Transcripts For CNBC Closing Bell 20240622

Last three years. An intriguing session in shanghai. The composite staging a huge comeback after a volatile trading session. Hong kong shares in the red. We have Ralph Acampora. European banks taking a hit as the future of greece and the euro zone hangs in the balance and well look at the true cost of a greek bailout. Meanwhile, gopro unveiled its smallest camera ever. The stock is not getting a lift on that news. Well hear what Ceo Nick Woodman has to say. You can carry all these things around. You put your phone up here too . No i dont. Crude oil in a tailspin. Jackie deangelis live at the nymex. Good afternoon. We saw oil shed 4. 40 to finish the session at 52. 53 selling pressure intensifying as we got towards the close. You mentioned demand. The situation in greece pushing us over the edge. Here in the United States gasoline demands falls off after the fourth of july weekend. You have the perfect storm to go lower today. We are also watching Nuclear Talks with iran. We know from secretary of state john kerry that genuine progress has been made but that there are some hurdles that the powers need to cross before framework is drawn together. We are watching the dollar on the back of whats happening in greece strengthening today. Traders anticipating to see more Dollar Strength which could pressure crude further. The question at this point is is this the crack in crude that everyone has been expecting for the second half . Right now consensus telling me we are probably headed lower from here. How much lower is the question. Are the guys on the floor trying to identify a support level at this point . At this point they are saying it could be height 40s. It could be the low 50s. Nobody is talking about a three handle just yet. When it comes to gas prices we probably will see that trickle down and see a decline. Pain at the pump we usually rise fast. Takes a little bit longer to see those declines. I would say high 40s is what they are talking about here. Lets get to china today. There were extraordinary measures to help support the market but the shanghai closed only higher by about 2. 4 . Shenzhen down 36 in three weeks. They try to stabilize the economy and markets. Joining us to discuss is jeff reeves from investor plays. Com. They are adding liquidity but you still have declines here. What do you make of what is going on there . I think its simply animal spirits is a crisis of confidence. This simply wasnt sustainable. What weve seen is a bunch of banks and brokers team up to try to create their own fund to prop up the market and provide a comeback rally. A story bloomberg put out correlated to the 29 crash. You have black monday everythings mayhem. Jpmorgan put a bid on the market to stabilize things and the bottom drops again and 34 down from there. We are seeing a little calm right now. Its not going to be a Straight Line down but there is more pain to come in china. Its a sentiment thing. There is mistrust and fear. This is also going to be a great column andrew brown wrote in the journal where he went to chinese shops where guys are day trading. Asked them about the market. They said it will go up because this is a market with chinese characteristic characteristics. Do you think consolidateing its power will do something more to prop it up . I think they will do something to prop it up. Its not just a crisis in confidence in the market. We have a boom and bust cycle where there are booms and bust. We can blame it on goldman or speculators. In china, beijing is responsible for the boom and responsible for the bust. The government are the bankers in china. They cant to let this get worse. Its not just a question of shortterm sentiment. Thank you so much for weighing in. Appreciate that. Thank you. Now to the other big story. Greece. Our chief International Correspondent Michelle Carusocabrera close to getting her green card over there. In athens with the latest developments. The big headline is that the greeks voted no yesterday. We learned what the European Central Bank Decision was. We knew they would meet to discuss what to do about greek banks. First of all, the ecb put out a press release. Theyve been having meetings to discuss the greek banks. We had dont word when they were happening and what the outcome was. They wanted to tell the world what they were going to do. They said they would not increase the liquidity to greece. That means there will not be more cash shipped into the country or printed on the press that is here to get more cash into the atms here in greece. That means the lines will continue. It could also mean actually they run out of physical cash notes within the next couple of days. There will be no more money to get. The other thing European Central bank said was they had adjusted the haircut. This is a central banking term. What this means is greek banks when they bring collateral like mortgages or any assets they have to the European Central bank for cash in the old days they would have gotten more cash than now. They will now get less cash to fund themselves. It makes more difficult to run. We presume the level that was changed was not so debilitating that it would cause the banks to shut down completely but still its a signal to the greeks that the ecb will get tighter and put more pressure on them. Greeks on the ground wont feel a difference because its about the cash in the system. That has not been adjusted at this point. Back to you. Judge, there was a striking interview where he says europe needs to call and come to some debt relief agreement. Anybody who lets greece know is crazy and not acknowledging other major countries. Do you get the sense european minds, creditors who will be meeting tomorrow or wednesday perhaps are beginning to come around to this view or no . It depends. There are so many countries involved. Germany insistent on no debt relief. Behind closed doors back then, everybody said to the greeks at the table, different greeks in power, they said we know you cant pay this back. We understand that. Here is what we are going to do. We are not going to have any repayments on this debt for ten years. No interest no principle, no nothing. The Interest Rate will be super low. You have ten years to get yourselves straight. By then hopefully the german people have forgotten it because we moved on. Wait until then. Greeks want to move that forward to right now. Im not sure they will be successful on that. Well see. We will see. Great job at always. Thank you. See you later. Lets talk about the impact from greece on our own markets here. David sowerby, jeff kilduff. The first time you were asked about our impact on greek markets was five years ago. 2010. Saints had just beaten Indianapolis Colts in the super bowl. Go on cnbc talk about greece and 5 1 2 years later, on again off again, more off again for greece but on again for u. S. Stocks, the s p in that fiveyear plus period compounded it 15. 5 . U. S. High yield bonds better than 8 . We will manage through this crisis the way we always do. There will be something that causes a bear market down 20 in stocks, but i dont believe its going to be greece. Steve whiting, the point is if greece is kicked out, Financial Markets will turn on the next country in line. Do you believe thats going to be the case . I dont jump to that conclusion. If you look at the situation now that greece is in i dont know who would assume that other european governments would follow the same course in any way. There is no one lined up to take these sorts of countermeasures. There is a political calculus there. The fact you are seeing so little pass through of this real greek crisis to other markets, 35 basis points spread widening on portugal today makes fundamental sense others are not going to try to go down the same route. Fundamentals changed a lot from the worst in 2011. Jeff killburg what do you make of the market . The dollar is stronger. Bond stronger in terms of price. Safe haven play. Oil down sharply. Our own markets and a seesaw today. Whats the message of the markets after all the intrigue over the weekend in china and greece . Weve seen the fireworks continue here. They are selling s p futures. I think the focus in chicago is the strength of the dollar. What will ecb do. Can i call mario draghi and ask him, what are you going to do . At the end of the day, the ec bs credibility is on the line. Their mandate is not to fix the greek drama but for the eu to fix it. Its easy to see what michelle was talking about. They are not going to give any more. They want to see this end quicker. We are seeing a big pop in volatility and the vix. Expecting that to continue as we move through it. Thank you. Appreciate it. About 45 minutes to go to the close here. U. S. Markets which turned positive on the session, dow is down 100 points. S p down about 15. Nasdaq is down 35. Crude oil, we established sliding after the greek volkswagenvote. Energy talks with iran, as well. Well talk to an energy expert. Kent moore is with us about how long this decline could last and where we go from here. Also chinas stock market is