so you can take the next big step. good morning, it is 8:00 a.m. attest la headquarters in fresno, california and 11:00 a.m. on wall street and "squawk alley" is live.

♪ ♪ welcome to "squawk alley," joining us this morning, jon steinberg is the ceo of the "daily mail" in north america. jon fortt is home from intel out west. kayla tausche is here. and the dow is at session highs, up 2000 points, we've not had a 200 point gain since the 8th of may, we're in rally mode. all major averages up 1%. big news in tech, netflix one of the day's top movers, the best performer on the s&p and up nearly 100% so far this year. comes after shareholders approved what should be a first step towards a stock split. reed hastings said the board will consider a split. but didn't reveal the ratio. a lot of discussion about past splits, we passed the anniversary of apple's 7 for 1. the "journal" argues that the splits tend to work out in the

year that follows. >> it's amazing they work. there's no fundamental reason that they would. it appeals to more of a consumer base. they just signed brad pitt's 30 million movie. >> going out to marriotts. >> i think it's a consumer play to get people to buy the stock in their kind of retirement funds. >> everybody wants someone, guys, to call the top on this name. because it's getting dramatic. jon? >> it is. and i'm looking overall at how excited tech companies are getting about content. we're going to talk a lot more about that. i mean apple has become a content-creating company. something they've tried to avoid for a long time. they've got a radio station now, they're employing deejays at a level they want to avoid. jeff bezos bought the "washington post." tech companies want to use it for their own purposes. netflix has done it in a proactive way with their original content. you wonder if it's getting

overly saturated. will that have eventually an effect on netflix as well? >> it's worth noting that netflix has officially doubled since the beginning of the year. it's up 101%. the next best performer on the s&p 500 is humana, which has been rising because of takeover speculation, that stock sup i want to say about 47%. that's just about half of the rise of netflix. which is gaining on its own momentum. it's at nosebleed valuations, 180 times 2016 earnings. >> and typically what you would use is growth to justify this. they're going to do 21% revenue growth to 6.7 billion. they'll go to 8.4 billion next year. to justify this price, they have to beat youtube, beat facebook, beat all of television. basically, the hopes and aspirations to justify this are beyond just putting up the revenue growth that are in the clouds for the next few years. >> so you're short the stock. >> i wouldn't buy the stock, it's too expensive.

i don't like really expensive stocks, it doesn't make me comfortable. >> maybe you should go into a side business. >> i think you're allowed to like companies and think that they're doing visionary things and you don't have to buy the stock. >> it's an interesting point of view. >> steinberg capital management. next up this morning, apple attracting some antitrust scrutiny. ags from new york and connecticut exampling how the company negotiated deals with music companies, related to the launch of apple music. at the same time spot phi announcing a new 526 million round of funding, values the company at more than $8.5 billion. revealing it has 75 million active users, he 20 million of them paid subscribers, it's already, kayla, what may be the best-funded start-up in all of europe. >> it is, and this part of the round is mainly european asset managers, we reported on this round having a first close, a couple of weeks ago, this is a follow-on to that existing fundraising round.

could you argue it needs the capital as it tries to grow, jon, into a broader content play with some of the new partnerships as well. >> but of course apple is the elephant in the room at this point. >> it's the content wars, with our elite daily video. we're putting our video content on spotify, we did the deal with apple to put our content on apple news as well. all of these different companies are competing to host the content. they've run out of doing things on the device layer, it's a very good time for content because i got so much love coming at me and now i'm looking to see who has the loosest slots in town. >> it's not love, jon, it's lust. they're using you for your fonts, for your body type. think that's the concern from the content perspective, these companies ever since microsoft's msnbc venture, kind of blew up and they didn't like it they said we don't want to get into content, that's not the way to go now they want content because

