intel based on the types of moves they've been making. >> the key -- it's not likely it's going to be sitting there alone. no one would want to buy it going down the tubes, now if they're stabilizing and actually have carved out a piece of the market they can say, look, we're in a good position in that market, somebody's going to buy them. >> again, people on the buy side looking to move, seeing less new money coming into the stock based on the promise john chen is offering today, more short covering. a lot of people believe this company could not deliver on promises of 2016 profitability. another device that would eventually capture america's attention again. people are still not quite there yet, but at least they're not willing to go short the stock. >> what i mean about eliminating the down side. why the shorts get hurt. the question, what's the new long thesis on blackberry? how quickly can they build out that base for mobile device management? get the message out there, yes, we manage iphones and we manage android phones? what do they do on the software side? this deal with amazon on app

stores is intriguing. does blackberry end up dropping blackberry 10 altogether and going to android? john chane them positioned to do that rather painlessly now. >> cash burn clearly not the issue. for now. margins up 10 point year on year. has he taken out all the expenses he can? is that the story next quarter, too? >> agents mo little more to go. you want it to be not burning cash. accounting adjustments helped here. not quite there but close and stabilizing. that's the key. i think this industry needs to consolidate. there are two companies making money. apple and samsung. lots of companies want in. can't just launch a new product. this is a prime candidate for take-out now that it's -- >> by whom? >> more stable. >> by whom? >> by a lot of players. samsung is possible, any of the other, hp wants to be in this business. >> back in the day, in the earlier stages of the turnaround, the other thing analysts look at, cut costs but also creating a new revenue stream in the sense that he's

licensing bbm, trying to create and enterprise, bbm. trying to hedge bets on hardware at the same time. lie jon said, with software. we don't know if that will pay off yet, though. >> timing is really good to make for somebody, blackberry or somebody who wants to grab them, to make an aggressive move in enterprise. we see box looking to re-file ipo. part of that because of better, a better look for the cloud players now. a lot of that is enterprise based. if you want to make a move there, security, cloud, mobile, blackberry plays to all of those and the down side in this, that was largely hardware base, has been largely eliminated. why the stock is up now and why there are lots of different potential prospects going forward, see what there'll capitalize on. >> and jon chen live to talk earnings today during "power lunch" beginning at 1:00 p.m. eastern time. does bring us to amazon finally unveiling a brand new fire phone. what separates it from the pack?

something called dynamic perspective, making images look 3d when you tilt the phone. another big feature, firefly, recognizing thousands of products, tv shows and be songs. let's you mightily buy them on amazon.com, of course. fire phone goes on sale july 25th. costs $200 for a 32 gig version with an at&t contract. bay se bezos on the cover of "usa today." not bad placement in a business where interest in smartphones is flattening in this country. >> absolutely. i don't think any of the new features that they've announced are going to make a difference here. i think people were surprised by the price, higher than a lot of us expected. to me, the two big points here are, one, for prime subscribers, this is yet another, basically you get a discount. it's built in over the next couple of years, you see the prices drop. then, two, i don't think it's about this particular phone. i think it's about amazon's come in. looks like a good device. these things are very hard to make. they're limiting distribution with at&t. give them a year or two or three

or four or five what amazon has done in all the markets. so much more patient than normal companies. a good step. it could lead to very exciting things. >> i'll say as someone often multitasking multitasking, use the phone with one hand. don't need two hands top operate and touch something, could be useful once consumers get used to it. wall street doesn't love it yet. maybe sell 2 million to 3 million this year. what apple does in a week. >> they don't need to sell a lot of these phones to do well. i found the announcement underwhelming for the reason the hardware not exciting. good hardware has not been selling phones these days. htc, unable to make head way, selling good phones. would they subsidize the hardware, make the phone cheap jer subsidize data? didn't dough either. not that though couldn't down the line. the things they did in hardware, this perspective thing, unlocked

