♪ welcome to "squawk alley." got to start with the markets on this thursday. sharply lower across the board, although the dow is now cut its losses by about 50%. a lot of concerns out you there regarding the fed, regarding portugal, regarding some macro data out of essentially all of continental europe. some of the worst nushs on manufacturing output in a number years. here to help us make sense of it all, the chief market strategist with alliance bernstein. good to have you back. >> thank you. my pleasure. >> what do you make of the open and what do you make of how the bulls are trying to make a bit of a stand here in the middle of the session? >> look, i mean, you have incredible complacency in the financial markets.

you've had credit spreads that have collapsed. volatility among the lowest in history. it doesn't take a whole lot to disrupt the markets from these levels and i think that's what we're seeing today. >> complacency in the markets. some are talking about complacency when it comes to central bankers and polemakers in europe. yes, portugal is tiny. art cashin. in the us, half of the economy of north carolina but speaks to the broader problems not addressed. is that a risk going forward into the second half for the u.s. market? >> that's a great point. the banks are doing all they can. they're basically lowering ratings and most importantly trying to instill confidence as to bring corporations to invest more in capital spending people, et cetera. the one big surprise that happened over the last month is we've seen negative sentiment in much of the eurozone. that is a danger. we'll see how that plays out for the second half, but i would focus on the european sentiment,

because i don't think liquidity will be as much a problem. >> what's your world view on u.s. equities for the rest of the year? obviously a lot to get through in the summertime. fed minutes added to that yesterday. how do you see the year shaping up? >> very modest gain. still positive between now and the year-end. prefer japan among, in terms of equity exposure. however, one thing i would do for portfolios can, provide diversification to energy and actually gold. it is a tail risk exposure, a protection, but it will complement equities well. >> on the thought the fed is behind the curve? >> on the -- that is absolutely, and also hedge in geopolitical risks. >> you know, if you look at the factors that drove this market to record highs in the first half of the year, really since the bottom in 2009, you got qe 1, 2, 3, corporate earnings beating expectations. economic data slowly starting to

get better. as you look into the second half, do you see all of those pillars of support now that the fed has put an end date, say, on tapering and other things are looking wobbly? >> a good framing. we could think of all of those factors as driving higher valuation multiples. that's pretty much played out. the next step needs to be earnings growth. and that is why i think you will only see modest gains between now and the year end. you will get earnings growth, but it will not drive more than single digit gains. >> i guess the bar's higher now that that's all priced in. >> the bar is higher and gains softer. the one thing we're missing for it to call for a big downward correction, we just don't have the historical accesses that normally define cyclical peaks. not overinvested in capacity. not hired ahead of growth. we have not seen significant inflation. so while i agree with you, many of the drivers are now becoming more luke warm, we just don't have enough to drive significant correction. >> finally on earnings, you

know, looking for 6%, analysts tend to be conservative, a little, by a few percentage points. that could put us, if not in double digit territory, at least close. is that not good enough? >> i think the market is a discounting mechanism. one thing to remember is there's never, ever been any correlation between the one or two-year earnings growth and market performance. i think earnings are necessary at this point to avoid a significant correction, but i don't think, you know, this is going to drive another big leg up. >> always good to get your point of view. good to see you again. >> thank you. >> joining us from alliance bernstein, what is is a rough market day, getting slowly better. joining us here at post nine, dan, and kayla from sun valley with news. i guess if anyone's making any buzz this morning, kayla, it's got to be aereo. right? . >> that's right, carl. in the news that aereo is

re-filing, going back to the drawing board to essentially become a cable company that pays traditional licensing fees. of course, a sharp turn from the way it was operating before that definitive supreme court ruling last month. i caught up with barry diller, map major investor in aereo whether that route would for aereo would be successful. >> i actually haven't read the filing. i can't comment. >> why wasn't it a cable copy before? >> this is a decision of the supreme court, they rendered, which said that aereo was like a cable company. beyond that, i don't -- >> broadcasters in a ill phoofi called it astonishing choosing to change its din tinkz now after that ruling. of course many of the broadcasters here in sun valley rubbing elbows with barry diller. aereo ceo, not here. nonetheless, could get contentious, except some have already made amends, les moon

