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♪ move yourself you always live your life ♪ ♪ never thinking of the future ♪ good monday morning. carl is out today. kelly evans, great to have you. >> morning. and what a morning. >> john, good morning to you. we have to start with the markets which are expectedly sliding. they are still down but still well off the lows. right now the dow is down by about 188 points. s&p down by 20. nasdaq down by 56. one-point losses across-the-board. talks between greece and lenders broke down repeatedly over the weekend. greek banks are closed until thursday ahead of the sunday referendum on whether to accept

eurozone demands for pension and spending cuts. with more to michelle caruso cabrera live in athens. michelle? >> reporter: there's two events we're waiting to see today. first a protest in about an hour and a half. there's two, one today, one tomorrow. the one today are those who are against the agreement. they want people to vote no in the referendum on sunday that you referenced. tomorrow there will be a protest and those people will want the greek population to vote yes for the referendum and we will inevitably compare the sizes of the two crowds to see if they can give us any suggestion as to how the vote is going to go. the other event we're waiting today is alexis tsipras and what he says. if he continues to take the hard line, he has come out and told the greek people that he does not think they should accept the agreement even though he has also said if they do say yes to the agreement they will implement it which has caused consternation in europe particularly with all the

creditors, the most important creditor, angela merkel, the leader of germany, of course. she spoke about an hour ago. she held a big news conference. she met with the leaders of the party in germany. the closing of the banks over the weekend, the capital controls, et cetera, that happened in greece. she took a hard line. listen, the ball is in greece's court. we don't want to necessarily hold another summit, an emergency summit, right away until we know they're ready to come to the table. we want to be careful about the messages that we are sending. also happening here today, the former prime minister of the country was in power before alexis tsipras says he wants to do an open debate, a nationally televised debate between he and the prime minister of the country, wanting people to vote yes. tsipras wants them to vote no. there's an emergency meeting today of the chamber of commerce of the country to figure out what to do because so many businesses can no longer transact business.

people can only take out 60 euros a day if there's any in the atms at all. imagine if you're running a business. everything is closed leading to a cash crunch. the vote on what is about the agreement but what is being billed as a decision as to whether or not the greeks want to stay in the euro. kayla, back to you. >> michelle caruso cabrera reporting on the ground in athen athe athens. our thanks to you. for more on greece, let's bring in the chief investment officer at janne montgomery scott. this greek drama has been going on five years at this point. now we have this referendum sunday. merkel said she'd be happy to talk after the referendum. it's tomorrow the default would

happen. how do the markets play out over the course of this week? >> well, i think we're seeing how the markets are likely to play out. this comes at a time the u.s. equity market was already grinding sideways here given the fact we have full valuations and sort of cross garnered with economic data and fed policy. this already raises anxiety. with the news we have here today, i don't think it's enough to cause a severe correction in equity prices. it will nonetheless continue to exert pressure on equity prices as the uncertainty with regard to what this is ultimately going to result in remains unsolved. i think what we're going to see hopefully is some due to the market riot effort by policymakers to finally put a period at the end of this sentence one way or the other for greece and as a consequence subsequent, equities will remain a compelling choice particularly european equities. >> your point is well taken,

mark. if you had bought the debts over the course of this saga the s&p was at 1,200 in 2011 when these conversations about greece's financial stability first began and we see where the s&p is now. people like jeff stout saying maybe the expansion phase is over. we have a jobs number coming out. the fed could hike rates later on this year. that signs do you see telling you that if you bought the market, now if you bought equities now, that you'd be winning? >> well, i think certainly you mentioned earlier that what's taken place with regard to the last three or four years in the european marketplace with regard to the risk of an event is exceedingly limited at this juncture. most of the money are the bonds that's been issued by greece are in central bank hands not private investors. as a consequence this is not going to lead to a lehman moment like some suspected a couple years ago. what it means, though, for

