we'll hand it over to the "squawk alley" team. >> what a day shaping up. dow is up 45 now. 1962 on the s&p. it is 8:00 a.m. at apple headquarters in cupertino, california. 11:00 a.m. here on lawsuit. "squawk alley" is liv ♪ welcome to "squawk alley." joining us this morning, editor at lashed a mashable. good to have you back. kayla tou, jon ford as we wrap up what's been an amazing week in tech. new details on apple's new smart

wash. reuter is says production is going to start in july with a full commercial launch coming as early as october. the smartwatch will have a 2 1/2-inch display. they will ship 50 million units within the first year. it will come in multiple sizes. more than ten sensors including ones to track health and fitness. the journal is saying 10 to 15 million units in year one. either way it looks like this is getting off the ground after a lot of speculation. >> it looks that way. and all of these pieces of the supply chain, it's hard to say that any of these is definitive. tim cook is fond of saying, our supply chain is complicated so any one bit you get doesn't tell the whole story. kind of like the blind guy feeling the elephant. we still don't know the key details about this product. just what it's going to look like. this is the -- probably the most fashion forward, fashion essential product that apple has ever made, if am does indeed make it. we don't know the price. we don't know the business model, whether it will require

connection to a smartphone. who those key apple launch partners might be. if it's fitness you want to see nike where cook is on the board. other fumpgss like health you want to see key partners there. still lots of question marks. >> you have to think with cook having been on the board with nike for nine years he saw exactly how that all came together. and he will probably be using that experience to build an informed sense about what this watch should be. the most interesting thing i saw was in "the journal" a couple analysts talked about not only will there be a range of sizes but a range of fashions. you will on one end of the spectrum, athletic in style, on the other end, very high fashion. apple hasn't really done much like that before. >> well, apple is starting to do that. they're starting to offer variety. we've seen it in the ipad and the iphone. getting closer to offering different sizes. that's not surprising. wearables, this is critical. samsung got knocked around on the initial gear because it was

clunky and ugly. now they got the gear 2 and the gear fit. very different styles. very different designs. apple has to do the same thing. it's funny. keep saying 2 1/2-inch display which people think, my god, that's huge. it's not. it's a thin, narrow band if, in fact, that's what they do. and they will, by the way, do two things. they will have a tie in to nike because nike is shutting down the hardware business. if you want to buy a fuel band now it's half price. they're not doing that anymore. and health kit, you know, just launched at wwdc, they're going to go deep on that. >> does it worry you if it was a glorified fuel band? if it was just health and fitness? does it need to be more like a pebb pebble? >> i've been wearing a pebble steel for a while now. simplicity is going to be critical in this watch. the very least it has to be a watch that delivers notifications on the fly, probably from you're phone. the other stuff is actually secondary.

health is cool, but people aren't checking their health constantly. only if something is wrong. they want this to be about time and information. so apple must get that right because, you know, pebble would beat them on elegance. >> it's got to be fun. it's got to be something that people want to wear, that people want to show, that people can -- whether it's game -- they can have fun with because those are the things that drive consumer sales. i can't be a nanny watch. >> a lot of apps that could be on the iwatch already exists but with the rollout of health kit just a couple weeks ago do you think that is enough time from a couple weeks ago until october for developers to actually build enough stuff for people to be engage with the iwatch? >> yeah. i mean, what i saw the building tools, it all looked simple and straightforward. i don't think they have to do a lot on the hardware side to make it work. apple has been working with hardware -- health hardware manufacturers for a long time. so they have good relationships and i think it won't be that hard. but again, this is all crossing our fingers.

