hot and it's cut day at the u.s. open. tiger woods had a round a third worse than anyone. it's friday june 19th 2015 and squawk box begins right now. >> live from new york where business never sleeps this is squawk box. >> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. all robo calls that come during dinner time all of that will be a thing of the past. first let's get to the markets. check out the u.s. equity futures indicated higher once again after three strong days

for the markets. dow futures are up about 40 points above fair value. the nasdaq is up by just over 12 points. today's big story is greece. reports say that greeks actually pulled more than a billion euros out of banks yesterday alone but they're saying the nation's banking system remains stable. they're holding a emergency call right now on greek funding. they're talking about whether to extend more liquidity to the greek banks. this could be a pivitol moment. she flew there because we're concerned about what is happening this week. she's joining us with the latest in a couple of moments. >> the bank of japan deciding to maintain it's massive asset buying program. that move was expected. there was a rough week in china. the shanghai composite dropping nearly 9% marking the biggest weekly drop in 7 days. we're almost there. >> no it's there.

>> don't we need to get to -- >> you're saying for the week. >> and here in the u.s. today we should tell you there's only one government economic report scheduled for release. the labor department will report on the state of unemployment numbers for may. >> that makes me nervous. >> the for anyone china, you talk about it so much -- >> if you look back at china how far it's come and how fast it's less concerning than when you see the huge massive moves there. germany was in correction territory. that concerned me a little bit more. >> what else? i think the situation in greece got more ominous. people saw her land at the airport. >> and then they decided. >> oh, she's here. so -- >> they have been pulling out 2 to 300 million euros today at this point. if there was over a billion pulled out yesterday that can change the situation instantly. that raises questions about whether the banks can open on monday.

>> may not open monday. >> yeah. >> and then i was thinking you know -- >> comments at an ecb meeting. >> hopefully this isn't like some big unraveling of the global financial sector. >> europe? >> yeah. i'm getting there. exactly. >> you could do reporting from europe. >> they won't close down the banks. i thought about that and then i said no. but if they close down the banks in paris that would be systemic. >> are you bringing your travellers checks? >> do people still use paper? >> i don't think so. >> i did call the banks and tell them i'm going to be there because last time they cut me off immediately. i went to the atm machine once and i was in scotland it was like you can't have anymore money. then you have to work with the collect calls. >> and hope somebody will pick up your call. >> hope that your phone works which i'm also trying to make sure. what do i need to do there we mail and phones.

>> well you're okay probably -- >> don't you need to add or get more minutes or something. >> you should be okay. you just need to be on the international plan. >> someone will hook you up. we'll talk about it during commercial. >> will you help me with that? >> i'd be happy to. >> so nice. we'll talk about what's happening this hour in europe. the ecb is holding an emergency call on greek bank funding. our chief international correspondent is there. she joins us live with the latest. michelle how concerned should we be at this point? >> we're at a pretty pivotal moment right now depending on the decision of the call scheduled to happen now. cnbc confirmed that the ecb governing council is scheduled to begin a call right now. a german newspaper reports that they are considering a request from the greek central bank for an increase of 3 billion euros in emergency liquidity

assistance. the ecb normally only does this once a week on wednesday. so obviously doing it again today is an extraordinary event. second the ecb extended a little more than 1 billion on wednesday already. so an increase of 3 billion today would be a very large amount. if you don't understand all the central banking terms, it's very simple, the decision the ecb makes is the difference between whether or not you go to a bank in greece and try to take your money out, can you get the cash? this is so far what's happening today. the clearest indication yet of just how fast deposits are leaving the greek banking systems. reuters quotes three different banking sources citing the figure that you mentioned, that more than 1 billion jurors rows left the greek banking systems yesterday in one single day. it was roughly 1.8 to 2 billion monday through wednesday earlier in the week. so much accelerated pace. this morning we spent some time. there's several branches right

here where we are frequently seeing what kind of activity we would see at the banks. very continuous numbers of people taking out withdrawals but no extensive lines. it's hard to tell if it's more than would normally occur. the reason specifically we wanted to do this is because of events last night. two different outlets reporting the following. they say in yesterday's meeting when the head of the euro group of the finance ministers turned to a member of the ecb and say can the greek banks open tomorrow the response was tomorrow yes and monday i don't know. that is an explosive statement. the mere reporting of it can become a self-fulfilling prophesy. you see this because of the flight of deposits. there was a large protest. not as large as we is seen in the past but a big showing a pro

euro rally. they're very concerned about greece leaving the euro. >> i like euro. >> yeah i'm extremely worried? >> why. because for the first time in my life it's very serious. >> i want to stay in euro. >> so next we wait to hear the results of the governing councils calls. they're always leaked every week like clock work. if they decide not to increase it that could be a problem. if they decide to cutoff the banks immediately that's going to be catastrophic. we doubt that is likely. they will wait to see what's the outcome of the emergency summit. yesterday we saw the finance ministers meet and now we saw the leaders of the euro zone

countries meet on monday. if there's no outcome there that may push the ecb's hands. we're at a pivitol moment here. >> we heard people saying that the whole time. a conversation with steve questioned and he was pointing out if they brought it back in and they devaled the currency massively it would help the tourism business and the shipping industry and the textile business. it might be the best thing for the country. why is it that they so desperately want to stay in the euro? >> so a lot of them have loans that are denominated in euros and they're unsure how they're going to pay those back if they end up with a weakened currency. that's one problem. you have an upper class or mortgage, et cetera et cetera. all of those benefits will occur that steve was talking about but at the same time there's a sense that among the greek people that the euro is progress.

that it's part of being a member of the european union and part of a wider capital community. they don't put it in those terms but it's a matter of pride at this point and it makes, in some ways, cross border transactions easier but tourism would most definitely benefit because things would get cheaper. greek hotels are still relatively expensive despite what we have seen in terms of -- we can't call it a recession. it's been a depression for the last five years when gdp declines roughly 29%. >> the same people probably michelle when asked whether they're in favor of the reforms that would actually bring it into a modern economy said that they're actually you know deserve to actually be using the modern euro they would be against the reforms that were necessary to actually be a modern economy. that's the -- that is your favorite shot there. is that your spot right there? because that's what we see when you're there, right? it looks familiar. is the shot taken by somebody

else? >> we could turn the camera that way and it would be right over there. >> no way. >> so we have choices depending on what we prefer. >> depends on -- >> but the point you brought up joe, your spot on. there's the rub right? everything in life -- life is full of trade offs. what do you want? do you want to be a member of the euro or don't you. it's about hard choices that thus far a lot of the greek people, even people we asked last night, what about the austerity measures? are you willing to absorb more? and there was hawing at best. >> i'm going to be upset if i see power lunch with that shot you know? you're doing the money shot. but we get that whatever that is. >> do you prefer that? we can try to turn it around? >> no it's all right. i don't want to see it if she's favoring some other shows.

>> it is a dreek drama. the greeks are famous for drama, right? they invented it i think. >> they invented it. >> it all comes from the greeks right? >> all right. i guess we'll be back in touch. let us know. >> we'll check with her throughout the morning. the markets continue to push higher here. the nasdaq sitting at a new all time high. this is the first time since march of 2000. the futures are pointing to a positive open for the dow and the s&p. the dow had a triple digit gain yesterday and the dow and s&p closed at 3 week highs. they're right within sight of records of their own. joining us to talk about the final trading day of the week is the qma managing director and also barclay's chief u.s.

economist and first of all, why do we see this sort of euphoria in stocks here even as we watch what's unfolding in greece. >> the big thing this week is the fed sounded a bit more dovish so people think the day of inevitable increase is pushed back further. >> do you agree with that assessment? >> maybe the market might be too complacent. the market is doing better and that's pushing up inflation. the fed will probably tighten in september and they may have to be a little tougher than the market expects. so i'd be a little more cautious on the market. i'm more cautiously positioned. >> you wouldn't put more money in. >> i've been holding on to more cash than i normally would and

we pulled back a little bit. still overweight stocks. >> you're just waiting for some pull back? maybe not even a correction? just a pull back in general? >> we'll get better prices for both stocks and bonds before the year is out and we'll be ready to put some of that money back to work. >> michael when you start thinking about what the fed said this week did it surprise you? did it change your opinion of when these rate hikes are going to come and how quickly? >> what we found is there was a difference between what the statement said and what the press conference said. the longer the press conference went on the less confident you were that they were looking to rate hikes later this year. our view is that the economy is fairly solid. a rate hike later this year seems reasonable but the need for decisive evidence without saying what that means makes it

a high bar. evidence could easily be say, two solid figures on consumption in the second and the third quarter which they won't get by the september meeting. so the more the press conference went on the less you felt sure that janet yellen had confidence in her own outlook. >> does it change your opinion about the economy or do you question the fed's statements and fed's opinions? >> that's a very good point. it doesn't change our view of how we see things. we have a high degree of conviction. where the u.s. economy is and where it's headed and that it would be appropriate for a rate hike later this year. it changes our view of how they see things so when she says the jury is still out and we need decisive evidence those things are hard to map into a september rate hike. so it feels like there's some slippage and the rate hike soon is the fed's equivalent of free

beer tomorrow. so it feeds the perception that the fed doesn't have the desire to move rates any time soon but they just don't want markets to get too far away from it. >> is that part of your reason that you don't like stocks at these prices? do you think the market is now being a little too reluctant to think that the fed hikes are coming in? >> i think over the last five years or so since we had the recovery the markets have done much better than the economy. the dow is up 150%. wages up about 15% since the bottom in 2009 and i think this year might get a little bit of a transition where you get a little better wage growth than we've seen over the last several years and with stock prices now expensive compared to their history with terningingshe earnings growth weak this year and with the combination of the stronger dollar and higher wages there will be a little pressure after tremendous profit growth. so i still like stocks in the long run.

we're still overweight stocks but we're maybe just a little bit stretched here and that we might see -- this will be a year better for main street than wall street. >> would you actually sell on some of the strength right now? >> a little bit yesterday. >> i talked to a couple of hedge fund guys. >> i was selling a little bit yesterday but not in a massive way. just trimming a little bit to pull back into the positions we want to hold in terms of the overall risk of the portfolio. >> is part of that some of the international happenings will catch up? >> i still think as i have thought for years that eventually a deal will be worked out but have to say the odds are lower. i used to think it was 95% plus that the deal would get worked out but human beings make mistakes and now that we get down to the 11th hour i still think it's 60 to 80% of the deal will get done but that's not 11%. so that's a little bit of a risk factor that effects stocks worldwide. >> if it doesn't get done are you of the view that's baked into or no. >> i don't think so.

