Russell 2000 up by. 78 . West texas at 53. 13 up 1. 48 or nearly 3 . The 10year note theres the yield at 2. 28 . The price is lower, the yield a little bit higher. Mandy drury today on the floor of the nyse with bob pisani. Seems like this has been where all the actions been this week, ty. Seemed like the likely place to come down to. Bob, fantastic job yesterday covering the big event. But in terms of todays action, we opened up with big volume. 249 to the up side. Why are we losing steam here . I think there is some realization that greece is still very iffy and china, the gains yesterday, theres a lot of companies that respect even trading there. Some people are saying we dont know whats going on in china. The bottom line is were keying off of greece and china. We did have very smooth opening at the New York Stock Exchange. The nyse said that outage was caused by a Software Rollout that caused Communications Issues between customers. Talk about that later. But it was a strong open as mandy noted. Were drifting lower throughout the day. Volume believe it or not is on the heavy side. Seems like we didnt lose any business down here at the New York Stock Exchange. The s p 500, you can see we started quite strong. Weve been slowly drifting lower throughout the day. Thats what im talking about. Though thats a oneyear chart. The important thing is weve been drifting lower. Big investors vowing to get back into china in a big way. The shanghai and shenzhen indexes, the biggest gain in more than six years for them. 1,400 stocks not trading on both of these exchanges. Thats about half of them are not trading. Thats why people are suspicious of these kinds of rallies in china. Meantime, hopes that maybe well get a deal in greece. Maybe theyll abolish early retirement, raise taxes. A lot of things are floating around. An intraday of germany, thats one of the best days in a long time for germany. Up 3. 3 . Greece does not trade and theyre not open but, folks, they do did trade here in the United States. The grek trades a basket of greek stocks. Theyre trying to estimate where the stocks would trade in greece but they trade here. Thats the important thing. You see that moving up towards the highs of the day as well. I want to note also that crude stabilizing was an enormous help today. S p energy is the big leader today. Financials and materials. Finally, let me just point you over here and show of some of these chinese stocks. All are rally noticeably. 360 is up 5 . All these stocks trade right here at the New York Stock Exchange. When we talk about china, were not talking that something abstractly happens in shanghai a billion miles away. These stocks trade right here at the New York Stock Exchange and you can buy them here in the u. S. You can also buy Mainland China shares using etfs here in the United States. A bit different world than it was 15 years ago. But to your point a oneday rally does not stability make. When you lock up 40 market cap over the Chinese Market and gated large shareholders some people feel thats just throwing fuel on the fire. The chinese authorities have caused a lot of concerns about whether or not these rallies or these selloffs are real by constantly intervening. Their argument to People Like Us is you do it in your markets. Isnt that what qe2 and 3 was . Lets be careful before we throw too many stones here. Sure very heavyhanded policymakers though over there. A news alert in the bonds market right now. 30year notes are up for auction. Rick santelli over at the cme. Whats demand like and what grade are you giving it . First of all, it is 13 billion. 30s are really auction in may so theyre not quite 30years. Theyre 29year 10month. Grade i gave it was dplus dogplus. 13 million ended up going off the dutch Auction Block at a yield of 3. 084 . I never saw a trade higher than 3. 07 in the one issued market. Maybe there was a half trade i didnt catch and it was right at the end. So what happens when it goes off at a higher yield than the one issued range. Higher yield, lower price. Hence the dplus. If you look at 2. 23 bid to cover, below the 10auction average, 51. 1 was pretty close to the 10auction average on indirect. 78. 1 on directs were light. Every metric was light. The pricing was really soft. We werent here during the closure yesterday. 10s were an aminus. So definitely this was the dog of the bunch. 58 billion now on the market and the markets selling off after supply. Pay attention here. Some real important levels like 2. 32 in 10s. You should pay close attention to. All yours. We are paying close attention, rick. Lets get out to the nasdaq now. Bertha coombs. Hi bertha. Hi mandy. We are seeing a broad rally here overall. Some of the biggest gainers include ultra genex on pretty good news on a bone therapy trial. Walgreens, Boots Alliance naming the new ceo permanently. Hes very bullish on their prospects, saying they are on the hunt perhaps for some sort of acquisition. Theyre really pushing forward when it comes to health care. Nasdaq today is stronger. Nasdaq yesterday gained most of the share when we saw those trades diverted from the nyse floor. Today things are back to normal in terms of the level of where things are tradesing overall. As far as some of the stocks coming back that were really beaten down earlier this week sohu sohu. Com has gained back half of the losses today. Chips continue to be trading to the downside. One thing that continues to under perform here is apple. Take a look apple. It just turned negative here on the session. Since it has been added to the Dow Jones Industrial average apple is off more than 4. 5 even as the industrials are only off about 2. 25 . Its one of the big drags. Bertha, thank you. Greece has until the end of the day to submit concrete proposals to creditors. Greek banks remaining closed until monday now with that 60euro withdrawal minute. Chief International Correspondent Michelle Carusocabrera is live from greece and Steve Leisman has landed in frankfurt, germany where this is all being watched very closely. Begin with michelle in athens. Michelle. Reporter tyler the partially functioning Banking System is putting a strangle hold on the Greek Economy. We want to show you an example. We spoke with the ceo of a Company Called kana laboratories. They distribute pharmaceuticals and cosmetics here in greece. His business is heavily reliant on imports. Started more than 80 years ago by his grandfather. If he cant start paying those suppliers very soon because the Banking System starts functioning again, he and his 200 employees are going to be in trouble. I havent been sleeping okay in the past five years, to be honest. There is a lot of uncertainty. Theyre worried. Were a company that has been active for 85 years. Most of our business is imports. We import raw material. 100 to 120 raw materials. We have stock but it is limited. Although a lot of our partners have given us some space to breathe, if this goes on for longer, it is going to become that real issue. We will become a risk for those companies. If we cant import raw materials, we cant produce, we have to stop manufacturing. I dont see it as an option. So i have no backup plan. But im positive thinking. I see the glass half full. And thats what i want to transmit to my people as well. It is a company which has gone through a lot of difficult times, so were used to surviving and thats what well do now as well. Reporter so up until today, you couldnt transfer money out of the country electronically. Thats why this gentleman is suffering so much with his business. Now greeks are learning physically they cannot carry more handthan 1,000 euros of cash out of the country on their person. They are going to have to set up border controls to make sure people arent getting around those capital controls. Step by step here things are getting worse. Now to frankfurt, germ in i. Clearly a key part of this story as germans are under pressure to make some concessions to greece. That pressure is coming from yes, the Obama Administration. Steve leisman is reporting for us today from frankfurt. Steve . Reporter tyler, thanks very much. Yeah that pressure from the Obama Administration coming in the form of a phone call from the president to the german chancellor Angela Merkel earlier this week along with comments made by treasury secretary jack lew. That is being debated here in germany and it seems to be playing a role. Weve had these very very minor steps here by some of the germans. In fact just a little while ago at a conference across town the german finance minister conceded for what we believe is the first time that greece indeed does need a haircut for its debt but then went on to say theres nothing germany can do about it. It cannot help because of the concern over the Broader European Union and the european Monetary System. Now this issue of haircut and concessions to greece is a huge issue here domestically for domestic politics where on the one hand germans seem to be deadset against any additional concessions in the polls that weve seen. On the other hand they dont want the eurozone or the european Monetary System to be undermined in any way. Thats a big choice that merkel has to make here. We talked to some germans on the street here and we got both sides of the issue. I think it is a really difficult situation. I think we have to do thats what we call johnny correct thing. I think it is a shame germany had a bailout once and now they refuse to give one to greece again. So i think thats the best solution. Reporter so were just waiting now. It should be just about six hours that theyre expecting the greeks are expecting to give some detailed proposals here and what weve heard, mandy, is that if the greeks dont give it by tonight, then the staff cant review it and the european leaders cannot debate it on sunday. So after tonight i think it is going to be more up in the air. And every passing hour i suppose, raises doubt that that detailed proposal is coming from greece. Midnight is crunch time. Thank you very much live from frankfurt. China is now the Number One International investor in United States housing. How does chinas stock market crash factor into all of this . That is coming up next. Dont go away. Procter gamble selling 43 of its Beauty Brands to Beauty Products manufacturer coty for 12. 