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 caruso-cabrera who is live from the streets of athens. michelle, take it away.

>> hey there, simon. tonight the greek prime minister doubled down. alexis tsipras appearing on national television here in greece in an interview with local greek television saying that people should vote no in the surprise referendum that he has called on sunday. he says if you vote no i will have a better negotiating position with our eurozone creditors and we'll get a better deal. that's his position. there was a rally earlier tonight in the square you see behind me. it's just breaking up now. but thousands of his supporters came out for a vote no rally chanting o-hee, o-hee. that means no. this referendum has really taken everyone by surprise. it took the greeks themselves by surprise when alexis tsipras appeared on national television late friday night to announce that within hours there were lines at atms that continued throughout the weekend. the runs at the atms were so bad that the ecb by late sunday said

they'd had enough and they were no longer going to increase the amount of liquidity that they gave to greek banks. that means the greek banks could not open today and they're likely to be shut down all week as we wait for this referendum. and greeks themselves are limited to withdrawals of only 6 0 euros per day. they are making exceptions furts, and they're also trying to give pensioners all their money. but clearly there is a cash squeeze in this country. it's not just the money that's a problem as well. we've also got gas lines as people start to grow nervous about whether or not companies are going to do things like import gasoline, anything that needs to be imported. companies need cash for these things. and it's going to become quite difficult. so we're waiting to see what happens with this referendum. and in the meantime there's going to be lots of headlines coming out from various european leaders as they try to pressure the greeks to vote one way or the other. sunday's going to be pivotal. and the days between now and then are certainly going to be eventful, to say the least, simon. back to you. >> absolutely, michelle. and we should note of course

that fitch has now -- for what it's worth, fitch has downgraded the greek banks to restricted defaults, which i guess is fairly obvious that they have to work within the rules that they have. michelle, i mean, obviously we're going to wait now for the opinion polls to come through and the solidity of the yes vote which i think was showing up in opinion polls before he called it at the end of last week. what is the ability of the rest of europe, do you think, to reach above his voice? you know, today nicolas sarkozy, the former french president, was saying that the greek prime minister was lying to his people. what scope do they have as a group to get that in above the head of tsipras? >> the first question about the polls. we haven't seen a poll about this referendum in particular yet. they're going to need time to do that, maybe a day or so. but leading up just last week, there were once again polls that showed greeks want to stay in the euro. depending on how the question is worded, et cetera, could affect the outcome.

but right now going based on the numbers that we saw last week in theory the yes vote this win. it wasn't just former president sarkozy. we heard from the prime minister of italy. we heard from angela merkel. we heard from some of the leaders of her coalition partners today. they were very explicit. we see this vote on sunday as a vote by the greek people of whether or not they want to stay in the euro. if they support the program, then yes, they want to stay in the euro. if they don't support the program, we see that as their desire not to stay in the euro. it's a direct couldn't rah zix to what alexis tsipras is saying when he came out tonight, told the greek people don't worry, they won't kick us out. not that they're going to kick the greeks out but i think they may eventually say you're on your own-u don't want the program, don't get the program so live on the revenue you bring in and participate bills as you see fit and see how that works out for you. >> michelle caruso-cabrera, on days like this no doubt the

hardest-working woman in television. we'll let you get to sleep. michelle there on the streets of athens. guy, how bad does this get? >> feels like the rhetoric will get worse before it gets better. i don't know what neenz for the broader markets. steve grasso's been talking about i think 2054 specifically in the s&p. got there today. tim's been saying lighten up in the russell. pete always says and he's been saying it's last week or so, use the weakness in volatility, use the low levels around the 12 level in the vix to protect your portfolios. all those things came home to roost. the transports have been telling you something. the iyt. i think that trades down to 137. i think the bond market continues this rally at least until we get to 2 1/4 in the ten-year, and i think you have to start looking at names that have been sold off. look at a name like powell networks off 8% off the all-time high. >> back to guy, he talked about trading the deutschebank from the short side on friday or at least you could get in there on monday and do that. the risk rewards still have plenty of room to go. if you look at the most vulnerable asset class to what's going on in europe it's ubs, deutschebank. if you're looking at countries that are most vulnerable, if