the markets think the way i do. likely a deal gets done and if a deal doesn't get done it will be quite negative for european stocks and probably negative for risk assets worldwide. >> michael, i know we don't have any major data points today but what are the next series of numbers you're waiting for to figure out -- confirm that you think things are headed in the right direction. >> two things i would mention, we have the third estimate of q-3 gdp. you'll get an upward division of consumption there. so the headline number would be roughly plat but you could see consumption data underneath and the personal spending data for may will be important f. the fed is unsure about where the consumer is and where the strength of consumer spending is, then this is the data we have to see. how strong is consumption in the second quarter? does a combination of a stronger consumer and declining unemployment rate keep september in play or does it slip further? those are the two things we'll be looking for next week. >> thank you both. >> thank you. >> coming up when we return

we'll talk about fitbit racing to the 8th best performing ipo of the year. that story next but first here's a look back at this date in history. ♪

>> shares of fitbit soaring more

than 48% yesterday. it was the fourth most active stock on the stock exchange. the best debut this year. we'll have to catch up. maybe we'll talk about that. despite the big welcome to the public markets it's worth noting 2015 hasn't been a stellar year so far for the ipos. according to a new report activity for new offerings around the world declined 57% in terms of numbers of deals and capital raised during the first six months of this year. that compares to last year. here to take us inside the numbers is jackie kelly. america's ipo leader. good morning to you. >> good morning. >> so help us with this. it's down. we understand -- let's do this. let's talk about fitbit and what that represents. even though we're down whether we'll be seeing a lot more deals as a result of the reaction to things like that. >> we love it any time a brand name comes out and has great

performance. that gets the market going. we're expecting good momentum out of this. we see probably almost 20 companies lined up to price right now. >> if those 20 companies actually price how will this year end relative to last year? >> it's still going to be down from last year but we are expecting the second half to be stronger. >> and when you sort of talk about the function of why we have had that decline, what was it? >> last year toward the end of the year we had market volatility. we have been pumping a lot of ipos out. it was a record year last year. we're all so excited so we're going to probably end this first half of the year with the ipos. all of us going wow markets are still slow. >> reaction this year compared to last to the ipos in terms of performance out of the gate. >> performance has been really strong this half of the year. so even though we have fewer numbers we're still 20% over ipo performance. >> when you think about as a

retail investor whether you can get into an ipo or not and whether you can even get into it at the original price. >> yeah. >> what -- walk through some of the points. >> i think you should get into ipos and i think -- >> you should. >> you should. if you can get it at the ipo price. >> well, you know, ideally yes. now what's happening is -- >> if you look at the performance track record over the last five years if you got into an ipo -- if you didn't get into the ipo at the ipo price but within the first day or two where would you be? >> you'll still be up. ipos have been performing well. they're still relative to equity indices overall, people are investing in ipos because they're out performing the market in the short-term and long-term. if you focus on short-term pops there's fine nuisances in juggling the investments there

but most of the other vin investments, the number one is health care, these are longer term investments. >> in the last segment we talked about -- i think we ran across the bottom we talked about bubbles. to the extent that you can look at the ipo market and correlate to where we are in the cycle where would you put us? >> i don't think we have bubbles. the marks are at highs right now. it's very exciting at the ipo date but the issue becomes sustainbecomes becomes sustainability of the price. >> a separate related question which is to say it looks like the margin has come down. >> well we have a lot -- you may have noticed this we have a lot more banks on the deals these days. so obviously very hot exciting technology ipos and some of the others in the other spaces

there's more negotiation going on now around what that looks like. >> and this is a philosophical question. do you consider fitbit ipo in a success or failure in terms of pricing. this is an age old question. is that success or failure? >> i leave that up to the management team. how they view that but i think strong pricing, strong after market performance is definitely the investors welcome that. >> okay. thank you for joining us this morning. >> thank you. >> appreciate it. >> coming up walmart bringing back it's greeters. we'll tell you why. plus day two on the u.s. open. look at the leader board next. first as we head to break, a look at yesterday's s&p 500 winners and losers. ♪

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okay. i don't know what you guys are talking about. i could talk the entire time. >> go for it. >> okay. a lot of things to like about the u.s. open. taking place in washington state. first time its been on the west coast so you know last night i was -- i thought i was watching like a replay and then they said here's the 225 group and it was like 5:25 and i was like that's

live. >> 6:00 to 10:00 p.m. is the major time. >> so you get to watch. so it's neat and the course looks like a links course. it's bizarre and it's on -- it has this beautiful views of the pugent sound which reminded me of our former anchor. we may hear that on another network. but that's where it is and i would just tell you one thing, i have sources that are high up in the sports business and i did message one to say i'm going to give fox time because this is the first year the u.s. open has been on fox. so it's all new guys. the person i sent it to said it's harder than it looks to put the cameras in the right place. i don't think i saw a single ball actually in the air and the

angles were weird and they got the -- and i'm not used to the -- like greg norman not used to him. they have steve flesh and i'm not used to it so i'm going to give it some time but if you look at twitter. >> people aren't happy. >> you're used to something, donny miller and dan hicks. >> none of us like change. >> i'm just not sure yet. tiger shot 80 and it just started bad and got worse. he bogeyed the first hole and he threw his club. this is the shot. >> let's see this one. >> i didn't see that. >> club goes up in the air. >> no i saw him -- you know that's thick. but i saw him slam his driver down on one of the holes. i love tiger but still. he hit a great shot out of the line a bunker and he was smiling. it's tough to be tiger right now because when things are going

great you're the greatest in the world and when things are going bad. a 15-year-old beat him. but great players are close. phil needs to win this to have the career grand slam. >> i love seeing him. what is he? like phase 4 now? >> yeah, one under and the lead is five under. >> he's our new friend. he'll have to come back if he wins. >> you're glad if something comes out of this. he took some time off. >> but seriously 12 more years. i said can we send some consultants over from nbc? help out a little? >> explain. >> here's where the cameras should go. here's the way to cover this. we'll see. my thing is 12 years. so hopefully today will be better. but it was fun to be able to

watch in primetime. >> you're not going to get to see. >> i know. is it possible the plane has -- >> not internationally, no. domestic yes but internationally it's harder. >> maybe you can get wifi. >> i don't know how to do that. but you don't like that company. it doesn't work right? >> oh go go. you can't do that internationally these days. >> come on. >> they're starting to try. real quick and we might be a day late on this story but we wanted to mention it which is ariana huffington who is a friend of squawk. we talked about her last week when we were talking about aol she signed a new contract. she'll be at the company for four years. there's a lot of speculation. we speculated she might not be. >> what if they sell it? >> they said they're not selling it at this point and they made some promises. >> what i don't know is that -- but they have put some money in. >> i don't know if there's a change of control provision in her employment contract. in fact if i were here -- >> you would want one -- >> i would want one.

but when your name is on the door a assume they had to give her a good deal because they want her to stay. >> do you have a change of control? will you do my next one? >> you need a change of control. you need a key man agreement. >> no way. >> absolutely. >> what's a key man do? >> you make as much money as anybody else. >> you have an agent. >> i do. >> wait is key man where you make as much money as anybody else? >> no that's a good deal too. that's a good little provision that you're talking about. >> they're not going to -- sorry to say they're not going to give you that. but what is the key man thing. >> no the key man is often times if a person leave ace company then your contract would be void too. i don't have that. >> oh you don't. >> do you have change of control? >> no i don't have any of these things. >> do you get to fly first class. >> no. >> yes you do you liar. >> we fly business class. >> same thing.

>> sometimes. >> let me tell you about walmart because you know that just a few years ago walmart got rid of the greeters that would say hello and smile to you every time you came in. this was an invention of sam walton himself. he liked having people there to smile and when he did write his biography he said part of it was to give a warning to thieves so they wouldn't be stealing things noticing somebody is there checking things. three years after they got rid of them they're testing a new format where they bring the greeters back in to about 3,000 of the stores and they'll be doing double duty. not only smielgling and saying hello. they're going to make sure that you're not sticking other stuff in and they'll be checking your bags on the way out the door. >> so they're not greeters. >> that's kind of weird. greeters. >> it was always a nice thing. someone that would smile.

>> the lowest possible prices. >> employment. >> shrink is what they call it when somebody steals stuff. >> shrinkage. >> at walmart it's 0.13% of the market. >> i'm thinking george castanza right now. >> so anyway 0.13% of their margins are lost to shrinkage. but they have sales of $288 billion so it's a big deal when you look at the grand scale of those numbers. >> you've been to walmart how many times in your life? >> a hand full. >> a handful. >> i'm going to get you a video because i made a individual wroea video for you guys when i went to walmart. >> coming up an activist

investor getting into conagra and we have the details next. what story is grabbing your attention. tweet us at squawk cnbc and use the hashtag keep squawking. we'll share the best of the bunch. we'll do that at 8:50 eastern time. squawk box returns in just a moment.

