Possibly for profits for you. First lets check in with sue at the nyse. We are going to start with small caps. Lets look at the russell versus the dow up 5 in six months. And then the nasdaq composite up almost 6 and then the s p up 6. 5 . Morgan brennan is at the nasdaq for more. Hi. Thats right, the dow the s p and the nasdaq are all up this year but not the russell 2000 which includes smaller Cap Companies down about 3 year to date versus the gain of nearly 8 . An 8 increase for the nasdaq, a stark difference there. The russell 2000 dropped 1. 5 yesterday and hit a cross with the 50day moving average falling below the 200 day. That is the first time we have seen that since august 2011 something that could be a bearish sign. Strategists tell me this is part of investors rotation out of the high momentum smaller stocks into the less volatile larger cap blue chips, a defensive shift in light of the likely move to begin raising interest rates. Small caps are much more vulnerable to changes in rates. We have seen a similar move among momentum needs in the internet. Chief Market Strategist at jones trading says how small caps perform over the next few weeks in light of this will have more meaning than it did in 2011 since this time markets are near highs. Chief market technician at mkm partners thinks this selloff could begin catching up with the rest of the markets, that there are enough warning signs to suggest a modest pull back or consolidation likely in the coming weeks. So looking and listening to all of that and looking at that the russell 2000 right now is trading down along with the Broader Markets down a little less than a quarter of a percent. Thank you so much. Perfect setup. Will the slump in small caps drive down the rest of the market . Joining me is David Ellisson and andrew slemen back with us, managing director of Global Investment solutions at morgan stanley. Morgan really laid it out beautifully, do you agree that the small caps have further to go to the down side . What is the impact on the overall market . They are more earning sensitive than larger cap earning company. In the Financial Sector they under performed because they think rates are going down. The spread is a big part of the revenue. As rates moved up the stocks rallied back but are generally down for the year. How do you feel about the market overall . I think the market is following the economy. The fed wants the economy to get better. I think this year i thought wasnt going to be as good as it was back in january. Thats why. I think generally the market is where i think things are priced fairly. If you look at the bond market you have rates very low, negative yields in parts of the world. Im not sure people understand that as well. I think the market we see here is priced every day. You can be more comfortable that the prices reflect what is happening. The overall market, you were watching valuations and earnings very closely and then i turn you to technology. I think it is just a classic september. We had a very strong august and september is usually a little bit of a risk off. I wouldnt look too much into the small cap trade. I think Fourth Quarter after this month Fourth Quarter should set up for a very good quarter for the market. And i see no reason to think this time will be different. Before i turn you to tech lets go to Rick Santelli in chicago because the twoyear note just went off the board. How did it do . A for apple. Remember twoyear note yields are basically hovering at threeyear high yields to begin with. The yield at 29 billion two years was 0. 589. The bid to cover 356 well above 342 since faeb of this year. We are really solid was close to 41 on indirect. You have to go back to november of 2011 to find a better number there. 42 went to dealers which means 57 went to the end users. That really we are monitoring we are closest. Apple has been funt and center in the news. You have liked apple but you like it a little bit less now. Remember a year ago we were talking about a product cycle company. It is going through a period with no new product. Everybody was predicting the demise of apple. It is up 100 from last summer and we have forgotten it is a product cycle stock. You have to be a little more cautious. I believe you buy good quality stocks. Apple is back into favor. What about google . Google hasnt performed as well as apple this year. That spread has come in. The differential is much more narrow. I think google is a much more attractive buy. Apple is not the same opportunity it was last summer when it was very depressed. I think google is getting to depressed levels. What would you put money into right now . I think you put money into the domestic depository institutions in the country. That is where the safest Balance Sheets are. If the economy gets worse they have a strong Balance Sheet to survive that. Thank you very much. Appreciate it. The United States and five arab nations began air strikes against isis in syria last night about 8 30 p. M. East coast time. Results are unclear but the attacks came from the air and sea, command centers and Training Centers and grounds in Eastern Syria were targeted. President obama made his first comments on the air strikes this morning. John is live in washington with some of what the president has to say. Im here at new york at the Clinton Global Initiative where president obama is coming this afternoon. Before he left the white house he addressed the air strikes that began last night, what his critics have been wanting him to do for some time. He warned the results were not going to be immediate and this struggle