cheering. that does it for us. >> thanks so much, guys. it is 8:00 a.m. in san francisco, california. 11:00 a.m. here on wall street and "squawk alley" is live. ♪ keep the heads ringing ♪ ding dong ring ding dong ♪ ♪ keep the heads ringing ♪ hey you sitting over there you'd better get up out of the chair ♪ ♪ and work your body down and welcome to "squawk alley" for a monday morning joining us live from ww itdc, t co-founder of elevation partners joined by our own john. back home, kayla tausche, in a little under two hours from now

apple 's worldwide developers conference officially kicks off. probably the most important thing today the expected debut of apple's own streaming music service. apple music is rumored to cost about $10 a month and be powered by beats which, of course, apple acquired last year. john ford, i'll begin with you. there's been so many stories written about what's not going to happen today. what does that leave that's important later on this morning? >> well, as you mentioned, streaming music is going to be important. i expect this to be the optimization wwdc, bug fixes, things some users felt we should have had a while ago like public transit directions in map. map should get better. we should see some updates to the mac os and hear more about the cloud. we'll see if apple says more about them offering cloud services to developers so that as they build these applecations that rely more and more on intelligence not just on the device but in the cloud they can

use apple as their back end for that and not just have to rely on a.mazon, microsoft, google o others. >> you raise a good point, john, and that's this conference is usually all about infrastructure and the plumbing behind these apple products. i'm wondering when you think about where apple is right now and what groundwork it still needs it to lay whether it's ios, watch development, or potentially smoke signals about a tv, what do you think we'll see today? >> well, if you're apple today, the issue you face is fwogoogle unit volume has an effect in the advertising market for mobile advertising. if you're apple, you're still earning a lot more per unit than android devices are, but the fwgap is getting smaller. it's about changes to the operating system that allow a apple to differentiate itself relative it to android and to any other platform. the things i'm really excited about are in the underlying

fabric of it related to apple pay. they have a new service called proactive that is going to give you the opportunity to have the device anticipate your needs by looking up maps before you ask for them when you something in your calendar. and the things that make the apple experience easier to use has real value to apple. what's herd weird as an investor you will not see this in the numbers right away. it's not a product announcement where we get to sit there and do math today and figure out what the earnings impact is. this will be much more subtle. i think no less important. >> yeah, john, that's always the quirk of wwdc is you've got an audience of 5,000 developers and they're worried about the things roger just mentioned, but you also have a television audience watching for headlines and they're, you know, obviously mollified by hardware, by new categories and you don't always get them at this particular

conference. >> and i'll tell you, carl, apple absolutely realizes that the television audience is not the audience to play to at an event like this. apple empties out cupertino, brings engineers up here. these are the developers that will enable apple to make a difference in the battle versus google and others in the coming year. they want those people to feel empowered, excited about developing for apple. so expect apple to take what will look like a victory lap during this keynote saying basically we've won the premium in the smartphone market for this round. and we've seen it. we've talked about it here on "squawk alley" whether you're looking at who is actually paying for apps it's the ios user. if you look at who is paying for tv everywhere streaming, we're looking at the numbers from adobe last week, it's ios users. people who are actually spending money, not just look iing at advertising, not just talking volume, but actually spending money and being discerning not only about the app but the content they're viewing, it's

the apple user. apple is going to say that to these developers, to say you want to continue to be on our platforms, be first to make money. >> and then, of course, when it comes to music, the ceo of sony talked about apple in an interview yesterday saying, quote, what does apple bring to this? they have $178 billion in the bank. they have 800 million credit cards in itunes. my guess is apple will promote this like crazy and will have a halo effect, a rising tide will lift all votes. like the watch market not too long ago. >> the credit card point is not one to lose sight of. 800 million registered with itunes. that compares to spotify and pandora that has with about 3 million paid subscribers. a little bit upwards of that. think of the scale of what apple could do in that business.