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welcome back to squawk box this morning. u.s. equity futures on this friday morning are looking up. dow would open up about 40 points higher. nasdaq up 13 points higher. making headlines this morning, the right hand man is leaving the manhattan u.s. attorneys office. he is stepping down to become

general council at hedgefund elliott management. paul singer will be a key part of our delivering alpha conferences here. it's an on going story of people going from one side to the other. people raising questions. he he warren can't be happy. >> conagra is being targeted by jana. it's seeking to change it's board. they'll also be a speaker at this year's delivering alpha hosted by cnbc and institutional investor and red hat posting better than expected earnings and revenue but the profit guidance is in slightly short of current street consensus and that stock is down by 2.25%. >> investors closely watching the fed to get a sense of when rates might finally start to

take off in terms of what they do. rates obviously can move on their own but as the easy money flows on both here and abroad let's look at some of the emerging markets that may fair best and worse. joining us is the head of global em strategy. emerging markets at ubs. good morning and you don't have to look past shanghai today to see that not every market -- it's not a rising tide lifting all boats at this point, jeff. >> no the markets overall in em have recovered a little bit over the last couple of days after the fed was more dovish on tuesday, i guess but china has been doing well for a long time and it's correcting a little bit now. so i think it's behaving very differently from the rest of the emerging markets themselves at

the moment. >> europe was a couple of years behind the u.s. in terms of qe and the u.s. market looks ready to go to new highs. should we expect the same eventually from europe. >> yeah we like european stocks a lot in the sense that you're getting a benefit from not only the drop in oil prices but also of course overtime from the strength in the dollar and the weaker euro. so europe has a lot of catching up to do compared to the u.s. given how strong the u.s. has been recently and what's interesting is in my world some of that is spilling over a little bit into emerging europe. into eastern europe where we're seeing some strength in terms of economies but the problem for emerging markets overall is the growth picture is still pretty

poor and that's what is holding us back. >> how much of the activity in terms of the emerging markets we remember when they started to think about raising rates, they go to terminal pricing immediately. how much of the activity over there in the positive market activity was due to the u.s. fed? it's hard for people to believe that it can trickle all the way over into emerging market. >> it does because of the liquidity factor. you'll be referring to the so-called taper tantrum in the summer of 2013. liquidity tends to get pulled out of risky markets and that's how we get hit. in a world now where there's a lot of disappointment over the performance of some of these economies in particular with respect to equity strategy in

terms of weak performance of earnings earnings, the fed is a very important marginal driver. we had a very big rally earlier in the spring when the fed turned very very dovish in the middle of marchand the fed is doing that a little bit for us over the last two years. the way we get away from focussing on the fed is to get growth. that's what has been absent so far. very disappointing relative to expectations. >> you do actually have an idea of which markets in emerging markets will be defensive to a fed rate hike. i don't own any stocks in cutter right now. i would have to have a pretty good broker wouldn't i? >> yes you would. the reason we mentioned those gulf markets is because well first of all they have merely gone into the emerging market index about a year ago and they also run fixed pegs against the

dollar so those currencies are going to be stable against the dollar and suffer the same degree of liquidity withdrawal. that's why we mentioned those markets but the two obvious ones that will be more stable are china and taiwan. the a share market we talked about earlier is up 150% in the last year when the fed raises rates we think those shares will hold up much better and also we think taiwan is pretty defensive as well because it's very closely tied to the u.s. economy through the technology sector. >> i like where you say and greece. raising rates here -- there's other things happening there that you should factor in. >> correct. >> i understand that. that makes sense. >> that's right. >> and the ones most at risk indonesia, malaysia thailand

turkey, hungary and chile at risk. any place in south america that looks positive to you right now? >> well the problem in latin america has been an absence of growth. it's been a very disappointing year but the market we like the most is mexico because it's tied to the u.s. economy. it has a cheap currency and that should encourage flows to come in and we read a report a couple of weeks ago suggesting that the consumer is beginning to pick up a little bit. that would be the one market that we advise investors to take a look at even though valuations are relatively high. some of the fundamentals are turning more positively there. >> thank you. appreciate your time this morning. >> thank you. >> okay. coming up, working smarter not harder. easier said than done but the author of a new book is going to bring us a few tips next. first as we head to a break, check out the price of oil this morning. you're looking at crude at 5976.

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welcome back to "squawk box," everyone. the fcc is taking steps to prevent robocalls and spam texts. there's a new plan from the regulator that will allow phone carriers to block the annoying things everyone you get from landlines to cell phones if requested by consumers.

tom wheeler says his agency fielded about a quarter million calls about robocalls last year. i thought we had this before? i put myself on the do not call list a couple of times. what happens? why do they get to call you even when you put yourself on the list? >> they're the only people who call me. >> i believe certain types of calls they're allowed to do. it can be like a philanthropic thing. >> once a week i win a free cruise to the bahamas. >> people want to sell me extended warranties on cars i haven't owned in five years. and i'm afraid to turn into that reporter. where was she? >> oh right. she was at the impound lot. >> yes. >> now i'm afraid. i try to be nice to everybody. i'm afraid they're going to record it and then i'm going to look like -- >> this is you being nice to everybody? >> yeah. this is me being nice.

>> we're going to talk about working this morning. consider this work. this is work for us. the phrase work smarter, not harder is thrown around a lot. but what does it really mean? a new book aims to answer that question. it's called "activate your brain: how understanding your brain can improve your work and life." tells us how to boost that is the author of it. founder of complete intelligence. good morning to you. >> thank you. >> we were talking during the commercial break trying to figure out how to activate your brain. people say work smarter, not harder. how do you actually do that? because i find actually the more i work i always need more time. i always need more time. it's not that i can actually somehow get it all done in a tiny amount of time. >> right. time is always of course the big thing. and you know and everybody else knows they're not going to get more time. i think, you know when you look at three things that are really critically important for operating our brain really well. first off, our brains are --

don't do well being on constantly. and we think that they are. we think because our eyeballs are open and we're roaming around, having conversation that it's actually in full power. but they're not. we need a lot of downtime. we need a lot of microbursts is the first thing. about every 50 to 60 minutes, step away from what you're doing. go rehydrate which is critically important for the brain. re-up on your carbs which is a big deal. a lot of people don't want to do carbs, but your brain needs complex carbohydrates to function. >> complex not simple. >> what is that? >> stop skipping breakfast. >> complex are the carbohydrates found in nature. >> not breads. nothing white. nothing that ends in "o." so the microbreaks are really really huge to be able to get things done. the other thing is learning to

focus. that's a difficult thing. most people haven't learned how to focus in their careers. >> okay. here's the question about focus. this is what i want to know about focusing and carving out your time. one is people don't really control their own time. in that they're getting e-mails from people oftentimes people who are their bosses or colleagues who expect an answer. hard to create an environment where the other person doesn't expect you to return the e-mail or whatever it is for hours on end. and i don't know if you find this offensive, people who send you the invitation in the e-mail for a meeting. they tell you the meeting is at this time -- >> i never respond to those. >> you accept or decline or whatever and they don't ask you beforehand if you're available or not. it's a very binary decision. but it's not your decision because they expect you to be at the meeting. >> it's a matter of choices. certainly the younger you are in your career the more difficult it is to say no. you have the whole first in last out. the person who makes the most in

their career is the one who comes in first and stays the latest. and we're seeing that that equation doesn't work. goldman sachs what was it yesterday? decided to create an interesting rule that disallows interns from working midnight to 7:00. it's a start. but the thing is we can take hold of our calendar in a variety of small ways where we don't have to ask for permission. and really shutting off, going literally and hanging out in some cove somewhere where you can get away from all of the electronic entanglement that is battering our brain. we literally need to de-energize our brain. and the fact is what we're seeing is people are not only stressing out, but they're burning out and leaving. in droves what we are seeing that huge retention issues inside corporations. >> thanks for coming in this morning. we're all going to try to

activate our brains for the next two hours. >> what were we talking about? i find downtime during your interviews sometimes. i can take a total -- i'm so relaxed right now. >> you're complimenting scott. >> who? coming up, this morning's top stories. including bank fears in greece. and dom chu will join us. stay tuned. "squawk box" will return. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about.

that's where at&t can help. with the tools and the network you need to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most. 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.

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news out of europe. ecb calling an emergency meeting on greece. financial future of the country hangs in the balance. so much for the june swoon. the nasdaq hitting an all-time high. the dow and s&p 500 surging. could investors keep riding this bull into the summer? video games going to the

next level. new titles more online action virtual reality. what will dominate the industry? we find out from gamestop. and following the crowd. the crowd of gop candidates. who will rise above and who is just wasting the party's time? the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" right here on cnbc first in business worldwide. i'm andrew ross sorkin along with joe kernen and becky quick. our first story, holding a conference call right now to discuss emergency funds for greece. that comes amid worries on a run on greek banks. also american express has halted its practice of preventing merchants from steering customers towards rival cards. that comes after a judge ruled

that the practice was anti-competitive. and the bank of japan is cutting the number of policy meetings it holds each year to 8 from 14. thank you very much. let's look at the markets this morning. it's been a pretty strong week for the bulls. let's look at the futures this morning. you can see they are in positive territory once again with the dow futures up 43. and the nasdaq up by 14 points. this is all coming after the dow was up by 180 points yesterday. the s&p also seeing a gain of 1%. and the nasdaq up by 1.3%. the nasdaq hitting its -- passing the high from march of 2000 closing at a record high. the dow and s&p 500 closing at three weeks high. this is the best week we've seen for the markets in about two months. check out what's been happening in europe. the bigger concerns there have been greece to this point. but this morning even the european markets are in on the action with the dax up by about

1.2%. similar gain from the cac in france and the ftse up .5%. last night the nikkei closed up almost 1%. and the shanghai down close to 7%. >> it's incorrection territory. >> also take a look at what's been happening with oil prices. wti is back below $60. it's a decline of 1.4% to $59.61. the 10-year we've been watching. we were looking at yields yesterday. but at this point you can see 2.31% and that yield is slightly higher than it was overnight. >> we're watching it quickly -- just look and look away. >> very quickly, trying to get the boards to turn. that's my hint to everybody turn faster. look at what happened to the euro. >> oh, good. >> yesterday was at a high. this morning dollar's stronger.

1.13 essentially. gold prices down by $2. $1,200 now. the nasdaq closed at record territory after finally taking out its best intra-day mark set 15 years ago. but the latest surge has some people worried about lofty evaluations. and dom chu joins us now with more. i hate it when you worry, dom. i want you to be happy. is this you? or you're citing other people? >> no i want to be happy as well. we're going to provide kind of a little bit of perspective. so more factually based. we'll let you make up your mind object whether you think it's a lofty evaluation or not. when we take out these record highs, the old one from march 10, 2000. we had an intra-day high. we blew by that mark to settle below that area. if you look at the new heights we're reaching now, with the nasdaq composite, it's stunning to put a 15-year chart up here and show we're up just about 1.7%. but just now taking out those

highs, were valuations similar to where they were then. and the basic answer is no. if you look at e the larger cap stocks within the nasdaq 100. that component within the nasdaq component we all know about, the amazons of the world, that kind of thing. if you look at some of these stocks that have kind of made these new highs or helped drive things around componentwise, monster beverage is one of those stocks. one of the biggest moves we've seen during that time. back -- it was a 25, 27 cent stock split back then. and it traded at around maybe nine or ten times earnings. this time around, it's also trading ating at around 50 or 60 times earnings. we have seen that go up. other stocks within the nasdaq itself, the current nasdaq 100 have seen some valuation differences over that time. so if you take a look at names perhaps like a yahoo!. you know, back in the old days yahoo! was trading at 1700 1800

times earnings. cisco 233 times. yahoo! 1780. and then cerner. those were the top earnings. among current components back in march of 2000. but today among the highest. starbucks at a whopping 32. yes maybe a bit rich for some people. i see just this movement here overall. and 175 times earnings you can see there. maybe it's not as value-driven, i guess, as some other components are. but still it's a far cry from what we've seen back then. as we look at valuations and just for kicks, i ranked the nasdaq 100 currenty valuation pes. and i mean they're not anywhere near as big as they were back in 2000. >> there may be a story behind some of those stories, too, dom.