yes, sir, of course, a vocal opponent of aereo can, but our colleague of cnbc.com spoke to him last nigh saying he and diller had lunch six weeks ago and agreed not to talk about aereo. never want to talk about it again. they've mailed amends and choose not to discuss that. before i send it back to you, another media deal turned contentious in the last day. that is the two mega dealing in the cable sector on the table. dish networks coming out yesterday, lobbying in washington, instead of being here in sun valley, to ask regulators to block both of those deals. i was able to catch up with directv ceo mike white to ask for his response to dish's opposition to his deal with at&t that's currently proposed. he said, "i prefer to let our testimony speak for itself. as for current management perspective, we both are fully occupied with responding to regulator data requests and preparing for my shareholder vote. if the deal is not approved i

would remain in my role at the discretion of the board." a lot of moving parts in the industry. no better place to be than right here in sun valley, idaho. >> thank you so much, kayla. robbious obviously a lot more it come from kayla tausche. does this feel like a substantive sun valley in terms of deal-making? >> in the fact so many media companies, in the middle of upheavals, seeing these guys try to come together makes sense. >> what about aereo? a u-turn or not? >> the only thing they could do. >> short of shutting down completely. just call it something different. >> what does that mean? calling it a cable company? i haven't read the copyright law recently. how do they operate? >> i assume, pay broadcaster for the right to rebroadcast

content. my guess. >> they have stick tuitie tootk toottiveness. you have to regroup, essentially what we're watching out of that company. meantime, emmy nominations out. netflix makes gains. shares falling with a broader market, showing that their shows are getting a nice reception in hollywood. julia boorstin is in l.a. with the latest. >> carl, no question netflix investment in originals has won hollywood's respect and come a long way since launching "house of cards" just a year and a half ago. the streaming video company won 31 emmy nominations including 13 for "house of cards" and 12 for "orange in the new black" more than double the 14 nominations they drew last year. netflix is increasingly looking like and treated like a cable network, compared to the other cable networks, netflix comes in

third, following hbo, as usual youb dominantas with 99 emmy nmplt oms total and's most nominations for any show, 19 for "game of thrones." fx in second place, 45 nominations including 18 first new tv show "fargo." recognition comes as the stock pulls baaing from new all-time highs and ahead of earnings a week frmonday when investors ho in how fast the company were go its sub xrik scriscribers. and hemlock grove, launches its second season tomorrow didn't draw a single nomination, but it draws what netflix tells me a big, devoted audience of young men with practically no overlap whip "house of cards" audience and a huge following in latin america in particular. last quarter netflix warned those original series can require higher cash payments, but it also praised the importance of originals as a tremendous marketing opportunity.

netflix doesn't release ratings, but we can expect to see a spike in streaming for all of those "hemlock" fan this weekend. >> thank you, julia. talk about marketing. my favorite quote, joe flint, call them the hbos. not emmys. goes to such and such. >> the streamies. everyone is streaming shows on their hbo apps and netflix. >> what would you expect streaming to increase as a result? >> people getting out of the habit of having a's appointment viewing. kind of get when you want it, where you want it, not just on your tv. >> i think these emmy nominations for netflix, continued a ramp-up, has to go a long way to et getting the other guys scared. further proof their model is working and be we're all getting used to it and want it. >> not entirely -- hbo, mothers, addmothers,

-- movies, following that path, a different delivery mechanism. >> next in line, yahoo!? >> working on stuff. >> community? >> working on stuff. >> i think "orange is the black" second new season, a mamazing. not getting more than one episode? you want to binge watch it? >> watch a whole bunch at once. training people the other -- yeah, that way. >> what else does netflix have in the pipeline besides "orange is the new black" and "house of cards." >> maybe"arrested development." develop genre shows, sci-fi shows. none of those yet. a strong area they could go into. what hbo does so well with. back to the markets. dow remains down 87 points. well off the session lows but near session lows still lumber liquidator stocks after the hardwood floor retailer cut profits for the ye citing reduced traffic in its stores and fewer people buying homes this year than in 2013 and