800 million versus 3 million. the numbers are staggering. >> roger, for someone who is on the consumer level, for someone who is interested in whether the ball gets moved forward relative to music, what's the most important headline today? >> well, i think from apple's perspective the music category is more important to them emotionally than it is from a business perspective. if you do the math, at $10 a month, $120 a year, they're going to have to have tens of millions to even show up in the income statement. i think what this is really about is this conference apple is addressing half as to of the biggest complaints people have had about its operatinging system, about its capabilities relative to android and i think as john pointed out a minute ago that stuff really does matter. if you can get developers excited about the platform, that's a big deal. and the music thing is part of that.

this ises something -- i don't know that it will make any difference income statement wise but it does matter to developers. it does matter to consumers. from apple's point of view i think it will be a pretty good day it. you're just not going to see it in the stock. >> i think music is also important because it's easy to forget apple is the number one music retailer in the world. and so if they were to lose that position to someone else, it could be strategically important for them, but i wonder what you think, roger, how aggress i can apple be? remember, they have antitrust, regulators breathing down their necks after the ibooks stuff, they're already the biggest in music. if they get extra aggressive in the music category they might invite the feds to take a closer look. >> i think you're not only right about this, one of the great ironies the music industry has done everything in its power to keep apple from doing this. doug morris can can sit there and talk about the size of the apple opportunity but they were doing everything in their power to get other people to be successful, to diminish apple's

role in the marketplace. and at the end of the day, the music industry is where it is today because the people running it like it this way. >> well, they don't know which horse it to put their money behind. they're mad at spotify because they feel they give away too much for free. then they're mad at apple because they feel apple has gotten too rich off the digital music revolution. they've got all these billions in the bank. >> i think the music guys are protesting too much. i think the truth the matter is anybody with a checkbook is a friend of the music industry and they look at apple as the biggest checkbook out there and they want a piece of it. >> speaking of which, we did talk to the spotify ceo when we were at the conference. here is what he said about competition. >> i think the key here is we live in this world now where we have tremendous access to data. what we're doing at spotify is a lot of experiments. we're constantly trying to move forward with better product

offerings, with better programming, with better curation, and it's really about moving fast er than the rest. i feel we're doing a pretty good job at it. >> in terms of competition, roger, kayla mentions the disparity between apple's metrics and just about anybody else's. does spotify benefit from this in any way? >> i think what apple is trying it to do now is going to get people to pay attention to streaming music. for the first time in a couple years. that has to be good for spotify. music is not that big of a category. it matters to consumers out of proportion to its revenue imp t impact. i don't think when all is said and done it this will be important to investors. >> you mentioned the stock. what it might mean for the

stock. shares right now have been flat for most of the morning but the stock has fallen in every wwdc week for the past decade except for last year. on that day shares fell 3.7% every year. as with most apple events, it's not been positive for the stock. this is remarkable over a ten-year time. >> you think how much has changed the last ten years, the fact there is even a trend is remarkable in its own right. this tends to not be one of those. when you look at the average price target across the street, roger, i wonder if you could comment on this just shy of $150. that's 14%, 15% from where we are now. the stock has run up 40% since last year's wwdc. do you feel we're getting to a mature point in the product pipeline? >> i think apple as a stock looks like the market.

it's really hard to imagine it continuing to outperform. simply because it's the largest stock we have. that said on fundamentals apple is much more track positioned. i like it as a stock. it is not going to provide that level of outperformance all that much longer because the math doesn't work. >> kayla, two things, i think, that apple could stand to fix, one is software on the watch. developer tools that they can use to make faster, better optimized software for the watch. the other, though, is the ipad. we could get finally that split screen ipad experience, more tweaks to make that a more attractive productivity platform. apple abandoned the software, didn't make it special enough. the mac has gained momentum. the ipad has stagnated. this is their chance to bring

