Right there at 13,960. This started thursday. The nasdaq felt the worst of it, down by 3 , closing at 4054, the biggest oneday decline since 2011. The nasdaq is down 7 from the recent high on march 5th. Its down by 2. 6 for the year. For the s p 500, that index down 2 for its biggest drop in two months. Were below where we ended the year. So youre looking right now 1833 after yesterdays declines. Its first close below its 50day moving average since february 10th. The index is flat for the year to essentially slightly down. Its down 2 . That index, the dow, dropped 266 points closing at 16,170, a decline of 1. 6 . The dow is on pace for its first weekly drop in four weeks. For the year, the dow is down by 1. 8 . And in yesterdays selloff, only two dow components finished higher, at t and mcdonalds. If it was 3 on the dow, it would be 500 points which sounds like a lot. 500 was the 87 crash but it was from 2000. It wouldnt be the end of the world but it would get your attention. We said it started yesterday. It started last friday. Remember why it started . As the tenyear started rallying. And yields started falling. And i thought, do you remember we sat here yesterday we were debating. No we werent. We we agreeing. We were watching to see hawkish or dovish . The market went up 200 points when they said theyre worried about employee inflation. Where we said i would take a low inflation worry to say were not going to do 3 and did you see the tenyear got almost below 2. 6 yesterday. This is what i think. Just in a nutshell, that the feds out of bullets. Theyre getting out no matter what. So were on our own in terms of the economy. Its got to be the economy. I no longer think that things bad news i no longer think bad news can be good news because the fed will stay longer. Well live or die based on the economy and i think there are signs. I want to i saw the santelli report yesterday in the 11. I thought he was nailing it. He was on fire. Saying the same thing. Whats happening. You get a yield curve this flat and everybody says theres no way theres anything wrong. You cant be predicting a recession because theres nothing in the cards to indicate a recession. We never know whether theres a slowdown coming. I didnt see the santelli report yesterday but i saw him a couple weeks ago explaining why the yield curve was the way it was. Steve used to do things with the white board. I want him to do one of those for us. We may get some type of answer about whether its just the hangover from 2008 and eventually we come out of it or whether all along its been the government sort of in the way of if we never get above 2 , andrew, youll have to admit that a lot of these government that regulations and higher taxes and corporatism, all these things are starting to affect the economy. We knew there would be a point where the training wheels would have to come off. These are small moves. It could be possibly things until you do see the economy. Most of the big hedge funds over the past week have been slaughtered. They also all remain long. Hedge funds are supposed to be hedged. I know theyre supposed to be hedged but most of these guys he was saying theyre leveraged. Theyre all playing through the pain. I think the prevailing wisdom is that this is a shortterm blip. The real pain wasnt in at t with the dividend. It was in facebook. Right. Or biotech. I described it, i was talking to some of the producers yesterday, i said this story. Everybody in the world will be driving a tesla someday, supposedly, until things come home to roost. Until you say wow, is that stock a trading at 80 times revenue . How do stocks trade at 80 times revenue. I want to talk about sebelius. Its coming up. Im thinking about it and then i a lot of times the journal crystallizes what my thoughts were. If it was a big success, the big victory lap they took, we did it, 7. 5 million, she should be she did it. She should be riding high right now. But they dont want to do it that way. This is the new obamacare now and shes gone. We have a new person. We have 7. 5 million. This is not accountability. This is getting her out of the way so you dont think of her anymore going into the november election. Its a new obamacare. Its working now, its perfect, its great. Now we have a new person. We have a new person. I think she should have replaced shes leaving. I think colbert should replace her. Colbert. Why cant i be a right wing asshole and call him colbert . He makes 10, 15 million a year imitating oriley. Why cant i be him and mispronounce his name . I was surprised they didnt pick daily show. That would have been a much this is going to be interesting. How do you know the guy . You want to do this now . Wait a second. Does anyone know if this guy can be a normal person and interview people and have fun . I know him and hes hilarious. I know him and hes hilarious, because you say so. You asked, im answering. What do you want . Two snarks dont make a right. Im not going to say anything about this guy. You saw what Rush Limbaugh said. Right. I saw that line. I know you think the entire country means nothing. This guy will only appeal to a certain do you know who the best news is for . Nbc. Jimmy fallon who has a different brand of humor which is not quite as snarky. I read that and thought, wow, nbc is going to be number one for the next 50 years. Colberts contract is up. It was always in time with letterman. If you think about it, cbs and the daily show or rather Comedy Central is viacom properties. If you are effectively redstone up here, you have to jon stewart is well take the lesser star because we dont want to destroy yes, absolutely. Comedy central . Jon stewart is Comedy Central. But if you do a really good job, you should get the next job. He gets paid more money than god. Im not sure. Hes not upset about it at all. Its a fraction of the potential audience youd