The very latest. A lot of action there as anticipated. And a Health Care Proposal from republican senator ted cruz is gaining apparently some traction on capitol hill well have details on his amendment, proposed amendment and reaction from the ceo of mt. Sinai hospital lets get to our jon fortt, shall we, beginning with some big job cuts over at microsoft jon is in san francisco. Jon . Reporter yeah, kelly, microsoft set to cut thousands of jobs as it focuses its efforts on the cloud, reorganizes its sales operation around that. Its going to be less than 10 of its overall sales force of just under 50,000 people, but cant get a lot more specific than that. Also, some corporate functions connected to sales now, most of these jobs are going to be overseas more than 75 of them. This reorganization, think of it in terms of a different way to approach selling cloud to the enterprise, to finance, to health care. Lots of different specific Industries Microsoft trying to have subject Matter Experts who really know these industries go in and have a simpler sales process more tailored to that industrys specific needs that an effort to keep the cloud sales going momentumwise and amazon has been out in front as far as the cloud trend goes. Microsoft is known as the number two. They, of course, want to close that gap guys shares lower today about threequarters of 1 jon, thank you right now for now our jon fortt. Wed chat with jon but breaking news out of germany eamon javers is pretty much there on site and can give us a better view of whats going on eamon . Reporter yeah, bill, you can probably hear the helicopters overhead and the sirens behind me here. Things have gotten a little bit tense here in hamburg. The protests have taken a little bit of an ugly tone. I want to turn over here see if you can show the folks whats going on right here weve got some protesters down the hill and behind where im located here, and you can see here that some of the medics are treating some of the injured protesters at least one person here appears to have been overcome by some kind of gas or at least possibly a head wound. We saw hundreds of police amassed in formation behind us protesters marching on the spree along the river front behind me. Then all at once the police in a group of about 500 or so, the police put up a big cheer and charged forward and pushed those protests out of the way, pushed them down the block here behind us we saw at least one or two people behind me throwing bottles and things its been relatively calm in this area though right where we are right here we do see a large group of Police Officers here staging just up the hill from where the more intense parts of the protest are which are just down from where we are. So things getting a little bit ugly h. Not yet dark here in hamburg so people havent really gotten into the full swing of things we imagine that well get a little bit worse here once it gets dark. Back over to you. Amazingly light for 9 00 p. M. Youve seen this, bill, over and over again. They are just Getting Started at this point, and its still well be checking back with eamon to get an update on all of this coming up in a little while, but it is often unclear exactly what what they are protesting at any given moment. Eamon, do you have any sense of when this is supposed to swell . Was tonight the big night or with all the Media Attention that it could perhaps grow yet reporter no. They have protests scheduled for today, tomorrow and saturday so folks here tell me they are bracing for several days of this police are moving into position behind us going this way and starting to clear the intersection which is to my left just here. We do expect that the police will have been planning for this for a while. They knew this was coming. There was talk of 100,000 protesters here in hamburg today and through the next couple of days, so this is something that the police have been preparing for for a while, but as you can see, weve got some of the protesters have their own sort of medical teams with them who are tending to some of the people who have been wounded here already, and like we say its not even dark yet, so this could be an ugly scene once it gets dark. A lot of people Walking Around here drinking beer, smoking marijuana and as all of that ramps up it could get a lot worse before it gets better, kelly. We were discussing this earlier on power lunch. The wisdom of holding a g20 meeting in that part ofgermany i mean, in hamburg that apparently is a an area that the protesters, you know, are a lot of them are there anyway, and it was like you were having it in their own backyard to hold the g20 meeting there any discussion about that in germany right now . Reporter yeah, absolutely. Well, weve been talking to many so of the locals here in hamburg and they say this area just behind me and down by the river is the traditional headquarters of the Anarchist Movement in the area and a lot of locals tell us this is probably a mistake to put this g20 event as close to that group as it is now today. On the other hand, the police have known this was coming for a while and have been preparing. Yesterday things were very peaceful here in hamburg a large protest, a couple of guys right here saying hello were making friends here and having a Little International discourse, so that was the vibe last night, too. Very friendly and very peaceful. A lot of dance music, technodeejatechno deejays. The whole message was antiglobalists and now that President Trump embraces some of that, what is the actual message of the protesters . Is it pro globalists now reporter let me talk, now, okay let me talk, bud. All right were going to let eamon deal with this. The general message here is anticapitalist. Theres been a lot of anticapitalist