Transcripts For CNBC Power Lunch 20240622

The street. Hopes on greece fueling another big up day, not to mention another up day in china overnight. Bob pisani is at the nyse. Right now theyre holding, 21 advancing to declining stocks. The s p 500, really all the gains were frankly overnight around 3 00 when we got word that a deal was in the making. At that time s p futures moved 15 points. We have held most of the gains from the open. Tech Consumer Discretionary materials and industry good day for techs. Facebook set a new high. Buvlg bunch of tech stocks hitting 52 week highs. The greek etf everybody watches was positive and moved into negative territory. Largely the belief that it is going to be a tough sell for tsipras and this deal is a long long way from being done. More on that in a moment. Metals and mining have been strong. This is a separate story because china rallying in the last several doors has put a floor under these stocks. The steel stocks all the mining stocks are up again today. Whats not participating is some of the Interest Rate sensitive groups. We had a little bit of move up in the 10year yield. Not far from their highs for the year. Reits and utilities have been lagging. Other than that entertainment stocks. New highs and and nice assortment of groups here. Netflix and comcast, our Parent Company, time warner and disney all sitting at 52week highs. Robert thank you very much. Over to greece now. We seem to have an agreement but not a deal done just yet. Our senior economics reporter Steve Leisman is live in berlin the German Parliament votes later this week though. First we go to chief International Correspondent Michelle Carusocabrera in athens. I guess one question to get on the table is tsipras. How long is he going to be in this job . Reporter he has amassed an incredible amount of power despite what from the outside looks like a complete reversealreversal. It is widely expected that these bills that he needs to pass in order to get the money are going to pass actually quite easily. Hes going to have to change some members of the cabinet because hell lose whats called the parliamentary majority. Typical of the way parliaments work here in europe. But other than that hes still immensely popular and from the people we have a he spoken with hes actually not being criticized. They actually blame germany and other people for the fact that theyve had to sign a deal. He is back here in greece. Local media reports he actually got some sleep. Next thing is hes got to sell the deal to the public hes got to do a vote. Hes got to pass some of the measures within the next two days. Hes promised the european creditors that he will get a vote in parliament by wednesday. Like i told you, political analysts say actually it is going to be easily done because the opposition parties very much want a deal because they very much want to stay in the euro. Hes got to do this first before he gets even close to getting one red cent because theres been such a destruction of trust between the greeks and the creditors. Listen to what the dutch finance minister said just a few minutes ago during a News Conference in brussels. Over the course of the last months, and in particular surrounding the referendum, a lot of that trust was lost and it has to be rebuilt. It still has to be rebuilt. I think for me personally it has always been the aim to maintain, keep greece inside the eurozone. But it had to be done in a credible way. He said that there wasnt [ inl aud ][ inaudiblement . ] i think we got the nut of what we needed to hear. Steve leisman, seems that germany got what it wanted. What about german chancellor Angela Merkel . Did she maybe overplay her hand here . Reporter certainly one of the questions. Im always loud mandy. As you know. Not necessarily clear. Three emotions wafting through the continent today and in germany. Relief that greece exiting the eurozone looks to have been avoided and a bankruptcy or default by the country avoided. Concern that maybe greece wont be able to live up to those terms. Of course criticism in part of germany perhaps for imposing very, very harsh restrictions on greece remaining in the eurozone. In fact that criticism finding life on a social media where the this is a coup being used about 375,000 times on twitter. Trended overnight in the United States. Greece germany and of course in france. Here in germany some of the harsher criticism coming from the green party a european parliamentary member from germany saying chancellor merkel finance minister schaeble and gabriel havent burned up the trust in 25. 5 days that was built up over 25 years. But we talked to some people on the street in berlin. In germany there was a lot in the past going and after the war with being so greece are not guilty to have done a war. We pay, we pay, we pay, and they do nothing. The greeks dont do enough to solve the situation. So what we understand now is that on friday the German Parliament is set to me and consider a greek bailout. It is largely thought to pass. But as you know mandy, the key right now is here is do the greeks themselves on wednesday adopt these measures in parliament. Thank you very much steve and also michelle. Were also waiting for a deal or no deal interest vienna where Foreign Ministers from the p 5 plus 1 are meeting. Irans foreign minister just said no deal. Tonight there is a med night deadline tonight for the Nuclear Talks but that deadline is being pushed forward. Checking on wti and brent, earlier on today wti was moving lower. Right now it is slightly in positive territory at 52. 80. In the back half of power lunch. So in less than 90 minutes time from now well be getting the oil close as well. Brent is moving slightly lower at 58. 54. Weve been talking about the first two of those potential deals and where exactly they stand. The third one, the deal or no deal, involves puerto rico. Officials from puerto rico meeting with creditors two hours from now. Tough month for puerto rican bonds. The one over my shoulder. You can see whats been happening to its price. Tanking in the last several weeks. Alexandra sedanalexandra alexandra, what do we expect to hear if anything . First of all, if anybody is so inclined they are duly going to be Live Streaming the meeting on the Government Development banks website. As i said on friday this is a preliminary meeting but one thing that investors are going to be looking for is some clarity coming from the government. You have over 300 investors who are going to be attending todays meeting. Interestingly enough there are a group of about 35 hedge funds are are not i a tending todays meeting. Why they wouldnt want to get Additional Information im not quite sure but some of the major hedge funds will be attending. Again you have the governor last month say we cant pay the debt and i think theyre looking for additional clarity on exactly what the government does intend to do or offer in terms of a restructuring plan. Kate turning to you. Alexandra mentioned that lots of big investors are there. Whos meeting is it . Whos there and whos conspicuously not, so far as you know . Well tyler, as alexandra said we are expecting a bigs attendance here. Capacity is about 350. I understand theyre just about there. Bear in mind that puerto rican did set very widely held against u. S. Municipal bond funds. Youll get traditional muni bondholders. According to what ive read Oppenheimer Funds a huge holder. You would expect them to have perhaps multiple people in attendance and watching the webcast as well in the office. In terms of hedge funds that are not going, im not aware of any specific names. Ive talked to a few hedge funds. This is a place, puerto rico that is where hedge funds have been quite active and looking for reform saying they believe in the longterm value of the economy. Theyve tried to come up with some plans for restructuring but puerto rico has not been fafrl toward favorable toward them. If people are not attending or paying possible attention, im not sure it is a boycott situation but maybe alexandra is hearing differently. What do we expect to hear and on what timeline . One of the things i want to point out, somebody will be speaking as a former imf official, annkrueger, a coauthor talking about whats led puerto rico to where it is today and talks about some of the things that could be factors in terms of restructuring. It is actually a fascinating report if anybody wants to read all 50 pages or so. Talks about things like the fact that there are more teachers today, although there are less students than there were. So some of the things that would be necessary in terms of a restructuring. She will be speaking. What exactly she will do in terms of talking about actually restructuring and what the government will be doing and what and, kate you may know what role city will be playing or if at this point it will just be hosting the meeting. That im not quite sure. Kate tyler, if i may. Please. Just to clarify that citigroup is the authorized broker dealer on behalf of the puerto rican government. That means, among other things they are offering to buy back some of the publicly traded debt associated with the Government Development bank the gdb. Thats just 1 of about 16 different issuers on the puerto rican island. But considered to be one of the weaker issuers. They also have a bond payment due on august 1st of a little under 200 million. So citis going to try to maybe do a debt swap or repurchase some of that debt. Im sure theyll engage in other transactions down the road and other