♪ welcome to "squawk alley" for monday morning. today john steinberg of the daily mail north america. with us as always jon fortt, kayla taushi looking snazzy on a day markets are having trouble staying out of the red but climbing off session lows. dow down 133. of course all the major averages in red as we get headline s over the weekend. negotiations regarding greece failed again. bob pisani is on the floor with a look at the movers. >> three to one declining to advancing stocks with no headway to getting rid of it.

it's been down all morningment people want to know if it's greece or concern about the federal reserve. the general feeling is this is mostly due to uncertainty about greece although it's modest. look at the dow. dow movers. this is a fairly diverse group of stocks all down. microsoft is weak. 3m, ibm is weak. merck. you have health care, the tech, te low come. microsoft on the down side. this is a fairly broad decline in stocks generally here. if you look at some of the other sectors moving there is concern about greece. interestingly for example gold doesn't have much of a bid. the dollar isn't doing much. i don't think it is too widespread. it's modest. gold isn't doing much at all here. in terms of market concern and volatility, the vik spiked up at 15 but not the range that would indicate concern. as i mentioned before, 20 is when i pay attention. it spiked up a little bit to 15.

still modest. international banks are one of the onlier area ares we are seeing concerns. modest in the united states. citigroup and jpmorgan are on the weak side. more concern the for ubs, credit suisse and other european banks. today don't have the big exposure to greece they used to have. the declines are only about 2%. overall we are starting to look rather technically poor in the market. it's the only comment i would make now. the s&p is 2% off its highs. carl, we are now below the 100-day moving average on the s&p 500. when traders are unsure what's going on they turn to technicals. ethics will be the 200 day move ing average. if we get close you will see more concerns in the market. carl? >> bob, thank you very much. from the technicals to tech let's talk twitter. prince alwaleed saying he was misquoted talking about twitter's incoming interim ceo jack dorsey. he said he didn't support dorsey

being the permanent ceo since he 's already running the company po bile payment start-up square. he said in a statement should mr. dorsey wish to the take on the ceo role i would support him . what the ft reported was wrong. jack dorsey talked about his interon friday. >> not a question i'm considering now. we have a great search committee looking for the right fit for twitter long terp. my tonow is to make sure our product cadence and momentum of execution continues within the company. also to make sure square continues its cadence and momentum with the strong team over there. >> meantime, shares of twitter having a rough day. a new 52-week low below $35. jon fortt said the interview was an embarrassment for costalo and dorsey. what's the long term? >> first of all it's hard for an

investor to parse exactly what's true and what's not when talking about twitter. it seems every statement that comes out you have to go really? he says -- dorsey says i'm not thinking about being ceo. really? you have been thinking about leaving things for a long time. you were passionate about power at twitter. now the saudi prince. what's he really saying? the quote in the ft. it would have been nice if he explained what he was trying to the say. if he wasn't trying to say he wasn't supporting dorsey. i think at this point what they tried to say was this is about execution. it's about coming out with new updates to the twitter product faster and faster. trying things. we have to the see how it bears out. at this moment it's a big moment of upheaval for twitter. dick costalo is popular with the rank and file but controversial among the executives at twitter who turned over quite a bit. jack dorsey will have things to

prove. >> jack dorsey is the next ceo of twitter assuming he does the job. there was a piece by henry blodgett saying he's interim. see if he screws up. i don't think there is another candidate. he's the product visionary. they have anthony noto. >> who was the target of a piece in the journal today talking about how he's in in central influence of the company. he has a lot of focus at a time when the company doesn't have won. they seem to be piling on responsibilities. because they don't want him to lose focus. they want him busy to keep him for the long haul. >> absolutely. you have the ops guy with nodo. revenue in bane. dorsey is the product guy. whether he can make product changes. he hasn't done any the past few times around. i don't know if there is a way to parse his interview other than saying he want it is job. you get asked if you want to be ceo say yes or no. saying you're not thinking about it means you want it. >> will there be bought? >> that's the other thing.