will go on for a while. The overall effort will take time. There will be challenges ahead. We are going to do what is necessary to take the fight to this terrorist group for the security of the country and the region and for the entire world. The foremost challenge is getting boots on the ground, not american boots as the president has said repeatedly. He wants moderate sunni allies, the people saudi arabia, united arab emrates who cooperated and participated. The acid test is who will supply boots on the ground to join the Free Syrian Army rebels. The Treasury Department introduced legislation to those who buy overseas companies and move the headquarters overseas and you avoid u. S. Taxes. Details on what the treasury announced. On the stocks that could be most impacted and many of them right in megs wheelhouse in pharmaceutical and medical. Presto is pretty much it. The idea that the the Treasury Department announced targeted things to do to make inversion deals more expensive for companies and lower likelihood that companies are going to want to do it and they cant eliminate them all together without an act of congress. That they say is unlikely to happen. The Obama Administration move while criticized by some republicans and some in Corporate America got an endorsement from bill clinton talking to our becky quick. Everything we are doing now including these inversion rules i have no problem with what i understand the Treasury Department is legally obligated to get as much revenue as is owed but we are bailing water out of a leaky boat. Only two things to plug the leaks either we undertake Corporate Tax reform or every other country says we are wrong and we go back to doing it the way we used to do it. Every other country is not likely to say we are wrong. Thank you very much. To meg now. Pharma industry could be most heavily effected by this. What is the status of deals we heard about and what is next . A number of these companies pursued inversion deals and their stocks are taking a hit today. We are looking at abbvie. The deal was expected to close in the Fourth Quarter. Both of those companies have been down today. Another is medtronnic which announced a deal to buy in june. Medtronnic says it will release statements following the review. That deal is expected to close in the Fourth Quarter or early 2015. Others affected include mylan, salix. Other stocks getting hit included astrozenica. A lot of uncertainty over how this will effect deals. One banker tells me this is likely to chill activity but too early to make predictions. Analysts like terry haines suggests companies could put up legal challenges including whether it is exceeding authority under the tax code and whether the plan meets legal requirements. They note the treasury hasnt stopped inversions but created uncertainty around them which at least may curb the practice. Thank you very much. We will be watching that story as it unfolds. Another one we are watching is a developing situation, Police Say Three people have been killed in a shooting at a ups facility in birmingham, alabama. The gunman was an employee of ups and apparently was killed along with two other people in the gun fire. We, of course, will monitor the situation and bring crow the latest developments as we get them. As the Housing Market weakens where are the buyers and sellers markets . Who has the had leverage in which neighborhoods . Which neighborhood you live . Reporter it is important to know because two of the biggest american cohorts are being to be moving in the coming years. We will tell you which ones and who might get the best deals. Given the state of the Housing Market do you think it is better to buy or rent right now . Join the conversation. Give us your vote at cnbc. Com vote. Speaking of real estate, cadillac is moving. Where . Phil lebeau knows. Out of detroit. It is ironic that as we speak one of the Vice President s for General Motors is in michigan giving a speech about keeping detroit the epicenter of the auto industry. We will tell you where it is headed when power lunch returns. 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. In a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. We are taking a look at shares of lane bryant, dress barn. The Company Posted weaker than expected results for fiscal Fourth Quarter and an outlook below analysts estimates. The reason the company is citing challenging at justice as well as inventory concerns at lane bryant. The u. S. And five arab nations began air strikes last night. For the first time the u. S. Used a new weapon in those attacks. Jane wells is on the defense beat for us joining us from l. A. Its really not a new weapon, it is just the first time it has gotten to do something that it was built to do. The most expensive fighter has been a jet without a war until now. Published reports say it made the combat debut. The jets were used in the first wave but the pentagon wont say how many were used and what bombs were dropped. This is a long overdue introduction of a stealthy jet which costs about 150 million a piece. It has not seen action since nine years ago. In 2011 it wasnt used in the no fly zone because it is so stealthy. It is mostly meant for air to air combat. There hasnt been a lot of need for that though it can do ground attacks. It was made. There havent had much need for air to air which has been the problem with f 22. Now, the whole program has been wound down. They delivered the last one i think 195 of them two years ago as lockheed began transitioning to the more capable f 35 which has yet to go into any action. It is still