what we like around doing this a year ago saying the iwatch is coming. >> exactly. >> and i don't know that it is. >> i would say no, that's not enough time. it's going to be several months before they're really great apps for this thing and developers figure out how to do it. >> speaking of new developments, dow is up 56 points almost. this is a new all-time intraday high for the dow. which is, as you probably know by now, has been struggling to keep pace with the s&p all year, which has been setting new highs today for the third consecutive day. but you've got the banks playing here. you've got utilities playing, energy has been a winner after yellen earlier in the week. and this slow grind. iraq aside, the markets continue to set new records. in this case it's the dow's turn. let's get to a new tech mover. oracle shares falling after fourth quarter earnings missed estimates. revenue below forecast. managing director and analyst at stern agee has a neutral on oracle and $41 price target. robert, good to see you this morning. >> thank you. >> people trying to figure out if this is about the sales

execution or if this is just the natural choppiness in transitioning to the cloud. what do you think? >> well, i think it's a little bit of both. i think coming out of q-3 when management set the q-4 guidance investors thought it was a little aggressive. so i think management clearly thought they could xe kus through kind of a tepid spending environment. but it also is transitioning. when you transition you go from a perpetual model where you might record a million dollar sale and all of a sudden it gets recorded as a subscription and that goes down to $100,000. so there is a transition period which affects about 45% of the company's business. >> you know, guys, oracle is a company that knows how to say i'm sorry when they screw up. and i didn't hear a lot of apology on the call. i don't think they feel like they screwed up. my sense is they really believe that the cloud momentum caused the revenue shortfall. they had some ven cia la currency issues on the eps side. when you think about it this is the closest thing in the enterprise that we have to the

chicago bulls of the '90s. the executive team here with larry ellison, mark herd, i mean, talk about a team. they've got vertical integration unlike others. they are making the argument that they're not going to suffer like cisco and hp from this transition to the cloud. that they're going to maintain their margins as they move into sass. they're taking on sales forth straight on saying we're going beat them in software and service and infrastructure as a service taking on microsoft. >> they've been doing this for two years now. you know, first of all, we understand the cloud. we actually understood it before anyone else. we were trying to build net computers and the internet is basically the cloud. we get it. and we're going it. that was two years ago. my concern is you're two years into this and you haven't made more than 4% of your revenues. that, i think, is a big problem. they have to make a real radical shift. he says the thing ator er serv hardware, is it's software.

if you get in and you're always working with software, get it right because the cloud is nothing but software. >> you talk about a radical shift. oracle knows how to maintain margins. that's why a lot of the street loves oracle. making the shift. moving faster than expected which is why it hurt them on the top line. they're able to maintain profitability at the same time. >> robert, they mentioned workday over and over and over again in addition to sales force sap and saying we know who ore competitors are and we are beating them across the board and we will continue to. the fact that oracle is naming a $20 billion company relatively new to hcm and they have been such a leader. do you worry if there will be competitive threats from oracle from the smaller companies. >> i think any time you go through this transition, competitors so absolutely. trying to encroach. i think when we look back software companies have tried to make this transition. we look at adobe and transition.

always a little choppy in the beginning so the volatility and revenue as well as in the earnings is expected to be there. i think what mark herd said last night on the conference call, which is important for investors to pay attention to, is that he said they're compensating the salespeople directly for both perpetual models and sales as well as subscription sales and really when we saw adobe actually tip over and say, hey, we are only going to compensate the salespeople for subscription sale and only selling subscription sales that's when we got the stock to take off. i think that's what we sneed to hear from oracle. >> workday team, dave, they're not new. they're the people from people soft that oracle took out so they know how to fight oracle. >> good times. good times. robert, lance, thank you for joining us this morning. >> we also want to get you a check back on the markets as dow marches towards 17,000, 16,971 is where we're at right now. a little more than a year ago

the dow is at 15,000. we have chartered nearly 2,000 points in just the last 13 months or so. nasdaq managing to hold a couple points into the green despite those losses from oracle and other tech companies trading down in sympathy. we're watching coach. the stock slipping after the company said it will take a charge of 250 to $300 million to close 70 stores in north america. shares of coach are hovering near a four-year low. 34.51. cramer earlier. trying to cover. finally we want to take a look at darden. also slipping this morning after earnings missed estimates. some of that miss did come from red lobster. remember, that's been classified by the company as a discontinued operation. that stock though down 3%. carl? >> went hen we come back, after twitter ceo stepped down last week, who is going to take his place? according to kara swisher it's more than one person. plus, the empire state is going green. how new york embraced medical