sentiment among the crowd here, and ultimately theres a lot of antitrump sentiment here as well i mean, a lot of the message here is about donald trump personally, and a lot is about capitalism and globalization a big theme as well so a lot of anger towards all of those fronts here, but not necessarily a unified message here, but definitely a unified protest vibe here. Unified resistance. I know we want to let you go. I can only imagine what youre dealing with behind the scenes there, but just set the stage for us here. I mean, having covered these things myself and youve covered many more than i have, how far away will the summit the actual summit be the World Leaders, will they be able to see any of this as its happening . All right. We lost him. I assume that was a planned loss, that hes okay, but, you know, thats a crazy situation there, especially when they get a view of the tv cameras and they make hay while they can. Thats the oxygen. Exactly well check back with eamon a little while now. Shall we check in on tesla shares in the meantime by the way, they are tumbling again today. Down more than 5 . More questions about the safety of the model s lets get to phil lebeau with more details. Reporter shares moving lower, about 6 lower today. They have now officially entered into what we call bear market territory meaning they have fallen at least 20 from the highs. Just eight sessions ago they hit the highs. I think it was 386 a share. Some of this has been at boughted to a note from Goldman Sachs yesterday suggesting that perhaps were seeing a plateau in the sales of the model s and the model x, and then overnight there was the release of crash test results from the Insurance Institute for Highway Safety these results and this test specifically look at thi collision right here measures how these vehicles handle whats called the small overlap collision where the front corner hits another object at 40 Miles Per Hour the iahs says that the mold s is not a top safety pick because of how the crash test dummy reacted, nor does it give them the top rating of good for that particular test. Calls it simply acceptable in response to this tesla says the most objective and accurate independent testing of Vehicle Safety is currently done by the u. S. Government which found model s and model x to be the two cars with the lowest probability of injury of any cars that it has ever tested, making them the safest cars in history. While some have debated that following these crash results from the iihs, one thing is clear. Shares of tesla versus General Motors the reason were showing you this is it got a fair amount of attention when teslas market cap surfaced General Motors at about 52 billion. Its now fallen back below General Motors at just under 52 billion. But, again, guys, these shares are in bear market territory i was going to ask you how they have done in past crash tests, but how do we you just told us there with that. Two separate tests. How can it lead to two different tests here reporter two different tests in terms what have they do the federal government does a this is not the federal government one that is the iihs the federal government does a full straighton the front of the vehicle. They do not do the small overlap, and the Insurance Institute says, look, in our opinion, if you want to call yourself the safest vehicle in the world, that would be getting a fivestar rating which tesla model s does get from the federal government and getting the highest possible rating, you know, that it could, good rating, from the Insurance Institute. Thats the response from the Insurance Institute. The response from tesla is nhtsa gives us a fivestar rating. The model s is the only suv to ever get a fivestar rate and we think they are the safest vehicles that are out there. All right thanks, phil see you later. Reporter you bet. Now to the markets and what a day its been again. Minus signs pretty much across the board for the major averages today. Joining us as we head to the close here, peter costa, mark lusceny and Rick Santelli at the cme in chicago peter, clearly, youve been waiting for a pullback this is a minor one here weve seen the markets struggle with volatility this week so far. First, let me say something, bill if you saw the video from hamburg, that was actually the costa family july 4th picnic. All right. And that was my family coming after me because i was short the market, but, no, you know what i think a lot of things that happened this morning. You had the eu saying that the kweezing is going to lighten up and, you know, some geopolitical issues, i think north korea is something that we have to keep an eye on, so i think, you know, traders are getting a little skittish right now and with the market being at alltime highs youre going to see these pullbacks, and pullbacks wont be five points and ten points. They will be 100 points, 120 points. We have the private sector jobs report this morning that came in a little disappointing, so we get the big jobs report tomorrow and theres some talk about how strong the economy really is what do you think . Kelly, i think what were going to see is a jobs report that continues to show that job gains are being had. Obviously youve seen a downshift on the number of jobs being creed on a monthly basis because the market is tightening a number of job openings are unfulfilled and continue to grow and job hires cant keep up with the number of jobs created we believe that the labor market remains force which is the key to a selfenforcing economic unit and ism reports in manufacturing and services this morning that both beat expectations i think the reflation trade is ultimately going to reassert itself here in the second half, and were going to see advances of equities going forward. Speaking of which, rick, here we go again. Let us talk about Interest Rates. As they continue to rise the tenyear bund, last i saw was 56. 