last week they'll miss payments coming up in the next few weeks. both sides are painted into a new corner just staring at each other. earnings are what matters. >> earnings are what matters. you brought it up scott. financials. the way they've held up held those moving averages jpmorgan citi, all of them are holding up well. halftime is over. "power lunch" and the second half of the trading day start right now. >> scott, gentlemen, thank you very much. along with mandy drury, i'm tyler mathisen. welcome to "power lunch." big comeback to the dow after dropping 165, then turning positive. we've dropped, we've jumped we've flipped, we've flopped. oil is getting pummeled today. there are several reasons though why, including china, greece and the looming deal with iran. just how low can oil go. much more on those two big trouble spots, klein and greece. does a day like today present buying opportunities in those two countries and here in the

seemingly more stable usa. but on greece markets now well off their lows. mary thompson what are people saying down there? >> while we are off the lows as you pointed out, don't get too excited and think that we're past the worst of it we are not. the dow was down 166 points at the worse www.point. right now we're down about 30. vix which popped up 10% at the open is now only fractionally higher after pulling back. this that is a fear index we watch here at the new york stock exchange. the story remains the same. we are seeing a bid in gold a bid in the dollar and we're seeing a bid in bonds today. again, the concerns about greece continue to be at the forefront of traders' minds but again they are waiting to see what happens tomorrow and throughout the rest of the week. china is also a concern and weighing on the markets. you can see that reflected in some of the weakness we are seeing in the energy sector down on concerns about a couple of things.

of course we had a higher rig count here in the u.s. but also concerns about global demand. the banks are in focus as well. in large part because what happens in greece and china may cause federal reserve to hold off from raising interest rates and a lot of bankers were hoping for higher interest rates as we head into 2016. it looks like they might -- this may not happen until 2016. again, depending on what the developments are in greece as well as any kind of positive response to all the stimulus that's happening in china. again, the dow is off just about 36 points. tyler, back to you. nasdaq on the way to a sixth drop in eight sessions. morgan brennan has been following the big movers. >> hey, tyler. right now we're down about 14 almost 15 points for the nasdaq composite. however, that's certainly better. repairing losses versus the 1% drop coming out of the gate this morning for the nasdaq. in terms of what's moving. we have a bright spot.

kraft heinz company. the newly emerged food giant up 2.5% since its debut this morning. seeing a bounce in biotech. those names started lower today but they've since turned positive. the nasdaq, biotech, etf, ibb is up .5%. that's led by a small cap called versartis. that stock is soaring. big cap biotechs all contributing the most in terms of positive points to the nasdaq 100 today. on the flip side we're seeing a lot of weakness in chinese adrs. chinese online search giant baidu is one of the big losers. that's on concerns about slowing growth in china and moves by the government there to basically stabilize or at least -- yeah i guess stabilize the mainland stock market there. that's pushing down j.d.com as

well. weibo is lower. netease, a social media etf, and that's pushing shares of that fund down 3% as well. bright spot kraft heinz. also biotech from the flip side. social media stocks seeing real weakness. >> we'll get more on china in a second. meantime, a bit more detail on what's happening with oil prices which are plunging by 6% on the back greece's no vote and also emergency measures in china to prevent a full-blown stock market crash all adding concerns at a time of global uncertainty. the euro currency taking a bit of a hit after greece said no yesterday to more austerity. banks still closed over there. greece's prime minister set to attend a major summit tomorrow with the eurozone to unveil new

proposals. michelle caruso-cabrera is live in athens with the latest. hi michelle. >> reporter: we've learned in the last couple of hours who the new treasury secretary -- or equivalent of the finance minister will be here in greece. euclid tsakalotos is his name. he's an oxford educated economist. fairly well respected among the ed educated elite here. there is just no way though tell's ever as as colorful as the former fm who resigned very publicly via his block today. it is hard to overstate the rocks star sta tis varoufakis had here in greece. any time he would arrive at the finance ministry or leave, he's be surrounded in this constant journalist scrum. just today we are on the balcony and we hear this melee on the square.

we look. what is it? it is yanis varoufakis leaving on his motorcycle. he's got his wife on the back and there are journalists running into the street almost getting hit by cars in attempts to ask him questions and shoot photos of him as well. that's a constant situation -- or was around yanis varoufakis. we've heard from the greek banking association today that the banks are going to be closed for two more days. that's despite what yanis varoufakis had promised the greek people that in fact the banks were going to open some time very soon. including the prime minister. he also made that promise. the stock market is going to be closed for another two days as well. and we are waiting for two things today. we are waiting to see what angela merkel says after her meeting with francois hollande. the more important individual is angela merkel because germany is where all the money is. that's who would foot the bill on a new bailout program for greece which is what they are

asking for. her tonality will say a lot about how things will progress over the next couple of days. the ecb began a phone call we understand about an hour ago about what they were going to do in terms of extending more or keeping liquidity levels to the greek banks at the same level, what would they do. that's another way to say, would they send more cash? so that way the atms might actually function for a few more days? we haven't gotten in he clarity on what was discussed or if they've even finished at this point. but those are the two things we are waiting to hear. guys back to you. let me run through what's been happening in china overnight. first of all, we saw certainly the shenzhen down more than 2.5%. the shanghai up almost 2.5%. but that's well off the initial huge gains early on in the session. to give you a little perspective here, the stock markets there still up big for the year but they have given back 25% to 30% over the past one month. chinese government now taking a series of unprecedented steps to

prevent a full-blown stock market crash. >> reporter: of a week's long stock market correction the government authorities here came in guns bladesing with heavy ammunition to try to shore up investor confidence. over the weekend, leaders, including the chinese premier himself, met and presided over meetings which resulted in dramatic moves. the brokerages here were mobilized to invest in a stabilization fund ipos were suspended and the chindz senese central bank wag called in to provide liquidity assistance to a bank who gets money to investors so they can buy more stocks. speculation has been that the leadership has been very concerned about the potential social fallout because a lot of the investors are new, inexperienced and have borrowed money on margin. the stock market saw massive gyrations. the shanghai market was up by 8% at the open before falling back and then closing higher by about

2%. and investors now have been talking about how they are very skeptical about the long-term impacts of a lot of these measures. many of them said that the government is going to have to do more to rebill confidence. eunice yoon cnbc beijing. what many consider a make or break week for the chinese market. what happens next? we'll check into greek etfs? why greek? why not? let's bring in cnbc contributor ron insana right now. you've been saying for quite some time forget greece. it is important but not as important as what is happening in china. >> just to put this in perspective, the market cap losses in china are ten times the size of greece's gdp. so -- and ten times the size of the outstanding greek debt. not that that would be very easy for europe to write off or absorb. greece is clearly a problem but china having fallen now 30%, what worries me more is the lack of response last night to what as eunice yoon described, bring

region out guns blazing to support the market then not having it work. >> if they. haven't run out of bullets, but the bullets aren't working. >> they may have run out of the most important bullets they would have had. infrastructure spending. they spent 6 trillion inn in the past several years on uneconomic projects. what can you do to stim lapt the economy economy i think the markets are reacting more to china than greece. >> how much of the market value lost in china is anything that we would describe as real? because china was up what? triple-digits over the past year. they're giving back speculative gain. >> let's remember 1987. the dow went up 1,000 points effectively almost doubling from