5 million. Brands like clairol and cover girl were included in the deal. Tmobile boosted its subscribe base to 58. 9 million. Data server and Storage Network company qlogic under pressure as First Quarter sales and profits coming in well below expectations, the shares tanking by a chopping 20 . Lets turn to housing. For the very First Time Ever the chinese are now the top investors in u. S. Real estate. Well get to that story in a second. But lets get out to vienna where secretary kerry is giving a statement on iran. Well good evening, everybody, and let me start by thanking all of you for your remarkable patience. I know in fact all of us involved in this know that this has been a very difficult couple of weeks for the many journalists who are here in vienna with us. But let me assure you, we would not be here continuing to negotiate just for the sake of negotiating. Were here because we believe we are making Real Progress toward a comprehensive deal. But as i have said many times, and as i discussed with president obama last night, we are not going to sit at the negotiating table forever. We also recognize that we shouldnt get up and leave simply because the clock strikes midnight. And i emphasize, given that the work here is incredibly technical and that the stakes are very very high we will not rush and we will not be rushed and we wont let ourselves be rushed through any aspect of this. All that we are focused on is the quality of the agreement, and that is what will continue to define our work. If in the end we are able to reach a deal it has to be one that can withstand the test of time. It is not a test of a matter of days or weeks or months. Its a test for decades. Thats our goal here. And the simple fact is that despite all of the progress that we have made and thats real some of the tough issues remain unresolved. We know that difficult decisions dont become easier over time. In one way or the other, those decisions must be taken very soon. That is precisely why all of our delegations remain hard at work here in vienna and its why a number of my counterparts returned last night and are here now, so that we can continue to push through on the tough issues and ultimately see whether or not the good deal that we have been working for so hard is possible to achieve. Thats what were working on and thats we will continue to work on. Thank you all very much. But how long are you willing to stay mr. Secretary . I just said this is not openended. President obama made it very clear to me last night. You cant wait forever for the decision to be made. We know that. If the tough decisions dont get made, we are absolutely prepared to call an end to this process. Thank you all very very much. Thank you. The president said its less than 50 50 that youd get a deal. Thats what he told the democrats and senators. Well thank you all very much. Secretary kerry choosing no the to answer that last question from i believe nbc newss andrea mitchell. Saying there that it is not an openended negotiation at the table in vienna. He said that the two sides are making Real Progress towards a comprehensive deal but some tough issues remain unresolved. Theyre focused on a quality agreement. Theyre not going to get up and leave simply because the clock instruction a particular hour but theyre not going to sit there forever. Lets bring in eamon javers in washington. It sounds like while it is not openended, there is certainly a willingness to stay longer. Yeah thats right, tyler. Some real negotiating brinks man brinksmanship here on the last side. U. S. Had hoped to be finished with this negotiation today in Vienna Austria but obviously that happened yet. You hear from the secretary of state a willingness by the eye United States to continue to negotiate even though this deadline they had set is now passing but he seriously indicated that they are willing to walk away from this deal. President obama telling members of Congress Just last night that he thought the chances of getting a deal might be less than 50 50 and president obama giving his final instructions to secretary of state john kerry last night in a Video Conference with the secretary of state. Clearly a key moment here now for this negotiation. Will the United States walk away . Will the iranian side continue to make concessions . Will the United States offer concessions . All of that up in the air right now. And a lot of this is going to be some stage craft here and Stage Management here, who is willing to walk away who is willing to sit down. All of that posturing now very important as they get to the final stages of a deal. At this stage what is the key bargaining chips the United States is left with to bring this to a resolution . One of the things the u. S. Side can talk about is the resistance here in washington to any deal with the iranians. They can tell their iranian counterparts across the negotiating table that republicans in washington are not going to support a deal that goes too far in their eyes. That they have simply reached the limit of what they can do. And also that threat by secretary of state john kerry to get up and walk away from the negotiating table. That in any negotiation is key. If you say, hey, ive gone as far as i can go now im getting up and leaving the room. Thats the point where you have to fish or cut bait. Thank you very much for that eamon. Lets take a look at oil prices which were already rebounding today by the way. Ice brent is currently sitting up by over 3 53. 49 for wti. Well keep a very close eye on whats happening with crude and if there is any machltovement on the back of these developments or nondevelopments. All three major indexes rebounding today after yesterday. All up more than 3 . Shanghai up by nearly 6 . Are there opportunities in china or is it better to stay away . David riedel is a longtime china investor. David, ive been struck here by the idea that in a market where the government by fiat can say basically half the stocks arent going to trade and we dont know when theyre going to and that sellers cant sell and we dont know how long thats going to be, that this isnt really a market as we know it. Is that a fair characterization . Well, there is a couple of things that call into question chinas Securities Market as an efficient market pand asand as a reliable, investable market. Theyve shown their ability to halt things to bring to braer tremendous government intervention. It is also fairly divorced from fundamentals. This is a market that underperformed during the time period when chinas economy was doing so well and has now outperformed dramatically during a time their growth has sloan down. This is a very retail market, it is not a very deep market. It hasnt had the kind of experience, depth and humidity of a hong kong for example which has always been our preferred way to play china growth. I think you are quite right. There are definitely some restrictions and some issues on considering this a transparent and efficient market. Do you think well have to see a fundamental repricing of assets that are related to china or in china based on the fact that it feels to me like the credibility of the government, the ability of the government and or the pboc has been completely undermined here. State media was hyping up the benefits of Equity Ownership and everyone went in on borrows money, in many cases have lost their savings now and theyre angry with the government. Feels like the Central Bank Put is not arriving well in china. The impact on this and the wealth effect of this is fairly limited. Only 7 of the chinese population. But you are quite right, the people people were so enthusiastic about the shanghai stock market was because the state media and beijing were very clearly behind it. They went with a kitchen sink approach over the weekend really pouring everything they had into this anden monday and tuesday were both very weak days. I think it reminds us that the limits of beijings policy ability and it reminds the population of china that maybe beijing doesnt have the magic touch that theyve had in so many parts of the economy in infrastructure, in the development of the state owned enterprises and so on, so for the. This is something a little out of their control which is not something beijing typically likes. David thank you very much. Appreciate your being with us. They say that those who do not learn history are doomed to repeat it. What can the history of Global Markets tell us about the road ahead for greece and china . Our analysts are back after the break. Power lunch is back in two. Do not go away guys. A special dual location version of power lunch. Nobody told 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. A new season brings a new look. A chance to try something different. This summer, challenge your preconceptions and experience a cadillac for yourself. Take advantage of our summer offers. The 2015 cadillac ats, the sharper performance sedan. Lease this from around 269 per month. Welcome back to power lunch. Im on the floor of the cme group which is still open outcrying, by the way looking at intraday chart of 30year bonds. Keep in mind they settle under 3 . They settle at 2. 