meg terrell will join us with names. >> biotech, apple watch. should be a great show as always. thank you. get your "power lunch" to go. but "closing bell" starts right now. we welcome you to "closing bell" for this thursday. i'm bill griffeth. kelly evans will be along shortly. those of you on twitter know where she's been. we'll talk about that. what a difference a day can make. at this time yesterday, we were wondering when the new york stock exchange would reopen for trading. so far today, things have been going smoothly and we are looking to see if the close will be a smooth one, as well. we are going to talk about it with ron kruszewski.

>> the deadline for greece is getting closer. some say greece will deliver a reform proposal within this hour. we will be live in greece in athens and germany, as they await that proposal. china's getting a break from the sell-off overnight. big rally there. no one is breathing a sigh of relief just yet. we'll break down what makes china's markets so different from other global markets. wait till you hear these statistics about the role individual investors play in the shanghai market specifically. right now, let's show you how we stand on wall street we had a big rally on the open this morning. slowly the air had been coming out of that rally. the dow was up more than 200 points on the open. a gain of 78 at 17,594. s&p up ten, nasdaq up just 24

points. apple is one of the drags on the dow today. we'll follow that story, as well. a lot of moving parts and pieces over the next couple of hours. let's get to bob pisani on the floor of the new york stock exchange. so far so good. >> smooth open trading smooth. disney, dupont 3m all the markets opened smoothly and trading smoothly. volume on the heavy side. look at the s&p 500. we've been keying off largely what's been going on in china and greece. the problem is nobody particularly believes in those rallies. they are not really sustainable. nobody has faith in those countries. that's why we are coming off the highs. what is more important is look at what's real here in the u.s. oil stocks. oil stabilizing around $53. that's finally helping the e&p group. a horrible month for this group. all the stocks up today. i've been asked about what's going on in apple.

volume is twice normal. there are a couple of things traders have been talking about in the last hour. i think the most important thing is the technicals about apple. we are approaching the 200 day moving average. $118 and change. there's been discussion about underwhelming iwatch demand. that is a moderate concern here. perhaps more importantly is the fact the company is probably in a blackout period right now. earnings july 21st. that means the company is not buying back stock. that can have an impact on the markets overall. if i had to put my finger on it number one, approaching the 200 day moving average. and number two, i would say the fact that the company is not buying back stock and that blackout period probably weighing on the market.

>> slow down in china probably doesn't help either. a couple of brokerages out with reports on that one, as well. i think we can say they are focusing more on the fundamental fundamentals today and not so much the software glitch. it was a gateway problem. >> yes. nyse did clarify what happened. they were doing an upgrade of the software. this is routine. exchanges do this all the time. they encountered a glitch in the software. some problem with messaging back and forth. they found there was a problem. they fixed it at the open. in the process of fixing that it caused other problems. that's what cascaded into the close at 11:30. the big question right now did the nyse follow what's called best practices for testing the

software to make sure that it was ready to go into primetime? obviously something was wrong. there is a series of practices they are supposed to use. that's what the s.e.c. will focus on to make sure they were in compliance. >> thank you very much. see you on "the countdown" at the end of this hour. greece's last-ditch bailout proposal and germany's possible reaction. our chief international correspondent michelle cruisa cabrera live for us in athens. our senior economic reporter steve liesman is stationed in frankfurt. michelle, what we are hearing here is that the greek proposal could be unveiled within the hour. are you hearing the same thing? >> yes. dow jones the first to report that. i just received confirmation from a government official as well, that they will submit it within an hour. also they plan on voting on it

tomorrow in the greek parliament. significant because i think that means they are trying to demonstrate to the creditors that they are going to be able to pass this thing and they are very serious about getting it done. it will be called a prior action. tonight there was a pro euro rally. pretty small, pretty sad crowd. one participant showed up and told us how frightened he is. >> i'm here tonight because i'm afraid. that is the first time in my life i'm really afraid of what is going to happen to greece and to greeks. i feel very insecure and i just hope in the last minute we'll overcome this tragedy. >> we'll be watching over the next couple of hours to see if the proposal is leaked or the

greek government gives it out. it has to be voted on tomorrow. it's going to become public quickly. >> michelle. stay right there. let's get to the other side of this equation. steve liesman, as we said is standing by in frankfurt. how do you think this proposal would be received there when expectations are not very high let's face it? >> i need to pick up on something michelle said. she used the term "prior action." earlier today we were at a conference where the german finance minister asked for greece to do exactly that. he used the term prior action. said greece needed to do something to build trust. if what michelle is saying is correct, and i'm sure it is what sounds like greece is talking almost directly to the germans. the germans today may have blinked in the following way. wolfgang schaeuble conceding that debt release was necessary.

