the global share. biggest opportunity there but happen income western europe and the u.s. as well. >> we'll be sparkling at dinner parties after this. >> i'm glad the baby diapers are out of the house, if you know what i'm saying. have a great weekend. thanks for the great segue. 8:00 at amazon, 11:00 a.m. here in the east. "squawk alley" is live. ♪ welcome back to "squawk alley" this morning. a check on the markets on this friday. obviously, pre-market and overnight action especially the nikkei down 450 points overnight

would not have led us to this particular scenario but the dow is hanging on to gains. s&p 1914. ten year yield below where it was yesterday. lowest of the year. keeping our eye on all that. meantime shares of gap rallying after a 2% rise in july comps. second quarter earnings coming in above analysts expectations and shares of invideo up after beating expectations. chip maker gave kurcht quarter forecasts above estimates as well. a lot going on both in macro, air strikes in iraq, the situation in ukraine as well as technology. joining us this north today, kara swisher, go executive editor add re/code and jon fortt and kayla tausche. >> ceo les moonves on the conference call after earnings last night. >> we will have more international and domestic licensing and streaming deals on the syndication front.

such as the new recently completed extension with netflix for our library programming here in the u.s. so we feel very good about the quarters ahead and about our long-term growth prospects as a content company going forward. >> shares of cbs rallying after that second quarter profit did beat estimates. earlier in the week, kara, all about saying how much money they made selling to amazon. now moving into the cbs world. >> right. well, trying to find new audiences. this is where the audiences are going and have to sell into them. it's not -- not moves csi there now but eventually where the big showless go because that's where the audience, especially young people are watching think stuff and they have to sell into it. makes sense. >> so interesting watching cbs, watching viacom, you know, i look at viacom as potentially a canary in the coal mine for this whole demographic because so much of their programming tries

to appeal to the kind of consumer who's more likely i think to cut the cord and to experiment with these types of streaming services. so i wonder especially as you see what's happened with the up fronts and scatter with certain categories of advertisers waiting for the scatter, are we really beginning to see that true disruption in this model where you've got the content companies moving, and creating content. for these streaming play, and you've got dollars moving in that direction more and more, too. >> not just the original primetime programming, kara. you could speak to this as well. currently developing a 24-hour digital news channel that could open a brand new revenue stream for a company searching for revenue streams, showtime doing well, interactive doing well and to have one more stream that doesn't even exist for this company yet. what do you think the possibility is for that? >> i think it's completely -- where everything's going. tv, even though the tv viewing is up, people are moving into different devices. what's interesting is all of the

companies had been resistant, even buickous, insulted netflix a couple years ago. called them albania or something like that. >> yes, yes. >> where people are watching. now they've shown they can do hit shows like "house of cards" orange it the new black." when the good shows go there, the audience goes there because the good shows go there and the audience, with devices everywhere and people using them, i don't watch linear anymore. either on demand or on one of these services, why they have to sell into it. more money. all kinds of money, google, amazon and others. >> business news excluded, of course. we almost -- there is going to be room for some linear tv down the road, whether it's news and information, right? or sports. >> yes. well where it is. on a network? cable thing? on devices? on phones? these leaders have to think about this. it's moving quickly, i think. that's what's happening. that's how mobile happened,

rather quickly, even though it had been gestating a long time. that's happened here. >> depends how much data the customer can afford. something of a tipping point. >> true. next up -- authors are fighting back against amazon. a group of more than 900 writers signing an open letter condemning amazon over its dispute with a boycott of authors. stephen king, john grisham, james patterson saying, as writers most of us not published feel strongly no book seller should block the sale of books or discourage customers from ordering or receiving the books they want. "times" argues because amsons expects to lose money, that's partly why they're leerning on groups like this so much. >> i don't know who's right or wrong here. personally, i tend to be a little skeptical when companies that don't necessarily have an inherent love for content start trying to disrupt the con tent

space. i mean, i'm a content guy. what can i say? i've also been saying i think amazon has to be careful here, because of its brand. and these are writers who even people who don't read books have heard of. and so when they're coming um against amazon, kritsicriticizi amazon is looking like a bully and jeff bezos doesn't want that. >> and fighting off in the past, many authors say this is the very first p.r. battle that could chip away at its reputation. kara, long a practice of not commenting on anything, not engaging with journalists when they cover the company. the first time they've shunned that practice and been forced interact with some of these people. >> well, no. jeff bezos has talked to reporters. we've talked to him a ton. the issue is more again another secular change. how people are getting books. amazon is in a powerful role in that way and trying to drive down prices what they should do

