sara, the dow doesn't see a clear story to the down side today. intel, united health, chevron, leaders to the down side today. no clear sector story. no clear data story there. we are seeing retailers bounce on back to school, bucking the trend, but we'll follow the markets as we continue "squawk alley" from here. thanks so much, sara. good to see you, and "squawk alley" begins right now. it's 8:00 a.m. at google headquarters in mountain view, california. 11:00 here's at post nine on wall street and "squawk alley" is live. ♪ welcome to "squawk alley" on this tuesday morning. first up, for the first time

ever, usage of apple the ios operating system is slipping behind android. ios traffic fell las month to just under 45%, a little behind android. they were neck and neck for the most part. now android has been the leader in terms of install base for quite some time, but this is the first time its beaten apple on actual usage numbers. sees, jon fortt numbers converge. >> hello. >> good morning. seeing numbers converge, and android had had the market share for its install base for some time as we noted. they have a bigger user base overall. this is about data. what does it mean we're finally seeing apple slip? >> it doesn't matter. doesn't matter at all. here's why. android does not equal google, first of all. a number of different companies out there, oems using android

devices without google installed. other apps in china don't accrue to google. it doesn't matter also because if ios has enough people in its growing base, and people who are buying things. either digital goods or physical goods, through the device. that's been their key lead is, they've got the people who are buying. so their install base is more valuable because of that. people surfing on the internet on devices that may or may not run google apps, doesn't matter. >> say the iphone 6 launches this fall as we expect. do you think installs usage and purchases, do you think we will see that, see spike after that phone launches? >> absolutely. we typically do. this is the cycle of the year where apple has a big design change. but often leads to even more buying than usual. it's probably going to be higher margin buying, if this bigger phone is out there, and maybe even carries a higher price tag, but then at the same time, what you also see when apple comes out with a new design is, lower

margins overall, because they are the start-up costs for the factories that cost them more to tool these things and pump out the new designs. a give and take. they see a surge in market share certainly. >> we always talk about ecosystem. and how in this dnd age the ecosystem is so important. you get a user to buy a phone. or to buy a device of some sort. you want them to stay as long as possible. inside that ecosystem, to buy, to send e-mails, use media, data. does this give you any doubt about apple's ecosystem? that it's investing so much in? >> it doesn't. the reason why, it's not a zero-sum game. just because android's ecosystem is growing doesn't mean it's growing healthfully, right? fragmentation in android. not everybody son the latest version of are android. because they're using it doesn't mean they're all using the same version. also, just because android is going doesn't mean ios isn't also growing. they're growing in a healthy way. when people get an ios device they update to the latest version of the operating system that tends to make for a

stronger ecosystem for apple also. so it's kind of an apples and oranges to use the phrase comparison here. >> nice. see what you did there. >> yeah. look at this graphic one more time. i know you say it doesn't matter, but these are big moves. 10 percentage points for both ios to the down side, android to the up side. to see that in the course of a little more than one quarter, that's a big move. >> and share nopt abot absolute numbers. you're seeing operating systems, not ecosystems. android is not an ecosystem. there's a google ecosystem inside android, an amazon ecosystem inside android. there's a shuemy ecosystem inside android. a samsung ecosystem playing inside awful these. android itself alone is not an ecosystem. >> our tech yogi. bring this in perspective, putting concerns at ease. jon fortt. we'll talk more tech in a few

moments. we want to send it over in the meantime to dominic chu in headquarters. >> technology and biotechnology, stocks moving higher better than expected quarterly profits on surging demand for its treatment for macular degenerations and eye disease. sales including research collaboration payments from a french klugmaker drumped to $66 million, topping forecasts as well. you can see shares up by now close to 3% near session high. back to you. >> quite a move for that stock year to date, too, dom. pretty closely watched stock in that sector, too. a check on the marketsoverall, dow losses are steeping at this hour. currently that index down an 74 points. we told you intel is one of the leaders to the down side there. s&p is down about 9. nasdaq down 15. we did see a better ism services print the best since 2005. we saw a ton of positive earnings move, too, but none is