and awakened through software. developers need time to take advantage. >> it does make calls. didn't demonstrate that. he hasn't made a call in a very long time. >> who cares fw it does or not, right? >> calling is an app now on this computer that you carry around. i think the other point on that is i don't think they actually want to sell a lot of units immediately. >> does that explain the pricing? >> yes. and the single distribution with at&t. go back to the beginning of the kindl, they had a huge inventory problem. blew out everything. had to make people wait. a bad experience, and go back to apple. in the begin, limited distribution, too. for exactly that reason. it's hard to produce millions of things when you haven't been doing it for years. >> really good point. what they want to see, what the revenue per use sir that actually gets driven through amazon. they know what it is for kindls, kindl owners and prime owners buy so much more. what can they do with the phones and based on that, how valuable a product this is for them. entering it cautiously.

for me, maybe that's the reason the stock was up 3% after the announcement, because they're not going a lot of subsidies and trying to drive value out of the gatant fascinating story. the company's trajectory, fascinating. watch the cnbc original documentary, "amazon rising" hosted by david faber airing sunday june 29th at 9:00 p.m. eastern time. jon? now carl speaking of amazon, i talked to t-mobile's ceo john ledger last night. he had a lot to say about the competition. here's ledger talking aboutant new fire phone. >> outside of the fact that the phone can look at things and tell me what it is, i usually know what i'm looking at, except late on a friday night, and then the phone's probably going to tell me what i'm looking a, and i won't listen to the phone anyway. traditional model, two-year contracts, at&t exclusive. pretty much a hardware announcement and gave prime two customers as opposed to giving it to prime layers.

last thing, john, i never said i wasn't asked. so there's certain pieces of, let's let it unfold. if it's a great device customers want to buy, i'm sure it will be available unlocked and we'll find way for t-mobile customers to get advantage of it. >> he's not sure he even wants to take amazon to the dance, guys? >> that's the way i would position it, if i weren't the one going to the dance with amazon. >> if you weren't asked. >> or not -- weren't going. he didn't say he wasn't asked. >> interesting debate, though, he brings up. he says you're not giving the phone to prime customers already. asking prime customers to then go out and buy it themselves, and get a two-year at&t contract. essentially what you're asking them to do. >> analysts estimate they are around 22 million, 23 million i believe prime customers. save 10%, 15% will buy those, a small number out of the gate anyway of these things. >> interesting discussion in the last hour about his own undermining of the disruption

argument, in consolidation. consolidate, is there less disruption? the kind he's bringing to the market. do you think that's true? >> lecher? >> in terms of if they get bought, will there be as much competitiveness in the market as he's bringing? >> three players is enough. the idea we need four, you have two companies that are at huge disadvantages to at&t and verizon, a scale game. three ought to be enough, for innovation. >> okay. we'll see. hardware side, leger has plans of his own to woo you away from your own data carrier. take a listen. >> you can go on to the website that will be distributed, t-mobile test drive, and you can assign in two day, get a fully loaded iphone 5s with unlimited data plan you can use seven days to marvel in the experience of our network, especially for people in new york, where you are, and at the end of seven days, bring it back to a store. no down payment, no charge.

as you say, you put a credit card up, that's only for security. there is no charge, no overage and this is a chance verizon, at&t, have a seven-night stand. cheat on your carrier. >> 11 hours ago, tweeted, at&t, verizon, sprint, almost 2,000 of your customers have signed up to cheat on you already. the idea, you get this phone in the mail. check it out. check out t-mobile's network without going to the trouble of porting your number over, getting a rebate for breaking your contract. so we'll see if this works, but an aggressive move. >> a great marketer. it's very -- a very boring business. suddenly it's not boring. that's good. >> i wonder about the legality of this. make i'm a skeptic. i can think of a lot of illicit business you can do.