for example, if a -- what if a company had a loss for the past year than it has an infinity multiple but that's not really accurate to say it's trading in infinity or if there's charges involved and they only earn 2 cents or usually a dollar. was it just a screen that you used? like what's the story with autodisk? >> if you take into account some of those things there are occurrences that may skew those things. even then just the sheer magnitude perspective is what we were trying to get at. >> right. >> general electric. johnson & johnson. in '99 they were trading at 40. you know, the consistent earnings they were able to post made the -- meant they could trade at 50 times earnings. that's ridiculous. >> i've decided -- >> i was going to is a -- >> i was so -- >> you have earned it. you know, you've put in your time.

any time you make any comparison between then and now, you can't really say it's apples to apples no matter what. cisco was a different company. back in 2000 than it is today. general electric was a different company back then than it is today. if you look at valuations it's hard to make that comparison. >> the dow is very different. microsoft was a different company. some of those poster children amazon is a different company. >> is that deadhead? >> no. that's a death cross or something. what is that, man? >> it's just a -- >> wait. show people. >> he looks so traditional. >> then he's got the skulls there. >> yes. the skulls. it was a gift from my in-laws. >> from who?

jeffrey dahmer? rebecca, now we're going to bring -- can we bring her in? i want to talk to you about things other than just the nasdaq. you want to start with -- what i want to talk to you about is you made the great call with the strong increase protection sentiment. and i look at it and we did get the strong dollar. which is now it's peaked. but in a different way than i think that we thought. it was sort of a -- almost a union issue. and the way it occurred you didn't know it was going to be the democrats that all of a sudden were going to diss their president. it's weird the way it happened. but now it looks like that has passed to some extent. looks like this thing is going to go. >> if we could get the trade agreement through long-term -- there's always pros and cons with these. the world adjusts. but long-term i think getting this trade agreement through is good for global growth and

eventually for the dollar. right. >> bad news for you is you've been living off this call for eight or nine months. now i want you to come up with something forward looking to tell us what's going to happen. then we'll go to the nasdaq. where do we go? what happens? >> over the next nine months i think the dollar does keep going higher. less worry for u.s. multinationals compared to what we've seen. but most importantly to me i think the next nine months are going to be a good nine months for equities. mainly developed equities. we had a conference call for clients. i'm amazed with all the anxiety out there. you all had a guest earlier i think on the 6:00 hour. you know the market's too high the market's too high. dominic, i think you made a great point with valuations. if you look at 1999-2000, what's under the hood with the index level is more important. my age doesn't matter as much as how healthy i am. so the stock market leveled doesn't matter as much as the price earnings below it.

>> i would imagine that you think that interest rates are going to stay fairly well behaved then. >> i think we'll get a rate hike. i think it's likely we get it in september. but going from 0 to 25 i don't care. >> right. but the 10-year's not going to get out of control and put the fed in a box. >> that is the risk. if we get much faster than expected wage growth or other inflation, the fed will have to go quickly. a lot of this talk about slow productivity growth pushing faster, if that played out and you saw borrowing costs jump higher then i think you'd have a more challenging period for equities. barring that i think we're good. >> with the nasdaq you have to just, like double everything. double the advance and double the decline depending on what -- just a higher beta really. >> tech is one of our biggest overweights in our equity portfolios. still today. i think with the biotech you all have been focusing on in the

last couple days in particular that one's tricky. so many of these companies have binary outcomes. you don't have a lot of comparative advantage understanding the science. so for something like that we're very careful. i think for the average viewer you might even want to think about an etf. but with tech, we're happy to stay there. one of our bigger focuses within tech is semis. we're seeing consolidation which is helping margin improvement and the internet of things just having more silicon in your phones, your car, your house. so that's one area in tech we like. and then in pharma you know everything is tech today, right? consumer. if you're looking at companies that have a good internet interface or a health care with some of the technology-related innovation. last time i was on we had that ceo with the heart valve. we're doing heart valve transplant now where they don't even have to open up your chest. amazing things are going on.

>> did you see this? he says -- alex tsipras is blinking it looks like today. those who bank on crisis and terror scenarios will be proven wrong. we aim that final negotiations will take place at the highest level in europe and are now working for this summit. >> we're all going to want to kill ourselves in the year because we're still going to be talking about greece. even if they get a deal this month -- >> it's really not over? they don't need money though. they need $7 billion to roll it over for another year. >> 50. >> we just need too know whether we're going to give them the money to pay back the money they already owe. that's the way it always works, right? >> yeah. it's the guy at your golf club who doesn't pay his dues but he's good so you don't want to get rid of him. so you look the other way. >> more on this comment from tsipras. he also said regrettably no

discussion of our proposal took place. even more regrettably instead of that we observed leaks to the press regarding greece's banking system. >> i'm shocked. i'm shocked. >> from where? >> with 28 nations in the european dozens of mebs of imf. >> when you see a billion euros taken out of the bank because of that, that's pressure. >> it's to get more emergency liquidity to the greek bank to avoid capital controls this weekend. if we do get capital controls this weekend, i think we do get more nervousness in the short-term. especially in european stocks. >> we haven't seen that from michelle have we? >> there's a steady stream coming in. >> but nothing lining up. >> but they've lost the deposit. the banks need an infusion quickly. but one thing i read that i haven't seen before is even if they miss the debt payment at the end of this month they're getting a month grace period. so again --

>> not from christine lagarde. >> they're already in default effectively. the debt -- they can't forgive the debt because they can't have transfer payments. they'd have to have a treaty change. but they can have extensions and maturities. they can have all sorts of bells and whistles. >> the greek banks were given 1.1 billion euros on wednesday. they lost almost all of it. >> they need more liquidity. they'll get it. >> saying we're not going to let germany continue to loot greece. what do you have? >> joe, you're always going to go lower. you'll have a great vacation. >> okay. not low enough. 90 in a week? probably not. >> probably not. i kind of hope not. that'd be bad. >> let's take the cash out early do it now. >> him, not the greeks. >> him. he's going to be over there. >> he needs cash. not greece. >> more from michelle who is on the ground in athens. we're going to talk to her in just a bit. plus he's been one of the most

accurate economic forecasters ian shepherdson. we'll do that next when "squawk box" returns.

welcome back to "squawk box," everyone. greece the big focus of the global markets this morning. joining us now to talk more about it is ian shepherdson. he is chief economist at pampion microeconomics.

greece, we are just getting some notice that it looks like tsipras may be blinking and we may be reading too much into this. but he says those who bank on crisis and tariff scenarios will be wrong. we aim that final negotiations take place at the highest political level in europe and are now working for the success of this summit. does that sound for the first time like they are stepping back from the brink? >> maybe. i mean i've always taken the view that both sides will blink up to the crunch. the problem's been it's not sure when the final crunch is. you talked last segment how they may get a month's grace after missing their imf payment this month. it's been a negotiation where both sides will have to give some ground if we're going to get a positive resolution. neither side has wanted to blink before it became absolutely completely necessary to do so. and i'm not sure either side thinks we're at that point yet. but maybe the comments now suggests they realize that we're getting very close. >> it looks like the greek banks are in a little bit of a bind at

this point. you actually saw a billion euros taken out of in deposits yesterday. that's a massive increase from the 200 million we had seen. >> i don't understand why anyone has money in greek banks anymore. i think they'll get the extras they want. otherwise it's game over and the banks won't open monday. but this is just another step towards the final. and i'm still not sure when and what form that will take. the closer we get to it the more likely they -- the dangers we have an outcome nobody wants. the european union doesn't want the greeks to leave. the greeks don't want to leave. but we have to get an agreement that satisfies both sides. >> what do you think the market's pricing in? >> a resolution that kicks the can down the road again. and so that's why we don't have panic and chaos in european. >> what do you think the chaos would be in the markets if there wasn't a resolution? >> i think it would be messy for

awhile. we wouldn't have a global meltdown. so much of the debt is in public hands anyway. but i think there would be serious volatility for awhile. it would be horrific for greece. >> it sounds like it may be tough for greece either way though. to make the concessions they're going to need to get the continued assistance from the european union and the imf, they're going to have to make some cuts. >> the only good options for greece is serious large scale debt relief. massive cuts on the debt. reducing the debt so something manageable. that's not going to happen in the short-term. so greece for right now only has bad options. there's no good outcome here for greece. there's a question of degree. it would be worse for them if they were to leave the euro. but it would also be bad for the euro. it would establish a mechanism for other countries to leave as well. that's what germany is scared of. >> let's talk a little bit about the global economy at this point. we're watching stock markets.

you're now looking at the shanghai composite down in correction territory. u.s. markets sitting at new highs. and europe, the questions revolving around what to do with it. >> the global economy looks mostly all right to me. you know we've seen a slowdown in china, but it's manageable. we've seen a cyclical recovery in the eurozone which i think is going to surprise to the upside. we'll have a good year this year and maybe even a strong start to next year as well. meanwhile, the u.s. is doing okay as well. despite some of the pressures on exporters from the strong dollar. the domestic looks great to me. and the labor market here is amazing. >> why this reluctance from the fed? >> that's my question as well. i don't really know. i think they should have done it six months ago. i wish they'd done it this week. they're going to have to do it sooner or later. yellen was talking about in the press conference about not being completely convinced. she called it tentative. we know wages drive the first behavior in the long run more

than pretty much anything else. as those data become less tentative, they're going to move. my guess is september and one more by the end of the year. markets earlier this week starting to talk about maybe december being the first to move. if you're looking for a shark in the market something to upset this happy situation we have now in most markets, then the fed is going to be the trigger for that. i think we're going to see data which surprising to the upside consistently for the foreseeable future. those dots which keep dropping dropping, the next big move in those dots is going to be to the upside. that's going to come as a shock to a lot of people. >> thank you for coming in. great to see you. coming up a very small, very cheap new tesla. plus finding a gop favorite in a very crowded field. stay tuned. "squawk box" will be right back.