if the interim isn't played out it's cheap now. think about twitter at $24 billion. who can get it done? facebook, no way. apple, definitely. google, pmaybe. bids should be rolling in. >> there are people who want to be short but are chicken because of the possibility. >> being short is ex pensive. it's a popular thesis or has been for the last few months. i think the question over whether the company will get bought is especially topical. this is a company where dick costalo notified the board six or seven months ago he didn't want to remain as ceo. yet you are seeing an interim ceo this many months later and not a successor to him already chosen. because they don't have it done it makes you think, did they try to sell the company already and fail? are they not appointing someone perm feint because this is a plan? >> let's parse. he told one or two people who were board members six or seven months ago but didn't tell the

board. it's not clear how this story lines up. >> this is like 7th grade english where we all read a text and are determining the post modern meaning of the text. >> one, two, thr"wuthering heig >> he said i want to leave and they said, put jack in. some people said can jack do et. they said, let's put him in interim to see if it works. that's story that makes sense. >> who is the ceo of square if jack remains at twitter. square is not inconsequential. $6 million. >> steve jobs ran apple and pixar successfully at the same time. jack dorsey loves steve jobs. here is his chance to see if he's been the in the wilderness not only long enough to grow the beard but to develop a higher sense of management expertise. >> a lot more to come. next up, according to reuters alibaba will have a netflix-like video streaming service in china in two months called tvo with

content bought from china and other countries in addition to in-house productions. shares of netflix taking a leg down on the news in what's a rough take overall. executive chairman talked about original content rumors in november with david faber. here's what he said. >> does jack ma want to buy a studio? >> not necessarily. i want to learn from the inspiration, innovation in hollywood. in ten years we'll focus on two industries -- health and happiness. health industry which i told you about worrying about disease. happiness is that china is coming to the middle class. the u.s. and hollywood grows so fast when the u.s. grows tr from the big amount of middle class people coming. next 10, 15 years china will have a lot of middle class people jumping up. they need a good cultural product.

i don't want to see china's young people have a deep pocket and shallow mind. >> can it be this simple? can they be the netflix of china? >> only in china. only when all the other people tried to go into local and everyone said it was the end of foursquare and it wasn't. china is the place where the natural incumbent beats people who try to come in. search, portals. it's ballsy that he named it tmal box office. he's not concerned with taking a name. >> you say only in china. look at what sony did in the u.s. it's possible that alibaba, when the cultural issues between china and the u.s. and the kind of suspicion perhaps wanes that they could take a bigger stake in a u.s. hollywood product. >> the playing field is so uneven. there are issues around content and regulation. as we have seen in search and

with facebook, somebody who launches, that's the native player tends to have a huge advantage. this will be the case with then in china. >> it's an asymmetric market at best. being a chinese provider they have stake in lionsgate, "twilight," "the hunger games," "mad men." they are building a chinese product wit. the writing is on the wall for alibaba. they have been making vents for a long type. can netflix still enter china? >> absolutely. what issues will they have. china has enormous competition in video. ten cent is doing quite a bit now. there are other pure play video players there. it's not a fait accompli. relative to netflix or hbo they are well positioned. >> any read on ma's ambitions gets attention. good to see you. >> daily mail north america. coming up as demand for online video grows mark mahandy says

one company stands to benefit. he's with us. and a piece a few months ago saying firing dick costalo would be a huge mistake. we'll get his thoughts on the executive shake-up at twitter in a cnbc exclusive. watching the markets down now but fewer than a hundred points. working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this. leave early

go roam sleep in sleep out star gaze dream big wander more care less beat sunrise chase sunset do it all. on us. get your first month's payment plus five years wear and tear coverage. make the most of summer... with volvo.

shares of facebook are down by one and a third percent. the social network could be the biggest beneficiary when it comes to growth in video and mobile. with us is mark mahaney from rbc capital. great to see you, mark. >> good morning. >> you were working over the weekend putting a note on facebook. $105 price target reiterated to outperform. you think video and auto play will add upwards of $3 billion to the revenue. 40 cents to eps. why do you think it will be so big? >> we tried in this report to lay out a couple of greenfield opportunities. auto play video ads are a relatively novel experience on facebook. we have only seen them in the last nine months. we sense based on surveys of advertisers only 10% of the 500 advertisers that we surveyed are currently on there with video ads. 50% want to be on facebook with

