"closing bell" picks up continuing cover of the market sell-off right now. hi everybody. welcome to the "closing bell." i'm kelly evans. a nearly 300 point sell-off at the new york stock exchange. >> i'm bill griffeth. this is the last hour of trading. we will all look carefully to see whether stocks can come back from what has been an ugly sell-off today. greece moving closer to default. shaking the global markets. the dow now negative for the year.

>> china soling off gone last night despite an interest rate cut prior to the market open. john mulleden will tell us yes is bullish on chinese stocks. >> then there are new problems for puerto rico. the governor saying the island is near a death spiral. i thought that was obamacare. >> a lot to get to in this final hour of trade. we start with the crisis in greece. our chief international correspondent michelle caruso-cabrera live in athens where a vote no demonstration is under way right now. >> right. vote no to the referendum that will occur this sunday in athens. a surprise referendum announced over the weekend by the country's prime minister alexis

tsipras. we heard chants throughout the evening that's greek for no. tomorrow is the yes rally. regardless, before we know the answer to the question this coming sunday the announcement by alexis tsipras set off a whole series of what were likely unintended consequences on his part. he went on television late friday night and announced he wanted to hold this referendum because he didn't like the creditors' proposal. he thought it was blackmail. he wanted people to vote no but if you vote yes, i'll do it. well that opened up a whole can of worms. people realize this is a possibility we might lead the euro. that led to runs on the bank in

the middle of the night. lines at atms. the banks could not open this morning. now we are at this standoff between greece and its creditors. everybody waiting to see the outcome of this referendum. the referendum is about voting on the program, but the rest of europe is telling greece you are voting on whether or not you want to stay in the euro. we asked people tonight, if you vote no is it okay to leave the euro? a lot say absolutely yes. so that is something we haven't heard before. we'll talk to people tomorrow night after the yes rally and see what they say. back to you. >> it's striking behind you, the crowd is large but seems relatively tame. we remember the images from greece several years ago and the rise of the golden dawn problem trying to seize on the vulnerability the average greeks felt. are people largely taking this in stride? >> taking in stride i wouldn't say that.

but no violence is spot on. in the past we have seen tear gas already. the anarchists beating up people. we haven't seen that. it's been incredibly peaceful. people out with strollers with children walking their dogs et cetera. far more people than we've seen in the past. when i first started to come to greece, we never would have done a live show in the square because we would have been afraid of getting beaten up. this is different. >> a long day for you in the first of many we suspect. >> stay safe. i was concerned when i heard she would be down there in the arena in the thick of things. >> susan fulton ben willis and rick santelli in chicago. ben willis what do you make of today's market action and what are you expecting this next hour here? >> i would like to put more emphasis on what happened in china than what happened in

greece. greece is a concern. more a point of contagion for the rest of the euro zone starting with the banking sector. coming in this morning, there is a great trade to buy the opening. i talked with jim cramer before we got started. he wasn't sure. that trade petered out early on and faded. my concern going into the bell if we hold 2068 on the s&p we may see buying opportunity to take a shot because we have been rangebound so long we are range bound. today could be one of those days that breaks us out of that range. >> how are you playing all of this uncertainty coming out of greece and the euro zone? >> greece is not a financial event. greece is a media event. greece is an itty bitty tiny country having a temper tantrum. we do what we've done. greece is not important to us. >> if greece leaves the euro zone, it will be significant with regard to the viability of

the monetary project. do you think it has political complications? >> it may have political complications, but this has gone on so long i'm quite sure that both the central bank and the euro zone and the major players in the euro zone have some strategies. there's a reason why the euro went up against the dollar this week, today. europe does not believe this is going to reversely impact them. it's going to impact greece dramatically. that is very sad. it's not going to impact the euro zone. >> rick when i checked the markets last night i heard about the rate cut in china. china was up briefly. then it fell out of bed. the euro with all that was going on in greece was falling. treasury yields were going down but things softened a bit today. we are back to $1.12 on the

euro. we are back to higher levels on treasury yields right now. what do you make of today's action here? >> intraday volatility, we all know markets don't trade like they used to. participants are not the same participants we are used to. high frequency trade, algorithmic trade. the euros settle friday 111.67. currently trading around 1.1250. close to close, only thing that truly matters didn't move that much if we consider our comments about what greece means, it isn't about the media and it most likely isn't about the financial size of greece but it is about an experiment. that famous line in "godfather," i want to get out, but they keep pulling me back. we haven't gone through five years of a little itty bitty

country like that because of the balance sheet. this is about the grand experiment. if they have gone through such great lengths to keep greece in is meaningful from a political experiment standpoint. as far as interest rates, a week ago friday we closed tens at 3.75. we sit at 2.33 with the dow down 300, s&p unchanged and nasdaq within shooting distance of unchanged. i think china was the big story and much of the equity markets from u.s. to europe could be explained from a global economic standpoint with trade. >> would you be buying tech stocks financials, airlines some of the areas hit hardest today? >> health care. >> only health care so you wouldn't be exposed to more cyclical parts of the market? >> not right now, no. >> because you are worried about

growth? >> we are a little concerned about interest rates. health care is where we see opportunity for a run. and we underweighted health care and need to bring it back up. >> ben what are you watching? you said 2068 might be important. fundamentally, what are you waiting to happen? >> fundamentals are based on china, not greece as rick said clearly. i would love to hear more about why the 10-yore yield spiked above 2.40 early in the trading day. it's where we settled. i'm looking right now to see if there is any buy the dip mentality. we are not going to low that till the last five minutes of trading. i'll be concerned how we go into tomorrow if this does not break

the range we have been rangebound and the correction we've all been hoping for. >> thank you all for now. good to see you this afternoon. dow is down almost 300 points. financial stocks are getting hit. that is in large part of what is happening in greece. bob pisani taking a closer look. >> greece and puerto rico playing out on the floor of the new york stock exchange. greece first. look at some of these financial stocks. goldman down 2.5% jpmorgan down 2.25. look at these insurers. prudential down 3% on heavy volume. you have a flight to quality to u.s. bonds that reduces bond yields. insurance companies are dependent on bond yields. they need them higher to pay out their obligations. when yields go down insurance stocks go under pressure.