others holding up on renovating floors. stock off session lows, down by 22%. sell-off were pressuring other home improvement type stocks. this home depot, lowe's, both down by greater than 1% on the day. rich greenfield on momentum moves we're seeing coming up later in the hour. also jeff jordan of andreessen horowitz, where venture capital, the future of e-commerce is headed. of course, a lot more coverage of this market sell-off. dow currently down 90 points and s&p not quite with a 1% loss at all. down almost 10 points. "squawk alley" will be right back. (trader vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up - including a proprietary momentum indicator

that makes researching sectors and industries even easier. because at scottrade, our passion is to power yours. and our luggage was immediately... taken to... stolen from... our room. the hotel manager was clearly behind it. he was such a... kind man. con man. my husband wanted to... hug him. strangle him. and to this day we're still in contact with... the manager. the police. i wish we could do that vacation all over again. don't just visit paris. visit tripadvisor paris. [ male announcer ] with millions of reviews, a visit to tripadvisor makes any destination better.

welcomes. crumbs closed its doors in bankruptcy, learning now cnbc's profit star marcus lemonis, kre canno of camping world working on a deal to save the company. working with those parter ins again on a way to pave the way for possible eventual ownership of crumbs. marcus lemonis saying crumbs is a good brand that lost its way. also that the cupcake business is not viable long term unless they diversify. with that crumbs will focus on being a bakery with additional product lines. of course, marcus lemonis, well known for helping to save and kind of bolster small businesses. he's got that key lime business

he worked on and also his partners in the deal will be the fisher family. lemonis fisher acquisitions working on this deal. the family is the family behind the famous dippin' dots ice cream treats. look towards the complementary of this deal, bringing expertise and snack food and dippin' dottingened ap could eventually see crumbing become a viable business again. the prophet himself on "power lunch" today in the 1:00 p.m. hour. tune in. can't wait to the hear what he has to say why he's getting into crumbs. carl, back to you. >> that story, by the way, the national story, dom, just got a lot more interesting. a far cry from the business he already runs. >> absolutely. camping world is one thing. again, if you watch the profit, he does so much work with small businesses.

i remember seeing that key lime pie special and thinking to myself, i want to get a piece of that key lime pie. bring it all together with his experti expertise, the fisher family, dippin' dots, a great way to see a broader line of products besides just cupcakes going into stores, if this deal comes to free igs. >> has 50 stores. not exactly a small business. what he does best. take the tough medicine. we're going to fix this and turn it around. >> i assume a camera there there if it happens. >> hopefully. part of the profit. >> back at newsdesk in hq. and exploded since '08, something is making a lot of money. a look at the biggest winners in the app economy. josh, good morning. >> good morning, carl. you know, that global app economy is actually now equal to the gdp of some small countries. in fact, oak over the last six years, global total app sales

have totaled $30 billion. analysts say that total will be $100 billion by 2020. the two big players in this space, google's play store, offering 1.5 million apps and apple's app store with 1.2 million. which apps are actually the most popular? well, it's games, arccording to app annie, messaginging music, news and dating apps also very popular. now, the top game by revenue in 2013 is actually a game that's free to download, and 35 million people have downloaded puzzle and dragons, published by a california-based gung ho online entertainment. revenues kung from in-app purchases. the "candy crush" saga by king, comes in second. a game about the simpsons rounds out the top five. messaging app line topping the list of top non-game downloads

by revenue. let's you make calls and messages for free. it has almost 500 million users in more than 230 countries. other popular apps include pandora radio, zeus, a dating app, and badu, a social network attracting new users every day. with this many apps available, an limpt alysts warn, you could already, actually seeing users download fewer apps. at this point they have enough apps to cover their basic mobile needs. carl, back to you. >> a huge story, josh. thank you so much. josh lipton. funny, people have been getting rich on this, but curation is tough. tough to be found unless apple deigns, gives you the form to be discovered. >> that's what apple does. push things forward on the google android side, open field for anyone to come in. why you don't get the same quality of apps overall and people have a hard time finding apps. even the apple app store, hard

to find good apps. >> a mom and pop business. create out of your garage if you want. >> the one guy lifted up, and a lot of companies, ea, in there, too. >> who you're up against. when we come back, rich greenfield, btig. aereo's comeback and what's moving in tech with the dow down 94. at legalzoom virtually all yourof important legal matters in just minutes. now it's quicker and easier for you to start your business, protect your family, and launch your dreams. at legalzoom.com we put the law on your side. in a 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.