bottoming out here. He thinks the worse is over in greece. Acampora speaks with us exclusively. Keep it right here. If youre running a business legalzoom has your back. Over the last 10 years weve helped one million Business Owners get started. Visit legalzoom today for the legal help you need to start and run your business. Legalzoom. Legal help is here. Verizon say neversettle. Tmobile agrees. Never settle for verizons overpriced gimmicks. Try the uncarrier riskfree for 14 days youll love it, or well pay for you to go back. Welcome back. What do you think is the lagging index among the s p sectors . Something what do you think is the lagging index among the s p sectors . Something cyclical. How about energy . What bucket do you put it in today . Cyclical structural . Exactly. If we close below 540, that would be the lowest close before december 12. Transports are down about 1,000 points off their december highs. That interrelationship is not working here. Oil prices did tumble on all the tour moyes in greece china, lack of demand and iran maybe supply comes to the market at the close of the settle. Wti was down nearly 8 . Kent moore executive chair of money mat symposium. Shocking decline. Probable why it worst is over for a couple of reasons. The decline we experienced today is all out of measure to what it is that the market is telling us. I think this is more in terms of a psychological collapse than anything else. It is clear, however, that crude oil is going to take some time to recover from this triple whammy. Of the three, the iranian situation is probably the least serious. If we had an agreement tomorrow there wont be an appreciable iranian additional volume in the market for 18 months. That is a perception thing. We are still pumping in the United States. We added another rig count last week. First time since december. Or is it demand . Should we be more concerned about the issues facing china and other countries right now . If we take a look at the overall demand situation, the demand itself in very large measure across the board in energy is moving to asia. It will continue to do that through 2035. My concern is not whether china will continue to have a 7 annual growth rate or 4 annual growth rate. The Energy Component of that is going to continue to increase. Demand is increasing internationally. For the first time in over 40 years, i used to tell University Students for 40 years that its basic 101 is supply and demand. The first time i can remember half of that equation, supply is no longer an issue. We know we have excess supply. Demand when all is said and done for this year will come in higher than at any point opec or iea ever calculated. Some are starting to draw comparisons to the Natural Gas Market which had a lot of supply come on and this slow downward drift that in some ways we are witnessing today where the price is pretty low and everybody of thought it would rebound, but it never really has. Weve got realtime production across the shale space that can come on line any time there is a pickup in demand. Could we be looking for this new lower level oil could sit out some time . Oil will be rebounding from this. My initial estimate was that wti would be at about 65 a barrel by the end of this month. Im going to have to revise that down a little bit because of the gifts that the greeks gave us over the weekend. I do think we are going to be seeing 75 to 80 at the end of this year. The dynamics are moving in the same direction regardless of supply. One thing i see out in the oil patch all the time now is that companies have learned that simply because they can take volume out of the ground doesnt mean they ought to dump it at the market at the same time. We are going to see a supply situation here that will be increasing in stages. Very interesting. Always enjoy your perspective. Thanks bill. Tanker rates increasing because they are producing it. That itself is not necessarily a sign of better demand just more oil. Down 88 points on the dow. Weve got 39 minutes left in the trading session. S p is down 13. Nasdaq getting hit the hard percentagewise. Gopro ceo talking up the newest model a few hours ago. It all began when we challenged ourselves to build the smallest lightest most convenient gopro possible. More from that exclusive interview coming up. We have Ralph Acampora making bold calls on greece and china. Thats coming up. These two oil rigs look the same. Can you tell what makes them so different . Did you hear that sound . Of course you didnt. Youre not using ge Software Like the rig on the right. Its listening and learning how to prevent equipment failures, predict maintenance needs, and avoid problems before they happen. You dont even need a cerebral cortex to understand which is better. Now, two things that are exactly the same have never been more different. Ge software. Get connected. Get insights. Get optimized. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . When youre not confident your companys data is secure the possibility of a breach can quickly become the only thing you think about. Thats where at t can help. At at t we monitor our Network Traffic so we can see things others cant. Mitigating risks across your business. Leaving you free to focus on what matters most. The final vote 61 no. Banks in greece will not open tomorrow. There is hope in the marketplace. We wait to see if they start printing ious. Sticking with the euro gets much tougher. Welcome back. Biotech is outperforming the market today during a tough session. Take a look at versartis. The food and Drug Administration has removed a partial clinical hold on its treatment. Proceeding with the next phase of trial with children in that condition. Shares up 28 . Gopro falling the seven straight session despite unveiling its smallest camera ever today. Josh lipton spoke with the ceo earlier today. So small, so stoked. That is how grow pro describes its new camera hero 4 session. 50 smaller, 40 lighter and waterproof. Costs 400 and will be available july 12th. Gopro controls 90 of the action camera market here in the u. S. The hope is the new market will gain shares overseas especially in china. Business in china is good. For a brandnew market where we had no formal presence we are off to a great start. How many gopros we sell per week is really good when we compare it with a more mature market like the United States. Its promising. We are selling very well online there. Out of the gates we are feeling good. It shipped 1. 3 million cameras. It was gopros third conservative quarter shipping over 1 million cameras. Its not just about the hardware but Software Tools allowing users to edit and share content. He says the software is expected to roll out soon. Back to you. Time for a cnbc news update with sue herera. Here is whats happening at this hour. President obama arriving for a rare visit to the pentagon earlier this afternoon. To get an update from military leaders on the campaign against islamic militants. The president will make remarks on his isis strategy at the top of the hour and well take you live when it happens. Police found no evidence of a shooting at Walter Reed National military medical center, a 911 caller reported hearing a gun shot inside building one this morning. Police and canines trained to detect explosives completed a search of all 20 floors of the building. Starbucks raising prices from 5 5 cents to 20 cents. Coffee costs are only part of its expenses which include rent labor, marketing and equipment. Oreos are slipping down with a skinny new look. The new oreo thins are aimed at grownups. They will be on store shelves beginning next week. I dont know. That seems unamerican to me. The unfun oreo. Are you a dunker or a twister . I like the whole cookie together. But youve got to dunk them. Im all about the cream. These are europeanstyle biscuits that have been around forever. First its sparkling water. Now these oreo. I dont know what country im in. 30 minutes to go in the session. Dow is down 88 points. We were down 109 points. Down 88 for the time being. Up next top trader will tell us what he is watching during this most important last half hour of the trading day. Buckle up. Well discuss what a greek exit could cost greece and creditors. Ol d me to expect it. Intercourse thats painful due to menopausal changes. Its not likely to go away on its own. So lets do something about it. Premarin vaginal cream can help. It provides estrogens to help rebuild vaginal tissue and make intercourse more comfortable. Premarin vaginal cream treats vaginal changes due to menopause and moderatetosevere painful intercourse caused by these changes. Dont use it if youve had unusual vaginal bleeding breast or uterine cancer, blood clots, liver problems, stroke or heart attack, are allergic to any of its ingredients or think youre pregnant. Side effects may include headache, pelvic pain, breast pain, vaginal bleeding and vaginitis. Estrogens may increase your chances of getting cancer of the uterus, strokes, blood clots, or dementia so use it for the shortest time based on goals and risks. Estrogens should not be used to prevent heart disease, heart attack, stroke or dementia. Ask your doctor about premarin vaginal cream. What if there were only one kind of dog . Then it would be easy to know everything about that one breed. But in fact, there are over three hundred breeds of dogs. Because no one can be an expert in every one. An app powered by ibm watson will help vets tap Specialized Knowledge in the cloud for every breed. And whatever else walks, flies or slithers through the door. Ibm watson is working to make medicine smarter every day. Welcome back. 28 minutes left in the trading session here. Solar stocks trading lower. Crude oil as it goes down that makes solar energy less competitive so youve got sun edison, some power, all trading lower right now. Lots of knockon effects from that 7. 