Power Play: Stay away from these sectors

Stocks are down on Thursday, with a triple-digit loss for the Dow. The major averages down more than one-percent and are having their worst day since February 23.

LPL Financial Investment Strategist and Economist John Canally tells CNBC's "Power Lunch" he is focusing his allocations in the United States.

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"Short term, we maintain a cautious view of developed international equity markets until further evidence of fundamental and technical stability emerge; accordingly, for now, we hold very little exposure to developed international equities," Canally said.

In the U.S., he is staying away from materials. "China's slowdown and transition to a consumer-oriented economy suggest caution; better opportunities may arise later in 2016," Canally said.

Another sector he's avoiding is utilities. "We acknowledged technical strength and lower interest rates with a modest upgrade in February 2016, but rich valuations and interest rate risk may cap further potential outperformance," Canally said.

Materials and utilities are both lower during trading.