x" tomorrow morning. >> more markets. >> see how i dug myself out of that erroneous tease? >> you are very good at shoveling. >> initials are b.s. made for tv. thank you very much. the "closing bell" starts right now. welcome to "closing bell." i'm sara he's neneisen in for kelly evans. >> i'm bill griffeth. facebook has been popping after the company unveiled new interactive advertisements. we'll have details on that. whether it will make it even more profitable. up 3.25% today. >> nasdaq hovering around new highs. russell 2,000 in record territory.

>> a biotech stock up more than 100% in the past year. there have been a few, right? >> this one has done better than the rest. >> we'll talk with the ceo biomarin and talk about the next catalyst for his company. >> which are still seeing gains. we are off the highs of the session. we opened up nicely. hanging in there in positive territory with the dow up 24 points. s&p 500 pretty flat. nasdaq, as well. flat but we are hovering near record highs. strength in financials today. outperforming. pob pisanimiss an bob pisani tracking morgan stanley. >> the market maker trading all the bank stocks. morgan stanley, new high. wells fargo, new high. suntrust new high. key corp.

comerica, fifth third. let me show you this full screen. big cap banks up about 11% this quarter. that is way outperforming the s&p 500, only up about 2.6%. it helps that rates moved up. interest rate sensitive groups moved down. you have reits down. dow utilities down. home builders all down. that money coming out of those interest rate sensitive sectors proved to be money going into the bank group. the bank etf has been moving up. investors have been buying into this story what's moving banks? number one, improved economic sentiment. number two hopes for higher rates. specifically short-term rates. good news is the market has reacted to the idea there is going to be short-term rates. bad news is it hasn't happened yet. if it does i talked with a couple of traders. they believe there could be a

20%, 30% up side in some of these stocks. if we get modest moves along the lines of what the federal reserve was talking about. only problem here market's anticipating that. it doesn't matter. they've been going up almost every single day for the last month. back to you. >> bob, thank you. let's talk about that. joining us ben laler, ben willis and rick santelli. the prevailing trade is go with those sectors that will do well in rising interest rates like the financials and stay away from intrasensitive stocks. have we figured that out too much? >> if you are going to trade with a history book, that's your best bet. trading with financials and banks. the business of banking becomes more profitable as interest rates rise. the back drop is the great

unwind of the central banks of the world. nobody has that play book. right now, the best case scenario is unwind as rates rise the banks should benefit. of course the other side of the equation for investing that's been focused, money pouring in is biotech sector. that has not begin up health care sector since obamacare has come in. health sector benefited from mcdonald's through humana and deals going on. it's all part of the same function, people eating poorly and needing health care. it's an odd combination. >> a lot of m&a talk fueling that group. rick santelli the whole trade on equities is about what happens to the bond market what is the move behind treasuries? is it europe, greece or better u.s. economic data pointing to higher rates? >> it's the politics of what's

going on with greece. it's how the group survives through our time and giving up the financial culture. if the greeks want to go it alone, foot their own bills age 57 for retirement. you need to catch up on supply heinz coming to the market with $10 billion. $5 billion of that in the long end. last time we were close to the high yields of 3.21 annual high for 30-year bonds, at a that point 2s were at 2.72. the curve continues to power up. the last two months yes, there are setbacks and we dipped briefly below 2.30 but it's

easier to get the moves up in yield than the moves down. >> this is me with a jaw-drop look on my face. you didn't mention the strength of the dollar. >> it's having quite a day. it's having its best day against the euro in a month. a lot of people say it's the u.s. better data better housing data and hope fed will raise interest rates. central banks moving the currency more than talks in greece. the fx market assume there will be a deal even if it's just a band-aid. >> you like europe better than the u.s. market right now, yes? why? >> we are calling for an earnings surprise. 25% etf, 2 1/2 times consensus. that will shine a light on structure undervaluation of greece relative to the u.s. we don't think it's well-earned at all. we get greece out of the way.

positively or negatively that is ultimately a positive catalyst for europe here. >> helping the european earnings. >> let's get to athens. u.s. central bank boosting funding to greek banks the third time in three days. michelle criesaruso-cabrera has the latest from athens. >> tomorrow is going to be critical. that's when the finance ministers meet. they now had greece's new proposal for about 48 hours. their technical teams have been looking it over. there is no official copy of it available. details have started to leak out. already people are angry about it. pensioners were protesting today, concerned about having to retire earlier. people will have to retire earlier in greece than they have in the past. maybe they have to contribute more. what is amazing, as these pension irs protest, the plan shows they are fairly unscathed.

most of the program appears to be new taxes on wealthy, middle class, businesses, higher sales taxes, restaurants tourism, et cetera. as a result there is a lot of criticism being thrown at the new prime minister here alexis tsipras. he could be facing mutiny within his party. we'll see. he has to get this program, whatever it turns out to be if and when it gets done through parliament. it's not a done deal yet. we are waiting to see what happens. it's going to be a tough couple of days as they try to hammer something out here. >> this was always going to be his problem. he got elected on this idea he would ease austerity and renegotiate the terms, yet the greeks according to polls, want to stay in the euro. the question is can they do that? will we get an answer?

i guess what the political fallout is going to be back in greece. >> yeah. i think there will be political fallout. we've already started to see protests, even though they don't know officially what's in the program. we have had now four prime ministers who promised they would end austerity and convince the europeans to give them the money anyway and keep them in the euro? i had one political scientist say today, i thought it was a good observation -- there are no parties left except for the fringe parties that want to leave the euro no parties left that can promise that. they are going to do it or not. the silver lining is maybe we are closer to the end of this than we were a long time ago. >> a lot of economists warn it will be worse for greece in terms of austerity and the economy if they do have to default. it's a catch-22. >> michelle, thank you. great job as always. it's like the student body president candidate who promised no homework for everybody if he

gets elected, right? >> can't pull that off. >> not happening. >> was that you? >> that was not me. back to our group here. ben ladler does this present a buying opportunity for european stocks you might like otherwise, that might have been pushed down because of fears because of grexit? >> yes. we have earnings down more than a third, margins at 10-year lows. bank lending finally picking up. consumer confidence picking up. we are positive on greece here. on europe, i should say. >> ben willis i noticed today energy is one of the best performing s&p industry groups. oil prices are higher. that is along with a stronger dollar. is that a positive signal for oil and energy stocks? would you be a buyer? >> i like energy stocks. i like they have been beaten down and probably one of the more underperforming.