7 drop in oil today. Less than a half hour to go in the session. Could see unusual volume here. What are you going to be watching here . Oil in particular. That is probably the single greatest impact on the United States markets have come from a commodity side meaning this is more driven by china than greece. Michelle cruisearusocabrera has done an outstanding job. The investors need to keep a closer eye on china than we do on greece. Fair enough. We are seeing some of those growth sensitive areas trading in this market. Arguably a situation we are seeing play out across greece is terrible for growth prospects. They are a small part of euros gdp. I dont know what knockon 0 effects it could have. You can make that argument. I would take the other side of the trade on that one. The contagion risk is not for greece in trading greece. The contagion risk is for the club meds and weaker sisters left in the euro zone. Its been my position greece leaves the euro. Its not important. What is important is who stays and what haircuts they are giving if they stay. Not talking contagion but a Global Growth slowdown if that is the scenario markets are worried about, is chinaing ingfeeding onto that . The impact of the wealth effect in china is similar to other stock markets. China is still buying commodities. Ben willis on the floor here. Thanks very much. Joining us is Alberto Gallow at rbs. Thanks for joining us. Thank you. Are we finally at a point where we are going to get some sort of comprehensive agreement and restructuring for greeces debt or do they leave the euro all together . What do you think will happen here . Weve got three scenarios. The best is an agreement. Greeks have just presented a proposal to the euro group. The euro group is meeting tomorrow. The difference between now and before is debt relief is in the proposal. We need to see if creditors accept that. Default is where greece stays in the euro zone and third worst case is an exit. There are very few days before greece faces important payments to the ecb. Tonight ecb has increased hair cuts on the credit line to the greek banks. It could be expensive to the euro zone if greece leaves. How expensive are we talking . We are assisting a negotiation played not in the best ways for both sides. The cost for exit is bad for greece. Greece would face a humanitarian crisis with an exit and cheaper currency. People would not export to greece for a while. Theres already news of lack of basic goods. For the euro zone an exit is 250 billion euros. Thats the cost. Why . You would have around 50 loss on private and public debt across the state loans that have been given by the European Union to greece by the imf potentially and ecb. Also private loans to greek companies. Just haircut debt costs you less. Its almost half. Prime minister tsipras said a no vote would be the greatest bargaining chip he could take to brussels. Isnt it possible the greatest bargaining chip he had is knowing that the europeans dont want them to leave the euro zone because it would set a dangerous precedent . Isnt that still on the table or do you think its likely they would let greece go . Markets reaction today was muted despite the no vote but there is a bigger contagion fear if greece leaves euro denting the irrefersability of the euro zone. Greece has 150 f16s has two nato bases. Nato membership is separate from euro zone and eu membership but greece could get closer to russia if it exits the euro zone and with that it would probably exit the eu. There is a lot of things that are more than just a number. The president , the geopolitical importance and people want greece to stay in most year countries. Thank you for joining us. We will speak more about the impact this could have on greeces relationship with russia the next hour of the program. As we head toward the close about 22 minutes left in the trading session, the dow slowly coming back down 60 points. Beware the bear though. That would be the russian bear. As financial officials here and in europe attempt to figure out what will happen to greece lurking in the background is russian president Vladimir Putin. Well examine russias potential role in the greek crisis. First talking to the godfather of Technical Analysis Ralph Acampora who says greece will be just a blip on the screen. It took Tim Morehouse years to master the perfect lunge. But only one attempt to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. Welcome back. Heading into the close, digesting huge news out of the weekend weekend, china intervening to no avail. Copper the most economically sensitive is sliding to a fivemonth low. In part thanks to concerns about china. China is the top consumer of copper. Taking a number of measures to tablize its stock market over the weekend, including suspending new stock sales. Is coppers message a continued slowdown in the chinese economy . Lets talk stocks with the godfather of Technical Analysis Ralph Acampora. Well talk u. S. Markets. Weve got the greek situation and what is going on in the Chinese Market as well. Hello, welcome. How are you . Welcome back. Its been too long. Weve been stuck in a trading range. Since the highs were hit in early march. Do you see us breaking out one way or the other any time soon . We held it so well for so long. I get nervous every time we have a rally. A couple of the leading averages will make a slight new high but no major follow through. There are sectors that look good like the financials like technology. Even the health care and some of the industrials. The leadership is narrowing. What part of the world looks attractive to you . I have to go with the u. S. Market. We might be neutral but you look at the european markets. Theyve been rolling over. I think maybe china might be a pleasant surprise here. I was anxious to hear your thoughts on especially the shanghai market overnight. Down as much as 7 for a time. Then finished higher by 2. 4 on the close. The old saying is you never fight the fed. That is a put in the market. Take that as a positive. Plus technically the shanghai index, believe it or not, is currently sitting on its 200 day moving average. What would you do with greece . That market down 36 from july 14 highs, but the country seems to have the toughest piece of its economic journey and certainly this question whether it stays in the euro ahead of it. I think there is an awful lot of speculation about greece. I still think they still have problems. Its the u. S. Market im concerned about. Compared to last month, the u. S. Market is putting in a good day today. Let me take you to europe. So many people they see europe being a Better Bargain than the u. S. Market right now. Do you agree with that and the Impact Greece is having on the european stock market right now . Earlier this year the dax did better. Its the european markets still look like they have a bit of a problem. Its all the uncertainty about greece and the u. S. Market is holding well. I would rather stay home. What do you do with commodities as a trade . Commodities are currency sensitive. The dollar looks firm here. I think the dollar will remain firm. Probably work its way higher. That will be a bit of a weight on the commodities in general. Ralph, thank you so much for joining us. Thank you. 15 minutes to go into the close. Dow moving closer to the breakeven line. We are still down 65 points. We were positive at one point in the session. Weve been down more than 100. Keeping an eye on all these markets. Moments away from president obama fresh from a meeting at the pentagon. The president will reportedly unveil a new strategy to combat the Islamic State. Well bring that live. Before that well wind down a wild day for the markets. Started more than 150 points down for the dow. Touched green briefly, then started a decline again. Up next two wall street veterans offer their take on an incredible day in the market. Say neversettle. Tmobile agrees. Never settle for verizons overpriced gimmicks. Try the uncarrier riskfree for 14 days youll love it, or well pay for you to go back. [ female announcer ] who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into Business Owners. And were here to help start yours. Ten minutes left in the trading session. The bias is negligible to the sell side. Its hardly worth mentioning because it will pare off as we head to the