equities here in the u.s. we're facing earnings season which is likely to be, again, year over year profit growth with regard to fed policy means equities we think will provide a decent rate of return compounded by the fact that profit growth, we think, will still be mopositive albeit modest and should remain more aggressive than bonds or cash. we continue to believe that better returns will be realized from non-u.s. equity markets, namely europe, particularly europe, subsequent to the sell-off as a result of the greek situation and japanese equities. so we still keep on balance risk assets will be treated much more favorably by investors than certainly alternative asset classes. >> i want to call your attention to the fact u.s. equities are sitting at their session lows down under 200 points here. if anything the reaction to equity markets have has mon sensitive across the bond

markets here. interesting to see the nasdaq down 1.25. what does that say to people who have been existing in technology names or momentum plays about how this plays out for the rest of the week and the summer for greece? >> i think you'll see pressure on those areas that have done the best and are selling at lofty valuations. the first thing to get purged out after portfolio is that you have hefty gains in. some of the momentum names if biotech and some of the social media stocks are most vulnerable to that kind of pressure and as a consequence will decline far more than the market at-large, particularly those names that we're leaning into, names like the aristocrats, the high dividend pairs that have really lagged on the year-to-date basis. >> so, mark, looking at next week after we get this referendum vote, do you expect those stocks to react one way or the other to what we see coming out of the equity vote? >> i mean, i do. i think obviously if the referendum is for greece to step out of the euro, however

sloppily or otherwise that occurs, frankly i think ultimately that will be better for the euro and the economy that one lurking uncertainty is removed. on the other hand if they come to a solution even if it's a kick the can down the road one in which they come back after six months or nine months from now, i think you'll see the uncertainty lifted and european equities rally. the market will begin to sniff this out before it comes to july 6. as a consequence i think you need to be using this opportunity to step into european equities while they're down 3%, 4%, 5%, 6%. i don't think this is a cause for a more severe correction in equity markets. >> we'll certainly know the answer to that, mark, in a few days. mark luschini, we appreciate your time this morning. >> thank you. coming up, according to a new study, you should mention funded by yelp, manipulating search results that's, quote, intentionally worse for consumers. a closer look at some of those

allegations. plus, china could be close to suspending all ipos across the country. we'll tell you why. and let's get one more check on the markets. near session lows right now trading at, let's see, the dow down about 201, 202 points. the nasdaq down 1.25. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪

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let's get back to the markets. we're sealing the selling accelerating in the past few minutes.

take a look at the dow down 202 points just about the session lows. only one name on the dow 30 in the green and that is pfizer. those taking it on the chin are the u.s. financials. visa, the underperformer, down about 2.3%. >> we'll keep our eye on that. joining us is john steinberg. hi, john. first off according to bloomburg apple is starting production of the iphone with the feature called force touch which we've become familiar with the apple watch, senses how hard people are pushing down on a screen. manufacturing is set to ramp up as early as next month and this comes as citi is increasing its iphone sales estimates for the current quarter. the firm calling for 49 million iphone 6 units sold and shares of apple so far this morning. down just slightly. john, not exactly a surprise. we've seen force touch in the

mac book as well as the apple watch. the question is, how does it get used in a phone, and how excited will consumers be about it? >> i have the mac book with force touch and i went on last night trying to figure out -- looking up what you can do with force touch, and there's not much at all. it's like a right click. apple has not had the left mouse button. i don't think it to be much of a game changer. with the "s" models faster, bigger, stronger, whatever. it's a modest upgrade. >> if you use the watch and you use the phone and have the same kinds of functions in the mac book now isn't that better for apple? >> i don't think it's that big of a deal. the big thing is citi raised estimates. that has everybody excited this morning. apple in the last "s" model put in the fingerprint reader which was not much of anything either. it's an off cycle upgrade. >> not much of anything? >> it's not as dramatic as a larger phone. we're hearing this summer we might get the ipad pro which would be the 12-inch model, a game changing thing, more

penetration into the enterprise. to me that's more exciting than the force touch. john, i know you couldn't possibly be excited about the force touch. it's not that big of a deal. >> there are a number of things they could fix interface wise. >> they have touted it as revolutionary, akin to the pinch to zoom which apple started, apple developed, and that was adopted more broadly across not only apple but other companies' devices, too. do you think it's something that could trigger other companies to respond to something similar? >> force touch was that failed blackberry that had the first -- remember the click screen the blackberry came out with in their last-ditch hope to survive a little bit. i don't think it will be as big of a deal asp pinch to zoom. apple has simplified the os. the two-screen mode on the ipad they're going to overcomplicated interface which is the last thing we need in ios.

