The way, lets look at how theyre doing. Theyre up. 9 . Lets look at the s p 500. There is the number on the s p. Down 23 points. Thats more than a 1 slide after hitting records, as you probably recall or maybe you dont, earlier this week folks. The euro getting closer to parody with the dollar. There is the euro. Down today. 108. Just takes 1. 08. Remember it was just weeks ago, mandy, that it was well below 2 . Thats absolutely right. Okay. Were also watching oil. Were only 90 minutes away from the close. It will be at 2 30 p. M. Eastern. In the second hour of power lunch well bring that number to you. The market is oelg off after the better than expected february jobs report. What has investors word . Lets bring in Burns Mckinney, Portfolio Manager at andrew maury, he is Portfolio Manager of the morning star five star rated aston lmcg small cap growth. Good to see you. Really feels like the market is having a bit of a tantrum here wrush know the jobs resetting the fed clock, and the market is saying hang on. We werent ready for this. This is earlier than we were thinking. Is this justified, do you think . I think it partially is. The jobs report certainly came in a lot stronger than it was expected. You know with 295,000 jobs created last month despite the fact that you had a lot of really shaky winter weather. Unemployment coming down to 5. 5 . Thats pretty much in line with what the fed considers to be full employment, which a lot of that really pushed back expectations such that the fed probably can be expected to raise rates at the very, very least by september of this year if not sometime sooner. Whereas, i think that the equity markets have been acting in recent months as though were ready for the fed to start raising rates. Its sort of like, you know when you climb the steps up to the top of the high dive you think youre ready to take the plunge. You look down and all of a sudden its a lot higher than you think it is. Granted, despite the fact that the unemployment numbers are down you know we still havent seen the wage gains. We still have lower labor market participation, which suggests that perhaps the labor market isnt quite as good as that headline number perhaps suggests. There is certainly other Economic Indicator that is have come out recently that might be telling more of a mixed story, a bit more of a patch where i recovery. Nonetheless, economic recovery its got to be sometimes disproportionately beneficial to smaller companies. Is this why you are still betting on small caps as opposed to large . Yes, absolutely. Thats right. Small caps do benefit disproportionately from the growth in the economy, and were seeing that in multiple different areas. Again, lets remember why the rates went up today because the jobs report was so positive. Whether it be in autos or housing, whether it be in nonresidential construction were seeing strength across various aspects of small cap and midgrowth, and thats going to end up driving earnings and driving refr news. We think that for the immediate wrum and longer term well continue to make small caps attractive. The other big story of the day is apple finally dragging the dow into the 21st sen dli. You own both, but you own a whole lot more of at t. Are you pleased, therefore . If you look at companies that have been kicked out of the dow, like alcoa and hp. Theyve actually done pretty well. Thats absolutely correct. We look at it. It is a positive mover for adding apple, which probably should have been added a long time ago, but that is true that we actually look at that as a bit of a carryian indicator. If you go back throughout history, a portfolio of stocks that have been removed from the dow have outperformed those that have been added. Its a contrarian indicator simply because the dow tends to add the frontrunners. They tend to kick out the laggards. If you go back over the last 18 months or so when they added three names and they subtracted three names, i think that was when they put in hewlettpackard. Im sear. They took out hewlettpackard and alcoa and bank of america. The three names that were added since that time are up about 35 , but the three names that were subtracted are up since that time about 48 . That could, in fact bode well for at t. We do own a large stake in at t xshgs we certainly apple is a cheap stock today, but we really like at ts 5 plus and trading at even lower pe multiple than apple. Now, theres another story. Thank you very much for joining us. Theres another story that you might want to read about this is corporate debt because corporate debt is ballooning. Its around 7 trillion now. Our good friend john malloy has written a great article titled is this how the bull market ends . You can go to power lunch parking lot cnbc. Dom and check out that story and also why burns does think that china is a Good Opportunity that you might want to check out as well right now. Lets go to dominik for a news alert. Thats right. Its the weekly Baker Hughes Rig count for north america, and right now the numbers are coming in for north america, for the United States u. S. Oil and gas rigs are down 75 to 1,192. Broken down, that is again, oil rigs down 64 to 922 active rigs here. Gas rigs down 12 to 268, and a gain in miscellaneous rigs up one to two overall. The canada count total is minus 30 to 300 rigs. Again, u. S. Rig count total minus 75 to 1,192 broken down oil rigs are down 64 to 922 as a subsector of that particular group. Tyler, back to you. All right, dominik. Thank you, very much. Rigs down. Production up, however. We also are watching the dollar and treasuries. Sue herrera has been tracking the big moves there. Hi, sue. Hi ty. Were going to take a look at the euro versus the dollar. As you know the dollar is getting closer to parody with the euro or the euro getting closer to parody to the dollar. You know the ecb on monday is going to start that 1. 