seema mody at the nasdaq with more. >> good morning. right. the sell-off at the nasdaq, broad based. social media, biotech, large cap tech moving to the down side in general. investors questioning how much farther this market can run. especially after what has been a stellar run for the nasdaq. remember, investors did not sell in may and go away. in fact, since early may, the nasdaq up about 8%. outperforming the s&p 500 and the dow. and when it comes to tech, analysts will look for signs of an improvement in i.t. spending, but with the fed, so much in focus, it's important to remember historically speaking data shows that technology on average outperforms in a rising rate environment. earnings, of course, will be a focus for tech investors over the next few weeks and experts say it could confirm markets move to the upside or derail the rally. expecting a 12.4% jump in

earnings on average. highest out of any sector. the bar set high. intel, ibm and ebay set to report earnings next week. in terms of today, yes, the nasdaq underperforming the zs&p 500 an dow. and large tech cap contributing to the nasdaq's underperformance. back to you. >> seema mody at the nasdaq, thank you. dow lower earlier on, but for more on the big swing in the nasdaq especially what that can mean for tech overall, bring in daniel lives, senior analyst with fbi capital markets joining us here at post nine. good to see you. welcome back. today is the year anniversary of the nasdaq's 57 2-week low. up 28%. wipe is this renewed fear creeping into the market today? >> earnings season. you need to see the companies deliver. a lot of the stocks run. 2%, 3%, ibm, microsoft, among others, struggling. investors are fearing this sort

of 2q earning season. you need to see companies do numbers up for the second half. >> samsung today, from a consumer's standpoint -- making a lot of money, but down year over year. forecast for, the company for the quarter just ended, not good. is it a consumer issue or enterprise issue? >> i think both. consumer and enterprise. you see a lot more companies going after the consumer. almost an arms race, apple it's, amazons, samsungs. on the enterprise side, tough spending environment. some areas, big data, cyber security, cloud are strong. to get big deals in 15 years, as hard as we've seen, that's the issue going into 2q, investors in fear with the print coming up next week. >> doesn't help on an earnings expectations, for earnening, people looking for more out of tech than just about any other sector. >> yeah. beaten raises that a lot of investors are expecting. you start to get numbers come out and if you start to see some

negative expectations going into the second half, you could see a pause in some of the names. again, i think it's a bipolar spending entirmt in terms of some areas. cloud, cyber, social, really seeing some of the strength, where traditional enterprises still tough. as companies are holding on to the wallet to not spend that much. >> you mentioned social. let's look at twitter today. i saw it down 8%. we've seen upgrades start coming in as the stocks bounced off 30 and people say, maybe user growth might reexcelerate? same story at facebook. pricing looks strong. what could possibly go wrong in the quarter? why is that vulnerable here? >> it's vulnerable just because there's a piece of pie that a lot of these guys are going after. expectations on the street starting to get ahead of themselves, and also i think m & a is key here, too. investors want to see m & a, out of some of the names. yelp, groupon, and ever sinces price open table, the big

question, especially with sun valley. >> sull valley begins this week. are your expectations high for conversations that lead to something big actually happening? >> yeah. i think we're on the cusp of a surge of m & a. seen obviously a number of deals in tech, but if you look on social internet, convergence of consumer enterprise, you'll see this, i think, the start of a big m & a cycle. especially a lot of these tech companies, trying to skate where the puck's going. there's a scarcity of growth stories, and that's where i think you'll see a lot of m & a potentially coming out of sun valley over the next three, six months. >> especially with executives clearly aware that the cost of capital is probably going to go up. >> it is as fertile of an m & a cycle that i can remember in tech. i think part of that is just, you have companies with more, more cash in some countries. they can raise capital basically next to nothing, and in a tough spending environment, there's a