it's not your phone and send it back to the company. >> kayla? get your mind out of the gutter, as usual. >> i don't know. sounds dangerous to me. >> good point. interesting. watch obviously that space and all the ideas coming up with and executing, by the way a totally different story. the next frontier in talk show is netflix. julia boorstin on the floor with details. >> hi, karl. teaming up to create an entirely new streaming talk show format. the partnership kicks off with a one-hour comedy special called "uganda be kidding me." next year handler creates specials, nascar and silicon valley among other topics. then in 2016, her new talk show starts on netflix. they plan to experiment how to release the show offering one or three bit as week spread out throughout the week to best suit the talk show's focus on current

events. netflix will not release all episodes as once as they do with other originals like "orange is the new black." netflix is not announcing the cost, but a relatively small commitment as producing talk shows is expensive compared to scripted dramas like "house of cards." netflix is in every major tv category except live sports and live news. karl? >> interesting. what's your take? >> i think the most interesting thing about this is the challenge in this kind of comedy/talk show format. doesn't have to be live but it has to be close to live. so if netflix -- >> has to be current. >> it has to be current. if netflix can succeed, maybe they become a player in things like live sports, and that market is huge. >> right. >> shelf life for a talk show, henry, what? a few hours, maybe? >> a few hours. this is a big step for netflix. if they're successful here, it's another wedge into the traditional tv model. netflix, first of all, in a wonderful position with what

they're doing. the more scale they get the more they can invest in content. here if you've got fresh content that has to be consumed at a certain time, get it on any device easily. the netflix interface across all devices is amazing. so much better than the trv interface. that's a powerful move and a lot more they can do beyond this. >> this is like the potato salad, right, of tv? you don't have the to eat is absolutely, imatel eat it pretty soon or it goes back. >> what about the choice of handler? what about the demographic? >> at least ten years too old. you're asking a dinosaur. from what i understand in our newsroom, she's quite popular. >> true. did wonders for comcast channel for a very long time, on ech! >> not my comedic choice but kids like her. >> and it's interesting to look at the fact they are taking a big step to move away from the binge viewing, dump a bunch of episodes at once.

that will tap into the fact comedy especially is really share and social. so this is going to be one of those thing, doesn't release a full hour show, but different bits spread out throughout the week. netflix expects you to share on facebook and twitter, click to watch and subscribe. >> my kids don't watch television. they watch netflix. wherever they happen to be. in the car, dad, can i have the phone? in the netflix, the same thing when they get to the house. the show is paused. pick it up on the tv. this is radically changing things. it's another big step nor netflix into a new type of program. >> jeff bezos has to work on you. watching amazon prime. >> we do it sometimes. it's harder, though, don't have the cool apps. >> julia we're hear from you later. a check on the markets. two hours into trading on low-ish taking a breather from record highs for the s&p. down 2 points.

dow down by 25. nasdaq down by just about 10 points at this hour. check out kroger also shares in rail mode after a big earnings beat on wall street. kroger is on track to have its best day in two years, and it's sitting at an all-time high that goes back to its merger with dylan in 1983. on the flip side, juniper networks slipping after downgraded to newt true. one of the biggest losers on the s&p down better than 3%. coming up, is the box ipo back on the table? new details on when the company might go public. plus speaking of ipos, getting ready for a major wave's companies going public. and true blast from the past. a look at amazon.com way back in 1995, and finally, everybody at home, in is is your chance to be part of "squawk alley." later this hour we'll ask questions that you, the viewers, can vote on and see the results

live on-screen. all you have to do, head to cnbc.com/vote. on your computer, phone or tablet. get involved. get ready, questions coming soon, and "squawk alley" is coming right back.