enough to stem the decline in the major averages right now. you can see all of those markets are in the red. we also want to get a check on shares of target. retailer slipping this morning after the company lowering its forecast for the second quarter. it also announced that massive data breach is going to end up costing the company about $148 million, including potential future claims that they could be on the hook for. that stock down 2.5% to date. 3.25% this week alone. on the flich sip side, shares o coach rallying after fourth quarter revenue topped estimates. coach is the single best gainer on the s&p up nearly 5%. expectations for that retailer had been low. >> maybe michael coors wants to be compared to them now? >> maybe they do, but when you look at it year to date, and in the last year, that stock down 35%. michael coors pretty big in that. >> but today -- not a bad comparison. >> all right. when we come back on "squawk

alley," a new part of steve jobs' legend never told until now. we have that story, plus bipartisanship is rare in congress lately, but today, start-ups are bringing red and blue together. republican daryl ryn eisen, promoting start-up day across america. and the company behind goinging hangouts brings its latest technology. "squawk alley" is back in a moment. [bell rings] ♪ time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim,

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welcome back. i'm eamon javers in washington. u.s. officials confirmed a u.s. army major jern a two-star general, was one of the officials killed today in an insider attack at an afghan military training facility in cabal. a very high-ranking u.s. army official killed today, according to u.s. -- excuse me, according to isaf, the incident involved local afghan and international security assistance force troops at the marshal fahim university in cafghanistan. an insider attack involving somebody wearing an afghan military uniform attacking and a two-star army general has died

at the scene. back to you. >> eamon javers in washington, thank you. 11:10 on the east coast here on "squawk alley" joined on the cnbc line by kevin o'leary of "shark tank" fame. mr. wonderful. we're happy to have him on our program this morning. there you are in person. to what do we owe this honor, kevin? good to see you. >> yes. >> our conversation on the other side of the break, talking about the converging market share for data and network usage between androids, platform and ios's platform. apple had been in the lead. android catching up . the question for you, kevin, they say blackberry's ecosystem isn't even big enough to make ton to this list. i know you're frequently talking about blackberry. what do you think about that? >> well i think this really foretells what's going to happen to blackberry. i've always used the bmw automotive model as a survival. in other words, they have 5% market share of the global

automotive business and their profitable and a successful company. i think you have to get to 5% at blackberry stage, whether it's on the operating system or the handsets or both, and they're nowhere near that now. the ceo just declared today he's finished with the restructuring leaving shareholders to have, what's next? other than an acquisition. if this guy doesn't celt company, i think it goes to zero. >> moving on, more trouble for the tablet market, it seems. according to a report, samsung may see difficulty shipping as many tax as it expected this year. the company wanted to ship 60 million units to out-ship apple but it appears those numbers will fall short. the article also says samsung will offer more sales in the second half of the year to put the pressure on competition. jon fortt, we got some news last week that samsung was having trouble in the mobile market. what does this make you think about the company struggles? >> apple has already shipped 30 million units this year.

when you count the first two quarters they've reported. up to date, probably shipped a lot more than that. samsung shipped around 20 million. way behind. in samsung ships 40 million through the rest of the year they have to stuff the channel with product, new product and old product and discount it. for a company that's already having profit concerns, that ought to be scary to investors, if they actually end up following through with that. apple is in a much better position. >> kevin, a company that has profit concerns, it has margin concerns as we often discuss. now trying to discount a lot of its product to get it out the door and in the hands of more customers. in general, how long can a company last on the discount cycle? >> i think it can last a very long time. the bigger question i think we should all ask is, what is the long-term prognosis for tablets? as i look at the form and factor of iphones and samsung note 3s growing their surface, perhaps a tablet just becomes an iphone that you can't make any phone

calls on. and, there was, just becomes extinct. i don't have any applications on my tablet that i can't use on my iphone, and vice versa on the android environment, too. a i'm concerned, for both companies including apple, a pretty lackluster performance on tablets on the last quarter and it's thi second biggest product. i need to know what the long-term destiny is before i can get excited about either platform. i think tax in the long run will be verticals for enterprise, not for consumers. they could become a very small business in terms of consumer electronics. >> kevin, you're almost right there, i think. there will be a tablet application in vertical markets but for consumers tablets are pc. not extensions of the phone, they're pcs. apple as the leaders in the market hat to decide are they going to make the ipad more pc like, back off it and make it more of a niche product and have the mac and even more