look at deutsche bank down 6%. there is ing here on the left down 5%. royal bank of scotland down 3%. focus on that top quadrant. national bank of greece. greece is closed but the biggest bank trades here on the floor and it's down 25% below $1. this stock was $40 a couple of years ago. this is an historic low, below $1. 50 million shares traded on this. normally 10 million. puerto rico. look at bond insurers when down here. mbia and a short guarantee at the top there. mbia down 10%. each have $4 billion exposure to puerto rico. they were downgraded by a couple of trading houses. the other thing is risk off here. there is a general risk off

trade in puerto rico. down 13% on heavy volume. almost 3 million shares. a lot of activity on the floor reflecting the concern in the two big stories of the day. back to you. >> great tour of the floor. by the way not everything is trading lower today. the utilities. >> that's a point. >> are up right now with those lower interest rates. there is something of a safe haven played as well today. >> tells you about what's going on down here. 45 minutes to go in the situation. dow off 280 points today. russell down more than 2%. s&p 500 broadly down 35%. nasdaq, underperformer down 2% or 104 points. >> stocks in china officially being dragged into bear market territory with a 20% plus decline in the shanghai index. despite that surprise interest rate cut over the weekend by the chinese government. when we come back john malden will join us to tell if china's plunge is creating a good buying opportunity. >> the ceo of dupont will be

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welcome back. a quick look at markets here. we see the dow down 303 points with 45 minutes to go. we are looking to close out the second quarter on a decidedly weak note. >> a lot of the chatter early in the day was whether or not we would see buying of the dips this afternoon. especially after the european markets closed at 11:30 a.m. eastern time. if anything it's going the other direction. we are down 300 points. there are the dow 30. nobody is positive right now, clearly. >> dupont vaulting over visa to be the single biggest underperformer down 2.8%. people looking at those as perhaps evidence of global growth jitters. hoping a weekend rate cut would avert a stock tumble today. that didn't work out. markets did rise in response 2%. then took a dive. shanghai composite down 7% in that session. closing down about 3.5%.

"a great leap forward" your new book on china. great to see you. >> good to be back. >> what do you make of what's going on? we are all focusing on greece because that's where the drama is but there is a tremendous amount in china right now. >> 20 cities bigger than greece in china. there are two dynamics in china. one is the larger. china is moving from where they were in 1965 after the first great leap forward which was a disaster. they are trying to become a developed society. they are in stage three of the famous plan. to go to stage four you have to gao from top down centralized economy to decentralized country. that is wrenching. people were making profits. what ji is doing, he is the most

revolutionary figure in china, his corruption charges are telling people you will get in line and we are going to have to open this process up and make it more bottoms-up. >> even men's suit retailers give off the appearance you are up to no good. >> right. what we are seeing are two things. all the index funds are beginning to add china to their market. that is a huge amount hundreds of billions if not trillions of dollars that will have to buy everything that moves in china. if it don't move they'll still buy it. then the second thing is you are having a growing middle class that is just aggressively something we've never seen in the world this fast. moving into the stock market. they buy. the chinese invest different than europeans. europeans are generally value

players. momentum is an acceptable model, but not the driver. in china, they are momentum drive players. when it's going up they buy and buy more of it and buy more of it. >> that's what's happened. you had this parabolic move. >> it doesn't make sense from a western standpoint because it's value. we are seeing value. now that it's going down it could go again. long term china is going to be a place you want to be. i think we really have to allow ji to come in and change this economy. >> that is an investment. we are talking about a trade right now. are you ready to catch this falling knife yet? >> i would not start taking a trade. this is one that is really you just let it fall. when it turns and you get a reasonable turn and start seeing that pile back in pile back in. this is a trader's market. classic momentum. that's the way the chinese are

going to play it. you don't want to fight them. >> what about the people looking at sell-offs in the cyclical part of the u.s. market today? people pointing back to china saying maybe global growth isn't there or trade worries, concern about the trade growth or expert growth won't be there putting the stock market story aside, do you think there is the underpinning for growth for cyclical parts of this market here in terms of the global economy? >> not for commodities. that's not where china is going to be emphasizing. the rest of the world may be a commodity play here and there. commodities are going to back off in general. global growth 3% 4% over the next ten years is a safe bet. china is not going to grow 7% 8%, 9% if we get 3% 4%, please god, that would be awesome for a country as big as china to grow that well. that is not what they are planning or what they will tell us. our book is to say, we polled

15 20 experts in the world and said what is happening in china? >> a great leap forward has a question mark at the end of the title. >> we are putting a question mark. what ji is attempting is as wrenching as what happened to mao. we have to hope they succeed. >> thanks for joining us. >> thanks for having me. >> we've got a news alert on former dallas fed president richard fischer. >> frequent guest on this network. the former dallas fed president going to join barclays as a senior advisor. richard fisher former dallas fed president to join barclays as senior advisor effective july

1st. a note of the investment bank at barclays tom king saying his exceptional knowledge of monterey policy and regulatory matters will be of tremendous value to barclays and our client. just this past week he joined the at&t board of directors. back in march he joined the pepsico board of directors. now you can add senior advisory role at barclays to the private sector list of jobs richard fisher has taken on. back to you. >> you had us going there for a moment. saying we hope he's okay. obviously, he is. thanks dom. >> about 38 minutes left in the trading session here. the dow is hovering near the lows of the session. down 295 points.

>> we'll head live to the oil pits next. >> david rosenberg will tell us how the greek crisis to affect when the fed starts raising interest rates. something else for us to think about. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life.

35 minutes left in the trading session with the dow down 287 points. another group we are watching today, the coal stocks like

peabody energy moving higher after the supreme court overturned the obama administration's landmark economy rule saying the epa did not properly consider the costs to companies of regulation in the spirit of the clean air act when they were imposing new caps on emissions by coal plants. you are seeing some of those coal-fired stocks going higher. >> sure. they are coming from low levels. a lot trading in the tens of millions of dollars as that industry has been hammered. a sort of surprising reprieve. one people knew from the cost benefit analysis this was probably going to cost the industry $10 billion and have only a few million dollars in benefits. in the dissenting -- the concurring opinion with the court's opinion there was indication perhaps the supreme court would consider a few more of these regulatory agencies overstepping their bounds in the future. that having a big impact today. >> oil prices plunging on back of the developments in greece.

jackie deangelis is at the nymex. >> that's right. oil prices dropped $1.30 today. $58.33 is where wti finished the session. we've been in this trading range and are at the low end. traders saying this contagion word you have been discussing in terms of the euro zone is a problem for oil in terms of demand and growth. that is what they are focusing on. also in action this week are the iranian talks, nuclear talks if we get iranian oil back on the marketplace or anticipation of that, we could see prices go down further from here, as well. there is one more thing. gasoline demand. that's been dropping off, as well. we saw two cent drop in gas prices just before the fourth of july holiday weekend. traders saying this is unusual. seasonal activity usually we see demand ticking up here. a lot of action in the energy markets to keep an eye on as we come through the next few days.

back to you. >> we talked about greece but the stock market is going down because of china today. and oil is going down because of that iranian story. >> absolutely if we do make progress or see a framework for it it will take time before iranian oil comes back on to the marketplace. traders are looking forward. if it moved down more, it would be a momentous move. >> time for the cnbc news update. president obama signing into law legislation that would give power to negotiate trade deals and speed them through congress. he still has a battle.