peopling are eating it up online. that disrupted the download model. netflix has shown that people want over-the-top video. i think you're seeing tech companies invest in it but they don't love it so much. like that news presentation from apple, i kept thinking okay, where are the ads? who's going to pay for all this? it wasn't clear. i don't think they've worked as hard on that part. and for my perspective, it's just as important to the reader to see how is this going to be paid for. how is this sustainable, as how beautiful does it just look on my screen. >> on the spotify question, a lot of discussion about the ratio of paid to free-tier subs, right? and how that's shifting and whether it's a tell as to whether or not people are going to want to pay $10 for apple music. >> i mean $10 is a lot of money. i don't think that a $10 a month subscription just for music is necessarily a mainstream product. i do pay personally for sirius

for xm. it's in the car. >> i told that to an executive yesterday, he said i was out of touch. he said most of america is not like you, carl. >> a lot of the music i listen to i've already bought. the time we were in high school and college, that's often the favorite music, we bought that stuff, listened to it over and over again. we want to know whalt kids are listening to. but do we want to pay $120 a year for that? most people do not. >> i would not like to be in the subscriptions business. >> i'm bullish on the flat form thing, i think the guys are going to have much better data. they've logged in users and for a publisher they're competing against the really crummy programmatic partners that monetizes stuff that we can't sell. i would rather be partners with facebook and apple. >> can i ask you about apple news, i know you were bullish on facebook instant articles when they came out and this seems to be a very similar product, i'm

wondering as a provider how you're viewing it? >> i think it inds up being a zero. one them ends up being amazing and a couple of them end up being okay. it won't be game-changing but it will be better for us publisher that now we have in terms of people monetizing what we can't sell. >> would you rather sell to apple news or facebook? >> i'm going to try them both. >> of course, i haven't seen a lot of facebook instant articles since the launch. we got that's beautiful and where are they? i'm still having the same experience, so it seems like publishers are hesitant. i can't help questioning is either one really a great deal for the content industry? we're seeing either programmatic or controlled wall garden. maybe neither one is a long-term bet? >> next up, the man behind the biggest ipo in history. this is alibaba's jack ma speaking about going public at an event in the u.s. yesterday. take a listen. >> if i have another life i will keep my company private.

i do it not for myself, i do it for the shareholders. customers, employees, they need it. i don't need it. this life is tough when you're an ipo. before ipo is already tough. now after ipo is much worse. >> life after the ipo, much worse. >> jack ma is going to join our own david faber this afternoon in a cnbc exclusive. beginning at 2:00 p.m. eastern. you think he's trying to spin something here? is he being honest? >> he's just stirring the pot. whenever you make a comment and look off camera and smirk out of the side of your mouth, it means you're trying to entertain the crowd. i think the stock is not doing that badly relatively to where it ipoed, it's off the 120 to 115. peck has a note out saying it's going to go to 110 on the back of alli cloud. i don't know how tough life is really for jack ma.

>> my thought is jack ma is a story-telling genius, i think what he's doing is setting himself as the martyr. he knows he's a target from chinese authorities, he knows he's a target for investors that expectations are so high. if he can recreate the right kind of story line saying i'm prometheus. bringing back-fire. >> i wouldn't say life is necessarily tough for alibaba post-ipo. but life is tough when the best quarter for your company is the first quarter after your ipo. that's when we saw the stock perform as well as it did. and ostensibly it will perform that way again at the end of this calendar year after singles day, 1111, but there is some momentum that comes out of the stock. >> to jon's point, i think that humility on this kind of thing, his tone of i'm just trying my best. it's a weighted position. a lot of issues that comcast had with david cohen lobbying like

crazy in washington, that probably did them in a little bit. if this he had h more of a meek tone. >> mankind needed that fire from the mountain. >> i'm just a simple high school teacher. >> jon steinberg joining us today. when we come back, elon musk setting an ambitious goal, 50% growth in the next two years. and we talked about apple music from an investor perspective what do the investors think about the streaming service? grammy-winning singer colbie caillat is with us and a headline in the "new york times" today -- "why i'm breaking up with the apple watch. "." ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it.