close with the dow down 61 points. Joining us for more welcome to you both. What a 72 hours its been. What are you telling clients to do here . Greece is figuring itself out. We think it will cure itself over time. Its a risk. Its making people unease. We are in a news vacuum. Well start entering earnings season next week. That will give people confidence. Take the opportunity to be a buyer on weakness. What stands out for you, j. J. . Greece will be the word for the next few months. Obviously, this isnt done. One of the interesting things is i still think the retail client has a lot of confidence in the market overall. Hopefully well get some of that in earnings. We release our imx today. This was the second biggest month in june of retail clients buying. Its dividend paying stocks. I found that interesting even with the rate increase sort of imminent, the fact we had the meeting, put it off, you are seeing a lot of people still searching for yield. Im not surprised. People need the income. They dont want to go take a big flier with highyielding bonds. They feel more secure with a utility stock of some kind. The volatility is fixed income. Utilities were one of the worse performing sectors, down 11 plus. They are getting a bargain right now. You have to look for quality. Those that can take advantage of some of the dislocation going on. Will they get that protection or will they be harmed by adjustments to a higher rate regime . Interest rates that we are looking at will go to quarter point and one and done. You also get the up side in the equities. If you get paid to wait and be patient, its going to reward longterm investors. Its a great place to be. One trader told kelly greece is affecting the short term. That is what traders are watching. Investors should be watching china because thats where the bigger story economically is right now. Do you agree . Absolutely. I think china will be the next thing we are talking about. Greece will stay in the picture. To your point, if people are looking for income and dividendpaying stocks, those that are traders are still in the names you would expect. Buying a twitter, apple on weakness. They sold facebook as facebook rallied. Its interesting retailers act more like professionals selling one name and buying another. At least in this country. Thank you so much. Back with the closing countdown. Another Health Care Merger in the off 0ing as the list of Health Care Insurance options are shrinking. Why pause a spontaneous moment to take a pill . Or stop to find a bathroom . Cialis for daily use, is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. Welcome back. We want to call your attention to shares of lending club. The stock spiked about 15 minutes ago. There is some speculation, unsubstantiated speculation that this company could be an acquisition target. There is no confirmed source of this rumor so far. We reached out to jpmorgan. We want to bring your attention. Stock is up 6 and traded about 6. 3 million shares. On an average day it trades 4. 7. Active trading in shares of lending club. Thank you very much. Let me do a quick review of whats happening in the markets around the world after the no vote in greece. They were trying to prop up their own markets in china using various techniques. When all said and done shanghai index finished up 2. 4 . Then you move to europe. Well use the dax since germany is the Growth Engine in europe right now. Dow was down 166, briefly turned positive and headed south again. Finishing down at 17,677. One sector of note. The oil market. Just got clobbered on the close, down almost 8 at the nymex here. Its down 7 off the lows. What that did in the etf arena, the xle, the Energy Spider was down to a point we havent seen since 2012. Its interesting to see what happened throughout the day. Weve seen investors buying up defensive plays going into tomorrow. Which should be a headlinedriven session. You have concerns about greece. The concerns about china. Thats going to keep a lid on it till we get clarity about greece. No one is going to want to jump in here. You were talking about the Retail Investor that you guys watch at td ameritrade. First half of the year they were putting money in bonds here. We are seeing a reversal. Definitely. With volatility you see a lot of that. Fixed income market is the volatile market outside oil. One thing i did want to point out on the close, coming up on 2070 on the s p x. If you look at the range, weve got 2070 to 2030 since beginning of april. You are talking like a trader again. We like that. We are closing out a very volatile 24 hour period from asia to europe to the u. S. Well start it all over again and see what happens tonight. Stick around. A lot more. Welcome to the closing bell. Im kelly evans. Dow jones industrial average going out with a decline only 43 points. Larger declines across the nasdaq and s p 500. Tough week for stocks. 17point decline across the nasdaq. S p giving up about eight points. Oil getting slammed. Thats the real story of the session. Crude down, lets call it 7. 7 on the settlement. We are waiting to hear from president obama where he is to address United States strategy. That was expected to begin five minutes ago. When he does begin, we will bring that right to you. Joining our panel, we have dan greenhouse from btig with sara eisen, guy adami. Welcome to all three of you. The market shrugs off any bad news if people were really concerned about whats going on in europe the 10year treasury note would be at least 2 if not lower. Bonds are trading as if not that big a deal. The bigger story is china, as you mentioned. A bigger story is crude oil and the selloff in copper. We talked about it with dan last week. Alcoa starts earnings season. People are looking in the wrong direction. Earnings will be the story in terms of what happens going forward. Over the weekend, citi was among those saying they were avoiding european equities. Preferring Japanese Equities on the qe trade. U. S. Equities because of earnings momentum. What is interesting coming into the year there was a strong case to be made you want to be long european equities over just about anything else. There was an economic tail wind in terms of the data qe in terms of macro policy. Somewhere around april, a lot of our clients, what i would consider our smarter clients started suggesting they thought the bulk of the outperformance occurred. They were looking switching back to the u. S. Since the First Quarter, you much rather have been in equities. Since mid april, weve seen the italian index, french index, spanish index, portuguese index and german down between 10 and 12 . If portugals case 22 . What happens now . The economic damage its suffering from capital controls weighs over the market. Greece has a small window. It was a powerful statement Angela Merkel said the door is still open. European stocks are feeling it more than u. S. Stocks. Dax finished lower by 1. 5 . Italy down 4 . That is worth watching but to your point, its not allout mass dumping of european stocks and bonds. The euro talk about resilience. If you are looking at that proxy where people are thinking and investing around europe, it was down today. If you told people what would happen this weekend and which asset class suffered the most, how many would have answered oil . I would have thought would you see a flight of quality to gold. You havent seen that. I didnt think oil would be down 7 although larger conversation, i still think oil and copper feeling deflationary pressures. Sara mentioned euro. You could make a cogent argument any outcome is positive for the euro. That is probably a longer conversation. Sometimes having a little bit of news is a bad thing. It completely messes up the way you want to trade. You need to trade the markets in front of you, not the one you want. The point is regardless of all this bad news people still are flocking to the u. S. Equity market. In my opinion, until it has a significant break below 2050 or so in the s p, its still all systems go to the up side. The vote to reject the bailout is not popular in greece. What about now that the nation is dealing with capital controls . Michelle carusocabrera has that story in athens. Now that greeks voted no next step is for Alexis Tsipras to go to brussels and present a new bailout program. Well see whether or not what he brings meets with their approval or not. That would be the beginning of new rounds of negotiations. In the meantime today, we heard from the European Central bank which announced they have not increased the liquidity or cash giving to the greek banks. The banks shut down the most part with limits on withdrawals to only 60 euros per day. Some people cant get that much. Its already started to impact individuals on the ground. We spoke with a mother of four struggling to pay her bills. Knowing you can only get like 60 euro a day out of the bank and not being able to pay for your bills, for your familys food, for your childrens milk. Its really driving you crazy. Its not me that i can stay without food. Its my children. I just cant bear it. I just cant bear