ads. i think there is enormous appetite in the market and facebook has more video impressions, inventory. there is a natural win here we think for the advertiser and facebook. >> is this going to be as big as the mobile transition was? the transition to video on mobile? that's what some executives are saying. >> that's a great question. you know, we had one of the best, most successful pivots in internet corporate history when facebook fegerred out mobile. it took them a year to do it. that's probably a good set-upper for what will happen with video. our guess is long term, call it five years. more than 50% of ad dollars going to facebook could be in this video format. yes, to answer your question. as i'm scrolling through my news

feed lots of stuff starts auto playing. i may see a few seconds. is it counting as a view? is it fair to compare that sort of view versus a youtube view? if you could touch on that and also do you think facebook releases a separate video app at some point and becomes more of a direct competitor to youtube? >> jon, i will go back. those are the two right questions. at the developerer conference a few months back the tent with the most interest was the facebook video platform symposium, whatever it was. tent. that came up and the answer was yes. it will be a while before they can be a legitimate competitor to youtube. it's not far to see it this the future. there is an opportunity for facebook given the mass of people it's got and the

engagement it's got. there is a real opportunity for them to doer more in video. how they track it, you know, there are disruptive i ways. youtube has one of those. >> you said the volatility in management is unprecedented and they are requiring a new ex-eternal voice. who? >> so somebody with public company experience. i mean the size of this asset probably requires that. a current existing public company ceo or somebody who's done that kind of job this the past who has an understanding of the product side of of the business for consumers and product side for advertisers. there are few who fit the bill. one interesting idea, ross levinson may be interesting to be considered for this role. it will be a difficult turn around for whoever comes in.

a lot needs to be fixed at this company. >> what's is time frame you would give the company to figure it out to put someone at the top and try to affect the turn around? >> to be reasonable you have to be patient for a year. here is a great case study we had with marissa mayer attiy at yahoo!. she had a two-year honeymoon from investors but alibaba was helping out. a year or more. i don't think it is a quarter or two turnaround for whoever takes on the position. >> we are in early to say the least. great to see you. >> thank you. >> mark mahaney from rbc. next we are keeping an eye on the markets.

♪ ♪ hp instant ink can save you up to 50% on ink delivered to your door, so print all you want and never run out. plans start at $2.99 a month. right now, buy an eligible printer and get three months of free ink with hp instant ink. available at participating retailers. the most affordable way to print. hp instant ink. every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation

have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life.

welcome back, vm ware is looking beyond roots and servers pushing into networking and mobile devices. let's talk security as we digest the impacts of the massive hack of government workers' personal data which was disclosed last week. the ceo of vmware joins us. pat, thanks for joining us. you guys are working on network virtualzation as well. as you look at this environment, the government hack do you think this technology can help to prevent this sort of thing?

>> absolutely. great to join you guys today, jon. many of the use cases we have been driving with network virtual have been doing that. addressing new security models and enabling the security models to be associated with the applications and the devices. that's what our announcement is that we are doing later today around business mobility. one of the key things is cop bining network virtualzation with enabling business level security or enterprise security, bringing the two together to deliver secure capabilities for this increasing attack profile of business devices to address exactly the cases like we heard this last week. >> as i understand it as a layman, network virtualzation would allow you to create virtual walls around the areas that a hackerer would enterer into, make it harder for them to expand out and get data from all across the network. but you did a survey ahead of the announcement that you are making today of 1,000 businesses talking about how they plan to shift to a mobile model.

what does it mean -- shifting the core processes to a mobile podle? does it mean they are planning to run business off of smart phones? >> yes. in fact, it is exactly that. we finished the survey over 1,000 customers and almost all wanted to embrace business mobility to change the business prophecy but only 17% actually had. in that, the two issues are enterprise security, consumer simplicity. en abling those to come together as you describe is exactly the power of network virtualzation. but combining it with business mobility and the air watch acquisition we did is just knocking it out of the park growing over 100% year to year. today's announcement is key few technologies like the security use cases. key new industry partnership s and bringing those together to enable business mobility to change business processes for a key customer. some of those we have today are people like starbucks, striker who are embracing it to change

the way they work with their customers and run their business. >> we always like to look at adoption rates. it's strong in banks and retail. governments always a lagger. i wonder if you see a day where they start to get the picture earlier. >> yeah. in fact, we are exciteded about some of the things we are seeing in the government's space. air watch is beg embraced by several branches of government. by the white house and others. addressing this exact issue. we are also working closely with many departments throughout d. of the d. and other of the agencies. we are seeing good up take for the product. we are excited to see the momentum in place. >> some people may not be immediately familiar. air watch allows mobile device management. in other words the company can look across the separate and apartphones, see what's installed, how they are being used. what's driving that fast adoption in air watch? is it security concerns? just the expansion and use of smart phones?

