All three major indexes taking a big hit. First intraday drop of more than 1 for the s p 500 in 64 days. That happened earlier today. That kind of call market has not gone back happening to all the way back to the 1960s. Nasdaq, intraday high at the open. It has now pulled back also more than 1 . Melissa said it, financials feeling the most pain. Beyond yields moving as well. Small caps are have thing the russell of all. Russell 2000 down the most of all the major indexes. Tyler . Im tyler mathisen. Second day of confirmation hearings under way for president Trumps Supreme Court pick, neil gorsuch. Preet bharara will join nyu law as a distinguished scholar in residence, he was fired as the u. S. Attorney for the Southern District of manhattan earlier this month. And days of heavy rains triggering the worst flooding peru has seen in decades. Look at that amazing video. A man washed away, as tries to drive cross, ill advisedly, obviously, a flooded road. More than 70 floodrelated deaths in peru. Thousands of others have been forced to flee their homes. Very dramatic video there, tyler. Busy two hours ahead. Well kick it off with our first real down day for stocks in more than two months. The question is this. Is the d. C. Drama behind the move . It might be. Here is why we say that. Intraday chart on the Dow Jones Industrial average. New intraday highs for the nasdaq were hit. But right around here, 9 45, 10 00, we started to see the market get weak. That, my friends, the same time that House Speaker paul ryan made some new comments about the fate of the Health Care Bill. So lets begin there. Cnbcs Kayla Tausche is on capitol hill. Reporter seeking to close the highest profile deal of his career. And one that could threaten the rest of his financial agenda. To sell the deal, he is returning to a familiar tactic, lobbying threats. This time at House Freedom caucus chair mark meadows and obliquely republicans in general. Ap is reporting that Senate Majority leader Mitch Mcconnell is echoing some of those threats, if republicans threaten this Obamacare Repeal and replace then it will be very difficult to get anything done Going Forward and to work together. But meadows, it appears, isnt budging. His spokesperson telling cnbc his vote is still a no and that he does believe that the president is the right person to try to close the deal. They hope they can get there, but that the congressman, at this moment, does not believe that the ahca has the votes to pass. He also told the Washington Post ive had no indication that any of my Freedom Caucus colleagues have switched their votes. Now earlier this morning, the speaker did say that he does believe there will be some turnover in that group and that if they did not, then the bill would be jeopardized. Take a listen. The president helped negotiate these changes, sent it over to the senate. And the senate, without jeopardizing the bill, can make improvements to the bill. If we do it here, we will jeopardize the entire bill. Democrats, for their part, guys, are unified against this bill. That highlights one major risk to this market. The trump rally, in part, was predicated on legislative ease, that not only was the white house agenda one that was pro business, but it was one that was assumed to get enacted relatively easily because of republican control. If there continues to be this infighting within the republican party, how hard will it be to get anything done on capitol hill . Guys . Kayla tausche, thank you. Bob, when you pick apart what is driving the move lower today, its the trump trades, banks, infrastructure plays, small caps. Trump train and a little continuation of what was done at the fmoc meeting. Take a look. S p 500, 20point move. Not just paul ryans comments. The tenyear yield moves straight down until about 11 30. Thats exactly how the markets reacted. I do think there is additional fallout from the fmoc meeting. Heavy volume some of the etfs. Transport, Semi Conductor on the third one there and the russell 2000 etf all very heavy volume today. Moving the markets . Its two things, obviously. 2. 6 on tenyear tre dollar weakening as well. Anxiety over the trump agenda. A lot riding on that thursday vote. You heard kayla talking about that on repealing obamacare. Down days are mostly related to the Regional Banks, getting hit the most. Theyve been down the last several days as well. A bit of a trend developing. Finally, one comment on the fundamentals. Autos have been weak several days now here. There are reports out there, used car prices are declining. Theres some softness in auto loans. Noted the end of last week, s Santander Consumer reporting a small rise in auto loan delinquencies. 7, 8, 9 . Back to you. Thanks, bob. Let talk more with scott rantz and phil rated. Good afternoon, gentlemen. Thanks for being with us. Scott wren, why do you think financials are getting as hard as they are . Why today particularly . Theres a couple of reasons. One is that this legislative agenda, which lets face it. There are going to be bumps in the road. I think theres two things going on with financials. One is the perception that the yield curve is going to flatten, not steepen. And if trump or the new administration has trouble with health care some of these other things that they want to do, which are regulatory in nature, theyre going to have trouble with that as well. Those two things today, at least for financials, thats the negative. As i peruse my notes which were probably collected from you yesterday or earlier today, there are lots of things you thought were actually stacking up pretty nicely for the market. Dovish fed, netherlands vote, french vote, positive health care vote, you say. Positive Scotus Gorsuch vote sets the table for positive trump fiscal vote and on deregulation. You want to amend that . No. Well stand by our thinking. The reality is that the s p had a terrific rally. The fact were down 2 to 3 in the last couple