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growth over the next few years and those beta versions of tesla auto pilot technology by july. the stock is down about 1.33% following the meeting and joining us now is jamie albertine, an auto analyst over at steifel. your take-away from the meet something setting deliveries for the fourth quarter. self-driving car 0 in the next three to four companies but really no financial questions posed to this company. >> three main take-away, the first is the retirement of the cfo, scheduled for later this year. the second, that the thinner power charging cable coming to the super charger network and the third, 80% of the stationary storage business being designated for the utility sector rather than residential. infrastructure is a big concern still for shareholders, as they build out electric vehicle

penetration rates, so the charging is really i think something that's being overlooked a little bit this morning as well. >> jamie, it did seem there's a degree of surprise with the departure of the cfo. he said i've discovered more potential in myself than i can imagine. and he attributed that potential to elon musk. what does it say about where the company is and how do you expect the search for the new cfo to proceed? >> well i think it says that elon is relentless and i don't think that should come as a surprise, considering the trajectory they've engineered over the last few years with the model s. and certainly his work on solar city and spacex, which i'm not as fagg familiar with. but i think the search will be carried out very carefully. i think depak is going to be part of the search, as well as the transition and i think it's important to note in our read of the proxy. this isn't a condition where depak's options vest.

so he still is very much will have an interest in the future success of vehicles and stationary storage alike. >> jamie, i'm wondering what you think of this news about charging that came out? it struck me as interesting. one, the battery swap stations have not been popular. which you know, a bit surprising to me, i would think that people going on a long trip and maybe want a full charge might have done that. and also people who are locals to an area are kind of topping up at the free charging station where they really should be doing that at home and tesla had to send them a polite note saying you're siphoning our free electricity. please stop. should investors take anything away from those trends. >> battery swapping, to your point, they've made it very clear now that it's certainly not an option that they're going to continue pursuing. i'm not as surprised. i think you know, the battery is a big component to the residual value of the vehicle. you take ownership over it, you take care of a battery a certain way, much like you take care of

your own car. having to track your battery, if you will is tricky and probably not something that you know too many consumers want to do to save a little bit of time. so i'm not sort of surprised, on the charging side of it. i'm not sure what to make of the local comment. i think not enough is being made of the thinner charging cable. if they can get that charging time down significantly. that's going to change the whole sort of buying matrix that consumers are going to go through when considering an electric vehicle. so that it me is the bigger announcement. >> jamie albertine, we appreciate your time, a lot of near-term points of interest for this stock. we appreciate it. up next, still watching the market stocks soaring, we're getting headlines on greece, the dow sup 261 points, the first 200 point gain since early may.

welcome back, markets in rally mode. the dow is up about 1.4%. nearly 250 points. the s&p also up better than 1%. the nasdaq as well. joining us now is christina hooper. u.s. investment strategist at allianz global investors. christina, the markets have kind of been a little boring lately. but today we've got some movement. anything in particular you attribute that to? >> well i would attribute it to a general improving sentiment about the economy. and how the second quarter is going. what we saw was a lot of really negative sentiment about second quarter and the assumption that it was going to be a petty bad quarter. and what we're finally seeing is some economic data suggesting, actually the economy is coming back in the second quarter and it looks a lot better than we

thought just a month or two months ago. bloomberg is reporting that chancellor merkel's government may be satisfied with greece committing to one economic reform being sought by creditors. i'm not sure what you've been able to see this morning but how much of this short-term price action do you think is built on the hope that greece cobbles something together? >> well it's certainly helping a little bit. but i would argue that much of this is general improved sentiment as we start to digest better economic data for the second quarter. certainly greece helps, we've heard this before. this greek saga has gone on for years. and it will continue to influence on the margins both positive and negative sentiment as we hear about developments. but don't be convinced of anything with greece until it's a done deal. >> it seems, christina, like the bond selloff has been continuing, despite any bouts of volatility. be they a week long or a day