1987, falling 30% in the space of two months. that hurt. we went down 50% in 2008. that hurt. . chinese -- value of stock losses in china is about a quarter of their gdp. you don't want to get too much beyond that because it has a chilling effect on what consumers do what investors do and you know there is a circular relationship. >> you have been say inging all this together means potentially the fed will have to push any rate hikes here to next year. >> that's probably why the u.s. market is holding up. last night on the special we talked about the fact that the one beauty about the united states right now, it's not europe it's not china, it's not japan, it's not brazil. it is remarkably resilient, it is much more stable we are growing. the fed could put off that rate hike until 2016 if these situations continue to spiral out of control. so we have a back stop in place and both politically and economically we're far more stable than any of these other parts of the world.

>> do you think the fed then their hand is staked? >> i changed my mind on that. we started to see labor markets tick up. we saw inflation expectations move higher. but now oil prices are coming back down copper is coming back down and the global economy looks slower all of a sudden in rather rapid fashion. if china were to crash or no resolution to the greek situation, the fed would have sufficient reason no matter what's happening here to home to hold off. because a rate hike will also hurt emerging markets at a time when they certainly couldn't afford it. >> thank you. crucial week for lockheed and its super expensive f-35 fighter jet. that is next. greece and china, big uncertainties for investors right now. now add in earnings season. it is just around the corner. what can investors expect this time? dominic chu has some clues. >> so tyler, the big bess drivegest drive on earnings this time around will be the same as last time around. it has to do with oil prices.

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welcome back to "power lunch." weight watchers international rally today. potential losses for the struggling company coming in. currently up by 17%. google class a taek onking on uber. launching a service in israel

where commuters pay drivers a small fee for rides to and from work. luxury car and aircraft manufacturers rolls royce citing the oil prices. shares down by a whopping 8.3%. get ready for another big earnings season. expectations are not so high this time around. dominic chu with a look at what investors need to know. >> earnings season kicks off this time around. we are expecting maybe not so much in terms of profit growth. if you take a look at the expectation among wall street analysts right now we're only looking for about 3% earnings decline. so again, earnings declines for s&p 500 companies. that according to preearnings season estimates out of thompson reuters. if you're looking for weakness and strengths, the biggest drags and biggest boosts are these. these are the sectors to focus on. no price, energy has been a drag on earnings for a while. the energy sector in the s&p is

expected roo it noight now before earnings season to post a 66% drop year over year. consumer staples down about 3%. these are two of the biggest drags on earnings. where can you expect to see possibly the greatest profit growth? it is going to be the banks again. financials posting possibly a 15% gain if analysts are correct with their estimates. retail side with consumer discretionary stocks. that sector expected to post a 7% gain in earnings year over year. again, we're expecting an earnings decline, although modest. and these sectors are the ones that could lead the way higher and lower, be the biggest drags and boost to what's happening overall. it is the most expensive fighter jet program in u.s. military history. yes, we're talking about lockheed's f-35. jane wells is live in los angeles with more.

>> reporter: we're counting down the final weeks before the lockheed martin f-35 joint strike fighter finally becomes operational and a version going to the marines will be first. you are looking at images we just got over the weekend of the jet finishing an important test late last month. successfully dropping real bombs on targets in the california desert. the marines say 14 pilots used six f-35bs to drop 30 live bombs and "the training was hugely successful." this is one of the last tests to be completed before the marines make the jets operational. the air force is going through testing of its version, including live fire tests. those f-35as won't be combat ready until next year. then the navy is after that. it has been 19 years since the pentagon has been looking for a new jet. 14 years since lockheed finally got the contract. nine years since the f-35 took its first flight. and maybe this month, at last there will be no more testing, at least for the marine corps version.

it will be operational -- assuming there are no last-minute problems. mandy, it will be a huge milestone for lockheed martin. >> i certainly hope there are no last-minute problems. shares of lockheed sitting flat. a major shift is happening in housing. and it may be the new normal. but as we head out, take a look at how the major home builders are trading. most of them to the downside. home depot, kb home, all in the red.

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kate they should have sent you to paris for this. >> i agree. uber is suspending its lowest cost service in france. this after weeks of violent anti-uber protests brought traffic to a halt in paris and two top uber executives were arrested for violating french law. in a relouis uber said the shutdown was a direct results of the violence directed at its drivers and customers. company continued to say, "we understand that new technology is disruptive not just for established companies but for the people who work in them and their families. this is especially true and a time of high unemployment but we believe that there is a way forward that provides new opportunities for all drivers, including taxi drivers, as well as passengers who love the convenience of services like

uber. uber pop is different from uber's more common ride hailing service. pop drivers are not required to undergo any formal training nor have taxi licenses. uber's other service, uber x, that requires drivers to have licenses will continue to operate. french taxi drivers need to have training and licensing. shutting down services is a departure from the norm with uber which is no stranger to butting heads with state and local governments. it is odd to see them opt out of operations before they are required to by authorities. but few of the worldwide protests have been as violent at in france. >> kate thank you very much. let's look at what's happening with gold prices. which are getting ready to close. currently up by $9 hitting $1,172. if you wonder why gold hasn't gotten more of a lift from all the problems going on in greece

over there it is largely a political and economic crisis not so much a currency crisis. gold really needs a currency crisis to give it a lift. platinum copper and palladium, more economically sensitive metals are moving to the downside. copper down nearly 4%. in the bond markets, safe haven flows pushed yields lower this morning. the 10-year benchmark yield we hit 2.27% earlier on in the trading day. right now we're at 2.307. as for the 30-year long bonds currently yielding 3.101%. i think earlier we got down to 3.08% which was its lowest in about one week. that is your bond report today. by the way, little bit of trivia. do you know what the 2-year greek yield is yielding? >> 42%. >> 49%. oil taking a big hit. greece and china, that's a two-month chart.

greece and china sparking fears about global demand. prices have tanked more than 10% over the past 60 days. what are the big investors saying about where oil goes from here? we'll cover that for you. plus this could be the new normal in housing. a major shift happening right now. how it could affect homeowners like you. we'll be right back. when i started at the shelter, i noticed benny right away. i just had to adopt him. he's older so he needs my help all day. when my back pain flared up we both felt it i took tylenol at first but i had to take 6 pills to get through the day. then my friend said "try aleve". just two pills, all day. and now, i'm back for my best bud! aleve. all day strong and try aleve pm now with an easy open cap. hello. i am here to offer sophisticated investing strategies. my technology can help you choose the right portfolio. monitor it. and automatically rebalance it.