ugh. heartburn. did someone say burn? try alka seltzer reliefchews. they work just as fast and taste better than tums smoothies assorted fruit. mmm. amazing. yeah, i get that a lot. alka seltzer heartburn reliefchews. enjoy the relief.

we've all seen our share of ads evening eer on-tv or online that annoy us. our next guest says it's gone too far, a new app, add nauseam, a losing online strategy. rich greenfields, median technology an legitimate at btig. good to you have back. >> thanks for having me. >> provocative point of view.

i thought m-- >> at least on television half the country has a dvr, if they want to record it, fast forward through it, they can, but if you look at online, not only is the ad load not skippable, in a lot of this tv everywhere, if you want to watch an nbc show online or watch a tnt show as we showed online, you're literally watching the same ad often over and over again, and you can't fast forward, and we've even see ad loads heavier than on tv itself. >> what is the pain threshold? a 30-second spot? 15, 10? at what point should something be skippable? >> we watched tnt's "the last ship" last week. the first 15 minutes, ad-free. awesome. great experience. wonderful. the problem is, to watch the last 30 minutes of the show. so you're really liking the show. you get 15 minutes in, the last 30 minutes of the show is

interspersed with 20 minutes of ads. many of them the same ads, and sometimes the ad even plays continuously back to back to back. i think when you look at netflix and earlier on the show you were talking about the emmy nominations. when you get used to watching content like "orange is the new black" on netflix or watch "game of thrones" on hbo, or hbo go, using your dvr, stacked up five episodes of "walking dead" before you watch it so you can blow through them, i think living in an online world, it doesn't appreciate that something has changed in a digital world and you're trying to basically enforce the worst of television five to ten years ago. that's really hard to push on consumers. >> yeah, rich. how big a problem is it? commercials designed to entertain. on demand content through your cable company, they don't use the ads. really cheap late-night ads for lawyers and medical devices. you don't even get quality ads. is that also a problem?

>> look, i think it's less of a problem of how bad the ad quality is. the reality is, where you start -- what you just said, they're starting with a 30-second spot. what television enables -- sorry. interactive television, the internet enables, a new experience. advertising online, video advertising online, there is no reason for it to be identical to television. right now, what you see on all of these tv everywhere experiences, whether it's the tnt app or the xfinity app, all are replicating the experience of television versus rethinking, how would you trade your time, meaning what would i engage with? would i give you information, interact, do something interesting beened i don't the traditional car driving around the mountain 30-second spot? i think that's what's missing. rethinking what advertising should look like, and that's the mistake they're making, because they're either driving you to netflix, to piracy or to use a dvr, but making you not want to

watch traditional television on these online apps. >> looking at the nasdaq, rich. bring you to today's session for a moment. seeing a sell-off more than half a percent, valuations increasingly becoming a concern with some of the tech names that you cover. where do you see fair valuations? which ones are overvalued and which ones perhaps are good buying opportunity on the sell-off? >> the most compelling opportunity now, it sold off over the last couple of months, after major acquisitions, but facebook. look at who is dominated mobile. when you look at all of the big media companies, they really don't have a presence on the mobile phone, and this really plays into even the apps we were talking about. not great experiences. if an advertiser wants to reach a consumer, where they're most engaged, on a target or smartphone now, facebook really is by far and away the leading way to do that. i think that's going to continue to make facebook a great story. we'd be buying the stock here. >> heading into earnings season and you talk about the balance