scarcity of growth stories, both on social, enterprise consumer, why it's going to mean an m & a frenzy and gets dikicked off he. besides world cup, talking a lot of m & a in sun valley. >> yegg p almost mentioned first. why's that? why so special? >> about the local presence. it's all about local. that's why yelp and groupon, the focus, ever since open table went out, i think now yelp is front and the center. is it a yahoo!? is it a google? potentially a microsoft? again, i'd be shocked if we don't see a massive m & a cycle going into year end as a lot of these tech ceos recognize where growth is. >> people with big story in the "times" today, no bargains anywhere. in art, real estate, no bargains in stock. why isn't like an ibm a bargain? growth challenged and the story is well out there and the bears have had their day? what are your favorites in terms of valuations now? >> microsoft is a name we really like in terms of what nadal is

doing on the move to the cloud and again i think could start to maybe turn around nokia and the overall move. >> you like nadel? >> gasoline in the tank after steve balm ulm balmer. going on the m & a warpath on cloud. >> having divested a lot of the stuff that wasn't working? >> and cloud, big date da names, spelunk, fitting in naturally with an acquisition. look at oracle, s.a.p., other names struggling for growth. i think you see the ellisons, mcdermotts, and nadel included looking atm m. >> we'll see what happens in the next couple of weeks. daniel, thanks for coming in from fbr. to dominic chu and a quick market check. >> ford motor moving lower off

session lows about 1%. automaker recalling about 1,001 vehicles in north america in six separate recall actions a problem with front axles not installed properly during the assembly process. consisting of a number of various models. 2013 to 2014 ford taurus models and linking mks and mkt models and 2012 through '14 for edge model. links, ford, mkss, mkts, taurus, all part of the recall. check with your dealer or ford.com to see if any of your vehicles are on there. ford did say, carl that there have been no injuries, deaths or anything of the like related to any of these recalls. back to you. >> dom, thank you. dominic chu. bag day in washington state. marijuana legal for recreation's use. for more, from nbc affiliate king tv, live in seattle this morning. good morning, theresa. >> reporter: right. good morning to you, carl.

this is one of the only shops with their license and are ready to open. called cannabis city, in the soto neighborhood, south of are downtown if you've been to seattle, where the stadiums are. the company hired extra security. cameras on both sides of the shop here, because you know this is a cash-only business. they just put this tape up here, a ribbon cutting to show the end of prohibition, if you there. a line that's started here. they've got extra security, again, for the line control, crowd control. the first person to arrive, deb green. talked to her. she arrived 3:00 yesterday. she wanted to be a part of this. you know, folks here have been waiting 18 months since folks passed i-502 legalizing pot here in our state, and there's a lot of concern, because they've only been given ten pounds of weed. what they could get from suppliers. we saw the shipment arrive around 6:00, the shelves were barren earlier. they're sorting through the inventory hoping to open up the

doors at noon. many wanted to be part of this historic day. back to you. >> trying to look at the pictures you're sending. would you argue with the police line the situation is orderly or does this have the potential to turn into a real irk is is? circus? railroad ord >> reporter: orderly, a bit of a media circus, if you will. folks giving out biscuits and bob marley music, if you will. the line we expect to pick up in about a half our or so. 12:00 we were told, because they knew the inventory was going to come from bremerton, about an hour and a half south from us. expecting a good day. people are honking in support, but a lot of folks just excited to be part of this very historic day in our state. >> yes. although that's not a lot of inventory for the number of people they are expecting. that's going to be an interesting picture over the next hour. >> reporter: ten pounds. that's it. limit it to about 2 grams. yeah. >> 2 grams.

interesting day. historic day, as theresa says, in the state of washington. tranc thank you. when we come brakucome back the main growers. jus if you want to the know where walmart is headed check out am sann behind the philosophy with new ceo bill simon. you've seen kevin oh li'leao after companies on the show and on ar shark tank," how will they handle the heat? sitting down with a company and a little more later on. a quick check of the markets. dow's down 112 on the worst day for the nasdaq since early april. we are back in a minute.