issuers think about their alternatives to perhaps ease the credit arrangements they are now in. Im sorry, we have to leave it there, alexandra. Well see you again soon im sure at least i hope. Kate, the same to you. Thanks very much. Check out netflix. It is up more than 100 this year. A number of analysts are raising their price target again. Just see howthy high they expect netflix to go from here. Rapper 50 cent filing for bankruptcy. How do you blow that. Kind of money . More power in two minutes time. Ing 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 . [dad]i wear a dozen different hats doing small gigs,side gigs. Gig gigs. Quickbooks selfemployed helps me get ready for tax time. To separate expenses,i just swipe. Its one hat i dont mind wearing. [passenger] i work for me. And so does quickbooks. It estimates my taxes,so i know how much stays in my pocket. And thats how i own it. [announcer]stay in the flow with quickbooks selfemployed. Start your free,thirtyday trial today at joinselfemployeddotcom. Recapping the big headlines. Walmart holding a massive sale on wednesday in response to amazons prime day rolling back prices on more than 2,000 products with no membership needed. Our Parent Company comcast testing a new 15 a Month Streaming Service allowing internet customers to watch live tv from about a dozen networks including hbo, without a cable subscription. Speaking of streaming, netflix hitting new highs today, up by 5 . 714. Goldman raising its price target to 780 from 620. The stock more than doubling however, already this year ty. One million americans will be in severe storm areas by days end today. Air traffic also likely to be impacted. Just the way this cattle is being impacted. This is the scene today in dodge county wisconsin where heavy rains have brought flooding. Heres the weather channels jennifer delgado. Were already seeing those storms firing up on the radar right now. They started off this morning. Well time the storm threat out for you. We have a lot of people that are potentially going to be impacted by there. 47 Million People in the path of strong storms. This is noon time moving right through areas including central parts of indiana, indianapolis, detroit we are talking to you. That first wave moves through and then it heads into areas like kentucky as well as even into tennessee. Theres a chance we could be looking at some tornadoes developing today. We have a tore conof 4. In addition we have strong winds. We also cant forget about the threat of lightning. These storms have been firing up like crazy. Later on tonight it moves into the carolinas, then well see things fizzle out once it gets into the mountains and well see some of that Energy Falling apart. Well look at this pattern for tomorrow as well. Everything riding right along that ridge. Today heres your threat. Well include areas like chicago, down to louisville. Chicago you started off rough but as we show you the area including parts of illinois as well as indiana, thats where well see the greatest threat for the potential for some of those tornadoes out there. A big chunk in illinois but were not including you, chicago. Then we look at South Central indiana, a tor con today of 3. There are more than 300 big cap stocks in correction territory. Peels have the stocks feeling the most pain in this market ahead. Plus coming up a swimwear startup switching up your bottom line. Our suits can be worn up to ten different ways bridging the gap between fashion and function. Will the panel dive in . It is incredibly hard to protect your product from competitors in the fashion space. Stay tuned to see if they are in or out. 40 of the streetlights in detroit, at one point, did not work. You had some blocks and you had major thoroughfares and corridors that were just totally pitch black. Those things had to change. We wanted to restore our lighting system in the city. You can have the greatest dreams in the world, but unless you can finance those dreams, it doesnt happen. At the time that the bankruptcy filing was done, the Public Lighting Authority had a hard time of finding a bank. Citi did not run away from the table like some other bankers did. Citi had the strength to help us go to the credit markets and raise the money. Its a brighter day in detroit. People can see better when theyre out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. And folks are making investments and the community is moving forward. 40 of the lights were out, but theyre not out for long. Theyre coming back. 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. Its 1 21 eastern time. Lets give you a market check. It is kind of a 1 day. The dow up about 1 at 17,934. Russell up about 1 at 1,263. S p 500 up about. 85 at 2,094. The nasdaq pacing it all, up 1. 25 . Time for power pitch where today a 25yearold entrepreneur switching up the bottom line in the swimsuit business but does she have what it takes to be the next big thing . Lets find out. Imthe b side is the first transitional swimwear brand. Our suits can be worn up to ten different ways troying support for an active and versatile lifestyle bridging the gap between fashion and function. I started this line because i was frustrated with my options. I had to buy two per season one for show one for play. Then there was the issue of quality, value fit and overall function. It is time for that to change and the b side is the answer. With one move of our revolutional straps you can go from simply strapless and tanning to completely supportive and surfing. I know it is hard to believe that these suits fit varying body types but just ask our 100 customers who have yet to return a b suit. Weve built the bsuit. Com in under 80. Were not only developing better swimwear, we are developing a better way to buy it. You just saw the pitch for today but lets meet the final. Early stage investor deborah jackson. Ceo and founder of plum alley. An ecommerce and fundraising platform that focuses on women entrepreneurs. The also with is alicia syrett. And from san francisco, eurie kim, for instance pal with Forerunner Ventures a femalerun vc firm. Hello, everybody. Deborah, would you like to throw out the first question to if i haveny . Tiffany . Sure. Tiffany, women care a lot about how they look on their baiting suit. How do you see that people will online. You give us your measurements, tell us how you like it to fit, loose or site and when you like leisure to active. Well facilitate that to tell you not only what style but how to wear it. It is incredibly hard to protect your patent in the designer space. It is so easy for them to replicate replicate. First we did noncompete agreements and exclusive right agreements that i could make sure i had standing amounts of protection. What is it particularly about your design that stands you apart . It is our straps which is the emblem that it is a coated nylon spandex blend. Its never been made before. This is something that i created on the fabric as well as the construction. It is coated in pu so it offers this great functional thats great for moving the swimsuit around in different ways and also to tie together. You mentioned in your pitch that you were frustrated with having to buy two bikinis a season. At the same time you kind of want your consumers to buy more than one thing for you. How will you encourage repeat purchases. We have to differentiate ourselves with different styles that go along with the trends in the market. Doing so we are creating a one piece highrise bottom that can be adjusted so this is the idea that you can have more options from different pieces and we hope to expand in that day. Your target demographic is millennial woman and you yourself are a millennial woman. What do you think that perspective gives you in terms of an advantage versus some of the big players out there . This is about women. This is about finding something that works with our lifestyle. Were so versatile in everything that we do. Especially me and my pain points of being an athlete that just wanted to have some fashion and function in your swimwear. In the pictures here behind us they are all millennials and very skinny with very full busts. Do you cater to the ladies who might need more support in this department . I created something that can go from tanning and surfing and everything in between. A lot of women were gifted this suit with bigger busts and they had an incredible experience with how they fit because i was able to create something that was full support. We need to know if the panel is in or out. Women with busy so for them to actually go online and put in their measurements and see if it would work for them i think most women dont have that behavior. They actually want to get into the dressing room and try it on and look in the back mirror and check it out before they purchase. For that were not in. What you really have to do is look at the entrepreneur. In tiffany i see someone whos a great spokesperson. She has industry experience and shes located her company in the fashion tech hub, that being new york city. But most importantly, shes a millennial woman whos focused exactly on her target demographic of Millennial Women so im going to take a chance on her and go in. I love the idea of being able to wear the b suit in multiple ways and be really flexible but i really think it is going to be hard to build a big brand out of this niche product so im out. Okay. We have one in two outs. Tiffany, whats your reaction . Im so thankful for the feedback. We cant wait to make a difference on the swimwear market. It is such a big opportunity for us. Fantastic. Thank you very much. Thank you very much to tiffany of the b side and also to our panel. That is todays power pitch. What about you . Are you in or out on the b suit . Go to myself as well on twitter. To read more about this startup and past power pitches cheg outck out our website, powerlunch. Cnbc. Com. Chinas stock market rallying for a Third Straight session. Weve got five stocks if youre betting on a china rebound. President ial candidate Hillary Clinton now lining her economic blame an taking aim at the sharing economy. Is it hurting growth in jobs . Lets take a look at sectors it driving todays rally. 