out a bigger ipad. if these developers who are the ones to make it really special if it's going to be are prepared to do that. >> it works with a big lag effect for sure. roger, ou thanks to you. john, you have a lot coming up later on this hour as well. let's check in on the markets this hour. just about two hours into trade. we're off the lows of the session, the dow was down about 50 points. now down by about 30. s&p down by about a quarter of a percent. nasdaq down by about a third of a percent. the dollar slightly lower, course, after hitting that post jobs report high on friday. shares of deutsche bank rallying after kleine was appointed ceo replacing longtime executive and kleine are will become sole ceo of the company next may. that stock is up 5 1/4 percent. it's largely in the red in europe. >> when we come back, plenty

more on apple. less than two hours away from wwdc. max germin will join us with his predictions. he's a legend in the music business. our can conversation with quincy jones on apple and the future of streaming music online. and today is not just about music. developers expecting some updates for the mac, the iphone, the watch. a company developing games for a host of devices will join us as well.

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from apple pay in the uk to a beats streaming service the rumors of what to expect at the developers conference to build 90 minutes before that starts. for more let's bring in senior editor at 9:00 to 5:00 mac and john ford who is outside the event in san francisco. mark, it's good to see you. you are always ahead of the curve on what to watch for. today you have a report about proactive which is supposedly a new pro tukt on the iphone or in the ios that is supposed to predict what the user will need next. how does it work? >> well, apple has been working on new ways to give iphone users what they need before they ask for it. sort of like google now, this feature and development would let you know when it's time to call someone to go to lunch or a

calendar appointment based on traffic so it's about giving the user what they need before they know they need it. >> it's interesting to see something like this come out. we have heard it tim cook proclaim that apple is not a company that uses customer data. they are using it to build software that is predictive in a certain sense. what does this mean for the user and the new iphone that we could get this fall? does it make it more of a must-have item? >> i think there's a fine line between user functionality and privacy. i think apple, if and when they announce this feature, will make it very clear that they take privacy very seriously and they're not going to really open it up entirely to developers because they don't want the potential for data to go to any third party. in terms of the new iphone i think ios 9 will be a huge selling point. the new phone will not have the new design.

the new sought wear are will open up the door for a new screen like on the apple watch. the harder you press, there are different functions that will appear on the screen. i think it's part of the same package and the story will develop. >> you think force touch comes to the phone long term? >> yes. i think we'll see an iphone 6s with the touch screen and we're told ios 9, the software builds in the functionality for that. >> really quick ly before i tur it over to john ford, this story about potentially spending on cloud infrastructure lessening their reliance on the amazons of the world for web services, how ambitious do you think that could be? >> i think it's extremely important for apple to own their servers, the whole infrastructure because relying on third parties doesn't allow apple to move as quickly as it wants to. if they own everything they can move as fast as they can. >> john? >> mark, for the viewers who

might not know, you're like the first guy to run the four-minute mile just in terms of your ability to break through a.m. 's wall of secrecy and get the best nuggets out way ahead of time. what i'm wondering about is what do you think success looks like for apple with this wwdc? it seems they're doing a lot of bug fixes, optimizations, trying to make ios 9 compatible as far back as the iphone 4s. is that an effort to try to get developing markets to still be engaged with the latest versions in cheaper phones? and what else can we read into that? >> right. absolutely i believe this is a move to open up more sales of the older iphones. like you said in developing markets, but i think apple will find this conference successful if it helps them change the narrative around the iphone. there's been this topic of conversation the last several months that the iphone and the ipad and the mac are less reliability because of buggy

software such as with e-mail and text messages. i think now apple on this huge stage that they're even live streaming on the website for anyone to see will have the opportunity to sell the new software that they'll call more reliable and more secure. so i think the big picture here is apple changing what people think about their products to be even more secure. >> finally, mark, there are some big ticket items that the engineers and the developers are looking for some new tools for today. of course that's music which has been widely reported to have a new streaming service ruled out. you have home kit and then you have the apple watch, of course, which still we're waiting for a the lot of third party apps on that. which one do you think is the most important priority for apple to get developers onboard with? >> absolutely the apple watch will see a very big day today. when they announce it, it will be the beginning of a new goldrush in terms of app development. the apps until now were not very reliable, slow and buggy, and this will hit the reset button for this this fall and the whole apple watch experience.

developers will be able to tap into different sensors and the crown of the watch. this is the start of a whole new market for apple and developers. >> certainly that's what the company hopes as well, mark. we'll get your take after the fact. we appreciate your time this morning. >> thank you so much. >> mark gurman from 9 to 5 mac. producing stars like michael jackson and frank sinatra, so what does quincy jones think about music and streaming online? we'll have more when "squawk alley" returns. it's more than a network and the cloud.