as a business, too many content costs. i don't know what's going to happen here. authors will get hit. how people buy a lot of books now. through amazon and other book sellers online. it's one of these sort of p.r. battles i'm not sure is going to end up anywhere and i think people are buying books online. and again, another secular shift, where publishers at amazon, ridden together for the most part have to figure how to work together. priceless come down. that's going to happen in the end. >> 30% of books, are e-books. do you think, akara, am zone ows something because they're the genesis for the entire model? >> i don't know. does walmart owe the shampoomakers anything? i mean, no. >> part of the authors' argument. >> the only thing, authors, in one article talking how many sales dropped because they're not selling on amazon on some level authors are beholden to amazon, and maybe they can make some p.r. things saying how much we love authors.

they're just moving bits and bites now. that's what they're interested in, no matter what it is. and so they probably have to be a little nicer authors, but authors shouldn't love pub lishgers so much either. i've done several books and can tell you the publishing sdrip can be very difficult, too, let's just say. >> it isn't the only approach. steve jobs approach was different. doj slapped it down, leaving more room for the publishers in his approach. his approach even to music was different bringing artists up onstage during itune launches. you could argue others could be kinder to the existing content infrastructure than amazon is being. >> no, no, i don't know. >> not the only way to run a content selling business. >> behind the scene steve jobs put the hammer down quite a bit. >> to his own advantage. >> i think this is a power play and i thinks who owns the content and then how much is it worth? why rupert murdoch was going for time warner. everyone's got to get bigger to deal with googles and amazons of

the world, which have a lot more of the power. >> earlier in the week you tweet i am not saying having a tv partner changes re/code, but can you say stylist? i think you look great. >> thank you. they threw all all of my clothes and gave me these to wear. see how this goes. i don't know. end in tears and that's the way it's going to be, but my mother is thrilled. that's what really counts. >> watch you digging through the trash to get those back. >> i don't know. >> don't turn your back on kara. >> have a great weekend. >> thanks. >> always good to see you, of course. >> thanks a lot. reminder, cnbc and re/code have a content sharing partnership. the other big story of the morning, of course, is in iraq and greater geopolitical uncertaintyy. launching air strikes on islamic militants near the northern town of erbil. we have the latest on that situation. >> hey there, kayla. in just the last few minutes, the faa announced all u.s. cariers are prohibited from flight operations in the baghdad flight region of iraq due to

potentially hazardous situation created by the armed conflict between the militants associated with the islamic state in iraq and iraq you security forces and allies. turkish airlines cancelled all plights to erbil, capital of afghanistan in northeastern iraq until further notice due to security concerns as well. all of this comes after the u.s. military conducted a targeted air strike early this morning against the isis terrorists. two fa-18 aircraft dropped two laser-guided bombs on an artillery piece. isis using it to shell kurdish forces defending erbil where u.s. personnel are located. erbil, capital of kurdistan in northeastern iraq. all coming after the u.s. military dropped food and water last night to thousands of religious authorities escaped to a mountain top due to threats of being killed by the isis militants who have taken oesh over a large swath of the territory.

just last hour nbc military analyst general barry mccaffrey was extremely critical of what he saw as a weak approach by the white house. >> last night three aircraft dropped food and water to 50,000 refugees. today we had two navy aircraft drop four bombs. you know, this is not decisive use of military power. we're not on the ground in the area. i don't think we know what we're doing. >> not the harshest things he said, you know, you conducted the interview. >> yeah. obviously a lot of discussion on twitter how generals in some people's view want to see boots on the ground by default. he was at least critical the major policy outlines are not well drawn. michelle? >> i think that's his point. what exactly are we trying to achieve at this point? one of the unanswered questions is, is there a plan for getting those refugees off the mountaintop? right now the plan seems to be bring them food and water. how do you get them out of there when the militants twol the

roadway to them and find them safe passage? sounds like a very complicated operation. >> yes. keep our eye on it. michelle, thank you. michelle caruso-cabrera. markets here, 70 points on the dow to the up side. 1917 s&p. ten year at 237. led to a lot of housing related company, doing very well today. whirlpool, home depot, and keep our eye on that. when we come back, iac's video platform vimeo marking a move to take on rival youtube. explaining in a cnbc exclusive. and august 8th. the day we thought alibaba was going public. turning into a great move for the giant, and is funding bad for start-ups? behind that claim and the numbers behind it in just a couple of minutes. with all the opinions about stocks out there,

