e that tonight at 5:00 p.m. tuel tyler? >> and that'll do it for the two hours of "power lunch." thanks so much for watching. melissa, great to be with you. >> good to be with you. "closing bell" starts right now. welcome to the "closing bell." >> welcome back i'm bill griffith. so is there a deal in greece, or not? europeans are trying to figure it out, greeks are trying to figure it out. stocks still rallying on greek optimism, but the dow is well off the highs of the session. and breaking a little more than half an hour ago, an hour ago, the justice department reportedly investigating airlines for colluding to keep airfares high. the impact this could have on the industry.

>> the first half of the year. facebook, meanwhile, firing another shot. new ad buying options. we'll debate whether this could be a game changer in the video world world. you're only charged. joining us for an exclusive interview to discuss how beer drinkers are helping the company's bottom line. another solid quarter from constellation. >> something we've talked a lot about with rob sands the last several quarters but this last quarter that he made an acquisition in the wine category. >> which hasn't been as fast to grow -- >> exactly. we'll talk with rob about that coming up later. meanwhile -- let's get the latest developments on greece. our chief international correspondent michelle caruso-cabrera live with today's "as the world turns," michelle? >> news breaking just the last

two minutes. reuters reporting that the ecb has kept the liquidity cap the same for the greek banks. it did not reduce it either. so it could have been far worse news for greece. it could have been better. there's going to be a cash squeeze going on in this country. the stock market may be rallying on hopes for a deal. there's no hope for a deal. everybody's gone home. the negotiations are over. sent this letter this morning saying there were all kinds of concessions he was willing to make. he then went on national television and said vote "no" on sunday. i'm telling you vote no. if you vote no i'll have a better negotiating position we'll get an even better deal out of the creditors. well, that upset the creditors. didn't last very long. and they said given greece's previous rejections given all

the issues we've had for the last seven months, the referendum and you're telling them to vote no we're all going home, we'll see you on monday, this is the dutch finance minister. >> there will be no further talks in the coming days nor between the greek authorities and the institutions on proposals or financial arrangements. we'll simply await now the outcome of the referendum on sunday. and take into account the outcome of that referendum. >> and so we all wait to see the outcome of the referendum on sunday. what greeks are voting on is a technically worded question about a very specific bailout program, but all the european leaders have told them listen you're voting on whether or not you want to remain a part of the eurozone. if you want to keep the euro or not. we'll see what they decide guys. back to you.

>> didn't mean to cut you off there. but my question to you was, it's a long three days until sunday. what happens up until that point as it looks like the current administration is going to rally against the vote while the europeans are telling them to vote yes. >> i think it's all going to depend sara on how the greek population reacts to a greater and greater constriction on the economy due to a lack of cash. already, we're seeing reports on greek television that the supermarket owners are concerned there's going to be shortages on the shelves. we know of people hoarding because this is a country that relies on imports. if you don't have a functioning banking system to pay out overseas suppliers, you can't bring in imports. you're going to have scarcity. that could get ugly. let's see how the population reacts to that. either thinking wow, we're desperate, we've got to get a deal, or maybe they react in anger and say, no we don't want a deal. back to you. >> did the polls still suggest that a yes vote is likely this

sunday? >> so the polls have shifted day by day. on saturday the yes vote looked to be a loser. but as days have gone on it looks like the no vote has gotten weaker and weaker as the banks have remained closed and the yes vote has gotten stronger. we'll see if that continues, bill. >> all right. michelle, thank you, as always. great job there talking about the impact on the world markets of what's going on in athens right now. let's get to our closing bell exchange for this day. michael bapis. he's greek, by the way. peter costa from empire executions is not greek, we've established. and neither is rick santelli. good to see you all. michael, what do you make of what's going on over there? and does it affect your investments at all here? >> correct. i'm very surprised at what happened. up until friday the referendum was called everything was

business as usual. now business has completely stopped as it relates to our clients and what we're advising them. let's move into safe investments and see how this shakes out. i feel it could affect the world economy. >> peter costa, is that what explains this slow fade from the open? the dow was up about 182 points. at one point in the session, now it's up still triple digits but really come off the highs here. >> well, it came off the highs and went down you know it was up about 75 and the markets rallied a little bit over the last few minutes. you know i do think that there's a little bit of banking brinkmanship going on with the prime minister. and i think they're gambling a little bit too much with their own economy. and i think that at some point, someone -- cooler heads will prevail, and they will straighten the whole situation out and it's probably going to end up where there's going to be a lot of strict controls on the

greek banks and government. i do think this will probably pass, but there's going to be a lot of -- there's going to be a lot of churning here you know because of it. we'll see it for the next couple of weeks probably. >> peter, there's been discussion this week about what has had the greater impact on our markets. is it the greek drama? or is it what's going on in china? what do you think? >> well i think what's happening in china, to me i think long-term is much more significant. but, you know for short-term. and i think a lot of you know a lot of the movements we've seen over the last week and a half, they're very short-term movements. and i think this is you know strict reaction to what's happening in greece. and i think once, like i said once we get past this the bigger concern will be china. and that's something we all need to be well aware of. that market sold off 22%. and you know what they're not -- not the u.s. funds were heavily, heavily invested over there. but there are some funds that were. and there's going to be some

problems going forward. >> at the same time, we're seeing a stronger u.s. dollar and higher treasury yields. rick santelli is all the greece distracting us from solid u.s. economic data? >> well i'm not sure there's been solid u.s. economic data. there's been some sequential improvement like adp or ism, but if you look at the six months of 2015 for both and look at the average compared to the final six months of 2014 it's hands down that the current six months is not as strong as the last six months of last year. end of story. we could look at many data points that reflect that. but i do think yields are up. because there's a bias for yields to move higher. greek issues are a distraction, but definitely the market plays. if you can prove to traders that there's a lot of water cooler talk about the u.s. woman's world cup team having a 10% positive effect on world equities if they win, i'm sure that would get programmed in

and we can trade that just like greece. but china, as was just said was the dynamic to pay attention to. and the bigger lesson from greece is lost on everybody. you know, the world's a big monopoly game. the reason it takes a long time you accrue a lot of property and possessions. and then you wind down in mortgage it and that takes a long time. that's greece! you know i don't know if it's all that different from illinois or new jersey or puerto rico just a different length as the monopoly game ends. >> okay rick very good. thank you all for your thoughts on "today's" market action. appreciate it very much. see you guys later. thank you, for joining us as well. heading to the close here we've got about 51 minutes left in the trading session. we're well off the highs of the session on that open. we had a strong open, but dow up 101 points right now. s&p up 10 the nasdaq up 17 points to begin the second half of this year. airline stocks are going to hit hard after the news that that the justice department is

investigating possible collusion charges to keep prices higher. not a lot of information here. we'll look at what it means for the sector and what it could possibly mean for airline prices. also ahead, constellation brands posting better than expected earnings raising its outlook for the full year again. ceo rob sands will tell us how one of the largest beer makers does plan to keep up with heavy demand around the world. that's coming up on "closing bell" bell". stay tuned.