you're playing european equities, it's portugal, spain, italy. ewf, ewi, these are ways to play this. if you think that european equities largely are listening to the same thing that schauble or merkel or all these folks in germany are saying, this is a no contagion event, you are buying european equities here. do you have to buy them tomorrow? no. it's not going gap in your face either way. germany's not even down as low as it was last week at the close of today. put it in perspective. today was not a disaster. >> i look at the volatility in the marketplace and guy was very nice to point out you that know, just last tuesday we were talking about a vix that got underneath 12. now we're looking at a volatility index that actually today was only around 17, 17 1/2. jon and i were talking about it earlier in the day, just talking about how this volatility's still going to go higher. at least we felt it would. sure enough it did. bit end of the day we hit 1950. i don't know we're done with that yet. we've seen 31 on the ebola scare. late in december other fears that put it up toward 25. i think we're going to see more volatility coming into this marketplace. the acceleration toward the latter part of today, i think a

lot of that was no long arer just greece. i think puerto rico certainly will really put things on and that's where we're starting to see the heavy selling. >> let me push back. this isn't like ebola fears in this country. that's not going to spike as high as that, is it? it's not as intense. >> well, i don't know. is it? if you throw in china, you throw in puerto rico, you throw in greece -- >> oh, together, combined. >> i think there's a lot of reasons why people are looking for ways that they can cover themselves. they should have been covering at the low end. we've had opportunity after opportunity. and now i think it's up for folks at 17 today it was still a buy. at 19 it gets a little scary. >> this is not dissimilar to february when you see the s&p flirt with that 200-day moving average guy was just talking about. that 2053, 54 level. i think at this point you have to stay all clear here. you have greece as pete just said. you have china. you have puerto rico. but you also have a shortened holiday week. so there's a lot of guys not at the wheel. unless we hold that 200-day imbalance like we did in february up 6% i think you stay clear. this could be different.

>> s&p if you look at all the major indices compared against the nikkei, compared against the dax, this is the one index that is right up against the 200-day. i know we'll talk with rich ross later in the show about this stuff. the most vulnerable on the charts relative to all the other majors. this is the one that's actually pulled back. >> okay. for more on how you trade where we are now the global sell-off let's bring in dennis gartman, editor and publisher of the gartman letter. what are the wise words on this occasion, dennis? >> i think the wise word is that the strength that occurred today in the euro, i think it caught a lot of people off guard. i've always that once you take greece out of the euro the euro becomes very expensive. i've argued that germany wants to keep greece in the euro but at this point the german people have had enough of the greeks. they want them -- it's almost as if they wish to wash their hands of them. so you had the euro last night amongst the panic trading all the way down to 109.50. by the end of the day today we trade add boff 112.50.

we had what's known for the technicians an outside reversal day, a new low and a much stronger close. i think the euro's going to get much stronger because they are going to toss the greeks out. that's what's going to end up happening. despite the fact that the german cognoscenti, the german business class wants to keep the greeks in it, i think the german public has had enough, wants them out, and suddenly the euro becomes a valuable commodity again instead of a devaluing currency. that's the big news. >> you and i have had this conversation before. isn't there a risk here that you're counting your chickens before they've hatched? greece has not yet defaulted. greece has not yet left the eurozone. so the euro is higher. but that may not last, surely. >> it may not last. the no vote may not go through. the yes vote we want to stay in the euro may pass. then suddenly the whole game goes back on the drawing boards again. but at this point given the way that the market traded it certainly looks like the euro has made its low. it certainly looks like the

greeks are going to be tossed out. it certainly looks like default is logical and very probable. it certainly -- we have already had credit controls put into effect or currency controls put into effect. things are rolling around very poorly. this is not a very pretty sight. and i'm afraid that the worst probably is already happening. >> dennis, i agree with you. today's currency action was probably the most surprising for people. but the presumption that a grexit is an event without contagion is also very, very important to your thesis that the euro has bottomed and goes higher. one of the things we worry about here is obviously spain is next, italy is next. and i know you don't believe that that's possible. but to say i think that the currency's going to price all that uncertainty in right now is tough for me to trade against. >> timmy, i understand. i don't think -- let's look at what spain, portugal, and italy has done compared to greece over the course of the last several years. the spanish, the portuguese, the italians have really gotten

their fiscal circumstances in far better shape. the greeks have absolutely done nothing about it. they have been reticent to do anything about it. they have been openly antagonistic toward the rest of the continent. i think there's a great difference here. one should always worry about contagion. but i think at this point i shall not. i'll look and say to me it looks like a bottom has been put in. if we take out 109 1/2, i will have been wrong. but i think it's important to see, i don't think people are paying enough attention to how strong the euro got today in a day of what looked to be panic everywhere else. that i think is the most important circumstance that prevailed in the capital markets. >> it is certainly worth pointing out. dennis, thank you so much. dennis gartman there. the other thing we should mention is the european central bank, if it fears contagion, will come in with force. >> mighty, mighty, swift response. >> which will be euro negative, presumably, because they'll drive down the rates again. they'll buy whatever else they haven't bought. >> they're going to try the keep the rates down in the periphery. i would agree.