of weeks, flight to safety rally in the treasury market, given whats going on with the comments that ryan made in health care this morning, you know, to scotts point is not out of the realm of possibilities. If you take a step back and look at the Bigger Picture, health care is going to get through. Tax reform is going to get through. The Bigger Picture is that this 2 to 3 correction should be an attractive buying option. No biggie basically. But im curious. Why is it if things are stacking up as nicely as you suggest, why is there a flight to safety . You have concerns. The stock market up as much as it is and the bullish stock market that i envisioned isnt going to gorsuch will not be approved, trumponomics will not be passed. So why not shift some of that money into the bond market . Since youre bullish, are you buying here . The short answer is yes. You are . What sectors . Not at liberty to discuss that. Okay. Scott, you had envisioned the markets would peak mid year. Is this just simply pushed forward, pulled forward, i should say . Melissa, really, we look for that peak in the s p for this year. Were not calling the end of the cycle. We thought we would see more of a fade in the second half. This is coming maybe a couple of months earlier than what we thought. We thought we could see 2400. I wouldnt say this rally is over. But the fundamentals, concerns in 2018 that well see more wage pressure, i think that is still intact and maybe some overall pressure and maybe overall inflation pressure and a fed that may be behind the curve. As phil said weve had a good run here. You could go down 5 on nothing. This is just trading. This is not some complete rejection, many of which are progrowth, many of which may be implemented to the right magnitude to help in 2018, 2019, 2020. This is taking. If we end this year flat to slightly higher, its a stall year. You still want to be ready for the cycle to play out a little bit longer. Gentlemen, thank you. Thank you. Scott wren and phil orlando. The sector getting hit the hardest right now, that would be the financials. Bank of america down more than 5 right now. Regional banks, kre down more than 4 . Lets bring in charlie with ariel investments. Great to see you. Thanks for having me. It almost feels like investors should decide at a point fairly soon whether or not they believe the rally we have seen in financials are due to improving financials, including a steepening yield curve or the policy of deregulation. Be careful lumping all financials together. Regional banks havent just had a bad day. Theyve had a bad month and a half. Regional banks peaked december 8th or 9th and since then have underperformed by 10, 11, 12 . Why did that happen . They were overpriced. Average Regional Bank got to 17, 18, sometimes 20 times earnings. Regional banks have traditionally traded for 11, 12 times earnings. They just got too expensive. Simple as that . Its not a coincidence that the yield curve basically has been flat since then . Right. But it became a crowded trade. Everybody was looking at the same thing. Interest rates are going to go up. The yield curve is going to steepen. Regulatory environment is going to get better. Tax rates are going to do down. We all think that. Even i still think that. But it was too much invested, too much incorporated from the stock prices and they didnt have any room to go up. I love that line of thinking today, charles. Not to throw water on our entire show, but were sort of focused on this market decline. Maybe we should be more focused that we havent had a oneday decline and that hasnt happened in 50 years. Did we deserve the run that we had . I think we did in general. I want to be careful in saying that. Its pretty banked in right now. Lower tax rates, less regulation is good for business. And its good for profits. And earnings matter. I feel good about the economy. A little bit of inflation is probably good for stocks. Were absolutely seeing signs of a little more inflation. Theres a lot to be happy about. Dont get ahead of yourselves when it comes to region al bank. I bet youre a lot of fun at thanksgiving dinner. Have fun but not too much. Charlie, thank you. Thank you. Sully, dow transport stocks are turning negative, index off 7 from its recent highs as well. If you look at the ishares, iyt now down more than a percent in trading. Nearly all the components are negative with the exception of a big one, fedex. Laggards include avis budget, matsonparsed and dissected on fast money, hosted by an amazing anchor. Can d. C. Still get things done . Will constant infighting derail those hopes . And your market rally. Well take a closer look ahead. First, the Airline Electronics Ban that has everybody talking. Many scratching their heads and maybe looking for different flights. Youre not going to believe this story. Stick around. Were up next. S created over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing ist about achieving average. Its about achieving goals. And insco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. So what else is new . Humm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start witthat. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. Welcome back to power lunch. We want to check on markets. We are seeing a 1 loss on s p 500, or close to it. Nasdaq taking on the chin in most of the major three, down 1. 3 and s p 500, as i mentioned, is down by about 1 right now. Financials, really the loss leader in terms of sectors. We are seeing the financials down by 2. 