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is in our service area. it's wonderful to work in the city where i live and help my neighbors and i feel like the work that i do reflects that every single day. together, we're building a better california. airline stocks are falling on the news that the justice department is investigating possible collusion to keep fairs elevated. >> if that is true it could mean big trouble and big fines for big four airlines. there i am, hello there. we're joined now by joseph. he's an analyst. it's caught everybody off guard, the stocks tanked initially, they've come back a little bit here. what do you make of this investigation, joe? >> it's hard to say at this point. it's not a huge surprise.

senator schumer said things in december about calling for an investigation to airfare. again, i don't think it's a huge surprise. obviously, the headlines are a negative for a sector. but it's tough to say the industry is colluding when the capacity is up 5%. and pricing is flat on a year-over-year basis. it'll be interesting to see what the doj has here. >> very short on details. we don't know anything specifically. but as bill and i were talking about, joe airlines are already lower for 2015. they've been hit hard this year. the fact they had a sharp reaction down on just word of this does that tell you anything about sentiment around airlines? >> yeah i think sentiment before these headlines, i think this is going to put pressure on the group. i think the concern is that the case on airlines was that capacity could start to be pulled out a little bit starting

in fourth quarter because demand has been weaker than expected. so, i think the concern to some extent is whether these headlines are going to cause airlines to re-think their capacity plans. >> typically collusion means you do this behind the scenes. we can't know they're colluding because they wouldn't do it publicly. the fact that they're pretty much all the same along various routes, similar routes, would that suggest that, as well? >> no, i don't think that's collusion. public airfare data is very public. and i think if anything, the competitive landscape in the industry is tougher now for airlines this year than it was the past few years. there's a very tough competition going on right now in chicago and dallas and seattle and a number of other markets. so to say that airlines are

playing nice with one another because of consolidation, i think is unfair to some extent. >> so joe, what is going on right now in the broader industry among airfare? it always feels expensive when i book a ticket. are they significantly higher than they've been? >> yeah if you look at average airfare data that's published by the d.o.t. you know inflation adjusted basis. the average airfare is down 10%. little over 10% compared to 2000. so flying is still relatively cheap. i think what consumers see a lot is if you go to buy a ticket two or three days from departure, you're going to be paying a lot more now than maybe you did five years ago. i think fares are still relatively low you know, if you can book far enough out. but certainly airlines are pricing tickets to supply and demand. and they don't really see any need to cut pricing in light of

lower fuel. and i think that's what part of what is causing the doj to look into this. >> all right. we'll see what happens. joseph, good to talk to you. thanks for your thoughts. >> thank you. meantime breaking news on auto sales for last month. phil lebeau has details for us. phil? >> bill for the third time in the last four months the sales pace monthly sales pace topped 17 million vehicles. crunched all the numbers last month and came up with a rate of 17.16 million vehicles up 3.5% compared with june of last year. and if you come up with the big four automakers, you might say, that doesn't look terribly impressive. up a couple of percent or down a few percent. they're comparing with june of last year which was a strong year in and of itself. the one automaker that stands out among all those reporting today is fiat chrysler. for the first time ever outsold ford when it comes to retail

sales. and by retail sales, we're talking about sales that are done through dealerships. we're excludeing sales to corporations, government entities, fleet sales. strip all those out, and for the first time ever fiat chrysler outsold ford at dealerships. and a big reason why is the jeep brand which was up 25% last year. i quickly want to show you where we are in terms of monthly sales pace. if you look going all the way back to january. yeah, we had a couple of down months in there. but overall, you will see that the trend is higher. and, again, the number you want to look at is on the far right-hand side of this chart. i think we're going to show it here in a second. that far right-hand side there, the estimate was for sales of 17.1 to 17.3. they came in at 17.16. second best month of the year. and clearly, guys you see the momentum there with sales topping 17 million. the expectation, by the way, is that it's going to stay above 17 million for the remainder of this year. so, it's interesting. few people out there, guys who

are saying sales weren't that great. 17.16, not that great. no, they were strong. >> maybe fiat chrysler's chairman will stop bugging mary barra for a deal now. he's doing just fine. >> no that's not going to happen. he's highly leveraged and he needs to make a deal. he wants to make a deal. >> hey, phil i wanted to ask you about this developing story that we got this afternoon. word of the department of justice investigation into the airlines. we don't know who is involved, right? and we don't know much about anything at all. >> united airlines has confirmed that it received an inquiry from the department of justice. my gut says it's probably the big four airlines that have been asked to supply some data there. and one thing to keep in mind guys. you were asking about, look when i book a flight it seems like it's more expensive. the airfare itself looks strictly at the airfare and you will see they have not gone up a whole heck of a lot over the last 20 years. what has changed is the availability of flights, and

that is certainly something the doj is looking into it. and when you book now, you are paying for a lot of things in the past you never paid for. flight reservation change baggage, when you board the plane. that's where the airlines are making their profit right now. it's not on the airfare itself it's on those ancillary fees. >> yes. which we certainly feel as well. good point. phil lebeau, thanks very much. on autos and airlines. 40 minutes go before the "closing bell." and the dow up triple digits, 105, off the highs of the days. starting the second half of the year in the green. up next, constellation ceo will speak with us. and a programming note for you. be sure to watch special coverage on "closing bell" of the aspen ideas festival tomorrow. that's where kelly is on her way to right now. she'll be speaking with the u.s. transportation secretary anthony fox, mexican billionaire ricardo selenas.

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stock prices are generally higher. wiping out yesterday's gains live at the nymax with details on that. >> good afternoon to you, bill. we did see selling pressure despite the action in the equity

market significant, we were under that $57 level. and what's interesting here is we were in that tight trading range. well appears we've blown through it. traders think this could be the beginning of a leg lower. why? well, we've got numbers from the department of energy seeing an inventory build in crude. fourth of july weekend, this could be the peak we no the u.s. is producing at peak levels. and opec estimated to be producing $32 million barrels a day. another record for the cartel. meantime, traders are also telling me that they are looking at the stronger dollar that is certainly another bearish sign for crude. and they are keeping their eyes on the iranian negotiations. there's been chatter that maybe there's a framework or draft deal out there. but if that does happen it could be the thing that puss crude further down.

>> thanks, jackie. >> thanks, jackie. brands slightly higher but losing gains. beating earnings expectations again this morning. strong numbers powered by sales of corona and maddela brands. >> joining us to talk about rob sands the ceo of constellation brands. we did get a surprise, though and that was a new acquisition. i guess the question is why make an acquisition in the wine category which isn't growing nearly as fast as the beer segment? >> first of all, the wine category is growing quite nice ly wine and spirits and craft kraft is taking share from

really domestic beer and it's one of the fastest growing segments in the wine industry. grew 50% in the latest 52 weeks. this is one of the fastest growing brands in both wine and alcoholic beverage in general. >> i was reading notes from your conference call this morning, rob. i don't know how -- how many quarters have you and i talked about the strength that you are enjoying in the beer category especially with corona modelo. this caught me here. during the first quarter, constellation beers delivered about 2/3 of the total u.s. beer industry volume growth. that's astounding. how much longer do you anticipate this sweet spot in this category is going to last? >> yeah, well, we -- we actually see this continuing for the foreseeable future. today, in our release, we increased our guidance, both in

terms of sales and earnings and in particular on the beer side we increased our guidance and said that we now expect our beer business to grow double digits for this year. so first quarter, the growth has been even beyond our own expectations, and at this point, we don't foresee that growth rate changing dramatically as we go through the year. we think it's -- we think it's a great thing. >> no it is a great thing. and you've seen higher margins, as well. one worry that some analysts have going through the notes is the execution risk going on during the expansion of the brewery and the $2 billion expansion that you're going through. can you give us an update on the plan whether you're sticking to it and the budget as well? >> yeah. you know, at this stage, the brewery project is completely on budget completely on time. we expect to bring up our first

5 million hecta liters of the expansion which is 6 million cases by the end of this year. we don't see any issue that would get in our way. because of the arrangements that we negotiated initially, we have alternate supplies for at least the foreseeable future should there be any issue there. but we don't perceive any issue at this point. so everything is going extremely smoothly. >> i noticed an uptick in the marketing for wine. your wine categories. usually my experience has been a company will increase their marketing when they're starting to see a sag in sales. is that what's going on? and what response are you seeing to this increase in marketing budgets for wine? >> yeah, it's really quite the opposite. our wine business in depletion term, sales to retailers grew