the idea there is a global appears to be a global restrengthening in the taking on on equities in this marketplace and energy is a building block. i would agree that europe is very attractive. the american investor has to be careful on the currency con version. you had the dax trading at all-time highs relative to the united states. while it may have been a 20% return for the american investor it was only 5%. the dollar activity was directly related to the yield curve. the market activity says european buying. we had our intraday highs twice all before 11:30 in the last few days. that tells me this buying is european, not american. >> we have seen great european influence in our markets here until they closed at 11:30. rick santelli can you see any

way the european debt and currency markets are betting on greece right now based on the action you are seeing right now? >> maybe the softer euro is giving us an indication. it's hard to read the tea leaves. i would go on record saying as much as the dollar is having a good day it's having a good day within a range. until the euro gets below $1.10 or above $1.15, that's when they get hot. at this point, i think it's very difficult to look at the market and see much except for one thing. that continues to be that the direction of interest rates globally is most likely higher. equities can go along for the ride. are they keeping up with the fundamentals? austerity gets a bad name. if you don't pay your bills, you don't get the spoils of what it buys. you can call that austerity. i call it fiscal prudence. i think it will be under review for the next couple of years.

>> i think he's right. >> retiring at 57 would have been nice. thanks guys. appreciate your thoughts today. 48 minutes left in the trading session. dow is up 15 points. we are watching the nasdaq. if you all-time highs. same thing for the russell 2000. >> facebook having a good day. up next, unveiling the future of mobile ads aimed at getting users involved. julia boorstin has a special report. >> and shares of biomarin. they surged about 50% this year. that stock is dipping today. biotech company ceo will be speaking about new drugs in their pipeline. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card

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the laws of physics are holding. what goes down much come up. that's ambarella. we watched it get clobbered on

the report it was ridiculously valued. today though back up 7.5% to $101.50. jim cramer said the decline could be the perfect entry and called the long-term story compelling. so there you are. >> he said it was too inexpensive to pass up at these levels and was looking at it below $100. he believes in the long-term story and voila. facebook is having a good day. up 3% today at about 7% over the past week. above 3% now the social networking giant unveiling a new mobile format for advertisements that promises users a more immersive experience. instagram today revealed a new approach to search and discovery. >> this sounds like a story for julia boorstin. she yoins usjoins us with details. >> thanks.

gives executives a sneak peek at the vision for the future of mobile ads responding for more immersive creative tools. showcasing an ad for a michael kors watch which blends video, still images and information in an interactive format. users can push to turn the watch around. it is designed to blend with videos and other contents in users' news feeds and designed to load faster. this plays into the mobile growth that has driven facebook shares up over 30% over the past 12 months. it plays into the trend in video ads which are considered a key way to lure ad dollars from television television. helps with rivals launching new formats including twitter, snap shat and instagram. the photo sharing network announcing more powerful search

tools to make it easier to find people places and tags as well as new explore page with trending tags and places designed to make it easier to browse. more than 70 million posted videos every day, instagram sees value for users and potentially advertisers in making all that content more accessible. >> whenever i hear about these new ad platforms and new ad programs when it comes to instagram and immersive ads, the question is how do they make it so it doesn't disrupt the year experience? so advertisers need to put their content and users don't get turned off by these ads? it's a delicate dance as something facebook has done well. >> you are right. it's a very dell can't dance and something facebook takes seriously. if they alienate users making the ads intrusive, people will

stop using the service. people are increasingly using videos creating videos and posting videos so the ads need to be more likely in a video format. they want to make the ads more like content and make them interesting and compelling. they are responding to this demand to give them better tools to make the experience something a user might like rather than be like an interruption. >> twitter would love to have that formula going forward. thanks. julia boorstin. 40 minutes to go here before the closing bell. still in positive territory. off the highs. a split session among industry groups. the dow is higher by 17 points. s&p 500, little changed. still in positive territory

along with the russell. >> it could be up 0.1%. that is an all-time high. and fitbit. >> on a roll. >> it's now worth more than foe pro. that story coming up. market cap hitting nearly $8 billion. >> the ceo of biomarin pharmaceuticals talking about the new drugs in the pipeline. here at td ameritrade, they work hard. wow, that was random. random? no it's

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take a look at ishares nasdaq biotech. ibb down today. that masks the story of quite the surge. 26% higher this year. >> a lot of volatility. lately that volatility has been yielded way for higher prices. >> biomarin is one of those stocks on a tear. it's up 14% in the last five days on promising new data from

phase two drug trials. >> biomarin ceo joins meg terrell in a cnbc exclusive now. >> thank you for joining us. >> thank you. >> you guys are up 14%. your stock in the last five days. you had exciting data on your drug for the most common form of dwarfism. you are moving into the late stages and what could this did could for this condition? >> this is very exciting. not only for biomarin but specifically the 24,000 patients and children in the world that have this. this is our first trial that showed we were able in the highest using the trial, to increase gross velocity the amount of growth children see over six months to a year.

about 50% in these patients. we basically believe the drug might bring patients to a normal growth rate. >> they were growing four centimeters and you helped them grow six centimeters. and your drug for muscle dystrophy. >> almost two months ago we filed in the u.s. we submitted for filing in the u.s. we have 60 days to approve our file. we are looking forward to that. we filed with the european medical agency an application or so earlier this month. we might hear from them as early as next week also. >> how do you look at the competition? >> we completed our filing in

the u.s. and europe. they haven't seen started in europe. they started in the u.s. the fda would only start reviewing their follow once they completed their filing. it's difficult to compare the two drugs. they have a very limited data base. we have over 300 patients. treated some over three years in 25 countries and 50 centers around the world. >> does it matter who gets to market first? you may go to the fda with potential advisory panel back-to-back days later this year. >> it's hard to tell because even if they file completed their filing next week we would be two post offices ahead of them. i don't know if they would catch up. they communicated they might have intellectual property issues in europe and might not have freedom to operate in europe. >> more to talk to you about.

thank you for joining us. >> thank you. >> thank you very much. time for a cnbc news update with sue herera. >> here is what's happening. vice president joe biden urging china to be a responsible and cooperative leader in the international community. warned it against using coercion and intimidation to settle disputes. john kerry led the delegation at the annual u.s. china security and dialogue meeting in washington, d.c. >> amazon and etsy will remove confederate flag items from their sites. it follows similar decisions by ebay walmart and e holdings after a racially motivated killing in south carolina last week. >> ash carter attending a wreath-laying ceremony as he continues his official visit to the baltic company. he announced the deployment of an armored brigade to that country.

google launching a free version of its music streaming service as it seeks to upstage the debut of apple's rival service next week. goog plal musicle play's launch today is the first free version. 30 minutes left in the trading session with the dow up 23 points. >> the clock is ticking on what is the most important 30 minutes of the day. >> coming up alibaba not rocking it in the usa. the chinese e-commerce giant bailing on american online marketplace that kicked off just last year. why baba is saying bye-bye. to insurance policy has a number. but not every insurance company understands the life behind it.