9 out of 10 higher. Consumer discretionary, one of the big leaders. My businesses are definitely my life. My passion. This is what i was placed on the planet for. Im truly a master of multitasking. Yeah yeah. Well get it done. That momentum is constantly going. Thats what im here for. Having that same process applied to my banking is amazing. Chase technology is moving at the pace that the rest of the world is moving, allowing my momentum to kind of keep driving. Technology designed for your business. So you can easily master the way you bank. You focus on making great burgers, or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. 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 . Hello, everyone. Im sue herera. Here is your cnbc news update for this hour. The Iranian Foreign minister says new cleear neglecter new clear negotiations will not be finished today. The white house says genuine progress has been made and the talks will continue. In a video posted on facebook, president obama says all of the prisoners would have already served their time if they had been convicted under laws today. The president has issued a total of 89 commutations the vast majority to nonviolent drug offenders. North korea confirming that its defense chief was indeed purged for distoilloyalty to kim jongun. In may they said the defense chief was killed by antiaircraft fire for talking back to kim and complaining about his policies. And tomorrow morning, nasas unplanned spacecraft new horizons will make the closest flyby of pluto ever. The craft has traveled 3 billion miles since being launched 9 1 2 years ago. It will zip past the icy planet at more than 30,000 miles an hour taking details measurements. Thats the cnbc news update at this hour. I feel a little sorry for pluto. I thought it will been demoted from planet status. Well it was demoted but because it is one of the furthest out it is one of the most interesting planets. At least thats whats nasas saying. That we can learn an awful lot. I love stuff like that. I like the spacecraft there, it had ralph and alice as parts of it labeled there. Indeed. Gold prices closing right now. Lets look at where they sit or stand or whatever you like. Down by 2. 40 at 1,155 an ounce. Over the past week basically a small move down by 1 . Silver copper platinum and palladium. Silver is negative but just by 3 cents. The others slightly slightly higher. Lets go to the bond market en issantelli at the cme. Yields have moved up since last wednesday. They really have. But when you consider the distance theyve traveled and how they ended up settling and especially how they act theeded pregreece, its been a little disappointing if youre looking for boat loads of movement and volatility. Theres curve implications. An intraday of 5s. Still a couple of basis points higher in yield on the day. The further down the curve you move, the more yields are at or below unchanged, meaning theres more buying and you see it on the 30year which is actually one basis point in the green in terms of lower yield than it settled on friday. We call that flattening. Theres been several basis points flattening in an environment thats been mostly defined last month and a half by steepening. Flattening could be more fed or it j just be flight to safety for what may be regarding the outcome of greece. Bundz, in their own backyard as high as 97, down as low as 84. Thats where it settled. Euro versus dollar getting very close to 110. That could be technically significant. Rick santelli reporting. Lets look at the markets right now. Basically a 1 move on the day. 3 00 p. M. Eastern we got word of after possible greek deal. Nuts futures moved up 15 points. Especially 1 . The s p. That move to the upside has been sideways ever since. Weve got a couple of Exchange Traded funds that have got pretty heaven volume including some of the financials. The financial etf, iyf ahead of the banks for bank of america and jpmorgan. Health care is also getting a lot of activity today. Metals and mining have been doing very well. Theyve had very heavy volume really since china starting turning around and bottoming. Those stocks very dependent on how china does. Elsewhere, small group of new highs. Not a lot of them. Mohawk industries. Lennar was at a new high earlier. Its come into negative territory now. Oreilly automatic Oreilly Automotive a new high. Gold stocks down rather notably. That trend has been going on for more than a month now as the air has been coming out of the gold stocks on any earlier concerns about what was going on in greece. Bob thank you. Uptown to nasdaq and check in with bertha coombs. Seeing plenty of new highs here particularly media and streaming names. Netflix ahead of its earnings getting its price target up. The the street was looking for 2,500 new skububscribers. Amazon the streaming giant. Apple as it has launched its streaming music today near the highs of the day. Apple a big reason why were seeing strength in the large cap tier but also the biotechs. The usual suspects. A year ago janet yellen said their al their valuations were stretched. That index is trading at 83 times earnings. Nonetheless, youve got new highs today including biomarin which has doubled. Gentlemen, thank you both for joining us today. Burns, why do you say that the market here is not really probably pricing in whats happening in greece . Well the markets today based on the current action clearly like what they saw but if you really just read the headlines, the headlines say that Problem Solved and the fact of the matter is you really dig beneath that, theres still a long way to go. Weve move the passed the catastrophic risk rf greek exit and moved on to the latest buzzword is grimbo or greece in bim low. Just a continuation of kicking the can down the road. The problem with that is the only thing that woosas really agreed upon were conditions that have to be met just to start talks over the next week. You think the rally is premature, burns . I would say conditions that have to be met are really a far, far more rigid and stricter than those that were voted down by the greek voters just a week ago. It is probably going to not going to be quite as easy a battle as what some of the pundits are saying. If someone saidky buy your car for 10,000 and you said definitively no they said how about 8,000. I mean it is certainly one to be an embarrassment to tsipras government. What about you . Do you feel the market is reacting appropriately . I think that they are. While there are lots of issues to be sorted out, i think as a concept everyone has agreed that greece is staying in. So it is grim rather than grimbo. So from that standpoint i think as far as the Economic Significance of greece is concerned, it is nothing. It is really an issue of can greece cause a contagion. I think what the markets are reacting to is the fact that it is unlikely that they will be a contagion in the market. We have to leave it there, unfortunately. But thank you very much for joining us. You can also go to powerlunch. Cnbc. Com to see how they are playing china. Theyve got some very interesting thoughts on the markets there. Greece and i had its creditors have reached a deal but it is not a done deal yesterday. So what is next . Lets get back to athens where our chief International Correspondent Michelle Carusocabrera joins us once again. Hi michelle. Reporter hey, mandy. The next stipep, the greek Prime Minister whos back in athens has to convince the parliament to pass a key number of reforms before the creditors will even consider giving greece any mono money. How easy is that going to be . Joining us the former deputy finance minister of greece a few administrations go. Also a former citigroup employee in new york for a long time. Good to have you here. Good to be here. Can he get these reforms passed the next 48 hours . Yes, le get them pass tdz byed aboutby over a twothirds majority. Hell have more than 200 votes out of 300. He may have more than 230 votes out of 300. So it is a clear majority but he will have some leakages from his own party coalition. Americans find this a little confusing. How is it possible that he can tell the voters that within 24 hours he is going to have a better deal, absolutely got a worse deal comes back and can still remain in power when it seems hes gone back on every promise he makes to them. This is a country where mythology was born. Hes a very good and convincing charmer. People like him. People trust that if this is what he did, this is what he had to do. There was probably no other way. So they will excuse him from all his past mistakes and its good for the country. We, on the conservative side on the reformist side are supporting him in this effort. Were not voting for him but were supporting wholeheartedly this effort to get the page turned and move greece to a new era. We know the country needs to be reformed. We are