cannibalization to consider there. >> and in line with the comments last week about crashing, wondering how many players there can be in this market and who the end audience will be? we'll continue to watch that. finally today, check out retailmenot. the stock crushed this morning after second quarter profit missed analyst estimates. shares now down just about 50% since going public last year. we spoke to the ceo of retailmenot the day it went public and he tries to explain the difference between his company and groupon. here's what he said. >> quite profitable, made money from day one and i think we ultimately offer a very different business model that groupon. they're a grade busineseat busi we, they help small companies give discounts sporadically. we help small business get

discounts every day. >> still a company that aggregates coupons. stock down 25% on earnings. seems like a risky endeavor, especially given how healthy the economy is becoming. how do you feel about about some of these discount coupon companies now that it economy is as good as it has been in years? >> i hate companies that are beholdenen in giant entities like google or any other search portal, because that's basically what's going on here. they're poaching. a great analogy in nature. i look at the pilot fish that swims around sharks to get scraps after they eat a seal. every once in a while the shark chows down a pilot fish in error and the rest of the community gets depressed, but only a few seconds, because they know they have to live with the shark to survive. same with a company like this. google changes algorithm, the stock gets crushed 20%. i don't want to own that. i don't know why anybody does.

i hate that business. >> a shark analogy, though from a shark. i like that, kevin. i like it. >> what can a company, kevin, like this do to have its business model be more sustainable? nothing this company can do because it's so beholden on google? >> if i were a shareholder right now i would ask the ceo and pressure are the board, sell me to google. sell me to google competitors. sell me. i'm not a long-term independent business moldal and will have margins crushed. smell the roses when you're pair sydic. couponing is not a great way to make money or sustained margins. look at brands. i once tried to buy 13 at once in paris and asked for a discount. and the woman there said to me, if you can't afford this tie, just buy one. brand helps. i don't think discounting would be a good idea, and they don't need coupons. retailers hate this kind of thing. not a long-term good business.

>> especially at this point in the cycle when they're trying to keep brands intact. this company may not be a groupon but they're down in sympathy, 1 1/3% today, moved as kro the sector. we'll see how investors continue to feel about the long-term prospects, for now, kevin, thanks for joining us. see you soon. >> take care. >> great conversation. inspired by apple co-founder steve jobs, walt mossberg's latest article from re/code hones in on the possibility of sharing your home wi-fi network with strangers, unrestricted by the passwords we've come to expect. walt mossberg is co-executi edi or re/code, joining us now. separate from the your home network, running off the same makes this possible pu's think it's a good idea. why? >> yeah, jon, i do. guess, first of all, guest networks are built into most routers. of course, that raises the first problem which is that most

people have no interest in touching their router settings, even if they knew how. i kind of are compared it to disabling a bomb. you know? you never know which wire is going to be the right wire to click. but this could be solved. the s.a. calls on the industry to say, you've already got this guest network thing. let's make it easy for people to use. let's make it safe so that the wall, the fire wall between the guest network and your main home network is believable, and give people the power to limit the amount of are bandwidth they want to share to cut off the occasional bandwidth log or free rider. >> i really like the spirit of this, and i was at the cable show earlier this year. comcast was talking about it. trying to do it. of course, an investor in you and owner of us, other company, including charter. qualcomm sees it as the future

beyond lte, to share the networks. i'm curious about the free part. i mean, i like the spirit of it, but don't you sort of need somebody paying in there somewhere to make sure as you said, that we don't end up with bandwidth hogs? >> i'm not against, look, against comcast or some of these other guys, what they're doing. saying, well, it's only sfrabl you're one of our subscribers. that's the business model there. i'm just saying, you know, i've always been a pro-consumer guy. i just think, let's also, not necessarily only, or, you know, mutually exclusive, but let's let consumers who are already paying decide if they want to share some fraction of their bandwidth so that, you know, you can walk down the street with your smartphone, and, you know, you're in a bad reception area. and you can keep checking e-mail or whatever you're doing by logging into wi-fi as you're in range.

