman Sachs this week thanks to the make a wish foundation. Trey, how did this, welcome, first of all. How did this come about . Did make a wish find you, did you find them . And how did you put together be goldman. When ifgs diagnosed, i was assigned a social worker. She said because im under 18, i would be able to be granted a wish. So my mom wrote the make a wish foundation, saying hey maybe i might be a good candidate for getting a wish granted. And they came to my house, interviewed me, and we were immediately surprised with what i wished for. Yeah. That is a surprise. Most guys your age might well want to spend a day with jayz or lebron or whatever. You chose it because you had gotten obsessed with the idea of picking stocks. Yes, sir. It started off as just a little thing at school. You know. Investing competitions . Yes, yes. Investing competition at school. And i began to get obsessed with the concept of why, why these move. Why prices move in the way that they do and how you can analyze these different ways. Different ways to analyze it, technical, fundamental. You started with 50,000 and turned it into 70,000. I want to int