welcome back to "squawk alley." i'm courtney reagan apartment the market flash. a quick alert for you on coach. take a look at shares plummeting

on the investor day. the cfo jane nielsen going through what this transformation is going to cost. she's estimating somewhere in the neighborhood of $250 million to $300 million and forecasting low double digit revenue declines for the foreseeable futcher to get through this time. they're going to close stores, do what it takes to re-align inventory. hopefully it works but won't be a cheap journey. seema, over to you. >> courtney, watching markets, getting a lot of attention today. the second largest ipo at the nasdaq this year. financial data analysis player, which competes with bloomberg, thompson, reuters and given the regulatory environment in the marketplace. i caught up downstairs said the market is ep hadding customers meet requirements. but point the out, one. services market offers. started with offering transparency to the credit default swap space and slowly became a fully diversified data analysis portal or company, if

you will, for its clients. many of which are buy side, sell side as well as banks. in terms of how big the financial data space is according to brit and taylor a $25 billion market that is growing, and investors see the opportunity here. market raised its ipo size due to heightened demand. currently trading up 11% on its first day of trade. back to you. >> seema, i'll take it. done a little research and reporting on market. they're not only attempting to replace wall street, data strongholds like thomson reuters, like the bloomberg terminal but getting help from wall street, too. all big banks are shareholders in think company and not shockingly, they all got lead underwrite werer spots on this deal. ten lead underwrite werers, 14 in all. sources said there were a lot of cooks in the kitchen on this one. so many that they had to actually hire another bank, boutique injechlt bank rosschild to sort it out. an interesting facet of the deal

that has a lot of vested interest on wall street as it seeks to dethrone some of these competitors. there you are looking at all of those book runners, all with the same priorities, and all at the same level with that company there. it also just goes to highlight we do have a thaw in the ipo market. bob pisani mentioned earlier. $2.8 billion and sources i say, that i speak to have said now that the momo correction roved almost completely, you'll see a very busy late summer. a very busy fall. box is going to be among them as far as i'm hearing. filed for ipo in late march, but, of course, the market very quickly reversed and they postponed that until market conditions recovered. as far as what we're hearing, a busy few weeks. gopro next week. alibaba, first-ish week of august. between now and then, not sounding like a slow summer. >> no vacation for you.

no montauk for you, henry. >> watching you. >> exactly. when we come back, a big, new bookstore in town and catch. you won't find it on any seattle street. you have to hook up to the internet. a special throwback thursday look at how people saw amazon way back in 1995. plus, all of you watching out there, your chance to be part of "squawk alley." >> announcer: all the answers. now you can make your voice count, on cnbc live. go to cnbc.com/vote right now. let us know what side you're on, at cnbc.com/vote. .. i got more advice than i knew what to do with. what i needed was information i could trust on how to take care of me and my baby. luckily, unitedhealthcare has a simple program that helps moms stay on track with their doctors and get the right care and guidance-before and after the baby is born.

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another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. in case you missed it, a new amazon product. 20 years ago and today's edition of throwback thursday, back to the "seattle times" september 19, 1995. they wrote this. a big new bookstore in town and

a catch. you won't find it on any seattle street map. if you wand to wander down its aisles and peruse selections, hook up to the internet. two months. four years later. this, bezos on the cover of "time." easy to forget, henry, how quickly they became a household name off of one category essentially at the time. >> and a good el straillustrati amazon continues to surprise people. what they're doing, is it. that's it. just a bookstore. look what they do over periods of five, seven, ten years? what competitive advantage, willingness to make bets that won't way off for seven to ten years. few are willing to do that. >> the fact jeff bezos has a large stake in the company, around 18%, and a towering fig.

gives him an advantage they and only a couple others in the spice have. >> and i like how worked up the bears get about sales taxes in various states. no one's talking about that anymore. for a while, a big head wind they had to face. >> and profits. people obsessed about that. the folks who own it, look, we know where the money's going. this smartphone this, not cheap. meaner is the kindl or amazon web services. the core business is probably pretty profitable. >> fun toy think of a phrase, to get it you have to hook up in the internet and sound something like -- shhh, and now just released a phone allowing the internet to be with you full-time. full circle. >> henry great to see you. come back soon. joining us for the first half hour today. closer to the european close, bring in simon. talk what happened across europe. >> a big hurrah again. a lot of green on the screen. the fact the fed indicating it's not raising interest rates faster than people expected has