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blackberry is down 3.6% after a quarterly loss. their software first quarter revenue more than doubled to

$137 million and separately blackberry announced a cross licensing agreement with cisco. it is clear that while their hardware division continues to suffer it is software and licensing where they are finding success. we had john chen on earlier today. >> less than 30 minutes to go before we hear the closing bell. i'm on the floor with dmb securities on what could be unusual volume. today it's light volume summer trading, end of quarter. >> we had a lot of news to push the market all around. you've seen it up down basically flat. this morning we had good housing numbers. single family. first-time buyers back in the market. we saw good news out of the u.s. dollar, real strong rally. that put a cap on the market earlier. >> is the better housing data

and better economic data the reason we are still positive? >> i think that's the only thing keeping us positive. we would have been much higher had it not been for the dollar. greece is on the sidelines. everybody is watching and hoping they get to resolution to it. housing numbers rallied it. >> what is priced into the markets as far as greece? >> most traders heard this before. they think they are kicking the can down the road. there is no money to give them. as you mentioned yesterday on cnbc that's more about the pensions and retirement age for the average greek. we'll see where that goes. >> you had an eye on corporate buybacks. how much they contributed to this rally. >> in the first five months of this year, $4 56 billion into buybacks. that's astronomical. we are on pace more than last year. one day last month, seven out of ten trades was a corporate buyback. >> do we need to have that

continued? >> probably. >> with the dow up 31 points we'll see what happens. thank you alan valdez. >> shares of fitbit have seen quite a pop since its ipo last thursday thursday. up 30%. the value surpassed gopro. can the fitness tracker maker keep up the pace in a crowded space? time for a stock brawl. roger thinks the staying power of this company could be limited. good to see you both. roger, are you surprised how well the stock has done since it came public? >> no. not surprised at all. the utility of the product, there is no debating that. we also have a very favorable environment as far as low interest rates, hot ipo market clearly this is a fertile

ground. the question is going forward, what is the prospects for holding the company? does it make sense to buy right here and right now going forward? we would argue it doesn't. maybe we could get into some reasons why. where do they get growth from? the whim of the consumer. maybe not competition of new entrance but maybe existing ones. >> jack one analyst last thursday cited a statistic. i didn't confirm it but i'm one that has gotten a fitbit in the last six months and put it in a drawer. a lot of people have done that. is there staying power for this company? >> that is an isolated case. you can see it in not just year growth but in the incremental upgrades users have made. users that bought it two years ago, one year ago, they have new

products. that stickiness is 80%, 90% retention. this has a lot of growth ahead of it. has tremendous growth record behind it. valuation is incredibly compelling. >> at what point does this stock look expensive? who are you comparing it to? gopro? >> that's one of them. last year grew 75% revenue growth. accelerated 210% this year. grew earnings 450%. now if you look at it it's trading around i broke it out, very conservatively almost worst-case scenario decelerates 50% this year 30% growth next year. $1.25 in earnings. under armour trading at 60 times. it grew 30% last year. that was a deceleration.

it's somewhere in the middle. if you are going to apply 30 times multiple this is much higher than now. >> of the 19 million sold 9 million are in the drawer right now. only 10 million are being used. >> right now the market is 20 million. cnet is forecasting a small decline in sales this year and maybe to jack's point, that will continue. even if they have 100% of the market at $130 a pop, that is $2.6 billion in revenue. market cap is $8 billion. where does it go from there? i don't think it does go from there in terms of risks and rewards for a financial professional to buy the stock

with their client's money. it doesn't make sense. >> one of the other bull cases on the stock and cramer talked about this there is an ecosystem. they've got a number of products. what they are doing is much bigger than what is in your drawer right? >> right. it spans a far range. the growth last year 175% sales growth was driven almost entirely by new users. they haven't started to lever the pricing up. they can increase prices. it has a wide range. this fits well with impulse purchase territory. it goes up to $250. it meets a lot of needs. when they upgraded or when they released their first quarter results which included three or four new products the growth accelerated to 210% earnings growth. this is catching on. the ones who like it will continue to upgrade. it has a market that hasn't

begun to get topped. brand awareness is still quite low. >> it's probably an impulse stock, as well. >> good impulse to buy right now. >> good to see you. thank you. >> 20 minutes to go before closing bell. we are looking at gains here. the dow still up more than 20 points. s&p 500 in positive territory. nasdaq is the one we'll be watching. if it closes up it's at a record. >> mid cap and small cap russell 2000 in record territory. >> when we come back we'll look at small stocks in the russell with potentially big returns. >> carnival cruises has more ships than any other cruise line. the largest market cap of any fleet. today it's earnings beat the street's projections handly. later carnival's ceo will join

cnbc in an exclusive interview.

some of the laggards.

the nasdaq is higher. nvidia seagate, western digital dragging down some of the tech indices. really we are just flattish on the major indices. >> the small caps are doing pretty well. russell is in record territory. >> joining us is small cap growth fund portfolio manager at nidam. is the idea the u.s. is recovering while we have headlines overseas like greece which is worrisome. >> i don't think greece is a worry for small cap companies. it's less exposed to currencies. the larger cap companies have worry about the strong dollar. that probably persists.

there's a lot of opportunities where you are picking good management, real secular growth. it's stock picking. we have great ideas in that area. >> they are not susceptible to currency swings but they are to interest rate rises. do they get hit harder? >> they are less levered than larger cap companies. we try to stay away from levered company where we are are in growth phases. we think that is a great area to pick stocks right now. >> we saw small caps take off when the interpretation by the market was dovish. that is a concern? >> i think it's more certainty we got past another milestone that the market was nervous about. we'll get past greece. that will be a little more certainty, as well.

we are in the summer months when volatility drops off. small gyrations will cause big percentage moves. underlying volume doesn't concern us that much. >> these won't be household names to a lot of people but these are some of the small caps you like starting with ruckus wireless. >> it announced a deal with juniper networks. they are beginning to pair up with other market cap companies. this is the shift we've been waiting for. this is a great opportunity in the wireless land business for enterprises. there is a whole kick-off of the erate program for wireless outfitting of schools across the nation. they just can't afford to put the money out. that's been the disappointing factor in the last two quarters waiting for that rollout this

summer. >> individual story. some other names here. entg. what is this company? >> we love semi cap equipment. entegris is more of a supplier along the production of wafers versus big capex numbers. another is mks instruments, which we like. both are levered to the increased spend towards the lower nanometer which they are driving for wireless mobility products. >> i see a trend there. small cap but in this particular area of technology you like. >> correct. very specific product, specific technique they have. >> thanks chris. >> just now, art cashin made the signal.