appreciative of the fact that mrs. Merkel and mr. Hollande and others really put out a strong fight in our favor. But we need to change and we will clang. Hange. Throughout it the rest of europe, in germany, they say theyll never get this done. In greece people say, watch, this could be a nixonchina moment pmt moment. This could be clinton passing welfare reform and nafta. I think absolutely the country is ready for a change. There will be a lot of kivging and screaming especially from the radical left wings. Even communists are a bit milder in the criticism. They havent been that vociferous in the past few weeks but the citizens of the left governing party is probably going to split away from mr. Tsipras. What about the vested interest . The accountants, doctors, engineers, everybody else and their mother whos got vested interest to protect and will be at first hurt by this . A lot of legislation is going to be rammed in to them. They wont have much of a chance to actually have time to go piecemeal and resist. Things are going to happen very very fast. The country needs to be reformed. Theres no reason anymore for anybody to have privilege in a country thats quasi sunk and very dysfunctional. I think when the Prime Minister who was a hard core leftist says enough is enough we need to change and all the conservative Reformist Party say we will support you, i think we will move in the right direction. We need some breathing space sometimes and we dont have any breathing space. But things will move and we need to settle the issue of bank reform and the issue of deposits. It would be a big mistake if greek depositors who trusted system especially middle class europe who really be screwed up by having their deposits haircuted by 10 , 20 , 30 . Theres absolutely no liquidity in the system. Theres no single country in greece that can borrow. Thank you so much for joining us. Really appreciate it. Guys, the issue of the banks are front and center. Part of the deal is recapitalizing the banks. But hes got to do all of these reforms first. Theyve got to pass a lot of hurdles before they can get to that point where depositors can feel safe. Fascinating animalalogy to nixon and china, collin and welfare reform that only someone like tsipras could make these kinds of moves. Best line of the week dont forget that greece is the country that invented mythology. Chinas stock Market Making quite a comeback after plummeting recently. And there are a number of u. S. Efiting from the rebound. We look over the past ten years whenever there are stock market gains in china and these five u. S. Stocks could be poised for even more gains ahead. All that next on power lunch. Chinas stock market rallying big time for a Third Straight session. Dominic chu has the top five stocks. Top five stocks that you should be looking at if youre betting on a china rebound. Our friends over at cnbc pro took a look at the number of times weve seen the Chinese Markets rebound over the last ten years and figured out which u. S. Stocks have benefited in the past from this. This is all about historical precedent. This is not indicating that i have some crystal ball and i know the future. If you look at ishares ftse, china 25 largecap stocks in china that are trading in hong kong, this fef t yearetf is up 3 . Its rebounded sharply. So our friends over at a data and analytics partner looked at some of the times weve seen this kind of move in the past. We looked at this etf and we figured out how many times theres been a fiveday rally where its pushed the stock or that index up about 10 or more. Its happened 26 times over the last decade and the u. S. Stocks that rallied in tenandem with this particular move are what we looked at. Among the names, five of them this time around shares of apple. Apple has gone up an average of 7 over the fiveday span when that etf has gone up by 10 or more. When those stocks rise apples one of those stocks that goes along with it. There is a correlation. Again, not a direct relationship relationship. First solar shares have gained an average of 9 during that span as we look at fiveday gains. Textron also up 9 . Goodyear rubber up 10 . Citigroup as well up by 10 . Here are five of the stocks in various sectors that we look at. Again these are correlations. It is not necessarily that one leads to the other but in the past these have been some historical patterns that have held. Well see if it holds this time around. If it does these might be might be some of the stocks that go up. If people want to learn more about there, they can go to the story on cnbc pro. Thanks very much for that. For more on how to play chinas rebound jim oberwei four stars on morningstar. Jim, you have just returned from china. Several cities there, including shanghai. What did you see on the ground . What is the sense about the economy and the level of dislocation or panic in the especially the shanghai market . Yeah. So i think you have is to look at it from the perspective of the business and the perspective of the Retail Investor. In terms of businesses, conditions are definitely slow but thats not new news. I think thats why they built in the stock prices. I think everybody understands that at this stage. From the Retail Investor shockingly there was a little bit of panic. I guess whats surprising is usually in the u. S. When you have those types of panics it is because the market is down a lot. In terms of the ashares in china, theyre really not. They just came down off of huge runups very quickly and a lot of people were levered up with margin in a way they hadnt been before. Do you think that the ashares the shanghai shares which are relatively more difficult for american investors to get into except in limited ways, do they have farther to fall and more volatility in front of them as compared with say the hshares in hong kong . Absolutely. Its really stemming from the starting point on valuations. You had such a massive runup in hshare value uses. You didnt have the same degree in h shares. Even though they did well they are still trading at the lower end of valuations. The same thing is true for benchmarks and indices on hshares. Ashares, on the other hand, still trade a premium relative to the historical having aations alal valuations and it wouldnt surprise me to see them drift over the course of the next few months. These times of stress of major moves are where people if theyre of a mind and stomach can make a lot of money. I would assume youd advice them if they want to jump in here to lean towards the hshares in hong kong. Do you have some specific names . Sure. Yeah. I think the hshares in hong kong or also some of the u. S. Adrs look okay as well. Ikang health care trades with china. They have 77 of the top 100 Chinese Companies as customers and 2. 6 million individual lives. Theyre growing 25 , 30 , trading at under 20 times earnings. That would be one. Kang on nasdaq. Another one you might look at is shenzo international. Their business isnt really levered to china and to the u. S. And a lesser degree europe. They basically make mechanics tiles for Companies Like adidas then export them back to the u. S. We are seeing 15 growth in roughly a pe of 18 times earnings. They are the largest manufacturers in china. So those types of companies i think when they get beaten down for reasons that dont even really correlate with china i think it makes a lot of sense to divide positions there. You also like car, inc. In hong kong and tarena international. But you mentioned those two. Jim, we thank you for being with us. All four are great. Thanks a lot for the opportunity. The greek agreement has no doubt stunned most people in athens but what do greekamericans think about the greek debt crisis . Brian sullivan went out to a store and met out with some of them over the weekend. You might be surprised by what they had to say. Also as we head out, take a look at the dow 30 stocks. By the way, folks, with the gain in the dow today it is back in the black along with the other major indices for 2015. So far the dow is currently up by 172 points and theres only a couple of shares there as you can see. United health and merck are currently in the red. All others moving higher microsoft the bigger gainer. Kids are expensive. So im always looking to get more for my money. Thats why i switched from uverse to xfinity. They have the most free on demand tv shows and movies on all my devices. Its perfect for me because my kids are costing me a fortune. Im going to cabo [ music plays ] dont settle for uverse. Xfinity is perfect for people who want more entertainment for their money. The midnight deadline on the Nuclear Talks is set for tonight but talks are expected to continue. Officials from puerto rico are meeting in new york in just over an hour. And president ial candidate Hillary Clinton laying out her economic plan and calling out the sharing economy as a potential factor of Holding Back Wage growth. There is a downside to naming yourself after money particularly if you end up filing for bankruptcy. That story is straight ahead. 50 cent out of cents. You focus on making great burgers, or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. 