i think this is a case where the ecb -- people are making an assumption, think it's a reasonable one based on their history that the ecb is already ready. they're ready with a policy action that's going to be large, it's going to be fast. who knows? >> weern going to leave this alone. up next we may have had a sell-off today but the charts are flashing a major buy signal and we'll tell you exactly what that is. plus, could puerto rico morph into a bigger financial crisis? a top analyst who downgraded two leading bond insurers will weigh in. and later, a top hedge fund manager who's betting the s&p this year, he says that europe is a buy and he has three reasons why. he will be here exclusively to reveal all that and more and "fast" returns. (vo) rush hour around here

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stocks staging a sharp sell-off as the greek crisis intensifies but there's something the s&p did that could mean it's off to the races. rich ross is a technician who joins us from evercore isi.

rich, where are we and where will it take us? >> there's no way to dress it up today. 496 of 500 s&p stocks lower on the day. down 350 on the dow. but i'm going to give you a reason for hope, a reason to get out of bed and buy some stocks tomorrow. it comes in the form of the 200-day moving average. now, there's a reason we use the 200-day, simon, because it works. let's go to the charts and i'll show you exactly how. this is a multiyear chart of the s&p 500. as you can see, since s&p downgraded the u.s. back in 2011, not only are we up over 1,000 s&p points, good timing there, but we've only tested that 200-day on three occasions. in 2012 you dipped once, you ripped, 14%, and you dipped again, only to rip 48%. that brings us to where we are today. up another 14%. so three big rallies after the dip below. i think history's going to repeat itself. now, when we zoom in you see the shorter-term chart. you alluded to the 2053 level.

that's the purple line. that's the 200-day. i think we're going to get a situation very similar to october where we've got to false break. a short sharp break which ultimately proved to be the washout low. set the stage for the rally that we're in right now. you want to be a buyer but you can be a little patient as you take that stock in. i think we could see a situation, boom, just like that, provides that opportunity on the buy side. so there's reason for optimism. use that 200-day. set a motion aside and take advantage of the fear that's out there right now. >> rich, but the only thing i would say, just to stipulate this, is that we've banged against this 100-day, we've broken the 50 and we banged against the 100-day and broken the 100-day about 11 times since that break that you just spoke about in october. does this feel a little too repetitive for you, and if we do break the 200-day we could be trading at 1960-ish in the s&p cash. doesn't that flush a lot of buyers out? >> no question about it. but keep in mind fear for the time being is under control. we don't see this across asset

classes. dennis gartman talked about strength in the euro, the fact we didn't see that flight to safety in the dollar. we also saw a lack of a bid in gold. that currency of fear. that tells me that people are not particularly fearful. perhaps they should be. but for the time being we don't see that pervasive fear in the marketplace. that's why i think this is going to create a very nice opportunity ahead of that long weekend coming up. it's going to be a long weekend with that referendum on july 5th. i think we exit to the up side from that referendum. you want to be a buyer in anticipation of that this week. >> up side event risk. rich, nice to see you. rich ross joining us there from evercore isi. pete, do you agree? >> well, i agree to an extent that i actually think you could nibble but i don't think you want to jump in here and i think rich would probably agree with that. when you look at that moving-day average, that 200-day moving day average, that looks great. along at the xlv. something like the health care index. that's how that 50-day as well. i look at different areas but i don't think you want to jump in right now, simon. i think you want to sort of put your toe in. but i still think we've got some