>> nbc universal ended its relationship with donald trump for his comments regarding latin americas. the miss universe pageants will no longer air on nbc. >> a detroit mother said she has no remorse for killing her two young children and storing their bodies in a home freezer. pleading guilty for killing her 13-year-old daughter and 5-year-old son. >> pope francis addressed p.m. archbishops on the feast of st. paul. back to you. >> 30 minutes to go. we know things could get interesting during this final block. the dow is down almost 300 points.

>> the vix up 33%. it is by far its biggest one-day gain. now up 34.5%. >> greek debt crisis fears may be sparking part of the sell-off but our next guest says investors should see this as a great buying opportunity. >> it's not just greece that has investors spooked today. could puerto rico default on its debt? who could be left holding the bag if it does?

welcome back. the news flow not helping markets. we are plummeting new lows. dow down about 315. a moment ago was down about 320 points. both puerto rico and greece continuing to feel the anxiety. >> we are into that last half hour of trade here. i'm here with matt cheslock. greece, puerto rico, china. is where the window dressing going to come in? >> i think friday screwed up all the liquidity ideas. we took advantage of that

opportunity. if you were going to trade in your portfolio, friday was the day. there is so much out there, it's i not just china. it's not just iran. it's obviously not just greece. one thing i'm looking at gold. if it was just greece gold would be screaming higher. that is not happening. that leads me to believe there are so many other problems. >> i heard so many different support levels for the s&p. we keep blowing through each of them. do you have one now? 2062 at the moment. we are dropping right now. >> we are going to breakthrough that. we'll have the first quarterly decline in the last nine. it seems evident. there is no reason to buy this right now. i'd rather have my money on the sidelines and be actively involved after the fact. >> are you watching the technicals in terms of support levels or watching fundamentals? >> we are not going to have developments this week. nothing to trade on. >> jobs number thursday. >> i think that's u.s. based. that leads into what the fed is going to do. they are going to be tied going

forward. they are going to affect what is going on in europe and china. if it was just u.s. and we've known we are ahead of the game we would be in great shape. that is not the case. >> thanks. let you finish the trade as we head toward the close with dow down 309 points. >> thank you, bill. people looking for a reason why we are taking a leg lower here. we have breaking news on cypress. >> right now across greece alexis tsipras is giving an interview on national television and telling them to vote no. the reason they should vote no in the big referendum sunday he is telling them it will give them a better hand in negotiations with the creditors. the bailout lenders to the country are in the middle of these tense kneenegotiations.

the impasse led to the shutdown of greek banks and capital controls. he is saying if they vote no they'll be better off when it comes to negotiations. europeans all day have been saying no. that's not the case. consider this a vote to stay in or out of the euro. if you vote no it will weaken our position and tell the greek people do not want to be a member of the euro. we heard that from a number of european leaders today. once again, could be pushing the stocks lower this hour. greek prime minister alexis tsipras is speaking on national television and reiterating he wants the greek people to vote no. the referendum took the people by surprise and european leaders by surprise as well. back to you. >> thank you. if you couldn't hear what she said the key point was from tsipras, if they get a no vote

that will only strengthen their hands in the negotiations with europe. it does point to they are playing a chess game clearly. >> the message from greece's creditors has been if people vote no sunday they'll view that as tantamount to a vote from the exist to the euro zone. extremely important the extent to which this is seen as a reflection of people's will to do that or not do that. >> we need to move along, but let's make this point everybody has been pointing out. greece is a small country. economically doesn't mean a whole hill of beans, but politically if they let greece go, you wonder if there are other dominos to fall. that is what european officials are worried about. >> that is what we are going to ask david rosenberg. he is chief economist and strategist. great to see you again. >> thanks. >> what would you put the odds of a greek exit and how would

you recommend investors play that? >> i think that it is still a low odd scenario. higher than this time last week. still low. i didn't have a chance to see all the demonstrators out in greece. let's just say the polling is showing consistently that for every greek voter that would opt for the no sign to this bailout deal there are two that would vote for it. you can't always just rely on the polls. consistently showing a 2-1 ratio. i would say they will probably get a deal done it will just be delayed. judge, if that's the case that's your base case all the other possible scenarios notwithstanding notwithstanding, should everybody be long risk whether it's european equities, u.s. equities, parts of the bond market or does this carry different implications how you

recommend people invest? >> i certainly understand the logic of having some cash roady to put to use. if this drags out longer maybe you want to stay on the sidelines for a bit more. if you asked anybody, including us why we were moving into europe say in the past six to nine months we weren't doing it for two are or three month trade. we were actually taking longer-term position. if you asked us the reason why we are trading more optimistic on the euro zone greece wasn't the top of our list. who doesn't know that greek is never going to be able to pay off its debts, whether or not it's part of the euro zone or not part of the euro zone. that was not the reason to be bullish on the area it's all the tools the ecb were putting onto place including quantitative easing which we can argue might not do a lot for the economy, but does a lot for risk

appetite. competitively supercharged currency and compared to now versus a year ago, the regional economy is doing far better. i'm looking at this as something temporary. we would be sitting here and probably were beginning of 2009 pulling our hair out because we couldn't get t.a.r.p. passed through congress. you had some days where the dow was down 600 points. this too shall pass. it will be a very good buying opportunity. >> let's do it this way. greece exits the euro. what is the best opportunity, greece stays with the euro what is the best investment opportunity? >> i think it would be actually going right back into the euro zone financials once this crisis passes. and a logical prevail and it will past that. will be your best opportunity. >> if that doesn't happen if you are wrong and greece does leave the euro or effectively shut out under capital controls and a parallel currency?