3.5% for the first quarter, which is very strong growth. and we think that is being fueled by the marketing that we've got in place for brands like robert mondavi and our black box premium wine brand. you know we've been able to do some very targeted research that is shown that in particular our tv advertising for these brands is driving sales growth even in the short-term, and we're actually seeing that. we're seeing that in our actual numbers, which as i said are pretty strong for the quarter. >> that's why you market. rob, good to see you. >> doing well as well. >> rob sands, ceo of constellation brands. >> we didn't even get to our favorite. mutually favorite alcohol, which is whiskey also doing well. >> i'm aware. >> next time. >> it is time for cnbc news update at this hour with sue

herrera herrera. >> hi. try it. it's a delicious wine by the way. here's what's happening at this hour. installation has begun on security enhancements to the white house fence. an anticlimb feature consisting of metal points have been installed on the top of the fence. it's meant as a temporary solution until a longer term one can be implemented. hillary clinton announcing a big fund raising haul in her candidacy. the campaign officially began in april. that rivals what president obama brought in in the first quarter of his re-election campaign in 2011. the denora webster bridge imploded sending debris into the river below. it was destroyed because repairs to the 106-year-old structure were too expensive. people lined both sides of the river to watch as the crane was brought in to remove that destruction. and tvland has dumped "the dukes of hazzard." it has been pulled from the

schedule. last week warner brothers which produced the series halted production of toy replicas of the show's car, the general lee. that's your cnbc news update at this hour. back to you guys. >> thank you very much. we've got 30 minutes left. here we go the final 30 minutes of the trading session here with the dow starting to move higher again, up 115 points at the moment. and up next we are down to those final 30 minutes of the trading day. find out what a top trader here at the exchange is watching in this key half hour. first trading day of the second half of the year. we'll be back on "closing bell." i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

check out shares of fitbit on a tare again. it could go up to $45. that's the price target. rbc there citing international expansion and corporate wellness adoption. fitbit, by the way, doubling the ipo price of $20 a share. big-time success. >> shares of fitbit will never go down. >> it's only gone up. >> joining me right here.

one-in the next 12 months is a defining day, i think. it certainly showed what the market can do. when it gets rattled in a great way. it got vastly oversold. maybe in the short-term i don't like where the market is positioned right here. the destruction was pretty vast. >> we went through a lot of support levels. >> we sure did. now we're trying to build back up for both of those. the important level, we got a trade of 207 and hold that for the futures. stay above 206.1. and the dow needs to get back

footing and the russell trading a the the 50-day moving average. if we can get back above there and hold there, i'll feel confident going into july. >> does it get quiet into the holiday? or are we going to keep an eye on the greek referendum? >> well, we're not going to get any news before that. obviously made an overture. the group said no way and he went back and started slamming the eurogroup. they're going to vote on sunday for what i really don't know. the only recommendation is strap your seat belts, fasten in we'll get back to work on monday and it'll be an interesting day. >> thanks, keith, very much. i'll see you later. >> stiff jobs report before that. puerto rico, meantime making progress in dealing with its own debt problems. kate kelly has the latest developments from san juan. kate? >> cautiously encouraging day for the puerto rican debt crisis km as you recall started off with the governor of the

island saying the economy was in a death spiral and came down to weather debt payments could be paid today. one is a set of obligation bonds of about 645 million. another, a key set of payments from the local pour and utility of about 416 million. while we don't have updates, there are quite a few of 100, 200 million or less. it sounds like a sense of optimism in the marketplace that things are going to get done. now, at the same time, the market seems to be showing its attitude in terms of the charts. if you take a look at the general obligation bonds with a majority of 2035 they're considered to be the benchmark when looking at puerto rico they've traded up a little bit. a little bit less volume in the bonds, the electric utility with the $400 million payment today. traders tell me the fact that they're not seeing a lot of trading volume in this name

today is actually encouraging, that means that people aren't necessarily looking to get out. i will tell you one funny thing, bill apparently yesterday at some point, there was a sale that went off of a paper for 53 cents on the dollar. 53. that was minutes before news surfaced about the deal going on with the creditors, cemented this morning. so thatting loos like a tough trade in retrospect. >> that's more like outsider trading. that's for sure. kate kelly, thanks so much. >> you win some, you lose some. >> eyes, right. >> that's a loser. >> talk about how puerto rico got into this mess and where it goes from here especially if you hold municipal bonds. >> joining us president and ceo at oxford capital and oxford advisers. keith actually raised capital and advised puerto rico's utility company. as kate said it paid did not

default. how big of a deal -- i guess how much of a relief is that with this whole puerto rican debt bomb? >> yeah sara and bill thanks for being here, it's good to be here. you know, i think that it's part of their ongoing negotiations with the creditor. they extended with that payment. the forbearance agreement. gives them several more months to negotiate with their creditors. part of that payment, the 416 million was lent to by some of the bomb insurers. contributed some, as well on a pro rata basis. i don't think necessarily they're out of the woods just yet. i think this is just a start of the process and it's just the tip of the iceberg. they've got $64 billion or so more to go to deal with outside of prepa. >> what happens to people that own these bonds? as i was mentioning before, you know, general obligation, or some of the specific funding bonds that are there. >> yeah, well, it wasn't until a couple of weeks ago or so and

more recently monday with the governor's speech to the people of puerto rico where they even talked about potentially restructuring all their debt including the g.o. previously it was the debt recovery enforcement act. about $20 million of that $70 billion representing about 9 billion or so of that. i think that if you look at prepa, for example, it's taken about a year since they first passed this debt act and started the restructuring process with their creditors. there are a lot of different trust agreements out there and the process could go on for many years. where the bonds are trading, just talked about the fear on the part of investors. >> insurers have taken a haircut in the markets. >> clearly. >> big time. >> what do you predict for the municipal bond market? how big of a crisis is brewing in puerto rico? and what should you do if you're exposed?

>> yeah well i think at this point, you know it's probably best to hold on if you can. i think the bonds have traded down significantly, generally across the board. the as you heard, they were in the high 40s or low 50s. in the last day or so the g.o.s and others are in the low-60s to mid-60s or so. you just saw a print is there. i would think you want to hold out and see what's coming. see what the process goes to from here. you know, i think it's going to be a couple of years before they resolve many of these issues. >> but you're being diplomatic and that's understandable. you know -- >> giving what you do for a living. if i'm somebody looking at these and i'm guessing they're not going to default on these bonds, they're at 69 cents on the dollar right now, would they be a risky but good buy here? >> risky for sure. i think there's definitely going to be while i don't necessarily

agree with it, i think there's other ways puerto rico could've dealt with this crisis than a haircut or a moratorium. i think there's going to be either a moratorium or a haircut on the debt. the governor talked about a three or five-year moratorium, which i think is likely to come. so if you can sit out and wait i think, that some of the bonds are attractive right now. you know at around 50 cents or so given the security there that this process with prepa is being dealt with independently of the g.o.s and other bonds out there. i think it looks attractive, but certainly risky and not for the faint of heart. >> it's not the cookie jar you're putting in there. >> absolutely not. >> thanks for joining us today. >> thanks for having me. >> 18 minutes left in the trading session with the dow up 98 points. up next, facebook giving advertisers a break, allowing them to pay for video ads when users actually view them for 10 seconds. interesting idea. >> tells us how big of a

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something new to like. the social media giant announcing a new pricing option for video ads that actually gives advertisers the option of paying for video ads only when they're actually viewed for at least 10 seconds. interesting idea. >> i think it's brilliant. that stock in the green today on that news. i a parentally, joining us us now for more on how the ad pays structure could impact facebook's bottom line j.d. miller, a director at strata an ad tech company that connects media buyers and sellers. thanks for joining us today. >> thanks for having me. >> i think they're trying to migrate people more to the video ads and, you know an advertiser doesn't want to pay if nobody's watching these things. >> it's a whole viewability issue right now. you have to be up for two seconds, at least half of the ad, facebook says no you know ten seconds full ad in view with 4 billion video views every day.