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hello, everyone. i'm sue herera. here is your cnbc news update for this hour pchlts barked by coalition air strikes, kurdish forces say they have repelled several attacks by islamic militants south of kirkuk. the militants attack several positions including the town of murah. the kurds saying at least 40 isis fighters were killed. the. south carolina general assembly debating the fate of the confederate flag. the senate taking up bill that calls for the lpgaflag to be removed from the grounds elsewhere for display. gopro has released a new

camera about half the size of its flagship camera. it will be available starting on july 12th and it is retailing for about $400. authorities in thailand announcing that they have seized more than 440 pounds of ivory hidden in luggage being shipped from the republic of congo to laos. worth $295,000. they were found at london's heathrow airport. that's your cnbc news update for this hour. i can see our kids playing with that gopro. >> theirs is bigger from a competitor i won't name. but they'll be wanting one of those for christmas. oil plunging on the back of greece's no vote but that is not the only factor driving oil prices low. when i say lower, i mean really lower. below 54 right now. that's down 6.5%. what's going on?

what are big oil investors saying about this stock? kate kelly joins us now. >> the heightened possibility of a grexit certainly adds uncertainty to the picture over all. but earlier in the day the your pen benchmark brent crude hit three-month lows followed in short order by wti futures which are now down over 6% on the day trading at mid-april levels. nearly a three-month low. traders say there is a general risk-off mentality in the market given what's going on in greece. concerns about china and about oversupply are also a worry. two key issues affecting the fundamentals curve -- the supply side. talks with iran which appear to be constructive and likely to result in additional barrels to be added to what some see as an already saturated global market and a surprise uptick friday in the u.s. rig count where drillers brought back 12 new rigs online after 29 straight

weeks of cuts. that's more than six months of cuts according to baker-hughes sucking trims in production in the face v this super cheap oil regime may well have ended. where it goes from here depends on your world view. some hedge fund managers have sounded a generally bullish tone for months suggesting that with the exception of some short-term volatility we aren't as oversupplied as people think and the lows of the year may already be in. others expect a weakness to continue into this fall saying the supply is still unmanageably high and the impact of a slowing china really can't be underestimated. >> kate, thank you. kate kelly reporting for us today. stocks still in the red at this hour. but they have bounced back from a big sell-off at the open. the dow industrials off about 83 points. that's .5%. the s&p 500 a little more than .5% lower at 2,064. the nasdaq roughly in percentage terms down the same amount as the s&p 500. stands at 4,979.

check the grek etf. down about 15% in the month. that's the greek etf. sara eisen is live in new york city with the former greek prime minister george papandreou. >> he was prime minister from 2009 to 2011 the early days of the greek crisis. outside the u.n. where he's just been speaking mr. papandreou always good to see you. this is your first time to react. first chance to react to the fact that 60% of the greek population voted no in this referendum. >> well, i myself voted yes. i hope that we would have a yes vote because that would make -- give us an assurance that we would stay within the kurn is i zone and i would think that we could also negotiate a solution. a no vote has to be respected, on the other hand. it does show the pain that the greek people have gone through.

five years of austerity, seven years of recession. we've had a huge fiscal adjustment which is adjustment youth unemployment and very high unemployment. you can understand people at some point become defiant we've just got to tell the world that this is enough. but that has put the prime minister in a difficult situation because he now has to get -- he has to go back and he lass to sit down and build up the trust, which i hope will exist from both sides, in order to find a package -- >> what is the likelihood that he can do that come back from the negotiating table after this no vote and actually strike a deal with the imf and with the eu and with the ecb? >> first of all, let's see what kind of a deal it would be. i think a deal which could have happened earlier would be a guess atrophies cal consol fiscal consolidation. we aren't talking about a haircut on the capital, but on

the principal but also on the interest rates, maturity longer maybe grace period which would then lessen the burden on the greek economy and allow the greek economy to grow. and there is a program, the so-called yonker strategic investment program which has been pledged billions of dollars for development. the government retention over the past five months instead of growth which we did have just a few months ago. of course with the capital controls on the bank that's created a completely new situation and completely new fiscal situation for the country. so in fact we're going into negotiation in a much worse situation financially than we were before. >> what is the likelihood that they cannot strike that deal and that he will not find sympathetic voices on the other side of the table, and greeks will have to exit the euro? at this point what's the likelihood? >> i would hope that we can rebuild trust.

he has now convened the leaders of all of the opposition and they have signed on to a deal to support a new agreement. therefore the new agreement would be sporped byupported by a very wide consensus of the greek political parties. that's very important for the creditors to know, if there is a deal struck it will be implementeded. it will not just be up to this government but it will also be a much wider -- >> but you have to factor in the chances right now some wall street firms say it is the base case scenario that greece will leave the euro. what does that look like? >> that would be -- i believe that would be quite a dramatic situation for the greek people because we have now gone through the adjustment in order to -- the euro is very important because after the adjust. we were going to have the advantages of being in the euro stable currency lo interest rates, sense of stability for investors. we will lose that.

the drachma will also mean most likely huge devaluation, hitting low-income middle-income, inflation, loss of gdp. this will create instability so i think it will be very bad. now will it be -- will the markets react? i have heard that the markets have basically factored in the possibility of greeks sliding into an exit from the euro. however, medium and long-term, this is a political issue, will undermine the cohesion of the european union it will be a bad plame game within the european union, some bad feelings. and i think that will have an affect on the further integration of the european union. >> as we are speaking chancellor angela merkel is speaking. she has just met with fra swa oncois hollande of france. angela merkel saying the door remains open. >> that is an important statement. she also said the referendum was a breach of the basic idea that

yes, solidarity we helped you, but on the other hand you have your responsibilities. i think we've got to -- that reciprocal relationship has to be mended again. i'm glad she said the door is still open. a no vote of course -- >> do you think she could oversee really a break-up of the euro on her watch. >> >> i'm sure she does not want it on her watch and for her legacy to see a breakup of the euro. even if it is just one country. i'm sure that she would want to see greece remain the eurozone. the greek people want to remain within the eurozone. this is maybe the peculiar contradiction. the greek people when they voted no, the majority felt this was not a vote to leave the eurozone. it was simply a negotiating tactic which was what the argument -- the alkmentrgument of the prime minister actually said. they do not feel that this is going to kick them out of the euro. both sides actually do want to have greeks remain within the euro. i think that -- if there is a