>> i could see that. next up, chinese regulators are considering suspending ipos to stabilize the country's struggling markets. china's regulatory commission will meet today with major brokerages after they cut interest rates over the weekend. the shanghai composite index dropped over 3% today. john, what kind of a signal do you think this sends if they do suspend ipos? we have some significant chinese companies' ipos here now. how much will this matter? >> when you mess with markets, they shut down all ipos in 2013. it gave them a backlog. they were up to 40 ipos a month. there was a glut of supply. the only way to back them out of the market manipulation is to shut down ipos. we'll talk about google in a bit and government intervention in the u.s. this is why you have to let the free market play out but then again, look, we play with our

interest rates. they play with their ipo market. >> it says to everybody looking at the volatility in the market and some decisions on ipos is a reminder we're talking about an underdeveloped financial economy and there has to be more done in china's direction to open their markets, as you said, but no indication it will happen overnight. >> and ultimately what will happen here again they're going to create another backlog they'll have to let off steam as well, too. i don't see how this solves it. the wisdom there aren't ipos, more money will flood in creating more of a bubble in those existing tech stocks. so it's a question of taking the pain now or taking the pain later. it seems you should take the pain when it's there as opposed to putting it off. >> i think there are a number of companies, john, big chinese companies, that are growing that are probably about to go public that maybe are a little bit relieved because they want to have that dual class structure that chinese regulators frown upon. if you shut off ipos, maybe that gives them cover in another

jurisdiction they can have the structure that looks unpatriotic in the chinese market but would be better received somewhere else. >> interesting. i wonder, also, what's the impact of kind of the liquidity squeeze further? all this talk already about how little liquidity there is in some of the names, if china shuts off ipos there, does that have a ripple effect? >> it's at odds with other moves. going back to the communication issue. if you decide for the first time since the crisis to coordinate a 25-point basis cut across the reserve in lending rates while at the same time these reports about clamping down on ipos, people in the stock market aren't going to know which way to turn. on the one hand giving liquidity and taking it away. >> their market is down 20% in the past two weeks and the government came out and said this is to clamp down on a bubble. they're clamping down on a bubble but at the same time they're going to rebubble it back up by stopping the ipos. it seems they're going out of both sides of their mouth. >> the shanghai composite swung 10%. it was up after that cut.

it was down about 8% at one point. the vix popped to its highest level in 18 years or something like that. if you just looked at the close, you wouldn't even realize just how wild the swings have gotten. >> i was just about to look at that before i went to sleep last night. i'm glad you did. a research paper shows google is manipulating its search results in a way that is, quote, intentionally worse for consumers. the paper comes from a former ftc adviser and an economist with harvard business school. it goes on to say, quote, google appears to be strategically deploying universal search in a way that degrades the product as to slow and exclude challengers to its dominant search paradigm. tim wu, who wrote this, previously defended google but at the same time this is funded by yelp which has been attacking google all along. looking at these results it looks like the results stripped out google's kind of extra google plus secret sauce were a lot better, i mean, more

reviews. if you're looking for, say, a pediatrician in new york. is this a smoking gun for google to show they really are manipulating search results in a way that doesn't benefit? >> i think manipulation is the wrong word. google is a company allowed to do what it needs to do to survive and grow. mobile has been a tremendously negative force on google as people use more apps and built-in type functions. microsoft is not allowed to bundle the browser. that was the big supreme court case that basically destroyed that company. they never recovered from. now every single operating system on earth has a browser built into it. now google isn't allowed to do in mobile what it needs to do to grow and survive? this is run amuck in this country. >> maybe they're allowed to do whatever it takes to survive and grow, but in jurisdictions like europe where they're vowed to have monopoly power to bundle in google results could get them into trouble.