6 . Its worth noting that small caps are feeling some pain as well today, down by two whole percentage point. A big story and an expanding one. Larger Electronic Devices will be banned on certain inbound u. S. Flights. That directive, coming from the department of Homeland Security today. And just in the past hour, here is how the story is broadening. Reports that britain has announced that they will institute a similar ban. Phil lebeau is live in chicago with the details. Phil, tell me how this works. Tell me how this makes us safer. Well, according to the department of Homeland Security, this is all about the flights coming from certain airports in the middle east, directly to the united states. And the concern is that terror groups are trying to smuggle explosives onboard, whether through laptops, ereaders, tablets. As a result, u. S. Bound flights from ten airport notice middle east impacting nine airlines. Well talk about that in a little bit, about 50 flights a day into the u. S. People on those flights will be required to check their electronics. They wont be able to carry them on board. They can still bring their smart phones and medical devices on board. The airlines that are impacted. When you look at this list, some of you might be saying im not familiar with some of these airlines. There are others that carry a lot of americans, including emirates, etihad, qatar. All of these have direct flights into the united states. Theyre restricting their electronics per the rule change from the department of Homeland Security. Thats the only way theyll be able to continue to fly into the u. S. The travelers on those flights, again, must check their laptops, tablets, erea tablets tablets,ereaders. Youll notice no u. S. Airlines are impacted by this change in the electronics that people can bring on board. Thats because the big carriers in the u. S. , all carriers in the u. S. , none of them fly to these ten airports that have been designated by the department of Homeland Security. Airline stocks are down today. Im not really sure its because of this electronics ban. That might also be because you have a broader selloff within the market. Airline stocks have had a heck of a run over the last six months. Phil, stick around. Stay with us. Well dive a little deeper into this. What it means for travelers, for airlines. Joining us now on our news line, is former department of Homeland Security, michael chertoff. Why do you think this ban was enacted now . Do you think its because of a specific threat or piece of information . There may be a specific element involved but frankly ive been expecting Something Like this for a long time. Last year there was an incident on an airliner coming out of somalia that had an explosion. It looks pretty clear that came from a lap top that had explosives within it. Terrorists have been working to create devices that are smaller and smaller with the capability of bringing down an airliner. And im assuming that what finally happened was they got to the point there was sufficient incredible intelligence about their capability that the department decided at this point they have to put the ban on Larger Electronics in the cabin. Fair enough. We all want to be safe. Thats the primary concern. This is one of those stories that i dont need to tell you youve been through this a lot more if you criticize it, its like youre being callous against the threat of any terrorist action. That is not the point. Our confusion, secretary, is if you have an iphone plus, its almost the same size as a tablet. Why are they making this differentiation, do you think over literally maybe a matter of an inch . You know, this is a balancing that you always have. We did the liquid ban back in 2006 after the plot to blow up airlines with liquid, we allowed three ounces on. Some quibbled and said three ounces, why not allow four ounces . They have to look at generally the size of the device, make a judgment that over a certain size is too much of a risk. It also has to be a clear line. There are gray areas but from the standpoint of the passengers and the screeners you have to have a pretty clear rule. In this case theyve made the judgment that devices over the size of a smart phone are probably too great a risk and that theyre drawing the line there. But there is always a gray area in the middle. Two quick questions. One, is this more about the airports than it is about the airlines and the security at those individual places . Number two, why is the electronic device, the laptop, safer in the belly of the plane than it is in the cabin of the plane . So let me try to answer both. I do think it is about the airports. The only reason we listed the airlines here is they fly directly into the united states. That becomes a concern of dhs. Its a combination of screening, whether the technology at the airport allows the airport screeners to find the explosives in a device. The second issue is screening a passenger in terms of intelligence. You know, do we know enough about passengers to recognize who might be high risk . And also recognize were dealing with an area where there are a sufficient number of serious bombmakers in the region that you do have to worry about bombmakers being able to fashion something that could fit in a device. I think thats why they picked the airports. Michael, this is phil lebeau. Why not just ban all electronics coming in on any flight from overseas into the u. S. . The theory that im seeing a lot of people advance today is, look, if i really want to target a u. S. Airline, flying out of frankfurt, ill go on a flight to frankfurt and smuggle the explosive on to that flight. Is the security that much better in frankfurt, paris or some other airport in europe or is it just cumbersome to try to make this across the world . You know, im speculating a little bit here. I think the issue again its always a balancing act. You do want to get the material risks. I would say if you get into frankfurt and you smuggle it in the belly of the plane, youre going to youll have to leave the security area. At that point you will be screened at frankfurt. That means whatever the technology is in germany, coupled with the fact that on that flight any information about a passenger thats high risk will be available to the authorities. So, again, the judgment is that the higher risk is if you fl