he went on to say there was nothing that could be done about it because it violated eu proposals. he went along with what the imf has been saying and u.s. president barack obama has been saying about the need for debt relief. angela merkel in the balkans today said "no classic haircut for greece was possible." notice that word classic. a couple of german papers saying maybe they don't do a classic haircut but some form of haircut to the greek debt. the ecb are laying very low. they do not want to be the institution that decides this either way. they are keeping the funding where it was, letting the politicians and finance ministers figure this out. >> let's bring michelle in. let's talk about this both of you. schauble said a haircut was the

best way to reduce debt but was not possible. what is it greeks can propose that will be amenable to the germans who are calling the shots here? >> i think it is possible that at some point if they do a lot of the prior actions, this is such bureaucratic speak of the whole process if they prove they are going to do all these things that are good actions, good for the economy, what has been said all along, bill is that the greeks could get a reprofiling. you can have a lot more time to pay your debt back and even lower interest rates. i think americans would understand if you've got a 15-year mortgage with 4% interest rate if you are suddenly told you can have 100 years to pay it back at 0% interest rate, you get it right? it's a lot easier. so there's possibilities of doing that. all the money the greeks owe to the germans, they don't start

paying it back until 2023. it's a long way away. the cash flow problems for greece aren't because of germany. they are because of the imf, the ecb, the two institutions that refused to do hair cuts. >> before we go,ish medical, you had the golden gun on this. hello there. >> hello. >> do you think when all is said and done by the time they get to the meeting in brussels they'll be talking more about grexit or this greek proposal we'll hear about in the next hour? >> i don't know. it's been like this. we have rotated around this axis so many times. i just can't tell any more. >> i hear you. steve, good to see you there. thank you. michelle, we may be checking back when we get that proposal out of athens. >> how are you? >> it's going to be another dramatic -- we thought yesterday at 3:00 was going to be crunch time. today in its own way.

>> you thought trading started at 3:10 today. >> let's get to our "closing bell" exchange? kevin kelly joins us. ben willis and our own rick santelli. rick, people actually were asking yesterday what was happening in chicago? how were markets handling the flow moving away from this market? just beginning with a little bit of scene setter from the last 24 hours and trying to incorporate the events in greece today. >> the e-mini s&p contracts were trading higher volume than normal up until about maybe 12:30, 1:00 eastern. by the end of the day, their volume numbers were normal to any day. they were a little bit over 2 million contracts. the smaller s&p contracts traded electronically. all the treasury futures have normal volumes. ten-year had normal volume. you could argue we had better

volume yesterday than weed had for example on thursday. the last guest yesterday on this topic said what everybody has been talking about. the world changed on two things regarding exchanges. the fact that they demutualized and became for-profit a. big, the fragmentation of the equity markets and regulators approving various exchanges. i'm not saying how they feel on those two topics but they sincerely believe they contributed to what happened yesterday. in the end when you have so many kind of taking shares for example, the equity markets and shares of stock traded that you make it less profitable for all of them. at the end of the day, anybody who has ever done computer upgrades or system upgrades these things are going to get expensive. if you look at the balance sheet of the new york stock exchange lately, they are profitable for

sure. it isn't the type of institution it was when they did 60% or 70%. where is the money going to come from? over time the systems will be more important as people all but disappeared, but there has to be serious upgrade and keep security patches and upgrades in the system. that was the topic on the trading floor here yesterday. >> that is for sure. there were a lot of questions yesterday about the decision to halt trading rather than going to the emergency center in chicago. you agree it was the right thing to keep it right here. >> i'm not exactly sure right now. i would like to hear an explanation why we chose not to go to chicago, quite frankly, if it is a robust redundant system where it is a flip of a switch to change rather than mahwah new jersey. >> it is not as simple as a