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?ñ?h take a look at the markets. not shaping up to about good day in the early part of the session. dow's down triple digits, s&p down 13, nasdaq now down 61 as that picture on the tech heavy index gets a little worse, keeping our eye on that closely. meantime, retailers in washington state have begun to open doors this morning to sell for the first time legal recreation's marijuana. with all the buzz about a possible pot short aft, is envy the only green consumers could be left with? on the cnbc newsline, one of washington's licensed growers, co-founder of sea of green farms, bob leeds, joining us from a pot retail shop in

bellington, washington, overed its doors a few moments ago. good to have you. >> thank you. >> a historic day for the state as they try to do what colorado's done right and avoid colorado's mistakes. what did you grow before you got your license? >> i didn't grow anything. i hadn't seen a pot plant until two years ago. i'm retired, and i came out of retirement to do this. >> how quickly have you been able to get up and running? what's your inventory like? how much land do you grow on? what's your yield like? >> we are an in-door hydroponic grow. we got our license on march 18th of this year. we immediately began growing, and by mid-june had about 40 pounds of product available for sale. >> are you making a big delivery today? >> we are at -- excuse me -- top shelf here in bellingham, washington. witnessed the first sale about three minutes ago.

it's really exciting. there's probably 200 people lined up at the door. >> when you sold your first patch, so to speak what was your profit like? >> i'm not sure there was any property in this first batch. >> is it expensive to grow? >> it is expensive to grow. we've sunk about $2 million into the process so far. >> $2 million? and how did you finance that? >> i financed it out of my retirement plan, out of cds that i had and put a mortgage on my house. >> so you obviously, you came out of retirement to do this. you used your savings. you obviously believe this is here for the long haul, not going away anytime soon? >> i just want people to know that this is a really legitimate business. we are in this for the long haul. we think that we can produce the best can dis around.

>> -- best cannabis around. >> you don't have a lot of competition, but that's going to grow over time. >> yes. >> i mean, are you -- are you -- can you name your own price and how long do you think you can actually do that? >> we haven't done that. we've tried to keep our prices down, and to be competitive. we don't want to stick the public or our customers with a huge price now and have them never come back to us. we've kept it at $10 or less a gram. and so the retail stores that we're selling to, they can keep it at a reasonable price also. and you have to take into consideration that washington state's going to charge those same customers 25% tax. >> right. >> with all of those retailers, obviously, looking to get inventory, how do you decide who gets what? >> we actually have four that we're dealing with, and that's all that we intend to deal with for probably the first six months.

>> and then finally, i have to ask you. you came out of retirement to get into this new industry. what did you do before you retired? >> the very last job i had, i worked for 15 years with a nonprofit organization that dealt with people who were disabled and on social security benefits. and we tried to help them protect those benefits while they were seeing if they really could work. and before that, i was a banker. >> well, they say there are no second acts in life, bob, you appear to be starting one. thanks so much for your time today. >> you're welcome. >> bob leeds, co-founder of sea of green farms joining us from washington state, where recreational marijuana is now on sale. back to the markets now. the dow down 122. s&p's down a little more than 14, and the nasdaq down 64. check out shares of delta. the worst performer on the s&p. slipping about 4%. yesterday delta one of the current losers coming on the

heels of a profit warning out air france, klm and lufthansa. and electric automaker sued in china over trademark infringement for the tesla name nap could delay the expansion into china hurting shares to the tune of about 2%. when we come back, going after amazon and borrowing ideas along the way. the ceo of walmart usa breaks down the company's new strategy later in the hour. plus, if you've seen this show, "shark tank" kevin o'leary can be a little harsh. check this out. >> one of the lowest margin commodities on earth. >> that hurts. >> it's the truth. >> you called me a cockroach. >> he sits down, after the break.