98 yesterday. Here they are hovering at 3. 10 and it wasnt a pretty auction. A 10year 2day especially Pay Attention to we have had several bottoms and unchanged on the year and we settled virtually unchanged on the year at 2. 19 . Were up at 2. 30 , for 10year note yields. Euro verpsssus the dollar who knows the outcome of greece . Who knows when the dped isfed is going tonormalize. Look at the euro versus dollar chart. It really isnt fundamentals it is how the traders day trade. Mandy, tyler, back to you thank you, rick. Weve been talking for a while now about greece and china to some peoples view probably endlessly. But those who study history of the Global Markets are asking have we seen all of this before and if so what can we learn from it . Lets bring in our cnbc contributor ron insana. As you look back lets start with greece. You draw some parallels to germany under the republic in the 20s and early 30s. A lot of people tried to draw those parallels with the United States saying the Federal Reserve had gotten so generous with its Balance Sheet we were facing hyperinflation. Lets take all military and political issues aside. Greece is in a depression. In 1923 germany was facing hyperinflation that was a result of the aftermath of world war i. And the represent france insists that germany pay extraordinary reparations for it the damage they did during world war i and to finance that they printed their own money. It was called wheelbarrow money. Greece brought this on its own, as germany did in its own way. Youve got a depression. Should they exit the euro and did. Start printing their own money that is going to be devalued, people would get hurt. I bet they would face a depression and hyperinflation. A debt burden is virtually unpayable for a economy thats threequarters the size of indiana. When they talk about haircuts, what do they mean there . In other words, that youre going to get 70 cents back on the dollar . Yes. Reduction in the amount you get back. That is not allowed in the eu constitution. You cannot default on your external debt to other nations within the eurozone. Lets pivot to china now and parallels between todays china and japan in the late 80s early 1990s. I would say theyre identical in a lot of ways. You had a property bubble. Stock market bubble. And the belief here in the United States that a new model for capitalism had been found that was far superior to our own. The japanese had a mercantilistic economy. They had interlocking directorates among their corporations. As the stock of Mitsubishi Bank went up and mitsubishi chevy industries and mittsby see motors were all held together on the way up that leverage worked well but on the way down the market crashed. We are still 50 below the alltime high. Now theyre the biggest real estate velinvestors in the United States. This is the shanghai composite against the price of copper which is in many ways a proxy for the chinese economy. China is the biggest user of copper. In 2012 when china was growing quickly, copper was at 4. 25. Today it is at 2. 50. Granted, the rest of the world has slowed but if you assume copper is just a proxy for chinas Economic Activity you can see how divorced the shanghai has become from the underlying economic reality. This is a bubble and bubbles do burst and the government is absolutely, absolutely doing all the wrong things at the wrong time. That bubble fueled by margin and retail investment. One thing i would take issue with your prior guest. 90 Million People is only. of the chinese population. 800 Million People in china live on 1 to 2 a day, subsis tans wages onts farms. 300 youre talking closer to 20 of the population getting murdered by whats going on in their markets. Like japan where we thought they were invincible in 1989 they thought that recently about china, i think quite the opposite is true. Thanks, ron insana. To read more of ron insanas analysis of the situations in greece and china, head over to the website thats power lunch powerlunch. Cnbc. Com. Back dmt 19in the 1980s myself and school kid friends were packed off to japan to learn japanese because the japanese economy was on such descent. Know what my kids are learning now . Chinese. China is putting pressure on Commodity Prices of late. Thats straight ahead. Invest remembers bracing for a greek exit from the eurozone. Forget about the economic ramifications for a moment. There would be major inunintended consequences elsewhere. Why a grexit could spark major instability in europe. Stay with us, should be a really interesting conversation. [ 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. Hello, everyone. Im sue herera and heres your cnbc news update for this hour. Attorney general Loretta Lynch announcing federal marriage benefits will be offered to samesex couples nationwide following last Months Supreme Court decision guaranteeing their right to marry. The marine general nominated to be the nations next chairman of the joint chiefs of staff testifying before Senate Lawmakers this morning. General Joseph Dunfor telling him russia posed the greatest threat to the United States. Pope francis celebrating his first mass in bolivia where hundreds of thousands attended. He urged the crowd to reject consumerism and materialism saying it only creates barriers between people. He said a memorable life needs the participation of others. And, its a royal photoop. Prince william and his wife kate releasing photos marking the christening of their daughter be with princess charlotte. Pictures were taken by a well known photographer after charlotte was baptized on sunday. What a cutie pie lets get to bob pisani on the floor of the nyse. Hello, sue. Lets look at the s p 500. We started quite strong. Were keying off largely china and hopes for a greek deal eternally but weve slowly been drifting lower in the middle of the day. With good reasons drifting slower. A lot of people dont believe the rally in shanghai. Weve been talking about that 6 rally. 5. 7 in shanghai. Thats the biggest rally in years over there but the problem is people dont think its real or that it is sustainable. Look whats happened in the last week. Weve seen trading suspensions. Half of the shanghai and shenzhen markets are not even trading. We dont even know what the market is really doing. Theres restrictions on futures trading. Theres a ban on large shareholders out there selling for six months. Any surprise that we dont know whats going on there. Then the chinese are trying to help out the market. The government is stepping in to buy medium and small companies. Chinese brokerages are pledging to buy 120 billion yuan of chinese stocks supposedly voluntarily. Is it any wonder nobody here believes that this is real anymore. Cant figure out where the market should be. Thats part of the skepticism thats out there. Whats helping today, little stabilization in oil at 53. We knocked it down this week but weve stabilized today. Thats helping financials and materials to the up side as well. Big story tomorrow hopefully we pivot to the u. S. Janet yellen speaking about the economy in cleveland in the middle of the day and everybody down here will be happy to talk about u. S. Fundamentals. Mandy, that will be a good day after spending a whole week talking about china and greece. Greece will still be around. Greece will still be around for some time i fear. Thank you very much for that. Lets bring in a couple of guests to step over here next to me. Andrew sloomis, from morgan stanley, andpurely from a perspective of global contagion, whats more troublesome . If greece was going to cause this lehman contagion, the euro would be going down. Do you think really . Yeah. Bottomed at 105. Its at 110. It is telling you this is contained. If greece was going to become the next contagion lehman gold would be going up. Golds down. I think it is telling you the markets are saying that this may not resolve itself well for greece but it probably wont cause this big contagion that everyones worried about. There is one theory of thought on both of those things that gold is not benefiting from the greek situation as much as you might think because it is not a currency crisis it is a political crisis. Take away the dead limbs and maybe the eurozone is stronger. Well thats true but that would imply that there isnt going to be this global slowgrowth slowdown just because of greece. I dont think there will be a Global Growth slowdown because of klein. When china was up 160 on the year, or year over year, i didnt hear anyone telling me this would cause a big boost in Global Growth. He dont think well see a problem there. Certainly didnt cause a big boost in Chinese Consumers buying u. S. Made products. Eric to you, same question. Which is more important on your radar . China or greece now . I agree with andrew that neither of them has a high probability of having much of a contagion effect globally. I think on the margin greece is the one that is the most concerning because there is a moral hazard issue that core europe is having to deal with in terms of greece. They can only go so far in accommodating the demands of the government because theyve got portugal, spain and italy in the wings. Those countries actually spain and italy mainly are big. Greece is less than 2 of gdp. It is size of the economy of the state of louisiana. Itself it isnt a problem. Banks do not own that debt anymore. Governments own that debt. Question becomes a moral hazard question. They cant be too solicitous of greeks demands. You cant let the dominos fall essentially, can you. Bun last question. Lets bring it back home and talk about earnings season. It just kicked off last night. Bit of a disappointment from alcoa and overall expectations are fairly low. Secondquarter profits expected to fall 3. 