given a good relief rally there. 80% of top stocks in europe higher. one of the biggest gainers, the arrow engine maker rolls royce, makes the engines. second largest in the world, will use the entire proceeds from the sale of their energy business, the turbine business, to siemens, $1.7 billion, to buy back stock though there are acquisitions down the line. rolls-royce, doing well. the big one, clearly who were buy alston. trying to push forward a plan. the latest from parrotis, a socialist, from france, a tiny stake in alston for themselves. speaking of socialists politicians, remember this wo? n in charge of power, energy in france. scrapping the prices coming through at the beginning of the fall. you can see state-controlled

down 8% in response to that. one more, in madrid today, they've got a new king. felipe 66 -- philip vi. and frankly, guys, small consolation for the fact spain was kicked out of the world cup last night. undisputed kings of international football for six years, and now heading home. >> my favorite headline, the reign of spain nends pain. in the "journal" today. unbelievable match. >> it was. and sand, kind of. >> i know. thanks, simon hobbs. now that you've seen the amazon phone what do you think? we've been telling you all hour, your chance to be part of "squawk alley" in a moment we will ask you that question, and then you can vote and see the results live on-screen. all you've got to do, go to

cnbc.com/vote. that's on your computer, phone or tablet. get involved. get ready. the question and more coming up after the break. you're watching "squawk alley." s might have a song that he has in his head s but he just can't get out. with the technology of cloud, we change all that. i can sing something into my device. up to the cloud it goes. back down it comes sounding better. we break down the walls of creation, and we give music creation for the masses. ♪ ♪

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welcome back. we've been telling you all morning, excited to bring a new feature. a way for the viewer, you, to interact with the show here on "squawk alley" giving you a chance to vote on the many

topics we talk about during realtime. voting begins now. go to cnbc.com/vote. either on your computer or your mobile device. let your voice be heard. this is going to be an interesting experiment i think for the second day now. joining us from across the pond today, john steinberg, former president and ceo of buzzfeed now ceo of the daily mail north america. congratulations. haven't had a chance to give you well wishes. great news i. was waiting. not only a what's up? you've been traveling? >> it's coming. amazon. setting the smartphone wars ablaze with the introduction of the very first fire tone. time for the viewers to go to cnbc.com/vote and sound off. our question is this -- now that you've seen the amazon phone what do you think? so while they're voting, i'll ask you. what do you think? >> i think this is the phone that amazon would make to try to make people buy more amazon stuff. it's like a shopping phone. it's a shopping 3d phone. it doesn't make a lot of sense

to me unless you can have it as a secondary device. why the fire tablet, little market show. less than 2%, acomposed a 30% share of the aipad and not norml androids. all the apps through an drud you have to wait to be ported to the special amazon android store. i'm not overly bullish on this. >> we had henry blatch it on ear earlier. his daughter really liked it. snapping pictures and buying things with this phone. would you give this to your kids? >> look, i think everybody likes it and wants a new gadget. the reality of the phone thing, tied to a contract. not something you can easily move to. could have gotten more traction if they gave it away to prime users. i wouldn't want my kids near it. i dysfunction all the buy tunes

or my kids will buy more tokens for "mign"minion rush." that would be a disaster. >> sure. it's your kids. right. yeah. >> i think maybe the -- cts exactly, yes. >> the buying capability for you should be handicapped so you can't order a new drone every weekend. >> i mean, that's the whole thesis behind this thing. people will be able to take pictures of stuff, more easily buy it and more easily spend money on prime and on amazon and get overnight shipping's i don't know how realistic that is and assume the 39 d functionality. why do easy buying in 3d? probably to be more easy to manipulate the view of the item. see what the shirt looks like, what the drone looks like from different angles. amazon allows you to do it with a mouse now, different angles. with the phone in your face and the six cameras, it can do it automatically. >> makes you wonder about their own virtual reality play. this dimension plays in there, too. >> look at results. the bottom of your screen, but,