today we kick off a new

series with kevin o'leary, talking how to make it big. you may recognize a few start-ups including rap genius, we first introduced you to the founder a few monthsation. see how he stands up to a shark. >> you search, find the rap, use rap genius app and click on different lines confusing or interesting to you and see an annotation telling the back story. sometimes it's the artists themselves telling the back story, or perhaps a literary critic. >> do you own that content? >> we own the annotations, whatever. that's not what we're concerned about. >> why do you hate money so much? >> i'm talking to a therapist right now. >> we are. >> in six months? w. google, facebook and twitter and rap genius, and it is -- >> you will be spoken that way, in 12 months? >> people are already comparing us to google. mark cuban actually just tweeted, searching yourself on

rap genius is the new google of yourself. >> is he an investor? >> maybe one day. >> dory, you? >> milk and honey a platform allowing women to design their own shoes. customers that return make up 26% of total revenue and average order value, 240. >> you already have competitors that are selling your product, shoes. why wouldn't they simply copy what you've done and crush you like the cockroach you are right now? >> when you're used to doing things 10,000 units at a time with massive budgets and massive factories, the idea of scaling that down to one at a time won't make sense for them. >> when did you start making money? >> there's no reason at this time next year we're not profitable. >> okay. nick, you're in one of the lowest margin commodities on earth. >> ah, that hurts. >> it's the truth. >> he called me a cockroach. >> speak the truth. why try category that already tried and failed. >> we send them everything we need to cook a fantastic meal at home.

$12 per portion. to fix that disgusting food supply chain that exists in the united states. >> when are you going to be profitable? >> we'll be at least ten times as big this time next year. >> ten times larger. will you be profitable? >> probably not profitable, but most likely a household name. >> kelly, your competitor is well known. >> loverly, lover.ly, finding people to high and things to buy. >> you're suggesting it is not? >> compares them to the knot is like comparing google to the "new york times." the "new york times" is a massive media property. what lover.ly does, from 40 different contact sites. >> they get married. why care about you again? >> a strategy. bridesmaids, friends helping them plan. >> when are you going to become profitable? >> half way through this year. >> very interesting. two of you think you'll be making money, and two don't even care. i know you all think you're

going to be successful, but i bet if we come back in 12 months we may find that's not the case. >> always a tough pitch in front of mr. wonderful. meantime, pandora moving lower through the session. jewel wulia boorstin has more. >> shares down over 6.5% over concerns of high royalty rates and growing competition. google bought a start-up allows users to make customized play lists and streaming for prime subscribers and apple's acquisition of beats. today's decline comes as taylor swift ohpines the "wall street journal" about fan power and constant re-invention saying music has a valley. the op-ed notes that only 21% of revenue in the crippled music industry comes from subscription and streaming services is like pandora's. the "new york times" profiled a new service called drop.fm, all

the high costs and trends raising concerns about pandoras future. >> 7% drop will get people's attention, julia. thanks. markets are about to close in the u kmpk and continental europe. trade data showed german exports and imports fell more than expected in may. a surprise drop in uk and adding to the sent. . dragging down airlines with full year profit citing overcapacity, weak prices on the lon hauls. after lufthansa lowered guidance last month. and commerce bank down sharply. the german bank in settlements talks with u.s. authorities over dealings with iran and other countries blacklisted by the united states. commercial bank could end up paying at least $500 million until penalties. that's according to the "new york times." when we come back, why is walmart trying to be more like amazon? the kceo of wm wvalmart u.s.,

breaking don the strategy. the nasdaq leads the way lower, currently down some 68 points. we've not had a 2% drop on the nas since early april. dan niles breaks it down when "squawk alley" continues. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

welcome back to "squawk alley." let's check out the big momentum

stocks. a lot of tech related, hit hard today. priceline for online travel and amazon.com, netflix, tesla, all losing ground. you can see red arrows across the board. anywhere from 2.5 to 4% to the down side. as markets turn, these stog stocks lead the way to the down side. carl, very much in focus for traders today. >> thank you, dominic chu. and markets broadly well beyond tech and social, obviously where the focus of the pain is. dow down 145 now. nasdaq down 72. joining us for the rest of the hour here at post known, the chief correspondent of mashtab. nice to have you. on the phone, dan niles. dan good to talk to you this morning. good morning. >> good morning, carl. how are you? >> well, watching this, getting interesting. on a short-term basis, is today, does it feel like an inflection point at all? >> i mean this is a follow-up from, really, go back to last