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coming up next when we return, who will rise above the gop field? just got bigger. will the big crowd of republicans -- harold ford and michael steele are going to put the issues on the table. and then a big week for gamers and an even bigger week for game makers. gamestop's cfo is going to tell us what's hot and what's not when "squawk box" returns.

welcome become to "squawk box," everyone. food producer post holdings said the bird flu will not affect its egg supply as much as originally thought. one of the chicken flocks was found not to be effective in several tests. arianna huffington has signed a new contract to remain with "the huffington post." there was talk she may leave following the acquisition by verizon.

and akio toyoda is apologizing for one of the executives for violating the narcotics drug law. she's cued of receiving oxycodone pills through the mail. mattels hot wheels. we've been talking about this all morning long. teasing you could get a cheaper new model miniature tesla s. toy cars will first be available at san diego's comic con for about a dollar if you want to buy -- i don't know. all the physical toys aren't quite as cool as what you can do with video games. >> that's true. you know what? for little kids like 3-year-olds, they still like to walk around with a toy in hand. >> you don't want to swallow this tesla. i don't think either. >> no. >> don't put it in your mouth.

>> how small is it? >> it's a hot wheels. >> hot wheels, it's tiny. >> i can trust them they're not swallowing the hot wheels. >> i was talking about myself. we're going to turn our attention to politics this morning. the gop field expanding again this week with jeb bush and donald trump throwing their hats officially into the ring. joining us michael steele former rnc chairman, and former senator harold ford is on the set. >> good morning. >> good morning. >> i want to start with donald trump. winners and losers of donald trump joining the ranks. harold you may hate on donald. i don't know. you might not. i don't know. i want to hear what michael's got to say first just because i want to understand the real implication since i don't think he ultimately wins what this is really about. >> i don't think he ultimately wins but he does change the nature of the conversation. one of the challenges the gop field will have will be allowing

donald trump to dominate what the topics of discussion are. and so when you get on that stage on august 6th and everybody's lined up and out comes donald with a couple of what he had this past week in his announcement, then the nature of the conversation changes. you know candidates do not want microphones placed in their face asking them do you agree with donald trump that mexicans an relationship rapists. i think donald will settle down however, into some form of a campaign. so he is serious about running this race. the question is rhetorically how it pushes the field. that's something i know a lot of establishment folks are concerned about. >> good for the party? bad for the party? >> i think any time someone gets in the race is good for the party. the party needs to have an internal discussion about who we are, what we believe, what we will fight for. and donald trump despite everything that people like to

joke about and throw at him, he has a constituency that's not just inside the gop, mind you. what he says resonates with a lot of people out there who are frustrated with government frustrated with this process, very angry. and so he you know puts in rhetoric what people feel. he'll say openly what a lot of people talk about in polite company. >> harold, you take this seriously? >> i think you have to. i largely agree with michael. i think two things occur to me. one, jeb bush is the front runner in this race regardless of whether he's the top of the polls or not because everybody is punching at you. if you're the front runner they punch up at you. everyone is punching up at him. two, if people have to answer questions about racially insensitive things or religious insensitivity to it for any candidate particularly donald trump with the big personality he has, i think it probably hurts the field. and probably what helps the most

is hillary clinton. because democrats in large are able to con tres themselves with a republican party that is unwilling to distance themselves from -- >> so you think hillary loves this? >> i wouldn't say love. but from a campaign positioning standpoint, i think she's in better position if donald trump continues down the path he started here in new york. >> don't you think the democrats would be helped if there were some democratic candidates willing to distance themselves from hillary clinton? >> well bernie sanders -- >> he's done that. >> that's a joke. it means you think donald is the problem for republicans but i think hillary is her own problem. i can't believe he's at 31/41 or whatever it is. that's like insanity. >> much like on both sides in these races as you know joe, there are a merry go round of candidates who find a moment in the sun. bernie sanders, once the scrutiny comes those numbers will go down. there are things about o'malley

and sanders and others that people will say hillary clinton is the most qualified. >> what would it cost for you to not be for her harold? is there anything that could finally come out -- let's say you saw absolute proof that money swayed a decision -- why are you laughing? >> i mean, a because -- >> is it absolutely insane to think that? we've all been desensitized now. i could read something about hillary and think who cares it's the clintons. that's a weird thing. we talk. we're friends. some call it a right wing conspiracy. is it still the same right wing conspiracy that conjures up all this stuff really? >> if there was something unlawful -- >> there was. there was a stain on the blue dress. >> if there was something unlawful done by the clintons there are people who would step away. >> they don't. >> right. but i don't think there's anything -- you can't point to

things they've done that are unlawful. there are things that people may think that are unpopular. people may think that they should be doing other things or they shouldn't have become wealthy themselves. but what have they done that's unlawful? put that aside. bernie sanders is having this moment. martin o'malley may have this moment. and i think more and more people -- >> i didn't want to throw you off message. we should have had this conversation in private. anyway michael, sorry. >> no. i loved it. personally. i think both of you touch on the yin and yang of the clintons. what has been done has been illegal. what is it that people would just be aghast about? but you're also right in you see that reflected in the polls. you hear numbers have gone down on trustworthiness and likability. but this is the key thing and this is why the clinton campaign when it's all said and done has actually had a very good period

here. she's still beating every republican in large measure in the polls. so the fact of the matter is i think the public has largely baked into their understanding of hillary clinton and the clintons as an enterprise everything that they like or don't like about them. and so that's not going to be as positive whether they support hillary for president. i think they're going to be more things substantive. if they drop the bomb on something that shows a smoking gun on the clinton foundation and some improper or illegal activity, that changes. but barring that i think people have baked a lot of this in. so this could for her at least be something she'll put behind her in large measure and deal on issues. >> harold, what surprised me is how safe she's been playing this. the idea you're not going to say anything on trade. that you're going to attack to the left very casually and

quietly. while having president go on jon stewart and talk about things about how he believes in free trade to appease both sides. that surprised me the most. playing it quietly and carefully. is that the right way to do it? >> they made a calculation. i wish they would make the calculation to be more aggressive on issues. i'm for the trade pact and fast track. and i'm hopeful mrs. clinton is as well or at least could find her way to be supportive of that. i think the biggest challenge would be between now and the next several months articulating clearly how you will close this uneven distribution we have which exacerbates between poor and rich and middle class and rich. hope at some point begins to talk more about her vision for the world and america's role on that stage. that's why people respect her and admire her so much. because big problems big challenges require confident managers. i think that's her real strength. and hopefully we'll hear and see

more of that in the coming months. >> michael, thank you. mr. mayor, thank you. i saw that report -- did you see that in the memphis flier. do you know what i'm talking about? >> very excited about it. >> he's a maniac right now. you're using wipes more than you're using the loader stuff right now. >> we're on "squawk box," right? >> you hear some squawking now, do you? how old now? >> four weeks and 17 months. and we think they're both mine so we're excited. >> it's great to see you. appreciate it. just trying to get to commercial. >> all right. yeah. coming up -- that's good to know harold. the big video game -- i got you off message. i'm sorry. conference wrapping up in los angeles. the cfo of gamestop will tell us what's hot and what's not. comeing next.

and should you hit the beach this weekend? a sizzle in your pocket this summer. why you need to take a look at health care stocks. okay. "squawk box" will be right back. ♪ mamas, don't let your babies grow up to be cowboys ♪ ♪ don't let'em pick guitars and drive them old trucks ♪ boys? ♪ mamas, don't let your babies...♪ stop less. go more. the passat tdi clean diesel with up to 814 hwy miles per tank. hurry in and you can get 0% apr plus a one-thousand dollar volkswagen credit bonus on 2015 passat tdi clean diesel models.

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welcome back to "squawk box," everyone. father's day weekend is here and spending this year expected to reach $12.7 billion. the average person will spend about $115 on items for dad. we are asking our loyal viewers this morning, dads what is the one thing that you would like to get this year? go ahead and tweet it to us @squawkcnbc. we'll read all your responses and share the best of the bunch coming up at 8:50 eastern time. i heard another survey this week that said people spend 30% more on their moms than dads. >> mother's day was not that old. >> no. and i think father's day is younger. >> it is. is that the one that was mid-30s or something? just a hallmark moment.

>> what are you asking for for father's day? >> a tie. >> i don't know. i don't really want anything. i caught wind of some things that -- >> that are planned? >> yeah. i already got the ken bernstein. we're watching that. but why do i get so emotional watching things now? you'll see. as you get a little bit older. you know what i mean? >> i cry at car commercials. >> yeah. the american airlines plane commercial. you cry when you see the baby come into first class. >> different type of crying. >> what do you want for your present? >> i don't know. i want to hang out with the guys. that would be good. >> that's good. >> the guys being two little 4 1/2-year-old men. >> you want a hot wheels tesla s? >> i think that'd be kind of cool yeah. thank you. thank you, sir. this year's electronic entertainment expo or e-3 as it's known to gamers across the

world wrapping up after tech giants unveiled some hot new titles even a new holographic lens for gaming. joining us with some of the highlights is rob lloyd, cfo of gamestop. we always talk to you about the state of the industry. and now with virtual reality and those glasses and things i guess you could download stuff. but maybe that offsets andrew's big worry about you going away of blockbuster. there's a whole new landscape opening up for gamers with this new technology. and gamestop might be there. >> well good morning. i'm excited to be here to talk about what our gamestop team and i saw at e-3 this week and virtual reality was front and center. the microsoft demonstration and during their presentation of the hollow lens and minecraft blew away the audience. that was cool. then i heard great things about

the for -- morpheus. i had a headset put into the market by samsung. that was cool as well. >> you think best buy or is it not bricks and mortar that wins here? how should we think about this? >> i think you think about virtual reality like an additional console cycle. or a small console cycle. we're about a year and a half into the console cycle now with the xbox one and playstation 4. they're selling strongly. but the virtual reality products, we think they're going to come to markets in 2016. when those hit, that will invigorate the category again. and that will be good for

gamestop because our customers will come in line up at midnight to get those headsets when they launch. >> and they get the headsets. then you get the software and games. and then gamestop will still be able to take older games you're finished with and trade them in and see how it works and do it while you're there. andrew, it might buy some time right? >> time yes. the question i -- >> you always worry about that gamestop is going away like blockbuster. >> i think you could extend the time out. no it's not that -- it's what can you become? right? and that's the question rob. netflix went from actually a service that actually had dvds to becoming a streaming service. you've stopped the streaming service. that's the thing that's concerned me the most. >> well the streaming service wasn't something that the consumers wanted. what we do have is a billion-dollar digital business. we have what consumers want. whether it's physical or digital, they can come into our stores and get that.