get on cbs. He does well with 18 to 24, which is where your mind is most of time. The Major Concerns hanging over the markets, joining us now, david joy, chief Market Strategist at ama mameriprise financial. I dont think so. I think what we saw yesterday is still in the realm of what ill call Collateral Damage for the Broader Market. That is very much localized still in the biotech internet, these momentum plays that are washing out. The one thing that makes me a little bit concerned is that we did break through the 50day moving average. Im not willing to say the downdraft for the rest of the s p is over yet. I dont think this is the start of a broader connection. I will agree with what we were saying earlier. Were on our own now but were in a limbo period where were not getting clean data from the First Quarter. Its too early to get clean data from april yet. So were in this void where all were focused on is what we know will be a bad earnings season. I think the market has very little to support it. You have an answer why Interest Rate why is the tenyear not at 3. 5 . Didnt you think it would go to 3. 5 . I still think its going to go to 3. 25 . By the end of the year . Why . The economy is stronger. Thats why the tenyear the yield is going down because the economy is stronger than people think . No. Why is the tenyear going down in yield . Well, i think the tenyear is simply saying, look, theres no empirical evidence of my view that the economy is stronger, so why shouldnt i maybe hide out a little bit if im nervous about stocks . Where else are you going to go . You go to the treasury market and hide out for a little while. I think thats all this is. I will say in my career, the bond market has always been a very good leading indicator of whats gone on. Im trying to figure out whether or not thats what its telling me. Or is this more of a mirror image of whats going on . Youre wavering, hearing doubt. Theres always doubt. The bond market is bigger than anything its also the canary in the coal mine a lot of times. Its global yields, too. You have to Pay Attention to it, right . Absolutely. Theres always doubt. We dont know whats going to happen. Im willing to bet its more or less just a mirror image of whats going on in stocks rather than a leading indicator. I think the economy is better than the 2 or so that we got out of the Second Quarter. I think the Second Quarter will be above 3. Its too early for us to know that. The one piece of datas with a jobless claims number. The market ignored it. I think once that evidence begins to build up, i think they the weight of the evidence will arrest this slide and the market will stabilize. I think we go higher the next couple of quarters. It certainly could. Thats the way it works. Complacency is the enemy of all bull markets. Its not letting us get complacent, i guess. Well put you down for i think well do 3 this quarter. Yes. You dont think this is the beginning of a correction. No, i dont. The one thing ill point to is, look at where the least amount of damage occurred yesterday in the blue chips. It was in the broader averages. It was still really these momentum stocks that were the locust of all of this. Stay tuned, at least in the next few days. Okay. All right, david, thank you. Thanks. Well talk to other people today, i think. You know, that makes a lot of sense, though. Except that, you know, we have to talk about this as its happening. We cant get 266 points go by without this could be the end of the world. It is not the end of the world. We need to at least i put money in each of the kids College Funds yesterday. I put money in each of the kids College Funds yesterday. I felt like this was a buying opportunity. You wanted the ebay guy to be carl icahn. Dont you see this is part of the conflict . This is hyperbole. Its cable, sorkin. I know, its tough for my little brain. Lets talk politics for a moment. This is a story we were all talking about. Health and Human Services secretary Kathleen Sebelius has stepped down. Burwell has been chosen as her replacement. Lets go to john harwood. Good morning. Sebelius said she was staying till november. What happened . Well, look, when they had the crisis with the website last fall and the president was asked about this, you know, whos going to be held accountable . Are you going to replace Kathleen Sebelius, fire Kathleen Sebelius . He said what im focused on right now is getting the website fixed. He did not rule out a change at the top of that department. Now were seeing that accountability moment from the president. His aides are not saying she was forced out but the writing was on the wall. I think they decided they werent going to do anything until they got through the Enrollment Period. It was all hands on deck to fix the website, get people signed up. Now that thats happened as joe alluded to, they want to move past this. Was she kicked out or not . Apparently hours before she kicked out she was telling people that she was staying. I dont understand. I think she chose the timing of her departure. She chose the timing . Can you really say, though . Are you going to let me finish . No, no, that question is rhetorical that andrew is asking. We know what happened. It was a disaster. Im taking andrew as if he wanted an answer. She chose the timing but it was understood by everybody that he was going to put new leadership in charge of hhs. It wouldnt make any sense to do that in the middle of your Enrollment Period. This is a logical time. Exactly when after the Enrollment Period was done that i think was when Kathleen Sebelius had her choice. It was going to happen anyway. Management 101. It reminds me of gm and mary barra a little bit. Not the way it happened. Shes there, the recall wasnt her fault. She can address it and talk about it but it wasnt her fault. The same thing will be with this new budget person