pressure. we've got those big three, china, puerto rico, obviously greece. i think there's still plenty of pressure on this market. >> tim? >> talk about the russells. i've been probably wrong on this for a couple weeks although have you been because the whole point is the small cap stocks give you much more implied and embedded i think volatility at a time when you see this break. the iwm just breaking through the 50 today. relative to the s&p is overbought. relative value i think it's unquestionable. if you want to play this trade, take the iwm from the short side and even be long the s&p but that's the place i would get short. >> like the best case for bulls tomorrow is crazy. as this might sound. as the s&p opens down 15 handles and then goes ratcheting through, we've seen that a number of times. i think you can trade it with the fxi. we mentioned this last week. specifically on friday. the pattern's been a series of lower lows, lower highs. 44 is where it broke out from a few months ago. i think it trades down there. i think it holds. i think you bounce it for a buy. coming up another debt crisis closer to home has one long-time bull turning super bearish on two stocks in

particular that simultaneously lost nearly a quarter of their value in today's session. the analyst behind that call after the break. in the meantime, here's what else is coming up tonight on "fast." >> one hedge fund manager is crushing the s&p this year, and he's doing it by buying europe. he'll tell us why greece is creating the mother of all trading opportunities. and if you thought today was bad, wait till you see how much higher some traders think the fear gauge will go. the bet that's got heart rates pum sxpg adrenaline across the street. all that and more ahead on "fast." then it would be easy to know everything about that one breed. but in fact, there are over three hundred breeds of dogs. because no one can be an expert in every one... an app powered by ibm watson will help vets tap specialized knowledge in the cloud for every breed... and whatever else walks, flies or slithers through the door.

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turning now to the debt crisis in puerto rico and the ensuing blood bath for bond insurers, puerto rico's government saying in an interview with the "new york times" over the weekend that the island's debts are "not payable." that news crushing insurers like mbia and assured guaranty, which have more than $10 billion in combined exposure to the island's debt. bcig downgrading both companies to neutral from buy this morning. joining us now is the man behind those calls, btig's managing director mark palmer. obvious choice for you, mark, here? >> we think so.

frankly, up until last night our focus with regard to puerto rico was on puerto rico's electric power authority and whether it was going to be making a coupon payment on july 1st insofar as assured guaranty and mbi both have exposure to that entity. what changed last night was that while we were focusing on the prep of battle the puerto rico war became inflamed. up until last night we had based our view on the idea that puerto rico was going to do everything in its power to pay its general obligation debt. that was what the governor said to us during the state of the commonwealth address back on april 30th. so for a media report to come out and for the governor to say that the debt was not payable, that's a 180 degree turn from where he had been. >> guy? >> mark, it's a 180 degree turn i get it. here's a stock that traded 20 something million shares today pushing downagainst 6 bucks. at what point in terms of a stock price does every piece of bad news in puerto rico get

baked into the price of the stock? >> well, frankly it's not just the bad news in puerto rico. it's also the broader implications with regard to what's going on. our neutral rating is based on the uncertainty that has arisen at this point. one of the big questions here is how are the credit rating agencies going to react to this with regard to these companies in particular? if you look at what a bond insurer does, they lend their credit rating to municipalities so they can then lower their borrowing costs. right now assured guaranty is rated aa by standard & poor's, mbia is rated double a minus. if there's any sort of negative watch or outlook for downgrade from the rating agencies, this goes from being a puerto rico issue to being a companywide issue. do we believe that's going to happen? not necessarily. both of these companies have an awful lot of capital to absorb a hit. but we just don't know at this point. so we move to the sidelines. >> steve? >> so real quick, mark, how does ambac in the story between mbi

and mgo. is it different in terms of risking any of your money you're putting on the table? in terms of this sector. >> ambac they have 2.5 billion exposure to puerto rico writ large versus 4.9 billion for assured guaranty on a net basis and 4.4 for mbia. so they've got a lost exposure here. what comes down to is their exposures are different. in the case of ambac much of their exposure is to the sales tax bonds, the so-called cafina bonds as well as to the highway and transportation authority. one of the things that's really going to make this very complica complicated is there are so many different issuers and tran chz of debt. it's not a matter of simply looking at the general obligation bonds. you have to look at all of these different issues, understand what the potential recoveries would be, and then ultimately what the losses could be that would be borne by the bond insurers. >> okay. big moves, big day. thank you, mark. have a nice evening. mark palmer joining us there