$200 million to buy going into the close here. that's not a whole lot. for this market which has been neutral today, it might have an impact. >> a lot is the low volumes. as alan valdez was telling us. >> after the close, we'll seek with goldman sachs president gary cohn why he thinks overregulation may make this market more risky than it should be. he was out with an op-ed in the "financial times" today. he will join us exclusively on "closing bell." >> even with the bells and whistles ipo, alibaba has flopped on the american online shopping space.

dow is up 21 points. any positive close for the nasdaq and russell will be a new all-time high there. joining us with where to make money, kevin nicholson from river front investment group. matthew tuttle is with tuttle tactical management. good to see you both.

we haven't mentioned japan today. you like japan at these levels. >> we do like japan. we have really concentrated on japan and owning japan on a dollar basis now because we feel that japan is rangebound with the yen at this juncture. we've gotten the currency play out of the yen. right now we think that the currency is going to be roughly 1.20 to 1.25. we see japan doing quantitative easing. it's allowed the opportunity for, to still get growth there. >> central bank action. you say greece and fed are kicking the can down the road thus the market should be in rally mode which is what's been happening since the fed. >> exactly. we've been stuck in this boring trading range all year.

there's been a lot of reasons, but the fed is a big one. we think they don't tighten until 2016. then over the weekend, greece kicked the can down the road. too much at stake not to have that situation worked out. we've been adding equity exposure to our etf and will use any weakness to add more. >> it's only taking us back to the upper range of the range we've been in since march 2nd when we last hit an all-time high. what is to say we don't break out to the down side from this trading range? >> eventually we will. this bull market has to end at some point. we need that last speculative blow-off. it could break out either way. we think it will break out to the up side. there is more positive than negative. that might shift next year. right now we think there is more positive than negative. >> you like financials and

biotech. you are focused internationally. do you have exposure in the u.s.? >> yes. we like financials and the big banks. we are overweight developed international and underweight u.s. because we feel the u.s. is fair value. we like the large caps but we feel there is better value when you look at europe at this point. >> you like the financials. are you worried this is becoming the consensus trade? >> our sector rotation is mostly based off momentum. no surprise. we like biotech and financials. that's been what's strong and we'll keep riding that as long as it takes us. >> everybody loves financials right now. thank you both. >> multiyear highs from morgan stanley, goldman sachs. >> up next coming right back with bill's closing countdown. >> after the bell sara is still with us in the wake of the

racially motivated massacre in south carolina the confederate flag is being dropped by several large retailers today, including amazon just moments ago. one of the oldest flag sellers in the u.s. will tell us why he is still selling them and making them.

♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? 2 1/2 minutes left.

a rally on the open this morning. once again you see the influence of the european markets as we head toward 0 the close in europe. the markets started waning there. we've been going sideways since then. a gain of about 25 points on the industrial average. nasdaq, any positive close will be a new all-time high. we have that right now after spending much of the session lower. it's now up five points. looks like we will get a new all-time high again for the nasdaq and russell. the dollar having its best day against the euro. down 1.5% to $1.11 as we wait for second quarter revision gdp tomorrow. >> everybody is trying to figure out what will make bond yields

go up. banks at new highs. horgan standly. they are up 11% this quarter on the belief that short term rates would go up and that will help their bottom line. it hasn't happened but they are anticipating it. i want to note there is a small group of other stocks expanding recently. retailers at new highs. target at a new high. dollar was at a new high. i haven't seen a dramatic expansion. we are one day's rally away from big breakouts. like 500, 700 stocks moving to new highs out of the 2500. probably 150 today. that's decent but not like eye-popping. the market will significantly break out a technical level a

few more days. >> thanks, bob. coming up the latest from athens. gary cohn with the op-ed everybody is talking about coming up now on the second hour of the "closing bell." welcome to the "closing bell." i'm sara eisen in for kelly evans. off the highs, but eking out a gain. didn't take much, but we did go over the edge. a new record for the nasdaq. dow finishing up about 25 points and s&p 500 not moving a whole lot.

john fortt is here and steve grasso will join us momentarily. mike san tolly, it does feel the cues were from the bond market and u.s. dollar. >> the yields have an upward bias. was a brief one week pullback in that yield. the chart is higher highs and higher lows. it looks like it wants to inch higher. i do think that's the factor here. the vix threatening 12 right now. we obviously have a slow drip. it makes sense the market doesn't want to get too far ahead from the greece news. >> we are in a critical 48-hour window here. yet, john fortt, another record high for the nasdaq. >> yes, indied. tech stocks doing well.

facebook up nearly 4%. the advertising industry is trying to digest what social and social video means. snapchat making a big splash. there seems to be an appetite for hope for the future in technology. amazon also up better than 2% near those all-time highs. even though the markets overall might not move that much there are names that are. >> we make much of the fact facebook is worth more than walmart. that's just the world we live in. >> a billion plus people at this point. one of the stunning things about that sector is you never really see in history a company go from zero to $200 billion as fast as facebook did. that shows the value of that platform. i don't make too much of walmart receding here. it's been flat as a business and stock for a long time.