long in previous periods. we had seen the treasury market and the sovereign debt market be the safe haven market. but there seems to be a commitment from bond investors to start self-correcting or self-fulfilling. some of the yield prophesies, i'm wondering what you're seeing in the bond market and where the strength is coming from. >> we've been concerned about the bond market for a while. our concern is really based on the fact that we expect the fed to move sooner rather than later. and that bonds are far more vulnerable than stocks in this environment. so it seems that investors are at least on the margins, starting to process that. and recognize that bonds aren't necessarily the safe haven that we always or has been expected of them over the past several years in an environmental financial oppression. >> so given all that do you expect this positivity to continue throughout the week, if

you think it's not just necessarily the short-term greece effect? >> well, again, greece will impact things on the margins, as news develops around greece. but our view is that we're going to see somewhat improving sentiment. but a lot of volatility. because keep in mind, that there continues to be something of a mismatch between market expectations about when the fed moves and when we think the fed is likely to move. our expectation is that initial lift-off will occur before the fourth quarter. however, we think it's far more important to focus on the path of rate hikes rather than lift-off. and for us, our expectations is that this is going to be a very different rate hike cycle than we've seen in the past now rate hike cycles. one that's going to be far more measured and thoughtful. we believe that the fed when they say it's going to be data-dependant. >> all right. well volatility, perhaps it will be christina hooper from

allianz, thanks for joining us. >> thanks for having me. we're keeping an eye on the midday surge that we're seeing. simon is going to cooperate here and walk us through the european close. >> boy, is this an exciting close to watch. i kid you not. we have fallen for six straight sessions in europe today. this is a very strong broad-based rally in europe. look at germany, it's up 2.5% here rising even as we come to the close. italy up 2.5%. 95% of the stock 600 is in positive territory. things are normalizing in europe if you look at the bonds or even greece. let me show you look at oil normalizing for example. look at the effect that that has had on some of the oil stocks today making gains. at the same time, the banks continue to come through with changes, standard chartered is one of our main gainers, talking about improving the capital base. after the noises you heard from hsbc, that bank in the uk up 6% and the uk retailers that were so shorted by so many in the market, the figure there is not

as bad as people had thought. sales figures from sainsbury's, some of the shorts coming out if you look at luxury goods, chemicalsori s chemicals, all of them are rising today. the bonds continue to sell off and therefore the yields rise in a normalization way. it is more normal to have rates on the german 10-year at 1% than it was to have them at 0%, not so long ago. that's what's happening. and i'm really surprised to tell you the news which was very bleak on greece coming into the session and much of the session overnight has now turned around. carl mentioned the germans and the french have now agreed they will beat this guy who has arrived at the brussels senate, the prime minister of greece. for much of the session they said they would not meet him. because he had lost the commission as a friend quote-unquote. it may be that somebody from the technical teams working behind the scenes that they've agreed on.

it may be that they've walked back some of the aggression in the proposals the greeks were making, we don't know that yet. we will find out shortly no doubt. in the meantime, citi was talking about signs of exasperation earlier in the session. but they felt there was room for a deal still on the streets of athens, the more immediate news is that the european central bank, has said that it is now going to increase the emergency liquidity just a little bit more, $2.3 billion. but locally it was reported in greece that today they might actually increase the haircut on the collateral that the greek banks can post. in other words they would have tightened potentially liquidity for the greek banks. >> guys, it's worth mentioning there's only one country in the eurozone with bad deflation -- greece. there's only one country in the eurozone that doesn't have qe -- greece and the one country they might tighten liquidity on is greece. back to you. off the session highs, the dow is up 247. best day since early may as

kayla mentioned a moment ago. we'll keep our eye on that we'll keep our eye on oil. we've recovered 18 k, back above 2100 on the s&p. we'll talk to art carbon about what it means in just a moment. when a moment spontaneously turns romantic, why pause to take a pill? and why stop what you're doing to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction

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i'm morgan brennan, here's

your cnbc news update. in a major shift of policy, the obama administration is planning a new military base in the anbar region. it will also send 400 american military advisers to help iraqi forces take, retake the city of ramadi. the president has come under fire for not being tougher in fighting the isis militants. house speaker john boehner says he sees positive momentum toward passing a bill to give president obama fast-track authority to negotiate foreign trade deals. house leaders want to hold a vote on the bill this friday. a harvard business school study says the u.s. must lift an outdated ban on oil exports to take full advantage of its fracking boom. it said lifting the 40-year-old ban imposed after the arab oil embargo would add $23 billion to the economy by 2030 and create tens of thousands of jobs. and air travelers may have to buy new carry-on luggage or pay

to bring their current bags on future airline flights. an industry trade group is proposing smaller bags in an effort to free up more space in the crowded overhead bins. that's your cnbc news update for this hour, let's get back to "squawk alley." is welcome back to "squawk alley," an interesting market day setting up. dow up 249, we're getting headlines regarding greece. let's bring in art carbon, director of floor operations for ubs financial. you said in your note this morning that the rumors regarding greece would help stocks not bonds, and that's what's happening. >> unfortunately that's the way it's going, the rumors on this side of the pond is that merkel has made a decision and made it known to other people that she wants a deal done. she's going to get involved, whether that's true or not, the markets believe it enough and as simon told you earlier, the markets in europe spiked.

that led to some movement here. what you're see something kind of a two-pronged rally this morning. you went through two different resistance points. originally s&p, 2085, which had held us back for a couple of days. once they went through that. there was a sudden rush of buying. they then stopped at 2101. they punched through that and we had another rush of buying. the viewers can tell by looking at the volume, that what also is happening is that the buying is exploding into a very lightly offered market. not a lot of big offerings around. they're having to pay up significantly to get the shares they want to buy back. >> how does it play out throughout the day, as some of the headlines keep coming in from brussels? we've seen that the bulk of the volume happens at the open and at the close. what are we expecting? >> i think what we'll begin to do after now that europe is closed, is begin to focus on the other side of things. which is the bond market.

which is suffering somewhat and the concern of the stock guys is that if the yields move up, and people who are in bond funds and other places begin to get nervous, and they start to redeem their shares in those bond funds, that may force bonds to liquidate even more and thereby, push yields even higher. so while the fed is talking about being measured and data-dependant, they're potentially playing with fire here. because they could start spontaneous combustion that they can't control. >> and you say we're just about one basis point away from that to happen. >> i think there and rick santelli and barry and habib and others are looking around the 2.65 area. so those will be again, separate spots to watch. >> banks, now energy. can those two lead us anywhere good and what happens to the conversation that low oil was good for the economy? >> and the consumer was going to

spend at that tax cut he got? >> yes. >> well, that didn't work out. now they're taking the other side of the game. and allowing this to indicate that things are good in the energy field and again, it may help. remember that there have been contentions that a good deal of the payroll improvement that we've seen, that come from the areas of fracking and other places. so we'll have to hold on and see where that goes. >> taking a step back and just looking how we're set up for the second half of the year. hearing from a lot of people, i was just over with intel's ceo yesterday saying well you know, in north america, in western europe, things still look good. but in china, in emerging markets, still doesn't look so good at all. can north america and western europe continue to power things forward and into a good second half? or is that looking really iffy? >> it's looking somewhat iffy. remember last year that in the second quarter we had a pretty

good rebound and then in the second half, an even better one. that looks somewhat suspect and there's a concern that what's going on in china is beginning to affect some of the other asian tigers, even including tokyo and there's a sense that in desperation to keep their exports moving. they may wind up accidentally exporting deflation, with lower-cost goods moving around. we'll see, to call to your questions, the other side of the rising energy prices is that that moves away from deflation in the u.s. so you know, the old good news and bad news? in this case, bad news is good news. >> it's hard to, hard to swim when there's a big weight around your ankle and that's the deflationary pressure out of asia. >> but i think the viewers want to keep their eyes on bonds and see if they begin to become that self-fulfilling prophesy we don't want to see. >> art we'll keep an eye on it. art carbon, at post 9.