flipping of a switch. >> it goes to what rick santelli was saying. the clients. when you change the stock markets of the world into a for-profit entity which happened many years ago on the new york stock exchange, where it went from a membership organization to for-profit the motivation and how, what we base our trading methods on are entirely perverted, quite frankly, for the motivation of who we are trying to protect we no longer have the ability as a backup system to trade manually intraday. we do have it at point of sale for close and a point of negotiation. to say i can still take my customers' orders i was forced to represent on other venues even though they were sending me orders, i was forced to trade somewhere else because the ability to trade as a human was

taken away from me by our government. >> kevin kelly, you've been waiting patiently. tell investors what should they be doing with all this uncertainty in the deadline we are approaching with greece sunday and everything chinese regulators have done to keep their market up? >> the real excitement in the world is in the european economies. we are seeing that with the numbers coming out. monday alone, industrial production in spain, the consensus was up over a percent. germany's exports were up. if you look at the euro zone everyone ntex it was at 18.5. that is lending a lot of value to invest. if you look at the german dax index, trading at 13 pe as well as 3% yield on daimler where auto sales are doing well. same with volkswagen. munich re is owned by buffet. 11.6% he owns of the company. it's got 4.8% dividend. >> sounds like the german market

is screaming buy for you. >> absolutely. you need to look. 30% of the gdp. the euro hasn't gone down. why is that? numbers are doing well. swiss national bank is buying euros because they believe in europe and the euro zone. that's why you are seeing a lot of political theater going on. europeans aren't caving. they want real reforms. >> trying to keep their own currency down. >> he gave us the reason why there is no grexit. germans love a euro cheaper than a d market if southern economies weren't in the condition they are. >> i heard people estimate $1.08 if it were just based on germany. thank you, guys. we've got breaking news on uber. >> uber filing a motion opposing class action status for drivers suing the company to be considered employees and not independent contractors.

speaking out on the suit at length the company says, as employees, drivers would drive set shifts earn a fixed hourly wage and lose the ability to drive using other ride sharing apps as well as personal flexibility they value. drivers use uber on their own terms. they control their use of the app. uber submitted declarations from 400 drivers to support its position. a san francisco judge is expected to rule on class action status on august 6th. last month in a separate case the california labor commission ruled in favor of a single uber driver who claimed she is an employee. back over to you. >> thank you. we covered this at the ideas festival. there is more on the spark about it. there needs to be a third way to classify workers, not just the either/or system we inherited. 43 minutes to go into the session. looking at a rebound from yesterday's declines. dow is up 92 points. nasdaq up 29 following stronger

trade around the world. >> huge rally in shanghai overnight. locked in its best one-day percentage gain in six years. still down about 28% over the past month. up next we'll have a special report on what makes the chinese markets so different from other developed global markets. defense secretary ash carter speaking with us exclusively to find out why he thinks tech companies do need to work more closely with the u.s. military.

need to hire fast? go to ziprecruiter.com and post your job to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep them all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberyy apple scones smell about done. ahh, you're good. i like to bake. with at&t get up to $400 dollars in total savings on tools to manage your business.

want to show you what sparked the stock market rally around the world the last 24 hours. it started in shanghai as that index posted its best single-day percentage gain in six years. march 2009 finished up 5.76%. chinese regulators have been active recently. they were at it again last night. they banned major shareholders from selling large stakes in listed firms for six months. they've taken all kinds of action to try to prop up their own market there. that was another one last night. >> despite today's gains, the

shanghai composite down 28% over the past month. s&p is only down 1% in that time frame. why isn't wall street and more global markets feeling the pain from the chinese sell-off? let's ask eric chemi. >> we are not talking about a market that operates close to the rules we've become used to here in the u.s. and other western markets. the players, the rules, they are totally different. in china, retail makes up 85% of all trades. there are 200 million chinese retail traders. that's bigger than the entire u.s. labor force. just this year alone we've seen 30 million new accounts. that's bigger than the population of 49 states. of course the vast majority of these chinese traders don't have a high school diploma. most are operating on the pure faith of the government keeping shares higher. that faith gets supported when you see the government doing things like changing the rules on the fly.