it. European central bank announced it was going to demand more collateral from greek banks for the cash they already received, almost like increasing the margin requirement. That is not going to be felt by greeks on the ground. Theres already such a cash shortage. However, it is a signal to the greek government that the ecb is getting tighter and tighter when it comes to how its going to deal with the greek banks. In athens Michelle Carusocabrera cnbc. U. S. Stocks today looking resilient. Are investors making a mistake . Well, i think greece has to be seen separate from things otherwise. Greece is mostly a tragedy for the greek people. I dont think anybody outside greece will change their life stile because of whats unfolding in greece. Having said that, i think asset prices are highly elevated. There is huge xascomplacency in the market. To take a property or see the glass half empty going forward. Stocks are vulnerable on earnings, beat on technical level. Greece might well be the catalyst to take them lower. Just homing in on the situation there for a moment how likely is it are we de facto seeing the country moving to a parallel currency . Definitely. The best thing creditors can do is wait. They cannot structurally move fast. They tap into the esm structure which requires more approval from governments. They want to have the greek come to the table. Greek country is suffocating. At some point the greek government is not going to be able to pay pensions any more and pay government employees, so theyll have to issue ious. Odds are they will trade at a discount to cash. We know from greek ministers that they have to make these payments coming up the next couple of weeks. They have to count on tax revenues continuing to flow to do that. What is the philosophy of a george papendrai whether it was important for the greeks to go back to the drachma . You are going to need debt restructuring. Something germany has taken a hard line against. Its hard to see how that deal will come together. If it does his position is certainly greece is much better off staying in the euro. It would be terrible for the Greek Economy if they didnt make a deal. He is keeping his money in greek banks. I did ask him that. He said i have to now. You cant take it out. Keeping all your money in greek banks is separate from whether you can get it back out. Greece will be better off, but they are not going to have a choice. They dont have money. Unlike what the greek public thinks, money doesnt grow on trees. Technically, it might not be easy to do issue your own currency. Even if they create their own currency, they may want to tap into the euro payment system. I can envision a dual currency there. Anybody who is well off will be using the euro. Its going to be sad for the greek people. Thats the path they are on. Guy, there is an additional wrinkle which has to do with the fact greece is an importing company. They import fuel and food. You can go to the drachma, but it will make the cost of those pro situation provisions higher. The humanitarian side will take effect at a certain point. Somebody will have to blink. July 20th if i listen to your show correctly last night, is the line in the sand. Short term is it bad for the greek people to get out of the euro . Probably. Got to leave it there, sorry. President obama delivering a statement from the pentagon on combatting the Islamic State. This fourth of july we were honored to once again welcome some of our incredible troops and their families to share fourth of july and fireworks at the white house. It was another chance for us on behalf of the American People to express our gratitude for their Extraordinary Service around the world every day. That includes the work that brings me here today. Our mission to degrade and destroy the terrorist group isil. There is a cause a coalition, thats united countries across the globe. Some 60 nations including arab partners. Our comprehensive strategy against isil is harnessing all elements of American Power across our government. Military intelligence diplomatic Economic Development and perhaps most importantly the power of our values. Last month i ordered additional actions in support of our strategy. I just met with my National Security team as part of our regular effort to assess our efforts. Whats working and what we can do better. Secretary carter chairman dempsey, i want to thank you and your team for welcoming us and your leadership including general austin who is leading the military campaign. I want to summarize briefly where we stand. I want to start by repeating what i said since the beginning. This will not be quick. This is a longterm campaign. Isil is opportunistic and nimble. Many places in syria and iraq including urban areas, its dug in among innocent civilian populations. It will take time to root them out. And doing so must be the job of local forces on the ground with training and air support from our coalition. As with any military effort there will be periods of progress, but there will be setbacks. As weve seen with isils gains in ramadi and iraq and central and southern syria. Today its also important for us to recognize the progress thats been made. Our coalitions now hit isil with more than 5,000 air strikes. Weve taken out thousands of fighting positions, tanks, vehicles, bomb factories and training camps. Eliminated thousands of fighters including senior isil commanders. Over the past year weve seen when we have an effective partner on the ground isil can be pushed back. In iraq isil lost at the mosul dam. Isil lost repeatedly across kirkuk province. Isil look at tikrit. All together isil lost more than a quarter of the Populated Areas it had seized in iraq. In syria, isil lost to kobani lost across northern syria, denying isil a vital supply to its base of operations in syria. These are reminders that isils strategic weaknesses are real. Isil is surrounded by countries and communities committed to its destruction. It has no air force. Our coalition owns the skies. Isils backed by no nation. It relies on fear. Sometimes executing its own disillusioned fighters. Its brutality creates new enemies. Isils recent losses in syria and iraq prove isil can and will be defeated. Indeed we are intensifying our efforts against isils base in syria. Air strikes will continue to target the oil and gas facilities that fund so much of their operations. We are going after the isil leadership and infrastructure in syria. The heart of isil that pumps funds and propaganda to people around the world. Partnering with other countries, sharing more information, strengthening laws and Border Security allows us to work to stem the flow of foreign fighters to syria, as well as iraq. And to stem obviously the flow of those fighters back into our own countries. This continues to be a challenge in working together all nations are going to need to do more, but we are starting to see progress. We are going to continue to crack down on isils illicit finance around the world. By the way, if Congress Really wants to help in this effort they can confirm mr. Adam zuben our nominee for treasury undersecretary to lead this effort. This is a vital position to work out terrorism efforts. Nobody suggests mr. Zuben is not qualified. He is highly qualified. His nomination has been languishing on the hill and we need the senate to confirm him as soon as possible. Meanwhile, we continue to ramp up our training and support of local forces fighting isil on the ground. This aspect of our strategy was moving too slowly but the fall of ramadi galvanized the Iraqi Government. With the additional steps i ordered last month, we are speeding up training of isil forces including volunteers from sunni tribes in anbar province. More volunteers are coming forward. Some are being trained and they can be a new force against isil. We continue to accelerate the delivery of critical equipment, including antitank weapons to Iraqi Security forces including the tribal fighters. I made it clear to my team we will do more to train and equip moderate opposition in syria. All this said our strategy recognizes no amount of military force will end the terror that is isil unless its matched by a broader effort. Political and economic that addresses the underlying conditions that allowed isil to gain traction. They have filled a void and we have to make sure that as we push them out, that void is filled. As iraqi cities and towns are liberated from isil we are working with iraq and United Nations to help communities rebuild Security Services and governance they need we continue to support the efforts of Prime Minister to forge a united Iraqi Government that supports all the people in iraq. In syria, the only way the civil war will end, and in a way so the Syrian People can unite against isil is an inclusive political transition to a new government without bashar assad that serves all syrians. I discussed this at camp david and during my recent call with president putin. I made it clear the United States will continue to work for such a transition. A glimmer of good news is i think, an increasing recognition on the part