between monetization and the user experience, rich, who's got the best balance? is it facebook? >> i think you have to look at which is the content you have to watch live. who is in the best position to capture advertising and drive user attention, even in an online digital mobile world. i think that's where disney and fox a really stand apart, because they've got the sports content, the much-watched-now content that really a lot of the other companies don't have. one of the drivers why we downgraded viacom as well as discovery communications recently. i think there's going to be more differentiation in how some of the mediaing tos perform versus the whole group trading up over the last two years. >> rich, it's a great note. good to talk to you again. see you soon. >> thank you. >> rich greenfield. count you down to the close. mercifully in the uk and across continental europe, our chief correspondent back at hq. >> talking about all morning, when you see the sea of red

there, the biggest decline is, of course, in in portugal to the left down by more than 4%. concerns what's happening with the largest listed bank there. steve liesman coming up to talk about the bad economic data that's come out of europe overnight as well, or early this morning. show you specifically what's going on with banco espeedido. the holding company of the bank is looking like it's going to have to face some kind of restructuring and the bank and bank custer ins do have exposure, naturally, to the holding company. we're seeing weakness on what's going on there as well, because of the size of the institution, been around seven generations, the market in portugal overall, worst as we showed you. you can see what's happening. building for a couple of days. hence why the sell-off is dramatic over the last several days within portugal. yields rising. let's show you.

the one week of portugal's ten-year yield. that looks dramatic, and it is. look at the one-day gain, for example. 3.97% where the yield stands. now we show you the one year to show you just how much it has declined, and to tell you two stories. one, that it's not nearly as high as before and there had been a perception things were dramatically improving over there. at least enough so the debt could get paid off and still you can look at that one-year chart saying the markets aren't that scared yet, but it is a pretty big rise. look at other portuguese banks as well. you can see weakness there. put you at the top down pie by . market was worried. other banks falling in sympathy. show you portuguese telecom as well, because this company bought the debt of one of the subsidiaries of banco es spirpi

there. bank authorities within portugal. so what we really want to ask, a systemic problem in portugal or an issue with governance making it less endemic and more specific? the answer to that question will unfold over the next coming days or weeks. back to you. >> not making people change in market cap, the size of gdp and so forth. >> no. absolutely not. but i think ultimately when we first started watching this today, it was, wait a minute. is the european problem back in a really big way? >> yep. >> and -- i'm not sure that we have the answer to that yet. >> right. still early day, perhaps. back at hq, thanks. our thanks, too, dan ackerman. come back soon. >> thank you. when we return, exclusive interview with andreessen horowitz. the former ceo of open table, president of paypal, jeff

jordan, coming up. and trading over two hours into the session. dow down triple digits, and "squawk alley" continues in a minute. fraud resolution department. ugh, we don't have that. what should i tell him? just make that super annoying modem noise... (shuuuuuuuh....zzzzzzzz...de ee...dong...shuuuhh...) hello? not all credit report sites are equal. classic. experian.com members get personalized help plus fraud resolution support. join now at experian.com. with enrollment in experian credit tracker. veggies you're cool... reworking the menu. mayo, corn dogs...you are so out of here! ahh... the complete balanced nutrition of great tasting ensure. 24 vitamins and minerals. 9 grams of protein... with 30% less sugars than before. ensure, your #1 dr. recommended brand now introduces ensure active. muscle health. clear protein drink and high protein.

targeted nutrition to feed your active life. ensure. take life in.

welcome back to "squawk alley." check out am reit. stock soaring on news the shopping center owner and operator regency centers offering to buy it for about $433 million, or $22 a share. this to expand in texas and in

georgia. regency said open to improving the offer as well. how both are trading. you can see, amreit up 12% on the day's trade. back to you. >> thanks. stocks hit by global fears pap what's causing the world to worry? steve liesman adds perspective. >> carl, wasn't just one report. it was a bevy of reports leading to this little headline behind us. world of worry today, that came out. you saw the red numbers, michelle talked about it. the european close. start now, though, with asia here. machine orders in japan punching 19.5%. it could have been one month. these numbers are volatile. what worries me about this number is what it may be saying about the united states capital spending. a lot of our machines from over there. interesting to see if whether or not capital spending in the u.s. can do what people expect, which is to grow in the second half of the year. china also their export numbers. 7.2. we love that number, except china, usually double digits. a sign of health there. and a sign whether or not we are