that was the story steve jobs told me years ago, that got him interested in this. he wanted to be able to do that. he wasn't looking to play a netflix movie on somebody else's wi-fi, just wanted to keep using the basic functions of his phone. >> walt, we're in an age now where people are taught to be very secure about their online interactions, especially with strangers. it seems farfetched in august 2014 that you could convince a wide swath of the population that this is a good idea. but now you have facebook and google investing in drones to bring wi-fi to more of the masses. do you think that strategy will replace jobs' vision? >> sure. it might. it well might. depends on how reliable it is how well its done what does it cost, how secure it is. all of those things, and, of course, we haven't seen that yet. you remember also that ten years

ago, everyone imagined that by now there would be a lot of cities which would have municipal wi-fi available everywhere and we don't see that either. so, this was just an attempt to say, hey, this is capability already in routers. you, the consumer, could choose to do this, but it's -- but it's tricky, and it's not simple. it's not controllable. and i'm calling in this essay for the industry to step up and make what always exists much more usable for those people that want to share. >> mavg marks a lot of sense, . hope it happens. maybe the carriers and cable companies will ship out new routers with a separate network capability built in and people won't have to do it themselves. thanks. and just a reminder, cnbc and re/code have a content sharing partnership. part of the family. >> we will see how that strategy ends up developing going

forward. when "squawk alley" comes back, for terminally ill patients sometimes social media can help provide the last best hope of getting better. but is the it fair? we'll explore that on the other side of this break. fice and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote and see why 92% of our members plan to stay for life.

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when they've exhausted hope for medicine on the market and turned away from clinical trial, patients with serious diseases often seek desperate measures. increasingly turning to another front in the battle to get experimental drugs. meg? >> that's right. all day today talking about the controversial practice of getting drugs not yet approved by the fda to the sickest of patients. some of those patients turn to compassionate use. away of trying experimental drug outside of clinical trials when they can't quell because of their age or severity of their disease. it's a complicated process and drugmakers ises to agree to provide the experimental medicine. take josh hardy, an 8-year-old whose battled kidney cancer since a baby.

he got a viral infection earlier this year after having a bone marrow transplant to treat his cancer and couldn't get access to the experimental medicine his doctors thought could help him. his family and supporters start add social media campaign that went viral including a petition on change.org that garnered almost 20,000 signatures. the company ultimately start add new clinical trial and enrolled josh as the first patient. they said josh's story helped accelerate discussions with the fda, and josh isn't alone. last year there were 21 campaigns on change.org for compassionate use. garnering an average of 275,000 signatures each, and that's grown steadily over the last five years. already this year, 17 compassionate use petitions attracted an average of almost 400,000 signatures each. facebook, twitter and youtube also have proven to be powerful tools but the public pressure doesn't always work. in fact, josh is an exception. some experts say social media is

create inequities. >> the problem with social media and compassionate use, it it fa people who know how to be easy, how to organize a campaign, make the internet work for you, hire a p.r. firm, you get more attention than the meaner says, i'm private. >> these campaigns show a system not working for all patients in need. josh hardy's mom, though, says he's now recovering at home, which she shared with supporters in a facebook post. you may wonder why did drug companies say no? coming up on "power lunch," how drugmakers consider compassionate use requests, against getting therapies to market for the broader population. guys? >> thanks, meg. this makes me think, also, of the ebola outbreak we have right now. a couple of americans who are coming back here for treatment now got this experimental treatment. people are wondering, why wasn't this used on the africans contracting ebola all this time? does it have to do with this compassionate use issue? is it another issue of, if you

have nor clout if you're an american versus not, you get better access? >> a lot of questions about that. and i did read that this could have been a compassionate use situation, these patients were able to get the drug that's unapproved and not in trials for humans yet through compassionate use, but a lot of questions of inequity and different rules about compassionate use. in the uk discussing the saatchi bill, that would change the way doctors can prescribe drugs there. differ around the world and lots of confess. a really important question on this whole ebola issue now. >> a topic that hits home with many americans. unfortunately, you've done a ton of reporting on this. >> vie viewers can learn more, k out extended coverage on our website. find profiles of josh hardy and others who have taken their fight public plus just go to cnbc.com. >> we'll do that.

thanks to meg back at headquarters. another huge rally in new england. workers at supermarket chain market basket coming out in support of their fired ceo yet again. now stepping up pressure on management to reinstate him, or accept his offertory buy the company. the family-owned chain in turmoil since june when the board controlled fired a ed his cousin. hundreds refused to deliver foods to the chain's 71 stores for the last two week. you're looking at a live picture of tewksbury, massachusetts, the headquarters of market basket. >> jon. thanks. coming up, one of the rarest sights in the country these days. bipartisanship in congress. today republican darrell issa and a democrat are working together on behalf of start-ups. they're both with us, next on "squawk alley." in today's market, a lot can happen in a second.