marijuana and one-on-one with the number two company on the cnbc disrupter 50 list, co-founder and co-ceo of warby parker. still keeping our eye on the dow. up 53 points. s&p, we're back in a moment. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. seeing the world in reverse, and i loved every minute of it.

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evenly split here even though there are some pretty strong action. financials as we said earlier help hing things along along with energy. let's send it over to morgan. >> carl, check out regeneron. 10% of patients are stitching. it's the best-selling drug so that could affect second quarter in 201 sales. the firm kept the price target of $283 a share but the stock is trading down about 4 1/2%. the stock is up about 30% over the last year. carl, back to you. >> morgan, thanks. twitter has a management musical chairs under way. their sales leader adam bane making the transition of head of business development. kara swisher is the executive director of re/code. having way too much gun fun talking about some of the moves of twitter. kara, good to talk to you this morning. >> good to talk to you. i'm not having any fun on this

yacht. >> walk us through what they're trying to do over there and what the absence of rogani is going to mean. >> he had a product removed from him because the new head of product is now reporting directly to the ceo dick costolo. that's going to be going to gabrielle stricker head of marketing communication and unit he was running business at global business development had really critical developer relations which is an important thing for twitter, that is moving to adam bane who is -- remains the sales leader. they're boert getting bigger pies. bigger pieces of the pie at twitter. it's similar executive thes. they just get more duties. >> i know you remember a story "the journal" had a month or two ago that roga nrk i was running things under costolo. >> yeah. >> i'm assuming that was completely wrong. >> you know, i don't want to impugn other journals but he wasn't the co-ceo. let's just say. >> yeah. >> as the story imputed.

a lot of changes. those changes were going on when that story was written so that's what alert ee eed me to it. >> you're doing a little bit of your own journalism finding out how these new responsibilities are going to be split. bane will now have business development and revenue. i'm wondering conventional wisdom would say that goes hand in hand but is that too much for one person, especially at a company the way twitter has? >> it's a lot of duties. the ceo has to take a lot of this at hand. costolo has to be much closer to the product and deal making. twitter needs to do more partnerships and friends and a lot of business sort of we just -- we wrote that story earller this week about tv efforts to be close to the tv networks. in that story i sew show, i have the memo of that. it really does need a stronger

length between advertising and partnerships. it makes a lot of sense. developer relations is another thing a adam now has which may move somewhere else under product. people developing on the twitter platform is critical to the future. that might move maybe that doesn't belong there. and then putting market media under marketing communications is interesting. i mean, you know, it was a separate unit before and now it's under marketing communications. but, you know, part of media is getting media companies using the service and making it richer and more -- a better experience for users. it makes sense in terms of where you would move these pieces. >> kara, you've got news as well on weather channel. do you want to break it for us? >> uh-huh. it's not breaking news but it's something that people didn't pay attention to. you know, yahoo! has been moved off ios which comes out in the fall and it's a problematic situation for yahoo! providing data to apple for many years. through the weather app and the stock app. it's preinstalled, the apple is preinstalled on that device.