from btig. how do you play this, tim? >> we follow mark's lead in that i think you're neutral on the company. i don't think you need to pile on but this is a $4.5 billion hit possibly if you think about their exposure here. part of the reason we're talking about puerto rico today is people think there's implications for the broader credit sphere, so that there's other puerto ricos out there. and this is a case where i think this is what's weighing on a stock like that today. as much as the very company-specific things that mark talked about. i would follow right in there, stay neutral. >> and if you want to be involved in this name, actually, we have huge put buying in mbia not that long ago and the 8 put stock was trading closer to $10 a share. now you get this day to day. it's down in the 6s. still a lot of activity out there, extremely high volatile name but some of those volatilities because of where the stock's trading at 6 implied volatilities can be very high and yet the premiums are very inexpensive. that's the way you want to play if you want to remain on the short side. >> inside the top performing hedge funds focused entirely on europe. how he's beating the market and what he's buying amid today's carnage. later on "fast," it's been a rough ride for the airline

stocks and the transports it has to be said. but is business actually stronger than it appears? we will talk to the ceo of hawaiian airlines in a cnbc exclusive and find out. never settle for verizon's overpriced gimmicks. try the un-carrier risk-free for 14 days you'll love it, or we'll pay for you to go back.

we're back on "fast money." stocks around the world getting slammed today as the drama in greece reaches a new boiling point. take a look at this video earlier nathens where protesters rallied into the night, the turmoil sending the dow lower by 350 points for its worst day since october 2014. the broader s&p turned negative today for the year to date. here's what's coming up in the second half of "fast money" this monday evening. another turbulent day for the airlines pushing names like american, southwest, and delta sharply lower. but the ceo of one airline company says business is actually better than investors may think and he'll explain why in an exclusive interview. and later, doomsday for the exchanges? well, something strange could happen tomorrow. and it could spell trouble for traders around the globe. we'll explain how the leap second could make y2k look like

child's play. let's start with greece as we inch closer to what could end up being greece leaving the euro. cnbc's deirdre bosa has the data on what the threat means for markets. a big question, deirdre. over to you. >> that's right, simon. we use kensho data to look at ways to play grexit fears and we found some findings, went back to 2012 and found 16 instances where it looked like grexit fears were riding high. the most recent being just this last friday. here's what we found, a few takeaways. one, the u.s. dollar usually outperforms other major macro assets. twor, oil usually underperforms. and we speak a little about this last week. but the u.s. benchmark, they don't move all that much when investors are fretting about greece. first let me talk about the greenback. when you look at it versus u.s. treasury yields, the benchmark indexes, precious metals, other major currencies like pound and the euro and oil, it is a clear outperformer. 75% of the time p trades higher and on average it returns about

.2%. most of the other asset classes that i just mentioned, they actually trade negative more than half of the time. like oil. over the 16 instances we found that oil is negative nearly 70% of the time. brent averages lower by 1.4%. that trend of course you saw that continue in today's session. and perhaps the most surprising thing we found in the data is as i mentioned that these grexit fears don't move the needle all that much for the major u.s. benchmarks. we looked at those 16 instances and when you average out the returns across all of them for the dow jones industrial average, the s&p 500, and the nasdaq they barely budge. so on days like today you'll see it move a lot. the s&p 500 lower by about 2%. but there's been days like one back in 2012 when the s&p has been lower by 2 1/2%. there's also days when the u.s. benchmarks are higher like the s&p was higher once by 2% when those fears about a grexit were riding high. simon, back over to you.

>> though to be fair this time round it could be for real. deirdre, we'll leave it there. deirdre bosa there with a view from kensho. how will a greek exit impact europe? a hedge fund that's going all in on europe and it's one of the best-performing funds in its category. peter tusler joins us now. he's the co-founder of the lucerne capital fund. peter, welcome to the program. i mean, so far it's been a great year for europe, but presumably that could change, as we saw today. >> well, the way we are looking at it is that actually the prime minister of greece has just given us a timeline. by calling a referendum basically we will find out between now and sunday whether greece will be in or out of the euro area. and we believe that either way it will be positive for the rest of europe. we think uncertainty is bad for the market. the uncertainty will be removed. probably sooner rather than

later. and we've been dealing with this greek problem now for the last three years. and we think we'll get a decision one way or another. >> peter, just to get -- there are others obviously that would dpis agree with that. some saying that would be the beginning of the negotiations. but let's say it's this weekend. if you looked at the price action particularly on the banks in europe today, a lot of people think it's more risky to hold them now after the weekend than it was before. so the price action would indicate that other people are nervous. >> yeah. other people are nervous. but when other people are nervous, that's when opportunities arise. we think particularly in europe the markets are very inefficient. so people tend to group think and they move in groups. it's at times like these that you have to really analyze the two different scenarios and what that means for the rest of europe. we believe that actually if the greek people vote no then we are