year. so last year the s&p was up 30%, but if you look at the morgan stanley new technology basket, that was actually up 105%. so last year was all about buying growth. didn't care if it was profitable. didn't care if it was ever going to be profitable and the stocks went up. in a lot of cases, it looked a lot like the late '90s in that regard. look at this year, what happened was, the stocks peaked out in late february and that same new technology basket, it dropped 27% between late february and early may. then, of course, it had a nice bounce. bounced about 26% up until july 1st. you're seeing now, i think, getting closer to earnings. remember, earnings season in april, companies that had issues that were in this basket, ate of them went down over 50% after having already fallen a lot. now people are focusing on the fact these companies are going to actually have to put up numbers, and they've bounced

over 25% from their lows. so, you know, in early may. and it's still going to be scary. there's no valuation support if there's any problems, because these companies a lot of them, don't make any money. >> right. and i'm thinking to all of the upgrades we've seen on the kinds of names you're talking about over the last two or three weeks. trying to re-establish faith in user growth and the various metrics we watch. are we always going to be one step behind? >> the thing is, doing it for a while as a view, and remember in 2000, when a lot of those high fliers that were sort of unprofitable names in technology, they came down. you had all of these rallies in between, and it really took a couple of years before you went ahead and sorted out the winners from the losers. i think you're going to go through a really long process, and you're going to get vicious sell-offs followed by valleys. the good news is, there's a lot of great companies in technology that have gotten new products coming out.

that have gotten new types of technologies that are profitable, and that's what we're really trying to focus on. apple obviously has new products coming out later this year. it's trading at low double digit pe below the s&p 500, and a lot of technologies around that, smaller companies, we actually like. >> dan, one of the things i'm thinking about here is this is a seasonal trough for a lot of these companies. just came off all the big announcements. we had google io, apple wwc. good events, interesting, not a lot of takeaway products for consumers. there were promises of products that are coming later. in fact, even the product that people wanted most from google io, the moto 360 did not materialize. think thi i think that contended into the summer slump, waiting for the fall to products to show up and to me that it drags everything down.

even for something like netflix, people aren't buying more streaming boxes, not buying blu-ray anymore, looking for set-top boxes. not a lot of new stuff out there. it's that weird moment where no one really know what's to do, and people are not excited about tech, but i think they will get excited again in the fall. >> well, i think that that's partially true, but look at yesterday. i mean, you had a pretty sharp sell-off in high growth stocks yesterday as well. today is a follow-on to that. noticed, apple was up a couple percent. so i think you're right, there is a bit of a lull, but you're seeing companies that are executing well preannouncing upside. synapt synaptics, it looks like that's a technology that will work its way through all out there. nfc communications. we've been talking for a while about able to make payments from your cell phone. that's in at least the three, four years talking about it, but it looks like a new apple phone

cominging out later this year will have that technology embedded in it. a company like nxp, they'll do well, and then mobile gains, we'll all want to play games. a small cap company, glu mobile, produced a new kim kardashian game. talk about what the social impacts are, but that game has been the top -- it's in the top ten downloads from apple in terms of the growth thing. so these are new things that are coming, and you're right in that there's a lull here. obviously the new apple phone isn't coming soon. but if you're nxp, synaptics or glue mobile, things that will drive the demand in the next six months and apple makes money, nxp, synaptics and glue turning profitable. look at the companies trading at ten times revenues, with no profitability for a couple of years. >> right. >> and not even positive cash flow. if anything goes wrong, you're absolutely dead.