yea, 19%. nay, 56. and ah, 25%. a reflection on how comfortable we are now with the smartphone? we think we all understand it already? >> yeah, also, look at the "squawk alley" awudience, a tec smart audience into this stuff. the fact they're only at 19%. if you went to the broader market, a lower number in the yea sector. doesn't bode well from the surveyor we've done now. >> come out with it two years ago, i wonder -- >> i'm sure that's true. >> the argument earn was making with the fire. that the fire tablet came out too late and sales are declining on the fire tablet. apple successful at coming in late and bet but that doesn't necessarily work. >> ceo john leger has new ideas how to lure new customers. take a listen.

>> you can go on to the website that will be distributed, t-mobile test drive, and you can in two days you will get a fully loaded iphone a 5s, unlimited data plan to use seven days to marvel in the experience of our network. especially for people in new york where you are, and at the end of seven days bring it back to a store. no down payment. no charge. as you say, you put a credit card up. that's only for security. but there is no charge, no overage, and this is a chance for verizon, at&t and sprint customers to, we call it, have a seven-night stand. cheat on your carrier. >> always puts it in romantic terms. we want to know if you, our viewer, would cheat on your carrier. vote now at cnbc.com/vote. he's consistent in trying to get people tempted to do that. >> and he's a very forward-looking ceo, this is very much what hip and cool companies do now. look at warby parker, let's you get six sets of glasses to try,

then you keep the one and send back the others or send them all back. kayla got offered to have an amazon fire tv sent to her to trial for a period of time. trialing new technologies, things that people don't know the benefits of without experience p experiencing is a hot way and down side, little, to a company for doing that. especially if you have the credit card number on file. >> only for security. i got a lot of flak on twitter calling it a sophisticated burner phone, but ooo-i still s by that. another announcement. now music streaming will not count towards your overall data allowance. i'm wondering as someone who streams a lot of music, will that move the needle in terms of choosing which carrier to use? >> absolutely. many people are on fixed data pack of as, buying 5 gills, 7 gigs or one or two gigsmoves the needle. you know a lot of your time is listing to spotify, included, om

streaming music. rhapsody included. a plan to pay for a flat fee, extra $4 a month not in one of the plans that annoys it normally. a clever way for him to take market share. off the things he's doing, t-mobile doing, calling into question how financially independent can the company be for the long term? why they're is so much discussion about the sprint t-mobile merger. i don't know if you can keep giving away data, putting phones into the marked and r and trial them without it cutting into margins. >> 55% say, yes, i would cheat on eye carrier. 19% say -- >> i think the relationships with carrier, have the loyalty of a college sophomore in a relationship. really, we're together, but as soon as something better comes along, i'd be more than -- streaming music over there? it's really interesting, a play for him. able to gain so many customers, more than at&t and verizon combined last quarter.

so this should accelerate that more. >> great seeing you. please, come back soon. >> back monday in new york, at the nyse, guys. see you then. >> joining us from london. i imagine he'll hang out a little more these days. when we come back, go behind intel's new push into the next wave of communications. the vp of products gives a sneak peek what's coming down the pipeline. rick santelli, what's coming up? we're going to discuss the aftermath how the markets have traded base and yesterday's fed meeting and press conference. giving insights into why stocks are higher, rates lower and, of course, talk about the big number of the day. 241.2 billion. what is it? i want to know what it is, and i'll tell you, because i know. but you have to come back, after the break. [ female announcer ] there's a gap out there.