something that wouldn't happen over here. if you look at this current ipo freeze it's already the ninth ipo freeze since 1990. that's because chinese ipos tend to be way underpriced. you're averaging triple digit returns on the first day. about 127%. that's drawing money out of existing stocks. again, unlike here in the states, the chinese market is morely uncorrelated with the rest of the world. only 2% of chinese shares owned by foreigners from the volatility you've seen in shanghai has not been replicated in places like hong kong. most of the money lives in hong kong. most these downfalls are getting the effect to the chinese retail trader specifically. >> incredible stuff. especially the part about how few people have a high school diploma. thank you. eric chemi. >> stocks on wall street may not be feeling china's pain as much but some global commodities are. morgan brennan has that part of

the story. >> china is the largest producer and largest consumer of industrial metals. counts upwards of 40% of global consumption. the slide in stocks in china has accelerated. accelerated as a-shares sold off. copper zinc aluminum the prices are down dramatically. copper 10%, nickel down 19%. lead down 11%. aluminum down 6%. we've seen very violent swings just this past week. one of the reasons commodities are moving closely with stocks is many investors are being forced to sell their commodities to meet margin calls in china. another area hard hit, iron ore. hitting its lowest level in something like six years. iron ore which is used for steel suffers. the steel index shows that china

domestic benchmark price down 18.50% in four weeks. as one analyst told me today, a ton of steel in china is now cheaper than a ton of cabbage. chinese consumption waned. the company has been flooding markets like the u.s. with excess supply. that's having an effect on some stocks here. it's particularly been hard for the steel makers. nucor, u.s. steel, steel dynamics all these names down double-digit percentages just in the past month. since the start of the year we've seen many of these companies coming out and cutting their guidance because of the flood. huge ripple effects for commodities. >> did you say a ton of steel was cheaper than cabbage? >> a ton of steel is cheaper than a ton of cabbage at wholesale prices. steel prices down dramatically. down by 50% since last year.

>> that's a lot of cole slaw. thank you, morgan. did you see those declines on steel stocks? i'm going to move on here. >> reminds me of alcoa. talk about a company trying to just move right through it. >> up. 86 points with 35 minutes left in the trading session here. we've come way off the highs of the session. holding steady here. >> smooth sailing so far. yesterday's glitch halting trade about 3 1/2 hours. coming up, we'll speak with the founder of a high frequency trading firm about what causes these glitches. [ female announcer ] who are we? we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments

where we can say, "i did it!" ♪ ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. why pause a spontaneous moment to take a pill? or stop to find a bathroom? cialis for daily use, is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. ask your doctor about cialis for daily use

and a free 30-tablet trial.

our next guest founded a firm that trades 1.5% of all the stock market volume out there every day. we want to get his take on the trading halt yesterday and whether it could happen whether we should get used to this going forward. >> founder and former ceo of trade works, an expert who testified to congress on high frequency trading. welcome. were you surprised by what happened yesterday? >> i was surprised by all the outsize media attention it grabbed. the prevalence of technology outages? no. that happens more than people realize. >> i want to ask you about that. i thought the same thing. i'm walking in and out of the new york stock exchange yesterday. there were a bunch of tv trucks. some of that people are still under the impression that the

new york stock exchange trades all stocks. >> it does 15%. >> yeah. we have a lot of different trading venues. point of fact this was a resounding vindication for the current fragmented market structure we have. if any one venue goes down there are other venues to pick up the slack. >> what is the difference between an exchange and place that handles the stock that exchanges every day? >> there are a multitude of places that exchange stocks. when nyse went down they transferred changes such as nasdaq, arca. >> other pools, as well? >> yes. there are alternative trading

systems. there's a very diverse ecosystem of players and trading platforms out there. >> knowing who i am asking mere have we gone too far using technology to trade? a lot of the guys on the floor have been here a while. they say we never had these problems. have we given too much power to technology when it comes to trading? >> no. the benefits far outweigh the consequences. yesterday barely qualified as a consequence in my mind. were it not for the media coverage of this i think the vast majority of traders wouldn't have noticed nyse was down because trading continued uninterrupted and seamlessly. there is a regulation under way that was mandated by the securities and exchange commission, systems compliance integrity which is supposed to cause the exchanges to be more