1 . Is this a case of low expectations easy to beat . Great point. Whenever you go into earnings expectations and the market is weak, you never exit expectations in the market weak and you never go in with the market is strong and exit strong. In other words, expectations are very low right now. Thats bullish. The other thing thats important to consider is we have had the biggest buyer of stocks is not buying stocks right now which is Corporate America because we are in the blackout. That will end in a couple of weeks. Thats very bullish for stocks in the u. S. Near term. You think as well eric we can move higher in the stock market over earnings season . Yeah absolutely. Earnings i think are going to come as a result of Economic Growth. We think Economic Growth is accelerating clearly in the second quarter. The feds indicated that they agree. That Economic Vitality of the United States should push earnings. There is some operational leverage still even though profits are at very high levels. Theyre shown to be operational leverage. We think you get a kick. You get a 5 Earnings Growth rate, why cant we be 5 higher from where we are at the end of the year. Okay andrew and eric, thank you so much for joining us. It will be nice to focus on whats going on here and not always looking offshore. Go to powerlunch. Cnbc. Com to see how andrew and eric are playing europe. Mandy, volatility in china, major indexes on the upswing over there today as you see right there. We are going to talk to managers of the top china mutual funds to find out how they are playing these big, big moves. Plus one stock that may rise as much as 20 . Well tell you what it is when power lunch returns. We live in a pick and choose world. Choose choose choose. But at bedtime . Why settle for this . Enter sleep number dont miss the final days of the lowest prices of the season. 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. Dont miss the final days of the lowest prices of the season. Save 300 to 700 on selected mattress sets. Ends sunday know better sleep with sleep number. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Welcome back to power lunch. Im Julia Boorstin in sun valley idaho. The market volatility in china has been a hot topic here. I spoke about it with disneys ceo bob iger who tells he while he is keeping his eye on the markets because disney does have busy throughout the business throughout it the globe, he tells me hes as bullish as ever. Were almost a year away from opening shanghai disneyland and we feel just as enthusiastic about it today as we did just a few weeks ago. Even though they have their market issues. Reporter iger added well be getting more information about the shanghai park thats in the works in the next week or so. Other media moguls we spoke to from barry diller to Discovery Communications david zazov say theyre confident the Chinese Market volatility should not have a particular impacten enon their business. 8 of out 10 s p sectors are in the green rights now with financials leading the way higher up about. 9 . Walgreens Boots Alliance leading the s p after announcing better than expected q3 earnings and acquiringing a ingavons liz earl brand. Cigna is nearing a deal with Health Care Company anthem and pandora moving higher after nearly 4 and northland securities issued an outperform rating earlier this morning. Lets dive a little further into the markets right now with ken in i pollny polel polkari. You were sitting with us yesterday. What have we learned the day after . I think what weve learned is first of all that technology doesnt necessarily mean that everything is guaranteed safe and secure. Clearly thats not what happened yesterday but you see that what happened whether it happens here or across a range of industries or other exchanges or whatever. That we understand. I think what we learn though is the current Market Structure is such that investors are protected. I think thats really the key. One of the key important things since everyone is so focused on it is that Retail Investors and intugsal investors really realize they feel safe and secure. You say this is a technological failure not a market failure. The safety net here was the fragmentation. The fact that nyse stocks could be trade on other platforms. Therefore the Market Structure that we have today in fact saved the system. It was not a market failure. Market failure would be if the whole system went down. That would be a market failure. This was not a market frailailure. It was a Technology Glitch and ill still call it a glitch because the place didnt implode implode. It was just a glitch its been fixed. Volumes are right back where they are. Were doing exactly what weve done, 22 or 25 of the volume which is what we represent every day. Were right back in the middle of the game. Let me ask you this in the nicest possible way. Yesterdays glitch took out the floor traders as well. Does it make you down here as a person irrelevant . No. Im going to tell you why. I appreciate the question. It doesnt at all because there are brokers down here myself included that are able to still represent the customers and do the business because i have access to the Market Structure. I have access through my own system to the alternate venues to be able to continue to represent customers. In fact even though i couldnt execute here on the floor yesterday i was still able to execute in the other venues. For me it is absolutely not irrelevant at all. I think thats i appreciate the question. Way to go defending yourself there. Kenny, quick question on todays markets. What do we look at going into the close . Listen. Were testing the 200day right here. Great action out of europe. Those markets closed better than 2 . My sense is that were going to close here or a little bit higher. I dont think it will get weaker into the bell. Weve already started the earnings season. Alcoa surprised nicely on revenues. They missed profits. But yet their revenues were better and clause kleinfeld was very bullish on his outlook. It sounds to me like there is a lot of nervousness for maybe not maybe people shouldnt be so concerned. Lets get back to eamon javers in washington. What are you watching . Were watching fbi director james comey who just sat down with a group of reerts here in washington, d. C. He told those reporters that some of the roughly ten people arrested over the past month or so in isis related activities were actually plotting terrorist attacks designed to come around the july fourth holiday this past weekend. Comey saying i do believe our work disrupted efforts to kill people in connection with july fourth. Remember fbi director james comey spent the bulk of the day yesterday testifying on capitol hill making the argument among other things that unbreakable technological encryption by u. S. Technology companies is a danger to the fbi and Law Enforcement because they wont be able to investigate terrorist activity and criminal activity. Comey in this session with reporters also said this cord according to nbcs pete williams. He said some of those arrested in the past four weeks were communicating with isis supporters using applications that encrypted their messaging making it impossible for the fbi to monitor anything. That would bolster comeys case he was making on capitol hill yesterday. Still ahead on power lunch Boone Pickens will join us at the top of the hour. Meantime, well be right back. 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. Im here at the Td Ameritrade trader offices. Ahh. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. An extra 200 buses are on the streets of london abc the entire Transit System shut down workers walking out on strike. The strike is expected to end tomorrow morning. It is over working conditions. This hours power points, greece has until the end of today to submit a proposal to creditors of the country. Greek banks will remain closed until monday at the soonest. U. S. Housing market has become a global hotspot especially for chinese investors just last year. China contributed 28. 6 billion to u. S. Housing. Julia boorstin interviewed Disneys Bob Iger and asked about any concerns he might have over chinas market swings. He said we feel just as enthusiastic about china today as we did a few weeks ago. If you missed any of the big stories over the past hour visit our website, powerlunch. Cnbc. Com. In the Yahoo Finance question of the day is market volatility persists is it time to cash out . 28 say yes. 40 say no. 32 say the markets will settle eventually. The majority are saying no it is not the time to cash out. Theres been a lot of discussion about the effect china could have on stocks ashdz the around the world. Morgan brennan is looking at the big crunch china has already put on commodities. Reporter were talking a lot about commodities like oil and gold. But as chinese ecwhich is have plummeted, nickel prilss are down 19 over the past month. Iron ore down 26 . Well break that down and what you need to know in terms of this commodity complex when power lunch returns. 