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coming up at the top of the hour, super investors are here to share best investment ideas now. how will they play the second half of the year? and some unusual trading activity once again catching jon najarian's eye. kniss stock is on the move. what weighs 2,000 pounds, 300 teeth, 11,000 twitter followers and could be headed to

a beach near you? find out. it's our worst trade of the day, just ahead of the fourth of july. yikes. all straight ahead on the "halftime" show. jon? >> so many jokes to make after that. we'll be watching. mobile chat messages is useed by consumers to communicate lots of different ways, intel labs has a new project along those lines. that's actually just a few minutes ago here in new york, their vice president of new products gave me a sneak peek. check it out. >> it's a new product we have called pocket avatar, and as you can see, it's a cool little chat app we put together and it let's you send small videos to people. it's really a, it's a window into the new intel. we are still an amazing chip company but so much more. this is one example of fun things we can do with amazing technology brought down to be useful and fun for people. >> that front-facing camera on the phone tracking facial expressions. the avatar talks, winks.

that's what the other person on the other end sees. >> avatar character looks like a lego character. >> that's the guy from the lego movie. right. >> you've seen it. >> oh, yes. >> too many times. >> kids under 6. i'm with you. lots of different characters you can use for that lower bandwidth. less banded withth, just supposed to be fun. >> very nice. good stuff today, jon, across the board. over to the cme group. rick santelli. hi. >> hey, karl. warren buffett considered the top of the heap when it comes to world class investmenters kov kerring decades. one of the things a like about warren buffett, something he said. i'm paraphrasing. when you wake up in the morning, look at your positions you need to fall in love with them every morning. in other words, whatever positions you have, if you wake up one morning and you look at the landscape of the marketplace and at the cme pivot around,

where everything in the world is positions. if you don't like it, you've it h it for a while, you're probably making a flawed, strategic mistake. let's fast-forward to yesterday in the press conference, and i know -- by the way, steve liesman if you're listening, congratulations. little doubt we all knew the minute you asked. asked the only question that should have been brought up, considering it was first. i don't think the answer regarding inflation was necessarily up to snuff, but i really don't think all of the ire of yesterday should be on the notion that janet yellen and the committee are overlooking potential pricing pressures, because one thing about pricing pressures, whether she's ignoring them, whether they're ignoring them, doesn't matter. it will be known. okay? these things will come to the forefront. it's more about the management style. you know, when we look at companies or think about companies that have had issues,

like jcpenney in the past, it isn't necessarily only, only, valuations of fundamentals. there's an intangible called management style. and whether you're looking at the white house, the congress or in my opinion now the federal reserve, and not only under janet yellen's shorten nue tenu it's overwhelming. i can hear the questions now. what about stocks? how could they be going up? remember that big number? 241.2 billion? all right? thrown on the screen, from the "wall street journal." thank you. buyback binge surges to new highs. stock buybacks and dividends. new highs, dividends, oh my, reached 242 billion in the first year exceeding the previous record of 232.2 billion set in the fourth quarter of 2007. that last line gives me goose bumps. in the end, maybe here's the deal. here we are in, what, a 250 -- 9

yield. steve liesman asked this morning if my interpretation is correct why aren't yields going up? maybe yields would be at 2% if it wasn't for the nervousness about inflation, because ultimatelies reason rates are low is no confidence in management. baaing to you. >> rick san tetelli in chicago. thanks. and is this the future in america? threatening to give the bank a run for its money. ging faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

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see that? barely in the new job, already hanging with kardashian. >> a matter of time. >> at least they're not out on a motorcycle. this week unveiling the cnbc disrupter 50, shaking things up, today lending club, the peer to peer lending start-up threatening to give the bank a run for its money. julia boorstin joins us. good to you have back. congratulations. we've talked your story before. what does it mean to be getting named to this list? >> great. really happy to be featured in such a prominent list. we really see what the lending club does as extremely disruptive. banks have been around a very

long time, we are enabling and empowering people to lend and borrow money from each other from other banks that's the big disruption. >> you don't really market to investors. what is the return investors are getting and how much interest to the borrowers, do they pay? >> a high level, borrowers or average pay 12.5% interest rain on a 30-year return. alternative to a credit card, interest rates in the 17% to 18% range. a big savings for borrowers. on the investors side, a 6% to 9% net return after critical season, after fees. pretty attractive. >> when i talk to bank executive, a fantastic model, disruptive to what they do and it's unsecured.