>> the timing will be influenced. ecb gets more aggressive. the big risk isn't so much for greece. we can talk geo politics down the road. it's the contagion. one thing not mentioned what the stock market has done today, take a look what's happened in terms of portuguese italian and spanish bond spreads off germany. they widened what today? 30 basis points? two, three years ago they would be widening 300 basis points. when you look at the fixed income markets, the contagion has been limited so far into the periphery. i look at that as something encouraging. the reality is if this does get worse, in quotation marks, ecb gets more aggressive. >> thanks david rosenberg with his thoughts how this plays out with 20 minutes to go. >> where we are setting lows the dow down 331 points right

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welcome back. a lot of troubling news for markets to digest today. the dow is down 330 points. s&p down 41. the nasdaq down 119. >> dow is comfortably below its 200 day moving average. first time it will have closed below that assuming it closes here since last october. the s&p is only six points above its 200 day moving average. now five points. the traders are going to watch that one carefully. one of those levels matt cheslock was talking about. other big movers gannett completing the spin-off of its publishing business. that company retains the name gannett while the broadcast and digital business will take the name tegna. linkedin lower after they gave permission for linda.com shareholders to sell 6 million

shares. they acquired lynda.com for $11 million. >> hyundai signing a four-year deal to become the official auto sponsor of the nfl. gm held that position since 2001. >> interesting to see -- in nascar toyota is the big sponsor. they don't even have the brands. it's just highlighted, the takoma truck. >> puerto rico on the brink of default. its governor saying the island cannot pay back its $70 billion in debt. >> puerto rico is a commonwealth of the united states. will the u.s. be on the hook if puerto rico defaults on this debt? the white house has said no bailout here right? >> yeah. frankly, i think that's been the expectation is that the fed would not step in and rescue puerto rico.

they did not step in for detroit and other troubled municipality. >> there is an argument for the feds to step in and do something like they did with d.c. in the past where they assign a panel of some sort to administer and sort through it. puerto rico saying to the u.s. if you are not going to bail us out. we are going to go straight to bond holders and ask for a bailout. is that going to work? >> my view our view is that puerto rico needs that adjust regardless of what framework is in place. we would all prefer there be something like a federal control board put in place to lend an air of stability and legal considerableability or structure to the process. whether or not it's directly through negotiators with creditors or an organized process. >> what happens for those people who may be invested in general obligation bonds or other forms of debt securities involving puerto rico?

what would you do? >> there's a lot of commentary that gos are constitutionally protected. i would caution to accept that at face value. a plain reading says it has a budgetary priority but there is nothing that says those bonds cannot be restructured if there is a restructuring, they get a first payable when the budget is constructed. i would be cautious about some of the market commentary. have a conversation with your financial advisor about do i want to hold on to this paper? i do think i can recover higher than current prices? it's a conversation all individual investors should be having. >> pick up the phone or send that e-mail now. >> absolutely. >> shawn, thank you very much. >>. >> breaking news on donald trump. >> mr. trump and his organization put out a statement. this in response to nbc severing

its ties with trump and the miss universe and miss usa pageants. mr. trump stands by his statements on illegal immigration, which are accurate. he says nbc is weak and like everybody else is trying to be politically correct. that is why our country is in serious trouble. mr. trump continues, "we must have strong borders and not let illegal immigrants enter the united states. has been stated continuously in the press, people are pouring across our borders unabated. great amounts of crime are being committed by illegal immigrants. this must be stopped and must be stopped now. long ago i told nbc i would not be doing "the apprentice" because i am running for president to make our country great again. he continues, if nbc is so weak and foolish not to understand the serious illegal immigration problem in the united states coupled with the horrendous and unfair trade deals we are making

with mexico then their contract violating jose clur of miss universe/miss usa will be determined in court. further more they will stand behind brian williams but won't stand behind people who tell it like it is as unpleasant as that maybe. signed donald j. trump. the back and forth continues. back to you. >> them's fighting words. >> i think they are doing battle. yes. >> that's clear. thank you very much. ten minutes left here. the dow down 322 points. s&p down 41 now at 2059. we are now negative for the s&p for the year. >> much more when we come back.

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seven minutes left in the trading session with the dow down 300 plus points. what to do? you know people are tuning in want to know what the market is doing, but what should i be doing with this market right now? >> first thing is watch very closely what you are doing with your positions. it's a very good time to

meticulously think to reallocate in your various sectors. look for sector rotation based on what's going to happen with greece tomorrow with the default. >> really mark? even for the average person they should change what they are doing in the market because of greece? >> i think every position is different, kelly. it all depends, whether it's a fund or individual equity or fixed income. certainly now is as good a time as any to make that sector rotation, to look what is working. financials are working really well. health care is working really well. technology has been working, but in a narrow trading range. >> today utilities are higher. they have not been working well. >> that is an isolated trading day for utilities. and the hearsay with the greek situation. >> you are saying people should stick with the broader trend about what's working?

>> i agree. >> what if it's a robot? >> get a financial advisor. get an advisor to give you intelligent advice in markets like this. >> thanks for being here. >> let you go answer the phone. >> we'll be back with the closing countdown. we'll see if the sell-off continues. >> after the bell, i'll be speaking to ellen kullman, ceo of dupont. the biggest loser on the dow today. we'll get her take on greece and what is ahead for the industrial giant.

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coming up on the two-minute mark we have art cashin and bob pisani. the question was after europe closed we would see the market come back. if anything it intensified the selling. >> it did. first of all, things in europe did not go well. secondarily as the afternoon went on more concerns about china overnight. that's why there was heavy pressure on oil. people began to realize the puerto rican problem could be far bigger than most people thought. on top of that we kept breaking various technical levels. >> it doesn't help we have standard and poor's saying 50% chance of a greek exit. that is an amazing statement for

a consecutive organization. we heard 30%. 50%? that's big. then we had the spectacle of the greek government saying they might sue the european union trying to push them out of the euro. there is no mechanism of an exit and you can't force us out. we'll sue you. this is extraordinary. >> they've been playing poker and turning over their cards at the same time. >> does china set the tone for tomorrow? >> absolutely. china will set the tone tomorrow. if it can manage to rally there will be a great sense of calm. if they have another big sell-off you'll hear about possible crash. >> the s&p is getting darn close to its 200 day moving average.