>> a google executive, what do you do in response to this? and how competitive is it really? for the ad dollars on video? >> well i think it is a bit of a game changer. it'll be interesting to see what google and others do as far as changing their viewability standards. now, google's come out and said only half of online videos are actually viewed. that's a big deal. facebook is making a stand on this. >> why now? is there something going on that would spur them to make this change to increase the amount of time? or at least hold the line on that 10-second minimum there? >> well agency marketers, they're the ones pushing facebook to do this. i don't know if they do this without the big push by them. and so -- and we're also entering a political season in video is key for political campaigns. social media, key for political

campaigns. you're going to see a lot more focus on facebook on this -- in this upcoming political career. >> and typically, how long does somebody watch a video ad? is it that two-second time frame? or is it something else? >> it's totally something else. we did a study with consumers, and they said, 75% of them said they don't know who the brand is within 3 seconds, 4 seconds. it needs a lot more time. and that 10 seconds could be that magic number. >> we'll see. we'll see. i don't know i usually don't watch for more than a few seconds. j.d. miller thanks for weighing in on this interesting new ad move on facebook. >> it reminds me of what amazon's doing now. you only pay for the amount of the book you're reading online. have you seen that? >> no. >> you don't pay for the whole book if you don't read the whole book. >> pay for pages. >> you pay for ten pages. >> who reads ten pages of the whole book? >> most people do not finish a book. >> i think you should always finish a book. >> i agree.

12 minutes left in the trading session. the bias is to the upside here. we have $500 million to buy going into the close with the dow up 115 points. >> we're coming off the lows of the session with the s&p up .6%, bill. up next equity markets seeing nothing but green today. we've got jason pride, the director of investment strategy at glenn mead. he's predicting the bull market is not ending any time soon. and he'll explain why when sara and i come back. ♪ 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. ♪

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eight minutes left in the trading session, the dow up 121 points. jason pride from glenn immediate. and we've been going sideways since early march. >> we have to careful on this. but the base case needs to be that equity markets will continue to rise. mainly for the primary reason that we are still in a longer term economic expansion. and assets really aren't that overvalue ed

overvalued, we're predicting a subpar gain since we're at 18 times normalized earnings. at the same time, that economic support, that ongoing momentum both in the u.s. and abroad should continue over the next couple of years. we're nowhere near done with this economic cycle. >> i guess the question jason, is what do you do about the international shocks we're getting from greece from china which could slow economic growth, at least abroad. and that will certainly have an impact on corporate earnings. >> oh, sure, sure. what we're recommending investors do is you do have a pro-risk position. you are overweight equities you get smart with how you're taking those risks. smart in our minds is you figure out where it's worthwhile to take the risks. and you're definitely taking a good amount of risk and policy mistakes and things like that. the valuations are discounted. we think that's fairly justified. looking at the u.s., you're

paying up for valuations. but really you could actually position the portfolio within the u.s. be more tilted toward defensive stable companies. paid basically the same valuation multiple build in some defensiveness, get the long-term equity gains. health care has been a good performing sector. anything but defensive this year with the mergers and l acquisitions and the obamacare impact and those things. do you stay with those sectors or look at some of the laggards and hope they play catch-up? >> i know this is a wishy washy answer, somewhat of the both. health care does fit into that defensive camp. but health care is also not a perfectly homogenous universe. you've got the high-flying biotech stocks and then the

stable kind of health care purveyors and pharmaceutical companies. some of those that latter part is more discounted or not as overvalued as the biotech side. so there's a way to play that within the sectors. so you can do that and you can also find look valuation opportunities are valuation opportunities. when you find the discount steep enough, that's interesting. one of the interesting areas that popped up earlier this year is energy. maybe it's not there quite as much as it was today, but it did pop up earlier this year and you have to be very specific with those positionings as the opportunities arise. they don't always stick around forever. >> that's for sure. jason, good to see you again, thank you. >> and energy actually is the only s&p sector bill in the red today. financials are actually in the lead. up next, we're coming back with the closing countdown for you. and after the bell sony looking to spark innovation by operating like a start-up. we'll explain. coming up a little bit later on "closing bell."

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highs, up 138 points right now. one sector that went the other direction, wpi oil was down 4%. and the xle, energy spider is down 1.3% today. >> and that's the sector down trend that we can't seem to get out of. remember how enthusiastic everyone was trying to buy oil stocks at the end of the first quarter. they were convinced there was going to be a turn around. they were convinced all of a sudden they were going to shut off production. and in the second half of the year or the fourth quarter, it would ramp up again, eventually. none of this is happening. turns out, we saw the numbers today, there's way too much oil. >> big build here in the u.s. especially. >> and opec is still producing a very big way. so, unfortunately, the numbers are continuing to come down in the second half of the year for energy earnings. and that was something people were hoping would eventually stop and turn around. 234,000 is what we're looking for on the jobs number. and the goldie locks number would be 250. the high was 266 a few months ago. my thoughts on this second half of the year bill.

the dollar stays down that's a critical point. if that happens, earnings will improve. >> thanks, bob. see you later. going out with a gain of 134 points, 140 to start this new quarter. and the second half of the year. much more to come now on this second hour of the "closing bell." >> in today for kelly evans. here's how we're finishing the day on wall street. a rebound for the dow, s&p and nasdaq on this first trading day of the second half of the year. the dow ending higher by about 141 off the high of the day, got up to 182. still, solidly in the green. s&p up .7% and the nasdaq up a little more than .5%. still heading toward down week overall on this holiday shortened trading day. let's bring in today's panel. cnbc contributor carol roth our own kayla tausche, and for more on today's trading action "fast money" trader with us guy

adami. hopes of a deal for greece. was that what drove the action? or the better economic data in the u.s.? >> both of those things, sara. don't play coy with me. >> bill! >> i just wanted your expertise. >> saying which one do you care about more, i guess, at this point? >> greece will get resolved because the -- they will take whatever sides will take the coward's way out because that's what people do historically. i think the economic data was better, yes, but you can make economic data look whatever you want it to look like. depending on your dogma. if you're bullish, looks great. if you're bearish, you'll point to auto sales. i'm of the belief it's of a mixed bag. the reason why, i think, the greek thing gets resolved in any way you want it to get resolved is because the bond market is telling you so. we saw the huge move to the upside on monday. yields spiked lower. and over the last two days, given it all back. the bond market is telling you that something's going to come

to an end with this thing one way or another. >> guy, do you think it's really the coward way out? or do you think there's maybe something more sinister at play here? maybe a ms. merkel loves this. loves the fact there's ongoing drama with greece because you know it does keep the euro down and does keep her exports very cheap. >> i think that's a great point. you know, what's funny about this. everybody wants to talk about how they want their currency to be strong politically it sounds good. but you know and i know everybody's out there, there's this race to zero globally in terms of currencies. devaluation going on now for the last 18 months. i think you're on to something in terms of the sinister side of this. i think they would love to see the currency to continue to get whacked. but be careful what you wish for, carol. you know that. sometimes, what you want is not really what you -- what you think you want and what happens are two different things. >> let's bring in speaking of greece and this cat and mouse