robust to these things. we'll see. >> thanks for joining us. >> we have breaking news out of washington right now. >> we are getting new information from the office of personnel management. they've been victimized by this devastating hacking attack that collected sensitive information on millions of americans. earlier we were told that about 4.2 million americans have been impacted by this. now the opm says about 21.5 million individual had their sensitive information compromised as part of this attack including 19.7 million individuals that applied for a background investigation to get a sensitive job in the u.s. government. they are saying 1.8 million nonapplicants were affected. predominantly spouses or co-hab co-habitants. there is no information there's

been misuse of this information. that is a very big number. a very devastating hack causing political waves here in washington. >> speaking of the risks of technology. let's get to a cnbc news update with sue herera. >> here what's happening. jeb bush raised $11.4 million in more than two weeks after formally launching his 2016 bid for presidency according to his campaign. his super pac called right to rise which has been active since january is expected to report having raised as much as $100 million. wikileaks publishing a new list of formers such as top aides of angel ear merkel. wikileaks released phone numbers it claimed nsa targeted german officials. >> new york state will spend $300,000 to repair the damage caused by escaping prisoners

richard matt and david sweat, including pipes, walls and fences the two cut through with tools provided by prison employees. free agent lebron james, as expected is keeping his basketball talents in cleveland. the superstar will sign a two-year maximum deal with the cavaliers worth nearly $47 million. they are happy in cleveland. that's the cnbc news update. back to you. >> hopefully he gets a ring. >> hopefully. absolutely. >> sue thank you very much. 25 minutes to go into the close. watching markets rebound today. seeing if they can hold it as we enter what is typically a volatile period. more volcoming back online. >> up next it's back. it's still the most important half hour of the trading day. a top trader will tell us way is watching.

we live in a pick and choose world.

choose choose choose. but at bedtime? ...why settle for this? enter sleep number don't miss the final days of the lowest prices of the season. sleepiq technology tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store. don't miss the final days of the lowest prices of the season. save $300 to $700 on selected mattress sets. ends sunday! know better sleep with sleep number.

welcome back. heading into the close less than a half hour to go. keith, all systems go today? >> all systems go inside of the market. as far as the technology is

concerned, i'm not sure all systems are go with the price action i'm seeing in the market. i'm getting concerned. we saw capitulation as far as trader index. >> today? >> yesterday. some of the internals we saw. i'm concerned we are fading all day long. >> what levels are you watching to see if we do stay positive? >> one key level is can we get, can we stay up about 2062 and 1.05 on the futures. next stop is 2040 on the s&p 500, which would be the march lows. we are still in an oversold state. some of the work i do and if we get movement in the market it's capricious at this time. we might be able to get back up to the 29 range.

>> markets open sharply higher fading to the close. we have all these things to think about. china, greece. we may get a proposal from the greeks in the next hour or so. iranian talks continue. so many disruptions. first, let me ask you, this is sort of you putting your sifma hat on. what did we learn yesterday and can we keep from happening in the future? >> yesterday's concern came many people thought it might be a cyber attack. cyber is a concern going forward. at the end of the day, yesterday was nothing. the new york stock exchange is

one of many venues. ten years ago it would be a big deal. yesterday wasn't a big deal at all. >> when we talk about the relevance of the new york stock exchange to other exchanges, a lot of that does happen on the close aside from ipos and other things during the day. do you think people are going to change their behavior on the close or is this market still going to be a critical part of the financial system? >> i think it's still critical because so many activities are based on closing price. >> let's talk about some of those headlines affecting the market right now. traders are concerned about china than they are greece. >> when you get to a fork in the

road, take it. one is china, second is greece and third might be what the fed is going to do. china, ten years ago china was 5% world gdp. china is going to be a significant driver of global growth. it has its issues today. i think china is obviously a positive going forward. >> are you concerned about the manipulations of regulators over there as they try to prop up their market? >> in the short term for sure. that's never proven to work. longer term it's not about the market. it's about growth in china's per capita income. as more people get, come up to middle class in china, that is going to be a huge boom to worldwide growth. >> fair enough. going back briefly to yesterday for a second what happened during those hours when the