>>. >> the ceo of dupont is ringing the closing bell today and will be a guest on the second hour of the "closing bell" with kelly evans and company. see you tomorrow. welcome to the "closing bell." i'm kelly evans. the dow jones industrial average going out with a decline of about 350 points, 347, to be exact. nearly 2%. down 43 points at 2057. nasdaq giving up 2.4% down 122 points. the worst day for these markets in some time. it does look as if the s&p 500 is in the red for the year. let's bring in today's panel. michael santoli with our own

sara eisen. and tim seymour. first breaking news on the treasury department with steve liesman. >> thanks very much. with the clock ticking on a possible greek default, u.s. officials are urging both sides to remain at the table to continue negotiating and compromise. secretary lew has been in constant touch. officials added direct exposure of u.s. banks to greece and other economic linkages are minimal, but greece matters for europe. the u.s. is integrated with europe. sooner is preferable potential default of greece is not a meaningful deadline. >> is it fair to categorize the

u.s. putting pressure on greece itself or its creditors to reach a deal here? >> i think over the weekend there was more pressure on the creditors and this idea of sustainable debt relief. they do continue to pressure greece as well to adopt reforms for the broader economy. >> thank you, steve liesman. pressure for sustainable debt relief. is there hope for a deal? michelle caruso cabrera is life in athens with the latest. >> the answer looks very far away. still going on behind me is the vote no rally. these are people who want the greeks this coming sunday to vote no in a referendum about that bailout package that steve described as at an impasse at this point in negotiations. in the last hour, we have seen the prime minister alexis

tsipras appear on national television. once again push the greek people to vote no in the referendum he called by surprise late friday night saying don't accept the bailout package. it's too harsh. it's the equivalent of blackmail and we could get a better deal if you vote for. european leaders say a vote for the package means you'll stay in the euro. a vote against means could you leave the euro. alexis tsipras says he doesn't buy that. he said they don't worry, they are not going to kick us out. >> let me be frank, no i don't think so. they will not kick us out of the euro zone. let me explain why. the cost is immense. the economic cost the financial burden, their plan is not to kick us out of the euro zone. their plan was to end hope in

europe there can be an alternative policy. >> so how did the markets react? very negative today. at the same time catastrophic? no. did we see yields spike in the periphery of the euro zone? yes? in a catastrophic way? not necessarily. creditors may still have the upper hand if we see things get worse in the markets, maybe it could move in the court of greece. back to you. >> thank you so much. michelle caruso cabrera live in athens with the latest. to remind people how we got here. friday evening, the greek prime minister calls for a referendum. that's coming up sunday. saturday the euro zone finance minister said they will not extend the bailout. imf payment looms tomorrow they appear ready to miss. sunday afternoon, ecb will not increase its emerge se assistance.

what happens next? >> now you have this idea from the european officials the referendum is a yes or no vote to be in the euro despite what their prime minister told them. all the research notes over the weekend focused on this idea of the referendum. the base case scenario is greece is going to vote yes to stay in the euro to stay to accept the bailout conditions. the probability of a no and a greek exit from the euro has gone up dramatically. went up over the weekend and continues to do so on this devisive rhetoric between greece and european creditors. >> it's striking to hear prime minister tsipras who has been in power only four five months "they won't kick us out." he has a point, but this is the moral hazard creditors are trying to avoid. >> without a doubt. if you had s&p coming out saying it's a coin toss how this goes and whether they stay in the

euro, that is the kind of probablistic gain markets are not comfortable betting on. the market was voting by retreating from all active bets and taking risk off the table. we don't know how to handicap the way the populous will vote and how they will deal with it all. >> they sold the euro hard overnight. it totally rebounded and snapped back up. that goes against the greek prime minister. there is this feeling euro will be okay with or without greece. >> what are you saying to investors how they should be moving their money around or not as all of this plays out? >> sure. our stance continues to be that whether greece stays in the euro zone or goes that's less of an issue for the euro zone as an economic bloch and corporate

earnings and positive factors like the fact ecb is printing $60 billion a month and stands ready to do more if they need top. it's hard to have perspective when you have markets melting down. perspective is that greece is less than 2% of the percentage of overall economy of the euro zone. where the greek debt resides today versus where it resided in 2012 is completely different. tsipras is playing dangerous game thinking the northern europeans are going to blink. i truly believe they feel they can do find without greece. >> it's fundamentally a political one. >> sure. that makes it interesting because politics can get ugly like right now. despite the fact the market is puking on it today, a referendum is a good thing to draw a

resolution one way or the other. i think it should reside in the hands of the greek voters to decide which is the lesser of two evils, not in the politician's hands. >> that was interesting. about the way alexis tsipras framed it saying if you vote no that is not your no vote to staying in the euro zone. that's only going to put news a better negotiating position to stay. >> it's -- >> i disagree with that. >> it's understandable why he would want to separate those two questions. with all the deadlines they have to meet doesn't work for him. >> tim seymour, tomorrow greece owes the imf 1.5 billion euros. they will be in arrears. does that mean they are in default. >> i don't think the imf number is that important. a lot has been around posturing and then to whether these guys

and tsipras is willing to work with european leaders to give back something on pension and reforms. there is a lot of reasons why greece won't leave the euro. i think there's a couple which include things like does the west want greece approximating russia? this is not an insignificant thing when you think about the european union and fragility of the bond. 3.4 billion euros due july 20th. those are the days we think would be leading to technical default. by then we hope, we expect the world is a different place. in the short run, imf payment is a big deal. who runs the imf and what their interests are. >> people have been homing in on an outstanding payment in yen terms to the japanese looking for that moment when greece technically would be in default. >> right. all the rating agencies said the imf nonpayment would not be a default. the arrears thing is scary and symbolic of the fact this has

taken such an ugly turn for the worse. it's going to join the likes of the zimbabwe and liberia that are not world economies and how it spiralled without any agreement. >> the greece economy was turning a corner. they were running a primary budget surplus. if the debt was completely forgiven, greece would be in decent place but that got thrown into doubt this weekend. >> it did. i don't think anything reached a point of no return. the rules are improvised as we go along here. i don't think you are going to have this trigger point when all of a sudden it's over. >> to circle back to you and the point about this not having a huge economic impact dave rosenberg said he thinks the odds they leave are relatively

low versus some of the estimates we've seen and he would be long european stocks because greece being a problem was already baked in. would you agree with that? >> i completely agree with that. it's difficult to have perspective on a day like today, but crucial. when you look at the ecb backstop, and ecb said as much yesterday. very thinly veiled type of statement suggesting that they can and will do more if you mentioned earlier about sovereign debt spreads. that's the key thing to watch. watch the 10-year in spain. what we are seeing is it's nowhere near contagion levels. the bond market saying greece is a tempest in a tea cup and taking eyes off the ball of the bigger picture. europe is getting better. >> what are you watching to determine whether today's panicky sell-off continues or buyers start to step in? >> currency markets are the most

interesting. as sara talked about the euro rallied after gapping down out of the gates. almost a four handle intraday volume movement on the euro. if you think of the yen, these have been funding currencies. i'd watch dollar/yen. markets are greeringearing up for a more protracted environment. the u.s. 10-year, there is a ton of data in the u.s. it's very important for the fed. the question has the fed been taken out of the picture by this? on thursday, we'll get a payroll number. people will see unemployment rate tick lower. >> we've got a lot on tap. thank you, guys. good to see you. stick around. more coming up with tim and the "fast money" gang at 5:00 p.m. they'll be joined by dennis

gartman and whether he thinks this sell-off is just beginning. coming up greek debt crisis rattling these markets. where can you find safety for your money? we'll talk about safe havens next. >> an exclusive interview with dupont ceo ellen kullman. how this global economic uncertainty is impacting the chemicals giant. her take on activist investors after winning the proxy battle with nelson peltz. we live in a pick and choose world. choose choose choose.