game going on. michelle caruso-cabrera for the latest on what's been happening in athens today. michelle? >> there is no deal there is no sight of a deal. the finance ministers came out late today and said they had washed their hands of the country because alexis said he wanted everybody to vote against it on sunday. so now we're going to wait for sunday's referendum. and then maybe the talks start next week. so we'll see how that goes. in the meantime the country is being squeezed for cash because the ecb's not increasing the amount of cash they are sending the country. so the pensioners all had to line up today to get only 120 euros of the monthly. they're not the only ones suffering due to a lack of cash. businesses are beginning to have trouble importing all kinds of goods. we spoke with the founder of a greek holding company called the

i group. and he thinks we're only beginning to see the tip of the iceberg when it comes to the cash squeeze on the country. >> look at it the tip of the iceberg, end of the day, you're looking at machinery, pharmaceuticals, fuel. all these are imported. therefore, sooner or later, that guy that needs to make the payment abroad and can't will start facing shortages. and that's where, i think, you get the second way, which is going to be even worse for the economy. >> this morning, our taxi driver told us first thing he did monday morning, he went out and bought as much baby formula as he could because the product is imported. and he wanted to make sure his daughter would have enough food guys. that's the kind of situation the greeks are starting to think about here. >> that's for sure. >> michelle thank you so much. michelle caruso ka-cabreracaruso-cabrera. and she's had it. >> it's exhausting because the news is coming fast and furious. every time there's a twist and turn. and you see it actually kayla,

in the markets and the reaction. and how volatile this week has been. >> yeah and it's interesting. incredible, really, to see the fact that we're closing in such positive territory even though as michelle said at the beginning, there is no deal. there's no deal in sight, but the market is so conditioned to everything happening at the last minute. and if we thought the 11th and the 12th hour hit us earlier in the week maybe we're going to have to wait until sunday or monday until there's actually a real sense of urgency to do anything. >> we're in the 25th inning in this game. this has been going on way too long. >> the world's worst game show. >> it does. i will say though it feels at the climax of this referendum. the greek population will get a chance to vote. and even if the wording won't be in or out of the euro they have made it clear that this vote is what it's all about. >> the vote they'll be an outcome, they'll make a temporary deal and we'll be talking about this again, whether it's a month, six months, a year from now. >> he loses his job, not happily and we have to start over again with a new regime at that point.

you've been following the banks, obviously, as we go into the second half of the year. to some degree they're affected by this aren't they? >> to some degree. due to outstanding exposure. in recent years, they've been paring back their exposure. the biggest banks have only about $2 billion exposed to greece a couple years ago. it shows you where they stand. you can't totally wipe out your exposure to greece altogether because it is in the euro zone. you will have some exposure to it. but they have pared back. >> talking about exposure to the euro and eurozone. we've got brand new data yesterday from the imf on how much the world is holding in currency reserves. here's what happened last quarter. the big money, the central bank managers who hold the world's currencies in the world are significantly reducing their exposure to euros and they're putting into it the other side of the chart, u.s. dollars. u.s. dollar is king. so the long-term impact perhaps

guy adami who i know will very much appreciate this chart is that it takes a toll in terms of credibility on the euro not to mention the fact that the ecb is going to have to stay in the game with qe and with accommodative policy. >> you're 100% right. and carol spoke to that. and apparently by the way, my hair is crazy and my twitter feed is blowing up because i had to go outside. >> we weren't going to say anything. >> you're a handsome man, guy adami. >> i think, i think that's what the europeans want to carol's point earlier. i think that's exactly what we don't want here. but that's what's going to happen. which is why these currency moves are the one thing you have to focus on the most interesting thing going on in the markets now, not the volatility in the equity markets, it's the unheard of volatility we're seeing in the currency markets and it can't be healthy. >> but we're going to have puerto rico and eventually illinois here. so you're putting it into u.s. dollars. this is foreshadowing of what

potentially could be happening right here on our own soil. >> yeah. debt crisis -- we're on double debt duty watch. guy, we'll leave it there for now because we want to get to this story that the department of justice is investigating possible collusion among major airlines to limit available seats and keep those airfares high. >> that news rocked the airline stocks initially. they've been writing record profits the last couple of years even though the stocks don't reflect that. let's go to chicago where phil lebeau has more. more details on exactly what doj's looking for here? >> not yet, bill. and i'm not sure we will get official details. what we are getting is a few more airlines saying yes, we have had inquiries from the department of justice, we are cooperating with their inquiry here. let's run down what this investigation is. at least what we know about it so far. pete williams with nbc has been talking with folks at the department of justice. and here's what we've been able to glean. this is a look by the doj into whether or not the airlines are

working together to limit capacity. you get the idea here. you limit the number of seats that would artificially keep the fares higher. the doj has sent letters seeking information. and we know to at least united airlines, and we assume to the other three major airlines in the u.s. that being american, delta and southwest. when we reached out to united nbc did, they confirmed that they have received an inquiry from the doj and will cooperate with that inquiry. take a look at shares of united today. officially the department of justice says we are investigating possible unlawful coordination by some airlines. another way of saying, they're looking at whether or not there's collusion amongst the airlines to limit capacity and therefore keep airfares higher. i get this question all the time. what's going on with the average airfare in the u.s. how much has it changed? take a look at the d.o.t. data. this is publicly available data. the most recent being in the fourth quarter of last year. and this is the fourth quarter going back every three years. it's only gone up 14% over the

last nine years. that's less than .5% every single year. so as you take a look at shares of delta american southwest and whether or not they're going to face further inquiries for more information over the next couple of months. keep in mind that what a lot of people complain about when they say it's costing more to fly, it's the ancillary fees they're complaining about. it's not the base fairs. the base fairs haven't changed a whole lot. it's the cost of baggage, it's the reservation change fee, it's the cost of boarding the plane earlier. that's the complaint that most people have when they complain about the cost of flying. >> all right. very good, phil, thanks very much. appreciate that. give us something to talk about here. i mean -- >> yeah, from my perspective, i feel like it's apples and oranges. if you're looking at a base fee from years ago ago, that was an inclusive fee. then you have to add on everything that you're not getting. so it really seems like it has gone up a lot. but at the same time, i kind of feel like it's silly that the

government is now coming down on the, you know so-called potential collusion. they're the ones that created this. they allowed the mergers to happen. the airlines don't need to collude, just look online and see that their two or three competitors are at this price and changed their pricing to match it. they have created this monster and do this over and over. >> well at this point, we know they're looking into it. >> what do you do with the airline stocks, guy? >> remember the airlines this has been an unprofitable industry forever. all of a sudden, they're making a couple bucks and some politician gets a bug up his or her rear end and go after the airlines. carol just said in the situation they effectively let happen. what do you do with the airlines now? clearly, they've been trading miserably for the last week or so for a reason. especially today when you saw crude oil lower. my favorite in the group continues to be jetblue. didn't have a great day today. but you look at how it's traded over the last six months it's caught up to the rest of the

rifle rivals. this thing reeks of more government intervention. i don't like it. >> guy, the question is, a lot of these mergers happened because the companies were in such distress they were overleveraged. in some cases, they were in bankruptcy. and they basically appealed to the government and said we won't survive as a company. all of these jobs will be lost. now, the balance sheets are healthier, they're becoming profitable, again. the business models look much less than they did in the past. i'm wondering if there are now going to be issues found with the arguments of some of these companies presented to the regulators years and years ago. >> again, i'm not an apologist for the airline company. they're profitable now. i don't know if there's price collusion. phil just mentioned exactly about prices it doesn't seem to be that much of an increase in prices. the cost of doing business does go up. but, i don't feel like i'm being being -- i don't feel like the

airline industry is abusing me in any way. now, all of a sudden again, a politician comes in, they decide that you know let's go after the airline industry when they finally have turned the corner. i think there's something inherently wrong with that. that's my view. >> that's why we love you. iron man, go spray the hair down and we look forward to seeing you next hour. >> i'll be here hair down. >> there you go. >> get it under control. >> we'll catch guy and the rest of the "fast money" crew at 5:00 p.m. eastern time. they're talking to a market technician who has two tech stocks that could beat the market in the second half of the year. we look forward to that coming up at the top of the hour on "fast money." meantime macau, that was supposed to help casino operators hit the jackpot, right? but revenues are plummeting as tourism heads south in that region. what's wrong with macau? and how can the slumping gaming stocks recover? we'll talk about that coming up next. also, sony trying to jump start innovation by launching a crowd-funding site for project developed by the employees.