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Call now to request your free decision guide. O0 the artist 50 cent was reportedly worth 270 million at one time. Today the rapper filed for bankruptcy. Julia boorstin live in l. A. Tyler, thats right. Quite a fall from grace for Curtis James Jackson iii, aka 50 cent, filing for chapter 11 bankruptcy protection in connecticut. Jackson reporting both assets and debts in a range of 10 million to 15 million in court findings. This comes after 507 cent was cent was ordered friday to pay 5 million who he posted a sex tape of online. This is not the first multimillion dollar judgment against jackson. Last fall jackson was ordered to pay 17 million to manufacturers sleek audio after a dispute over headphones that jackson had said he would promote. And his boxing promotion company, sms pro moepgssmotions filed for chapter 11 this past may. But jackson made about 100 million by selling vitamin water in 2007. He owns a majority stake in sms audio, competitor to beats which he launched in 2011. At the end of last year he closed a 78 million deal with highend Underwear Company frigo revolution wear. He acts in the boxing movie southpaw. Of course he has his rap career and an ael and an album scheduled to drop in november. I have reached out to his attorney and pr team but they havent gotten back to me yet. That pretty much does it for the first hour. But a whole lot more is coming up. Including a trip to see what greekamericans think about whats going on in greece. It is 2 00 p. M. On wall street. 11 00 a. M. In anaheim, california. Stocks are higher all on the hopes of a greek debt deegal. Stocks and greece are both your top stories today. Right now the dow is up 1 75 points. 27 of the dow 30 are higher. Two stocks disney and nike not only hitting 52week highs but new alltime highs. If you own those congratulations. Right now bob pisani is on the floor of the notion. Ew york stock exchange. Is today really all about greece . I wish i could say it wasnt but it is. I tell you how you know. 3 00 a. M. This morning the s p futures shot up 15 points on word that there was a greek deal. Thats essentially where we are right now. Right at the open we didnt quite gap up at the open but we moved right up to where we are. This is largely because of the greek deal. There are a lot of other things coming today, this week, including the earnings situation. But weve had a fairly broad rally, 21 advancing to declining stocks. We are off of the highs but not far. Tech stocks Consumer Discretionary, materials and industrial have all had a very nice day and frankly are still sit something right near their highs. The big talk is about whats going to happen on earnings. Of course well see the financials first. Well have jpmorgan tomorrow wells fargo tomorrow bank of america on wednesday and citi group, goldman on thursday. The hope is one, better loan growth. And two, an expansion of the net interest margin. Well have more on that tomorrow. Bob thank you very much. Let us stay on the stock story. Dig in a little deeper to one of the bigger of the big cap indexes. If you just looked apartment the russell 1000 index from the outside for over a month, youd say, eh, not terrible blgnot great, down fractionally. Nearly the same performance as the s p 500. But looks can be deceiving. Dom chu back with us on why the russell 1000 may be the lesser of the sum of its parts. The interesting part, our data team at cnbc looked at that broader Large Company cap russell 1000 index. The etf iwb. Out of the 1,000 stocks in that in index, over half of them over 500 of them are actually in correction territory or worse. That is as measured the pullbacks from the recent highs that theyve seen over the course of the past year. Weve picked out a handful of them just to give you an idea of some of the names youll definitely know but maybe didnt know that they were already in correction or perhaps even bear market territory. Take a look first at whats happening here with priceline. A nice pop today, up 2 . That takes them a little bit out of that correction territory but still, they were down 10 plus over the course of their highs that we saw back last summer. Priceline, one of those shares. Another one to look at is one thats so very much deeply into correction territory and even into bear markets, and thats caterpillar. Heavy machinery. Those shares since last june are down 21 . Caterpillar showing signs of weakness as well in the large cap space. One thats really seen a huge pullback on the Consumer Staples side of things is Keurig Green Mountain single serve coffee. Those shares have lost about half of their value during that time span. Just a sampling of some of the many large cap stocks that are in that correction or even bear market territory phase. Dom, thank you. For more on the markets and perhaps how to protect your portfolio, let us bring in Jonathan Gottlieb from rbc Capital Markets. When you were watching dom do that piece you leendzaned over and whispered, ive done research on this exact phenomena and it doesnt worry you. How come . The question isnt how many stocks are 10 below normal. The question is what is it normally. Theres normally Something Like 50 or more stocks below that level. In fact right now its less than it would normally be. Yeah. But hold on. I want to defend doms piece here a little bit because i dont think it is necessarily the volume of stocks. When you look at a caterpillar, a dow component and supposedly one of the leading mining and commitment companies as sort of a leading indicator on its own, and thats down that much is that a worrying sign for that one name . There is is a different point you are making is whats happening to the most economically sensitive stocks. If you look at areas like industrials, most people think that when the banks are doing well, the industrials are doing well, they drag the market along with it. What youre seeing is the industrials are having a harder time and yet it is many of the less Cyclical Companies that are actually doing better. Areas Like Health Care or software that are less dependent on the economy. Thats been the way weve seen the last couple of years and i think it is what were going to see going forward. I saw something and thought this must be a typo this was some sort sf editorial error and i said no its true. You wrote that you believed that slower secular Economic Growth so a slowdown will be better for stock market returns. I said jonathan i think there is a mistake in your piece. You said no no thats why i feel that way. If you look on average, an Economic Cycle lasts for about seven years. If were in here 6 of a 7year cycle, it is time to start putting on the brakes and rotating out of stocks. But if the economy is slower this may be year 6 in a 12year cycle. And if thats the case then have you potentially years to go before you really this market runs out of gas. I think that thats what we are. Putting it differently the tortoise is still alive. Were putting it differently the hair may die but the tortoise is still running. Or somebody says were in inning number seven but maybe the baseball games doesnt have nine innings, maybe it has 15. I think maybe thats where we. Your target s p is more than 11 higher. Apple trading higher right now but still not recovering all of last weeks losses. Two big headlines to hit on apple this hour. First, a note out saying apple commanded 92 of smartphone industry profits. Apple sells less than 20 ever all smartphones. Second, u. S. Government regulators are looking into antitrust claims about apples streaming music service. Brian white, managing director at Cantor Fitzgerald brian was talking about correction protection. As apple enters into earnings season, is it a surprise that itss been hit so hard about things like all these concerns plus china . Yeah i think it is china, i think it is apple watch, a sloppy tech tape. I think all of those things have cut into play. The message we put out in our note today is really dont lose your way during this super cycle, stay the course. Theres a lot out there thats very exciting. Iphone has a multiyear cycle going on here. I think apple watch had a component issue so it got off to a slow start. Chinas stock market probably takes a little bit of the bling iphone buys but wont i think damage the trajectory there which is very very positive for apple. Do you have a good sense of who is buying the iphone in china . Softgen had a note out today upgrading apple to a buy. Onethird of apple iphone sales in the Third Quarter came from china. Are those the same people who might be hit hardest by the stock market collapse . I think definitely in the big cities. I think you are starting to see it in even some second and thirdtier cities. I think at first it was the wealthy people in beijing, shanghai and shenzhen and i think know it is broadening out against klein. Apple had a 8 market share a year ago in china. This last quarter it was just under 15. Theyre number one in china right now. At what point do you ratchet down my estimates or maybe take a look at my projections of sales in china specifically . Again, im not concerned. Youre not at all. Im not. I think we are in a very early stage of this iphone cycle. 