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greek debt crisis marking the worst day of the year for stocks. where can investors find safety? welcome to you both. george exactly gold was lackluster today. do you think the price moves higher from here? >> yes, i do believe so. i think it won't be immediate. i don't think it will be dramatic. i think gold has been totally misunderstood as an asset.

the last year you had a phenomenal stock market, a good bond market and we haven't seen the need of goal from institutions. going forward, i think the case is being made for gold. >> it was up $5. isn't gold making a case for itself. big jump 10% today. i could see your point. investors don't seem to be looking at it that way. >> it's off the radar here. if you are living in greece or spain, portugal italy or other countries, maybe south america, possibly would you want to own an asset that is convertible to any currency, that is liquid portable and no political allegiance. >> do bonds meet those qualifications? >> i certainly do.

we like some don't like others. new neil zand is where we find value in the bond market. >> i wonder if you see a safe haven in u.s. treasuries right now? we get the jobs report thursday which by all accounts looks to be another good one. >> the u.s. economy is improving. fed looks ready to raise rates. could be derailed by greece and elsewhere. we really don't like u.s. bonds. we don't like u.s. duration. on a day like today, there might be a reason to have it in an investor portfolio. there's better in fixed income markets than u.s. treasuries. >> don't we have to define what

we are looking for with safety? maybe there is going to be a head wind if rates are going up. if you are looking at high grade corporate bonds and willing to own them that obviously would seem like it's not necessarily an unsafe place to be correct? >> to me it's a question of what does safety mean? if you are at a more volatile world, is it a risk off day because of a bad bet in greece like today or u.s. rate increase-led? if u.s. rates are going up you don't want to own anything with duration, whether it's high grade u.s. corporates or u.s. treasuries. >> what about bitcoin? anyone going there? >> i think i'm going to stick to deliverable and 400 or 100 ounce or other denominations of gold which has been known to be a good convertible into any other

currency. i think a lot of people now are starting to think that way because of what's happening with greece puerto rico china, iran. there are a number of economic and political pit bulls out there. i think we are about to see a lot more coming down the road. >> gold has to prove itself again but not out of the question. thank you. . >> breaking news on celgene. >> news out of the biotech world. celgene announced a ten-year collaboration to advance ground breaking immuno therapies for patients with cancer and autoimmune diseases. including the purchase of 9.1 million shares at $93 a share. today juno closed at $46.30.

juno up by nearly 55%. celgene down slightly on the news. two companies saying they are going to level t-cell therapeutic strategies for patients with cancer announcing a ten-year collaboration between celgene and juno. >> we are talking about a $4 billion market cap company. this is huge. thank you. up next dupont's ceo ellen kullman. >> some investors see apple as a safe haven play but that stock down nearly 2% today.

dupont is taking a hit in the market sell-off today. one of the biggest losers on the dow amid analyst downgrade when investors are watching what's happening overseas. dupont has operations in 90 countries including greece and china. joining me isselen kullman, ceo of dupont. welcome. you just rang the closing bell. >> we did very exciting. >> you guys have a couple of spin-offs. first though give as sense how worried you are in the boardroom or in the c-suite about the turmoil in greece and growth concerns in china. >> it's interesting because 213-year-old we've seen a lot.

nevertheless the economy, the world keeps throwing things at us. greece is a question of confidence. more importantly, how did the euro do today? we watch the macros carefully because of the breadth of our business globally. in china, it depends what sector you are in. the food sector is going well. infrastructure investment things like that slowed down but growth is still higher than growth we are seeing elsewhere in the world. it's very much a sector by sector analysis you have to do to understand the impacts. >> you've seen ups and downs in your tenure at dupont. 2009 with the global financial crisis then the commodity bubble and activist battle with nelson peltz. >> we have been in touch. we want to engage with them as all our share holders to continue to tell our story and understand how we will continue to deliver shareholder value.

>> did he give you cover to be aggressive with the business and reshaping it pushing for change allowing to you execute more quickly? >> when you run a 213-year-old company, it's always where do those questions come from? we've been on transformation the last 16 years we listened to their ideas. there were areas we agreed upon and a couple we didn't. it was a very good interaction and we hope to continue to work with them in the future. >> people wonder if activists are going too far. how have you successfully defended your leadership and vision at this company? >> it was engaging with all shareholders. very transparently around the future of the company, the spin is a big change for the company.

we'll be a very different company going forward. we've been able to model the company has we been structured, we would have had a 6% topline compounded growth. high teens bottom line compounded growth as a company. putting science to work in innovation we took that story out and it was well received. >> the new dupont has been a reinvention throughout its history. this will focus on ag nutrition, health and performance materials. what are your industry leaders across those categories? >> in agriculture, it is around novel seeds. talking about aqua max earlier, the drought tolerant trade on 10% corn acres in the united states. >> 10% already? >> talking about an active

insecticide that is low toxic. using in places under the hood hot turbo chargers need tougher materials. science is making a difference in helping our customers be more successful, helps us succeed. >> what hurdles do you face in regard to genetically modified crops? there's been pushback in europe and the u.s. about that. the engineering rolling out new products in the agricultural space and different countries and different states have different approaches? >> every country is going to make their own decision about what science can do and what's right for them. what we want to do is engage in an open scientistly-based framework to allow that to happen. in the you'd, it's been accepted. it allowed farmers to increase their yields to not only feed a

growing population but do so very efficiently. i was in vietnam a couple of weeks ago. they will open up to gmo next year. that will be an area they are excited about what it will enable their agricultural sector to do. we have to engage locally and tell them how it's going to help them succeed. >> we noticed in this country some leading food manufacturers have stopped using gmos in their processes. do you have concerns about the health and safety of genetically modified organisms? >> this is an area studied more than any area i have ever seen in my career. it's been looked at a number of ways. what we have to do is be transparent and educate our population about what it is and what it isn't. i think getting this information out of the way and allow people to make decisions based on facts. >> thank you for joining us. >> dupont.

ellen kullman is the ceo. >> thank you. >> time for a cnbc news update with sue herera. the supreme court agreed to put a hold on court rulings that reduced the number avenue borgs clinics in texas. fourth conservative ss dissented. >> the state department said it would release tuesday the next batch of e-mails from hillary clinton's tenure as secretary of state. ms. clinton has been criticized for her use of a private e-mail address. >> the federal personnel agency whose records were stolen by hackers linked to china announcing the temporary shutdown of a massive background data base after discovering a flaw. the system could be shut down up to six weeks. >> california law makers passed a contentious school vaccine bill that would be among the strictest in the nation. governor jerry brown has not said if he would sign it or not. it was introduced after an outbreak of measles in december that infected more than 100 people. that is your cnbc news update

this hour. back to you. apple's watch was released to incredible fanfare. the buzz isn't so great and is a far cry from the frenzy once generated by new iphones and ipads. >> a big setback for along musk's spacex after a rocket exploded.