when we come back, the "new york times" fashion director and her very public break-up with her apple watch. but first, rick santelli, what are you watching amid this rally? >> you know, i know it isn't quite nine months, the bond market sg isn't having a 2.5% baby. but it's at 8 1/2-month highs, what it may mean for the next direction and art carbon is a sage man, 2.60s is that the next resistance? tune in after the break. the pursuit of healthier.ut) it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned... every day... from the smallest detail to the boldest leap. healthier means using wellness to keep away illness... knowing a prescription is way more than the pills... 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. realizing cold hard data can inspire warmth and compassion... and that when technology meets expertise... everything is possible. for as long as the world keeps on searching for healthier... we're here to make healthier happen. optum. healthier is here. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

coming up at the top of the hour, stocks snapping back big-time but the debate rages on, is a correction coming? plus ahead of jack ma's exclusive interview this afternoon. we speak with a top analyst who just lowered his target on the stock. and stephanie link is back. fresh off her new gig with tiaa/kref, we'll get her views on the market and where she's putting her money now. let's hop over to the cme to rick santelli, for the santelli exchange. hey, rick. >> hi, carl. we continue to see the treasuries bunds, much of southern europe, many rates across the globe, especially the higher credits in the securities market like sovereigns continue to move higher. now they do it in fits and starts. with lots of consolidation mixed in. now if we look at a chart while i'm talking, it goes back to the

taper tantrum that started in may of 2013. i want to you stare at the chart when i talk and pay close attention to the 160 level. the 160 level and the 2.60 level. the 1.60 is where it started in may of 2013. and 2.60 was the first impulse, but sideways we've dabbled a lot with that level. today is a guns hot day in treasuries. ha that means is that rates have moved to a point where they're stretching out the comps. in this instance we took out last week's 2.40-plus high-yield close and we're trading through it. close to 2.50. which means it's hot. this is territory we haven't closed in yield at in eight and a half months, october/september. of last year. when guns are hot, think about a monopoly game. remember the game we used to play, monopoly? what happens when you think you're doing well and you buy all the hotels an you need cash? you start mortgaging the hotels or mortgaging the houses to pay your fare. well, that's kind of like

margins, when we go guns hot, any issues regarding nully margined positions, positions have to come off to continue to either hold especially when when you're taking some heat, as being long when the rates move higher. let's go to the same chart, i'm going to go quickly. i told you to pay attention to 2.60. look at the 2.60 level. how many times we have dabbled and had either congestion or extremes at the 2.60 level? and we're coming up to it again. but what's more fascinating than that, is if you look at when the taper tantrum began at 1.63, its final impulse before a correction was 2.99, we'll call it 3%. what's the 50% of those two? right around 2.30-ish. if you recall, the last two tops we took out were right around 2.29. so let's keep this very, very simple. 2.29 to 2.24, march high yield close from the 9th, the 9th is important, the first time all

mall turts, 5s, 10s and 30s, closed above their settlement price from last year. so 2.24, watch below the market. 2.29 is where you start to get worried. 2.41 to 2.43, the level we were playing with on friday. we've blown through. i can't see anything that's going to cause us not to test the low 2.60s, i'll give you an old adage in my final seconds, markets run to and run away from high-volume particular areas. that is the 11th commandment of trading, back to you. >> thank you very much. rick santelli. overall markets, the dow is off its highs of the morning. but just a touch, still solidly in the green. we're going to get more from the nyse floor and the nasdaq about what this market is telling us. when "squawk alley" continues in a moment. you probably know xerox