but, is thinking like a start-up really a good idea for sony? kevin o'leary with thoughts and opinions as always. he'll weigh in a little bit later on "closing bell." i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

welcome back.

we have this news alert on the oil markets. sue herrera has details for us. sue? >> and reaction in the oil market, bill to an earlier news report which nbc news is now kind of shooting down. a u.s. official telling andrea mitchell of nbc news that the reports earlier today that foreign ministers will review a draft text of an iran deal is very premature and not accurate. as you may recall earlier this afternoon, the oil market moved pretty decisively on reports that there was a draft deal being circulated and being reviewed. nbc news' andrea mitchell is saying that apparently is not accurate. the u.s. officials saying it is very premature and not accurate. bill, back to you. >> all right. clarification, thank you, sue. meantime the gambling gold mine that was supposed to be macau is coming up snake eyes seeing a sharp drop in revenue. >> jane wells with the details and numbers. jane? >> hey guys you know bad news again. but a silver lining really

boosted shares. take a look at stocks. wynn way up. still trading around three-year lows. las vegas sands up 3%. mgm up half that much. revenues fell 36% a year ago to a five-year low. here's the silver lining or linings. it wasn't as bad as everyone expected. june results got stronger toward the end of the month, maybe as the summer tourist season is kicking off, and third even though a full smoking ban is in the works, chinese government has eased rules so that mainlanders can visit twice as often and stay seven days instead of five. so the feeling is that even though the government is cracking down on corruption there, it is easing these rules because it really does care about macau. back to you. >> all right, thank you very much for laying out some of those numbers, jane. we're going to talk more about it now. standard & poors who covers these gaming stocks. is it just that the bad news and

bad trading revenues have been factored into this group? and now they're prime for a rebound? >> well, yes, i think so. i think we're in the kind of early to mid innings of a multiyear correction for the casino companies that have exposure in macau. obviously an inextremely important market with cash flow for the major u.s. casinos. i would put this in context. while we're very concerned that the declines are occurring, which actually have accelerated, we would like to think over the long-term that the trends will start to stabilize. there's major capacity expansion that's coming in pipeline. >> what's going on there? i mean if las vegas has taught us anything through history, gaming is cyclical. we've seen booms and bust in las vegas through the years. you have a slowdown in the chinese economy, right now. you have this crack down on some of the practices there in macau. is that what's going on? or is it something else? >> well as jane alluded to the

government has a major crackdown on corruption and money laundering, which has adversely affected the segments of the macau market. we think though that we're getting closer to where we can begin to call a bottom. although, when you look at the stocks, whether it's wynn resorts, mgm, they're all trading near the historical averages or below, and we think that's still somewhat pricey. you know when you look at that market, there's still a huge potential that we see in the pipeline. >> this is carol roth. i guess my question is obviously, there was some movement on the news of the visas opening up today. but seems to me the corruption issue is a much bigger issue. if ooumi'm a v.i.p. and this is keeping me away from macau. whether i can stay for two days three days seven days doesn't seem to matter. and seems to me that's going to be the long-term impetus to keep

people away from the gambling. >> well you're partially correct, but i would also remind you that, if you put this in context, right? in 2006 macau overtook las vegas as the world's largest gaming market in terms of casino winnings. and that milestone is not about to be raised any time soon. when you look out over the next several years, billions of dollars that the chinese government is investing in infrastructure development bridges, or mass transit or airports. the major casinos are collaborating with the motel chains. they're all collaborating to bring on in a pipeline. so there's no indication that longer term that there's any major attendance concerns from main line china, hong kong et cetera. we think the market looks relatively attractive from a long-term standpoint. >> when you look at the stock of a las vegas sands, even with the gain today, it lost about $30 billion in market caps since march of last year.

you say we're in the middle innings, but i'm wondering, how much worse do you think it has to get before it gets better? >> we think the stocks will be under pressure at a minimum for the rest of this year. that's part of why we're expecting some major margin contraction, about 100 basis points per year. potentially into 2016. beyond that we think that a lot of the bad news will be already priced in. >> all right. good to see you. thank you. joining us to talk about macau. >> it was a brutal year last year for these gaming stocks. another one in 2015. we're going to talk about sony, one of the largest names in entertainment, of course. but the company now acting like a start-up and launching a crowd funding site. why that could be what it needs to keep innovating. >> plus lion's gate and hasbro teaming up to produce a game based on monopoly. has hollywood officially run out of original ideas?

who better to ask than mr. monopoly himself? kevin o'leary will be with us in a moment. stay tuned.

sony thinking like a

start-up and launching a crowd funding site. went live today called first flight. >> it's all in japanese right now. as you'll see here. the top of the headline there. but watch this. now it's going to focus in on the japanese part which means, i mean sony's been criticized for lacking innovation. the products that will be crowd funded on this site will only be available in japan eventually. but eventually, they do want to bring this worldwide, as well. and we should also note his beloved shark tank is a sony property. i presume this will not stop you from thinking your mind kevin? >> no that's what they expect me to do on shark tank. i would say, though. you think about consumer electronics. it is one of the most brutal industries on earth. you innovate you bring a product to market it immediately gets copied by others margins get crushed. you can lose whole categories as you think about cassette tapes that used to be owned by sony

with walkman's. most millennials don't know what that was. digitize it and put it out in ipods. so one of the challenges for a giant company that already has distribution and a magical brand like sony has is to innovate. it's to have somebody inside there, small teams build something remarkable that can breakthrough. something like that is happening right now within sony and digital 35-mil cameras. all of a sudden dominated by nikkon and cannon you've got this r-7, for example, that is breaking ground remarkable camera that's almost the highest resolution ever made for a 35 slr. who knew sony could do that? they need to do more. and it's developed by small teams. that's why they're doing this initiative. >> imagine if shark tank weren't a sony property. >> exactly. the interesting thing is i feel like more companies should be doing this. they should be looking at ways

to innovate instead of letting outside companies do that innovation and having to buy them at extremely high prices later on and have them run up. the fact is they're fostering this from an internal standpoint. they're fostering entrepreneurship. testing the market. i think it's a brilliant strategy. >> you're shaking your head. >> you don't have to do it like this. here you are putting some potentially brilliant ideas that could be game changers for your company or at least that's what you're hoping if you're sony. now you have them broadcast to the world. you're accepting other outside financial backing for projects being developed in-house. who gets to be the owner of these ideas if they end up being blockbusters. i like to think of something like google's 20% time. if you're a google employee, this is that fork loric thing where they encourage you to spend a fifth of your time developing something else outside your kor competency, and that led to g mail google news