we're adding to the products in the stores. the virtual reality stuff we'll add to that next year. but this year our focus is on loot and collectible items consumers want associated with games and television shows. that's a growing category for us. that's great. that keeps our video game stores relevant. in addition to that we're diversifying. we have our technology brands division that we've talked about. we're north of 500 stores now and growing very rapidly with another 200 coming this summer. >> hey, rob, in terms of new hot games that are coming and in terms of you guys being a proxy or good indicator of which game companies are going to be successful, how do you look at the rest of the year in the summer coming up? >> next week we've got batman. that will be big. that's from warner brothers. in the fall i think the top four are going to be star wars battle front, halo 5, call of duty, and the recently fallout

4. i think those will be the best sellers. >> okay. we still don't know. the -- do you feel be rt? >> i actually do feel better for rob's business for some period of time. i assume at some point it will go digital. that could be five ten years out. >> we go because there's other crazy geeky people hanging out. >> and that means over the next ten years, that business -- as he's diversifying into other things, it may be a different business. >> gamers -- it's almost like comic bookstores are never going to completely go away. you need other comic book crazies. >> and that's a physical business. >> you speak from experience. >> that's what i mean. i am speaking from experience. go ahead, rob. >> one of the things we saw this week that's very interesting is the emergence of strong female characters in some of the games that are coming. there's a tomb raider lara croft game coming this fall.

there's a new character being announced in assassins creed syndicate. she's the twin sister of the main character. that will be a strong female character as well. in fifa this fall you'll be able to play with the women's teams. and then next year in games like mirrors edge and recore we've got more strong female characters coming. i think that's going to appeal to the female gamers and bring a new set of customers into our stores. >> all right, rob. thanks. appreciate it. >> thank you. >> okay. see you later. still to come this morning, the sector that usually stays hot all summer long and has nothing to do with beer booze, or the beach nap just gives us an excuse to show you pictures to get you ready for this weekend. "squawk box" will be right back.

for the fourth year running, the health care sector is out performing the broader s&p. up over 10% so far in 2015. when is this hot sector at its hottest? turns out the summer. morgan brennan is here to explain it to us. good morning. >> good morning. happy friday. we've all heard that stocks tend to slump this time of year. but not health care. health care tends to outperform in the summer. so take a look. since the start of june the sector's up 1.4%. and that's basically double the return of the s&p so far. now, according to our data

partner kensho june through august health care logged positive gains 70% of the time returning 2.8% on average. but the s&p 500, that's only been higher 60% of the time. and with just about a small quarter percent increase over that time period. in terms of what performs best biotech, average price gains for the biotech stocks in the s&p, 7.8%. and those are up three quarters of the time. as for the top names that tend to out-perform, a big cap biotech. that's been positive each of the past ten summers. that's averaged a gain of 18%. medical device maker varian medical systems also up with a 7% gain on average. and that's been up nine of the past ten years. according to kensho regeneron has been up 80% of the time over the past decade. now, after several years of

strong gains you might be asking yourself how much higher can health care go? and the analysts i've spoken to say this is an earnings story with health care. as profits keep growing for health care stocks, we're likely to see these stocks go higher. if you're going to take a look at this sector for the summer these are some of the names to check out. back over to you. >> thank you very much. when we come back this morning, imf boss christine lagarde says there's no grace period for greece when it comes to the repayment to the imf. the deadline is june 30th. we'll talk with roger altman from evercore. and later it is national flip-flop day. we'll celebrate with smoothies for a good cause. "squawk box" will be right back.

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last ditch efforts to spare greece from default. talks with eurozone finance ministers breaking down. and now fears of fund outflows could prevent greek banks from opening on monday. what happens if greece goes down? we're going to ask former deputy treasury secretary and founder of evercore partners roger altman. medicine's new frontier.

how bugs that live in your body could provide new drugs that fight everything from obesity to cancer. we'll look at how drug companies are tackling health issues with bacteria. plus are you suffering from app indigestion? >> get in my belly! >> a look at which mobile food apps are heating up in what's becoming a crowded space. as the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box," everyone here on cnbc. cnbc, first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin. we are less than 90 minutes away from the opening bell on wall street. so far so good for the bulls. looks like the dow futures are up another 35 points after a 180-point gain yesterday. the s&p futures up close to 4

points. the nasdaq up to 14. the nasdaq by the way finally setting a new all-time high. take a look at what's been happening in europe. things have turned around here. you see the dax is up by .25%. the ftse also trading higher. so the the greek composite index. there's a cross line that funding the cap for the greek bank. according to a banking source. and that certainly may help the situation in greece the big concern is what happens if there is a liquidity run on the greek banks. it had been unclear whether the ecb would step in. it looks at this point there is an ecb action. we're going to get more in a moment on this from michelle caruso-cabrera. okay. but first we got some stories that investors are going to be talking about this morning. shares of fitbit rising in early trading. stock jumped nearly 50%

yesterday. also hershey blames chocolate sales growth in china did not meet expectations. the candy maker also announcing productivity initiatives and changes in the global leadership as well to that team. and then there's conagra. being targeted by jana partners. the fund has built the 72% stake in that firm. also seeking to make changes to the board. now we're going to talk about greece where banking fears are mounting. michelle caruso-cabrera joins us live from athens with the latest. good morning. >> andrew becky's talked about it a little bit. the one key event of the day, would the ecb decide to increase liquidity to greek banks? there was a meeting, a teleconference that began at 6:00 a.m. east coast time after there were requests last night from the national bank of greece. there were reports in germany they were asking for an increase

of 3 billion euros. there has now in the last 15 minutes one line crossing from reuters. reuters sites one source saying the ecb has decided to increase the liquidity. we don't know by how much at this point. what we also don't know is was it a contentious decision? would also crimp on greek banks, et cetera. we're going to wait for more color to emerge on that. that was super important. this decision was expected. what we were waiting to see if they took a tough stance which would have been really quite difficult for the greek banks. that hasn't happened. because of events last night related to a meeting of finance ministers in luxembourg we were out at the atms and the greek banks this morning to see if there was increased activity there because there was talk at the finance ministers meeting last night according to reports that there was a discussion about whether or not the greek banks would be able to open on

monday. we see very steady continuous numbers of people at the atm but i wouldn't call it lines. people taking out cash. we do know based on reports that there was more than a billion that was withdrawn yesterday from the greek banks. so certainly there are issue wgs the greek banks but they live to see another day. the other issue going on today, the other event is the greek minister is not in greece. he's in russia. he put out a statement saying all those betting on crisis and tariff scenarios will be proven wrong. we'll bring you any headlines if they matter. and of course the thing we're waiting for, the big summit on monday. are they going to be able to come up with some kind of solution at the prime minister level for this country to receive the 7 billion euros in bailout funds they desperately need. back to you. >> okay, michelle. thank you. still looking at that -- don't know what that is.

i guarantee shows the parthanon on "squawk box." joining us now roger altman. let's say you thought -- let's say you were 80% sure that they'd work this out. are you still 80% after the last two weeks? >> no. i think the odds have narrowed but i still think -- >> 79%? >> no. maybe 60%. but i think the likelihood of a solution is greater than the likelihood of a blowup. and i think we should all keep in mind number one that these deadlines tend to be squishy and i'm skeptical that june 30th is the true deadline. yes it's when the imf loan ensures but there are issues of grace periods. when push comes to shoving with deadlines get extended. second of all, crises like these

get solved at the last possible instant. and if this is going to be resolved it's going to be resolved then. this may go on for awhile. >> it seems pretty simple. they have no money and they need some money to pay back some money they already owe. they need to lend them money to pay back the money they owe. >> that's very common though. >> very common. but they have to make it look like they're serious enough about certain forms where the germans can say they're serious about reform. and tsipras has to get it to the point where it looks like -- >> when these things get resolved and this one will be no different if it is. each side has to be able to claim that they succeeded. and so from a german and allies point of view, that means the greeks have conceded to reforms. and from a greece point of view

the conditions are milder than what would have oerss been the case. it's possible to have an outcome like this. >> and both sides probably don't want the other to occur. both have a very strong interest in not letting -- >> yes, but i think the stakes are lower than the press is suggesting. >> really? let's assume that the -- what is it? 40% happens. then you don't think that -- like i'm going to europe. will the atms in france be okay? >> to the extent atms in france are generally okay yes they will. there's no change in risk. if there was you would see on a day like today spanish, italian yields and so forth rising. they're not. they're falling. prices are up. you would also see other evidence of potential con todaytagion

b and there isn't any. sfl and that sets up some sort of an exit mechanism for other weaker countries. then germany's in a bind. >> also i find the politics of this fascinating. because chancellor merkel who you have to say is a politically skilled as they get. she's been dealing with this crisis really for several years and her popularity is still extraordinarily high when the german public is so hard over against any concessions of any kind. she has staked so much on quote, more europe which is her favorite expression. which means integration. one reason she's so anxious to avoid a greek exit it goes back to integration. let's not forget with cameron elected, he's to have a referendum in britain on whether britain continues in the eu. that could prove to be a much

bigger issue than this one. but that's why she's so dedicated to solving this. >> roger, you spend most your day inside board rooms of global corporations. how often do ceos or boards talk about this whether there's a deal to be done or not and whether we should do it now or wait because of the chess pieces moving around the board. >> outside of the financial community and that's a gigantic global community and outside the finance ministries and so forth, there's little discussion of this for a simple reason. greece in economic terms is tiny. people forget how tiny it is. greece represents 2.7% of the eurozone gdp. >> if you care about the value of the euro -- >> the important relationship is the euro/dollar relationship. and that has been stable. 1.13 this morning. it's been stable for the last few days.

and i don't think anybody thinks that a greek exit if that's what it comes to will upset the most important euro relationship which is that vis-a-vis the dollar. i don't think much con today gent risk from a global market point of view. i think we're past that point. everybody's had so much time to prepare and the exposure of the non-greek european banks. this has become a political issue rather than an economic or financial issue. so corporations are not paying attention. >> so with merkel more europe, huh? >> that's her refrain. >> she talk obama into the european style of -- why are you laughing? why are you laughing? >> i'm laughing because i don't -- >> what a stretch, huh? okay. right. he came up with that himself. you're right. thank you. >> thank you, roger. when we come back how investors are cash in on hackers.