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keeping our eye on the markets, still in rally mode, the dow up better than 250 points, the bob pasani is on the floor with a look at some of the biggest movers. >> we started strong, stayed strong. early we had strength in energy stocks as oil was on the verge of breaking out into the 60, $61 range. but then very quickly we started moving up and then sort of blasted off about half an hour ago. so this is a very broad rally. 5-1 advancing the declining stocks, good numbers and a lot of volume going to stocks on the upside, positive indicator, all 10 sectors of the s&p were up,

we were led initially by energy. but now many sectors are up more than 1%. look at the s&p 500, we started in the up mode and really just blasted off around 1110, 1112, you see the move vertical there. that's when we got word that angela merkel was interested in some kind of deal with greece. not just the u.s. took off, but europe took off as well. very strong close over there. take a look at germany, you can see even more pronounced little blip over there. about 11:10 eastern time. the german markets closing about 15, 20 minutes ago. that was the big news on the day. elsewhere broad rallies here, particularly in financials, we have many new 52-week highs today. in the regional banks. so huntington, keycorp, bb & t. many other names that are out there, zion, are at 52-week highs. not just moving up 1%, hess are new 52-week highs. a lot of the big banks, the money center banks, also are

hitting 52-week highs as well. citi group is at 52-week high. so is goldman, morgan stanley, also at a 52-week high. interest rates sensitive stocks. interestingly have had a very tough time. we noted many of them are in correction territory. reits are down 10% from their highs. not today. even though 10-year yields are moving up, they're not being, the interest-rate sensitive sectors are not getting hit. an indication of the overall strength of the market right now. i'll tell you what is missing here, jon and carl. what's miss something the volume. right now we're at 1130, 1145. only 300 million shares still on the floor of the new york stock exchange. we need to do a little bit better than that. other than that little complaint, this is one of the broadest rallies we have seen in many weeks. guys, back to you. >> just need a little volume to go along with it, bob pasani on the floor, thanks. up next, a telling headline in the "new york times" today it says "why i'm breaking up with the apple watch." vanessa friedman is head fashion

critic for "the new york times," she's the author and she'll join us here at post 9 up next on "squawk alley." ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms.

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back to the markets, still in rally mode off the highs a smimgen. bertha coombs is live at the nasdaq with more. >> certainly the outstanding performer on the nasdaq today is netflix. yet another all-time high on talks that it may do a stock split, it's up 100% year to date at this point. interestingly, netflix is so popular, marriott says it will put it on its tvs to try to ease the burden on wi-fi, it sucks up so much bandwidth as people try to watch their movies when they're away. today it's a small cap rally, the russell 2000 is up more strongly than the other major indices, it's about big cap tech. apple and microsoft in rally mode. adding the most in terms of point impact. 15 points to the outside on the

nasdaq 100. if you look at the major big-cap tech, sort of indices, the philadelphia semiconductor index, some of the etfs, with big-cap tech, those are the stronger performers. we've had a nice turn when it comes to biotechs, if you're long biotechs, they started off the day down. now as the rest of the market has moved up, those indices are starting to move up as well. but we do have one area that is under pressure and those are the cholesterol players in the new class of cholesterol. yesterday the fda panel recommended that they be the new one from regeneron and sanafi be approved. but with restriction force people with extremely high cholesterol. some of the other players, something that the health care industry is watching very carefully. this is kind of like that savaldi hepatitis c drug. if the drug were to be widely approved by the fda, that's

going to be a very big impact on health care payers, a very big impact on pbms and already are warning about this. and if it's more limited, it does their job for them if that's the what the fda recommends. finally we're overall here just seeing a nice move to the upside, i know bob talks about volume, but we are moving up there. back to you. >> all right, bertha, thank you very much. it's a public break-up with technology that might reflect what some have started to feel privately. the headline from "new york times" fashion director vanessa friedman this morning is titled "why i'm breaking up with the apple watch." and she joins us at post 9 to talk about why it didn't work out. good morning. what a conversation this has started. was it about you or was it about it? >> it was all me. >> you were hoping it would work. >> apple is a fantastic company. it's changed many people's lives, you know i'm not breaking