what happens when there's a massive default. these are smaller lorneloans. but how would they want to come back? >> launched in june 2007, a lot of data from '08, '09, unemployment went from 4.5% to 9% in just a 12 to 18 month -- >> you weren't as big then, weren't as big a company. >> not at big, but a credit policy was less sophisticated than what it is now, and during that period of time, investors earned 5% to 6% net return. by focusing on prime consumers, the borrowers, people who are in any kind of trouble. we just have a credit card balance paying down all the time and helping them paying it down faster. prime consumers, with good credit, and what's really important from investors side is to diversify among hundreds of thousands of loans and make it

easy for investors to do that and invest in loans by $25 to $50. a small account, diversify across hundreds of borrowers. >> you launch at almost exactly the same time that the iphone launched's so how has the rise of mobile technology changed the way consumers interact with you? is the desktop still the prime mar platform or mobile -- >> in the home, artwork, in front of the computer, we like to check accounts and see how they're doing on mobile phones. quite a bit of mobile usage. on the borrower side, borrows $10,000 tos 15ds,000. >> 10 years, 15 years from now will you be lending enough money for someone to buy their first home? how big can you get in terms of loan amount? >> i think so. we already launched in the last

quarter a small business lending platform where loans can go up to $100,000. and we have plans in the next few years, to include all types of credit including mortgages. >> ceos on your board, incredibly influential financial figures. what advice are they giving you? >> really excited about the potential of the company and how transformative we can be to the entire banking system, and how we can create a system that will be effectively matched, with no misimagined and the leverage in the system, creating a safer banking system. >> you have a valuation, about $3.8 billion. what's next? when are you planning to go public? >> we can't talk about the timing of an ipo, but the thing in general, i think going public, lending club, will be, would be really a, another transformative event. a lot of our customers are investors, asking us, this is

great. love the service. how can i own a piece of the company? going public would be a way to do that. >> congratulations once again. lending club name to the cnbc disrupter 50. good to have you. >> thank you. when we come back, a harley davidson you can plug in. talking about the company's new product, when "squawk alley" comes right back.

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harley davidson unveiling its first electric motorcycle. specs, bike can go 0 to 60 in four seconds. engine silent, obviously. meshing of gears emit as low hum. batteries recharged after about 130 miles and that can take 30 minutes to an hour. one catch, consumers a few years from being able to ride one. soliciting rider input as they go on this ride. a lot of people saying this is

sacrilegious. >> what happens when you do this? does the light come on? >> harley patents the sound of their engines. why a lot of people buy them. >> a wonder sound effects, riders really enjoy them. >> isn't that kind of like a huffy, then? don't you need streamers coming off the sides if you have streamers? >> can you go to a biker bar with an electric by with sound effects? >> looks cool. we'll see how the technology develops down the line. dow is down 35 taking a break from-of-from the winning streak. waiting on that 1% move. today is day 44. not had a 1% move in the s&p, longest stretch in a decade. >> in the summer, low volume with very little news, even after janet yellen yesterday giving more of the same tone. just seems like there's really no catalyst in the near-term. >> yeah. reminds me of the hungry caterpillar, talking about, keeps eating, a little bit, a

little built. before you know it, all the peaches are gone. >> absolutely. 1955, a profitable caterpillar, too. >> it's full. >> after session. guys, nice to be back. >> great to have you back. >> "squawk alley," the team back together on a full-time basis. over to headquarters, scott wapner and the "half time." president obama expected to make a statement within the next 30 minutes on the situation in iraq. we're going to go live there when that happens. in the meantime, get to our game plan. second half playbook. super investors mariobelli is live. where to make money ahead? and should you finally dial up the stock? our traders debate it. and you're going to vote for the winner in realtime. worst trade of the day. why "jaws" has nothing on "katherine the