1 trillion dollar bond buying program, but keep in mind the your wroe has only been around for 16 years. In the past year alone the euro has fallen 21 versus the dollar, but it has only traded at parody to the greenback a couple of times. Thats what everybody is going to be watching. Whether or not the euro is starting to put in a little bit of a bottom before that bond buying program. Whether or not its going to move to that parody level as mr. Droghi said he is going to be very consistent with that bond buying. The tenyear yield, everybody is watching the tenyear yield because as ty mentioned, just a short while ago, we were below 2 . Take a look at it now. 2. 25 . In the last two months the yield on the tenyear is up almost 15 , and heres an interesting stat. Something that Rick Santelli often looks at. The gap between german and u. S. Bond yields has widened dramatically. Its the widest in 25 years on a percentage basis just under 2 at 1. 84 . That gap in yields between the u. S. And the german bonds and the big spike in u. S. Yields today has sent yields in spain, italy, and portugal to record lows, and there are some analysts out there ty that say that we may, indeed see the yields go below zero. That would be very interesting to see. If it happens, theyre saying probably the beginning of next week. Wow. That chart thats right next to you, sue, shows we have come a long way in a High Pressure roadway the tenyear note from 175ish, now a half point higher at 2. 25. Its been a fast move. It sure has. Thanks, ty. Sue, thank you. As the tenyear goes so goes mortgage rates. Diana here to tell us how high they may go. Hi, di. Hi ty. Theyre going up. They loosely follow the tenyear yield. Ive been talking to my Mortgage Nerds about this and theyve seen one reprice already today, and you should expect more. This puts the average lender back at 4 of the 30year fixed. Lenders that were at 3. 75 will be at 3. 875 today. Its basically an eighthpoint spike, which is about as big as they get. He says outside utter catastrophe. Before you say the word catastrophe, rising rates can have the affect of getting home buyers off the fence for fear theyll be priced out, say, maybe a month from now. Back to you. The tech giant apple being added to the exclusive group of 30 dow stocks. When one comes in dom, one has to go and this time it is at t. It is out. The change goes into effect the day after st. Patricks day, so how does the stock fair a year after it has been dumped by the dow. Dom, whats the report here . Were going to look at the most recent round of reconstitutions that happened back in 2013. It was alcoa, hp bank of america. You remember those stocks . The reason why is the one that happened before that it is the financial crisis. It skews things that way. Take a look at this. The dow industrials in the one year you can see here between september 20th 2013 and september 21st 2014 is up 10. 5 . How do the stocks that actually get kicked out of the dow do . Lets take a look at this first of all. One of those stocks again, is at least one that we all know of. A brand name. A bluechip stock. Bank of america here. Those shares are actually up 16 in the same time frame. During that time frame take a look at another one. Were talking about hp. Hewlettpackard, those shares are up 73 . The dow up 10 . Hp goes up 73 right after getting kicked out of the dow. Then one more just to finish it off here. Alcoa, the stock pretty much doubled. All right, it doubled right after it got kicked out of the dow. In those three instances, those investors who bought the dow at least these components of the dow right after they got kicked out, they did pretty well. Again, this is not some gensfwlags, but in recent history, it might be one of the reasons why Burns Mckinney like that at t story. Dominik, thank you very much. Lets go to eamon javers for breaking news. There are charges against three defendants in what theyre calling one of the largest reported data breaches in u. S. History, and this is a global spam operation. The department of justice is saying that two of the people involved in this alleged ring were vietnamese extraction operating in the netherlands and cooperating with somebody in canada. All of it was based on a hack that they allegedly did into email Service Providers getting tens of millions of email addresses right from the source and then span spamming those email addresses over a period of years. The government is saying here. Entering into a Marketing Agreement with a Marketing Firm to reap the benefits of the results of that spam. Apparently if you spam tens of millions of people tooerl you can actually make money doing that. Or at least until the department of justice catches you. Tyler. Thank you very much. It was a strong employment report. 295,000 jobs created last month. That was 55,000 above expectations. Unemployment rate down to 5. 5 right now, but it is a tale of two job markets. Housing seeing strong growth but the oil patch suffering as crude prices plunge. Morgan brennan, fresh back from the pipeline crossroads of the world. Weve seen big gains. 1250,000 new construction jobs. Residential construction jobs did see a light loss month to month. Less than 1,000. Specialty trade contractors, thats your plumbers electricians roofers, saw big jump. Up 27,000. Mostly in residential. That can include remodeling. We may not be seeing tons of new Home Building but homeowners are feeling much better about the economy and their home values and that makes them fix stuff and upgrade stuff at home and that translates into jobs. Now, the Unemployment Rate in construction is at 10. 