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quincy jones is a legend, winner of an astounding 27 grammy awards. so with apple set to unveil a new streaming service today what does the rock mogul think about the future of the music industry? our kate rogers sat down and joins him at headquarters. >> reporter: for a can company he co-created called playground sessions which is a rosetta

stone for the music industry bridging lessons with technology and gaming. jones had strong words they changed in recent years but also seemed optimistic about re-inventing the record business saying that streaming isn't the only solution. >> it doesn't mean anything. we don't have a record business. a big record. get out of here. we used to see it every weekend with michael. i'm not one of those back in the days guys. we get it right it will be better than before. >> reporter: unfair artist compensation on streaming platforms. if they paid closer attention to piracy things would be different today, he says. >> he was 18 years old when he started. if they listened to him we wouldn't be here.

>> reporter: he spoke out in support of artists like taylor swift who famously pulled her music from spotify for what she felt was unfair compensation. >> i know kids write songs, play guitar, musicians and singers and everything else and work hard like that it's immoral to take their creativity. it's horrible. you come to me three months and i don't pay them. the same thing. >> reporter: the be man loves uber. he thinks the platform is a win-win. >> it's a great idea. i say 80% of my friends come over. in paris, new york, screaming to cab drivers and taxi drivers. >> do you think uber is winning? >> oh, god, it's a good idea.

and, boy, it is a good idea. >> reporter: the campground is open for a couple more weeks and is at $800,000 in its goal. >> lucky you, kate rogers, bringing us quincy jones with some incredible sound today. >> reporter: thank you. to the european close. simon? you'll see a lot of red on the screen for europe today. greece still holds a lot of people in the market. the volatility has decreased and the moves you have on the markets means germany is down 10% from the highs although in fairness -- there you go. we had in the middle of april, still up 13% on the year which is true because you have qe there. there are stocks that are moving at the corporate level because of takeover activity. all reports of it.

from brazil friday one of the billionaires behind 3g. a swiss pharma, a deal and syngenta appears to have rebuffed once again. the g-7 continues in germany. angela merkel was asked specifically about the changinging of the guard of deutsche bank. she sidestepped it, said it was a decision taken by a private company. a britain, former cfo is moving in as the two co-ceos under great controversy quit deutsche bank. down 37% and so the debate continues about strategy investment banking, retail banking and so on. meantime, again, it's still greece that people are worrying about. president obama again at the g-7 actually addressed the situation in greece and suggested it was time for the greek government to take what he called some tough

political choices, growth of their economy. the focus now it turns again to the g-7 meetings on wednesday where the european leaders could meet with the greek prime minister. in the meantime the greek finance minister was in berlin today. he suggested that he has what he called a very long, productive meeting with the german finance minister who, of course, has been a heavy critic of what the greeks are doing. i think, carl, a sense of gridlock as a result of what happened friday/saturday. >> coming days will be interesting . when we return this morning he's the man you want to hear from ahead of apple's -- one of the biggest events of the year for that can company it walt mossberg is with us in just a moment. there's a difference when you trade with fidelity.