something else? >> all of the above. making these devices secure for the business application, enabling the secure and managed relationship with customers. we used to be able to protect the enterprise and the fire wall and the boundary of the enterprise itself. now the attack is surface is anybody carrying a phone accessing services that the enterprise offers. the attack surface is now everybody and everywhere. that requires new levels of capability. that's exactlile what today's announcement is about. enabling business mobility to change how businesses on rate and the largest shift that's occurred in i.t., the transition to the mobile cloud era are of computing. we believe this is its own accomplishment in the next five years they will be out of business. >> all right. a lot of people are chasing that security story. trying to get business and government to change practices. good luck to you. pat , thanks for joining us.

>> thank you. great to be with you. >> european close in a few minutes here. simon is back to wrap it up. >> there is a lot of red. it to do with greece and news of the 11th hour talks with greece collapsed after 45 minutes leaving people concerned they are just too wide positions to breach moving further to cross moving further forward. also you have belligerent statements from the greek prime minister saying the resistance to moves on pensions is actually political from the rest of europe. the rest of europe reminding him that they don't have a 17 governments, a democratic mandate to give more to greece moving forward. greek's stock market is down almost 5% as you can see. on the major markets broad losses there. you will see reports that contagion returned to the periphery of the bond harkt in europe. that's true. if the sell-off is there nanne environment where bonds have been selling off recently and the yields are rising.

i will point out the yields on italy are no are where near where they were before we went through the promise of ecbqe and qe on a daily basis. we assume it's warning a lot of people it could be undisciplined from here and what happens to other countries around europe. the italian banks have sold off heavily today as you can see. their bond market cops under pressure. other banks across europe we remember from the cry are sis itself linked through to emerging markets like big french banks on the insurance are in negative territory. in athens there was an emergency cabinet meeting with the greek prime minister as you can see. interesting thoets for example from jpmorgan saying thursday's meeting of finance ministers in luxembourg, it's crunch time for greece. if the rest of europe has to give ground to greeks they have to get it through national parliament in some form before it can come effective. time is running out on the hard

deadlines. jpmorgan interestingly suggesting that the ecb while on wednesday it may increase the amount of liquidity available to greek banks as they suffer deposit outflows may make it conditional on thursday's meeting. if say then there was ult patly a deadline given to greece say for some resolution over the weekend they could walk that back at some point in the future. that's speculation on jpmorgan's point of view. but you have to understand we said it so many times that we are up against hard deadlines. these do seemer hard deadlines. back to you. >> simon, thank you. when we come back, not a good day for twitter shares slipping near 52-week lows. there was a piece a few months ago saying costolo would be, quote, a huge mistake. he'll weigh in on the future of the company with the dow down 130. but what if you could see more of what you wanted to know?

with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. checking out the listing on zillyeah, i like it. this place has a great backyard. i can't believe we're finally doing this. all of this... stacey, benjamin... this is daniel. you're not just looking for a house. you're looking for a place for your life to happen. zillow.

good morning, everyone. here's your cnbc news update this hour. the polar pioneer oil rig is departing the seattle area despite protests. they want an end to arctic drilling. several in kayaks were detained. the shell-owned rig arrived in seattle a month ago. a car bomb in baghdad killed at least ten people on sunday. at least 20 others injured.