>> what about europe? >> when bloomberg puts new bond functioning into the bloomberg terminal to make it more sticky, is that monopoly behavior? are you not allowed to improve your product? local is more and more what people want to do in mobile. google has mobile services. what's the difference between growth and progress with your core progress? i don't think it's a monopoly behavior. apple has a far larger share of search now than android does, right? that is not controlled by google. apple can swap google out. i think they have to be allowed to do things. >> i would love to know the motive. you mentioned this is funded by yelp. we got the findings from the 2012 ftc review. they did use the word skew. but yelp is a company that is an open secret. shares are down 3% today. when i talk to hedge fund guys playing this, is this yelp trying to avoid selling itself to google because they are such famed adversaries. what does this say about the future of yelp and where it will

land? >> how about the future of any company? i'm at the same level yelp is. traffic from facebook, traffic from twitter, traffic from google, apple news. when we go and fight with them, when we say to them, look, you have your business. we have our business. this is what we're going to do. and martin clark, my boss, says, look, you do what you want to do. we don't cry to the government and say antitrust. we just fight with them, right? it's the world you live in. >> because we know europe will take a much tougher stance, is this a risk to google more so than the last time around focusing on the shopping? >> i think google is in a very tough spot. google needs to do acquisitions and can't do anything without being afraid of the government. europe more so. here as well. the government is putting google in a position that they cannot compete. >> this strikes on google's core argument that we're making it better by putting our own results in there. now they're put in a position of maybe needing to explain this certainly. jon, thanks so much, as always,

for your insights. we did reach out to google for comment and have not heard back yet. coming up next the selling continues here on wall street after fears over a greek euro exit dominating this morning's headlines. during times like these the european close has a massive impact on markets here. the close and what it means for u.s. investors up next on "squawk alley." [ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪ meet chris jackie joe. minor damage, or major disaster, when you need us most, we're there. state farm. we're a force of nature, too. ♪

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a ton of action as we approach the close. a lot of red on the map. >> a deeper color of red. we came back slightly from where we were. wall street didn't fall out of bed. as you can see there are heavy losses. the greeks woke up to find their banks were closed basically for the week until they go through the referendum of sunday. big question what will the referendum say? it got riskier to hold eurozone

banks in this environment for all the reasons, the contagion reasons, or direct stment in the case of deutsche bank, $2 billion at risk according to bank of america, merrill lynch. i think it's interesting when you see the eurozone players like this in negative territory. that's kind of a contagion, broader europe problem clearly they're indicating. extending those losses. this is obviously portugal here down 10%. those other italian banks further into negative territory. the bond markets have moved down on the periphery. the yields are higher. it's no higher than a couple of weeks ago in all fairness. still extended. and finally a look at spain, some of the big banking giants also in negative territory. there you go, down 6%, one of the biggest players within europe. clearly there's a standoff. it's interesting to hear the noises coming from the rest of europe at the moment. jean-claude juncker said how the

greek prime minister didn't warn him he was going to call the referendum over the week. the question may change. of course the greek prime minister is putting to them a question that is probably old. it's not the last offer they get from the eurozone. interesting that juncker would say there's the possibility of debt restructuring to talk about in the fall. angela merkel has also broken her silence. this woman, if anyone knows her place in history, of course, and will she be coming up on her tenth anniversary, will she be defined by the euro or the fall of a fellow european government as a result of the hard line she may have taken. she was maintaining her own hard stunts praising her own finance minister schaeuble who some say has been myopic. clearly the latest from greece,

some bank openings thursday. credit cards and debit cards aren't working. in an environment where you already have 25% unemployment, 50% youth unemployment, that will be a tough week. >> and, simon, regulators have indicated that the stock market is probably going to track the banks when it comes to reopening. there are people trading in the greketf where the banks will open for trading. >> more like trades at the moment. there are some distressed investors who have gone in there. the overriding question you need the banks to be solvent. greece isn't negotiating. that's very problematic. >> sure. simon, thank you. >> all right, greece is not the only thing on the minds of investors this morning. puerto rico is in major financial trouble warning it may not be able to pay its more than $72 billion in public debt.