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cyber security stocks are

hot in the purefunds etf is up 30% year to date. e the fund just surpassed the $1 billion mark. this week trades under the ticker path. the manager of that fund is andrew channing. he is the ceo and cofounder of purefunds. >> thanks for having me. >> is it worth asking the question? we talk about security and hacking every day. clearly an issue but are the stocks overvalued at this point? >> i don't think so. i think you look at broad based indexes. we've seen many companies now and indexes hitting record levels. and this is an industry which hasn't really gone through a recession period yet. and i think the cyclical nature of these won't be the same of that of other industries. >> isn't there a shakeup that has to happen? >> i think some companies might, you know at their current prices, they could have room to

grow into. this is an area where people are paying for these future earnings. and i think that right now a lot of these companies don't necessarily have the earnings because they're spending so much on getting their name out there. they can get a nice piece of that market share. they have great opportunities to keep going. >> biggest winners on your list right now? >> sure. if you look at the list of the top ten holdings, all are up year to date. there has been so much spending going and difficult to pick the winners. >> we talk about fireeye virtually every other day in part because they're in that business, they keep getting these contracts. >> sure. >> who is their biggest competitor right now? >> you know i think they're kind of interesting because they do many different aspects. you know, they have software that they sell in services. like you said they also have this consulting arm that they offer. and the consulting is where when a company has a breach they've been calling out fireeye. >> where's the real money for them? in the consulting business or is

that just the high profile business that has us talking about it? >> they could be an agnostic business where they don't need to promote their products. >> what about vasco data security international? we talk about double authentication. that's their business. >> absolutely. screen name and password log in multifactor is where it's at. these banks need this multifactor to protect. >> is nobody else doing it? i thought everybody was doing it. does vasco own that market? >> they have made their way into the financial industry for that market. they're not the only one providing, they're one of the leaders. >> palo alto networks. >> sure absolutely. firewalls. >> and again, though -- again from a competitive perspective, we look at the list of stocks on your list of who's in the fund.

that company, you look at that stock that's gone on a crazy run already this year. how much more does that have to go this year and who's competing with them? >> there's actually a lot of companies in the firewall space. you have fortenet. there's a lot of companies. and in our fund we have a lot of firewall companies. they offer a premium product. for companies now i think it's tough make the case you have too much cyber security. so i think that for companies trying to really make their way into protecting themselves they will. >> i don't know if you saw, there's a comment by fireeye ceo about the liability issue. about whether they can be sued. >> okay sure. and there's so much moving parts about where -- >> maybe if they get it wrong. >> sure. and that's up in the air. insurance is a big area where people don't know am i insuring my cyber security risk properly? it's something evolving as we're

going forward. we don't necessarily know who the winners are which is why we created the fund in the first place. >> thanks for coming in. you have a good name. >> likewise. >> appreciate it. when we come back today is the day too let your toes feel the breeze. it's national flip-flop day. tropical smoothie is offering a deal. the ceo will join us after the break to tell us about it. meantime the futures at this hour still indicated higher. dow futures up about 28. nasdaq up by 14.5. "squawk box" will be right back.

welcome back to "squawk box." taylor swift giving apple the cold shoulder. her "1989" album has not been released to any streaming service. and apple won't get it either. confirming this to buzzfeed news. there are over 900,000 franchise businesses in the united states. together they are responsible for creating nearly 18 million jobs. one of those franchisees is tropical smoothie cafe. it opened its first location more than 15 years ago and has expanded to more than 400 franchise locations across the united states. joining us now to give us a pulse on small business is mike rotundo, he is ceo of tropical smoothie cafe.

he's in town to celebrate national flip-flop day. he'll visit landmarks to hand out free smoothies for a good cause. maybe the best part is anybody who walks into a tropical smoothie between 2:00 and 7:00 today gets a free smoothie. >> wearing flip-flops. got to wear flip-flops between 2:00 and 7:00 you'll get a free smoothie today. >> you can't just flip-flop on an issue? so politicians don't get? >> i'm very happy with this. this is island green. >> you love kale. kale is -- you are kale. you are what you eat. >> spinach, kale pineapple, mango, and banana. >> keep it simple. >> sure. try the green one. >> no. >> i'm telling you it tastes like -- >> no. it looks like the exorcist. >> it's awesome. and because of the banana, it's good. >> number one selling smoothie right here. >> is it really? >> yes. across all locations, that's the number one. rolled that out in march of 2012. >> why do you think it's the best selling smoothie?

>> because people are looking for stuff that's better for you. >> that they've been told is better for you. >> but no protein in here. it's all carbs. >> but it tastes good. it can't just be good for you, it has to taste good too. they keep coming back and getting more of it. >> it's not bad. let's just talk about the trends that you've been seeing in restaurants. we know that people have been spending more on casual dining lately. have you been a beneficiary of that? >> absolutely. i think it's really been the migration from the casual into the fast casual and then the fast food into the fast casual. you know the millennials are looking for the fresh-made products, the innovative flavors. you know, to sit in your cafe and have a fish taco and spinach and kale smoothie, that's where they want to be. that's what they want. i see those trends continuing on for at least, you know the next five to ten years. >> tell me the truth though the green one with the kale and spinach, is it actually

healthier than the strawberry banana one? >> i would say so. it's got five servings of fruits and vegetables in it. >> the our one is just fruit. >> the other is three and a half servings of fruits. >> so in terms of what you've seen, in terms of the benefits of offering these fresh foods and healthy foods. are the concerns and head winds you might be facing now? >> i think the head winds is everybody is trying to get into it. you've got a lot of people now trying to get into this space. places that are trying to kind of reinvent themselves and saying we're healthier now. if the concept itself isn't better for you, if the concept itself doesn't really believe in that and they're just trying to put something on the menu that way, it's not going to bode for them. >> i saw an ad for chili's yesterday advertising a new fresh fajita. it seemed like that's what they were trying to do. >> we feel like other places are trying to reinvent themselves. all we're doing is turning up the volume. the trend continues to push people into the cafes.

we're open -- in the next 12 months we'll open 100 new locations. we have the pipeline is huge. we're up 11.4% in sales last year. so when you look at the restaurant industry itself up just one or two points. >> in same store sales? >> yes. 11.4%. we're trending up this year over 12%. >> that huge. >> yeah. we had 29 months of positive comp sales. >> i guess the question becomes honestly, 12% positive comp store sales, that's phenomenal and off the charts. the question becomes is that indicative of a fad? do you think people will hold on and still keep with these foods? how do you promise that? >> i think it holds on. i think we're just starting to feel it. i don't think this slows down any time soon. you see the brands that are out there. people are looking for this. it's the right space to be in. >> who do you think is your biggest competitor? >> jamba juice. on the food it could be

chipotle or panera. we are a lunch destination. we still do great breakfast business, afternoon snack. but we get all those day parts. >> why don't you stick some whey into one of these things? >> you can add it. >> i can order it that way? >> absolutely. >> employment. we talk about the minimum wage issue in this country. where do you stand on that? >> yeah. so the international franchise association, i agree with them 100%. what i'm worried about is that -- you know i think new york is looking at doing it for, you know the franchise only like they're trying to pin it on the franchise. or they're saying that they're going to make the average wage increase faster for franchises. franchisees are a small business. right? they may be part of a big organization, but most of our franchisees have 15 to 20 employees.

they're a small business. so i think we have to be careful as we look at the minimum wage increases. we have to make sure we're fair and not discriminating against just franchisees because they're part of a bigger organization. >> what percentage are minimum wage employees opposed to -- >> i would say the minimum wage employees are probably 75% of the staff, you know? in the next 12 months we'll create 2500 jobs out there with tropical smoothie. the franchise industry itself this year will create a quarter of a million jobs. >> mike thanks for coming in. >> sure sure. thanks. >> thanks for bringing the smoothies. when we come back vladimir putin at the mic. we'll get his message to the world after this. plus the next frontier in medicine could be all over your body right now. how bacteria is creating big opportunity for investment and creeping you out at the same time. as we head to break, take a look at u.s. equity futures.

welcome back to "squawk box" this morning. let's take a look at some stocks on the move. carmax shares are under pressure. quarterly profit of 86 cents per share. revenue was shy of analyst forecasts. also red hat had quarterly earnings 3 cents above estimates. also saw growth in future orders. a slowdown from a year earlier. vladimir putin is meeting with the greek prime minister today amid questions over whether moscow should intervene with the debt crisis. both speaking a short time ago. we have more on that story. >> yeah. let me just give you a quick wrapup of both sof those speeches. president putin surprisingly short on the aggressive language we heard in the past. if anything, he focused on business and finance and said look, we acknowledge we've got weakness in our economy. some of that down to sanctions.

but we're going to try to do what we can through import substitution to work around that. but if you are a foreign investor, your money will be safe here. we are not going to put capital controls in place. there will be no restrictions on what you do. and he praised those who continue to work with russia throughout the crisis. and that got a round of applause from the 2,000 or so delegates in the hall. alexis tsipras took the stage. he used an interesting analogy. he said right now we're in the center of a storm. but you know what? we live by the sea. we're used to this kind of weather and sometimes you just have to steer your ship into a sea where the weather is calmer. sop perhaps a reference there to friends in the eurozone in brussels that if we don't get an agreement down the road here maybe we'll have to look elsewhere. but to be honest he was short of rhetoric or aggressive language. he made the point, i think, that greece still wants a deal.

within the last few minutes probably worth throwing in as both were talking, we understand that the european central bank has raised the ceiling on how much emergency lending greek banks can take from their own central bank. that to me looks like an olive branch. perhaps encouraging us to think there will still be a deal done. joe, let me send it to you from russia. >> all right, geoff. i'll be halfway to you maybe. maybe not quite. third of the way. thank you for that report. bacteria meanwhile, has not to do with geoff but for lack of a better word is good. new research is showing not all bacteria is bad. i think we knew this. meg tirrell joins us with more. if you don't have one, you get an ulcer. >> yeah. that's right. this research has been evolving over the last few years. we're talking about the

microbiome. that means the trillions of microbes that live in and on us. there were actually more microbial -- >> we are 150% human. 90% microbes. if you would weigh that, we're two to six pounds of microbes. moving on. why is bacteria good? the nih says it can break down food for nutrients, improve our immune system fight disease-causing microbes. medicine is starting to look at new treatments. everything from bacterial resistance. diabetes could be helped. all of those things are starting to get mined for potential new treatments. and the nih actually started a human microbiome project. understanding the genetics going

on and all the microbes that live in and on us. that led to a lot of company investments from start-ups. we're about to see the first company go public. to even johnson & johnson. we sat down to talk about why she thinks it's so exciting. take a listen. >> science of the microbiome is at a point where we should start to see the translation from the basic science to new medicines, new diagnostics. >> this is already starting to happen. there are no microbiome yet but they're doing fecal microbiotal transplants. this is happens. we talked to a doctor and patient who have done this. they're yielding tremendous cure rates for a horrible bacterial infection. they're getting 90% cure rates with this. so we really dove in and learned

a lot about this process. how this happens. it's fascinating. >> literally put it up there, you do. >> or you swallow it. >> yeah. >> is this significantly different than the things we see over the market already? like the yogurts that have all kind of cultures that say they can replenish your gut? >> yeah. well, some of the companies that are working on this say they're going to be the yogurts of whatever. but this is -- they're trying to take a little more scientific rigor towards it. one of these companies is called seerss series. they couldn't talk to us because they're in a quiet period. their ticker is going to be mcrb for microbe and they are taking essentially the fecal transplant idea and putting it into a pill. >> did you say the actual weight of the bacteria is -- >> it's 1% to 3% of your body

weight. >> it's 90/10 but only a couple of pounds. you're mostly you. you're not mostly -- >> by weight you're mostly you. but cell count, you're mostly microbes. >> they're very small. i mean if you were 90% bacteria and 10% human, that would be like science fiction. maybe the fly. >> you'd be a little squishier, right? >> and smellier. man, would you smell. halitosis and everything else. >> it's true. maybe there will be a cure for that using the microbiome. up next is your phone stuffed with food apps? are you suffering from app indigestion? we'll look at which food apps are making the cut and which ones could see the garbage pail. and don't forget to send us the