of all the players in the region that given the extraordinary threat that isil poses, it is important for us to Work Together as opposed to at cross purposes to make sure an inclusive Syrian Government exists. While the focus of our discussion today was on iraq and syria, isil theology poses a great threat beyond the region. Weve seen deadly attacks in tunisia, kuwait and egypts sinai peninsula, a growing presence in libya and foot holds across north Africa South Asia attacks in ottowa sydney france and copenhagen. I called on the International Community to unite against this scourge of extremism. The United States continues to lead. When necessary to prevent attacks against our nation well take direction action against terrorists. Well continue to also partner with nations from afghanistan and nigeria. Well workday and night with allies and partners to disrupt networks and thwart attacks and smother nascent cells that may be trying to develop in other parts of the world. This includes remaining vigilant protecting against attacks here at the homeland. I think its important for us to recognize the threat of violent extremism is not restricted to any one community. Here in the United States weve seen all kinds of homegrown terrorism and tragically recent history reminds us how a single individual motivated by a hateful ideology can inflict tremendous harm on americans. Our efforts to counter violent extremism must not target one community, including Muslim Americans who are partners keeping our country safe. That said we also have to acknowledge that isil has been particularly effective at reaching out to and recruiting Vulnerable People around the world, including here in the United States. They are targeting muslim communities around the world. Numerous individuals have been arrested across the country for plotting attacks or attempting to join isil in syria and iraq. Two men apparently inspired by isil opened fire in garland, texas. Because of our success over the years improving our Homeland Security we made it harder for terrorists to carry out largescale attacks like 9 11 at home but the threat of lone wolves and small cells of terrorists is complex, harder to detect and harder to prevent. Its one of the most difficult challenges we face. Preventing these kinds of attacks on american soil will require sustained effort. I just want to repeat the good news is that because of extraordinary efforts from Law Enforcement as well as our military intelligence, we are doing a better job at preventing any largescale attacks on the homeland. On the other hand the small individual lone wolf attacks or small cells become harder to detect and become more sophisticated using new technologies. That means we have to pick up our game to prevent these attacks. Its also true why ultimately in order for us to defeat terrorist groups like isil and al qaeda is going to also require us to discredit their ideology. The twisted thinking that draws Vulnerable People onto their ranks. I said it before this broader challenge of countering violent extremism is not simply a military effort. Ideologies are not defeated with guns, they are defeated by better ideas. More attractive and more compelling vision. So the United States will continue to do our part by working with partners to counter isils hateful propaganda especially online. Will constantly reaffirm through words and deeds we will never be at war with islam. We are fighting terrorists who destroy islam and victims are mostly muslims. Around the world we insist on partnering with muslim communities as they seek security prosperity and the dignity they deserve. Well expect those communities to step up in terms of pushing back as hard as they can in conjunction with other people of good will against these hateful ideologies to discredit them particularly when it comes to what we are teaching young people. This larger battle for hearts and minds will be a generational struggle. Its ultimately not going to be won or lost by the United States alone. It will be decided by the countries and communities that terrorists like isil target. Its going to be up to muslim communities including scholars and clerics to keep rejecting warped interpretation of islam and protect their sons and daughters from recruitment. It will be up to all people leaders and citizens to reject this sectarianism that fuels resentments and conflicts which terrorists are thriving. Up to governments to address the political and economic grievances terrorists exploit. Nations that empower citizens to decide their destiny, invest in education, create opportunities for young people. Those can be powerful antidotes to extremist ideologies. Those are the countries that will find a true partner in the United States. In closing, let me note this fourth of july we celebrated 239 years of american independence. Across more than two centuries, we faced much bigger more formidable challenges than this. Civil war, Great Depression fascism, communist, terrible nature disasters, 9 11. Every time every generation, our nation has risen to the moment. We dont simply endure we emerge stronger than before. That will be the case here. Our mission to destroy isil and keep our country safe will be difficult. It will take time. There will be setbacks as well as progress but as president and commander in chief, i want to say to all our men and women in uniform serving in this operation, our pilots, the crews on the ground personnel, not only on the ground but at sea, our intelligence teams and diplomatic teams, i want to thank you. We are proud of you. You have my total confidence that you are going to succeed. To the American People i want to say we will continue to be vigilant. We will persevere and just as we have for more than two centuries, we will ultimately prevail. Thank you very much everybody. Thanks to the team up on the stage here with me. They are doing an outstanding job. President obama speaking live from the pentagon this afternoon. Are you going to veto the defense bill that are going to pay me . What is your latest thinking on that . We heard second hand through statements of policy that your advisors would threaten a veto. Would you veto the appropriations . Our men and women are going to get paid. Youll note ive now been president 6 1 2 years and we had wrangling with congress in the past. Our Service Members havent missed a paycheck, but what is also important in terms of our budget is making sure that we are not short changing all the elements of American Power that allow us to secure the nation and to project our power around the world. What we are not going to do is to accept a budget that short changing our longterm requirements for new technologies, for readiness. Not devote too much money on things we dont need now and robbing ourselves of the capacity to make sure we are aware of future threats. I worked closely with the chairman and members of the joint chiefs of staff to develop a budget that is realistic and looks out into the future and says this is how we are going to handle any possible contingency. We cant do that if weve got a budget that short changes vital operations and continues to fund things that are not necessary. We also have to remind ourselves that the reason we have the best military in the world is first and foremost because weve got the best troops in history, but its also because weve got a Strong Economy and weve got a well educated population. Weve got an incredible Research Operation and universities that allow us to create new products that cab be translated to military superiority around the world. We short change those, well be less secure. We have to recognize that a, we cant think short term. Weve got to think long term. Part of our National Security is to make sure we continue to have a Strong Economy and continue to make the investments we need in things like education and research that are going to be vital for us to be successful long term. As an army reservist, do you have any plans to send any more american troops overseas right now . Additional forces . There are no current plans to do so. That is not something we currently discussed. Ive always said that im going to do whats necessary to protect the homeland. One of the principles we all agree on though i press folks hard because in these conversations with my military advisors, i want to make sure im getting blunt and unadultered, uncensored advice. For us to succeed long term against isil we have to develop local Security Forces that can sustain progress. It is not enough for us to simply send in american troops to temporarily set back organizations like isil but to then as soon as we leave see that void filled once again with extremists. It is going to be vital for us to make sure that we are preparing the kinds of local Ground Forces and Security Forces with our partners that cannot only succeed against isil, but then sustain in terms of security and in terms of governance governance. Because if we try to do everything ourselves all across the middle east all across north africa well be playing whackamole. There will be a whole lot of unintended