something more productive than something where you're basically giving away the cow for free. >> that's a good point. >> i wanted to bring up the fact that also this week sony was in the news. went out and tried to raise $6 billion in stocks and bonds, something it felt confident doing with the stock up more than 50% so far this year. test the waters go out and raise cash to try to pour it into these initiatives. >> that begs the question whether people really believe in the turn around or if the stock really was up because of the monetary policy in japan. because the reality is that capital raise based on where the stock has been. if you do believe in it shouldn't have that kind of affect on the stock price. i really kind of look to do people believe? what they are doing there? or was this just one of the beneficiaries of the monetary policy in japan? >> hey, listen kevin, speaking of innovation i'm reading here how lion's gate and haassbro are

partnering to bring monopoly to the big screen. and we nominate you for uncle penny bags, by the way. there you go. >> you knew we had that. >> perfect casting. >> i would love to wear that top hat. that would really make me feel good. but i'll tell you why this is happening, the lego movie. if you go back and look at the success of taking a toy brand, something that was innovated as a toy to children over multiple generations that was a monster success, incredible irr as a film, low cost to produce, massive global appeal the concept here is the same. monopoly, we've all grown up with, multigenerational asset, brand known by pretty well every generation. you just need a good script you don't even need major stars and you'll get traction out of the gate. and hollywood needs this. for every time we celebrate hits, the fact is, it's a crappy business. the average return since the beginning of color movies has been 7%.

>> just jump on to a successful franchise. >> that's why he's uncle penny bags. >> i was always the shoe. >> thanks, kevin. see you later, bud. >> take care. >> you were the race car? >> i was the thimble. >> i was the dog. >> you asked. >> dependable, loyal. that's a good choice. >> cute little dog. >> and easy for casting, too. >> time for a cnbc news update, he said interrupting. let's go to sue for that. and here's what's happening at this hour. the california state water resources control board says that residential water use statewide has declined by 29% in may. it is the steepest drop since governor jerry brown called on all californians to conserve water. the trump organization has confirmed that it has been alerted to potential suspicious credit card activity. it says it is in the midst of a thorough investigation to

determine whether it involves any of its properties. president obama stepped from his limo in nashville to pick up a woman who wrote him a positive letter about her experience with the affordable care act. he invited her to a speech today, the president walked to the door greeted by her, kelly bryant gave him a big hug and they both walked back to the limo and on to his address. and one of new york city's most historic buildings will have a different look tonight. 30 rockefeller plaza will now be known as the comcast building. and for the first time in history, the nbc peacock, you can see it there will adorn new york city skyline. comcast is the parent of nbc universal. and this network and we are proud as peacocks to see that. that's the cnbc news update this hour, back to you guys. >> thank you sue, very much. the trivia before comcast, it was -- the building was? >> ge. >> ge. and be ever that it was?

>> i don't know that. >> the first name. rca. which was the founder of nbc. >> i can't start getting into the new york building too. >> get your history going there, carol. mortgage applications falling to the lowest level since early january due to higher interest rates. will a looming fed rate increase spell doom and gloom for the housing market. that's a big question a lot of people are asking. and we will ponder that when we come back. also house minority leader nancy pelosi usually criticizes republicans but now taking aim at a fellow democrat. senator elizabeth warren for saying that the white house is too soft on wall street. you won't want to miss this interview. john harwood did with nancy pelosi coming up later on the "closing bell."

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on demand tv shows and movies on all my devices. it's perfect for me because my kids are costing me a fortune. i'm going to cabo! [ music plays ] don't settle for u-verse. xfinity is perfect for people who want more entertainment for their money. oh look some new developments on greece. sue herrera has details. >> yes, i do. bill thank you. some of these comments from christine christine legarde to reuters kind of mirror merkel earlier. saying that right now it appears preferable that greece move towards reforms before the europeans provide any debt relief, which is basically the same thing that ms. merkel said.

she also says it is unclear where these greek negotiations stand. she says she hopes the greek referendum provides more clarity and certainty about the situation. she also says that the imf balance sheet remains strong and solid despite the fact that greece missed the payment to the imf. she says greek members are still members of the imf and the fund will continue to engage. and this last line bill and sara is very interesting. the reuters reporter asked her if she trusts her greek partners. and she responded that the imf has, quote, no choice who represents a country. not necessarily from my take anyway, a ringing endorsement. but there you have it. >> no, that's telling. the experience that the imf have had. keep in mind, greece missed the payment it was supposed to make to the imf last night and is officially -- >> she said that despite that that the imf balance sheet is

very strong despite that missed payment. >> right. she has to reassure the members, obviously. >> absolutely. >> that give their money to the imf. thanks, sue. home buyers and people looking to refinance starting to feel the pinch of those rising mortgage rates. >> diana olick in washington with details on that part of the story. diana? >> even though small rates are starting to affect applications. the average rate on the 30-year fixed rose last week to 4.26% from 4.19. that's the highest level in nine months. it pushed total volume down 4.7% week to week. re-fis down 5%. applications to buy a home down 4%. v these moves higher don't mean much. but here's why they do. specifically in today's unique housing recovery. its prices. core logic ran the numbers for us and found that for homes below the national median price, values have already surpassed

their peaks of 2006. they're up 10% just from a year ago. investors bought so many lower-end homes during the crash, they cleaned out supply and drove those prices higher. now, for homes above the national median not really. they are far more of them on sale. so they're only seeing 4% price gains and are not back to peak levels. that means buyers of lower priced homes, generally lower income or first-time buyers are so much more sensitive to even these kind of moves. >> my only question diana, is how do we know if it's being affected by higher rates. in other words, last time we saw a surge in mortgage applications and that was because of higher rates, as well because everyone was scrambling to get in before rates went even higher. how do we know if that's happening or the price shock and the higher rates are starting to filter through? >> no as we said back in may when the rates first started to jump higher you have these fence sitters who get nervous and they are trying to buy but don't know when to get in.

they see rates starting to get high they jump off. that's a very temporary effect as we always say. when you get down to rates being higher for longer periods of time and that continued move slowly up those are gone you're talking about real regular home buyers who are trying to get into a market on a budget and looking at that monthly payment. and as i said those higher rates are starting to affect them. >> and that is seeming to be what's happening. thank you very much. diana olick with the mortgage story. elizabeth warren committing a party foul. criticizing members of her own party for being too easy on wall street. well, now, house minority leader nancy pelosi sounding off on the accusations with our own john harwood. plus shark week america's longest running summer tv event runs this sunday. but can discovery channel win back fans after last year's controversial fake documentaries? we're going to hear from one of the underwater film makers behind the show in a moment. stay tuned.

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senator elizabeth warren criticizing democrats saying they've been too soft on wall street. >> and some of the comments did not sit well with house minority leader nancy pelosi who sat down with our own john harwood who joins us now with nancy ploesst pelosi's response john. >> one of the questions has been how many democrats are going to line up and follow elizabeth warren as she makes attacks on

president obama's nominees. and causes the administration of protecting wall street. i sat down for one of my speak easy interviews with nancy pelosi the house minority leader, and she said, not so fast. >> the president is nearing the end of his term. but he's starting to get more criticism from democrats. elizabeth warren went after mary jo white. do you think that is piling on, scoring political points at the president's expense? do you agree with her on that? >> no but i mean i'm not into what her case is there. people will express themselves the way they do. that doesn't mean they're speaking for the party. and i think -- >> some on the left think this administration has been too soft on wall street. the administration's been too close with the financial industry. do you agree with that? >> the financial industry doesn't agree with that. there may be a couple of people who say that, but that is not the consensus in our party.