common will there should be a common way. >> we've seen the will before. i know you are going back to athens. your money in the greek banks zp. >> my money is in the greek banks. it is. >> it's staying there. >> well, you can't pull it out now anyway. that's one of the problems we have to deal with, the banking system. get liquidity into the banks and restart the greek economy. >> had you moved your money away from greece in the events leading up to this? >> no i didn't. >> should prime minister tsipras step down to help the negotiations? >> well, i stepped down some years ago simply to create a coalition so that the program would continue. if -- i would say to any politician politician. >> so he should. >> i didn't say he should. i'm just saying if you want to serve the national interests, you have to put your national interests ahead of your own personal desires or history or ambitions. that doesn't mean that at the has to step down. i would say now that he has a mandate to go and negotiate but he also has a mandate from the

greek people not to break up with the eurozone to find a package. he has mandate from the other parties of the opposition to find a consensus with our partners and then move on to the implementation. >> would you run again if you were called back zp. >> i would do anything to help my country. my problem is not returning to power. that's not my quest. my quest is helping my country in a difficult time and that's what i tried to do, both when i was prime minister but also when i was in opposition. >> thank you very much for your valuable insight after this day after greeks voted no in the referendum. you just heard the former prime minister george papandreou who himself voted yes. >> very very interesting conversation, sara. let's go over to cnbc's chief international correspondent michelle caruso-cabrera who's live in athens. let me begin with a couple of questions. we've just gotten word the news flash out of paris that angela merkel of germany has said "the door is still open" to discussions with greece. a few minutes ago i heard you say that her tonality was going to be really really critical

here. so i'd like you to comment on that. and also address the matter which prime minister tsipras of greece said, and that is that a no vote would strengthen his hand in negotiating with the creditors. does he have a stronger hand and is that potentially why miss merkel is responding as she has? >> reporter: so i'm going to add a couple of more angela merkel xlents to the one of just said, " the door is still open to negotiations. yes. but she also said there has to be a credible proposal on the table this week. she used a little bit of code that you'd have to be a european to understand. the conditions for talks on an e efn program is not on table at this time. the greeks must ask for the esm.

the european stability mechanism. so far rgeverything greece has ever presented does not qualify for an esm. she's saying you have to do all of these things and nothing we've ever seen from the greeks even the supposedly close proposal, is in you have at this point. and because the situation's gotten even worse in the last couple of weeks because of this referendum announcement they're going to have to bring even harsher proposals than we have ever seen. she's going to say, of course that they're hope to negotiations. she's going do listen. but after that they're really going to have to see something solid. i'm not sure that it ever gave tsipras a better negotiating situation if he got a no. there are so many rules in place and the germans have their own political constituency that also vote as well. and so you have two different sets of voters fighting especially via their politicians. i'm not sure that it actually gives him any more power at this point. we have a guest here that we

want to talk to. >> sure. >> go ahead. >> i was going to ask you, how far apart really are the two sides? >> so they'll tell you that when it comes ton money, they're not that far apart. and that would be okay at least two weeks ago they weren't that far apart. except the criticism from the europeans was, all you did was raise taxes dramatically again, and you actually didn't cut spending in places that you needed to do so nor have you reformed the economy in a way that eventually is going to grow so that you'll have consistent tax revenue. so while they have gotten closer and closer on the numbers, style is still an incredible issue at this point because they don't want to be coming back year after year after year to greece. they want greece to be in a position where it can actually begin to produce its own tax revenue. >> all right. you have a guest you want to talk to. >> yes. let's bring in anastasio, a

group investor associated with the young presidents organization, ypo, president of the european region. good to have you here. we want to talk about the impact of the capital controls on the economy. you have employees. >> yes. >> are you able to pay them? >> we're able to pay them but the interesting thing is for the first time in my business career employees are actually coming and saying don't pay us. so the idea is don't pay us we trust you more. we do not know what's going to happen with our deposits hold on to our money until we get some more clarity. >> we should give you some context in colors. there's intense rumors hear about whether there would be a bail-in of the greek banks. in other words are people with deposits in the greek banks going to suffer a dramatic haircut on their deposits. they're telling you don't put our money in it the banks, hold on to it. >> i think it the idea is they

trust their employer more than they trust the government. even if they receive the money in the bank they can't withdraw. they're past the 60 euro if they can find money in an atm so they would rather you hold on to it until there is more clarity. >> how about the ability to move money from bank to bank at this point. we talked about the inability to get cash. say i want to pay my rent. can i do a bank transfer online to my landlord? >> you can but it is becoming worse and worse. first days of the capital controls you could move any amount of money so long as it stayed within greece. as of today that has been capped at 15,000 for a few banks. still your rent becan pay, utility bills you can pay. it seems to be the transfer amount is declineing. >> let's understand why you would be incentivized to do that on the population. if there are rumors about one bank being worse off than the other -- >> you'd be inclined exactly, to pull as much money to a bank that's going to receive less of

a layer cut. because there is no clarity, all the banks would probably have the same haircut or would it be different. we saw in cypress varying degrees of haircut. a middle class individual suffers less than someone who is basically living on a cash society. right? the imposition of the capital controls is really different from an upper class person to a middle class person than someone who lives pay collection to paycheck. >> if you just read the referendum result that's reflective. if we take numbers, average salary on a per day basis for the average guy is 23 eurozone. even if you have that atm limit at 60 euros, that's more money than they have in event. hence, you saw a lot of people voting saying we don't have

that earning capacity in any event. >> the report that a lot ever the atms only give 50 euros because they're running out of 10s and 20s. and there are great concerns if there is not some kind of increase from the ecb in the next couple of days, you'll unable to withdraw any cash from any of the next atms in the next 24 to 48 hours. on the balkfully in athens. back to you. >> imagine the level of stress and strain if you are an every day greek trying to get money to buy the most basic essentials. let's talk about who has exposure now to greece. eric, what did you find? >> if you look at greece here's the first developed country to be demoted to an emerging market. that's been a totally different investor base for the country. if you take a look at this chart, you can see where it happened at the end of 2013. basically all the developed market investors, they got out. emerging market investors got from. $1.7 billion in reported equity

exposure to greece with another quarter million dollars in fixed income. of a switching to emerging markets, major investors sold emerging players. they were the ones that came into the game. even with the massive shift you saw the fixed income is where the volatility has been. equity has been pretty consistent. >> what happened to 2014? >> this is based on the beginning of the year. if you look at the number of funds that are invested these are institutional funds. not government you funds. this left the door oup forpen for these emerging market players. these aren't the same investors from before. these are the active developed market buyers. these are the active emerging market buyers. there was just a big gap they all got out. these guys all got in. the point is that if you're looking at this trade over the last five years it is not even the same people who have been involved in that trade. it's a totally different investor class. that's what makes it really

interesting. these are the guys that knew what the risks were when they came in. >> eric thank you. more on this story at powerlunch.cnbc.com. stocks are in the red. let's look at what's going on. the dow is now down by triple digits. today it was down 165 the low. do we buy the dip? back in two minutes with analysis. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company.