20 of the installed base have jaap grade upgrade. This is a multiyear event. Why . A bigger iphone. It is also the fact that china mobile is now in full force with apple and the 4g is building out. Thanks for stopping by brian. Appreciate it. Thats clearly when they cut the interview off, thats what they call a hard wrap in television. Heres whats ahead for the rest of the hour. More on the greek deal thats no doubt, stunned most people in athens. Well get a live report from greece. Also, the view from america. We met with some greekamericans in queens over the weekend. Weve got their thoughts on the whole debt drama. You might be surprised about what many of them had to say. And later on Morgan Stanley out of the list of nine stocks that could see a big breakout. Those names coming with power lunch returns. If you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. Hurry, before this opportunity cools off. Share your summer moments in your mercedesbenz with us. It is a deal on paper for the greek drama perhaps not offense just yet. 7 european leaders agreeing to give the nearbankrupt nation up to 96 billion in aid, all in return for more strict austerity measures. The Global Markets rallying on the news. Remember, it is not over yet. It is now up to the Greek Parliament to approve the harsh terms. And note this the greek etf ticker grek down today. Though yields on the 2year bonds in greece are down 25 , theyre still high. Michelle carusocabrera is live in athens. Youve been there for a while. Michelle listen. It looks like we got a deal but theres still a lot of work to be done on wednesday. Yeah huge amount. Theyll have to vote in the parliament, the building you see behind me to pass measures almost immediately before the creditor nations will even consider sitting down and negotiating a full legal written document for a bailout. In the meantime we do have a protest we should point out going on in front of the parliament. Same group that protested last night. These are novoters. Novoters who really meant no. In fact, really wanted at one point greece to leave the euro. They said they would be fine with that. They are not typical though. The vast majority of greeks still very much want to stay in the euro although theyre upset with the details of the deal. They are relieved that they are actually going to stay in the euro. At least for now. Like you said it is tough. Prime minister is backing greece. Hes got to sell this to the parliament by all political considerations, it x loois going to be an easy deal to get through parliament because many of the opposition parties want a deal to stay in the euro. Theyve got to move quickly because in order to reopen the banks they have to prove to the ecb that they are committed and they need a fresh pile of cash to inject to the banks before they can reopen. That could be weeks, maybe even a month away. Theres still a lot of hurdles. Theres deep distrust that the greeks are going to be able to achieve it. Most of the headlines lead us to believe that tsipras lost everything, that he came out of this with a swing and a miss. Is there any way to say that tsipras and the greek people and the Greek Parliament did get something . Anything . Besides the 96 billion . Yeah. Yes. They did get consideration for an improvement on their debt they wont get their debt forgiven, but if they pass their first review and get the money, they will also get consideration for extending their maturities and lowering their Interest Rates. Thats one thing. At the moment over the weekend, they were told were going to put language in the documents because if you dont do this you take a fiveyear break from the euro. That was removed as well. And believe it or not, tsipras has turned out to be a winner. Hes still incredibly popular. Hes amassed a lot of power and everybody tells me that if they had an election tomorrow, he would still win. All right, michelle. Sit tight. Because while this certainly may not be athens, greece yesterday we went to the heavily greekamerican neighborhood of astoria, queens. We sat down with some greekamericans and we asked them what they thought of the whole debt drama. Check it out. I got to say, ive never been here. Thank you. You were born in greece. Youve been here for a long time. What do you think of the greek crisis . Well i think they dont care enough. Who doesnt care . The politics. Who do you think is to blame ultimately . The people. It is the people who asked the politicians to be there. So i wonder if somewhere the citizens just are masochists . Kind of want this . Or are too scared . Even as a greekamerican its all about greece. Of course. It is all about greece. Why is that . It was about time for the greek government and the greek people in general to take a step to step up and make the right decisions for our future our countrys future. They made a deal what they should do and they only care about having big cars having big lives, enjoy themselves. I honestly did not expect to come out here and speak with greekamericans and have hear them blame greeks. I didnt think so. Stii blame the politics. People are good. Is its the whole system. The whole system could have been this route, you know . Like how to avoid taxes or how to avoid this, avoid that. My brotherinlaw works for banking. In greece. Yes. What do they say . Oh they are mortified. Hes been probably aging faster than he should have these past years. Whats happening now is basically theres like this feeling of revolt but they dont know where to revolt to. Can you blame the leaders or do you blame the people for voting in . I think if you always have someone to bail you out, are you ever going to learn your lesson in maybe greece needs this. I think greece deserves a chance but everything thats happened up until now has not worked. Im hoping for the best. Im just hoping. Michelle it was very surprising. Again, i thought i was going to hear sort of mixed. Some people may put it on greece others blaming germany or merkel or europe. These are i want people to be very clear. We didnt seek out peoples opinions and then put them on the air. I literally wandered around saying, hey, would you like to have lunch and lets talk about the issue . Thats what happened. I was very surprised. Do you ever get that where you are as well, people quietly whispering to you, you know michelle, we might be to blame here a little bit in. Sometimes. It doesnt happen as often as what you saw there in the story. I put a couple of those sound bites on air but theyre pretty rare, which is we have made big mistakes and we need to fix them ourselves. I think what you experienced, brian, is typical across a lot of countries. We get frustrated immigrants from all over the world who where they came from is dysfunctional and they come to the United States because they can make it there in a way that they cant do it back home whether thats in greece in france, in parts of the middle east. Et cetera. So i think it is almost emblematic of a bigger story about the United States. You know dino the guy that we talked to the manager of the restaurant, he was a former professional basketball player in greece. I said are you going youre making money here. Are you going to take it back and go back to greece . He said everybody kind of talks that way when they first come here. Then everybody stays in america. They dont go back. All right all right, michelle. Great stuff. By the way, not everybody that we did speak with yesterday felt the exact same about the greek situation. Cnbc met up with a greekamerican family who said you know, dont just blame the greeks. Part of the problem is very simple there arent any jobs to be found and you can see them right there watching a greek newscast. Up next one stock getting a double upgrade today. And later on with all the greece talk, dont forget about puerto ricos problems. A leading expert on the countrys debt situation coming right up. Announcer the cnbc realtime Exchange Market snapshot is sponsored by the interactive brokers. All right. Welcome back time now for street talk. Getting Analyst Recommendations on stocks you need to know about every single day. You ready . Always ready. First stock, groupon. Analysts cite the recent stock pullback left it 30 flat on the earnings call. They also like the cash position and the sales from the stake of the Company Ticket monster. Still 40 up side. You got to wonder if part of this is a Short Covering rally. 70 of shares outstanding are held short according to thompson. The next stock im watching fitbit. A lot of analysts are watching today. Animal lis believe the Growth Potential is already priced in here. Business according to the animal lis in land grab mode and he believes over time users wont turn so much because they want to be able to measure their data against historical data. 12 analysts cover the name. The stocks done well. The average target price just under 46. Were getting close to the analyst target. Third stock, edwards lifesciences. Did not get one but two upgrades today. Northland securities upgrading to an outperform with a 170 target. Its partner study will be positive. The target boosted to 185 on ew, thats 25 up side from here. There was a lot of bullishness around transcat teheter aortic valve. The company could grow 25 each year for 2020. For the next five years. Aerovironment. It got a hold rating with a 30 price target. Analysts say longterm Growth Opportunities for commercial drones and charging products was positive but the higher spending environment creates uncertainty. It has the buzzword drone. The trailing screen is 207. Finally, your under the radar name of the day, pbf energy ticker. 2. 6 billion market cap. It is an oil refiner based in the oil capital of the world. They keep a buy on all the refiners but citi analysts say the market underappreciates are the position here in the northeast as well as a recent deal in june to buy a refinery outnew orleans. The stock pays a 3. 5 dividend yield. Since june the stock has been on a tear up almost 19 . All right. There you go. Speaking of oil, the final trades are set to cross for the session. There you go. Crude down a bit. Where will it close . Stick around. 