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good morning, everyone. i'm sue herera and here is your news update this hour. president obama holding a news conference at the g-7 summit in germ it any and said that the u.s. and its allies stand together against the world's challenges and agree that

economic sanctions should remain in place until it implements a ceasefire with ukraine. south korea reports its sixth death from middle east respiratory syndrome or mers. 23 more people affected bringing the total to 87. schools in seoul, korea, have been taking preventative measures it to stop the spread of the disease and some of those schools have actually been closed. ceo stefan richard has accepted prime minister benjamin netanyahu's offer to visit israel soon. yesterday french president hollande said he was opposed to any ait temts to boycott israel. kate moss was escorted off a plane at london's airport yesterday on reports of disruptive behavior. she was on a flight from turkey to london. she was not arrested according to the bbc. and that is your cnbc news update this hour. back to squawk alley now.

thank you, sue. about 90 minutes away from the start of the worldwide developers conference. for more on that and what to expect, the co-executive walt mossberg who was in san francisco with our own john ford. john, take it away. >> reporter: all right, thanks, carl. walt, always great to have you with us especially at an event like this. tell me what are the big things -- two big things you're listening for maybe watch wise, ios wise? >> two big things. so everybody knows they're going to unveil a music service, streaming music service. what i'm watching for is the price of that service. because the labels, and apple don't like the idea of free streaming like on spotify. they want it to be paid primarily so the question is are the labels going to let apple charge less than $10 a month? and i'm going to be watching to see what that looks like.

>> and what if they don't? >> reporter: i'm wondering where does apple differentiate with streaming music? they've been hesitant to spend money on content. they don't want to buy content video wise. they don't want to buy it or be a record label music wise. if they are att e$10 a month wh can they do instead of free pandora, et cetera? >> well, they could preload it on to the hundreds of millions. >> reporter: preloading isn't always the answer. >> i don't know. it's a great question. i will look at that price and see if it differs at all from other people. the second thing that will be really important here for the future of apple is in addition to whatever features they announce this developers kit which is usually a boring thing to most people for watch because the first apps for the watch were basically as you know iphone apps with a little bit of an extension and none of them

really knocks your socks off or very few. this time a developers kit directly to the watch. this is always in in the plan and you're going to be able to take advantage of the sensors in the watch, something that apple executive jeff williams revealed at our code conference. >> reporter: kayla has a question. before we get to that, how much do they need to update the basic watch software because, yes, third party apps are often slow on the watch. but i found even first party p apps like weather are slow. >> they are going to do some optimization. my understanding from my sources is that they have in the works very soon another update. give you one example. i would not be surprised if you could suddenly answer your e-mails on the watch which is frustrating.

>> kayla? >> i want it to ask you more with about the price of this music program that is reported to be announced today because last year the average itunes user spends $60 on downloads. that's a market apple created but it's trying to get people to spend double that if the $10 price tag is accurate. what do you think that gap is for them to bridge from what they would spend on downloads to what they would spend on streaming and how can they get there? >> that is the great question and peter kafka is always right. there probably was a final when they spent more than $60 a year before the downloads started dropping off. if they didn't get you to spend

$120, i'm making this up. suppose you could make, i don't know, $85 a year or something, that might make a big difference. and so the labels have a vested interest in defeating free streaming. if apple is the horse they're going to ride to do this this, i will be super interested to see if they're going to be flexible on price. >> meantime, walt, i think a sense we're not going to get or apparently are not going to get real granular detail on television today. why is that? what's the holdup? is that sort of the mood over there or was that never a true expectation? >> no, no, no. only a matter of weeks before he passed away, steve jobs called me up and said i want to you come and see what we're doing on television. i'm very excited about it. they want to do something on television. they have wanted to. i think they've had to shell of it not because they don't know

how to do the hardware and software but they want to provide a service and the media and cable companies are proving difficult to deal with. and that's the problem there. >> finally, walt, i want to ask you about diversity. tim cook did an interview with mashable where he talked about the importance of diversity on stage. some in the tech press about not having enough women, enough minorities on stage during these things. of course it at the code conference you and swisher asked a lot of people on stage about how they're handling diversity. how important is the look of who is on stage at wwdc going to be today is this. >> i think it's becoming more important for apple and everyone, every company in si silicon valley. this is a serious issue throughout tech. it has to do with gender, with sexual orientation, with race, and i don't think apple is the