6 higher than the overall average, but the lowest in eight years. Home builders have been complaining for years now that a lack of skilled workers is holding back their productivity. Interestingly, though Toll Brothers ceo osd a Conference Call this month, labor is still short, but its Getting Better as we get further into this cycle. Most markets we have very few, if any, issues. Denver probably still the tightest labor market. Back to you. Diana, thank you very much. Housing continues to rebound. We are seeing meanwhile, big job losses in a crucial part of the susz economy. That would be the oil patch. What kind of numbers are we looking at . As you mention, we are seeing the pain in the oil patch show up in had the jobs report. This is the second straight month that we have seen declines in Energy Related fields. Taking a look Energy Related jobs in general fall under the mining super sector. For the month of february seasonal lay justed we saw 9,300 jobs lost. Now, if you break that down most were tied to oil. Specifically oil and gas extraction, which lost 1,100 jobs in january. That was after a 1,the00 job loss in january. Excuse me. And support activities for mining where we saw 7,400 jobs shed in february. Now, to give you an idea support services for mining is basically services tied to drilling and folks that are contracted for exploration. These numbers may seem kind of small compared to the flurry that weve seen of announcements from companies so far this year in terms of their cutbacks but thats also weve gotten a lot of data from other reports as well including Challenger Gray and christmas earlier this week. They actually tallied up the numbers according to announcements weve seen. Just to put that in context for you, in all of 2014 we saw about thats about half of what we saw in 2014, and if you include january, which also saw a lot of announcement double digit announcements, you are looking at 36,500 jobs for the year. Oil field jobs have been affected most so far. Adding to the list we saw halliburton announcing 6,400 layoffs globally. Also weatherford announcing 8,000 layoffs with a majority of those in the western hemisphere and just earlier this week in march weve gotten neighbors industries announcing 3,500 job cuts. Many of them in the u. S. Guys and, you know diana talked about those rosy construction numbers, but as you start to see the ripple effects fan out from the oil patch, you could start to see that impact things like construction. Some of these announced cuts havent actually taken place yet. Thats it. Some of the announced cuts havent taken place yet, and as i was saying the ripple effects, you could start to see other areas, nonresidential construction. 20 of that is oil and gas. Were just Getting Started here. Thank you very much. Morgan brennan. As we head to the break, a selloff on the street of the jobs day. Check out the ten s p sectors here for you. The s p itself is down by just over 1 . The biggest loser here this is of course, a sector that does badly. It did not do as well in a rising rates environment are the utilities. The utilities are down by over 3 . The financials are down but theyre down the least. Why . Well, one of the reasons is that all 31 u. S. Banks passed the feds stress test. Do not go away. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. Higher traffic scores was the real assistance there there for the stock. The guidance however well above prospects for the Current Quarter and for the full year. Back to you. The dow off about 250 points. Either despite or because of that strong jobs report there. Percentage terms of the standout today. Among a weak lot there at 49. 37. Bertha coombs at the nasdaq but, first, Courtney Reagan on the floor of the new york stock exchange. The right caller today, weve seen red from the start of the day, and its gotten worse. If you take a look at the s p, can you see exactly where we broke the support level at about 258, 290, and then again breaking through at 28 0shgs and we continue to push lower from there. This is all because what traders are saying the market is bracing for higher rates, possibly sooner than expected. Its a pattern that weve seen over the last several times that weve gotten jobs data. Remember the jobs data has been good. Its better than more than 200,000 for 12 months in a row. Dow utilities falling below the 200 day moving average. The First Time Since january of 2014. These are stocks that are very sensitive to a rise in rates. That sector is going to be the weakest. It is the weakest among the major sect ors, though. All of them are lower. Utilities, though down by more than 3 which is more than double the rest of the Dow Jones Industrial average laggard. If you look at the tenyear we are seeing highs on the tenyear that we havent seen in about two months. The dollar gaining at 11. 5 year highs, and the vix, that volatility is creeping back in. Its still relatively mild in the 15 range. Tyler, back to you. Thank you very much. Bertha at the nasdaq. Am has had a pretty tough week in the fact that it is now going to be the newest nasdaq baby in the dow. Nine months after that stock split has helped the stock stop that slide. You have to wonder be careful what you wish for. The track record of tech stocks going into the dow, not so hot. Back in 1999 both intel and microsoft, the Wintel Alliance got added. They were both at their peaks. They fell substantially three years afterwards and have not regained their peaks. Cisco had been talking about being added at that time. Wasnt added until a start of the bull market. Three years after being added. It was down 18 . E brokers at alltime highs. Deutsche bank lifting its price targets on the e brokers. Back to you. Thank you very much. Were going to talk more about what to expect from the big apple event on monday. In the meantime, lululemon slipping on a downgrade from Goldman Sachs. Lowering from a neutral, but still maintaining its 52 price target. Google launching a new the google compare site will be available to california residents first and will expand to other states. Software maker sap falling today by just over 2 after announcing a job cut of more than 2,000 workers. Thats about 3 of its global work force. Well, job growth as weve been talking about, soared above expectations despite a brutal winter. Where are those highpaid, highskilled jobs in america . Mary thompson know