several cars and businesses went up in flames. the explosion was timed to hit when the area was at its busiest. south korean health officials say two more people died of the mers virus bringing the death toll to 16. 150 more tested positive. over 2,000 schools shut down last week is have re-opened. ikea plans to get personal with american consumers. usa today reporting the swedish retailer plans to make a thousand house calls to find out how they are spending time and learn what the consumers need in different markets. that's our cnbc news update this hour. back to "squawk alley" now. >> thank you, sue. tough day for twitter. shares hit a new 52-week low on a morn ing when prince alwaleed comes out contrary to a report

in the ft. dorsey said becoming permanent ceo wasn't a priority for him at the moment. >> not even a question i'm considering right now. we have a great search committee looking for the right fit for twitter long terp. my focus right now is to make sure our product cadence and momentum of execution continues within the company. also to make sure square continues its cadence and momentum with our strong team over there. >> joining us this morning, steph curry, no jason calacanas wrote how firing twitter's dick costolo would be a mistake. he's founder and ceo of insight.com and has a post on ap taking on google. good to see you, j.c. >> great to be here. twoun go. >> congratulations on an amazing game. we can talk about it in a moment. first what do you think happened last week and what happens now over at twitter?

>> yeah. so twitter has been growing at 5%, 10% quarter over quarter. in its history basically. so wall street is upset about the growth. i don't think they have been paying attention. it's possible that the right size of the company is 300, 400, 500 million monthly active users. to force twitter to be facebook, i think is a fundamental misunderstanding of how social networks might work. they seem to be broken up by geography, gender and location. it might be -- generation, rather. it hieb that twitter is the right size and it is growing at a nice pace. they have had an amazing revenue run are-up thanks to s s to ada. the best parts of twitter are the advertising thurk run by adam. the acquisitions influenced heavily by adam bane and video.

of course shepherded by adam bain. >> how does twitter get the story straight? part of the reason why these comparisons to facebook are there is because twitter started making them saying they thought they could get as big as facebook, montization could get to facebook levels. you said you were going to explain on twitter how the company catches facebook. what does it mean and how does the company do it? >> zuckerberg reallized long ago facebook would not beat everything. no social network could be everything to all people. what's app and instagram. it's possible they become as big or bigger than facebook. if you look at what twitter did and what dick costolo should get high fives for is the advertising platform and they did exceptional at m & a. vine, per scope are great products.

they have started to reach millions, tens of million s of peep. i think if they continue on this acquisition spree in the same way zuckerberg did outhustling googlele and getting instagram and what's app twitter can do it on a smaller scale and take the twitter advertising network which is strong and well run and taking it as common infrastructure against a collection of brands. a collection of apps. er there are a bunch of companies that could potentially be very immaterial. nine feger user acquisitions. there are smallerer ones that could be singles and doubles for them. >> like what? what's a nine-figure material acquisition? we have talked about flip board. the company decided not to pursue it. what would make a difference? >> these are going to be three obvious and crazy ones depending on who you are. if they were able to convince evan spiegle to merge with snap chat you can take a $20 billion

company, $10 billion company, have evan run product and adam run the business side. then you have something that 600 million, 500, 700 million unique users every month that crosses generations. >> how would they do that? >> that would be a merger. a quick way for snapchat to be a public company. i don't think spiegle will go for it. you have pinterest, reddit. they are having montization problems and they have management issues in the companies. if those were available it could potentially bring a different group of people, a different demographic and allow a common infrastructure sell them. a common technology infrastructure which is what google did with youtube. common ad network. it's what facebook is doing with instagram. that's the thing i think dick costolo failed to do was explain the strategy to wall street which looks at a chart and goes, that's not as fast as this chart .

well, you know, not everything goes as fast as facebook. it's unrealistic to think everybody will be as great as the best player. >> wouldn't you argue costolo talked until he was red in the face trying to wean wall street off the mau metric? >> i think he did as good a job as he was able to do. he put in five amazing years and wall street ran him out of town. huge mistake for wall street. it's a reason companies don't want to be public. these donkey analysts don't understand a chart that grows like this won't magically go like this. it is growing at a nice pace. these businesses are delicate. if you tie to ramp them up there is a chance they go off the rails. >> a billion users came to the platform and didn't stick. if those users stuck the user number would be with close to facebook. >> there is a leaky bucket issue. product has been the weakest part of the twitter story. it needs to be shored up.

jackson as the interim ceo, it's clear he's interim and doesn't want the position. they have gotten better with product at twitter. you have seen the pace of releasing new products and new features. that needs to continue to accelerate. you can hire that person, find that person. >> who should the next ceo be? >> definitely adam bain. what we are seeing now is, you know, you need to run a process and see who else is available. there is really not anybody available. you saw what yahoo! went through to find somebody and they wound up with marissa. there are not a lot of people sitting on the sidelines in this economy where any great founder can raise $# 00 million to pursue a vision and own the majority of the company. you want somebody like adam bain. they are just going through the motions to see if they can shake somebody loose. it will clearly be bain. he's well respected in the company.