worst but it's not like they're, you know, miles ahead of everybody else. and so cook cares about these social issues. i'll be looking at the stage just like you whether it's different. we both know that they do have a very powerful, highly paid e-mail executive at apple has not been true for many, many years. and that's what this woman who runs their retail stores, a vast number of people reporting to her. >> reporter: the dean of tech, walt mossberg, thank you for joining us. back to you if in new york. >> all right, john. thanks so much. a programming note, live coverage of the event itself begins on "power lunch" 1:00 p.m. eastern time. meanwhile, jack ma is coming to visit new york and chicago

this week in an effort to lure u.s. business to china t. he'll spend the next two days here and then off to chicago on wednesday. he will hold a town hall and meet with rahm emanuel. manifesting trying to get u.s. customers to operate on their platform. >> we'll see what's on his endthe next few days. when we come back a lot of talk about apple music. developers are front and center at wwdc. we're going to talk to one company developing games for apple, highly anticipated with about the new "star wars" film. . that's where at&t can help.

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financial noise apple's big developers conference countdown. what the experts really expect announced today. any surprisers plus what the traders want to hear. one of wall street's biggest bulls says stocks are not your best bet right now. how does that work or where he thinks you should be investing instead. plus the shale scheme. a new book out today taking a harsh stand against the shale boom. the analysts behind it on our show to make the case. that and much more straight ahead. now back to john ford out in san francisco. >> reporter: all right, we'll be watching, of course, scott. developers worldwide are gathering here in san francisco for apple's big event, the worldwide developers conference and joining us is one of those developers, at least he's hired

a lot of them. ceo kevin chu. kevin, you've got some big games on mobile right now. i want to ask what you want to hear, contest of champions, marvel game number seven on the app store now. a lot of android devices but more money to be made. how true is that still and what do you want to hear apple say to keep that story strong? >> thanks for having me, first of all. right now games comprise about 70% of all app store revenue. apple will make some announcements today about music. we care about a few things. hardware faster. it will have, i think, a lot of interesting things, not consumer

based but things that make devices go faster, games crash less, things that make the internet connectivity stable. >> how is ios on stability? >> ios is a less fragmented ecosystem, controls it so we expect roughly 70% to 80% of people to have ios 9 within a few months of the rollout. android a very different story. we have to support different flavors in the marketplace. google it self does not control the rollout. they have to work with carriers. we support thousands of flavors of android. with apple ios we're only supporting a small handful. >> reporter: so talk bang for the buck with me for a minute. if you want to make money as a developer, we are the place to be. look, as you said, little

fragmentation. look at how well the iphone 6 and 6 plus have done. is that true or are there nuances in there? >> one of top ten games on the app store on both apple -- on the app store and google play store. we generally see a majority -- when we look at revenue per device it is true the ios is a high ter monetizer per device. so much more android in terms of market share. it is a balance between the two great platforms. close to 50 on 50. >> reporter: which costs you more? working on android tweets and bug fixes versus ios.

is there an advantage that apple has there? >> there is a very small relative advantage. over 90 were working on the core game itself and then a few engineers on platform specific integrations but that's a small cost of the overall game. >> reporter: we're about out of time. >> it absolutely does. when you look at games, when people are home in the evenings, revenue on ipad is very, very important for gaming. >> reporter: we'll see if they announce tweaks that are more valuable, get unit sales. sounds like you're dedicating resources to it either way. kevin chou, ceo and co-found earp. thank you for joining us. ever since the introduction of

the ipod, apple's wwdc has become more and more important to everybody in the apple ecosystem. but do big announcements mean gains for the stocks? we will take you through the numbers in a moment. it begins from the the second we're born.er. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others. healthier takes somebody who can power modern health care... by connecting every single part of it. for as the world keeps on searching for healthier... we're here to make healthier happen. optum. healthier is here.

apple's worldwide developers conference kicking off in over an hour. what should we look for from the stock later today?