importing stuff here. kweps about china. less than economists expected. moving now, going to i think europe. italy industrial production down 1.2%. that was the better of some of the other numbers we saw. if you look at france, i think it was the next one here. what's the next one? france. down 1.7%. economists over at pan thee yjo, second quarter gdp contraction in france. monday, germany numbers, also bad. down 1.8%. and finally, portugal. michelle talking about the bank there. banco espirito, raising questions about the banking system there, and that hurt greece, sold only $1.5 billion in bonds. looking for $2.5 billion sale. pulled it back. all in contrast to the united states, this piece here, showed jobless claims falling again. hitting cyclical lows. a big contrast going on of

global weakness, but pretty good numbers in the united states. the jobless claims number, employment report we got last thursday as well. let me show you our cnbc rapid update bringing in wholesale trade numbers today. just minus .1. tracking 3.21, average now. and q3, 3.2%. carl, not as good as it should be over here, given how far we fell, but it's sure looking better over here. the big question for investors, iy in, ask yourself today, how serious, how pronounced, and persistent, is that global weak inside and how much might it affect us here in the united states. carl? >> how much will it affect corporate earnings. look at 3% plus growth, steve, i would think that could be enough to keep the earnings momentum going, and to actually see the kind of revenue growth that we need to keep the stock market going higher. >> right. but the big "if" sara, if the numbers of estimates, of course. right? we've seen some estimates come down. remember, the story i did a couple months ago was the street

was looking for 4% growth. from when we originally reported we're down about .7, .8, nice to see something reverse that. better vehicle sales numbers. decent residential real estate data come in. but seeing the trade data. remember, that minus 3% we got in the first quarter, half of that decline was accounted for through the trade conduit. >> steve, thanks a lot. good stuff. steve liesman, walking us through the macro picture today. over to seema mody and the nasdaq. >> of you a the lows of the day, but now it, at one point all nasdaq 100 stocks were trading in negative territory. what makes the sell-off interesting, not just tech and so-called can momentum stocks weighing. consumer stocks leading declines on the nasdaq 100. worst performing, tractor supplies after the quarterly update weighing on other stocks in the space.

yes, we continue to see heightened volatility in the usual suspects. so-called momentum stocks. facebook in particular. top on the nasdaq 100 trade, today the stock sells off. by de badu, yahoo! and amazon leading declines. given the volatility in these speck stocks, got to look at some of the biggest losers. pan doria, yelp and linkingin, down double digits just this week. return of volatility, nervousness in the markets, how long that will hold dercfinitela conversation here on wall street it. back to you. >> thanks, seema. when we return, jeff jordan of andreessen horowitz. kayla will join us, talk where venture capital is headed. that exclusive from sun valley in a minute. meantime, rick santelli, what are you watching? >> in one hour, and 20 minutes, we're go to have a reopening of the 30-year bonds issued a couple months ago. how will today's activity affect that auction?

what can that auction tell us? one thing i can tell you now, the lowest yields at auction for a 30 year in over a year, and we're going to talk about the sin in synonymous, all after the break.

coming up, top of the hour. what's happening with this market? we seem to be coming back now. what's behind the big swings and where do we go from here?

breaking it down today, plus the playbook playoffs "halftime" huddle tradition. half way through for trader of the year. all u all seven competitors in the house today to face off, go face to face and shake things up. tweet us your votes. and kayla tausche? >> reporter: scott, thank you so much. we are here with jeff jordan. a partner at andrieesosen horo z horowitz. his resume reads like a best-of silicon valley. board member at air b & b and pinterest, executive roles and ebay and paypal. who better to talk with jeff jordan who joins me here in sun valley. >> thanks for having me. appreciate it. >> start with the markets. multiday sell-off in tech stocks, media stocks. is this the market correction that we had been expecting given where valuations have reached? >> you know, it's hard to say.