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pointed out, was much tougher than that. . it was like saying sure those are the terms. but the terms still seem very stiff. >> they have to meet the conditions for the esm program, the european stability mechanism, which has all kinds

of rules. i mean if you get relly tough in the interpretations of the rules, you could say that the greeks don't qualify at all because theoretically under the rules right now, a country can only qualify for the esm if their debt is sustainable and if they do not -- and only if they pose a systemic risk to the rest of europe. well, greece has argued over and over again that their debt isn't sustainable so in theory this he don't qualify. two, you've seen the reaction in the markets today. i mean it's been pretty tough but it's hardly cataclysmic. it doesn't suggest that greece is a systemic risk. if they want to be tough on the greeks they could say you don't qualify for a bailout program at all under those circumstances. it's probably somewhere down the middle. >> michelle caruso-cabrera live in athens for us. dow jones also reporting right now that greek banks have sufficient collateral for current emergency loan levels despite the rise in the haircut.

this according to the source. interesting within this headline there's also this word "rise in the haircut." michelle reported there is lack of clarity. dow jones is reporting a rise in the haircuts. more reaction now from mary thompson to these headlines from the new york stock exchange. >> reporter: it looks like there's a subtle tightening of the screws on greece when you look at merkel's comments then the news from the ecb about that emergency loan program as well. the dow jones average but down 85 points whether these headlines came out, now it is down 102. a little bit of an acceleration to the downside. but right now just take a look at the vix and see how that's been reacting to the news. as we opened the session, the vix popped up about 10%. it's since moved up and now up 6% to 8% right now for the vix. again that's a fear index that we watch here. the sectors leading the markets

lower today remain the same. seeing continued weakness in energy because of the pullback in crude oil. not particularly about concerns about greece but the chinese government and also concerns about -- or offering ways to basically stem the decline in the stock market. that's keeping pressure on energy which is one of the weaker sectors along with industrials and telecom. transportation average also weaker down 76 points right now despite the strength or weakness in oil. we are seeing airlines looking a little bit stronger earlier despite the overall weakness in the transports. the dow is down about 101 points. back to you. >> thank you very much mary thompson at the new york stock exchange. mary mentioned the weakness in oil. wti is really falling. now down 6.5% as we are about 35 minutes before the close oot the nye my next. brian kelly joins us now by phone. there is a lot to digest right now. you put out a trade last week

you've been long euros for a while. are you still long and why is that the trade now? that seems to be the contrarian trade. >> yes i am still long the euro. for me if you look at just what's happening, the big trades in the market let alone the economics and fundamentals of it everybody has had this trade on whether long european stocks short the euro betting the ecb will come out with more qe and it will will be just like what happened here in the u.s. but as greece has come along and the risk has risen you have all the european stocks falling. when that happens all these funds have to unwind their short positions. my long euro call is based on a short covering rally. you not only have big global macro players but you also have a lot of these leveraged etfs hedg those are also hedged. if people pull money out of those funds they'll have to close their short positions which result in a short covering rally. >> moments ago we got breaking news from the ecb that they would adjust the haircut for

loans and dow jones is reporting that it would be a rise in the haircuts. michelle caruso-cabrera is reporting she believes that's how it is going to have to happen. how does that influence how you are trading and your view of european stocks in jem? is the thinking that the ecb will be tougher on greece? >> it sounds that way. i'm on the phone with you trying to read through it the press release as well. let's just assume that the ecb is saying that to the greek banks, bring the money to us and we'll loan them less. the money has to come with somewhere. this is a potential precursor to a bail-in. that's something i would watch for over the next couple days. >> brian, thanks for phoning in. u.s. stocks continue to drop. mary thompson reported as well following the reports of the greek referendum and the comments in just the past hour. brian bellski.

>> have any high schoolers or teenagers at your house? this sounds almost like we're trying to tell high schoolers what to do. right? we're trying to say know your ground for two weeks, no. three weeks? now we'll put you on double probation. they're giving us wait what? that's what the greeks are doing. we don't want to ruin the family. we're all going on vacation. but they have to be disciplined. europe can't overparent. right? and so they're just kind of increasing their grounding. they're grounding three weeks versus two weeks, and high schoolers don't like that. that's causing some of this duress in greek today. >> how worried do we need to be if we're american investors? do we need to worry about this in a big way or not? >> we really don't think so. what i'm more worried about are investors that have less

america -- okay? you take a look at fund flows the last quarter or two, we've seen flows out of america and into europe. now europe's outperforming this year. i get that. but the question i keep asking everyone is what's the fundamental reason. and don't tell me qe. okay? because at the end of the day the fundamental constructs of companies in europe are much different right now than what was happening in america in 2009-2010. oh brian, what about etfs? well what are etfs? a roll-up of a bunch of companies. we believe we're heading into an active invest region environment, kind of stock picking, owning select 35 to 40 stocks then portfolios -- i like to call it the peter lynch/warren buffett era of investing like the '80s and '90s when i grew up in the business. if you buy a european etf, you are not buying the companies that matter. you're buying a roll-up of companies and that's where the risk is. >> talk about whether you think greece stays in the euro or gets

out and would that change the dine application in a major way? >> from a fundamental perspective ssit is a moot point gaus because it is such a small part of gdp. the stock market is a psychology gain. it is more of perception versus reality. the reality is the fundamental construct of what's happening in greece to the rest of the world and to europe is nil. you asked earlier about the domestic side. we've heard about other multi-national companies having issues with respect to europe. i think it will be more of a european issue more than it is a greek issue but we have to fall back on our country here in america still has the best companies from multi-national and the domestic side that we think many investors have been ignoring for several years now. >> thanks very much for stopping by. melissa, over to you. >> lots of breaking news so far. we're just getting started here on "power lunch." here's what's on your menu for the rest of the lour.hour. gopro rolling out its

smallest camera yet. we'll get a top analyst take ahet.a ahead ahead. why you are about to pay a whole lot more for health insurance. and more on greece, the state sf jobs in america. i take prilosec otc each morning for my frequent heartburn. because it gives me...