we are here to protect working families in our country. we don't want exploitation of workers in international agreements. the low wages in mexico have brought down wages in the united states. and we just can't do that. we are one country, and whether it's our commercial interest, our value system and the rest always has to keep coming back to what is the strength of our country? and the middle class is backbone of our democracy. >> and, of course, one of the reasons why nancy pelosi as house democratic leader would distance herself from elizabeth warren's views is that the dodd/frank bill was pushed through as speaker. she counts that as one of her legacies as president obama does. guys? >> but elizabeth warren clearly, has everybody back on their heels on issues when it comes to wall street and, you know, on the one hand nancy pelosi talks about wanting to protect working families in this country. well nancy -- elizabeth warren is really making that a huge

part of her platform isn't she? >> she is. and she's influential. in the senate she's very hot on the democratic fund raising trail. democratic candidates want to appear with her. but she isn't calling the shots for the entire party. and she was making that clear. she outranks elizabeth warren on capitol hill. >> i know she's got a reaction to this story. >> you're asking me to pick between siding with senator warren and representative pelosi. it's like my own personal political sophie's choice. i don't even know where to go. in this particular case, obviously i'm with nancy pelosi. i don't think after dodd frank has come out and to see the cumbersome regulation not just for wall street but also for regional banks, community banks. the effects that has had on wall street and small business that you can say in any way, shape or form that the government has been soft on wall street and the constituents it affects. >> john this is kayla tausche. you mentioned that dodd/frank is

one reason why she might be hesitant to be so critical of wall street and the fallacy of some of the regulation but there's also this sense that she does need some fund raising from wall street. but i take it that idea didn't really go over well with her office? >> no, i mentioned that in the story. and of course, it's standard when you look at all of the ramifications of political stances that people take fund raising into account. because that's one of the realities of washington. and she's a veryfundraiser. and one of her aides says that's unfair. you shouldn't link her position on policy with her fund raising. and that's fine and i -- i was glad to have him make that point. >> it's interesting because hillary, actually came out today with some fund raising numbers and also tried to distance herself saying the majority came from small donors. obviously this is going to be an issue we'll see over and over again during this political

season. >> it is. and i would point out one other thing that nancy pelosi said while her aide was not happy with the idea that she was fund raising and that might have some connection. she also said in the same interview that republicans kowtowed to moneyed interests. >> wish we had more time. look at the time. >> we'll see how all the candidates have to walk the fine line. john harwood, for now, thank you. >> you bet. one of the biggest hits for television starts next week it's shark week already, everybody. and we'll hear from one of the film makers behind that series in a moment. be sure to tune into "closing bell" tomorrow live from the aspen ideas festival sitting down with the u.s. transportation secretary with walter isaacson and goldie hawn to name a few. you won't want to miss that.

♪ 40 years ago this summer "jaws" scared moviegoers out of the water and into the theaters and then in 1988 the discovery channel took note of america's continual fascination with sharks and launched "shark week." hard to believe that was 30 years ago. >> 30-plus years ago.

the deep sea extravaganza returns this sunday, as a matter of fact. joining us now at post 9 at the new york stock exchange one of the underwater filmmakers and producers for the documentaries that air during shark week coming up this next week. joe romero of 333 productions. good to see you. you actually get in the water with these guys? >> yes. we get in the water with sharks all the time. >> you make it sound like -- >> this is by choice. >> this is something i've chased my whole life. i've been obsessed with sharks my whole life. ever since i was a kid. >> what's the fascination we have with sharks? we've got shark tank shark week. we had sharknado here on nbc. >> i say it to a lot of my friends and stuff, but there's no panda week. it seems like this animal is a super iconic creature that everybody finds all these traits inside of that they are admirable about. they admire this animal so much. its beauty grace, strength. >> i think they're also terrified of this animal. >> we're facing our fears. >> we're constantly hearing about more shark attacks. i think they're above average, in fact. >> it's been bad this year.

>> this year has been above average as far as everything. water temperatures have been really high. the gulf stream traveled up really fast this year which brought a lot of crayfish and sea turtles. predators follow that. now with the ever increase of everybody going back into the water, it makes for a higher chance for an interaction. but all of these cases can be mostly proven to be like mistaken identity is what it really comes down to. sharks don't target humans as a food source. it's just being at the wrong place at the wrong time. >> you guys have such a cult audience that comes back time and time again every single year. how do you try and build on that audience? how do you try and seek out new viewers who are not as familiar with shark week? >> i think really what shark week does best is it educates people about sharks. i always meet little kids and stuff, like middle america landlocked states, and they know tons about great white sharks and all kinds of different sharks, and they ask me questions. and i think this is something that it's grown that way.

there's a steady like growth of information that goes out there to everybody about sharks and it helps people understand what they are. and they truly are really in danger. 70 to 100 million sharks die every year. that's about three sharks every second. as compared to about three to four human deaths a year by sharks. >> got to go. you've had a close call have you? >> well, i mean, we always get close to the animals and do all kinds of stuff, but not anything that's ever been -- >> you never feared for your life? >> not yet. >> thank god for that. we know you're also take up u.s.-cuba relations on sharks. >> this season yeah. >> that's a good one. thanks very much. joe romero. more "closing bell" in just a moment.

we are not finished with the breaking news. this time on puerto rico. keith kelly is on the phone from puerto rico with some details. what have you got for us? >> phil,er, i'm on the phone from san juan. i apologize for the background news. but we have break news about payments due today. puerto rican issuers have apparently been paid. this according to several sources. but also a press release from an mbia subsidiary. mbia of course being the bond

insurer, the subsidiary national financier and corporation which announces various puerto rico obligors have been paid all the required principal and interest payments on national insured bonds. i'm told national effectively insures most of the bonds that were due to make principal payments today. between this and two other sources i've spoken to it seems puerto rico has honored its $2 billion in obligations for july 1st, phil, and for the moment anyway they've staved off this debt crisis. >> that would be good news i guess, kate kelly. is there any other deadline that we need to look for from here? >> not in the immediate future. i think the key issue was prepa, the utility has extended its forbearance agreement until early september. we've got about a two-month timeline to see if they can make some restructuring progress. there is another wave of payments due in august from what i'm told. less of a high amount than today's 1.9 billion in total. but that will be something to watch.

as well the governor who has talked about the economic death spiral, as you know in puerto rico, has said that together a task force within puerto rico using lawmakers and other local figures to gather advice on how best to handle what he sees as this debt crisis, and they are supposed to put together some recommendations by august 30th. so it should be a pretty active two months or so. but nothing in the immediate calendar. >> so is this all a matter of brinkmanship that was going on before this or is this a huge surprise, we're getting word this debt was paid off today, they made the deadline? >> i have to say that's a good question, and having spent several days now in san juan talking both to local residents as well as some lawmakers as well as folks in the industrial community who are involved with these bonds, there is a backlash against governor garcia padilla who said we were in a death spiral, or rather puerto rico was, and that drastic actions needed to be taken. people think that was rhetorical flourish, that clearly the economy is hurting here but that there are steps that can be

taken to resolve the situation without saying the sky is falling. and today would be an indication that they do have the ability to pay. >> all right. >> thank you. >> we finish with good news today. that's great. thank you, kate kelly there in san juan. thank you, carol roth kayla tauschi. as always we enjoy vug on the program today. >> kelly's back tomorrow from aspen. >> this was not planned. yes, we match but -- >> it was so in sync. we don't even have to tell each other. >> that's it for "closing bell." "fast money" coming up right now. melissa lee, what's on tap? >> live from the nasdaq marketsite in new york city's times square this is "fast money." i'm meltsa lee. tim seymour, josh brown, brian kelly and guy adami. mcdonald's coming in dead last in the american customer satisfaction report but that could be a good thing and a top analyst will explain why. plus lagging the market. we've got two big cap tech stocks that could beat the market the rest of the year. and here's the best part. you probably use this company every single day. but first, to the