he's worked on the revenue and has done great in m & a. it's the obvious choice. >> i love how you are never in doubt. that's my favorite thing about you. lastly, it's warriors in six? >> yeah. absolutely. warriors in six. congratulations to lebron on congratulating himself on being the greatest playerer in the world and not being worried. sometimes it's about a team. that might be a twitter story. it's a great team. adam bain is a great team player. they may not be zuckerberg and have the greatest player in the world. but it's working for the warriors is. >> we'll see you tuesday negotiate. jason talking twitter and warriors. >> i think he called zukererberg lebron james. >> and analysts donkeys. >> up next, still watching the markets. dow the down triple digits. losses escalating in the last few minutes. we are off the lows still. we'll get more later on.

first, rick santelli, what are you looking at? >> absolutely. we are watching the market s and reading a lot of surveys as to what investors are thinking. we dead it today with rebecca corbin. we'll reconcile. a good chunk of healthy skepticism on the economy versus navigating the marketplace after the break. ♪ ♪ 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. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients, and small businesses like yours. so you can take the next big step. as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users

remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.

and life gets lived. you wouldn't take medicine without checking the side effects. hey honey. huh. the good news is my hypertension is gone. so why would you invest without checking brokercheck? check your broker with brokercheck. coming up, andrew wellington

made the cover of barons for being one of the best hedge fund managers in the businessment he only makes a couple of trades a year. he'll reveal a new name he's buying today. plus, time to sell micron. just got downgraded. it's our call of the day and wall street's best athletes competed for a great cause. we'll show you the highlights and how the team does. how much money they raised as well. see you in a bit. >> there were beasts on the field. thanks, scott. got breaking news on aig. mary thompson back with more. >> hey there. this is a lawsuit that was brought by aig's former ceo hank greenburg against the federal reserve. judge wheeler of washington, d.c. issuing his decision on this case in the 75-page ruling. essentially he's awarding no damages to mr. greenburg in this case.

however he says aig shareholders were wronged by the federal reserve when the government basically set a high price that was unrealistic for the stock it took in aig. again, no damages awarded. it appears the judge has again sided with mr. greenburg in the case. more details as we go through the filing. those are the headlines now. i would suspect that if this is the case the doj will likely appeal and take the case to the supreme court. we'll haver more as the headlines come through. back to you. >> watching the stock, too. thank you very much, mary thompson. let's get the santelli exchange. hey, rick. >> good morning, carl. i find it fascinating. i look up at the board and we are with around 235. we were below 20240 last week, around 239. the ten-year hovered. went down close to 230 before bouncing. what's counter intuitive is normally the quick notions of

weak equities bring about buying and treshys, push yields down. it's welcome amoving in the other direction. the equities are still down triple digits now. dow down # 111. i still see a decent offer in the treasury market. what's going on? today we have rebecca corbin on. that he did a special channel check by investors on the industrial sector. there is optimism there by inves tors with regard to investments. there is a healthy degree of skepticism. are they opposed? they can b. if you look at the year to date of the dow, s&p, a couple of things should jump out at you. the dow is quite negative territory. the s&p up a percent on the year. move the nasdaq up about 6%. that's more of a momentum trade. what we see is we have had a lot of days talking about more

records for equities. record highs aren't thatter far away from where we settled last year. the benchmarker for the year to date assessments. we are basically flat lining. interest rates are up 17 basis points from the 217 last year. what is missing in large are regard is what the atlanta fed gdp now tells us. 1.9 is the current assessment of second quarter gdp which is going to end if in a couple of weeks actually. the big four and 5% sustainable gdp crowd has gotten silenced. i think everybody is somewhat on the same page . what will we learn from the fed this week in i can't tell you. i am still in the camp that if they haven't made up their mind the word transparency is a crazy word to put in terms of trying to interpret what will be in their mind. what we are left with is skepticism versus nav dwigatinge market. there is a lot of h ubris there.

one thing we learned, things move fast. are you prepared? we'll see. jon fortt, back to you. >> thanks, rick. up next, stocks slipping but well off the lows. the dow down just over a hundred points and the one and only art cashin weighs in next on "squawk alley." it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class from mercedes-benz. ♪ hp instant ink can save you up to 50% on ink delivered to your door, so print all you want

and never run out. plans start at $2.99 a month. right now, buy an eligible printer and get three months of free ink with hp instant ink. available at participating retailers. the most affordable way to print. hp instant ink.