9 and the tenyear now here in the United States at 238 i think, and youre on record now seeing it back above 241 at some point. Yeah. I think 241, 142, the last significant top after we made the bottom in a market which was 217 which lasted until very recently as the low yield close of the year. All of that have happening, of course, after the high yield close of the year at 263 theres a lot of technical aspects but in english, you know, i really dont think that youre going to see huge amounts of feartype trading and rates running in and not in an orderly fashion, but i do think the trajectory, and weve talked about this before will be to the upside, and its going to be kind of the threetwo notion, three steps up and eventually a couple steps back. I would think in the low 2 been the 40, remember, 2. 44 is unchanged and the whole zone, a pause area and well monitor the behavior the days of talking at a test under 2 is pretty much in the rear view mirror listen, on growth on the economy, on jobs, its hard for me to get too excited that were hitting this brand new soft patch. It is softer than it had been, but over the last 12 or 14 quarters weve seen negative gdps weve seen five handles on gdps and that was all prior to 2013 i dont know that anything has really changed except for the fed is doing something different, and the timing couldnt be worse. They are tightening into what looks like a slowing, but i think well see a little speeding, but i dont think we can get above the 55mileperhour speed limit. Rick, on the very point its interesting because how do you fit the u. S. Dollar in all of of this the dollar index half a point below 96 and all of this as the fed is tightening. What do you make of it see, to me i think it makes sense because we have to get away from thinking that our fed is raising rates higher rates is going to be better for the dollar and part of that have is true but the part that kind of dismisses the dollar is that were not looking at a raw dollar rate, but most are making a comparison about the dollar index which is heavily euro centric or were making a case for the euro versus the dollar, so theres a definite amount you could learn from that relative relationship, and i think what i see is that the euro is king now because they are going through their, yeah, you know, we have a great benefactor they are still doing quantitative easing, were starting to see traction so thats kind of the flavor of the quarter, maybe the flavor of the year, but i do think there will be a point in time where people will scratch their head and say they still have major negative Interest Rates mario draghi probably is going to delay, delay, delay on actual qe which probably qt where they stop it by the end of the year most dont think thats actually going to happen and thats when the dollars day in the sun will happen. All right, but, mark, do you think the rise in rates, if it continues, can be does this become a headwind for the equity markets . Oh, i dont think so. I mean, if we were talking about a yield approaching 4 , then that would be troublesome, but it really matters not so much on the elevation of the yield but why its occurring if its occurring because theres inflation without growth, then that would be troublesome for market and that i have sympathy for, and if its a consequence and better Economic Growth thats promoting faster activity it a could breed inflation while still at the same time negotiate nighting a rate of inflation again in excess of 4 to warrant much higher bond yields, then i think the market likes it because thats Fertile Ground for corporate profit growth. I assume you disagree, peter, very quickly. Of course i do, but, you know, well look at it this way. Were out of the Second Quarter earnings season. Well see how that plays out tomorrows jobs report will be important because, you know what, the fed should really take a look at it and say, you know what, maybe were not growing at fast as we would like right now and the one thing we havent really seen a lot of and we dont talk a lot about it is Wage Inflation you still havent seen it, and i think there should be Wage Inflation for anything to for the economy to expand significantly. All right got to go guys. Bill, real quick, real quick, bill. Thank you. Bill, real quick. Yeah. Theres a third channel, okay its not that its not the right amount of growth its not that the theres inflation. The other channel is because Central Banks are slowly losing control in europe, and that is pushing our rates higher nobody ever looks at that channel, and i think we really need to study that one more. Fair point. A central bank behind the curve. Imagine that thank, guys. See you later. All right. Boy, are we behind schedule here lets move along weve got about 43 minutes left in the trading session and were near lows for the session. Right now the dow is down about 131 points. Senator ted cruz wants Health Insurers to be able to offer cheaper, less comprehensive health plans in addition to obamacare ones up next, the ceo of mt. Sinai Health System tells us whether he thinks that will raise or lower premiums. And the Trump Administration is setting its sights on space we have the names of companies that could be big winners in a new space race coming up. And we want to hear from you. Contact the show via twitter, contact the show via twitter, facebook or send us an eaiml. The power of closingbell nbcnews. Com the power of smart beta. Power your clients portfolio with powershares. Befo nbcnews. Comer the s investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. 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