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welcome back to "squawk alley." think of these as the ebay. soaring after posting better than expected quarterly results. gross merchandise volumes rose and payments shot up by 77%. shares near session highs, up, carl, by about 14% on date. back to you. >> all right, dom. thank you very much. rough day for zynga. shares sinking after the company slashed full nur yeedens and

revenue below. earnings missed, anything that could put them back on top? colin sebastian with rw baird, a neutral rating and price target of $3. good morning to you. >> good morning. >> i hate to see the situation if it weren't for all the cash they have? >> yeah. certainly cash is a stop gap mesh perp also own some real estate. the results we're seeing this past quarter and likely for the next couple of quarters is really about looking in the rearview mirror. what's important to investors is what's in the pipeline. so what we see is management's on hot seat as we await until 2015 before we really see the fruits of the last year of game development. >> and the pipeline, colin, doesn't look all that strong for them to say we looked at it and push things to 2015 instead of this year. what does that tell you about misses on the product side and does it make you less confident

in the company they can deliver if and when the time comes? >> good question. i think management's credibility here with the transition to mobile is in question. they certainly have that yet to prove, and with some of the new licenses they have with nfl, golf and loony tunes, we have to see whether that's a hail mary situation or if the other games and development coming out next year are really going to pivot zynga into the mobile gaming powerhouse they have the potential to be. >> colin, when i looked at this company, when it was ipo-ing, two things concerned me. social gaming seemed to be one the games spread virally, don't have to pay for that. two, original character and content ideas meaning they didn't have to spend on big celebrity endorsements. now they are paying the nfl and the viral spread doesn't seem to be happening the same way. why is this any better than a traditional video game company? >> well i think what zynga is

finding itself in is more like a traditional video game company, dependent upon apple and google more than they were on their other than web-based games and of course with facebook, had the benefits of the viral network that you're suggesting. the games have to stand on their own, and that's the pressure that zynga is under, just like the other video game companies. >> finally, the bulls argue at least mobile revenue finally outpaced web revenue. is that encouraging? >> it is. there are signs of hope here. zynga has tense of millions of daily and monthly active users still. so the question is whether they can leverage that into a success next year and for investors that's a long time to way. >> colin, thanks for the guidance. interesting to watch the price action toes. colin sebastian at rk baird. a look at markets. 1917, s&p level. i think cashin was interested in 1917. also break-even for the week, if you want to avoid a third losing week on the dow, need about

another 55 or 57 points. this would be the third straight down week for the dow, according to market meister that hasn't happened since last august in over a year. >> four straight weeks. >> yes. when we come back, vc financing is "a wait of time" and can be bad for start-ups. looking at numbers behind the claim and tell you what we found. that when "squawk alley" comes back. w car smell and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com hi, credit report site andour i have a problem. i need to speak with your fraud resolution department. ugh, we don't have that.

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start-ups sprouting left and right, seems a given, could more money mean less chance of success? a professor at the london business school and author of the customer funded business. professor mullen good to have you with us this morning. good morning. >> thanks, guys. >> sounds like your broad point is, if you're chasing the money that's less time for you to actually focus on your business. is that right? >> well, any entrepreneur who's raised money will tell you it's nearly a full-time job to do that, but starting a business,

getting the right customer and product right is also a full-time job and if you're trying to do both of those things one is going to suffer. >> professor, seems like there is some sorts of businesses that lend themself to maybe crowd funding, if you got a sexy gadget or something like that, great. but if you're doing something that involves deeper research, big capital buildout, don't you still need vc funding? >> well, not every kind of business can be customer funded. you're going to build a hydroelectric dam and power plant, for example, you can't fund that that way, but many kinds of businesses can be funded by the customer's money, and, in fact, for many, many years, that's where most of the early stage funding has actually cull from, from customer, not vcs. >> you say advice tends to not be the greatest for the start-ups as well. what scamps do you have to back that up? >> if you look at data of the returns of most venture capital funds created, best of the funds