consequences that ultimately make us less secure. All right . Thank you. You guys got two bonus questions. Thanks. As you just heard, president obama giving some unanticipated questions to the press corps after speaking live at the pentagon. That followed an update on the Islamic State. He did address that in a 15 to 20 minute address saying hes upgraded his assessment of the threat the Islamic State opposes, and lone wolf groups. Despite upgrading the assessment of the threat did he lay out new strategies . No. He reiterated his strategies and said they would be broad, not just military diplomatic, political, intelligence, communications on social media. Talked about the fact that some progress has been made although there have been setbacks in iraq and syria, emphasized the need for new government in syria, which is something hes advocated. Hasnt happened to remove bashar assad from power there. Talked about the need to train local forces local sunni forces to take on isis themselves. Talked about the threat of lone wolves on the American Homeland that the Intelligence Community had to step up its game and the importance of bringing allies into this fight around the world. It was not a new strategy. It was a reminder that there are many strands that will take a lot of time with the one hes already laid out. What about his philosophy where he said we have to fight them with ideas and invoked, for example, the importance of education . Thats right. He was laying out some of the elements of the budget standoff he has with congress over both within the Defense Budget but also defense versus nondefense needs. He said that if we dont adequately fund education, Scientific Research and other elements that the Democratic Party and that he are advocating more so than republicans at Different Levels we are going to be less secure as a country. He indicated that going after isis militarily only one part of the strategy. There are a lot of other broader elements. John harwood, thank you so much, with reaction to the president s comments and questions in his speech at the pentagon this afternoon. Much more reaction to president obamas statement and how the battle against the Islamic Terror Group could impact oil prices. Is greeces debt crisis just a drop in the bucket compared to china . Is this the Market Investors really need to worry about . [ male announcer ] we know theyre out there. Never settle for verizons overpriced gimmicks. Try the uncarrier riskfree for 14 days youll love it, or well pay for you to go back. Welcome back. The dow down 46 points. Nasdaq down 17. S p down eight. Not a great session. A far improvement from the huge declines we did see yesterday after the greeks voted no. The greek debt crisis dominating the headline but china may prove to be a bigger concern for the global markets. If you want to get a sense of just how the mood is here talk to my producers massage therapist telling her he stopped talking to his stockbroker or talk to the uber driver who i was with who said he is trading stocks while he is driving but was really irritated because a passenger interrupted his sale so he lost a lot of money. This is what everybody here in china is talking about. The stock market. Stocks were seen as not a reliable investment. People would put their money in property or stick it in the bank. Because the government has been encouraging a rale ing aing a rally, weve seen investors jumping into the market. They are taking on a lot of debt. When the market started to turn down, we saw panic set in. We saw the authorities jumping in guns blazing over the weekend. Several leaders, including the chinese premier were huddling with dramatic moves. Some were stabilization fund. Chinese central bank committed more liquidity. Ipos were suspended. Theres a lot of speculation here that the leadership is increasingly concerned that if they are not able to stabilize the market what is an economic issue at best could turn into a social issue. Yesterday we were hearing a lot of talk from investors questioning whether or not the government had control of this issue and whether or not they were going to need further measures to try to really rebuild confidence here because its just become so pessimistic. Those anecdotes are remarkable. Obviously, in the states everybody wants to equate this to 1989. Eunice looking at the shanghai stock exchange. From june of last year to june of this year rose by about 150 . Since then down by 26 . Is there some level of perspective being applied here . Not that 20 decline and the speed of the 26 decline doesnt matter but in the context of the larger move the chinese stock market still had a terrific move over the last year. This may become a 1999 in the u. S. Situation, but at least now, if you invested over the last year youre still okay. I think if you are a rational investor and sat back you would think that way. A lot of investors in the Chinese Market are not that way. They are not looking at fundamentals, but tend to sell on rumors or buy on rumors. We were talking to one woman called the stock market goddess in a village and she said she follows the government policy initiatives. It was interesting to today to hear investor chatter where people were questioning if the government had control. The premise is that the government is trying to encourage this rally. Some of the investors i was talking to were saying the government doesnt have control over this rally then should i even be in this market right now . The most interesting thing was that the massage therapist and uber drivers were worried about the stock market. That its concern ultimately. What if this starts to hit Consumer Confidence and spending . Mark chandler wrote a smart article today. They are targeting their equity prices, Exchange Rate a lot of balls to juggle in the air for chinese policy makers in hopes it doesnt have this hard landing. Someone commented do i want to be in this market if the government doesnt have control of it. In the United States the last place you want to invest is a market which the government has control. Over time, free markets are going to win every time. To lure people in because the government is involved thats the irony. Thank you so much. A lot for us to think about. Out to dominic chu. Lets talk about the free markets. The free markets after hours are sending shares of Advanced Micro Devices down 10 , 433,000 shares traded in the after hours. The Company Announced its cutting its Second Quarter outlook citing weaker pc demand. Amd sees revenues down 8 . It previously warned of a 3 drop plus or minus 3 . The Company Expects Second Quarter adjusted Profit Margins of 28 . Prior guidance was 32 . As a result you see those shares now down by about 10 , 438,000 shares traded. Just as eyes are turning to u. S. Earnings. Thank you. Might be a tough one for the tech sector to digest tomorrow. Vladimir putin trying to cozy up to greece. What exactly does the russian president want from greece . Would a russianbacked bailout be worse than no bailout at all . Russian president Vladimir Putin speaking with Alexis Tsipras today. Putin expressed his support to the people of greece. Could putin and russia extend a lifeline to the country . Nina, welcome back. This follows a visit tsipras paid to putin. Could they turn to russia for support . They are already turning to russia for support. How much russia can provide Financial Support right now is a question. They can certainly ease quarter sayings of trade agreements or offer various, we talked about it various oil deals that would be very beneficial to greece. The oil point is interesting with energy here. Arguably, russia doesnt have a ton of money to spend. If they could provide energy that would greece more room to negotiate and introduce the drachma. Absolutely. There was a russia selfimposed food embargo. Greece is part of that embargo. Russians are saying as long as greece remain in the euro zone we are not going to lift that embargo. Its a very agricultural country greece. If you go to your own currency our relationship will be wonderful. This is why i wonder if the west is attentioned enough on this. I dont think so. I did a quick Google Search for greece, russia, china. Slate magazine Foreign Policy value walk first post and World Politics review. Why is there not a new york times, a the Washington Post type article talking about the political side of this crisis rather than the economic side which admittedly while we are a financial network, most people dont follow or care about the economics, they care about the politics. Shouldnt this be a bigger story . It should be a very big story. I think its a huge mistake that the United States or Media Outlets do not concentrate on the ideology part of it what putin is doing, what russia is doing is united the christian orthodox camp. Their cartoons in the Russian Press today are interesting, shows all the egos and horrible western capitalists, america and eagles are cool. Not the great spiritual double ego russia has but the former soviet kind of egos and small bear which is greece and big russian bear walking