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welcome back. count you down to the close in the uk and across continental europe. at this hour, share, closing mostly in the green, though off session highs and markets continue to rebound from heavy losses last week, and a slew of earnings boost investors sentiment there. look at map. markets mixed and off high there's. watching financials in europe. reporting a slump in second

quarter profit heard by the crisis facing banco espirito san santo. owning a stake a writedown on that. seeing shares of that stock up in the green today. german automakers also some of today's biggest movers. bmw reporting second quarter operating prost that rose 26%, came in above forecast and boosted by strong china sales, bmw closing up by just a fraction of 1%. when those markets closed just moments ago. start-up dap across america, a national event spearheaded by two former small business owners turned congressmen. aentrepreneurship around the country, they join us first on cnbc. on the phone, colorado democratic congressman jared polis and joined by california republican darrell issa chair of the house oversight and government reform committee. gentlemen, good to have you today. >> well, thank you. >> thanks for having us both on. >> and covering this month-long

tribute, if you will, to start-ups. >> we're excited to see what you have in store. i'll start with congressman polis, who joins us on the phone. you started a company, sold it to liberty media about ten years ago. i'm wondering what you thought was ripe in the environment then for auentrepreneurs like yourse missing from today's dialogue? >> one of the reasons that represent issa and i put this together was to get 30 members of congress to visit start jurps in their district. there is a lot more going on. better support and more accelerators and incubators when i started in the mid-80s, ice li isolated and alone. today we want to help take them to the next level. >> congressman issa, is this the beginning of something? it's hopeful seeing you get together lice this. lots of legislative things can

you do to help small business and start jurps. start-ups. is that coming next from are two? >> i think it will come. jared and i fought against legislation such at sopa we felt could endanger the start-up capability not just in silicon valley but anywhere you have an internet connection. do we want to continue to do it? absolutely. this month we're highlighting companies as diverse at 3d printing, maker, out of brooklyn, and a company that a woman started up because of a blood clot and decided to go on the internet and market, decision, fashion stockings. in jared's district, my district or quite frankly in the far reaches of the united states is part of what year wanting to promote and have members see in

their own districts. >> congressman polis, start jurjurp -- start-upped garnished a lot of attention. seeing start-ups, if you could call it, facebook going public with $100 billion valuations. increasingly a large part of the economy. but you have the jobs act, a lot of other policies around start-ups, i wonder what hope to get out of today just by bringing more attention to this base? >> well, today's start-up is tomorrow 's great company. you look at all the start-ups from five or 40, 50 years ago like intel. frankly, i've been very frustrated. the administration's implementation of the jobs act, we still don't have funding on more than almost 20 years after the effort was passed and we're working to help that get issued. really today and in this month is a chance to highlight

start-ups's unlike established businesses with lobbying cores and are well represented in d.c., too often start-ups aren't at the dinner table. of course, when you're not at the dinner table, you're not on the menu and that's why we're trying to make sure start ju-up have a voice. >> i wonder in your own area, congressman polis, you've got marijuana start-ups cropping up, to use the term. how do you feel about that? obviously, colorado is doing things differently from the federal government, but does that count as entrepreneurship? >> we just had a entrepreneurship roundtable here in fort collins this morning. one an industrial hemp company. we also have, as you know, marijuana dispense ris and product companies here in colorado. it's certainly one of the new frontiers of entrepreneurships. entrepreneurs are always going up against establishments and interests and trying to find new

ways to follow the law and grow their business. particularly challenges in the marijuana industry as we sort out the discrepancies between state and federal law. one of the biggest impediment, access to banking, remains an impediment we've been working on clarifying. >> you are both planning on drawing attention and visiting some start-ups today. congressman issa, you are folked on a 3d pring printer. what makes it unique and you want to spotlight? >> it's more a matter of becoming a international or national entity while still a very small -- i also mentioned one that's located in irvine, california. rejuva health. here's a company fairly new. only has four employees. probably less than $1 million, but could be the next spanx. they're producing an innovative group of products and a product

fwrorn a problem, years ago they wouldn't have been able to start because without the direct access to the internet, their ability to get distribution in the compression stocking market probably would have been impossible. so when we try to look at these companies, we're looking at companies that can create products that meet, wants and needs for the american people, the people of the world, that are now positive that wouldn't otherwise be possible, and what jared and i both snow, he said it very well, there is no lobby group for the microstart-up. there is no lobby group for the new idea. if we cannot promote incubators and call attention to companies that may or may not grow to be very successful, then there is no lobby for them. jared's point on the jobs act is exactly right. this was bipartisan legislation that has not been fully implemented. jared also alluded to choke point. the fact that -- >> right. >> banking capability for companies legal at least in one state are being withheld.