creates astonishing returns and astonishing companies. facebook, apple, it's a long list. look at the wide array of them, the vast majority of venture capital funds earn low single digit or perhaps even negative returns. so those people really aren't doing very well investing their limited partners' money, but yet giving the entrepreneur lots of advice how to build its business. i think the auentrepreneur shou are foev given if he thinks the advice from that vc isn't going to be on track. >> you mentioned early stage funding, i like it fop get that funding you have to give away the store basically. right? because the risk is so high. >> well, the terms are onerous and quite rightly onerous. the risk is very high when you raise money very early. the product's not proven. it's not clear who the customer is, the technology may work. there's a lot of risk there, and so quite appropriately, the venture capital investor or angel investors wants a lot. a big stake in the business, a

tough term to protect against the down side risk. >> now a differ trend altogether is what we're seeing, easy, cheap money, professor, a lot of companies raising debt. chobani, $750 million loan, drop box more than $500. . square, $200 million. i mean, this is an attempt to not dilute the founders and employees but at the same time, a lot of these companies don't have the very healthy financial profile. isn't that even riskier? >> well, the point is, not that vc or it's bad, it's a great way to grow your business later once you've proven the business works. chobani has proven what it can do and dominates the yogurt market in the united states. the bank won't fund a start-up because the risk is too high and banks don't take start-up risk. >> certainly a provocative study. thank you for joining us to walk through. john mullins at the associate

school of business. thanks for joining us. >> thank you. and europe paring losses. simon hobbs counts us down to what's moving. >> bounced all the 4 1/2 month lows down a third straight day. it's a fall for the seventh out eight sessions. interesting, a bit of history here. these nordic countries close to russia do a lot of business with russia, a lot of those issues quite badly affected today. you may not know the names. i'll show you anyway. look at some of the russian-connected stock, the way they're falling. a time maker selling into russia from finland. a salmon producer badly affected. these airlines. lufthansa falling for fear russians have a threat on the table to prevent them flying over siberia to get to asia. going around is much more costly. as a result of the falls seven of the last eight sessions in europe, markets in correction territory. fallen by 10%. portugal, greece, italy and

spain. now the two big ones in the europe ozone also come into correction territory and may or may not as i speak to you now be there. notably, the german dax, people on wall street follow, also france, the craac. one asset working in europe, an appreciating asset, sovereign debt. people continue to buy european sovereign debt, sending yields down, therefore, even lower. to record lows. a 20-year chart where we are on the german bond. trade just above 1%. half the yeeds on the ten year treasury in this country because there's no inflation there. germany may have contracted in the secretary quarter moop knows what the ecb buying bonds further down the line. before i hand you back, one corporate today. allianz, big ensure, above expectations, despite the fact its pimco subsidiary, bill

gross, outflows on this main fund for 15 straight months now. the cfo was questioned by colleagues in europe today. he's stressing the fact they have effectively a new management team. six deputy chief investment officers as pimco who can challenge or are said to be challenging the macro bets that big gross makes. take a listen. >> -- external perception pimco is about bill gross and nothing else nap is the wrong perception. we have a really great team. look, there are more than 1.5 trillion u.s. dollars to be managed, and that is not done by a single person. >> in summary, guys, a rough week for europe. back to you. >> simon, thank you very much. dow is now up some 80 points. keep our eye on that. meantime, today was supposed to be the day for alibaba's massive multibillion dollar i ipo. why that's good for the company. and video platform vimeo taking a major shot at youtube

today. the ceo will explain the move in a cnbc exclusive, next. i make a lot of purchases for my business.

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iac's video platform vimeo marking a big move to steal youtube viewers luring three stars each with millions of subscribes, tense of millions of video views. over to vimeo, those people are going, but why is that

happening? for that story, out to l.a. and our own julia boorstin. >> once content kraecters build a following on a youtube platform they look to cash in on the popularity on other sites including vimeo. it takes only a 10% cut compared to youtube's roughly 50% cut of ad revenue. unlike youtube, vimeo can control pricing wit ainbility t em beld the player on any site. releasing a feature film for $7 on vimeo. another, comic girl, offering 30-minute reviews for $2 on vimeo a month before they later appear on youtube. and another explains why she's releasing a feature-length film on vimeo. >> there's a lot of people who have built a tremendous audience on youtube, been very successful, were ut it is a behemoth. there's a ton of content uploaded every day by