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 . You total your brand new car. Nobodys hurt,but there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had a Liberty Mutual new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. New car replacement is just one of the features that come standard with a base Liberty Mutual policy. And for drivers with accident forgivness,rates wont go up due to your first accident. Learn more by calling switch to Liberty Mutual and you can save up to 423. For a free quote today,call Liberty Mutual insurance at see Car Insurance in a whole new light. Liberty mutual insurance. Welcome back everybody. Heres whats ahead in the next hour. Boone pickens is here. Well ask him what he thinks of a possible iran deal and its impact on oil. Why oil has fallen lately. And why he says natural gas is the key to winning the war on terror. Plus an admiral on why greece may mean a lot more to the world than just finance. And can chinas recent loss be your gain . A top fund manager is here with what he is buying. Right now back to power. Brian, thank you. The downturn in the chinese stock market has caused major moves in commodities already. Not just talking about oil and gold. Morgan brennan has the whole story. There is quite a story to be told here. Look at the shanghai composite. Despite todays rally this is still down 27 , almost 28 over the past month. Thats weighed on industrial commodities as investors worry about the countrys slowing Economic Growth. Remember china is not only the biggest producer of Industrial Metals but it is also the biggest consumer accounting for upwards of 40 of global consumption. As chinese stocks have dropped, so have metals. Take a look on the london metals exchange. Copper is down about 10 . Nickel down 19 . Lead down almost 11 . Zinc almost 10 . Aluminum as well down almost 6 thats over the past month. Certainly issues in china something coming up in alcoas Earnings Call last night. Nickel, which gets used with stainless steel is down 19 . But iron ore has also hit an alltime low yesterday. Analysts know that tepid demand and oversupply fueled by china were already pressuring prices this year. Weve seen china exports flooding markets like the u. S. As its domestic demand has waned. All of this is playing out in stocks here in the u. S. As well. The s p material sector worst performer over the past month, down 5 . Though it has been rallying today on heels of what we have seen with china. Thats down about 5 . Among the Metals Companies that have been hit the hardest, freeport mcmoran. Also ael doe with a, all of those down big over the last month. That, folks, will do it for the first hour. Mandy down at the nyse. Over and out and down here at the nyse its over now to brian. Back at the mothership. Were just going back and forth here for his show on power lunch. Thank you. It is now 2 00 on wall street. 11 00 a. M. In wawa washington. I am brian sullivan. Melissa lee joining us from the nasdaq. Oil up 2. 5 to just under 53 a barrel. Though both stocks and oil are up today, their longterm trend may be anything but certain, which brings us to your lead guest today. He is a man who knows just a little bit about both oil and stocks. He is Boone Pickens. He is the founder of bp capital and he is here in a cnbc exclusive and he also has an oped out in Time Magazine why natural gas is the key to winning the war on terror. Boone, ill get to that in just a minute. First, oil because youve been calling for 70 a barrel by the end of the year. Oil has dropped recently my friend. Are you sticking by that 70 call . If i miss on 70, it will be because its over 70, not under 70. Thats how confident i am. Why are you so confident when and i know that drilling rig counts have gone down actual production, boone i dont need to tell you has gone up. Not just here but with your friends at opec as well. Well true. That is true. But here we were down this week 50,000 barrels on u. S. Production. We have he a turned over and well start down from here. 1,000 rigs makes a lot of difference. Theyre shut down. And demand is very high. I think demand will be over 2 Million Barrels a day. And thats on the high side. As you go forward, declines will happen and u. S. Production will go down. So im i feel comfortable with 70. You know ive got my money ive got my money where my mouth is. Are you long both oil and oil futures . Yes. All right. Youre doubling down boone. About a month ago i thought you were going to be im not im not long the nearby buy. Im long Fourth Quarter and out. Fourth quarter is not that far away boone. Whats going to change from now until three months from now . Were going to youre going to need the oil is whats going to happen. And, you know people are all concerned about Iranian Oil Coming on. And iranian oil, if they sign this agreement and i have said about this agreement that if you want a deal bad enough youll make a bad deal. So stand by on the iranian deal. It is going to be a bad deal. But as far as the oils concerned, iranian oil wont come into the market until next year. And when that happens, youre going to need the oil. Today youre producing 93 Million Barrels a day. Is what your Oil Production globally. You take United States 9plus opec 31 thats 40. Now taking 40 off of 93 leaves you 50 Million Barrels. That 50 Million Barrels is experiencing a 5 to 6 decline. So stand by that you say well iraq oil will come on. Well iraqs 44. Thats probably peaked now. You go back to the rest of the world. 50 Million Barrels which includes russia and others theyre only experiencing a 5 to 6 decline. Now were talking about 2 1 2 million, 3 Million Barrels more that youll need next year to replace a part of the 50 million. So youre going to need the oil. Boone, how you reading the take leaves on the talks with iran . Some say that the longer these talks are drawn out, the less likely a deal will happen and therefore the less likely the sanctions will be lift and that oil will reach the market i should say the oil will not reach the market. How are you sort of reading whats going on . Is. Well, im reading and i couldnt hear the question totally. But i think im going to answer what you wanted. Is that i see the iranian oil cuts comes on mid year next year. What level will it come on. It will come on closer to 200,000 barrels a day than it will 1 Million Barrels a day. I see people talking about 1 million. I dont even think thats prospective. Even if it is 1 million though, boone, 1 million is going to be just under 1 of global production. If we get the iran deal and we get the highend of the Global Supply from iran would that be enough to move the market . Youre talking move the market up or down . Down. Youre going you didnt hear what i said. Next year youre going to need i did hear what you said boone. Its called pushing back a little bit. Right . It is a million extra barrels in a market thats already oversupplied. Say we even just get 250,000 barrels a day from iran. The minimum perhaps of any deal amount. That is still 250,000 more than maybe the market needs right now. Is it not . Well, right now is not when youre going to get iranian oil. Iranian oil i said doesnt come on until 16. So youre not going to see any iranian oil. You know weve gone this far in the conversation, we havent even mentioned whats going on in china, boone. Are you assuming that the demand from china is going to remain the same despite whats going on in the chinese stock market . Some would argue that the next shoe will drop six months from now or a year from now when those lockups on stocks because the Chinese Government is saying you cannot sell stocks right now but six months down the line you can. The next shoe to drop is going to happen in six months when that expiration goes out. Okay. Are you willing to predict a bubble for china and the bubble has popped . No. Im saying what i am saying is, to you is even though we had a rally in china overnight, maybe the is yet to come and yet to be felt amongst the Chinese Consumer who will then pull back well the chinese stock market isnt that big. And when the government can say shut down 40 of the equities on the stock market in china, you know, now were trying to slow everything down and try to stabilize. And then they tell them now, okay, go ahead and start trading. Buy back your stock now. Well, thats another stabilizing factor. Im not frightened at this point. At this point. By whats going on in the Chinese Market. Chinese use about 11 Million Barrels a day. United states uses 18 Million Barrels a day. I dont im answering the question now. No, i dont think youre going to see demand go off for china. I think they will still their demand will remain stable at 11 Million Barrels a day. Boone, i want to get to your excellent op edz in in Time Magazine. Isis has gone after Oil Production companies and regions and refineries and may be largely funding their terror o by oil. Al qaedas kind of been relegated. You note in your oped that you believe al qaeda will make a play for Oil Production or at least try to block off oil delivery some time soon. Why do you say that . I mean theyre constantly im sure their strategy is come up with something that is going to mess up first the israelis and the United States. Thats who their target is first. Then the rest of the world comes next. So they would like to shut down straits of hormuz. Thats 17 Million Barrels a day coming through there. And the fifth fleet is protecting that. Let me tell you, al qaeda shutting down straits of hormuz theyd have to is something unusual that nobodys ever seen to trump the 5th fleet. And so they but did i answer the question . Well im just wondering. I say what if al qaeda which has been maybe a little bit relegated to isis shadow. You mention iraq does al qaeda have the ability in your mind to disrupt Global Oil Supply and thus price . Well Global Oil Supply disrupt by al qaeda . Likely not. Could they do a local play in iraq . Iraqs 4. 