not in 2012 because the ecb has just embarked on a massive quantitative easing program, unlike anything -- anybody has ever seen. actually, as a percentage of the deficit is larger than the qe program of the federal reserve. it's a massive firewall they put up. and we think also g-- >> pieter. sorry to cut you off. congrats on the performance. for someone like myself who invests around the world you always have currency risk. obviously over here we talk about currency risk with the euro. maybe if you're investing locally not so much. how do you view the currency in the next three to six months in your investments? >> we hedge out -- so we are actually investing in euros, but most of our investors are dollar investors, and we are not -- we don't have a particular edge betting on currencies, so we hedge our euro exposure back into u.s. dollars. if i were a betting man, looking at the size of the quantitative

easing program in europe, the likelihood that the euro's going down rather than up, you know, the debts -- again, we're not making bets on that. >> it's good to see you, pieter. >> thank you. >> what was the but? what were you about to say? >> one thing is for sure, that a weaker euro is very good for european economies. for european exporters and there's a big multiplier impact on the european economy. that's another reason to be very positive. >> certainly one reason. it's good to peet you. thank you for your time. pieter taselaar, co-founder of the lucerne capital fund. >> couple things strike me out of that. deutschebank was down 7%. timmy mentioned earlier. this has been a statistic trade. the volatility in this name has been unbelievable. it feels as if now it wants to trade down to 28, a level it bounced from back in january. i think it trades here. you buy it here. and gold should have traded a lot better today than it did. here you have the dollar reversing and going lower. all the unrest.

gold up a meager five or six bucks is ridiculous. i'll give it another day. but the fact gold couldn't get out of its own way is -- >> coy get back to deutschebank. it closed at 30. >> i think it trades down to 28. 28 in january. i think it trades there again. i think it bounces from there. >> you've got implied volatility in that finally. some volatility in the marketplace. we talk about how low the volatility index is. i know this is not an s&p stock, this is not the vix, it's deutschebank. implied volatility has been on the rise. someone who wants to play along with what guy's talking about you start to take advantage of that volatility. you could sell something on the down side, you could look at a put, sell that down side, get you into that stock even cheaper. if you're right it hits 28 you might be able to enter at a cheaper place than that. >> listen to what pieter said for the weak currency. this is a boon for sanofi and bayer and basf. these are fantastic companies that i think are going to be stronger on the back of this eps momentum on the weaker currency from last quarter. they've got earnings coming up too. i would take a look at these names. >> you would think that if the

currency remains weak or if the euro remains weak, if there's other things hidden behind this grexit or whatever seems to happen or play out you would start to see some m&a activity with u.s. companies buying european companies, but that's a long way off and i don't know if you could really play it. i think the worst is probably still yet to come for those opportunities. because you get a weaker euro, you get a stronger dollar, maybe it makes it a little more attractive for companies at the bottom. >> i guess we kind of went through that with the tax inversion argument. >> exactly. >> ahead on the show, airlines getting whacked today along with the rest of the market. adding to a year of losses. but could a spike in summer travel turn the tables? coming up we'll talk to the ceo of hawaiian airlines in a cnbc exclusive right after this break.

airlines having a rough ride with jetblue, american, delta, and southwest, all falling with the price of oil. so what's really going on with those businesses? we've got an exclusive with hawaiian airlines ceo mark dunkley, who's live in washington, d.c. for more on the sector. welcome to the program. nice to see you. >> well, thank you, simon. great to be on. >> i know you're in a close period so obviously some things

we can't say. however, there have been some big moves in the airlines, many to the down side on concerns of price demand and capacity. have people got it right in general? >> actually, i think they've got it wrong in general. we're in a situation where the two real big movers of our businesses are demand, which remains robust, certainly in all of the jeegeographies that we operate in, and the proifs oil which as your show has just highlighted has been on the way down and is a lot lower than last year. these are two very big positives and there seems to be some short-term concern about supply or capacity. >> but that is very real if you look at what some of the big airlines have been saying. recently you had analysts in and you were talking about delta reducing some of its capacity maybe from japan. obviously virgin america is getting in on your patch. what are you telling the analysts about your own situation? >> well, what we're saying is it's as steady as it goes.