and my point being that nobody paid attention. it's a critical problem for yahoo! which doesn't have a phone just like google has a phone, you know, apple has a phone, microsoft has a phone and now amazon has a phone. yahoo!s that to create the great apps or app experiences or app services to the big smartphone providers and now it doesn't have the weather app, not providing information to the weather app. data had been provided by the weather channel, ironic. weather channel did an enron around yahoo! and now it's the provider of the weather. it got rid of yahoo! as the middle person. problematic from there. >> i can ehow it's problematic because marissa mayer liked to say, hey, here are the apple apps installed on ios that we power. but at the same time, yahoo!'s weather app right now is better than apple -- yahoo!'s app on ios is better than apple's standard weather app. it shows a ten-day forecast. it has features that apple standard app doesn't have. is it possible that this could shape yahoo! out into doing better with its own apps the

same way apple's maps kind of allow going to get more downloads? >> if they can. but the new weather app the weather channel is providing apple is going to have a fine-day forecast, a lot more stuff. specificity about weather where they have three locations. if you're near beijing but not in beijing the weather is different. the new weather app that weather channel is providing is a better day. that's why apple shifted to it. if weather channel is providing less good technology to yahoo! and the weather app by the weather channel and apple is a better app with better technology, which is going to win? and so yahoo! doesn't have weather information. it also doesn't have stock information. a lot of information is provided by bloomberg and reuters and cnbc. so they're just putting chrome on it. so the question is can yahoo! make a much better experience with other people's stuff and if you're bloomberg or if you're cnbc or if you're anybody, why do you need to have yahoo! as the middle person? why can't you go directly to apple and provide their app.

they have to create apps that are -- they own wholly, i think that's one of the things. and that's why weather channel was allowed to end run them or able to end run yahoo! which it did. end run its own partner. it's interesting. >> kara, great stuff. are youle aing in from a yacht? >> i am. i'm sorry to tell you i am. >> i just wanted to make that clear. >> but that's like going to a coffee shop in san francisco apparently. i've just about had it and can't wait to get back. >> we will see you soon, kara. have a great weekend. i think you're off to a food start. kara swisher joining us on the line. co-executive editor of re/code. kanye west calling the internet ugly at the cannes festival and he wants to start a makeover. kanye offered, why don't you let us do instagram? brings us to this morning's squawk on the tweet. what if they said, yes, what is kanye's vision for fixing

instagram? tweet us @squawkalley. legal marijuana is coming to new york but you won't be able to smoke it. why governor cuomo thinks it's bad but vaporizes is okay. the co-founder and co-ceo of warily parker. rapid prototype a lot of ideas.o being able to pay as we go is crucial for a start up. having to fork out a lot of money up front was risky. we can launch a feature really quick, and if the feature doesn't work, we haven't lost anything, and we can have something up and running in days. and this would not be possible without the cloud. we are now supporting over 25 million users each month.

look at dow ten years as we inch closer to dow 17,000. currently about 29 points away. we actually -- it took about six months to go 15 to 16,000. and if we did it today, it would be about seven months to go from

16 to 17. so interesting the increments have been pretty constant over the last thousand points. >> to think that we were at a market low in 2009, the range was in the 6,000s. we've created a lot of value since the crisis. meantime, new york is poised to legalize medical marijuana in nonsmokeable forms for patients with serious illnesses. the state assembly voted earlier today to approve a plan to allow medical marijuana. senate is getting ready to vote. governor cuomo and legislative leaders announced an agreement that would allow doctors to prescribe marijuana to those with serious diseases, but would not allow the patients to smoke the drug. the drug would be taxed at 7% of gross sales and, interesting why the smoke form continues to have some sort of stigma attached to it. >> it's a little bit bizarre especially because when the dispensaries give out medical marijuana i've read that it's in bud form so then what does the patient have to do with it? if they're going to create their own edible, are there

instructions on how to do that? >> right. >> yeah. >> how do you do that? >> it just seems like the form of the cigarette is bad visuals. it's just, you know, whether it's an electronic cigarette or it's medical marijuana, the image of people smoking has become sort of nongrada in this society. >> maybe he didn't want to have a conflict with businesses or public places, where can you or can you not smoke marijuana. >> sure. >> we'll see how this actually plays out. >> i believe in joe camel. >> and maureen dow and her bad trip in colorado. let's bring in simon hobbs, countdown to the european close of the week. >> i was going to say this is the third session that we've risen in yup but as yes come towards the end of the session that may not be true the p big news we're wait for is for the french economy minister in paris to make a public statement as to what they're going do do with those competing bids for olsten,