facebook has to become the new television. it has to eat a tremendous percentage of existing media advertising dollars to justify where it is. >> what did you think about facebook new moves and this prototype to attract people on mobile? >> it's a mix of photo. it's very vertical. we were talking about video. the idea was you don't look at it like this. turn it around like this like a tv. now it's all about vertical. snapchat has been a big partner. now you've got these brands and technology companies thinking about how is the experience going to work best on a smart phone? let's not take what worked on a pc or worked on a television to this device. let's figure out what is best for it. to your point, that is why facebook has exploded so quickly

is because of mobile. similar to apple. the smart phone has become this global phenomenon. there have been different ways to make money whether on the chips, operating system or applications. we are getting deep into the video advertising part. >> blackberry shares down after reporting that quarterly loss. they did see doubling in their software revenue. you caught up with ceo john chen earlier today. >> i did. we talked about a number of things including the phone strategy. i don't know if we want to play a clip from that right now how he responded to the idea that they might be moving away from hardware. take a listen. >> i am big on phones. i like it but i'm not emotional about it. this is a business. we think we can make money on the phone. we have done a lot of things not only about the design but everything we talk about in

manufacturing arrangements to components to everything. we are looking, breaking down everything about the costs in the phone business and how to turn and profit and grow on top of that. >> that is where john chen and i separate. i am emotional. they have to be comfortable being a niche player. >> that is what he is. phones and john chen are friends. they are just not lovers like they used to be when blackberry was the leader in the space. he is staking the future on software that manages not just blackberry, but iphones and android phones for businesses. he's trying to sell that and the success of that will determine whether this turns around. >> do you think there is still money to be made here? >> when i look at at niche player in any consumer product, it usually has a distinction.

talking about porsche, there are people loyal to it. does blackberry have the ability to distinguish itself with the quality of the product and loyalty of consumers to sustain itself as a niche player. >> john chen is trying to make money. whether you continue to make the hardware or not, that doesn't matter to him. >> $3.5 billion enterprise value. you don't have to have that much in the market to justify that valuation. >> he is trying to narrow losses first. >> exactly. steve grasso joins us now. you've been busy here. >> i was. >> you are making money right now. >> the 9:30 to 4:00 gig was calling. >> what is the trade right now? major averages went nowhere today. where was the trading going on? >> everyone is waiting on greece. everyone is wait on the fed two. major things moving the markets. you look for the nuclear deal in iran. you look for russia with nuclear

headlines. there are so many things out there. nothing -- everything is in the gray area. everything is black and white. >> we saw individual standouts here. telecom finished higher. that was largely due to at&t and number of upgrades. energy did well today on the back of higher oil prices. what stands out to new terms of sector strength? pisani was looking at retail names that made new highs. >> how about old name thrown out like abercrombie? jeffries put out a note this morning. all these things we are topee. we continue to move higher but are still rangebound. what is interesting, mike brought up porsche as a niche player. if you look at blackberry how about their qnx software? how about the connected car? porsche is one of their clients. why wouldn't blackberry be a takeout target for apple or

google? for even amazon? we are not hearing anything about that. >> do you think there is something to that? >> i don't. it's because while they are in a lot of different places they are not making a ton of money. >> they are not making a ton of money -- not to cut you off, but they are not making a ton of money in the software space if he thinks that will be future for them. if they want to make a name for themselves, brand that connected car. when you say qnx, nobody knows what it is and that's blackberry. >> they say after two years they hope to grow that business into something bigger. that is a slow grind. they are in a bunch of places making money. if they want to expand their market opportunity, it's going to be a tough slog. they've got to move into different pieces of the car they don't own already. there aren't a bunch of consumers they can win over with quick innovation. they have to get those partners to sign up. on the software end, it's more their bread and butter. these are customers they had

before. every wall street firm was full of blackberries before. >> it hasn't been going well for them. >> it hasn't been going great but better than the old strategy was where they were losing money on hardware. at least they staunched those losses. >> we are arguing on the same side if they change that brand recognition to a connected car, it goes longer than the chart which suggests on their enterprise software that hasn't worked. that story hasn't worked. to one cares about that story. the connected car, sexy smooth and growth. >> we've got to leave it there. you are just warming up for "fast money." he has miles to go before he sleeps. they'll be talking to bob peck about why facebook's ad

announcement could be a game changer for that stock. sounds familiar. >> we saw it in the action in the markets today. >> alibaba backing off its american e-commerce strategy. the company selling its website 11 main which competes directly with amazon and ebay. is the push into the u.s. failing? we'll talk about that. >> or misunderstood? >> goldman sachs president and coo gary cohn warning one of the strategies meant to reduce risk on wall street may actually be making things worse. he joins us exclusively to talk about the impact of financial regulation.

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alibaba today announcing it is selling its american e-commerce subsidiary called 11 main. he was trying to persuade american small business owners to extend their products to chinese consumers. >> is alibaba losing footing in the u.s. or setting up for something greater down the road? joining us victor anthony.

are you surprised they are cutting loose on 11 main this quickly? >> i never thought 11 main would have been successful in the u.s. the market in the u.s. is deeply entrenched. we have two big behemoths in the u.s. amazon and ebay. then you have small vertical companies like shutterfly and others who have taken share within the vertical spaces. i thought they would have a difficult time entering the market no matter how big they are, no matter how well capitalized the company is. >> as i understood the message, he made it repeat lid on his trip the goal was to get u.s. businesses to make products to sell to chinese consumers. not captured that person

audience that was trying to be done at 11 main. this doesn't seem like it deviates that much from jack ma's strategy in the u.s. >> that was his new strategy. his strategy, if he is serious about it i said this before i think the best way for him to accomplish that is to buy ebay as a spin-off to paypal. i think that's his best way to go about doing it. any other way would be a challenge for him. >> is he going to run into trouble if he tries to pursue that strategy? will sifis get nervous about a chinese company buying a big american brand people know? >> jack ma is very well respected across the globe. if he makes a big play for a big

brand like ebay which growth rate stalled. they are coming out of it a little bit. they can reinvigorate that platform to get it to grow again successfully. i don't think he'll have challenges or anti-trust challenges or challenges or pushback from investors. if he is serious about international penetration into the chinese market. >> does it really cost alibaba very much in terms of the total broad view of its business to even leave the united states aside for a while? can it meet his growth objectives without playing here very much? >> great point. you do have roughly 650 million internet users in china. i think the runway is long and wide in china itself. that 650 million could grow to about a billion over the next several years. could you get that internet

penetration rates, some of the forecasts could grow to the mid teens. the runway for alibaba within china is long it's wide. they are the proxy for retail in china. they have a dominant market share that could grow into solid rates. they could continue to exist in china. >> you still like the stock? >> yeah. 40% growth. they dominate the e-commerce in china. 5 billion per year free cash flow. near-term challenges they are going through, but i think they'll overcome them the next year or two years. >> good to see you. carnival's profit more than doubled in its second quarter. the cruise line operator's guidance disappointed wall street despite strong advanced bookings. the ceo of the company will tell us how he plans to right the ship. >> i see what you did there.