whereas, at least with apple, you know they're highly profitable. making a lot of money, and below the market. that's something you can sink your teeth into. >> i knew this would lead to the kardashians, dan. >> we've got to talk about them. right? >> we'll talk to you next time. thanks so much. >> all right. >> take care, carl. >> founding partner at alpha one capital. when we come back, a bad quarter for samsung. operating profit of the cell phone maker, two year low. quarterly profit down year over year. the company caught unexpectedly by low demand. the "journal" has a long piece on apple and sam cooke saying the cook is refashioning to expand the company's board, known for loyalty to steve jobs. also a great quote. former employee on the difference. steve a wartime ceo, tim is a peacetime ceo trying to be a little more collaborative, so to speak. when we come back, a lot more of the improving job

market. isn't creating more consumer spending, the word from ceo of walmart bill simon, joining us in a minute. first, rick santelli what are youwatching today? >> my camera man. kind of slow today. watching productivity. why? the sum of the economy might not be equal to the perks. that is key. we'll go over all of that arithmetic after the break.

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coming up, bulls slowing down big time? a big, bold prediction. as the cupcake crumbles. more stocks like crumbs in the market in danger of becoming what one-hit wonders, and you won't believe who a new york yankees fan is suing for $10 million. our worst trade of date. all straight ahead on the "half." carl, see you in a bit. >> thanks. 500 small businesses pitching their products to the world's largest retailer in bentonville, arkansas, while a distribution deal with walmart is an incredible opportunity, the retailers sales and traffic sluggish more than five quarters. courtney reagan is live with a first on cnbc interview with the head of walmart u.s., bill simon. hey, courtney? >> reporter: hi, good morning to you, carl. i am joined here at walmart headquarters by bill simon. he is the kceo of walmart u.s.

walmart made a big pledge. spent $250 billion on products made in the u.s. and supporting u.s. jobs by the year 2024. the world business network, worrying about profit margins. it's expensive to produce in the u.s. how will you protect the profit margins? >> the economics are changing. that's what this is about. an open call for the first time ever we've invited anybody who makes or assembles a product in the u.s. to come and show what they have and we've seen exciting products already in the day's 1yu69 started. economics are starting. a generational shift with the labor components rising in asia. demand poor products rising in asia. transportation costs increasing, and lower energy costs domestically, there are categories that are already less expensive to manufacture in the u.s. that old notion that it's going to be more expensive because it's made in the u.s. is not the case. right now we're seeing products that are the same price or less than they are manufactured outside of the u.s., and that's

why the momentum in this program is building. >> how many business deals shhave you accepted so far today? do you know? >> i don't know the overall. we've got about 900, just under 900 meetings today. about 100 going on at a time over the course of the day. i personally bought three items already this morning. really fun. >> great. so we're talking about made in the usa. focus on the united states economy. unemployment rate fell 6.1%. but walmart sale, traffic, pretty sluggish. what's going on? where's the disconnect? >> yes. i think the economic numbers, unemployment numbers particularly have been difficult to read with the number of people dropping out of the work force, and i think it's going to take a while. six months or a year, for those numbers to balance out. you'll see drop in the rate, and that then as more people come back into the workforce, that might change again. hopefully after six years we start to gain traction in the u.s. that traction is coming at the top end. i think the middle down is pretty challenged. >> is that the problem with

sales, your consumers don't have as much disposable income to spend? >> retail in general, not robust in the last six years, in the last 12 months pr s particularl. you're seeing cat gores that start to grow in our business, a good run with our apparel business. we've seen growth in our meat and produce segment. we're starting to see pockets of growth in categories and pockets of growth in geographies. hopefully, that's a sign of some early, you know, early optimistic news. >> and walmart sometimes sees a boost from holiday, fourth of july, mother's day, father's day. are you able to share, if you've seen that trend continue, with the fourth of july that just passed? >> we have. all the way through the recession in the six years, our customers never lost faith. that's what's been really exciting to watch. it's been difficult for them, but they found ways to navigate the difficulty and nerve are stopped buying christmas presents or celebrating memorial day, fourth of july, east