all of these are areas in which jared and i and others can work on a bipartisan basis. >> sure. congressman, on this inaugural day for start-ups, appreciate you both joining us today and look forward to following your efforts in this space. you heard it here, folks. american congressional bipartisanship at work here on "squawk alley." congressman jared polis and darrell issa this morning. >> getting along very well. coming up, this looks a lot like the future. a company with the technology behind google hangout streaming tells us the next place you'll see this tech noth and what it means for day to day life. you're watching "squawk alley." 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.

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coming up top of the hour on the "halftime," a name you probably never heard of but he says will double in the next few years. with the putin wild card in the deck who is instability in russia impacting money in russia and in your wallets. and what to do when not trading? node our trade-off series, what makes steve weiss such a fierce kpet whir it comes to his business. all straight ahead on the "halftime report." jon, see you then. >> sounds interesting. dominic chu a quick "market flash." >> i can't wait to see when not on camera. helped by retailers of all circuits, abercrombie and fitch a big winner prp adding to its franchise list saying management positioned the company for significant profit margin expansion.

also looking at american eagle, deckers, also all of these stocks moving higher. oshkosh, not the company that does the dungarees. and retailers included, all doing well in today's trade. back to you. >> thanks for that, dom. back to michelle caruso-cabrera with a news alert at headquarters. the situation with ebola grows more disconcerting, economic effects we're looking at. british airways temporarily suspended flights to and from liberia and sierra leone due to the deteriorating health situation in both of those countries. the safety of our crew and ground teams is our priority. we'll keep it under sights. inincludinging a if you refund and ability to rebook flights at a later date. once again, british airway suspending flights to and from liberia and sierra leone until

august 31st due to the situation of the deer tier yating health there with the outbreak of ebola. back to you. >> thanks, michelle. you may have used our next guest product without even knowing it. the technology behind google's videochat google hangouts joining us today with news that will take it beyond your traditional tech and into bank accounts. the ceo of video joins us here at post nine. really interesting that you allow video to stream over, you know, not so much bandwidth. that's really important in overseas markets and part of what you're announcing today? >> absolutely. thank you for having me today. the exciting thing about this is, it's another example as you mentioned that video communication goes beyond the boardroom into everyday people's lives impacting them in this particular case in the banking applications. we as a company developed technology that allows video

applications plugged into any application. amazing quality, great core structure and now exciting, because we've seen over the last 12 months, a slew of new applications introduced. and this banking application, you mentioned, is one of them. >> in india. tell exactly how it's going to be used for your consumer on the ground with a phone or a device like that trying to do banking? >> the cool thing about banking, online banking is, it eliminates banks from the burden of having brick and mortar, much less expensive way to deploy service, and discovered, lost of the human touch and want to make sure when people need help, they can get it. without going to the branch. so they invent the video communication technology from us, into their own banking application. so we like one button in a secured fashion a very high-quality over the internet using whatever device you have at home, you can connect to your representative in a bank. >> banks here in the u.s. have been shifting away, att to shift away from brick and

mortar for the better time of a decade. they're described as impersonal or inhuman's how do you maintain the customer relationship through technology? this is their argument. you can't do it and no brand loyalty when talking to somebody over a video versus going in person? >> that's absolutely the case. we talk to bank customer, two out of ten major banks in the cord have chosen up to deploy these kind of services, this is exactly their concern, and one of the ways to address savannah savannah -- it sb add human touch. run into a problem, not sure wra to do. one button, in a secured fashion, yurd authenticated, calling into the bank and have a very secured connection that still has a human touch to it. and that could help. and time will tell how effective that is. >> really interesting. we had lunch a couple weeks back. i made the compares ton arm holdings. saying you're not selling. want to be embedded in drone, home cameras, all kinds of