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a rough day for the markets. going out on the lows of the session. dow declined 350 points. 2% for the s&p 500 which is in the black for the year. 2050 closing level after 43-point drop. nasdaq down 2.4%. the crisis in greece part of a larger problem. european central bank and fed seepingly moving in opposite

directions. here with more is our cnbc contributor from "the washington post." great to see you. you think there should be more coordination between central banks here? >> certainly with the bank of international settlement said there should be more coordination for this reason. we are seeing this situation where the fed has been trying to raise rates. trying to signal it would like to get started on the process of lift-off. it pushes that time period off because of the stronger dollar. they might have to increase qe to take care of the developing greece situation. at the same time the fed is saying we are ready to start raising rates and might have to push it back further. they thought they could start raising rates early as june. >> we think financial crisis. has it gotten that severe?

you cover the fed. i'm surprised to hear you say the fed should be more coordinated. you think they should wait and push out an interest rate increase, even though the u.s. labor market is tightening and inflation moving closer to their target? >> the bank of international settlements. they are not the only ones to say that. the fed has consistently had to push back its point of lift-off because of head winds whether from the u.s. or overseas. if the u.s. economy was able to accept this rate increase they would not be so worried the lift-off would be destabilizing. it's not only greece to be worried about, but puerto rico.

there is no mechanism for puerto rico to declare bankruptcy. >> how might thin creased harmony look when it comes to fed communication? they are saying they're data dependent, not put a fixed date on the calendar. do you think rhetoric should be we are going to stay back on the sidelines indefinitely? >> one thing is increased press conferences, more communication from the fed. and they are talking up markets, et cetera. one of the issues is that the imf has called for the fed to wait until 2016 to start raising rates for exactly this reason. there are so many potential ripple effects across emerging markets and europe as well. >> a lot of this will boil down to whether the fed goes in september or not. there's been fed speak including bill dudley talking about this

over the weekend what are you gleaning from what they are saying? >> there is a big difference between what the fed thinks it's going to do and what the fed might actually do. in my reporting, there is a sense there is a desire to move in september that they feel they have waited long enough they have been patient, they don't need to be exhaustively patient. global instability might cause them to push that back further. you see in the fed funds futures markets are pricing in the idea rates might not rise until 2016. >> just when we were getting there maybe this time. appreciate it. bad news for the apple watch. the buzz surrounding the gadget hasn't weighed other products. tune into "closing bell" tomorrow, julian robertson joins us in 2 a cnbc exclusive.

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internet buzz is a powerful thing. fueling talk of a possible bust. the apple watch is on track to generate about 1/3, just 1/3 of the buzz of the iphone and a

quarter of the buzz of the ipad. for more what this means for apple, let's bring in tony sakinagi. welcome to you. what is your projection for the apple watch? >> we are forecasting 3 million units. consensus is higher at 4 million units. as you noted, our analysis of internet buzz suggests there is downside to that number. if you took the buzz data you would be closer to a million units. >> people may be ordering it on the sly? >> it's possible. there are numerous considerations that could account for the lower buzz associated with it.

one is china which is increasingly important to apple. google search is not available in china. when the ipod/ipad came out, google search china was much less of a contributing factor for apple. the other is people may buy this differently. >> apple never has come out and said we have tremendous ambitions for this product right out of the gate. it's going to be a huge seller. fans said this will be huge. where does it fit in the context of apple's expectations for what this could be? >> you are right. apple's been surprisingly reticent about commenting about customer acceptance about the watch. typically, new products speak enthusiastically but qualitatively about reception.

it's been tremendous beyond our wildest imagination, things to that sort. for the watch, we haven't heard that kind of commentary from apple. certainly, in absolute terms their commentary would be consistent with lower sales volume and lower buzz. >> if buzz is the metric tony one thing that has gotten buzz which is apple music, which comes out this week thanks to taylor swift. what expectations do you have for that service? what does apple have if we are talking about the company's own expectation? >> i think apple has high expectations but music as a category is relatively small for apple. today the majority almost all the revenue for music at apple is for paid purchases. that amounts to about 2% company revenues and 1% profit. paid music is on the decline. if apple were successful and let's use pandora, we would

still be talking about less than 0.5% of apple's total revenues. that is the challenge. it's such a huge company at $200 billion plus in revenue. even if something is very successful by standards are most companies, at least for apple near term they are relatively financially insignificant. >> further evidence on the contrary indicator. this is the first time i bought an apple gadget when it came out or wanted it. the apple pay, you can hold the little thing up and it's super easy. i'm surprised. is part of this about it being worldwide, the fact apple pay itself has not rolled out yet? >> i think there's mixed reviews on the watch. it is a first generation product. many people believe that the watch doesn't add a killer application or dramatic

incremental functionality from what you can have from your iphone. your iphone is typically on your person. the use case is the question. i think down the road there will be much more functionality in the watch and it will be decoupled from the iphone. i think there will be health monitoring metrics in the watch. i just don't think we are there yet. >> what is your price target for apple here? do you have a buy? >> we do. $142. we still like the stock, but it remains an iphone story. >> thanks for being here. >> my pleasure. >> it's another failed mission for spacex. sunday's explosion marks the third rocket elon musk's company lost this year. jane wells tells us what went wrong with this next. >> long hours and constant connection are leaving employees feeling burned out. according to a new survey they are still pretty happy at their jobs. stay with us.

welcome back. 350 points down. the dow jones industrial average closing for the day and ifg one of its toughest sessions in a long time.

worst day for the dow in october, the worst for s&p since april and same for the nasdaq. nasdaq off 4% today, taking it on the chin. >> it was a broad sell-off across the board. five out of the ten s&p sectors actually get hit by 2%. all 30 stocks of the dow jones industrial average were lower. only one nasdaq 100 stock finished higher. i don't know which one it was. and five s&p 500 stocks finished higher meaning 99% of this index fell today. p. >> it also ended something like a 130-day streak without a 12% move in the s&p 500, which was one of the longer ones in the past several years. obviously we restart the clock on that. >> volatility shooting up to double digits as well, really waking people up from what has been a pretty lullish kind of summer of trading. >> and tomorrow closing out the first half of the year. elon musk had high hopes for the launch but the astronauts up there will have to wait a little longer. jane wells has the story. what happened jane?