we've guided to up in the low single digits of capacity, which broadly speaking reflects sort of u.s. gdp. and then the gdp from some of the pacific rim countries that we operate out of. and we think that's roughly the right level of capacity. we see industry capacity. in general we think the positive impact of fuel and really strong demand in all the geographies, as i said, that we serve, more than offsets these issues. >> the international -- it seemed like the drag on the prasm was even greater there. can we talk about the domestic versus the international business overall? because a lot of people look at the international, the big carriers. say this is a place where the big guys continue to dominate. i realize you're operating in a different market space. talk about the strength of demand globally for your

industry. >> we're a pacific-based carrier. so i can really speak quite knowledgeably about what's going on out of places like japan and china, much less so around places like europe. out of these countries around the pacific rim, demand still remains very, very strong and this in spite of the fact that the u.s. dollar is appreciating against a lot of these currenci currencies. >> tomorrow in d.c. there's going to be a lot of discussion about the middle east airlines arguably being cross-subsidized by their own government. so whether that's fair. do you face the same problem from some of the big asian airlines who obviously are clearly subsidized from their governments as well? >> from our perspective in hawaiian we think the far bigger issue is creating free markets and open skies and maintaining those. we think that's a policy issue of much greater importance than whether some carriers get

subsidized by their governments or some are owned by their governments. certainly u.s. carriers have their share of advantages as well. >> nice to meet you, mark. always slightly inkong ruous to see a fellow englishman in a hawaiian shirt on the show that you're hosting. but nice to see you. mark dunkerly joining us from hawaiian. >> recently it's been very painful because they've been moving to the down side. hawaiian is one of those that's held up pretty nicely. but i think the one thing you've got to keep in mind is i think the next catalyst has got to wait for everybody to actually report their earnings. i think those numbers will be staggering. but to the point from the ceo just now, when you look at demand demand's still very robust. when you look at profitability i think that's going to be incredible. we'll see when the numbers come out. look for the july 20th week, that's when we'll see most airlines report. and that could be the thing that shift this sentiment that's been so negative. >> i've been pretty constructive here don't think an industry that spent two or three years or

maybe a decade getting their act straight is going to throw it out the window overnight. if you look at the charts you see delta at 41, united at 54, these guys are testing back to levels. this is how you should watch this. you have to wait to see the bounce off these levels before you chime in. valuationwise there's a very strong argument for airlines here and i would be taking a look at these. >> time for the highlights of our show. >> what's that? >> pops and drops. the big movers of the day on cnbc. a drop for qualcomm down 3%. guy. >> has not traded well. i think it had some positive headwind, some positive catalysts, some great tailwinds behind it. it has not. stock has traded from 71 after the activists talked about it. here we are at 64. it feels like it wants to push down to that 60 level. i think you've got to wait for it to get there because it feels like it's going to happen. >> a drop for humana down 1%. >> this is a name that's been caught up in this whole m&a that's been going through that whole sector with nah and cigna and all the rest of the names. will the regulators approve it? we all probably xn it.

they might get down toy abig three. i think that's favorable for humana. $250. this is a great opportunity. >> peabody energy. up 10%. >> that was off a headline epa loses at the supreme court. it's about emissions. it helped the utility sector as well. peabody still down 67%. this is my contrarian trade i never should have stepped into it. >> sysco. >> they are one of the largest players. a federal judge upheld the antitrust ruling that their deal with u.s. foods is not going through. this is a deal a lot of people thought was accreted to the company. i don't think this move is that major. $3 million buyback also news today for these guys. finally a pop for yes, robot love. >> what? >> on saturday japan held its first ever robot wedding. two robots came together in robotic matrimony all in the name of eternal computer love. well, that's until their batteries die. a japanese art collective

organized the event that showcases classic wedding glam with the couples in traditional outfits and even sharing a mechanical kiss. >> batteries die, huh? >> that's a little twisted. >> still ahead on the program we'll explain why one extra second could shape global markets tonight. all the details on how the world is preparing for the big event right after the break. plus a massive move in the fear index today as traders are betting it has more room to run. is it too late to buy protection for the market's sell-off? all the details coming up on "fast."