personalities and users. so it's hard to sometimes stand out and be heard amist all of the video, and so when you want to put out something premium i think it's exciting for youtube creators to be able to look elsewhere for a different type of experience for their viewers to have. >> this shift of creators and viewers is fueling vimeo's 45% revenue growth in the second quarter with 11,000 on demand videos, 170 million monthly unique visitors and nearly half a million pay subscribers, one of several trying to cash in. having its own video hub. if either can lure everybody aen a fraction of fans that could translate into a huge business. carl? >> julia, stay point. joining us exclusively at post nine. good to have you. >> great to be back. >> kerry trainor. are you fighting goliath or not? >> youtube is a very, very large

player. what vimeo is after is a very different piece of the market. we focus on different creators, on the higher quality experience both for the creator and viewer. when it comes to monetizing that viewer experience, you heard from taryn, allowing to charge for content as opposed to a pure mass ad-based model. >> youtube has close to a billion unique visitors a month. you're at 170 million. that scare work scale works ag trying to monetize. are you trying to be more like money hbo versus a network? how do you make sure it pans out for them? >> exactly right. an analogy we use. where'sas the scale is absolutely critical when driving an ad based model. look to historical television and video model, premium cable, adventilate '70, early '80s people were paying for high e

quality more niche programming and a beautiful ad for experience. if u stub that broadcast experience on internet steroids, we believe vimeo can be the same premium cable experience whip the same open, global approach the internet empowers. >> now, kerry, youtube rolled out a subscription option for various channels and the google play store does have a video on demand option. what's to keep them from doing exactly what you're doing rimt now? i mean, wouldn't it be easier for those youtube stars to do video on demand through youtube? >> it's a great question and that's where i think, again, this broadcast versus cable analogy holds, in that, look, youtube is a wildly successful service. i think most viewers expect it to be free, much like for broadcast television. nothing wrong with that. however, for creators, when they don't have the scale, being able to charge for content puts nem in a position to earn revenue.

going after a differ mod. i wouldn't say youtube can't, just challenging ways based on user expect aces. >> the deal today, the sticking point, economics and breakdown of the revenue. people moving to vimeo, they venal have to give you 10% of the ad revenue, versus youtube, 50/50. great to attract people, but is it sustainable? long term? >> we absolutely believe it can be. the point is more severe. not only is youtube taking 45%, the amount they can take a percentage of a already lower to begin with. meaning when a creator attracting, say, hundreds of thousands or millions of subscribers tries to monetize through advertising, you could be looking at as little as a dollar per 1,000 views. mean vying to stream someone 1 million times to make this money. where it as we have creatoring selling things single digits thousands of times. an order of magnitude lower equation they have to fulfill to

start making middle easteing me >> and investing for content. raises what the future is? a content platform like hulu, more like a netflix? >> vimeo is the open platform for creators and audiences. ask the question of business model, as we're talking today. empowering them to charge for the content as opposed to relying on advertising-based revenue. i look at vimeo, that premium capable experience with the openness and inherently global connection between creators and audiences. the profound step forward for vimeo on demand, that any creator can upload that content and sell it. netfl netflix, hulu, in the end, still one-way services. you cannot upload content there. but you can upload con dent to vimeo and you can sell it to any viewer anywhere in the world. >> finally, that diller weighed

in on this model? saying you have as much runway as you need, or not? >> yes. investing aggressively. extremely excited about it, something bary forke ises on and we're bullish on the future of vimeo and this model. >> kerry, we've had john several times. good to sue yee you again. kerry trainor and julia boorstin out west. thanks. fears about the ebola outbreak are lingering. . world health organization holding a press conference this morning after the first meeting of its international emergency committee. we have the latest from that for urs right now. >> reporter: kayla, right. only happened a handful of times in reeves years with swine flu and polio. the world health organization said today the west africa ebola outbreak is and international public health emergency. >> this is the largest, most severe and most complex outbreak in the nearly four decade history of this disease.