thats in there. It wasnt her fault. She can rest on the laurels of hitting the number of 7 million now. And the substance, joe, it was obvious there was a management problem with healthcare. Gov. If you have someone like Sylvia Burwell who is long on management, she worked at walmart, the Clinton Foundation and the clinton administration, shes somebody who is as bulletproof as a potential democratic nominee for hhs is going to be. Its not going to be easy to get anybody confirmed. That doesnt mean the president will leave at this point, right, john . Thats not happen be. Its a joke. I take your point. Im channeling Stephen Colbert again. Why not be somebody else . Somebody else . Why not be somebody else and make 15 million a year . I just want to see if he can be himself. There are he says he is going to be himself. Who is he . I dont know who the other guy is because i havent watched it. I dont either. That will be interesting when watching his show. As a homer, Jimmy Fallons kicking everyones butt. I think this is a good sign for him. If cbs wants to go for these intellectual i was always a leno person anyway. Les knows what hes doing. Its not as important as it used to be. Its much more pragme mefragmen jimmy fallon is the closest thing to a tape measure home run that a Television Network can do. Both sides can watch it. Letterman towards the end, im telling you, half the country wouldnt get their channel anywhere near that show based on the political crap you had to hear spewing out. Who wouldnt go near it . Half the country. The republicans wouldnt watch letterman. Right . I dont know what the makeup of his audience is. You wouldnt know how a republican feels. Thats probably true. Anyway ha, ha, ha. There are some rocky months probably ahead with premium increases and all this stuff were going to see. You dont want her there. She kind of she you could have premium increases but thats not a given. Youre more than likely going to get her through a Senate Confirmation hearing. It is likely, joe it is more likely that things will get better than worse. A, the website is fixed and when you get through the Enrollment Period, you have a greater risk pool. Wait a minute. Tobey cosgrove, a guy that was on board with obamacare said 75 to 80 of premiums were going to be above what they were. Health care premiums always go up. The question is, is there an exceptional spike. How many did we lose . What if 6 million lost and 7 million signed up . The studies dont point in that direction. What if its 30 20 young people or 15 young people and the rest are all old, sick people. A lot of things will still come out. Thats the risk. We have to see what the makeup of the risk pool is. We dont know. The bigger it is, the more likely it is its desiene. The john, thank you for joining us this morning. You bet. Much more on the selloff as we cover various angles. Plussing with all those high flight internet stocks that are heading back to earth, well talk about those. Right after the break, a group thats stepping up the battle over equal pay for women. First, though, check out the futures. More squawk box when we come back. Right now theyre essentially all along the flat line. Squawk box will be right back. Heres your travelers check. Travelers can expect to pay more for Hotel Room Service in the u. S. Than any other country. According to trip adviser. Washington, d. C. And new york city are among the most expensive. But which city tops the list . Find out, next. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. [ male announcer ] when fixed income experts. Work with equity experts. Who work with regional experts. Who work with Portfolio Management experts, thats when expertise happens. Mfs. Because there is no expertise without collaboration. Back now with todays travelers check. Which city charges the most for room service . Las vegas. In connection with national equal payday, an organization focused on gen y women in the workplace. Founder and ceo is joining us on set. Youre trying to get geny women equally involved. The wage gap has been skin the in the United States, if anything, its gotten worse in the last year. Women are losing over 431,000 over the course of their lifetimes due to the wage gap. And even upon graduation, the wage gap is 82 cents to the dollar. Coming out of our top institutions in this country. Theres an issue, its not receiving the attention that it needs. Were here to really enjabil millennial and gen y women to understand how to ask for what they need in their careers. Ive heard studies that say part of it is, women dont negotiate the same way. They are expected to behave a little differently. They know that. Thats why they arent as aggressive. Fewer than 7 of women negotiate their salary at any point in their career. Theres definitely an opportunity for us to be enabling women to learn how to ask. Part of our entire campaign is centered on the fact that theres this asking muscle that needs to be flexed. We need to get our talent comfortable with asking for whatever it is they need, feedback, responsibility, whether its a different job opportunity and whether its compensati compensation. Part of it has to do with women taking off time in the work force to raise kids. Thats an issue. They know its part of it. Its not the entire gap. It doesnt explain all of it. That does explain some of the gap. Those are tough decisions. I can think of it about it myself. I was thinking about what i was going to do, was i going to come back or not. We talk about this as well. Levo focuses on women in the first ten years of their careers. We start to have these discussions about integrating work and life and understanding how to approach having children. The wage gap becomes more and more distinctive once you get to the point where youre having children. We need to get you to feel comfortable really flexing your askin