there. Could it be because the concern here is greece isnt going to leave the euro. That doesnt mean greece would leave the eu. It would still be a nato member. It would still be european. Isnt that where it gets geopolitically tricky . It is geopolitically tricky. What russians want is for greece to choose. Are you part of that eastern christianity civilization or part of the hypocritical west . I think that is going to be where the fights are going to be. Its not even about the euro any more its about what greece belongs to. As far as putin so far is going, he could be very scovel in convincing greece to go otherwise. President obama just reminded us about the importance of ideas. Thank you for joining us. President obama making a rare visit to the pentagon minutes ago for an update on the battle against the Islamic State. Can the u. S. Defeat the Group Without putting more troops on the ground . What that could mean for the global markets. We live in a pick and choose world. Choose choose choose. But at bedtime . Why settle for this . Enter sleep number. Dont miss the lowest prices of the season going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store. Right now, save 300 to 700 on select mattress sets, plus 36month special financing. Ends monday know better sleep with sleep number. vo rush hour around here starts at 6 30 a. M. On the nose. But for me, it starts with the opening bell. And the rush i get, lasts way more than an hour. announcer at scottrade, we share your passion for trading. Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. What i find so amazing about this is its the antisurge strategy. No additional u. S. Ground forces, continuing to rely basically on air power alone, and the question is does air power have diminishing returns . We talked about the gains that were made but they retook ramadi recently. Theyre still battling for the refinery. After 5,000 air strikes is isis really on the run . I dont think so. He made it sound like this is going to be a Long Campaign and we are making some progress and they have given up some territory. Does this call for a surge strategy at this point . You look at 2007. What did petraeus do . Put an additional 20,000 u. S. Troops in the theater. And now is important because you have to convince iraqi sunnis to switch sides. Skin in the game. We also spent hundreds of millions of dollars to convince those sunnis that there was a job for them a place for them in iraqi society. And the question is if youre not going to spend that money and youre going to rely exclusively on air power are you going to roll this back . Guys . Let me ask you a question. President ial candidate donald trump recently said that we should bomb the oil fields. Is that a good idea . And what would the ramifications be . Well first of all, whose oil fields . Were bombing the Syrian Oil Fields already to deprive isis of access to that revenue. The question is if youre going to bomb Iraqi Oil Fields in the north where isis operates theyre controlled by the kurdistan government, whos our ally. So when i look at that i dont think thats a feasible strategy, nor do we wnt to push any upward pressure on oil prices. I dont see that as really going to change the situation. I just wanted to clarify in case. Ground troops. You have a live debate essentially saying we need to show iraqis that were committed to fighting alongside them. The trainers are not fighting with iraqi forces. And this is where the Oil Price Collapse has ramifications. The police in ramadi have not been paid for six months. The Iraqi Government is facing a real fiscal challenge. So its a big burden on them to try to fight isis alone. Sara . On the oil collapse we saw quite the move lower today, Oil Prices Diving below 53 a barrel. You heard iran you heard greece, and you heard china. How would you rank those factors in terms of what we saw in the market . I think greece was a big story but it comes on the back of the rig count numbers from last week in the sense that u. S. Production may not be rolling. So we have this persistent oversupply narrative, which could get worse tomorrow if we get a deal with iran and theres an anticipation that well be looking at potentially a million extra barrels of iranian crude hitting the market at the worst possible time. Now, i think its going to be a slow return of iranian barrels and i dont think the deal is done but i think the market will sell off tomorrow if theres a deal. You could test 50. So thats not even priced in. No. You could test 50 on wti tomorrow. Ive had numerous conversations with Energy Clients at our firm and there is among the energyspecific investors nearly widespread agreement that lower prices are to come. It is the generalists, if you will, that have been a little more optimistic on the price of oil in terms of the stocks and commodity. Are you seeing that . Right now we look pretty ragebound at this point. Demand has improved. Is there a floor for prices . We might be looking at 1. 5 or 1. 6 million in demand this year. Yes. But will we need to see some supply roll over to pull Prices Higher . I think thats the case as well. So right now we need to see some producer rollover. And its not just the u. S. You have opec going full throttle at this point. Iraq is facing fiscal challenges but continues to pump away. Halima, thank you so much. The 123457b9 surge strategy, as you put it. Appreciate your thoughts this hour. Halima croft from rbc. China greece oh my. A volatile day. The panel weighing in on what theyre watching ahead of tomorrows trading session. Stay with us. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. Welcome back. Some big news in the teblgch sector after hours. Amd. Theyre saying their Second Quarter guidance is going to fall short of the companys earlier targets. They cited weaker than expected pc demand a theme weve been covering for some time. You can see the reaction in shares. Once they resume trading after hours, down 12 . Admittedly from a low base. Company only trades around 2. Heres the intel armed holdings and nvidia. Not much response. Slightly weaker. If anything the tech sectors and the semiconductors we should say today having a tough session. Tech sector in general in danger of turning red for the year. Up only 0. 2 at this point. And as we head guys into earnings season this not the best way perhaps dan, to kick things off. Listen its not going to be a good earnings season. If you include energy shares. Amd obviously not an energy share. But excluding energy it should be okay. Health care is a big standout. Its going to be an okay earnings season. I dont think some of the negative Market Sentiments that pervaded heading into the First Quarter earnings season are in place now. Its not a great earnings and revenue environment, but neither is it the armageddon that some people protested today. The strong dollar will be a headwind, but can companies overcome it . It will be a headwind but it will be less of a headwind than it was in the First Quarter. So it should be a little better. Well see. Pepsi actually reports this thursday. So thats going to be to be the first real multinational display. Well see how companies are dealing with it either hedging or just showing growth in their underlying business. Remember the u. S. Economy has rebounded from the First Quarter slump. And a lot of the numbers lately have looked good. Tomorrow well get jolts which is i love the jolts. I love the jolts. The quit rate of course and the openings. And thats an important one. We know janet yellen pays attention to. I just want to make a play in our last ten seconds. Can they get the jolts out more timely . Job openings and labor turnover. This is a sealevel economic indicator. To us its very exciting. We have our monthly meeting. But the normal person the average person doesnt care. The average person loves jolts and i know thats true. Thank you for joining us, guys. Really appreciate it. Dan greenhouse sara eisen. That does it for us on closing bell. Fast money begins in a few moments. Melissa lee, whats on tap . We saw a mini rally in the airline stocks. Ual, delta as well as Alaska Airways also closing with very solid gains. Oils pressure helping. Top analysts to say whether or not this sector has moved past those allegations of collusion. I was going to say, transports still, melissa, they should be doing better given this huge plunge in order. But something for you guys to explore. Straight over to you. Thanks a lot, kelly. Fast money starts right now. Live from the nasdaq marketsite overlooking new york citys times square im melissa lee. Pete najarian, dan nathan Karen Finerman and guy adami. Tonight on fast the great wall of worry for stocks. Greece china and oils plunge all weighing on markets. Oso weve got your three stocks to buy right now with volatility back in play. Plus General Motors dropping below its ipo price of 33 bucks a share for the first time this year. Phil lebeau will join us with a special report on whats behind that decline. But first to the oil crash. Crude tank to the tune of about 8 . Logging its worst performance since april