going through testing at this point in training. Back to you. Thank you so much. Lets get a check of the markets for you. The Dow Jones Industrial average, the last trade on the dow is just modestly to the down side but now it is down 85 points. S p 500 off eight. For more on the trading action bob joins me once again. The fundamentals dont seem to justify the type of selloff that we are seeing. We got very good news out of china. A lot of concern about Slower Growth in china. The numbers we got on manufacturing in china was better than expected at least in positive territory. China was up. Take a look at emerging markets. Didnt help the rest of the world. We were expecting a bounce in emerging markets like brazil, south africa. There is not a lot of energy. I think there is disappointment on that. We are expecting some kind of bounce in the commodity complex. We have been talking about this for days on end. Crude, copper, nickel, Commodity Markets put them up. Generally it has been weak. We have been waiting for europe to do a little bit better. Germany didnt have a very good day. Their manufacturing indexes in europe in general were disappointing. That closed at the lows for the day. These slow growth concerns are weighing on our markets overall here. A couple of sectors are weaker. The auto complex is weaker. Car max with a bit of a disappointment. That is down 10 . They had uncomparable car sales and auto nation to the down side. The only thing with a bounce is finally Energy Complex after having a generally horrible month. They are finally starting to see a little bit of life today. People are looking for value and those stocks have been hit so hard that perhaps they provide a little value. I am waiting for them to start picking on the bodies of some of these. The lower crude prices make it hard to justify the prices. Absolutely. If you get bouncing crude they bounce for sure. Thanks. The u. S. Housing market still on shaky grounds. Some parts are strong and others still weak. Which areas are a sellers market and which ones are turning into buyers markets . First we want to know do you think it is better to buy or rent right now . Go to cnbc. Com vote. Where are the buyers and sellers markets . You need to know this if you are looking to negotiate on either side this fall. Definite surprises and some markets changing as we speak. Lets define parameters first. Zillow did the survey. A sellers market is not necessarily one where home values are rising but rather one in which homes are on the market for a shorter time and homes are sold at close to or above list price. A buyers market is where homes stay on the market longer. There are more price cuts and homes generally sell for below list. The top sellers markets are in california. Seattle, dallas and denver round out the top five. Interesting that river side california and las vegas are in the top ten. These markets had huge inventories but investors plowed through and wiped them out. Providence, rhode island took the top spot. Cleveland, milwaukee, chicago. These are markets where prices are still weak and investors didnt help that muchh the distress. Demand is relatively low which gives buyers the upperhand. The two biggest cohorts expected to move in the coming years will be first time home buyers and millennials and your down sizing baby boomers. Depending on the market we will see who will do better and where. We have all of it online. The collision of the boomers and the millennials again. I love it. Lock in the viewer vote. Is it better to buy or rent . It is a split ticket. 49 say you would rather buy. 51 say you would rather rent. Thank you very much. New real estate for cadillac. The auto maker is leaving motown for the big apple. Phil lebeau has the details. The french explorer cadillac found detroit and no brand has probably been identified with detroit more than cadillac over the years. Now the headquarters is moving to soho in manhattan, the new headquarters in new york city. The brand under its new president is looking for a little more autonomy from the parent company, looking for an area where they have greater upscale taste and more influences in the luxury market. When you take a look at what is happening with the luxury market here in the u. S. Cadillac is the only luxury brand down this year. They have some issues with the lineup but that says something with the market. New head of cadillac is looking to upgrade the brand especially among luxury competitors coming in with a new upscale top end model. This one will be coming in above other models out there. We will see that probably roll out towards the end of 2016. Take a look at shares of General Motors and compare it with bmw. I know it is not an exact comparison because General Motors has a portfolio that includes chevy, gmc and buick. Gm has not performed as well. Starting next year cadillac will be calling the big apple its home. It will be a little more expensive for those people who have to move here. I think they can afford it. Lets see. If you want to know what the iphone 6 is made of you have to tear it apart. That is what we did. We will tell you what is in it. Plus josh lipton will tell you how you can trade it. Apple says it has already sold 10 million of the new iphone 6 and 6 plus devices. What are the Companies Making the components for the smart phones and how are the stocks performing . Coming up next on power lunch. With chantix. G people who know me, to this day they say, i never thought you would quit. You know, i really didnt either but chantix helped me do it. Along with support, Chantix Varenicline is proven