general electric? my suspicion is that they will say actually we've got better offers from both of them and, therefore, our involvement over the last two months don't mean we need to veto either of them and, thank you very much socialist government for betting a better offer from france. we will see what they come through with, both teams, se siemens and general electric. the onslaught continues into europe for ceos wanting to bias set there's. the pharmaceuticals has rejected a $47 billion offer from avi which came from north carolina. they again want to tax invert. you can see the results. stock is up 17%. they will argue that actually they're growing sharery well and risen substantially anyway in just this part of the year. so we'll watch that moving within pharmaceuticals. two high profiles ipo nasdaq europe today. urinext spun off by the new york

stock exchange. they actually priced it at 20 euros a share towards the bottom edge and you can see it's fallen from there. tsb is being spun off by lloyds, lloyds bank in the uk. still owned by government. they have to do that to satisfy the regulators. that one was priced to go and bounced a bit at the open. the other thing i wanted to mention to you is that sergio, the ceo of fiat has given interviews that he is suggesting they're going to sell off over $800 million worth of assets, partly their own stock, 2% of uk's holland, the tractor maker which they own, in order to interest to a greater extent u.s. investors in the combined group. fiat chrysler is intended to ipo here. well, i assume here at the new york stock exchange, at the beginning of october. so they're trying to drum up greater support within the u.s. investor community for that and

selling assets as a result. they're going to invest it in some of those higher market -- higher profile up market brands. thank you. it took me a while. it's ad-libbed this section. can you guess? >> no prompter here. >> i'm sorry. >> yes. thank you, simon. >> good-bye. have a great weekend. enjoy the sun. wow. >> first day of summer. there's a look at the markets. dow is up 46. pretty steady here in the middle of the session. and s&p up 4 to 1963. when we come back, disrupting the i glass industry one pair at a time. the cofounder of warily parker number two on the cnbc disrupter 50 list. be back in a moment. and if i tap my geico app here i can pay my bill. tap it here, digital insurance id card.

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take a look at the markets. we're entering that zone here where you're starting to look to see if/when we cross 17,000. 16,961. nice tip from robert, one of our market statisticians one of the best performing component on the dow since 16,000, caterpillar. caterpillar making up over a fifth of the gains since that time. you can recall it wasn't long ago people thought they were in a very deep hole. >> and now cap x is expanding and they're run away with the dow. interesting. from their first store here in new york to latest marter in ship with supermodel we're

following the next guest since the beginning. the number two on our cnbc disrupter 50 list. neil joining us here this morning at post nine. congratulations. >> thank you. >> very proud of you. >> what does it mean to be added to the list in your mind? >> i think it's a big recogniti recognition. it's something we celebrate because we're always trying to disrupt ourselves and figure out how do we sort of think about change as a status quo not as something that happens every couple of years. >> walk us -- you have even made pivots in the recent past when it comes to the balance between bricks and mortar and online. where is your head in that game right now? >> so, it's still the big emphasis is e-commerce. that's what we're most excited about, underrepresented online. and we're very bullish, particularly on mobile. like the you were to walk into our office you would see a lot of people focused on our mobile experience and constantly improving it. i think it's going to be good but even better. we're building this retail

organization so it's just in dallas opening up a store there yesterday. and we think that they're very synerjistic. >> how do you decide when it's time to do a bricks and mortar store? for the most part with e-commerce players and all this transition to mobile, that's who people who think, well, you don't need all of these costs that the other companies like models wearing your glasses and yet you're doing that. so what is different about the way you're doing those things? >> yeah, i think it's very dependent on the category. something like us that lives -- we sell a fashion accessory and people want to touch and feel that at times. they want to see people style in a particular way. they want to see a point of view which is sort of hard to replicate sometimes when -- let's say you're doing photoses without models styled in a particular way. and with our stores, those are a way to feel the brand or we now in our stores, we have these things called the reference desk