>> reporter: now, the expanding outbreak affected sierra leon, guinea, liberia and most recently nigeria. 68 new case, and 29 deaths in those countries bringing totals to 1,779 cases and 961 deaths overall. so with the w.h.o. declaration what it means, concerned ak the disease spreading to other countries and is urging international coordination to try to stop it. the w.h.o. didn't recommend restrictions on international travel or trade but did say countries with active infections should screen all travelers leaving the borders emphasizing the virus can be contained since it doesn't spread through the air but through contact with bodily fluids. actions need to be take ton identify all who are infected and those they've come into contact with. still, there's a lot of challenges with the fragile health system in these countries. back to you. >> thanks, meg. incredibly tragic story but hope

thanks to some of the drugmakers. get to dominic chu with a market flash. dow ap 76. >> allergan stock is moving higher after analysts at leer ink upgraded from an outperform to a market reform saying a recent pullback in the stock created a buying opportunity, also said the current hostile takeover by val yareant is havi little impact. allerg elergan up by 2.5%. arrested development fans, big news 234. might be another season heading your way. details on that. plus, alibaba. we're explain. first, rick santelli whooshgs are ywhat are you watching today? >> arrested development. that describes the interpretation of the ten year. why trade down 234?

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we're hunting for value. you won't believe where the traders finding it. bears invade the dow. correction territory. down more than 10%. not to worry. your correction protection plays, and football is back. talking live to nbc sports mike florio about the new technology that could have a big impact on how you watch the game this seen, all straight ahead on the "halftime report." back to you, kayla. >> thanks, michelle. the markets. because the u.s. stock market is defying any piece of uncertainty abroad. now the major averages steadily in the green. dow up 75 points. s&p 500 and nasdaq in the green as well. though we should say all three major averages on track for two consecutive weeks of losses and this is the worst three-week period for the dow since january. for one company, this might actually be good news. that company is alibaba. remember the e-commerce giant originally supposed to go public this week with that trade culminating on today august 8,

8/8, a lucky day in chinese culture, but the delay looks like a smart move in light of the recent market volatility. guys, look at ebay and amazon. stocks up nearly 2% in the last week but a few other moving parts that traders are taking into account here. number one, you have elevated volatility. haven't seen the vix in the 16, 17 range in months. and 16.4 billion in equity outflows last week. even though we have markets up steadily, there's a sentiment shift that has happened and the question is whether you would have roughly $22 billion in new money ready to put to work. traders that i talked to on the floor say, yeah, people have been stowing away part of their portfolio to buy this, because it will be a big deal, but then the question of vacation. e-mail anyone potentially getting in on this deal, you get an out of office reply this week. >> yeah. better be lucky than smart, one

take away. and the market action, on the 20-some odd ipos we did get. i wonder how much air this takes out of general equities when it does price? >> a feeling people aren't investing to save part of their portfolios for this. this is a name everybody is watching. everybody wants to get in and the company even though it's still communicating with the s.e.c. trying to dot is and cross ts, there's a sense that the company just didn't want the hubris of bringing long-only fund managers in boston and baltimore back from vacations. something they would forget easily? having to do that? just to buy in on this deal? i don't know. >> i don't no if we can count it volatility. 16, 17? come on. >> true. a major indicator. ideally, around 11 or 12. had it last week until the end of the week. hoping for that again in

september. >> yeah, interesting when it finally comes. meantime, get to the cme group. rick santelli with "the santelli exchange." rick? >> hi, carl. as i look at the board i see the stock market is at least referenced by the dow, popped up towards 74, positive on the day. and while that went on, of course a huge sell-off pushing yields up to 22338. ints tra-of-tra day, down to a 234 yield. the question everybody's asks, were we see a 2% on tens? many think it's possible. i'm in that camp. last may we went from 160 to 260 as i talk and earlier with jim beaung bian bianco, seems that the last war many economists want to fight. we did the move that made investors nervous, the end was near, whether looking at 0 interest rate or specifically last year the taper going

unimpeded until we get to the end of the year and it's done. that seems to be the case. now, dax. talked about the dax. many times. today the dax intraday did breach 9,000. hasn't closed under 9000 since a couple of weeks before christmas. more important, though it isn't even that level. like the ten year, like the guilt, if you look at a couple of year chart of the dax, the guilt, the ten year, you see the formation is like a dangling man on top of a building. there isn't really a lot of support. so when we do get that ultimate close under 9,000 and most likely today being friday is the reason if had a bit of reversion, you want everything to line up. opportunity, traders, look at the dollar yen. earlier in the year almost tick for tick with the drop in yields. haven't stheen lately. if you do believe 2% test is in the cards, because the economy is underperforming, because productively, the magic bullet,

even though it rebounded this morn isn't averaging the 2.5% it has since 1948. all of these reasons are good to jump onboard. geopolitics changing the time line. people think geopolitics is the maim reason for some of the moves. i disagree nap will make a potential mean reverting move over the weekend happen, which will just give everybody else a better entry point. carl, kayla, back to you. >> all right. thanks for that, rick. when we come back, the moment has arrived. all week we've asked to you vote for the tech crowd winner. the two crowd funding projects facing off this week, on one hand, actin smart skates, electric d boots. or a bluetooth speaker. the winner of the competition joins us after the break.