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good morning, everyone. i'm sue herera and here is your cnbc news update. france says two uber managers have been taken into custody for questioning over elicit activity linked to the low cost service despite a violence marred strike

they say they will keep operating until a ruling by the top court. laying flowers at the tunisian beach. 38 people were killed. the 24-year-old gunman was later killed as well. tunisia saying multiple arrests have been made on suspicion. those people may have provided with weapons and logistical support. facebook opening its first sales office in africa located in johannesburg which will serve its business across the continent. facebook's active user population has grown 20% to 120 million people in the past year. and the supreme court upholding the use of a controversial drug that has been located in several botched executions. by a 5-4 vote the court ruled the sedative can be used without being considered cruel and unusual punishment. let's get back to "squawk

alley." the markets rattled but not completely panicked as greece struggles. chief global investment strategist, good morning to you. we're sitting at the lows of the session down 206 points. are you advocating people buy this dip? >> i think right now it depends on what will happen with greece. this is a measured response. the futures are down where they opened up today. 1% is not a particularly large correction. in europe a reversal of the optimism that people left with on friday when they thought there would be a deal. >> sure. and what about the way we're seeing a flight to safety play out here? gold is up. the ten-year yield was falling. are these moves just going to last for a temporary period or are we now resetting trading ranges? >> i think they're temporary. this doesn't mean we won't go down and test the bottom of the

range. we're still only 2% or 3% off the recent highs. gold as you point out is up but not much. what's happening is a little bit of a recalibration but the reality is so far people are taking a measured stance on greece. this is obviously a monkey wrench in the situation but it doesn't necessarily lead to a greek exit and even in the event it does there is a belief that there are tools available to europe, particularly the central bank, that will mitigate the contagion risk versus what might have happened three or four years ago. >> well, russ, maybe that's one reason we're seeing the vix in 2017. in 2011 the fear was very real. it was at 42, 43. volatility with china in bear territory and everything happening with puerto rico which i know we'll talk about soon. how do you play volatility right now? >> well, this is a good point. i think it goes to -- we've had

volatility unusually low. part of what is going on you have greece and a bear market in china. the other reality, closer to the date of a fed liftoff, you no longer will get this blanket, this blanket suppressing volatility which we've seen the past four or five years. so i think volatility is on the rise. investors want to take that into consideration. one practical way to think about this is momentum. very well is an investment style the last two years. momentum works best in low volatility regime. if volatility is rising, investors may want to think about balancing that out, that exposure with more value. >> and, russ, that's what i'm wondering. is now the time to do that? we've got all these little headlines kind of drip, drip, drip, whether it's china, whether it's greece, there are other countries, italy, portugal, surely watching this at the same time. at what point are you advising investors to go ahead and start

seeking some safety? is that now? >> i think it is now but the question is what's safety? for example, one of the trends you've seen the last few months is people often think about, well, i'll buy low beta stocks for safety. low beta stocks are also high dividend payers and those are the stocks hurt the worst as we've seen rates rise since the spring. safety may be some place different than in the past. thinking about companies that will be better on recovery with the economy, companies that are more resilient to rising rates which is the other issue we're going to contend with the back half of the year. it may not be greece. it may not be china. it may be the adjustment that a company at liftoff. >> russ, i'm glad you brought it up. traders down here are talking about a story involving you guys, black rock may be allowing for funds to borrow from one another or preparing for a big exodus from bond funds. can you comment on those kinds of fears within the company and

what kind of measures you're taking to guarantee financial stability? >> well, i surely can't comment on the specifics right now. what i can say is obviously liquidity in the bond market is an issue managers are thinking about and it's something that you have to consider managing differently than you might have four or five years ago. maybe ten years ago when it was a very different bond market. >> on that same point, russ, as much as people say, look, the greek thing has been with us four or five years, will the fed rate hike for five to six to seven years. how prepared should people be for this finally happening? why do you think it's such a risk to the markets if we've been discussing this scenario for years and years and years? >> i think to calibrate what we need by risk. i don't think it will be the end of the world, it will be highly unusual for the feds in the bear market. going back to the conversation about volatility. again, a low volatility regime.