which is our equivalent of the apple genius bar where you can go in and ask questions about the brand, get your frames adjusted, find out about your prescription. >> product is one thing and you guys have nailed the iglass market, the the sun glass market with your styles. demographic and market is another. i'm wondering ho you you chose the millennium sect and what you call the post-wealth millennial and how the market forces for that group specifically has made you guys successful? >> it seems like with every day they're growing in purchasing power. so we, i think, our brand really resonates with that set but we're also find that, you know, our demos are shifting a little bit older and in particular more wide spread geographically from just the coast or new york but we obviously have a very big presence as sort of our brand expands beyond like the early adapters. >> how did you pick dallas? was that based on da that that you saw online? >> yeah. both based on data. when we go into a parmarket, we

have a bit-in customer base to blast and immediately have people come to the store but we also had our warby parker class trip where we had a bus go around for over a year in 15 different cities and in cities we would test different locations. we're trying to build that internet ab testing mentality into retail. >> you're not afraid to make comparisons to the genius bar because mickey is on your board, mickey is on the apple board. are there any other ways you can be like a until. >> i think what apple does better than anybody else is they're just thoughtful and very deliberate and they think about everything, whether it's the eco system that they create but also even their packaging and the way an iphone will sort of gently fall out of the case when you're opening that box. we try and think of every single step of that customer experience. >> wow. dos glasses need to be a tech second quarter cesssory? >> i think eventually. i think everything is going to be a tech accessory or just

every accessory includes tech in some way. >> so maybe you will be sold in apple store? >> hopefully maybe. >> or with google glass. >> i was going to say, we went through the whole google glass speculation and told us nothing time after time. you think you find a partner eventually where glasses would become tech bases? >> i think people need to figure out what are the proper use case is. we haven't figured that out quite yet. but, you know, it is going to make sense. when there's a cool technology out now that you can use, contact lenses to measure blood pressure which is helpful for diabetes, that's a specific use case which makes sense. we need to figure out what role buzz eye wear play. >> congratulations. and number two, nice spot. >> great place to be. >> please come back. >> thank you. >> warby parker. we are inching closer and closer to dow 17,000 on the cnbc news line this morning. scott rehn is the senior equity strategist with wells fargo

advisers. scott, happy friday to you. >> same to you, carl. how are you today? >> good. we would be a big benchmark whether we hit it today or next week or next month or whatever. at what point does it bring out some of the mini bears who might not want to sell but at a certain level they could be convinced? >> well, actually, carl, i think we're hearing a lot more bearish type of commentary out there. i'm not exactly sure why. i'm fully confident we're going to end the year above 17,000 in the dow. i think we will be at or slightly above 2,000 in the s&p 500. but you're already hearing a little bit of drumming but from my -- from my perspective, you know, valuations are not stretched. clearly janet yellen said, hey, the fed is not going do do anything with interest rates any time soon. earnings are moving ahead. everything is moving ahead at a modest pace. we have modest inflation. stocks like that environment. that's one reason why we've been going up and one reason why i

think we're going to continue to go up through the balance of the year. hopefully we'll see some pullbacks to give us buying opportunities but in any case i think the market's definitely going to be higher by the end of this year. >> there have been some strategists who are willing to go out on a hlimb and say we co be it at 18,000. 20,000 by the end of the year because there is really no reason for a pullback until we get more definitive answers for the fed, until economic data starts to show some weakness or until earnings get decidedly poor and none of that really looks to happen. what are you looking for in the market to actually reverse this if and when it does finally happen? >> well, you know, right now you almost have to hang your hat on some type of vent risk because the risk, there's not a lot of risk in the economy, at least based upon the work that we're doing. it almost has to be a vent risk. second week in july when china reports their second week gdp.