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 . Hello, everyone. Im sue herera. Here is your cnbc news update this hour. Democratic president ial candidate Hillary Clinton offering up ideas for improving the economy in a speech in new york city. She talked about income\s inee\s and ways to reduce that gap. The measure of or success must be how much incomes rise for hard working families. Not just for successful ceos and money managers. And not just some arbitrary growth target untethered to peoples lives and livelihoods. The fcc announced a settlement in an Insider Trading scheme regarding notes passed in Grand Central terminal in new york city. Someone from brooklyn received the tip from a Law Firm Clerk and relaid them to a stockbroker at the train station. The notes were then eaten. People in wisconsin cleaning up after a thunderstorm ripped through the city earlier this morning. That very strong storm brought very heavy rains, flooding in local residential areas and on farms as well. The president and ceo of japanese gamemaker nintendo has died. He passed away on saturday after fighting cancer of the bile ducts. He underwent surgery last year and was briefly able to resume his position but he has passed away at the age of 55. Thats your cnbc news update this hour. For many of us of a certain age, myself especially the guy during that time i never knew who he was but i knew every machine he built and he changed video games. Absolutely. Absolutely. He was a real hero to a lot of kids, a lot off young people. He really was. The new president has a lot to live up to i think. They do. I will speak to a generation thats around my age. If i say two words theyll know what im talking about. Pac mobile. Thank you. Now to Jackie Deangelis for the oil close. Looks like well close 60. Cents lower. Just about over 52. Still 1 off of the session lows. Obviously traders tentatively watching the situation with the iran Nuclear Talks. The latest that we have is iran media reporting its officials are saying there will not be a deal by tonight. You also the dollar today that was stronger pushing prices down as well. Opec saying that its demand forecast for its products are not going to be as robust as it was thinking. Back to the supply demand situation. But watching these prices just over 52. Gas prices around the country are on a decline but in california theyre spishgking. Jane wells is in los angeles with more. Reporter gas prices in california are closing in on 5 a gallon again. Here is 4. 95. In some places it has topped 5 a gallon. This isnt even over yet, theyre telling us. Prices, on average, on friday were 3nt 6 3. 66 a gallon theyre now 4. 08 a gallon, though i cant find it that cheap anywhere. Thats an 11cent change in one weekend and we expect to see them go higher this week. Whats the deal . Nobodys sending their oil to california. It is not just worth it on the forward prices forward pricing. There are refinery issues to make californias special blend of gas and exxonmobil refinery is still recovering from a february explosion. Stock prices have tripled from their lows last winter. When will prices start to come down . There are only two ships right now bringing oil. It takes about three weeks to get through the refining process and these high prices will encourage others to begin shipping their oil back to california. We should start to see prices come down anywhere between five days and five weeks. But in five months he says prices in california will still be higher than the National Average but about 1 lower a gallon than they are now. Back to you. Yikes. Jane wells. Take a look at this america. California is certainly the outlier. They are, on average, 30 cents more per gallon higher than the next most expensive state which is alaska. Youve got hawaii and nevada rounding out the most expensive states for gasoline. On the other side of the pump the cheapest states to buy a gallon of gas, alabama, mississippi and south carolina, though i can personally say i paid less than those numbers in new jersey a couple of days ago. Refineries in general like lower oil prices. They have done well. Valero stocks up 35 . Marathon up nearly 30 in the past year and western refining up about 25 just year to date. Irans foreign minister saying no deal today despite another deadline set for tonight. Despite the latest missed deadline, talks will continue. The head of global commodity strategy at rbc strategy, always appreciate your insight. Do you expect an Iranian Nuclear deal which would include exports of oil around the world to eventually get done . I feel like it is ground hog day. If you read the headlines every morning it seems imminent. Were into a year of overtime in the iran talks. The Obama Administration will push hard to get this done by the summer. Sanctions, access for inspectors. I think it is a not tailwind scenario that this thing potentially blows up. There is a chance that a deal that does not get done that nothing happens. I think it is more likely a deal gets done but look at the red line laid out by the Supreme Leader a couple weeks ago. Theyre entirely incompatible with what the Obama Administration says was going to be an agreement. Somebodys going to have to move off their position to get a deal done. How do you read the tea leaves in terms of talks . The longer it is drawn out, is it better for oil prices because less gets on to the market . Absolutely. The longer this gets drag out, we are pushing out the timeline for the return of those barrels. It will be 68 months postdeal in terms of modifying the facilities before those barrels come back. Iranians say it will come back right away. Theres no way the eu and Obama Administration is going to sign on to a deal that has those barrels flowing right after it is signed. Even if they flow it is material. Some say it is as high as a Million Barrels a day. You say lower. Yes. Say 500,000 barrels a day. In a year from now it is like a 92 million barrel a day market. Talking about. 8 . But this is already a market thats dramatically oversupplied. Even one barrel one barrel too many . I think thats a problem in the market right now. If youre oversupplied by 1. 5 Million Barrels, adding additional 500,000 iranian barrels doesnt make your balances particularly pretty. You are going to have to see a producer roll in terms of production to pull prices higher, we believe. Bottom line do oil prices deserve to be at 52. 50 . The problem right now is we are just oversupplied. The saudis keep saying demand is going to pick up but they keep pump rg ating at record levels. Somebody has to pull back to bring price practices significantly higher. Its not us. 9. 6 Million Barrels a day, baby keep it going thank you. Appreciate that. It is time now trading nation. Traders do trade better together. Today lets talk about coffee stocks. Dunkin brands and starbucks both hitting new highs today. Which of those two would be a better buy if you had to pick just one. Todd technically what stock looks better . Technically, starbucks looks better. I think from a taste point of view it is no contest. Starbucks is much better than dunkin doe nutsz. Well leave that aside. The stock has held in extremely well. A strong stock within the outperforming Consumer Discretionary sector. That highlighted area in orange is the june selloff in the nasdaq where with starbucks just maintained a firm bid. Ive been trading this stock for the long side i continue to be long. Weve broken out of that range from june that again saw the nasdaq around broader markets lower. Well test it around the 58 mark. Looks like they digested the price increases quite well. Got it. Digest it. Heard it. I wont acknowledge it. Dave, moving on to a stock perspective. Fundamentally what with your analysts prefer . Starbucks or dunkin . I absolutely agree. I think starbucks is a better pick long term. This is a consensus long a consensus buy and hold stock. I know it feels expensive around 30 times but the peak in this multiple is roughly 35 times and we think it can get there. Look it is a very different model. Starbucks is predicated on samestore sales where dunkin is predicated more on Opening New Stores from more of a franchise based model. I look at starbucks and say this is a company thats doing really well. Management has a ton of credibility especially after laying off their fiveyear growth plan. Heres a stock again from a longterm perspective i think can work out well and i think is a better choice versus dungeon. Which is interesting because dunkin dunkins got a lot of growth. Dunkin is not big on the west coast. Thats where theyre looking to go but you still say starbucks fundamentally and technically. Dave, todd thank you both very much. Reminder collection out more trading nation. We do two additional segments every single day. Go to tradingnation. Cnbc. Com. Representatives from the government of puerto rico are meeting with their creditors in new york this afternoon trying to restructure puerto ricos debt. Welcome back to power lunch. Im kate kelly in manhattan standing in front of the citigroup building at 399 park. Right behind me hundreds of people are gathered to hear from puerto rican officials about the state of their 72 billion overall debt load and what they intend to do about it. In attendance today, bond insurers creditors, some hedge funds, many people are invested in puerto rican debt in some form and they want details from members of the Governors Working Group who are trying to establish a restructuring or some other plan from meeting their debt load. Meeting gets under way in just