i think what will happen with the fed liftoff is not necessarily a major correction but this is going to represent a shift in the environment and they're going to go back to the environment where volatility is probably close to that average, where 17 on the vix is not a bad day. that's an artifact of the last few years. a bad day in the market used to be the vix at 30. >> right. russ, it's a point. we take it. thank you for joining us this morning. >> all right. thanks again. >> all right. greek fears still dominate the headline, greek is nearing a $1.8 billion default while puerto rico now says it may miss payments on $72 billion in debt. pretty big financial troubles of its own. back at hq with the details, kate? >> reporter: governor padilla this morning, shaking the markets with the bonds hitting lows among widespread fears of a debt default there as well. after a commissioned economic study detailed puerto rico's

deplorable financial state these days asserting its cash balances can evaporate in the face of days. governor garcia padilla told "the new york times" his island has been in a debt spiral economically speaking and $72 billion in debts are not payable. this is not politics in a surprisingly frank interview, this is math. the governor will elaborate this evening at 5:00. but meanwhile there's widespread speculation of default for the commonwealth. it doesn't have the openings of a municipal bankruptcy filing under chapter nine like with cities like detroit. puerto rico in recent years has imposed higher taxes, pension reforms and spending trends in an effort to balance out its long beleaguered books. revenue has undershot government targets according to this economic study leading the commonwealth with the highest debt-to-gdp ratio by a very long mile.

you look at the chart, it's just astonishing. now the governor is asking for some assistance from the island's creditors to stave off a potential default. among that group a wide swath of municipal bond as well as a powerful group of hedge funds among many others. some are optimistic about the island's long-term future. john paulson has described puerto rico as perhaps the next singapore whether they'll make a deal here, guys, remains unseen. we'll be watching closely, kelly. >> kate, we. thank you so much. again, the timing between this and what's happening in greece is certainly catching -- >> uncanny, right? >> our kate kelly back at headquarters. take a look at markets. european markets are closed. perhaps that selling pressure migrating here. the dow is now down 218 points. 1.2% declines. the s&p down 25%. the nasdaq down 72%, almost 1.5%. and we have to talk about the impact on bonds, too.

rick santelli, what are you seeing across that space? >> well, what i see actually is trying to get to the original issue that created the problem of greece. maybe we have to go back to two dates, may 29, june 1, 2005. want to know why? tune in after the break. 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? here at td ameritrade, they work wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday.

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at the top of the hour markets on edge over the situation in greece. we are live in athens today with the latest and our experts give

their game plans for dealing with the uncertainty. plus, is it clearance time at macy's? down grading to a sell today. joins us in our call of the day plus a former super bowl champ scoring big off the field. meet the mortgage market's $8 billion man in about 15 minutes. john? >> sounds good, scott. we'll be tuning in. rick? >> reporter: thanks, john. you know, back in may 2005 and june 1, the dutch and the french, the referendum that would have ratified an eu constitution. we have the treaty at lisbon we can modify it. in the end the two failed referendums could be in large part a reason why we've ended up with the greek tragedy that we have today. it's very easy for us as

business channel to look at the markets. what gives a small group of men in a political class the latitude to take over the population of sovereign countries economically? now it might sound rhetorical but it isn't. did they accept loans? yes. who are the they i'm referring to? did any of the populations ratified a constitution? they did not. how many of you paid close attention to the recent supreme court ruling or obamacare with the fact not one republican voted for it or the federal reserve going into the gray. at the beginning of the crisis. so what is the lesson to be learned here? $72 billion with puerto rico. $35 trillion extra debt since '07 and '08. how many of you out there voted to put your children at risk for

that? i don't see a lot of hands going up. now i understand as populations they give much of the latitude of governing to the political class. the question here looms large. do they want to do extraordinary things to many with so few voices in the know as to the direction of policy. this is a question of a time line for the entire globe, even china, yes, even china, are they democratic? no. but the people that are making the rules for the many in a country that has much corruption to social unrest that can come from all of the examples i've given you to greece and it's been quite orderly. but in the end people have a right to truth to power. and, in my opinion, that is truly something that should be discussed that's been hugely overlooked.

i know we like to shuffle papers and that's become the new economy much more than widgets but in the end things like large debt fall ultimately to the backs of those kayla, back to you. >> markets are solidly in negative territory. the dow down 210 points. its worse drop in more than two months. now negative for the year. s&p and the nasdaq are down for the fourth day in a row. they're having the biggest drop they've seen since the end of may. of course investors on edge over the situation in greece. we will get you more on the markets when "squawk alley" returns.