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there wasn't a lot of action. >> mike santoli, have we figured out too much financials should do well as interest rates rise? >> absolutely. i agree that it seems like a very consensus trade. it also drops right to the bottom line every single day the yield curve steepens. that it's only trade it is. just a bond trade. >> at some point it becomes a crowded trade? >> it certainly does. if all you expect is that net interest margin go up and they are not going to have tremendous capital return and all other happy things that come along with it, stocks can go well as long as yields can live with it. >> the investment banking business should do very well.

>> for those involved. >> ipo has been hot. >> and mergers. >> for many it has. for some? >> that will be an area of frustration for people in the old merrill lynch. b of a stock does not capture a lot of value for old merrill lynch. i do think you have obscuring of the value there because everyone sees b of a as a net interest deposit taking company. >> as financials flip to the flavor of the month, the other side of that is utilities, reits, a lot of these dividend-paying, income-paying stocks that have done so well in the last few years because of the low interest rates. >> most of the folks watching love those companies. >> absolutely. bond proxy makes all kinds of sense. even with the indexes near new highs, almost about half the companies in the s&p 500 are trading below their 50-day average. a lot of bond-like stocks and companies that haven't

participated are wallowing. you can look at it as resilience or underneath the surface things don't look so strong. >> health care another favorite. what will happen? we are expecting the supreme court to rule on obamacare on friday. wonder what the trade will be like before that anticipating what the results are going to be. >> i don't know if you can anticipate. there is a hazard anticipating. there is more down side than up side in terms of the hospitals and hmos. >> another mover was carnival came out beating earnings expectations doubling profits from last year. guidance from management coming in conservative and the stock closed down nearly 1%. >> simon hobbs joins us with an exclusive interview with the ceo of carnival corp from the headquarters in miami. take it away. >> welcome back to cnbc nice to see you. >> good afternoon.

good to be with you. >> if we look at what's happening here and there are standout areas of growth for carnival it's in this country and in the carnival brand. i wonder if that is a comment on you transitioning after two very difficult years from the fire of the triumph or a comment about the u.s. consumer? what's driving it? >> the carnival brand itself is doing exceedingly well. guest expectations are being exceeded. we have people coming in droves to sail on the carnival brand and it's fantastic. princess, american sea borne are doing well. our european brands are doing well. not quite as well as carnival but we are seeing longer booking curves and improved yield performance in all of our sectors across our nine brands. we launched our 10th brand a couple of weeks ago. >> can you tell us how much you're increasing advertising? people are concerned about the

cost of that moving forward. is that specifically about the caribbean in this country? the fact occupancy is well ahead of last year but you still have lower pricing, you can't increase the margins. >> our yield guidance is 3% 4% increase globally. it will be higher than that in the caribbean this particular year. we are seeing ticket yield improvement and lots of onboard revenue improvement. the dollars we spend there we have increase sodwhat. we may invest more. that is not a driving cost for us. it is a driving area for investment to drive further yield growth. frankly, we are seeing yields well in excess and revenues well in excess of the spend. we are getting good return on investment. >> people have to understand the scale. you are biggest in the world. it's a fleet of 100 ships. you mentioned the new brand that

will take young people down to the dominican republic to teach local kids english or build water filters. you have an interest in china. are either things transformational for the business overall or will always be about the bulk of those 90 ships that's serving the middle class here and middle class in europe? >> fathom we are excited about. it's a do-good venture, but also a financial venture where we expect to have a market-driven solution that is holistic to transform an area we hope will be replica replica across countries. with regard to china, china is a huge market. we've only begun to tap the potential. we are the largest in china.

we will be again next year. has been very successful. it is a game changer for the industry because it absorbs capacity. giving us relative scarcity in all the rest of the markets in the world, which allows us to have yield growth to drive revenues for ourselves as well as for the industry. most importantly, what it's about is the greatest vacation value there is cruising. and exceeding guest expectations. that's what our brands are doing and why we are enjoying the success we are. >> stock up 25% the last 12 months. arnold donald there, ceo of carnival joining us from their headquarters in miami. >> thank you, simon. >> thank you. we'll see new 30 minutes on "fast money." time for a cnbc news update with sue herera. >> california building inspectors blaming badly rotted wooden beams for the collapse of the balcony that snapped off that fourth floor of an apartment building in berkeley california, last week that.

collapse killed six students five from ireland. >> hundreds of searchers combing the heavy woods in northern new york state hoping to close in on two elusive murderers who escaped from a maximum security prison two weeks ago, after police found dna data from a hunting camp broken into by the inmates. hulu will offer customers the ability to add showtime for $8.90 a month starting early july. that comes on top of the $7.99 customers pay to stream current and old seasons of network shows. >> samsung developing a smart truck that eliminates blind spots behind big rigs. it displays live video of the view on tv monitors mounted on the back of the truck. it has a night vision mode. samsung says the technology works well and will probably save lives. that is good news. that is the cnbc news update at

this hour. >> thank you, sue. seems futuristic. financial regulation was supposed to reduce risk in the market. goldman sachs president gary cohn believes it may end up having the opposite effect. he joins us exclusively with his latest op-ed and thoughts on the markets and regulation when we come right back.