a few minutes. Well bring you updates as it goes. Andrew gadlin you specialize in puerto rico. Andrew, greece has been getting all the attention. But i have a feeling once the greek situation has moved away americans will start looking to puerto rico and realize this is a major issue. How does this play out . Well right now the government is probably pushing for a combination of a couple factors. Certainly Debt Maturity extension, probably some Debt Maturity and principle extension before paying interest and possibly haircuts as well. If youre a creditor to puerto rico they are. U. S. Municipal bond funds that have puerto rican debt in them. There are towns and cities in america where the treasure who are cio has bought puerto rican debt. Furif youre a creditor what are your Better Options . Earn isly extension would be a more amenable haircut is the last thing you want. Absolutely. Absolutely. It is clear that right now there is at at g. O. Level, meaning the general fund of puerto rico there is a Million Dollars of debt service. Then you throw in other quasi governmental entities it can add up. Extension does kind of make sense in this context. Bottom line is there a way the american taxpayer mom and pop in iowa will be liable for any puerto rican debt obligations . Congress has made clear there is no appetite for a bailout. Andrew if the worst Case Scenario in your views happens, thats a haircut, will that have ripple effects in the Municipal Bond market . Could we be seeing the effects felt on other municipalities around the company with stocks they may own . Theres concern certainly with illinois which is also having some funding issues particularly visa see its pension. But this issue seems fairly contained for now. Melissas point is very good one, as always andrew which is this. People may not care about puerto rican debt but this he might care if they live in chicago. Do you think that puerto rico maybe as important as it is to itself and to certain parts of the bond market is going to be a bigger litmus test for chicago and perhaps other places . Theres certainly a fear that that could be the case. To the extent that theyre able to jam through huge cuts to creditors, it raises the issues for illinois and other issuers, do we want to do the same thing. Is this going to be a multiyear is that is our expectation. Puerto rico will be in the headlines for a while. Many years to come. Andrew good to meet you. Thanks for coming in. Melissa. 11 of the big Financial Firms report earnings this week. Including jpmorgan and wells fargo tomorrow. Well tell you where you can make money as the big banks report in. Plus nine stocks that may be set to take off by the end of the summer. Straight ahead on power lunch. This summer, challenge your preconceptions and experience a cadillac for yourself. The 2015 cadillac srx. Lease this from around 339 per month, or purchase with 0 apr financing. You focus on making great burgers, or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. I like your place. Oh, thank you, make yourself at home ill be right back. Hm. Shes got x1. Alright. Huh, hm, ohh. Monster . She seemed so nice at dinner. Im back ahh uhh. Whatcha doing . Ohh, just. Watchin law order. Awww, youre nervous. Thats so cute. Call and upgrade to get x1 today. We promised you stock ideas in the show. Since we like to keep our promises here on cnbc, here you go. Morgan stanley out with a list of nine stocks that their analysts believe that one or more positive catalysts that could, and should drive the price higher by the end of the summer. Get a pen, pencil whatever because here they are. Amazon. Animalalysts say the current doesnt appropriately price in their ecommerce business. Other names, biogen carlisle group, canada based detour gold msci Rockwell Automation bank of america where Morgan Stanley believes expense management and higher Interest Rates will ultimately drive that stock higher. Nine names they see a possible catalyst for in the next two months. Morgan stanley also had three names they thought would have a negative for now, lets stay on the buggish side and speak with a guy who owns one of those Morgan Stanley names. You own bank of america. I would presume you agree with Morgan Stanleys thesis. We like them over the next three to five years. The biggest difference between us and Morgan Stanley is im glad they think theyll do well. We make no efforts to make predictions like that. Heres the situation. The United States is just about to have its largest Population Group group, the millennials engage the banking system. They saved money and have yet to borrow it. The history of the stock market is you anticipate that. We have not yet seen these banks anticipate a dramatically better economy. That is the thing that would cause bank of america to do super well if they make a lot of auto loans to the millennials. Is the headline risk for bank of america, because the countrywide deal is gone on a macro level . We are contrarians and we like that risk staying intact. The best performing stock the last 50 years is philip morris. They were sued and regulated and vilified constantly for those 50 years. We want businesses that should be liked. Keep your trading costs down to a minimum. A big week for bank earnings. Any other names out there you like . Maybe mid cap or something . We stick to the big ones. We think the moat has widened dramatically. The share of deposits and car loans will go to Jpmorgan Bank of america and wells fargo. When the news or regulatory or political environment is negative, but your moat is widening, that lays the ground fork to be a good long other term holding. As you know and our smart viewers and listeners know the biggest banks now control more assets and capital than before the financial crisis. Correct. Thank you very much. Appreciate it. Chinese markets continue to rebound the shanghai composite breaking the 4,000 mark since july 2nd. Pulled back a bit since. Theyve got a long way to go before they recover. What is china doing to beat the bear . 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. Here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Chinas equity market has been nothing but a roller coaster ride with some drawing comparisons to the collapse of 2000 or the dow crash in 1929 despite rallying big time for a Third Straight session. Is china in a bubble or boom . Lets go to dee. We have so many analysts on particularly who Cover Companies that feed into the chinese economy, apple, semiconductor analysts. They are not concerned about the impact of the collapse of the chinese stock market because stocks are held by so few people even though most of the investing activity is done by Retail Investors. How do you look at it in terms of the impact on chinese consumption . We think, well i guess theres two aspects when you think about it. We were in the middle of last week, i would probably be more concerned saying the impact on consumption could be a little bit larger than what im sitting here right now and that could feed into the real economy which is the economy already slowing down. After three consecutive sessions of stock market going up the consensus will be the worst over in the chinese stock market and volatility still remains. Now we can see valuation become compelling to us. Are you concerned that maybe the worst is not over because so Many Companies were required to buy under government duress effectively and required to hold those stocks for a certain amount of time . This is a lockup expiration. When that expiration expires, whether it be six months or a year down the line there could be another huge wave of selling . There were two aspects if you think about this. First the impact of this Government Intervention to the market as a whole. This is definitely a setback to the empire reform. This could delay the inclusion in the future and stepback for liberalizing the Capital Market and internationalization. But on the other hand lets look at the Chinese Market the large cap index versus Small Cap Index. Talking about valuation bubble. We are looking at Small Cap Index which is trading at 80 times forward earning which is a level not sustainable by any means. If we are looking at the shanghai composite of Large Capital index forward pe was only at 18 times. Right now has come down to 14 1 2 times. That looks to us as compelling. Di thank you for joining us. It is the high of the day for the three major indexes. We have the Dow Jones Industrial average up nicely. We are seeing a big rally there. Bob pisani talked about it being on greece. Its a beautiful monday so lets be negative. The worst performing stock in the s p 500 is joy global. I bring that up thats not the right one. Worst performing today or to date . This month. Demand is falling in china and undercut by cheaper chinese Mining Equipment company makers. Thats an interesting one after that discussion. Well see. What is on your show . Comcast. New high for our Parent Company. Unveiling a streaming service. Will it attract new customers or will it cannibalize their business . Ill look forward to listening to it on the radio on my drive home. Thank you. See you at 5 00. Welcome to the closing bell. Im kelly evans at the new york stock exchange. That would make me bill griffeth. A deal in greece they have. Its not done by any means. Stocks are rallying on this pending agreement between greece and its european competitors. Well talk about what could potentially derail this deal. As Energy Prices fall what other companies could be making a move in this