4 Million Barrels. I dont know exactly what it will be. If you notice al qaeda, isis all of these terrorists they dont blow up oil facilities. They dont knock oil off the line. Why is that . We said five years ago that if youre buying opec oil, some part of that money gets in the hands of the other sides. So were funding both sides of a war. They dont want to blow up the oil facilities. Look at libya. They got four wars going on in the same country there and nobody fools around with blowing up anything. They dont because they all have their theyre all nursing off of the oil in that country. The good guys bad guys and those that you dont even know what they are. They are all getting some of that. Now jim woolsey and i agreed on his point four years ago was that, when youre buying opec oil, watch out, because some part of the funding gets in the hands of the enemy. And thats exactly whats going on today. Nobody has blown up the oil field yet because they all have a stake in it. They all want the money. Boone pickens, a great interview, buddy. Nice interview, boone. Well see you soon. You take care all right . Okay. Are you hokies going to have a good team . I think the Virginia Tech hokies football squad will have a better team than everyone expects. Im at nine wins for my hokies this year boone. Maybe well have dinner on whoevers wrong. Well, ask me about the osu cowboys. I know what youre going to say. Perfect season. Thats what you say every year. Im talking about ten wins. Okay. Okay. Hey melissa, hows the harvard crimson looking in the football . I have no idea brian. You know that. Boone pickens, budsdy i hope you get to ten wins but well see you before then. Thanks very much boone. Take care. In conjunction with a washingtonbased energy group called security americas future energy, we are asking you to vote on four new ideas that could have a big impact on how america uses and conserves energy. We want you to get involved today. So go check out the ideas and vote cnbc. Com safe. Thats the organizations acronym. I got up at 3 00. Forgive me. From one global discussion to another the crisis in greece. After months of back and forth, the greek government finally expected to submit a list of detailed reforms aimed at kickstarting negotiations on a new bailout plan. Steve leisman traveling to germany with what the two of the worlds leading Central Banks, the e kr. Cb around the fed are now saying about greece. Reporter it is getting late here for that proposal to come in this time for leaders to consider it on sunday but i want to talk about the two Central Banks in very different approaches that are going on. One is the one behind me the European Central bank laying very low here. The reason is this they do not want to be what tips greece and the greece question either way, either towards default and leaving the eurozone or back in. They want it to be the decision of the politicians and the finance ministers. Only comments weve heard, there is an italian paper that quotes mario draghi i, the ecb president , saying he sees a greece solution as very difficult. The bundas Bank President saying greece could not necessarily be trusted but again saying this is a decision for the politicians. Over at the u. S. Federal reserve bank, what theyre essentially doing is saying you know what . We have the tail risk here of a greek exit covered. Some of the comments that we have let me read them that we have. John williams San Francisco fed president said a grexit creates an unlikely tail risk. Cant be ruled out but any real blow from it is unlikely. Charlie evans says it would delay a rate hike that he would support until the middle of 2016. Yesterday we reported those minutes saying that many fed members have concern about spillover but listen to what the fed governor said today about greece. We see very much improved liquidity management here. Double the Capital Buffers that we had going into the crisis. And for all those reasons, i believe we have more resilience. But of course we have to be monitoring those events very carefully. Reporter what we have here is a situation where fed members are making somewhat dovish comments about what will happen with rate hikes suggesting that if there is a big problem those rate hikes could be delayed and saying the u. S. Banking system as well as the european Banking System better prepare. All eyes by the way, tomorrow on fed chair janet yellen who will be speaking. Well be listening very closely to what she has to say about the impact of greece on potential Federal Reserve policy. Well talk more about that tissue in couple of moments actually. Well let you go steve. Breaking news now on ford. Lets get to phil lebeau. This is interesting and related in a sense to what weve been talking about when it comes to gas prices and crude oil prices. Ford making a decision regarding the production of small vehicles at its Michigan Assembly plant in wayne, michigan. Beginning in 2018 with the next generation of the ford focus and ford cmax. They are going to be moving production of those two smaller vehicles out of michigan. They havent said exactly where it will be but most likely you are looking at Vehicle Production moving overseas and they will be working with the uaw to discuss what future vehicles might move in to that assembly plant. That all gets back to the discussion about smaller vehicles, the cost of smaller vehicles. Keep in mind that cmax sales this year, down 16. 9 here in the u. S. Ford focus sales down 3. 2 . This is in a market where sales overall are up 4. 5 . Again, ford moving production of those two vehicles starting in 2018 out of michigan. Guys, back to you. Big blow to michigan especially the folks of wayne, michigan. Ford stock is down. 5 to 1 at the moment. To reiterate the news a big blow to michigan and the city of wayne. Cmax and focus production will going to leave the state of michigan and theyll likely head overseas. Thats cording to our phil lebeau. The Dow Jones Industrials are up 61 points. The s p is up eight. Were up. But those are our lows of the day. Much more on this, oil klein,china, and greece and everything in between when power lunch returns. Your moms got your back. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. The fed minutes that came out of yesterday show that the Federal Reserve is worried about greece. But really how much of an impact is greece on the fed. Let us bring in pimsteve and lindsey. We know the fed keeps telling us over and over again that it is data dependent on raising Interest Rates and if we need reminding, look at this. Die deata dependent. Depend on a wide range of data. Yet the fed also now mentions greece which at this point is more theoretical, it may not show up in u. S. Data. Has the fed backed itself in a corner with the greek shallissue . I dont think so. Fed officials have been very clear theyre watching the domestic economy the continued underperformance of the domestic economy, coupled with volatility overseas. Fed is not looking at the potential for a liftoff within a vacuum. Theyre definitely taking into account whats happening on the global stage and that could cause as they mentioned yesterday in the minutes potential contagion to the u. S. On which they have to monitor and that could propose a significant barriers or burdens to a nearterm rate increase. Tony did you get our sort of point there which is like greece is a major issue but it is not in the data. If the fed is worried, but they say theyre data dependent, how do they square those two seemingly conflicting ideas . Eryoure right. For a highly indebted world with such global interconnectivity, the fed cant rely on u. S. Data alone. It has to consider external events and also financial conditions. Note in the minutes of course all it says is there could be a change in financial conditions if there is no agreement and there might be possible spillovers if that happens. So it is a big what if, and of course that depends on what happens over the weekend which is highly uncertain. So the fed itself of course then is waiting. The fed of course is asking the question you see this in graina brainards comments today, is it really the responsibility of the fed to keep it all together. Yes, the fed has the greater toolkit. San francisco governor williams spoke to a bigger toolkit yesterday as well referring to the various tools the ecb has in place. One has to have confidence and it seems the fed does in terms of the European Central bank to keep it all together which is to say to smooth the deleveraging process which the fed itself has been doing for seven years. So it is highly confident, as it should be because itself the fed, has solved you could say, the u. S. Debt problem in the shortterm in terms of keeping it all together waiting for the fiscal authorities to act and to power up ahead growth but that will take time. Everything will take time and well be dependent on the data. Apparently. We have to leave it there. Down 5 one day, up 5 the next. 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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. Why pause the moment . Ask your doctor about cialis for daily use. For a free 30tablet trial go to cialis. Com what a difference a few hours makes. That big rally on the street evaporating right now with three major indices just off the session lows right now. The ntsasdaq, the s p and Dow Jones Industrials higher by just under. 