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welcome back to "squawk box" this morning. the futures right now look like they are going to start the day higher. dow looks like it would open up higher 27 points. s&p 500 up about 3 points and the nasdaq up about 15 points.

also shares of kb home jumps this morning. the home builder beat estimates for the second quarter on both top and bottom lines as new orders rose by 33%. the takeout market is a $67 billion industry. report app crawler, right now there are 242 food delivery apps available. that raises the question about whether the sector is getting over-after rated and leaving consumers with app indigestion. we have a managing partner at manlo ventures. cnbc's jon fortt is also here to join the conversation. thank you for joining us today. >> thank you very much for having me. >> so i would make the point that not all of these food apps are created equal. why don't you tell us about munchery and what that does. >> absolutely.

well, first of all i think it's interesting that we're seeing so many of these apps out there and i think the reason for that is that today you have more and more families with two working couples and mom or dad just doesn't have 45 minutes to cook dinner every night. and so i think it's fantastic for consumers that there are so many great options out there. >> but munchery is not just a delivery service for existing restaurants, correct? >> that's absolutely right. i mean what differentiates munchery and what got us excited about this investment is they take control of the entire value chain. all the way from the preparation of the food to delivery to your home. they're able to keep costs low, cut out a lot of overhead cut out middlemen. and basically what they're doing is paktaking the food quality from a fine dining restaurant and bringing it down to a fast casual price point consumers could enjoy every day. >> you have seen a lot of apps out there.

it could create confusion in the market too. >> it could. but a lot of these apps are coming at it from different angles becky. i think even just looking at the takeout market is too narrow a way to look at this. what munchery is trying to do is vertical integration on a massive scale. they're trying to get leverage out of how they acquire food. over at sherpa ventures which was in the round with menlo says they're paying six pucks when they acquire salmon. where others would pay nine bucks. then they're looking at technologies, internet connected technologies that would allow them to cook the food more efficiently, use fewer people. then they don't have the bricks and mortar stores. if people are doing this over time, they get efficient on that too. it's kind of like mcdonald's in a way, but for the mobile smartphone era. but at the same time they're

coming at this trying to be healthy. different from the seamless or grubhub that's delivering other people's food. it makes sense there's a lot of companies in here. when there's the shakeout will it be the integrated company like a munchery that survives or will it be these others that are investing less capital? >> i like the concept a lot. and you mentioned it's about convenience and about wanting to make sure that people have healthier options coming into this when they get home and don't have 45 minutes to an hour to get everything ready and cook for the kids. is this something that works outside of an urban environment or something you really only see existing in big cities? >> actually, it works very well in suburban environments as well. in san francisco, for example, munchery delivers all the way from the north bay all the way down to san jose. i happen to live in menlo park. i can get it in my home all the time. so it works extremely well even in suburban environments. >> and they deliver cold.

>> yeah. >> they deliver the food chilled which enables them to expand the service radius of any individual location. so if you think about for marin all the way down to san jose that's covering some 45 50 miles from just one kitchen in san francisco. >> why should these companies be valued almost like tech companies as opposed to just basically restaurant companies that have a pretty efficient and good delivery service? that's the piece of this puzzle that i don't really understand given that even though i know they have technology unto itself, the restaurant business is a very tough business. >> it is. but i think to a degree they are technology companies if you look at what munchery is trying to do. so in the kitchen, they're going to invest in technology that allows them to eliminate people. similar to an uber. then on the consumer end, the technology in the hand the app figuring out the most efficient

routes for the driver to take so they can get more food the the vehicle and deliver it. but also the people who say let's see what munchery's got. if they can make good on that promise, it's a technology company. if not, it's probably overvalued. >> what do you think? >> i think jon said it well. there's technology inserted at every point in the chain from how sha source the food, prepare the food how the consumer interacts with the service. you don't have a restaurant where you're ordering from your iphone app. so they really revolutionized the entire experience to the consumer using technology. but at the end of the day, it is a food company and food is a massive market. $67 billion in takeout alone. but the real competition is the grocery market where we're really substituting people cooking at home which is a larger market. around $600 billion a year. >> there's always a downside though. this could hollow out the food service market for employment. i mean think about it.

what you end up with if companies like muncherry succeeds are bad food service jobs and everything in the middle is e blit rated. >> thank you for joining us. >> you know what kitchen surfing is? it's an app and a chef will come to your house and cook in your kitchen. they bring the food. $25 per person. >> what would you do with your other chefs? >> that's what jon was talking about. >> i gave them the day off. gave them the day off. you know they need at least one day a month off. when we come back this morning, jim cramer wraps up this week on wall street and looks at what investors will be needing to watch come monday morning. stick around. "squawk box" will be right back.

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let's get down to the new york stock exchange. jim cramer joins us now. we think 5,000 is high on the nad dak and we keep hitting the highs and people compare the old highs and now, wow, we membership really high. it will be 10,000 someday, won't

it? >> apple is selling at 14 times earnings. microsoft is selling at a low multiple and even google is. the biotechs you know that some of those are red hot, but you can hear from what megasaid people need the new drugs. i think if we're going to freak out about something, let's freak out about a chinese market which was just insane until this week. our market is not unreasonable because the makeup in 2,000 was really about companies that were valued on eyeballs. these are companies that are valued on earnings. i think that's okay. >> we have a perception the new high, it keeps hitting new highs. it makes people think froth but not necessarily so. the first time i remember 2500 was froth. then it went up. you don't know what's up. >> we were up about 2,000 points in about three points in that

period and a lot of those companies don't exist anymore because they were involved with laying fiber around the world because we all thought we were going to be watching tv on our -- doing exactly what we're finally doing on our pcs and how on our cell phones. that was a dramatic overbuild ahead of the internet and a lot of companies that had no business being at the prices they were at. a lot of the companies selling now have good growth. i don't see the bubble. >> were you at the -- at your restaurant last night? >> wednesday. last time i was at the belmont tavern in a place frank sinatra used to love. >> do you watch the u.s. open when it's on for golf or no? >> not until the end. i think because of the time zone difference. i don't know. >> it's great. i'm wondering. i don't know. i'm trying to get used to fox. it's all new guys. it's greg norman and the camera

angles, i'm not used to them and they show this line when the ball gets hit. i don't know. it feels really weird. >> this is just a totally -- this is father's day. this is what you did on father's day and now i'm trying to figure out, it seems odd. >> next we're going to be watching it on youtube. that's where they'll have it. >> all right, jim. >> thank you. have a great weekend. >> everyone naud das. >> yes. >> really great. maybe he can get jim's chef to come in and boot your can chef out for a weekend. >> you know they need a break. i need to give them a break sometime every now and then. it's difficult. >> it's total upstairs downstairs. that's why you have the downstairs. >> then there's the upstairs and the upstairs. some of them sleep in the attic. coming up next the stories that have you squawking coming up. none of this is true.

be sure to tune in on monday. a special hour with a big focus on the oil and gas industry the ceo of hess plus harold ham is going to be here. and the conocophilips boss is going to be here. they'll talk about oil prices our crude reality special event starts at 7:00 eastern time.

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future of phone and the phones are free. comcast business. built for business. it's got to be the right arm. this morning we ask you to send us the stories that have you buzzing. now it's time for us to share some of the responses. let's start with father's day. spending is expected to reach $12.7 billion. a survey says the average person will spend about $115 on items for dad, and here's what our viewers had to say. one dad tweets peace and quiet is what i want for father's day. it's free. mark has a great item. he tweets i'm pretty easy to please.

a cnbc coffee mug signed by the "squawk box" crew would be nice. and then another one added where this father says. >> let's not out him. >> maybe he's single. >> maybe. >> a single father? >> maybe. he could be a single father. he will be single soon given what he said he wanted. >> before we go quickly. happy father's day to you guys. happy father's day to all the dads out there. >> the kids like it. >> it's a fun day. >> it's nice. it is. but we have everything. >> we have a lucky bunch. they say breaking up is hard to do but one man in jeremy took it to a whole new level. following his divorce, i don't know what this guy is doing on father's day. he decided to split all of his belongings with his ex-wife but he took it literally. the upset man posted a youtube

video showing him cutting chairs, beds phones and teddy bears. mashable reports that the man's half of the items are now up for sale on e-bay. >> we do have one more story to tell you about today as well. it was a hard lesson in social media. mlb prevents players from using their cell phones but one player forgot. he liked a photo during a game and now he is benched. he tells espn that he was in the bathroom. he grabbed his phone and checked it and forgot all about the rule. >> that could happen. >> i believe that. >> i don't know why the ban on social media -- banister roids steroids. >> it's because of the all the licensing deals with all the tv networks.

they don't want people focussed on all the other stuff. it could change the dynamic. >> i don't know what happened to the guy that asked for that but just write back in. the worst one is great. just tell him that. >> he wanted mexican food of course. >> yes. happy father's day. join us next week. "squawk on the street" begins right now. ♪ good friday morning. welcome to "squawk on the street." we're at the new york stock exchange. one more trading session until we head into a weekend of uncertainty regarding greece. beware of the headlines today. s&p gunning for its first win streak since january. we'll watch the ten-year. the dollar rallying and oil is down close to $60 today. china officially in correction