greece continuing to weigh on the stock market. major averages are down better than 1%. nasdaq better than 1 1/3 percent. peter, good monday morning. >> it's a great monday morning. >> what do you think is driving the market action? obviously there's greece, puerto rico, china, but the sense we haven't seen a pullback in the u.s. in quite some time. >> we've almost been waiting for this. generally when the market gets topee, which i felt it was, you need a catalyst to get it going. we're only down 200 points. if it was a true cataclysm like some people have been saying this market would be down a lot

more. >> when you think about what's happening to the financials specifically, looking at the european financials, across the board down 4%, 5%. there does seem to be some knee jerk reaction to the contagion. jpmorgan, goldman, visa pulling the averages down here. do you think that's a knee jerk reaction or a fear? >> i think more of a fear than a knee-jerk reaction. these banking companies are very well situated for contingencies like this. i think there will be some effect on them but i think it's a nonevent. that's what people have to keep in mind. it's not a short term -- people look at things very short term. if you look at the banking sector as long term, i wouldn't worry about this. as a matter of fact, i think it would be a buying opportunity. >> we opened this morning well off the lows in the futures market and there was a sense of calm.

it has not been a great down here. any other reason guys on the floor are saying why? >> a lot of it is computer generated. if there's a negative reaction or negative commentary the computer programs will take note and sell off based on those comments. my clients right now are actually laying themselves for a fairly -- trying to get back into the market. they think there's an opportunity here but they're short-term traders, too. if you're looking at the long term, maybe we could wait another week or so. >> so what would concern you? after sunday if we see a negative reaction to whatever does come out of greece? >> if it comes out negative and they decide the greeks will leave the euro or will be tossed out, i don't know how it works, i think there will be negative

reaction to that monday. it's not a bad thing, taking the bad wood out of the market. the correction china is in right now, i think that we're in a pullback because of bad news. >> what scares people is how unpredictable it may be. this is the closest we've come to having a member country actually on the brink of leaving. >> right. no offense to the greeks. if you really look at what they're adding to the eurozone and what they're taking out of the eurozone, i don't think the euro is really going to be six months or a year from now that big of a deal from them anymore. it's a strong union. that's their weakest link. if you get rid of your weakest link, it only makes you stronger. i think there's a positive if that happens.

>> when we come back, some amazing video of the explosion of a spacex rocket over the weekend. we go behind what went wrong.

welcome back. a blow for spacex after an explosion in an attempt to bring supplies to the space station. hi, jane. >> reporter: hi. they still don't know the cause and are using special software to recover data from the last mill i -- milliseconds. on a day spacex hoped to recover the first stage on a floating landing pad. now it has been suspended especially tough as spacex was certified for lucrative military launches. wanted to bid on those. for nasa it's not their first rodeo. it's the loss of another private contractor's ability to get supplies to the space station after this followed by problems with russian supply launches. >> we expected we would lose some vehicles.

i didn't think we'd lose them all in a one-year time frame but we have. >> we haven't pinpointed exactly what happened yet. we're certainly in an extraordinary position to know what happened, to find what happened, to fix what happened and to get back to flight given the fact the majority and its xoens are so we don't have to go through legal and contract negotiations and discussions to get components. we own it all. i'm sure we'll find it rapidly. >> reporter: now the russians are sending up a supply mission friday. they also remain our only way of sending astronauts to the space station at a cost of $70 million per receipt. boeing and spacex are developing our own crew carriers. that will be some time down the road. in fact yesterday a docking system for the carriers was destroyed in the launch. nasa has a backup still on the ground. >> jane wells, thanks for the update on that story.

a blow to nasa and spacex. getting a check on the markets, guys, before we go, still in red territory. flight to safety trade has been very slight. gold rising only slightly so we'll continue to watch that situation. kelly, great to have you. let's send it over to "halftime" and scott wapner. welcome to the "halftime show." joe, josh brown and john and pete najerian. we will get to michelle in a moment. our game plan looks like this. falling star. one analyst says it's time to check out of macy's. we'll speak to him live in a hotly debated call of the day. take it to the house, how a former super bowl champ is scoring big in the mortgage market and you will meet the $8 billion man live. we begin with markets