halloween, didn't quit buying back-to-school products for their kids. just bought different things, adapted, adjusted and hunkered down in between the periods to make it up. that resilience is a cause for optimism. >> are you seeing sort of periods of time where sales are relatively flat and then you get a boost, from things like fourth of july? >> we do. that's what we see. we see robust growth periods as people celebrate, buy their needs, celebrate their wants and then they figure it out how to deal with difficult economic situations, or flat household income, kind of where the country's been over the last six years. >> walmart has been focused and expanding its store base. both with the neighborhood markets and the express formats as well the big box stores. when does canalization happen between online, between neighborhood markets pulling away from the big box stores? >> trying to look at it differently. looking at it from a customer's perspective insped are a traditional retailer's

perspective. we have to adapt and anticipate where the customer's going to be. and our super center are still doing a fantastic job at that stock up trip. there's none better. no format better in retail for that stock up trip. over the last four, five years, the fill-in trip has been challenged from the growth rate in dollar it stores and drug stores and the preponderance of small stores close in to the customer. while we still have a great, a great stock-up trip, we see that in our ticket size, that fill-in trip was challenged. that's why we're building neighborhood markets in closer to the customer and the broegro rate, a super market hybrid, among best in the supermarket quadrant. reported 5% same-store sales in that segment. >> why the super centers? if the neighborhood express markets are doing so much better? do you need the super centers? traffic is still relatively flat

to down? >> we look at the opportunity to build a super center as the way to serve customer demand. from the customer sir spective. a market, a trade area not served in that stock up occasion, we're building super centers, but not as many at our peak. were building hundreds at first, not near that now. with respect to online sale, e-commerce is a term the industry uses. i think the customer looks for ways to buy things and want the most convenient ways. sometimes on a mobile device and sometimes online and sometimes in a store. we think we have the opportunity to serve the customer in all three of those area, and in the intersection of all of those areas. so by order it online, might pick it up at a store. order in a store and shipped to your house. we're trying to change our thinking to ackaccommodate a changing customer. >> thanks so much. >> make sure you get a chance.

>> we'll go in and see the presentation opinions thank you so much, bill. now back to carl and the gang down at the new york stock exchange. >> thanks, courtney. great stuff. joining us with the head of walmart u.s. head to the cme group. rick santelli, "the santelli exchange. >> hi. in the frame. making progress here in chicago. listen, we're making progress on the economy as well. i talked to peter bookfort today. i give credit to a real straight shooting economist. when i asked peter, what i hear from so many of my sources, how far do we use our shovels to dig into economic data? and his answer actually was a good answer. keep it apples to apples. seasonally adjusted data, whether looking at jobs, you know, various economic data points, that it is very much contagious right now to dig deeper than we used to, because so many things just aren't adding up quite right. now, today we are getting a big correction.

the fact that the nasdaq is leading it does make some of my training sources a little bit happy, because that seems to be where the most whipped euphoria happened to have been residing in that sector, but look at friday. 288,000 jobs. look at the jolts report today. granted, there are issues. 19% year over year may to may on the job openings, up 19%? that isn't bad. 15% on quits. why is that good? because if the bravery factor of those that have jobs rises, to the point where they can quit, to look for better opportunity, that's also a sign of healing. now, i understand that every one of these categories, when you start to dig down, doesn't look at-of-as good as maybe it could, whether the sectors, leisure, not the best jobs maybe, part time much more, a much tighter market than full time, but in the end, the one thing that we always can come back to that gives a notion that the sum of our improving parts just doesn't seem to add up to an economy

that the treasury market is pricing aggressively is quarterly non-farm productivity. jock now if we add up all of the quarters from the first quarter of 2008 to present, you know what it comes out to? 1.42%. the japanese market, for two decades has underdelivered on productivity. they are paying a price. at this point it's great to see improvement. i will always acknowledge it, but this number has to get much higher if we're going see the economy get hiealthy and rates o up for the right reason. >> thank you so much. and new apps from public parking spots to hard to get restaurant reservations. called the rise of jerk tech. and the city of san francisco is entering the fray. that debate, next on "squawk alley." plus, keeping our eyes on the markets. nasdaq now down 16. not had a 2% move lower on the nasdaq since april 10th. back in a minute.