5 . Off the highs. Bob pisani is down at nyse. There he a real skepticism about whats happening overnight in china. You had it it right on the head. We had a smooth open at the nyse after that trading disruption yesterday. Were keying off of greece an china. Weve been strong but drifting lower. It is hardly the basis for a rally. They just dont believe in greece and china. Strong volume throughout the day, a lot of trading going on but a lot off people dont believe whats going on in china. Solar stocks social media stocks Cyber Security stocks all started very strong. Typical indication of a strong day. Finally, e and p stocks a rally. We havent seen that in a while. Folks, it is time now for street talk. Every day we dig through research to find five of the most interesting analyst calls out there. Though we save a little more fast money at 5 00 p. M. Eastern time. Western union. Upgraded to a buy from neutral. They see as stable both consumer to consumer and business to business. Their target on wu 22. Nice lift for wu because there is real skepticism about whether Pricing Power will remain in their hands especially after the paypal zoom deal. Second stock here mobileeye. Price target hiked from 73 to 76. Shares now at the highest level since october. A lot of people are positive on mbly. Devon energy. The target 84. Thats about 50 up side from here. The stock is now down 30 over the past year so you have to it is not all bullish. Oppenheimer had some questions about the quality of 2015 saying that their weakness is being maxed by hedges. They actually downgraded the stock a month ago. Interesting push and pull by the Analyst Community here. A fourth stock, qunar. A travel site. Theyre paying off recent promotions. There could be potential for significant upside in hotel growth. It is a buy right here the price target 57. Perhaps one of the more oddly named companies out there, up 45 this year mobile revenue up a cool 400 . Actually brian, qunar means go where in chinese. It is incorporated in the cayman islands. The whole name is a little bit like the all right. Finally stock number five is your under the radar name chegg. An online textbook and learning company. Like renting textbooks, et cetera. It has a 16 target. Stock is at 8. Indont need a chegg textbook to tell me thats a double from here but note thats way higher than average target price by analysts that cover the name. You didnt need any textbooks textbooks, brian. Youre smart. I didnt know qunar, man. You dont. Speak chinese. We head live to the nymex for the close. Stay tuned. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare Insurance Company. Like all standardized Medicare Supplement insurance plans they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by unitedhealthcare Insurance Company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. O0 hello, everyone. Im sue herera and here is your cnbc news update this hour. Secretary of state john kerry signaling there is no rush to get a deal done with iran but the talks arent openended either. President obama made it very clear to me last night, you cant wait forever for the decision to be made. We know that. If the tough decisions dont get made, we are absolutely prepared to call an end to this process. The British Government is telling all british tourists to leave tunisia because another terrorist attack is likely. 38 tourists 30 of them british, were killed on june 26th when a gunman stormed a beach resort. A Pakistani Foreign ministerry person says talks between taliban government concluded with an agreement to meet again. It is an attempt to end more than 13 years of war in neighboring afghanistan. Back home the fda announcing restaurants are will now have until december 1st, 2016 to comply with the federal menu labeling rules. Thats one year beyond the original deadline. The rules mandate establishments post calorie information on their menus. A little bit of a respite there for all of us. Lets go to Jackie Deangelis at the nymex for oils close. 52. 78. Off of session highs is where crude oil closed. Still a good day, more than 2 gain. Traders saying they were buying the dip today. Also they are less concerned about china and greece as was the equity market but products seeing a big boost especially in gasoline prices. It is now time for trading nation because traders do trade better together. Let us look now at how to perhaps play the emerging markets. Rich ross stacey gilbert. Rich youre charting. Thats what you do. The eem and does the eem look aokay to you . Yeah. Brian, over the past six years emerging markets have done absolutely nothing but theres been one way to make money and ill show you how it is done. Look at a multiyear weekly. You see that well defined trading range ive alluded to. With resistance up at 45. We failed at several attempts. But down below, you see that critical support comes in around 36, 37. Weve tested and held there on seven occasions. Eight, if you want to count the current attempt. I think history repeats itself and this provides an excellent buying opportunity down here at the low end of the range which has provided the catalyst for powerful advances over the next six years. Yes, im a buyer of the emerging markets. Could be the ninth straight bounce in that sixyear period. Stacy stacy, from an options perspective, eem or otherwise, how do the emerging markets look to you . I think any wellbalanced portfolio is going to have international exposure. From the etf side it is very focused on developed markets this year but from an emerging market perspective i do like emerging markets. I think you have to have some of it in your portfolio. I like eem. I think thats where youll get that Broader Market exposure. 18 of eem has exposure to china. One of the big key points here is that the chinese exposure is for the h shares. Those are the ones that are less volatile. They have a better valuation so thats the exposure that we like in terms of having exposure within china. You asked about options specifically. What i will say about eem options, that implied volatility thats one of your larger components that goes into pricing options is trading at historic highs. It is around levels we saw during the taper tantrum. I prefer to have spreads in eem and to talk to richs point, you could consider selling the 45 call if hes saying it is going to trade within a range versus buying the 39 or 40 straight call to get that upside exspoe exposure. To buying upside calls unless you time that pop perfectly, youll be disappointed because your calls arent going to pay off yet you have the direction right. Id go with the spreads. There you go. Stacey gilbert, rich ross thank you. For more trading nation, head to trading nation. C dot cnbc. Com. Apple has been weaker all session long in terms of the Broader Markets but in the past few moments its hit session lows in just the past five minutes. Now down 2. 25 . Weve got an animal lesalyst from Deutsche Bank in a few minutes and bring you any developments as we have them. Greece meanwhile has until the end epof the day today. It is nearing the end of the day today in greece to present new detailed reforms. This is all part of an effort to secure a bailout from creditors, a threeyear deal. In the meantime the greek banks are closed and cash is running out. Michelle carusocabrera is live in athens with more. Michelle. Reporter thanks so much, brian. Im here on the balcony with special guest the founder of core capital here in athens. Hes a lawyer. Hes banker. Also a member of the young president S Organization with whom cnbc has a collaboration. Good to have you here. Thank you. Start were the whole issue of capital controls. Ive been reporting all day that they are strangling the economy. Do i exaggerate . I do not believe that you are exaggerate at all. Lets not forget that the heart of every countrys economy are the banks. The banks are closed so nothing can move. In other words, if im an importer, i cannot import anything because i cannot pay. If im an exporter i cannot export anything because im not getting paid. Because even if im getting paid, i cannot move thn money around. I cannot use this money to make payments. And of course if i am lets say, a greek abroad and i want to use my credit card that has been issued from a greek bank i cannot do that because my card is not accepted anymore. Wow. We are talking to people tonight who are so scared that greece is going to leave the euro. Do you have any optimism about this . Personally, today im moderately optimistic. I believe greece should and shall get an agreement. I believe that the greek government knows the magnitude of the problem totally by now. I believe that as you know certain changes have been made. Our new minister of finance seems to be on earth, and im very hopeful and i believe that we are going to submit proposals that are measurable and im really optimistic. I really want to be a greek and i really want to continue being a european. Thank you so much for being here on balcony with us tonight. Lets see how the night goes and what those proposals actually look like. Guys, back to you. Investors are bracing for a possible greek exit from the European Union. But that may be the least of the worlds problems. A former nato supreme allied commander will tell us why a soen had called grexit could spark a major instability militarily militarily. Plus watching apple. The stock down 2. 40, a 2 drop for apple. Dont you go anywhere. Seems like weve hit a road block. That reminds me. Anyone have occasional constipation, diarrhea. Gas, bloating . Yes one Phillips Colon Health probiotic cap each day helps defend against occasional digestive issues. With three types of good bacteria. Live the regular life. Phillips. [ male announcer ] legalzoom has helped start over 1 million businesses. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. We talk a lot about the economic fallout of a possible greek exit from the eurozone but what about the geopolitical and the military consequences . Joining us admiral james stvridas, author of the accidental admiral. He now serves in the Fletcher School at tufts. You wrote a Foreign Policy article that says greece leaving the eurozone could become a nightmare for both the eu and for nato. Explain why, sir. First of all, if the economy spirals down in the wake of being rejected from the eurozone, which i think is to be expected, greece wont be able to full fulfill its military commitments which include patrolling the mediterranean sea, surveillance. As you know 140,000 migrants came across those waters in the First Six Months of this year. In that slip stream could and probably will be al qaeda, islam iblg Islamic State and other terrorists. Secondly bases. Even if other nations want to step up and do that surveillance greek bases will not be in a very functional state if the Greek Economy continues to spiral down. Third and most importantly, if the greeks are rejected by the European Union effectively thats how theyll see it the pressure with greece to step out of nato. That pushes them toward russia. Thats a geopolitical shift in the balkans and southeastern europe that we really want to avoid. What many people may not realize about greece because it is a small economy. But as a percentage of military spending of gdp, it is second in nato only to the United States. How strategic is greece . Greece is a very important strategic player because of geography. They sit on a very hot corner if you will to take a baseball analogy, from the lavante across the Islamic State, the flow of migrants across that region. Greece is kind of the anchor in the southeast corner of the alliance. Very concerning to even think about a grexit not only from the euro but from the European Union and nato. I with ant to switch gears admiral quickly and ask about iran. What are your expectations for a possible iran deal at the end of the day . Does a nuclear deal get done . Id say it is a 1 in 3 chance, at best of a deal. I believe that the fact that its stum plingbling in the final hours presages the difficulty it will have in getting across the breakers in congress and, frankly, in the larger court of world opinion. There are just too many loopholes in the discussion starting with the verification regime. I think it is very concerning. Id say less than even probably 1 in 3, at best. Admiral, thanks you very much for joining us on cnbc. You bet, thanks. Another crazy session overnight in china. Markets were up 5 . The last banning stock sales. What are the top china funds here in the u. S. To doing . Apple and intel moving lower along with the broader averages which are off session lows right now. Apple rebounding off the session lows but still down by 2 . Stay tuned. L. In fact, the number of mris has increased by ten percent a year. And a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. Because its so challenging a Research Project is teaching ibm watson to see. In the future, it could help clinicians spot key patterns quickly and precisely. Ibm watson is working to make healthcare smarter every day. 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 . Its bone a rough week for the china stock market a rough month. The shenzhen taking big hits. Are others stepping into buy . Martin schulz, about 5 invested in china and rated four stars on morningstar. Good to see you again. Its been a while. We are happy to have you on. Are you stepping in and buying not hong kong hang seng but domestic china shares . Good to speak with you again. Obviously the big story is greece and china. From our perspective, we own china through the eight shares through hong kong where we get our chinese exposure. You are right. Theres been a bubble. As weve also seen and some call it thea put. Our perspective is this bubble you will continue to see volatility near term but longer term well continue to see a resumption of the upward trend in the equity markets in china. I want to call our attention to some headlines. Greek proposals to be sent within the next hour. The greek deadline was tonight. We will perhaps get a proposal on the table within the next hour. Im sure your head is going crazy with greece and china. We dont really call things bubbles. You are a fund manager. Its rare you hear Fund Managers say a market they are invested in is a bubble. Why would you say that . Thats what the popular press likes to call it. Thats us. We are the popular press. Exactly. So at the end of the day, we did obviously see a massive upturn in the markets. That was primarily because of the margin loans out there as of the middle of june there were close to 2. 3 trillion margin loans. Authorities are focused on minimizing that and allowing that market. They want the currency to become convertible. The margin the amount of margin out there diminished because people have gone margin calls. They are forced to liquidate. Right now you can say 5 move was great, but half the market is frozen. In six months six months is going to be the equivalent of a lockup expiration when suddenly companies are able to sell yet. A year out once again. What makes you so confident that this stock market thing is not going to be a longerlasting event . Again, they are going through a growing pain like we had to set up situations similar to what they are doing after the lehman crisis or wall street in the 1920s. A situation where they are focused on getting this economic teenager, if you will to get into the open. Again, its an economy thats developing. They are trying to reform the financial sector. They are trying to get the statesupported organizations be more competitive. Thats going to take some time. It doesnt happen overnight. Think about it this way. Just last year china went over the 50 line in urbanization. Its still growing. Until that point it will have volatility. Weve got to leave it there. Thank you for joining us. Thank you. Lets take another look at apple. App is down this afternoon. Apple is one that keeps bouncing back and forth who will be the worst performer in the dow. Dow is up. Apple down 1. 9 . Apple is now down about five times the dow this week and is perhaps ready to break below its 200day moving average. Something it has not done since 2013. One apple analyst saying sales perhaps nearing a peak. Well get her call next. It took Serena Williams years to master the two handed backhand. But only one shot to master the chase mobile app. Technology designed for you. So you can easily master the way you bank. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Shares of apple trading down nearly 6 . Deutsche bank out with a note saying apple iphone sales will slow. Planning a Record Number of new iphones asking suppliers to ramp up production by year end. Director and Senior Analyst at Deutsche Bank is with us. How do we reconcile these two things . Your forecast and what apple is doing with production . Production will be big. Apple is a big supplier of phones. When you look at the growth rates next year apple has grown 40 this year probably based on our estimates with the new phones. Going to be very difficult for them to see that type of growth off a 40 base considering how big they are. How big of an impact in your view will china be in a potential slowdown there . We saw intraday we were highlighting before an intraday drop in apple stock which is surprising for a company of this size and some of the chatter of the Trading Floor has been the world is crowded long as people are getting scared about china. They are selling what they can and that would be apple. Investors have been excited about the growth with the new phone and the success of iphone 6 has been driven in part by china. China has been a big part of the growth. About 50 of the growth has come from the Chinese Markets. They have china mobile for this launch as opposed to the launch they didnt have the entire time. As china is slowing, it will probably be an issue because that is where apple has opportunity to gain share. At what point do you say ive got to take estimates down . Ive got to change my forecast for apple because of whats going on over there . We still have a little more legs on the iphone 6 rollout. As we move into the second half of the year and i think my numbers are more conservative than the street. Thats where you get into the question of how successful will the 6s be when they roll it out in september and december . Some estimates are higher. Those estimates, september, december. Later this year will be critical. Thanks so much. Thank you. Breaking news here. A monster fundraising number by jeb bush campaign. The super pac affiliate reporteding over 103 million raised. That is a big number. By comparison, Hillary Clintons campaign is expected to raise about 45 million. We havent heard an official tally from the Hillary Clinton for president super pac yet. It is expected to be about 1 10 of what jeb bush raised with 103 million for the Jeb Bush Super pac. Tonight on fast money at 5 00 digging onto that apple story. Also Gilead Science up 20 this year. There is a shopping list. Meg terrell will join us with names. Biotech, apple watch. Should be a great show as always. Thank you. Get your power lunch to go. But closing bell starts right now. We welcome you to closing bell for this thursday. Im bill griffeth. Kelly evans will be along shortly. Those of you on twitter know where shes been. Well talk about that. What a difference a day can make. At this time yesterday, we were wondering when the New York Stock Exchange would reopen for trading. So far today, things have been going smoothly and we are looking to see if the close will be a smooth one, as well. We are going to talk about it with
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