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is financial regulation actually making this market more risky? it's a question a lot of people are asking. in an op-ed in "financial times" goldman sachs' president gore cohen warned a practice that is supposed to reduce risk is reducing risk but could actually amplify problems down the road. he says "clearing works best in the case of standardized products that trade in deep and liquids markets, and when clearing houses are backed by strong and robust risk management capabilities, they can become centers of concentrated risks and sources of contagion. amplifying systemic problems instead of alleviating them."

that's the real key. is this a systemic risk? what is going on in clearing houses. >> we welcome gary cohn. thanks for stopping by. >> thank you very much. >> who are you talking to here? >> i'm talking to everyone. clearing is very important. we all depend on clearing. we've grown up depending on clearing. it's one of the most important inventions we have in the financial services industry. the ability to create a trade and have both sides of a trade be netted off into a clearing system where the clearing system becomes your counterparty is very important. what i'm concerned about is when you start putting securities into a clearing system that are very difficult to liquidate. the clearing system itself instead of solving the problem

could, and i emphasize could, ultimately become part of the problem in becoming systemic in itself. we've seen that happen to some extent. i lived through in the late '80s the demise of a great clearing member in the gold and silver market. i was executive committee member when we had to liquidate a clearing member. then we were dealing with gold and silver. think how we evolved in the clearing mechanism with the regulation now says we must clear almost all the transactions that can be cleared. >> right. you knew this was going to happen. we have breaking news. hold that thought. we have more to ask you about. dom chu breaking with that. >> two large cap companies. boeing. just named its successor to jim mcnerney. that man will be the current boeing president and chief operating officer dennis mulen

mulenburg. he will become ceo july 1st. jim mcnerney will remain on the board. the current coo dennis mulenburg becomes the coo effective july 1st. >> netflix will split its stock 7-1 effective later in july. right now looks as though it will be payable on july 14th to stock holders of record at the close of business on july 2nd. boeing gets a new ceo dennis mulenburg, effective july 1. netflix announces a 7-1 stock split effective july 14th for shareholders of record. back to you. >> thank you. we'll have much more on those two big stories. new ceo announced for boeing to

succeed jim mcnerney. >> how calmly dom said a 7-1 stock split. >> gary cohn we were just hearing about the potential risks that lie in that clearing house system that dominates derivatives. what can regulators do about it now that it is making the system safer? >> clearing is very important. we need to be careful what we clear. we should be clearing the most liquid, the most transparent securities that exist in the world. that's good for the system. it's good for counterparty risk and good for transparency and good for price disacceptsemination. many the clearing house has no real ability to liquidate those

transactions if that clearing member gets in trouble. >> what do you want to do to dodd frank to change this to make that happen? >> i think there needs to be some requirements about the liquidity and transparency and trading volume and velocity of trading for things that are clear. to make the clearing house safe enough that any defaulting clear member could be liquidated quickly. >> like a stress test? should they be stress tested? >> i'm talking about security by security that goes in the clearing house, there should be some threshold to make sure that if a defaulting clearing member needed to be liquidated that the market provides enough realtime liquidity to liquidate that clearing member. >> you see this as an unintended consequence the way she set up the clearing system under dodd frank. you are clogging up with illiquid derivatives coming down

the pipe. how do you solve that? do you expect congress to step in with this one little piece of dodd frank and want to make a change? >> it could be congress. it could also be the various regulators. of which there are several. the cfc is aware of this. other regulators are aware of these issues. i don't think it was their intention to clog up clearing houses with illiquid underliers within the clearing houses this. problem is getting recognition right now. this problem ties in with the liquidity issue many other people have been talking about. >> lots of dire warnings about how the roots of the next crisis will not be based on credit and leverage like 2008 and will be caused by liquidity instead. >> remember. what we are really talking about when we talk about liquidity is we are talking about price.

it's what will the price be? there is going to be a price. people are going to be able to get in and get out of markets, but what we are talking about here is how dislocated will the next price be from the previous price? when you put in an order at this split second where will you be able to get filled the split second you get filled? that's what we are talking about. i don't want anyone to panic and say there is no liquidity in the market. it's just what price are we going to create that liquidity at? >> is the concern the fed is going to embark on its first rate increase whether it's september or another time soon and that's going to cause this price dislocation because of lack of liquidity? >> we are never that smart to know exactly what causes the next problem. in some respects we have almost encouraged many investors into riskier products because of zero

interest rate environment. if you are a retiree today and living off your retirement funds and looking to get hurdle rate of return you no longer can own very secure very safe bond. you feed to move out in duration and in the risk curve. you bought those products most likely in mutual fund form and when the interest rate cycle changes, you may want to get out of those products which may cause a distortion of price. you may or may not like the price you get out of. >> are markets broken because of financial regulation? >> i won't say markets are broken. i think they are not as efficient as they should be. it's the cumulative effect. when you look at regulation and i think many of your guests say this no one regulation by itself has had a bad effect.

many had very positive effects. it's the cumulative effect of many of the regulations we put on the market maker community that have had an effect on the markets. when you look at the amount of capital that broker dealers can commit to the market you look at the amount of capital we can commit to our clients for the balance sheet we can give to them, you look at that and what it will do to price. you look at what we are putting in the clearing houses. all these issues may become an issue. the one thing we know we never understand what the problem is going to be until it's a problem. the one thing the last financial crisis taught us we are very unaware of what the problem is going to be. if we were aware of the problem, we would all solve it. we have to be concerned about what are the unintended consequences and what could be the problem. when people talk about liquidity or talk about clearing houses they are saying hey, look at these spots. these are spots where there could be a problem.

there may never be a problem, but at least we are talking about it. >> we'll see if the regulators start talking about it. >> very happy to talk about it. >> gary cohn president and chief operating officer of goldman sachs. much more on the breaking news. we told but boeing and netflix. you wouldn't haul a load without checking your clearance. so why would you invest without checking brokercheck? check your broker with brokercheck.

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boeing is getting a new ceo to succeed jim mcnerney. their president and chief operating officer. we'll see what the stock is doing in the after hours with that announcement there. >> it's a little bit down. >> there it is. >> at the same time we learned netflix shares are sharply higher on the back of this announcement it is announcing a 7-1 stock split. for more we are joined by julia boorstin. we are with expecting this news to come is the 7-1 a surprise? >> yes. absolutely. we knew this was coming when at the shareholder meeting they took the preliminary step of getting shareholders to approve the step that came before a stock split. i had heard 5-1 to 10-1 split. this is designed to make the stock more accessible since it had gone so high and help employees participate in the options plan to access the

value, as well. >> julia boorstin thanks very much. we are here with mike santoli and john fortt. 7-1. >> apple did a big split to get into the dow. is that where this is heading? >> they have a ways to go with a $41 million market cap. still, i think in the popular imagination, apple and netflix go together. two names have risen in the digital era as we are getting more information from phones. we are getting more movies not on dvd, but through streaming. this will make the stock a lot more accessible to mom and pop waking up to this market rally. perhaps that should be scary. >> it's definitely a retail-owned stock. 7-1 is not as aggressive as you might think. it will bring the stock price back to $100.

apple share price was lower than netflix is right now. it does seem as if the 7-1 might have been in sync with apple here. it save logistical headaches. you don't have as many partial shares. i think it's slightly more expensive to trade for institutions if it's a higher-priced stock. not when you got charged more if you didn't buy at least 100 shares of a stock. it makes sense. it's in vogue to have high-priced stocks. maybe it's slowly reversing. >> keep in mind netflix had an amazing run. best performer in the s&p this year by far. i wonder if it can continue. >> you don't want people looking at that stock close to $700 thinking i could have had it lower than $400 not that long ago. >> i'll have something when berkshire hathaway splits. up next we'll continue to follow this breaking news on boeing and netflix. we'll speak to the man behind what some are calling the

greatest hoodie ever made. the ceo of american giant and his cult hoodies will join us in a moment. ah! aflac? aflac! i thought you said this guy was the best? oh, he's a horrible stylist. gah? but he's the best at paying claims fast! really... mmhmm. paid mine in just one day. one day? yea. aaaflaaaac! in just one day, we approve and pay. one day pay, only from aflac.