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ever circlealed the block endlessly wishing there were an etzer way to find parking? there's an app. the city of france wansan franc to shut it down. here's why were. >> yes, carl. almost 9:00 a.m. here in san francisco and a lot of the prime, paing spots, they're already gone. of course, finding parking in any big city is always a headache. right? bought new start-up calmed monkey parking has a solution.

it's called auctioning off public parking. sounds easy to use, but the city of san francisco says it's illegal, and they want it shut down by this friday. >> you're talking about a company that is taking a public asset and trying to make nothing more than a private profit. why are we getting involved? because public transit, the public right of way, is exactly what governments are supposed to be focused on. >> reporter: now, the city's also asking apple to remove monkey parking from its app store. apple declining comment. typically when apple receive as letter from the government, it demands the developer get in line with local laws or the app is pulled. monkey parking for its part telling us, listen, they think of themselves as a legal service, because their argument is they're not selling public parking. they're telling you information about the space. they now say they're reviewing legal options.

two other similar parking apps called sweech and park mobile, trying to work with the city on this. we've seen this tension between start-ups and be politicians and regulators across the country involved in a sharing economy, from uber to air and b. at leastship say there's a difference between those start-ups and parking apps selling public goods. either way, the city wants the app shut down by this friday, or monkey parking could face civil penalties up to $2,500 per transaction. carl, back to you. >> big money, even in san francisco. josh, thank you so much. we want know how you feel about this new phenomenon, so-called jerk tech, selling something you don't own with the use of an app or website. go to cnbc.com/vote. we're asking, how do you feel about apps that resell free parks or restaurant reservations? capital at work, or capitalism at its worst?

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before the break we asked how do you feel about apps that resell free parking spaces or restaurant reservations, the so-called jerk tech is a capitalism at work or at its worst. results, i think, capitalism at its worst. 55/45. what do you make of that? >> they don't own it. you know, you can kind of, anything that's maybe publicly owned you can sort of say, hey, we're going to sell it. you can't sell something you don't own, period, but, it's so easy to make apps. the barrier for getting into businesses and starting apps is so much lower. i don't think the people care. they get shut down, they're create baboon park. they'll do something else. >> interesting the way tech gets ahead of us in one way or another. a couple points out of washington today. john harwood has those. >> learning that the white house is requesting from congress $3.7

billion for dealing with the child border crisis on america's southern border. that's twice as much as we originally thought. it's money both for the department of health and human services to take care of some of those children, process them, also border patrol, air yell surveillance, messages to discourage others from coming across the border. congress is likely to approve this. a response from the speaker saying we'll look at it closely through the appropriations process, although the speaker said his request for the usa of national guard wasn't addressed in this proposal. the second piece of news, carl, that the republicans are going to be holding their 2016 nominating convention in the city of cleveland, ohio. this is a play for a state that democrats have carried the last couple of cycles. tritt critical swing state, ohio is and republicans are going to try to address that vulnerability. >> all they need now is lebron. >> exactly right.

>> john harwood. a few seconds left here, lance, joining us on a day nasdaq is down 75 points. your broad point, until the fall comes and a big whale, apple starts to put products on the dor board -- >> a big boat dragging smaller boats behind it. a long time since we've seen a big product from them. the fall is critical. iphone, smartwatch. >> thanks for coming in today. chief correspondent. over earn to the judge, scott wapner and "the half." >> right to it. a sharp sell-off for stocks. new questions whether the bulls are growing ever more tired as the dow recently hits 17,000 a growing number of market watchers becoming more cautious. we have traders today. stephanie link with me, as well as joe and pete najarian and josh brown. small and mid cap stocks, worst two-day sell-off in three months. technology stocks rolling over, bi