up with technology. i still love my iphone, love the ipad. but this particular piece of gear, because it really is a piece of gear wasn't for me. >> and we've tried to argue they wanted this to be a fashion item, right. not just a piece of hardware. >> i think so. >> you think it's more a piece of hardware? >> i think it's more a piece of hardware. >> why is that? >> apple sold this, sells it as it's most personal item ever, it's most personal product ever. but it did not feel particularly personal to me. yes, you can change the strap, you can change the face although the face tends to go to sleep most of the time, so it's a black face no matter what. but you know effectively, it is unmistakably the apple watch. no matter what band you've got. and no matter where you are go, people look at it and say oh, apple watch. and that's not about you, that's about the watch. >> clearly not a ludite. you've got twice as many twiller noters as i do. you took over "the new york times" snapchat account a few days ago. you said you don't like the fact

that people would come up to you and talk to you about the watch you were wearing. what you're wearing is a fashion industry phrase, some people would enjoy that. what was it about that that you found off-putting. >> anything you put on your body says something to whoever is around you about you, how you identify yourself. how you want them to identify you. and i just don't think of myself obviously which i hadn't entirely realized before. i don't think of myself as a first and foremost a tech person. or first and foremost an apple person. i'm a writer. >> you say it's more subtle than google glass, but that's not saying -- >> it's a lot better than google glass. >> are we stim at the point where wearable technology is going to take a while it come into mass affluent favor? >> there's no question and i don't think either google or apple or intel or samsung would say that they've completely solved the esthetic question when it comes to wearables. i think everyone has the sense, which is probably absolutely true that this is going to be

huge. sometimes in some way. but we don't any how yet. >> fitness has been one argument to buy it you say you know when you've worked out or not, right? were you not interested in measuring at all? and would you feel the same way about a jawbone or a fitbit or something like that? >> yes, this is kind of a fitness question. i'm naturally a skeptic and naturally cynical, i have a certain element of disbelief in anything that sits on my wrist that claims to measure my fitness, i'm just like you know, that may be my issue. it may be absolutely reliable. but i also think it locks you into this idea that how many steps have i done? how much, how much have i worked out? what is my heartrate? and actually it's much better, think from a kind of personal fitness point of view to be able to sense it in yourself and you know, judge it for yourself. what it does, it takes the power and the ability to assess your own state of health out of your control. and puts it in a kind of

object's control. when really, it should be your own problem. >> you do have something on your wrist. if apple, if apple were able to make a watch that looked just like what you ordinarily wear -- would you wear it? >> probably. >> you said a lot of your friends told you just be patient. you'll find a use case for it and you'll enjoy it. do you think it was just something that you're a type that didn't fall in love with it but that's not the common view of the people that you surrender -- >> everyone has their own personal taste. their own personal relationships. i'm sure there are people who will love this i bought one for my father. he thinks it's the greatest thing in the world. it's just, it's for him, it's not for me. >> i do think it's interesting as your piece is being read, people, some people enjoy apple sort of getting cut down a notch. is that surprising to you? >> you know, everybody always wants to kick the elephant in the room. you know, think that's sort of what they invite. i think they are big enough and

tough enough to swat everyone away. you know, they're clearly successful, so -- >> you know i think the biggest thing for me with the watch is that i feel like what apple does is it creates paradigm shifts in the objects that it specializes in. and that hasn't happened yet with this one. but it may. >> vanessa, thank you so much. vanessa friedman of the "new york times." let's get over to headquarters and scott wopner. ♪ ♪ ♪ welcome to the "halftime report." let's meet the starting lineup. josh brown is here along with jon and pete najarian and dan greenhouse, the chief strategist with bpig. our game plan looks like this, we're calling it a comeback. because missing link, stephanie link makes her return with a new gig and a portfolio near the top of our competition. mas moment with the alibaba big week sitting down with cnbc in a couple of hours, we