. welcome back. stocks are in the red but not as bad as the session low with the dow down 200 points. art cashin is joining us.

good morning. >> good morning. >> some of these technical levels have been right on the money. >> yes. we went down at the worst to test the 150 moving average in the s&p which was 2072. . that's where we stopped at the low last week. that gives you a potential double bottom. what was surprising was not that they bounced from there. what was surprising was that the bounce wasn't really any stronger. now, we're rern returning to the top end of the range for today which is bizarrely the 100-day moving average. they have been the boundaries so far. >> some traders are saying that the market hadn't priced in a negative greek outcome. they just assumed everything was going to work out but they had, because of that, if it does work out, we're not going to get a bump to the upside but we'll see downside moves if we keep getting these volatile headlines. what are you seeing?

>> well, the trouble is, particularly over the weekend, it has been a lot more acrimonious than believed. the german chancellor called the greek government as being a communist in many ways and the greek leader came back and said that all these guys were playing politics with his people. so i think you're pretty well right. last week there was a very strong feeling that merkel wanted a deal and when the meeting blew up first with the imf and then over the weekend, people are rethinking here. >> a lot of people believe it will come down to merkel again and she will get it done. are you in that camp? >> yeah, i'm kind of leaning that way. although, i don't like to hear the conversation that we heard overnight, that some of the german officials were asking their people to present scenarios for a quiet removal of

greece from what is going on. i think what people forget is two years back when this thing first came up, a lot of the greek bonds of debt were owned by banks and that looked like it was going to snowball. now it's owned by the government. so if it had been a bank that they defaulted on, they'd have to mark their assets to market, which would have been a disaster. since it's held by the imf and government figures, they might not market the market. >> how much effect will have have on the market? >> the press conference will be the thing. what will yellen say? i find it very difficult to believe that they will move this year when the imf and world bank both asked them not to. there is no protection for them. if something goes wrong, people will say you were warned. now you have no credibility left. i think they are going to have to, through the press conference

and upcoming speeches, rebuild a case for raising rates this year. >> next couple of days are going to be important. good to see you. thanks, art cashin. >> good to be here. up next, health care meets virtual reality. details on how that will work in just a moment. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging, a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.

when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. we monitor network traffic worldwide, so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most.

what does the future of health care look like? it turns out it could look a lot like virtual reality. meg has the story. good morning, meg. >> reporter: that's right. the biotech industry conference starts this week in philadelphia. we're discussing a lot of really kul futuristic 3-d printing. virtual reality is being applied in health care. click health built this system and said initially it's being used to communicate how drugs work for both doctors and patients and it could be used in the future for face-to-face consultations and for research and drug development to even surgical training. >> in the past, you'd have to train in theater as a surgeon, just like a pilot would have to

train in the air. as we've seen over the last 20, 30 years, pilots are now getting much of their training, the majority of their training in simulation, which allows them to -- us to benchmark and metric how they perform. we should be able to do that with surgeons and medical professionals. >> now, what does it actually look like when you put on these goggles? you are taken into a patients bloodstream. you can see their red blood cells here, you can travel through the bloodstream, other antigens, plaque buildup, invaders and how the immune cells would potentially fight those. it's kind of like the 1960 movie the fantastic voyage. we'll be bringing you those demonstrations with top ceos. back to you guys. >> thanks very much, meg. really quickly, just to

recap some of the individual losers, micron out of morgan stanley is weighing on chips in general, talking about the seize in orders not being too strong this year? >> indeed. we saw sandisk taking a hit and it raises questions. >> that's it for "squawk." now let's go to the "halftime report." steven weiss is here along with pete najerian. phil lebeau is live from the air show. and the stocks that could fly high or get grounded. no deal in greece means stocks are selling off to stop the trading week off the lows of the morning. as you might imagine, the