6 1/2 there or something like that, the market is going to get nervous. if something happens in the middle east with the iraq situation, gets a little trickier and we see oil at 150 or 120 a barrel. that's the type of an event. so i think right now the event risk is really what's out there and that's what you have to hang your hat on. and of course for me as an equity strategist that's the hardest thing to predict. >> scott, you know, it hasn't been that long, middle of march or so we went through a painful lesson on the momentum names. does this big level on the dow make you more comfortable about buying high multiple names or do you continue to look for the cheapest of the bargains? >> carl, i think that -- i think that the momentum names, they're still expensive. i think they are going to lag the rally that we have. let's see if i look over the next course of the next six or 12 months. i think those names are going to lag. 17,000 is kind of a

psychological level. it's certainly not a technical level and it's not one that we're focusing on a lot. but really, carl, for me, i think a lot of those momentum names, they're expensive and those really in general are not the kind of names we want our clients focusing on. >> scott, we'll see what we get today. but thanks so much for talking to us a little bit of insight as we at least approach these levels. see you later. >> all right. you guys have a good weekend. >> you, too. scott wren at wells fargo advisers. up next, we talked about the iwatch at the top of the hour. how should you play apple ahead of that perspective launch? more on that coming up. at a meeting with instagram ceo kanye offered, why don't you let us redo instagram. brings us to this morning's squawk on the tweet. what if they say, okay, what is kanye's vision for fixing instagram? tweet us and we'll get your answers later this hour. dow, 16,965.

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to do one important thing, the video will take your breath away. it's all straight ahead on "the half." carl, see you in a bit. >> sounds good, scott. thanks. reports this morn that apple is set to begin production of a smartwatch in july with an expected launch in october. shares of the company currently higher although the broad market strength today. let's bring in walt, wireless research analyst joining us from 30 rorck. it's good to have you. >> thanks for having me. >> do you think this is a head fake or are we getting somewhere? >> we must be getting somewhere. as we know tim cook talked about launching products across 2014 and it's almost mid year now. so hopefully if it's in "journal t. journal" this is probably going to come to fruition finally here. >> walter, what i wonder is, how much attention should investors pay? apple is so big now. it's going to take a lot to move the needle. you're probably not going to chart 650 bucks for a watch or if you do you won't sell a lot of them. so at what point do we know how much this product is actually going to contribute?

>> i think it's more of a sign post of whether they can deliver some new and innovative products. even if this product alone doesn't generate, you know, the tens or 20 or $30 billion that will actually move the needle it shows that they can deliver something and maybe there's going to be other additional products. re/code conference made a big deal at the best product pipeline in 25 years. this will be a good early test. to your point, at the end of the day it's still an iphone company and the reality is, if the u.s. operators sell more phones because of these leasing programs that they've been launching and it's 5 million more phones than expected which doesn't seem like a whole ton, that's a much bigger deal for this stock and for investors than how good the iwatch is. >> walt, give me just a minute here. i got breaking news recording ge. let's get to mary thompson at the breaking news desk. >> that's right, carl. france economic minister is holding a press conference. the headline are a bit confusing. what we can discern is that

france would accept ge's bid for alstom but with certain conditions. reuter is report that rival siemens bid is serious but the government has made a decision. among those new demands, they seem to be that the french government would hold what he described as a golden share in this 50/50 joint venture with the nuclear assets of siemens. the french government says it's going to be taking a 20% stake in alstom buying this from the billionaire who holds a 29% stake in alstom currently. also the minister saying that any decision centers around this deal need to be centered in france. something essentially ge did propose in its revised offer for alstom. we'll continue to monster it as we see ge stock slightly lower. carl, we'll bring you any other headlines as they cross again