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we're watching a close -- we are watching oil very closely, we should say. right now down nearly 6.. % 6.7% close to session lows

ahead of the close in about 15 minutes' time. we'll take you there as the last trades process. the chinese government taking emergency measures to try to contain the wild swings happening in the chinese markets. this is a one-month chart of china's shanghai composite, wiping out more than $1 trillion in market value. it's been even worst for the tech heavy shenzhen composite, down more than 33% over the past 30 days. morgan brennan has been looking at these big chinese stocks that trade here at the nasdaq. >> this is very painful even today alone. especially over the last month. if you look at both of these indexes over the past year the sthin zin and shanghai indexes they are up 80% versus 12 months ago. we've seen the steep sell-offs. it is adding to investor concerns over slowing chinese economic growth. the weakness has carried over here to the nasdaq. american repositories for chinese companies that trade in the u.s. those are among the

biggest losers on the nasdaq. baidu is a chinese internet search grint,iant, down 4%. one of the worst performers on the nasdaq 100 today. these are all down notably in today's trade and actually have been really the past month as well. also weighing is two of the large aes holdings sina corp. and netease.com. traders and strategists i've spoken to today say as we continue to see this volatility play out in the chinese volatility market we'll potentially see a hangover here. >> something to watch. >> expect more roller coaster rides. shares of gopro a big loser over the past month down 16% but the company is betting big on its smallest camera year. it retails for about $400. let's bring in a pro analyst at

jmp securities. the price tag is staggering especially when compared to the euro for the silver about the same. it has less quality in terms of the resolution of the picture. i wonder what you think the appetite for this particular camera will be and will it simply cannibalize other cameras zp. >> go prois a smart isis isis a smart company. they already know what their customers want. form factor waterproofing, both big pluses. the second mic so you can cancel out wind and other noises you may not want in your footage, those kind of things will differentiate gopro from the pack and help maybe it a broader, stronger product line overall. >> what will drive the stock though? >> it will be more of the same in terms of gopro continuing to build on its brand and its lead over the competition. in the background they're

working on cloud editing tools that will make it that much easier to handle all that great high-resolution action foostage that its customers are accumulating. they're, woulding ingworking on color. a little bit further out we've got the drones coming. the gopro brand will continue to grow. >> it is an interesting stock for sure alex. and it has these amazing pipelines from a consumer standpoint. at the same time the past month the stock is down 15%. we already have this pipeline of products coming out, whether vr or drones. why is the stock moving higher? >> i would suspect it is a xwin nation of macro concerns. this is a higher beta name and so in a market like this you might expect that kind of turbulence in a stock like gopro. also because it is somewhat of a seasonal trade. we'll know a lot more about the appetite for the new session as well as its next-zbchltgen hero 4

black when it gets closer to the holiday season. we recommend that investors buy the stock. >> alex thank you. we'll leave it there. coming up here on "power lunch," get ready to pay a whole lot more for your health insurance. we'll tell you why ahead. and we're keeping a close eye on the energy market. oil just broke below $53 a barrel. more when "power lunch" returns.

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of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? stocks in the red right now but still off session lows. >> there is a sense -- a number of schools of thought but the market's reaction we've seen to this greek referendum really says a little something about the resilience of the u.s. market right now. we aren't seeing any kind of panic selling. let's look at the longer term chart at least over the past year with what the s&p 500 has done. for the most part you can argue since the lows of 2009 investors

have used dips as opportunities to buy. certainly over the course of the past year. now there have been five or six decent size moves to the downside. on average they only go about 4% or 5% to the downside. the biggest one that we've seen is back in october of last year when we dipped below this longer term trend line for the markets. but it is pretty much stayed intact. you can see on the right-hand side of the screen we are bouncing off those levels again. that's the bullish thesis for why the greek situation may not be all that dire. we've seen pick-ups in the past. that's the bullish case. that's the reason some traders and investors out there don't feel as though greece is going to pose a longer term threat. of course there is another side of that story as well that's the unprecedented nature of what's happening with greece. euro is only 16 years old and we've never seen anything like this before. remember the threat of a debt contagion always looms here. that's the problem. the credibility of the euro's reserve currency is also an issue. remember, we've never seen this

happen in the euro. the bullish side and bearish side, all things we are keeping an eye on. those are the cases being made for both sides of that story. >> according to a new report by "the new york times," health insurers from the giants like united health, aetna, cigna and anthem, to smaller state-based companies are seeking big rate increases under the affordable care act. blue cross/blue shield plans are asking for rate hikes, for example, as high as 54% from one year to the next saying that the customer they signed up under the aca turned out to be thicker than they figured on. dan mangin a health reporter for cnbc.com. i've heard these kinds of stories that the rate increases that they have asked the states to approve are going to be vast. 30%. 40%. 50%. others say no no no. . really it is going to be 5% or 10%. what's the truth here? >> there is an average here. there are definitely issuers,

insurers that are asking for very large percentage year over year increases. >> they going to get it? >> in oregon today for example, insurers asked for lower rate increases and were approved. regulators there insisted that they had higher rate increases because they wanted to make sure the plans were sustainable year to year. some of these plans will get these rate increases but other plans will get a lot lower rate increases. for the individual consumer the thing to worry about here is what is my own plan -- >> plan to plan state to state. >> and region to region within a state. if you're on the obamacare exchange, the government-run exchanges or you're off it. most of the people on exchanges get subsidized. even if they see a 50% increase, their actual dollar amount is not going to go up in real dollar terms. if you buy insurance off the obamacare exchanges you could be looking at pretty steep rates. then he should look at shop around and possibly switching plans. >> these are off the national

exchange or off the state exchange. >> i'm talking about state run exchange or healthcare.gov. there's no difference in terms of where you buy your insurance. >> what do i do if i don't like the price increase? >> shop. even if you're on the obamacare exchanges and you get these subsidies, you should look to see if the plan next year -- if your plan this year meets your needs for next year. if you can getter price. definitely shop around. "the new york times," the lead graph in the story says there a 20% to 40% increases. that will happen in some cases but that sticker shock doesn't have to be the last word for all these customers. everybody should shop around. that's true whether or not it is this year or next year. >> dan, thank you. for more analysis of rising health insurance rates, go to "power lunch" dot cnbc.com. crude oil on pace for one of the its biggest drops of the

year. jackie. >> good afternoon. that's right. fireworks in the pits today. a very big drop for crude oil. three issues causing crude to crash like there. a more than $4 drop at this point. we'll give you the reasons and closing numbers when "power lunch" comes back. you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had a liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement

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hello, everyone. i'm sue herera and here is your cnbc news update at this hour. iran's state news agency says there is differences that replain after a ministerial meeting in vienna. the white house says it is possible the deadline tomorrow to complete the agreement could split. this after saying any deal must be in line with the gram work agreement reached in april. firefighters battling a massive fire at an industrial building just outside cleveland. the night sky was illuminated as flames ripped through the north shore strap something company which makes packaging materials and equipment. no word on the cause or if there were any injuries. the tour de france came to a grinding lalt after a massive pileup prompted race officials to neutralize the third stage citing a lack of medical personnel. race officials stopped the peloton a few kilometers after a

few dozen riders toppled head over heels in a high-speed cash. harvard researchers conducting a pla mogmammograms found it doesn't reduce larger cancer or mortality rates. that's your cnbc news update this hour. isis scoring a big win in iraq over the weekend. they've taken back control of a refinery town. it is the biggest refinery in iraq. it's changed hands several times during this long-running war. big drop for oil today. right to jackie deangelis at nymex. >> good afternoon. we did see the final price for crude oil at $52.45. a more than 7% drop today. remarkable selling pressure at the close.

three major reasons for this. the first is a demand issue. looking at greece worried about china. here in the united states we start to see that gasoline demand decline after the fourth of july. in addition we know we're globally supplied in a good place. iran watching a deal potentially that could come out of the nuclear talks that would flood this market with oil. finally, it is all about the dollar. we saw dollar strength on the weakness from the euro. traders anticipate that that will continue. really really big selling pressure today. as a matter of fact the second biggest drop for crude that we've seen this year. back to you. greek banks not open today and they are staying closed tomorrow and wednesday. that of course making it very difficult for people to get money for the things they need. michelle caruso-cabrera live in athens with one mother's story. michelle? >> reporter: yeah. as a result of what you were talking about, tyler, greece is growing increasingly ill liquid. money isn't flowing. we have a caller in to cnbc in

greece and we profiled our colleague's attempt to get money from her cousin from new york city to athens. >> you can only get like 60 euro a day out of the bank and not being able to pay for your bill for your family's food. i was really desperate, really desperate because we're talking about children. it is not me that i can stay without food. it's my children that i can't -- i just can't bear it. >> many of the companies that still do this are charging outrageous fees almost as much as 50% to the amount of fund transferred. >> she decided to send us some money but i didn't know how i would be able to get them. i have no idea. >> i will be coming from the united states, going to greece. that should take about seven days. how much is the fee? >> i've been lucky enough to find a company online that will do funds transfer for a very low

fee of 1% of the transaction amount which is really a blessing. >> you know we're going to be okay. >> reporter: we spoke with her cousin today. she got the money. it is deposited in her account. doesn't mean she can actually get the cash at this point because of the restrictions on how much cash can actually be withdrawn from accounts. but at least she can with interbanking be able to pay bills online if she needs to. >> all right. michelle caruso-cabrera, fascinating story from athens for us. greece's no vote now marks an exit from the euro much more likely as the eurozone's 18 leaders prepare for their emergency summit tomorrow. simon hobbs takes a look at how they are reacting and what could be flex. >> eurozone leaders frankly are worried. if they kick greece out of the eurozone, they worry how well the ecb will contain any market turmoil. alternatively if they do a deal with the greek government and forgive some of the debts that athens owes their taxpayers and the ecb, they worry their

national parliaments will veto their deal due to anger at home towards the greeks. italy's stock market eninterpreted correction territory today down 10% from april highs. some fear that italy could be hit by any market turmoil but it has the second-highest public debt in the eurozone after greece. people estimate high interest rates could add 11 billion euros a debt to italy's debt servicing. reaction to the overwhelming vote in greece trading with some of those banks was temporarily suspended. the italian prime minister worked to keep greece in the eurozone. he says greece is a country in very difficult economic straits. tomorrow's meeting should forge a definitive part to resolve this emergency be wrote on his facebook page.italy would do its part bases on a different europe.

policies and parameters, not just values is and numbers. which underlies the bigger problem for core countries like germany. angela merkel lopes the ecb can contain market contagion, the political contagion to any climb-down to greece could prove even bigger. political parties threaten berlin leaving the euro demanding them sefls haircuts on money that they owe other member states and potentially the ecb. eurozone leaders of course meet tomorrow. >> you mentioned the impact on the shth splatock market and the periphery region. a lot of people said the yield on the debt is where we would see the contagion. >> we did. but it is by no means getting out of control. we are coming in very depressed levels because we continue to have qe in europe at $60 billion a month. but still yield at over 2% originally in spain. >> is there thinking this could potentially increase what the

ecb does? if the "contain" this contagion. >> i think we have to look at the greek banks in particular. are the haircuts to the greek banks -- this is a question. are they effective live moving into a position of technical insolvency as they go into that meeting tomorrow? >> simon hobbs, thank you. greece's crisis having its impact here. we'll have the story of an american store owner whose shelves may soon be empty. plus did greece do the right thing? a heated debate on what should happen next. and stocks sliding lower. the dow down right now by about .66%. triple-digit decline. stick with us. we live in a pick and choose world. choose choose choose. but at bedtime?

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"trading nation" is next. stick with us.

with the greek people reject being the latest bailout proposal, some are saying a greek exit from the eurozone is

better than 50-50 likely. on sidewalk box this morning -- >> they understood it very clearly and they chose not to continue on a path that was dictated to them from the outside and that is proved catastrophic over five years. so, yeah they're taking a bit of a risk but maybe they will get a better deal and have a better chance within the euro. >> robert reich, a cnbc contributor, and an economics professor at the university of california at berkeley. larry kudlow cnbc's senior contributor is also with us. zblad to have you both leer and back tocchet again. larry, let me begin by asking you, do you think that this no vote actually does not or does not strengthen the hand of prime minister tsipras? does it make a more favorable deal for greece more likely or not? >> you know i don't know the politics. i think the answers to all your good questions is no. okay? i don't even know what the

referendum means at this point because they're already in default. i mean it is possible -- i want to get into the substance of this in a minute. but it is possible to drop ow of the euro currency and still be a member of the eu. that is like britain, that is like i think denmark and sweden. that's a possibility. i'm not sure any of that matters until we can agree on a set of pro growth economic policies. because imf austerity is killing greece. greece is killing itself. the imf is making it worse. >> secretary reich, how do you see this? i think you would agree, at least from what my notes tell me, with larry that the austerity is really hurting and making a bad situation very, very difficult for the people there. >> yes tyler. i was very confident in my view until i just heard larry agree with me. then i kind of re -- i'm re-assessing it. but undoubtedly the austerity program has made a bad situation

worse. it has put the greek people and greece into a death spiral economically and made that debt much more difficult to repay. so the question here is very much a political question. that is does the no vote in greece give greece more bargaining leverage with the eurozone. i think the answer is probably yes because the cost to the eurozone of actually a grooekeek exit which is imminent would be much greater than simply giving in and bearing the moral hazard of providing another bailout. >> how do you unleash the economy? >> look. the people who are going to suffer here are not the people in the eurozone in the other countries. they're not the euro currency countries. it is the people of greece. okay? may i suggest an option that i have not seen on the table. number one, they should be changing their whole tax system. they need a low-rate flat tax