>> reporter: well, they still don't know, kelly. elon musk is tweeting that they have spent 1,000 engineering hours of review and they're still trying to figure out, this has never happened with spacex and nasa before. nasa of course early this yaesh lost an orbital atk rocket-h a problem with a russian resupply mission. first time for spacex. and knot falcon 9's perfect record is no longer perfect. there was a lot of important research and supplies on board, and this will be the rocket which spacex hopes to eventually use to carry astronauts to the space station, but astronauts will have an abort system which the company thinks would have allowed them to survive an incident like this. as for food and water for the space station astronauts another ship is launching friday but it will be russian, and the u.s. continues to rely on the russians also for engines and our biggest rockets, currently not made by spacex but by united launch alliance or ula 37 that's a boeing-lockheed joint venture. congress watts, wants a u.s. replacement for the russian engine by 2017. not clear if it's going to happen in time. john mccain saying basically today, too bad, do it.

it could be a real problem for military launches because ula has had a monopoly on those lunches up till now until spacex was recently certified to do military launches. of course now that is in question until spacex can figure out what happened yesterday with its nasa launch. kelly? >> jane wells following the story for us. we wanted to see if there's any correlation between spacex and the rest of the musk empire. kensho data shows tesla trades mixed after a failed launch. in october 2012 it gained about 1 1/4%. in august last year it gained 2 1/4%. but january this year the stock did drop by 2%. and solar city also trades to varying results. gained nearly 1% in august but it was down. it lost .6% after that failure in january. however, when spacex has a successful launch they have returns at both tesla and solar city do top 1%. so it shows there is a musk halo effect. >> it seems a little bit. maybe not statistically ironclad at this point but it does seem as if there would be a reflex

effect. these companies are a call option on his genius and potential success. >> well put. that's why we like you, mike. breaking news on microsoft. >> aol and microsoft have expanded their global enterprise level partnership. now, aol will manage and sell microsoft's display ads in the ten-year deal and aol will also transtoigs bing for its search server -- search provider rather, next year. also not in this release a separate report from bloomberg says that 1,200 microsoft jobs could be cut as a result of this. microsoft told cnbc it has no comment and as you can see it's not really moving here on the news. back over to you. >> all right, kate. thank you very much. i still remember when aol you could use a little portal to the internet back if you had instant messenger. it was very exciting guys. the companies continue to reinvent themselves. >> you've got mail. >> you've got mail. those were the days. but they've moved on. a new study shows despite long hours americans are still happy and motivated at work. we'll bring you the details and get the panel's take when come

right back.

86% of them are still happy and motivated to rise in their organization. got to get the panel's take on this one. hit home with any of you? >> i am not surprised by this. in part because i feel like being overworked and overburdened and having no time for anything is almost a status symbol. you know how they put on that air, i'm so busy i can't get anything done. but at the same time they feel very ambitious -- >> maybe it fulfills them and maybe nobody wants to be bored. >> it's good to be wanted. >> it's good to be wanted and to be busy and distracted. >> this was a staples survey that has a ton of great little nuggets in it. amongst those it shows women -- speak of the quits rate in this skoufrnt a great economic indicator. women are more likely to quit their jobs. men more likely to work longer. women apparently a little more vocal as well about their displeasure. >> i wonder where it fits in with the other study earlier in the year that said men overreport how much they work and women do the reverse. >> we've got some breaking news on greek banks. kate rogers, what's happening?

>> fitch has downgraded greek's banks to rd restricted default on the capital controls that it's taking today, citing that the deposit restrictions affect a material part of the banks' senior obligation. more bad news for greece kelly. back over to you. >> all right, kate thank you. mike, now, it's not to say we didn't know the greek banks were in serious trouble. restricted default. will that have practical implications beyond what we've already seen? >> with the banks not open and basically people thinking they're insolvent without some kind of a fix here i don't know that it tells us much we didn't know before. >> there are four major greek banks. alpha pereas nbg, euro bank. nbg trades here and was hit hard today. sara, we're not sure when the greek stock market is going to reopen. >> it's going to be hard to see whether the market and the banks can open in any meaningful way ahead of this referendum on sunday. that's what we're going to be watching. there is talk and reports that they'll open at least just for the pensioners on thursday. sunday's the big vote. tomorrow's the imf payment. by the prime minister alexis

tsipras tweets this afternoon it doesn't look like they're going to be paying that payment, calling themselves asphyxiated by the austerity. he wonders how can we actually be expected to repay. >> yeah when it comes to the greek banks as well by the way, their capital ratios are okay by global standards. you know 12% or thereabouts. but it's the non-performing loans. they're already up to almost 40% in some cases. and you know that as this hurts the economy, and there are quagss summer bookings are down anywhere between 15% and 30%, that's going to have that ripple impact on just how well capitalized they are. >> well without a doubt. they have capital controls and deposit restrictions here for good reason because they would not be able to weather those. >> when it comes to what greeks can actually do we've seen the stories of people lining up with that 60-year-old limit on what they can withdraw from the atm but they can still buy unlimited amounts online within greece because the whole point is to keep the money in greece in the greek banks. it's when you start to buy online elsewhere or try to get the money out, sara it's a problem. >> obviously it's a bad situation. it's going to get worse. the big question is how the markets are going to react, if

we're going to see a follow-through to this move that was so brutal across markets and what happens in china tonight i think is a big part of the story. >> thank you for being here. really appreciate it. that does it for us on "closing bell." "fast money" coming up in a few moments. simon hobbs, what's on tap? >> fun fact. we're going to show you how you can make money in europe kelly. fun fact. >> over to you guys. >> thank you. "fast money" starts right now. live from the nasdaq marketsite overlooking new york's times square. i'm simon hobbs in tonight for melissa lee. our traders on the desk are tim seymour, steve grasso, pete najarian and in our own tribute to the drachma guy adami. cnbc's coverage of the sell-off continues. the selling of u.s. stocks intensifying into the close. the s&p falling by 2%. and the dow sliding 350 points. both falling into the red for the year. as the protests in greece intensify. for more on the breaking news out of greece we go to our own international correspondent michelle