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oh 4 all this week asking the cnbc audience which start-up would you fund? on one hand, actin smart skates, or nude audios pocket bluetooth speaker. the tech crowd leader of the week, nudeaudio. the ceo is with us, tom donerich. congratulations. >> thank you very much. >> so you did win the contest this week and raised seven times the money on kick starter than you initially sought. what is it about your product

that made it so popular with potential investors? >> the response has been absolutely phenomenal. completely blown us away. humbled us. our product and brand we put the whole thing together over the last couple of years. the idea making a better quality speaker in a simple way. putting more money into the acoustics with minimal stein. people have fallen in love with the design, product, design, the way it sounds. i have one here, which you can see. so, yeah. 5.5 thousand new fans, customers that have bought or product and still six days to go to pick up more backers. we're just -- so much fun running this campaign. just awesome. >> what's driving sales? new cell phone purchases? is it tablet purchases? do you have a sense how people are connecting to these mainly? >> yeah. we think, you know, most of our customers are keshgting with their smartphone or tablet. streaming music from spotify or one of the other music sources.

and it's just a great way to share music. i think people have spent too much time with headphones and the market is exploding. we felt that the market needed better products that sounded better. i come from a, an audio background. my partner peter is an industrial design here spent his career making, designing products for fortune 500 companies working for a big design consultancy in san francisco, and we brought these two things together and created an amazing set of products, and then the kickspart community validated everything we've been working for the last couple of years on by backing our campaign. we're overjoyed by the response and the result. >> how do you sell something, tom, on kickstarter, when obviously the experience with the speaker almost has to happen face to face. right? you almost have to have it in your hand. how do you sell that? >> yeah. a really interesting challenge, actually. trying to get across without making misleading statements or

going to specs and things like that. getting across how really great the speaker is. we're fortunate to have the support of famous record producer called hugh patchen, he maze records for sting and genesis and phil collins and paul mccartney and many others. one of the most famous record producers in the '80s and '90s and he endorsed oush product after listening to it. we visited him in his studio and he spent a bit of time listening and gave us a great endorsement that helped build trust with all the backers, and i think that's basically it, yeah. >> tom, got to go. a quick answer where the name came from? blocked on our serves. curious where did you get it? >> nudeaudio. stripped down our products to the bare essentials. what make as great speaker, great sound. it's nudeaudio. stripped is down just to the things you need.

minimal sky, great sound. that's nudeaudio. >> best of luck over the next five days. congrats on winning. >> thank you very much. a good story. when we come back, one of the stores of arrested development made fans very, very happy. find out what he said, after the break. machines will be sprayed to be made. and making something stronger... will mean making it lighter. one day, factories will work with the cloud. one day... is today.

in case you missed it, finally an answer to the question, "arrested development" fans waiting for. is the show coming back for another season? here is actor will arnett on the "tonight show" last night. >> netflix said "arrested development" is coming back for another season. is that true? >> and the answer is -- yes! [ cheers and applause ] >> hey! >> that is so great. i mean, it really is a place for shows like that one to survive. right? >> "the tonight show." >> "arrested development." the "tonight show" is doing fine on broadcast. >> it is. talking about a show coming back for another season flowing in with so many things we've talked about on the show today. >> must have remembered there's always money in a banana stand.

>> yes. that's right. meantime, keep your eye on the dow. now up 84 points. s&p at 1919. right below the 1920 level cashin says continues to be important. have a great weekend, guys. >> you, too. >> see you monday. as we turn it back to hq. >> welcome to the "halftime report." i'm michelle caruso-cabrera filling in for scott wapner. mike, josh and pete, stephanie with us, and also joining us today is stacey gilbert. the head of derivative strategy at suss xa hana financiwquehann a chance of russian invasions of ukraine on the rise. situation in gaza deteriorating then in the markets, major sell-offs in europe and japan, despite up a that, the r