dominick is back with more. >> taking a look at how well apple stock does we focused in specifically on the modern wwdc we'll call it. ever since the ipod first got introduced and brought apple back to that scene of consumer electronics and technology. so since then we've seen, again, since the october 2001 release of the ipod 13 developers conferences during that time. now the strategy was what happened if you bought the stock right before the developers conference started and held it for a trading week, five trading days? the results are interesting. it's not exactly a positive type event here. mind you we only have 13 data points to deal from here. if you take a look at the numbers, they are interesting because since then we've seen neglect it tiff trade for what happens with the overall developers conference. now about a third of the time, about 30% of the time the stock is actually positive. it's down about 2 1/2% of the time on average in that five-day

trading span. as you can see here average return down 2.5%. that's pos it tiitive only 31% time. last year when the stock was up 3.5% for that trading week when they unveiled ios 8 and the other aspects of the new operating system and the worst performance back in 2004 before even the iphone, ipad era, it was down about 8% during that trading week. that was the time they previewed the mac tiger then. you have to go back a long ways before you talk about the worst performances. still, carl, interesting the numbers suggest the worldwide developers conference hasn't been a positive week for them but the big calf of yat, as always, it's a limited data set that only goes back 13 occurrences. we'll see what happens this time around. >> thank you very much, dom chu. when we come back our final predictions on what to expect.

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if greece had to leave the euro it would cause a problem for greece but not are for the overall currency bloc. this is significant because thus far members of the ecb, particularly mario draghi says it is terrible. the timing not coincidental. we're in the middle of heated negotiations. a member of the ecb raising the pressure on greece saying if you go, a problem for you. not a problem for us. back to you. >> these headlines will get more and more dramatic. michelle, thank you. meanti meantime, we're watching the airlines today. dom chu has a market flash. the transportation stocks overall continued to decline from the lows they he set so far. they're down around nearly 2%. overall they're being dragged down by the airline stocks in particular. jetblue near shorter term or 50 day moving average but firmly below that level. you also look at united airline, american airlines, southwest, delta, all well below those moving averages.

now the drop likely due to emotion from qatar freeways, freedom of airlines without objections here. if you look at the system overall, the airline index is down well below its longer term average and the airlines industry down over 4%. so a big deal for the airlines, carl. back over to you. >> raymond james cutting yunite, american, and one other i believe as well. almost an hour away from apple's worldwide developers conference. we want to get some final predictions. john ford and josh lipton are live. lipton, good to see you. what are your thoughts going in? >> well, listen, obviously apple is always great surprises. i'm hoping tim cook has an ace up his sleeve. we talk about that new music streaming service but certainly it would be very radical -- i'm sorry, there we go -- certainly a radical change in apple's music strategy to see that streaming service. you understand why they want to

make that move last year downloads dropped 9%. streaming popped 30%. so, also, listen, what about the artists today? a lot of talk who will be taking the stage, carl, could it be dre, drake, pharrell. a lot of surprises still in store. >> even without it -- >> i think the question is, the issue is jump on in. the water's fine. we saw what happened with ios 8. people were disappointed with the size of that download. i think they're going to want to talk efficiency here. say ios 9 will be so much slimmer, so much tastier, easier to digest for you to download to your iphone. >> one thing is for sure, of course, this tends to be something that focuses on software. a new font, too. san francisco will be the new font. that's what i'm most interested in. >> take what you can get, absolutely. by the way, we've hammered the stock tends not to do well on the actual week of the conference, but it's up 16% so

far this year. that would make it the top stock on the dow year to date. >> pandora down 2.5% even before news, hard news, about what apple will do in music. >> keep your eyes peeled for that. back to "squawk alley." now to wopner and "the half." all right, carl, thanks so much. welcome to the halftime show. our starting lineup for the day. our game plan looks like this. shale scheme, why one well-known energy analyst is using the word ponzi to describe the business of that boom and why investors should behair. bonds versus stocks. one of the most bullish strategists on the street says stocks may not be your best bet now. huh? you heard that right. you're going to hear from adam parker live as well to explain. dow and s&p 500 trying to avoid the fist three-day losing streak in 3 1/2 wee