which is what every eastern european country did after the soviets broke down. they needed low flat tax breaks because their current system yields no growth no revenue and everybody cheats. number two, they should privatize. sell all at government assets. which by the way, the imf asked them to do five years ago and they wouldn't do it. sell every single -- that's where the excess labor is. that's where the cost structure is. whether the post office or the harbors. how about there? sell all the uninhabited islands which by the way was in an imf proposal. it is worth $40 million, $50 million. let donald trump make golf courses on the greek islands. it will be a whole lot better than having him run for president. low tax rates, sell off the low government private kwl"b" assets. >> how do you react to larry's point -- i know another point of

commonality between the it would have you, mr. secretary, you feel that one way or another you have to clang the culture so that you get greater tax compliance no matter what the structure of the tax system is. >> we could talk about a lot of reforms that have been on the table, some of which, by the way, greece has already agreed to. there has to be reform. but greece is not the only one. italy has a lot of reforms it has to face. italy is under a great deal of pressure right now. we could see some contagion in italy and portugal elsewhere. a lot of the eurozone does have a tax policy that allows tax cheating. a lot of this has to be reformed. in fact, a lot of the basic charter of the eurozone does have to be rethought. it will be. the real question right now is what happens this week and what we're going to see -- in fact what we're already seeing in addition to rationing of cash is the banks are on the verge of issuing ious which is really

tantamount to greece having its own currency. once that really happens, greece is an effectively -- not only in default, but it is also effective live out of eurozone. something has got to happen very, very quickly. >> this iou thing, look. this is not california. this is greece. those ious become drachmas. the drachmas become worthy. individual greek people who get them are worthless. they'll suffer even more. back to my growth point. have you fabulous greek business people all around the world. okay? they have left greece for decades because there's over 100% tax rate. they're in london. they're in new york. they're in brussels. they're in switzerland. what you have to do is get them back. they have tons and tens of billions of dollars that they could be investing in their homeland. they love greece but they late 100% tax. i know them. some of them used to be my clients. there is a greek die as spra.

a new government has to come in the old government thrown out. they are not going to give up their investment for 100% tax rates. bring the diaspera home. >> in terms of flat taxes, all of that is fine. it's sort of academic. the problem here is corruption. you have a lot of pay-offs. you have a lot of corruption in terms of wealthy greeks who are avoiding taxes. let's be realistic here. when the european leaders meet tomorrow, they are going to have to decide what they-0-i hope they make the reasonable decision when you have a game of chicken, it's too late. we are already beyond a game of chicken.

and the reasonable decision of providing easier terms to greece. >> robert's right. the politics are impossible and corruption is impochblt go back a few years. czechs did this. the poles did this. hungarians did this. there is no reason greece cannot do it if it has the political will power to save its own people and bring the wealthy greeks overseas. bring them back home then get donald trump out of the presidential race. >> gentlemen, thank you very much. larry, secretary rice we appreciate it. to dominic chu. >> let's talk about keurig green mountain among one of the worst performers today being driven lower by a price target cut at analyst at suntrust. they kept their neutral rating but cut the price target to $70 a share. they cite market share losses

competitive pressures. the stock lost about 46% this year. the majority of analysts tracked said they have a hold rating. we talked a lot about the impact on greece on u.s. stocks. what about buying greek stocks themselves? that is what economist robert shiller suggested last thursday. >> the u.s. is an expensive market. >> where is the best value compared to the u.s. >> greece. >> would you be investing in greece now? >> no i'm not. maybe i should. one feels fearful. the secret is never put too much money in investments like that. >> should he be doing that? is it a good idea or crazy idea? let's ask the trading nation. great to see you guys. neil what do you think about buying greek stocks now? >> thanks very much.

pleasure to meet you, todd. with all due respect to professor shiller. i think there are more variables to the situation at the moment well beyond valuation. first off, when you look at the valuation comparison you are comparing the united states or developed market to a nation that is on its way to becoming a frontier market from an emerging market. i'm not sure a valuation comparison makes a lot of sense at the moment. the second variable that is very important when you think about buying a distressed asset or value name is that it can become deep value. in this case you run the risk as your previous guest suggested there is redenomination and the drakma is brought back. you look at dozens of examples of nations that devalued their currency it's something like 55% the first year and 53% the second year. 50%. if you buy something now, you run the risk of devaluation of

significance going forward. >> i understand you are greek. a moment ago larry kudlow was calling out to the greek about going back to your country and investing there and helping out the greek people? >> that is a great concept in general, but you need to have a total reset. that will help at the generation level perhaps next time around. right now, based on the way the government situation is and continued restrictions, there isn't a lot of appetite for money to come back onshore. it's an interesting concept. >> it is an interesting concept. todd you've been doing tracking of the greek stocks. >> absolutely to neil's point. this is opportunity to suggest a trading level for professor shiller. we are in a freefall on this chart. we are set to break about this $10 level. that brings in a lower channel level of about $6.

looks like we have a 40% decline to come. today is a huge trading day. about 3.6 million shares traded. that is nowhere near the high volume we've seen june 29th. of about 6.1 million. we have further to fall. to boot the euro with today's close below 1.10 and spot currency rate, that has broken uptrend support. the path to least resistance greece is lower. >> lower. i've got to leave it there. you can see the full interview and head to trading nation.cnbc.com.

hurting business owners in the u.s. >> sunday's resounding no vote in greece's referendum has entrepreneur s entrepreneurs concerned. one has been importing and exporting sponges across the globe and now sits on 16,000 exports to greece because his

associates can't take delivery due to the country's capital controls. >> he wasn't sure he was able to pay. he was not sure he would have enough money to pay for the percentage of what the taxes he would need to pay in order to import the sponges. and other customs expenses he had. >> then there is the man who owns titan foods in astoria queens. he hasn't gotten delivery in two weeks. >> the trust has been lost between businesses and credit has been lost. that affects our regular supply of goods from greece here. if we are not going to be resupplied within a certain time shortages will be here in our store as well as other stores we supply. >> he only has enough supply to

last eight weeks and fears his business won't survive. >> looks like a wonderful store. >> it was lovely to visit. >> thanks to everybody for watching. melissa, great to be with you. >> see you tonight on "fast money" at 5:00. "closing bell" starts right now. >> welcome to "closing bell. "i'm kelly evans. >> i'm bill griffeth. what a day. we literally changed our lead three times on what is most important right now. broader markets may seem tepid compared to a big move the futures saw this morning and overnight. china and greece concerns causing big moves joe you the side the broader indices. >> you must take a look at oil today. sinking on global demand fears in large part on pace for its second worse day of the