different device. really interesting. thanks for joining us. >> thank you. smart devices are arguably the most popular in tech funding. two kick starter projects raising a lot of cash to get their devices on the market, and letting the cnbc audience, as you know, decide which you think will be a must-have for consumers. offering hands-free electric cruising. users do all the driving with their feet. it can be scrolled via smartphone wehether a user is strapped in or not. the campaign's goal, $50,000. it raised more than seven times that with over $380,000 in funding. super m a high-performance pocket-sized blue tooth speaker capable of 360-degree sound,

it's waterproof, sandproof and has a battery life of eight hours. the campaign's goal, $75,000. to date, the project has raised more than a half a million dollars. who should be this week'sleader? vote now at c nbc.com/crowd. >> talk about the winner friday. meantime, when we come back on "squawk alley," the disparity between chip stocks and the nasdaq overall. that's on the other side of this break. you'd do that for me? really? yeah, i'd like that. who are you talking to? uh, it's jake from state farm. sounds like a really good deal. jake from state farm at three in the morning. who is this? it's jake from state farm. what are you wearing, jake from state farm? [ jake ] uh... khakis. she sounds hideous. well she's a guy, so... [ male announcer ] another reason more people stay with state farm. get to a better state.

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welcome back to "squawk alley." rick santelli in the cme with today's enaddition of "the santelli exchange." we know what a counundrum. a popular word. coin a better version. coalundrum. what is that? do a lesson in coal. in the u.s., pretty much nobody wants to use coal anymore. the greens have taken over, but yet, remember, $11 billion worth of coal exported from the u.s. last year. so what's going on? listen, we all need an energy plan, because this kind of ad hoc process, the way we deal with energy, just isn't working out. when you add in mr. putin and natural gas and europe specifically germany, it really creating a very uncertain future. and this really is about

germany, and lack of priorities by those that claim themselves to be green. remember, green is important. pollution is bad. but in the end, you have to prioritize the human element. so, hence, as of 2018, germany is going to quit all subsidies to the coal industry effectively killing the cool industry, however, the u.s. exported two times more to germany than they have since 2008. now, brown coal in germany is what they generate electricity with and its operating at the highest level since 1990. about 40% of their electricity is generated from coal. they have built five new plants in 2008, even though the coalnundrum dictates in 2018 they're going to shut down the coal industry. try to reconcile this. it is cheaper when you consider the natural gas costs and the carbon trading, it's cheaper to

use coal with all its problems than any of the better alternatives like natural gas, and in the u.s., no energy plan. so liquefied natural gas plants are in the stall mode with regards to permits. what's going to happen with the german economy? it's evident. a lot of greens in germany yet everything i said true, because in the end the worst outcome for people, their health, the health of the economy, the poor, is to have an economy stagnate. we need a better energy plan, we need to share our natural gas with germany, but until that happens, if you're an investors out there, i would be really reluctant to write off coal as an investment. back to you. >> writing that off would be inconceivable. shares of twitter breaking away from the rest of the social stocks. meanwhile, this morning. we'll explain why, next.

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in the red. seema mody, what's going on there? >> kayla, two areas within tech that are showing signs of weakness. first off of the chip stocks. company that specialize in chip or chip equipment that cater to the pc smartphone tablet world, all of these stocks up double digits here to year, thanks to earnings acquisition, heuue hig demands, a retreat. and nvidia, reporting earnings laters this week is bucking the downward trend. social media. big swings in these over the past days. twitter a bright spot. focus on groupon, daily deal site reports earnings this afternoon. options market, kayla, according to risk reversal implying a 16% plus or minus move in shares of groupon. be sure to keep an eye out on that one. back to you. >> thanks for that, seema. a check of a few other moves in the market. jon fortt you're watching chegg. earnings, that is moving up big? >> beat, but more important, a

partnership with ingram, which is a big maker, distributor of textbooks. chegg seen as a disruptive there, now partnering with them to hold inventory. >> up near 18%. russell 2000 up with small caps one of the weakest sector there's. an interesting move on a red tape today. that's something melissa and team "half time" will watch, turning it over from "squawk alley" to the "halftime report." >> thanks to. welcome to the "halftime report." starting lineup, josh brown, ceo, and stephen weiss, managing member of short hills capital. joe terranova, kicking things off with an anniversary for the united states of america. we love celebrations. three years ago today, standard & poor's downgraded u.s. debt from the aaa gold standard, cred is rating held nearly 70er yaos to aa plus, at the ultimate contrarian indicator. michelle caruso-cabrera has the tale of the tape. >> looks like