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cnbc's kate rogers has the details back at hq. good evening, kate. >> good evening to you. juno therapeutics surging in after hours trading on news that celgene will make an initial payment of about $1 billion including a stock purchase as part of a ten-year collaboration with juno on cancer and autoimmune disease treatments. shares spiked as much as 67% at the close. the stock has pulled back a bit since then, is now trading higher by about 40%. and juno ceo hance bishop will be live on "squawk box" tomorrow

morning for an exclusive interview at 7:15 a.m. you don't want to miss that. back to you. >> guy, you got very excited when you saw this on the ticker. >> we talked about juno, kite for a while. that is the future of cancer therapies. that's where it's all going. the science works. these stocks are volatile. juno was a $68 stock a couple weeks ago down to 345, ba45, ba 68. big short interest in kite, big short interest in juno. stay with it. celgene wins in this too but all three names go higher. >> just hours away from getting a bonus second, also known az leap second that's used to keep clocks in sync as the planet slows. this event typically occurs every three years, but this one is extra special but it's the first ever leap second to strike during trading hours since the markets went electronic. the extra second hits -- will you pay attention, tim? >> i'm sorry. >> the extra second hits at 8:00 p.m. eastern time. i assume tomorrow. is it tonight? just as asian markets -- >> tomorrow. >> tomorrow. with exchanges across the globe

trading electronically, could this be a doomsday for the markets? thankfully, we have somebody who knows about these things. >> sure. >> steve grasso's often on the floor of the new york stock exchange early to guard exactly against this sort of catastrophe. >> by no way, shape or form am i seeing that i'm speaking for the exchange, but i pretty much think they have this under control. they're sliding in an extra second here to back up and sync to what you just said, atomic time versus universal time. i think we're going to be okay. >> nice. >> remember the whole y2k thing. >> i do. >> we were very, very concerned about that and much ado about nothing. but the millisecond. there's a lot of places i could use that in my life. >> that would double up for you. double it up. >> moving on. the vix saw its biggest one-day spike today. mike kuo is thankfully in boston with the "options action." take it away, mike. thanks for saving us. >> sure. so we saw almost double the average daily options volume in

the vix, and one of the trades that caught my eye was institutional trading in the july 18-22 call spread which was trading for about 60 cents. what's interesting here is that that spread could be actually worth as much as $4 if the vix got up to that higher $22 level. so i think this is a very favorable way. wondering if there's still an opportunity to head. look at call spreads in the vix. all of this hysteria is propelling the price of those upper strike options so high that you can really reduce the cost of the lower strike calls you that probably want to own. >> pete. >> to mike's point, this is something -- we've had that low volatility for quite some time and we were looking down in the 12s. now there's even more excitement out there. there is a lot of liquidity you can find in the vix and get it in the spider puts. either way, however you want to play this, if you think volatility's going higher i'm one of the people who does. >> mike kuo from "options

action." meantime, coming up on "mad money" tonight, cramer's got a way to win in the face of the greek crisis. plus he's putting three of the hottest growth opportunities in biotech under the microscope and giving us his take on nike. after it crashed estimates for its last quarter. all that and way more. ahead on "mad money." your first move tomorrow when we return. more "fast" coming up. here at td ameritrade, they work hard. 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. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

rough day. but i've got your guide to winning in the face of the greek fiasco. plus my take on nike after crushing the quarter. and some of the hottest names in biotech including a stock up 60% just this year. "mad money" is next! here we go. it's the final trade. let's go round the horn. tim. >> relative value i think the iwm could be your short side against other things. but here again the iwm gives you implied vol to play in this market chaos. >> grasso. >> tenet healthcare. operates hospitals. up 18% since that favorable ruling by the supreme court. i think it has more room to go higher. >> pete. >> i like the way the health care names have been trading. they're holding right on that moving average and i think bristol-myers one of those names that continues to fight against all that pressure to the down side. bounces back. i think today's sell-off is a buying opportunity. >> guy. >> thanks for again simon filling in. >> i'm always filling in. >> you're the man. >> i am a substitute. >> no, you're not. you are the man. >> much better than a substitute

teacher. >> thank you. >> celgene! it's lower in the after-market. you buy on this weakness in the juno headline. >> i'm simon hobbs. catch more "fast money" tomorrow at jim starts right now. >> my mission is simple, to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. mad money starts now. hey i'm cramer. welcome to mad money. welcome to cramerica. my job is to explain this stuff, to teach you. call or tweet me. what the heck were those early morning tip buyers thinking. when the market looks