coming from this press conference that's being held in paris right now. >> mary, thank you very much for that. that's big news. mary thompson at the breaking news desk. walt, apologies for the interruption. you were mentioning that you see this more as a sign post but a sign post to what? >> a sign post to whether the company under the new management team or the developing management team can deliver new and exciting innovative products. i think eddie set the bar very high when he talked about having the greatest product line in what he has seen in 25 years. looking at the products that apple has launched in the past 25 years and to say what they're about to launch is better than that sets a pretty high bar. so maybe this is not the killer product but if -- it's certainly one of the many that he's talking about as far as the best in 25 years, you know, people have to look at that and say, all right, maybe i should be delivering what they're promising. >> walter, apple has been doing things later and better for better than a decade at this

point. i'm just wondering with leaks starting to hang on every single detail of these products, do you think there's a chance that a competitor like samsung or pebble can take note and quicklied a just their products to be more competitive before apple gets to the market? >> certainly smartphones before the iphone came out and it changed the category and there were smartphones that came out after the iphone. amazon is trying a little bit late in the game in here with their own product. and apple continues to succeed in the markets that they're targeting. so if you do things better you're going to get market share and you're going to get customers to buy your products. the case of the smartphone i think mark at 9 to 5 mac has done a great job at profiling the acquisitions of people that they've been making in the medical device area that maybe this is something that's new and different that samsung or someone like that just can't catch up with that quickly. >> maybe the way to think about this is if they sell a bunch of watches, even if they don't make a bunch of money off the watches themselves they encroach on android's territory and sell

more iphones. maybe it's a trojan's horse for increased market share. >> do you go along with that? >> look at the last wwdc as far as the new innovations they did on the software side is try to get them more stuck into their eco system. i can use google mail across multiple devices some of the benefits in the new operating system benefits in the new operationing system require you to have an mac and iphone, and other things. i would not sell the concept they can flip this and turn it into a massive services business. they're being valued as an equipment company right now. if you're in their eco system, this is a more recurring revenue services business that could be very valuable. we'll have to see what the fall brings and the summer too. have a great weekend. >> you too. 17,000 is very close, about

35 points away.

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level closed above 16,000. it took a little over six or seven months to hit that 1,000 point level. in terms of the contributions, who is contributing to this gain, catepillar, johnson and johnson and goldman sachs. catepillar was the biggest contribution of all overtime. i want to go back five years to the financial crisis just so show you. the dow is up 159%. more than 10,000 points in this market over the last five years. let's check on the broader markets. the action today, we're seeing record levels here for the s&p 500 as well and we're going on the sixth session of gains, guys. it could be volatility coming in

at the closing bell. >> yeah, and hence the explosion of value at the open. thank you very much, sarah. let's see what is going on at the nasdaq. >> not a great day for tech. in fact, technology is the worst performing sector in today's trade. ibm and hewlett-packard are down. the question is can this trend hold? earnings will be the deciding factor. if you're looking for a big bright spot, blackberry shares continue to rally and investors encouraged by their recent earnings report saying a recovery is still far away. as far as the big tech winners for the weekend. sandisk another winner. guys, back over to you. >> of course we had both ceos.

>> yes, i was going to say between blackberry and amazon, the reports on t mobile, the financing is getting close. >> and, citron stock is spiking. >> at a meeting with instagram ceo, kanye offered why don't you let us redo instagram. what's his vision? your answers are next. again, watching the markets, the dow up. ♪ ♪ over 1.2 billion eyeballs are on us during the two weeks at wimbledon. true tennis fans want to know what's happening, they don't want to just see what's happening, they want to know and understand why it's happening. anybody can just put data up, but we want to get a reaction, make it far more interactive.

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and another twitter followers says harder, better, faster, stronger. >> i thought we might hit 17,000 during the hour, but i guess we will have to leave it for someone else this offer. >> 960 range, but we're close. >> that does it for us here this morning and this week. maybe we'll do it in this hour. welcome to "the halftime show." here is today's plan. man versus machine. a new and disruptive way to invest. should you trust a robo investor with your money? and bidding on the babe. worst trade of the day, the passing out power lifter that went viral for something other than the pounds that he pushes. let's go to