a month ago, exact say same storying add stocks covered. we try not to -- we're long-term investors with a decade-plus horizon and try not to be overly focused on what the market says. it's an incredibly ripe time for innovation and disruption and we think at this point because of mobile, the cloud, sass, a lot of great companies are being formed. they will have great values. not all of them will have great values. >> you took open table public in what you called the worst market ever in mid-2009. arguably, the best market ever to take a company public. relatively low volatility and near all-time highs. do you see the quality deterioratin deteriorating? >> one of the reasons we took it public when we did, our bankers showed analyses, after a window's been closed, the first people to go out typically overperform and get very good investor acceptance, and then as the window stays open for a

while, the quality tends to deteriorate. the window's been open for a while. so i think a lot of the first companies out are great companies. we're investors in szulily, if the window's open a year and haven't gone already, i would worry the average quality deteriorates overtime. >> took it public 2009. did well. good advice from bankers. bittersweet to see it sold to priceline? >> you know a little. i love the priceline guys. known them forever. jeff boyd a good friend, a former ceo. when you put your heart, soul and sweat and tears into something like that you want to see it go on forever. there's an element of -- my baby's been gone. that said, if there's any place i'd like too see it go, priceline is high on the list. unbelievable record with aqua

swiaqua -- acquisitions. bookings.com, one of the two best in the history of the internet. if there's a place my baby had to go, glad it's there. >> and trip adviser, sale process rolling. an initial ask, put it up for sale. wondering, look at those two companies and other companies that may be would have been a fit, if not as good a fit for open table, why do you think priceline is the right business model? why not someone else? >> fascinating. one of the reasons we ended up going public with open table. it's not obvious who wants to own an restaurant application. restaurant companies aren't the appropriate home. you know? so it wasn't obvious who the acquirers were. when we made short list of people priceline on it and trip adviser because consumers talking about experiences, enabling -- consumers traveling enabling the -- closing the loop between discussion in transactions. both potentially appropriate

hope homes. >> two companies you work with closely on the board. air b & b and pinterest i mentioned earlier. both blockbuster brands at this point. profitable? >> they are both in growth mode. they both are -- the businesses themselves are growing extremely strongly. we do not counsel them to be profitable at this stage. growth is more important. >> at a $10 billion valuation, a company like air b & b, investors say, go public at a e althougher valuation? a chance that company raised money when the markets were hot and it will have to give away some value? >> we believe air b & budget has an opportunity to be an be iconic franchise. i had the privilege being there early. we think their to space and travel what ebay is to goods. we think the sky's the limit. >> we have to go soon. i'd be remiss not to ask about paypal. you convinced the board to buy paypal several years ago. watching them trying to get them

to spin it back out. the answer? >> i believe ebay and paypal should be linked. the synergies between the two companies are unbelievable. you could try to maintain it those synergies in a commercial deal, but given how fast technology is changing, i think that's impossible. done it five years ago, for example, you wouldn't have contemplated mobile. you don't contemplate mobile in a deal, you're dead. >> a question at post nine? >> i don't. take it to break. you guyed finished? >> oh, yeah. i think we are. i think we're near the end of the show, but, jeff, you always have such's great insight. we'll have you back. amazing. >> have me back anytime here. >> maybe rope you over to new york at some point. >> great. love that opportunity. >> jeff jordan. now, carl, back to you. >> thanks, kayla tausche, sun valley today. markets continue to pair losses. hang in a pattern here, it seems, for a while. at least. dow down triple dump iigits, bu

barely. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.

that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business.

welcome back to the new show, "squawk alley." rick santelli with today's edition of the "santelli exchange." the first place to start, one hour and nine minutes away from the 30-year bond auction. why is that more important today than any other 30-year bond auction? because i think it's going to give us information. could be a turning point on the day for an equity market that is well off its lows, but also off its best bounce levels.

why? it will give us an insights into the psyche of both foreign investors and domestic investors at a time where equities are under a bit a turmoil. contagion, systemic or the fact synonymous isn't necessarily truly snom miss. that's the point today. i would think snom miss ynonymo better way. stabilized is not synonymous with mixed. many over the last year or so looking at europe from the vantage point of stabilized, correct. but stable iilized isn't fixed has darker issues associated to it, because all the things done in europe to stabilize europe, in my opinion, have pulled a lot of the growth that they're not going to get. why? because in essence, they've mortgaged. second, income not debt. more true to the u.s.