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our next guest makes a

hoodie that has been dubbed by some as the greatest hoodie ever. so it's got that going for it. this is it. the company manufactures them all right here in the good old u.s. of a. as well. so that makes it neat. but it's so well made. >> so well made. and joining us now live from the iconic conference in los angeles brought to you by "inc." magazine and cnbc american giant ceo baird winthrop. baird, good to see you. first tell us on this "made in the usa" why that's so important in terms of your manufacturing process and whether it costs you more than say, having it outsourced and made abroad. >> well i think it's important because youi think customers are asking for it and i think for a long time customers have not been able to get access to high-quality american-made product without paying a really high price. and i think with the advent of e-commerce and technology you're seeing interesting economic shifts that are unlocking american made, prices that are reasonable and can reach the

mainstream consumer. so i think it's an interesting moment for american manufacturing and for e-xhert, for both those reasons. >> this makes a lot of sense but my question is how do you raise awareness about your brand beyond just the website? i mean the rules of the internet have changed. it's not just about search engine optimization and google being able to find you. are you using social? how is the message spreading? and how have your sales tracked over, say, the past year? after the farhad manjou pop. >> so that article came out about three years ago and the business has been tripling every year. so the growth has been pretty aggressive. and the way that we think about social media and marketing in general is that we believe we're sort of living in a post-amazon world now where brand building and word of mouth and authentic communication around your brand values really is paramount. more important even than traditional marketing. so we think an awful lot about how you drive that passion among your consumers and believe that one of the results of that is

they talk about you and they spread the word about you. it's a new world in that way. >> i feel like we buried the lead here. we teased it by call this the greatest hoodie ever made. what makes it so great? you have an anecdotal story about this. >> i do. my sister's boyfriend -- my sister's a millennial. her boyfriend's a millennial. he is obsessed with your hoodie. there they are in iceland. he never takes off the hoodie. and bayard he doesn't wash it. he says it's like a jacket it's so substantial that he doesn't have to wash it. can you tell him -- >> to wash if? >> yeah p. to wash it. but also how are you appealing to millennials? i cover so many consumer companies that would love this demographic that cannot reach it. >> i think there's an interesting thing happening around millennials and younger consumers in general which is they're much more conscious about the way they're directing their dollars and they really are trying to direct their dollars toward brands that they think are delivering on core val, values standing for something that matters.

that is a shift we're seeing. the core of our business proposition is making stuff in the united states and making it as high quality as we can. and we think that is striking a chord among millennials. and when that happens, they talk about it. as far as making the product, it's not that complicated, actually. we just invest a ton into great products and great material and great make and great trims, and so the result is a product that we're pretty proud of. but it's not that complicated, actually. >> how often do you recommend they wash it? >> daily. if he's in iceland. >> all right. thank you very much. i'll pass the word along. american giant ceo bayard winthrop. >> we have another news alert on an upcoming ipo. dom chu has details for us now. >> this one's a name you guys might recognize because what we have right now are headlines that freeport mcmoran, the mining giant, is going to ipo its oil and gas division. right now freeport mcmoran oil and gas intends to apply to list its class a common stock on the new york stock exchange under

the symbol fmog. that's it for right now. we'll bring you more details when we've got more guys. back over to you. >> what are we missing there, mike santoli? >> didn't they used to be separate? >> that sounds very familiar doesn't it? >> i think they must have recombined. we have to look at that. >> it's that time again. the top states for business. it's back again. >> and up next we'll get one of the first clues about the state that is taking this year's title. think you can guess it? "closing bell" back in two. >> i think i've got it. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses.

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[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. the e-class has 11 intelligent driver-assist systems. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash.

the 2016 e-class from mercedes-benz. the company announcing that ceo jim mcnerney will be replaced by their chief operating officer dennis mullenberg effective july 1st. jim mcnerney will remain boeing's chairman. he's been there ten years. ge and 3m for a while, now he's going over there. interesting. >> we've seen obviously this might have come a little earlier.

>> cnbc's annual ranking of america's top states for business. >> joining us with what it takes to clinch that number one spot and to give us a clue about this year's winner cnbc's scott cohn. scott? >> hi sara. hi, bill. this is very interesting this year. in all seriousness, we've been doing this for nine years now through booms and busts. recessions and recoveries. and this year as we said the dynamic is changing to workforce. that's going to play an important role. i think that the choice is going to be very interesting. it's going to make some people not so happy, other people happy. so we'll see. here's one more clue about the state that we will reveal right on this program tomorrow. it is part blue part red. part blue part red. the countdown all day tomorrow on cnbc. we want to hear from you with the hashtag top states and our special website topstates.cnbc.com. >> jon fortt thinks he knows. >> missouri. split during the civil war. you said a long journey begins here. that's lewis & clark.

>> i think it's illinois. a long journey begins here. route 66. began in chicago area in illinois. made its way to california. you're looking to lewis & clark, i'm looking to route 66. >> part blue, part red. >> i understand. michael jordan maybe. live from the nasdaq marketsite overlooking new york's times square. i'm simon hobbs in for melissa lee. good evening. cnbc's breaking news coverage of the two biggest stories in the after-hours session continues. we start with that 7 for 1 stock split at netflix, and later boeing's new ceo. but first, julia boorstin on netflix. you saw this coming clearly, julia. >> absolutely, simon. the 7 for 1 stock split will be effective in the form of a dividend payable on july 14th to shareholders who have owned the stock as of july 7th. this news of course sending netflix shares trading