macro credential policy is not synonymous with risk tamer just because the fed says it doesn't mean systemic risk is under control through regulatory policy. show me one time the fed has worn warned of an impending financial disaster. exit planning, different than a true exit plan, but maybe one of the better ones, deficit versus debt. we all know the deficit, the budget deficit is getting smaller. definitely a good thing, but the national debt keeps going up. unless the budget deficit becomes a surplus, and that last one as we approach $18 trillion is huge. carl? back to you. >> thank you so much, rick santelli. back to the nyse here. bob pisani on the floor, what's moving in the middle of the session? >> what's happening, european close. look at germany. very weak at the outset. german trading. stabilized fairly quickly. i think an important factor, in our stabilization. one blowback here e, the concerns over portuguese debt.

peripheral debt in general in europe translated into nice moves on the upside for interest stenstive rates. reits, utilities, telecom stocks all to the up side. likely beneficiaries of people taking out money from the peripheral debt of europe. s&p 500. quick sharp downtown at the open. you see the move down. then immediately stopped around 10:00, and you can see, started moving to the up side. sideways for about an hour now. home improvements stocks, weakness, shocked at numbers of lumber liquidator, caught everybody by surprise. bottom line, remodeling business not as strong or as good as last year. important things, home depot and lowe's, big people in the space, down only 1%. some of the building products companies, usg, beacon, also on the weak side, seeing declines recently in those stocks as well. want to note quickly, oil. asset straight days of decline,

west texas intermediate. >> thank you, bob pisani. when we come back, one of our disrupter 50. another digital brand moving into brick and mortar. another new store, in just a minute. so, your site gave me this "credit report card" thing. can i get my actual credit report... like, the one the bank sees? [ male voice ] sheesh, i feel like i'm being interrogated over here. [ male voice ] she's onto us. dump her. [ pay phone rings ] hello? oh, man. that never gets old. no, it does not. [ female announcer ] not all credit report sites are equal. experian.com members get personalized help and a real credit report. join now at experian.com with enrollment in experian credit tracker.

e join now at experian.com financial noise financial noise financial noise financial noise my motheit's delicious. toffee in the world. so now we've turned her toffee into a business.

my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side.

we took a long look at beauty e-commerce and subscription site birch box. interrupter 50 about to open their first brick and mortar store here in manhattan. the first look before tomorrowal open. featuring full-size products on the site and offer the option to byob, or build your own birch box, offering classes, option to book a hair, nail or makeup appointme appointment. we caught up with them. here's what they had to say. >> the reality is, that the majority of shoppers are buying beauty in the real world, and we knew that, because we asked subscribers where they buy product. it inspired us to take what it great about birch box, inspiring people to discover beauty and create an experience a little different. >> you can actually see behind us, the only place in the whole world where you can choose the samples to go into your can

birchbox, a unique experience we think our customers will love. also in the store, as opposed to the website, we have the opportunity to interact in person with our customers. so we're actually going to have services. you can get your hair done. your makeup or nails done in the lower level of the store. >> we've actually done a lot in the past four years. launched internationally. in four countries. the u.s., france, uk and spain. the store is, our first store. a flagship store. kind of a test and try. we like to try things out and, yeah, definitely there could be more birchbox stores. >> interesting. look at ba noboebody beauanobos >> and brick and mortars, how they're struggling. talking to the ceo saying what can you teach those retailers going from online to in-store? ebays, click and collect

service. amazon's kind of in the physical realm with the locker service as well. >> yes. >> interesting to watch these guys and see if they can get the success they have seen online. >> retail is tough. >> parker, packed. >> doing pretty well. the stock market not as well. cashin does indicate to watch maybe a reduction in the risk profile, now that europe is closed, but we'll see. meantime, toss it over to scott wapner and "the half." hey, scott. this is your time. now, go out there and take it! >> announcer: in the first half of 2014, not everybody is playing nice. >> left all the risk behind you. when you left football. you've got to get beta, buddy. >> facebook, my friend, it's done. not going higher. >> announcer: today on the "halftime," a status check on a year-long battle for profits. >> how much money did you make today? >> i missed you, too. >> announcer: all