stock exchange was down. how were you rerouting your order flow? how aware are you at any given time which exchange or pool you are executing trades in? >> it was a nonevent. the only thing that happens, you have open orders that may sit on an exchange you've got to be mindful to move. routing of orders was a nonevent for us. the biggest concern was all the news coverage, as if the stock markets were down. that caused more concern than the actual execution of orders yesterday. >> again, i maintain that as a fundamental standing on the part of nonbusiness media, they still think the new york stock exchange is the only place where stocks trade. understandably if it went down 10 or 15 years ago, that would be a big deal but it's not right now. >> it would have been a big deal a few years ago. one other thing. xwrees is not exiting the euro

zone. greece doesn't want it and germany doesn't want it. >> thanks for joining us. ceo of stifle. >> 18 minutes left in this critical last half hour. still holding steady but well off the highs. dow up 72 points. >> up next we'll head out to sun valley for the conference and exclusive interview for secretary of defense ash carter. what he's been telling them. these two oil rigs look the same. can you tell what makes them so different? did you hear that sound? of course you didn't. you're not using ge software like the rig on the right. it's listening and learning how to prevent equipment failures, predict maintenance needs, and avoid problems before they happen.

you don't even need a cerebral cortex to understand which is better. now, two things that are exactly the same have never been more different. ge software. get connected. get insights. get optimized.

bring us your aching and sleep deprived. bring us those who want to feel well rested. aleve pm. the only one to combine a sleep aid... plus the 12 hour pain relieving strength of aleve. be a morning person again, with aleve pm.

welcome back. mobile eye was upgraded from outperform to neutral. rw baird raising its price target to $73. it has more confidence following new business awards. walgreens boots alliance one of the biggest winners on the s&p today. the largest drug store chain in the u.s. posting better than expected earnings raising its profit forecast and naming

acting ceo to that role permanently. >> you want a little anecdote? they own duane reade in the city. you know what i've been going to do a lot lately? use apple pay on the apple watch. i don't know. those things matter. >> her apple watch is my blackberry. we cling to those. >> apparently i'm the only one that has one. 13 minutes to go into the close. the dow up 79 points. s&p nine. up next, two ways to play this market.

[ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans they could save you in out-of-pocket medical costs. call today to request a free decision guide. with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. join the millions who have already enrolled in the only medicare supplement insurance plans

endorsed by aarp... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. ♪ ♪ o0

welcome back. a meeting of tech moguls in sun valley. >> julia boorstin caught up with a newcomer defense secretary ash carter. tell us about it. >> secretary carter was the big keynote here at the conference this morning. he explained why it was so important for him to take the

stage and take one-on-one meetings with these powerful ceos. >> these are the most innovative leaders, business leaders in our country and our country breeds the most innovative leaders. i would like the department of defense, the pentagon to continue to be a very innovative place. we have the finest fighting force the world has ever known now. i would like to leave to my successors. >> at what point does that become a national security issue? >> it is a national security issue. that's why if you are thinking about the long term as i have to and the long term security and vitality of the department of defense, i need to be concerned about things like science technology engineering, mathematics, education, schools, and all the other things that go into making what has been for all our lives and our generation now the most innovative country

in the world. >> talks are going on with iran. can you defend against a nuclear iran? >> we would have to if there were a nuclear iran. it's i one of the purposes of secretary kerry's talks is to stop iran from having a nuclear weapon. those talks are ongoing now. i don't know how they'll turn out. the president made it clear that he'll only agrow to a good deal and a good deal would stop iran from getting nuclear weapons, which would make it much easier for us to ensure stability to protect ourselves. >> secretary carter weighed in on recent revelations that there have only been 60 syrians trained in the program to battle isil. he acknowledged that is not enough but said it's very important he be transparent and honest with where they are in this progress with the american public. he says being honest and sharing that information is crucial. >> thank you. >> we are heading to the close.

7 1/2 minutes left. we were just talking about volatility. we started with a 200-point gain on the dow following the tremendous volatility in china and what is going on in europe. now we have our own volatility market day. >> it is back again. you look where the vix has been trading at. we've seen it spike up to the 18 already. volatility will be here to stay for some time. what is interesting to me we should embrace it. we do a survey every quarter. advisors are saying risk is a concern to them. not only that, but something they want to avoid. sometimes risk tends to be an opportunity. are we taking advantage of what's going on in volatility? i'm excited by the prospect of volatility. >> you are managing director of retail sales at eaton vance. >> yes. >> what is on the u.s. investors' mind? they've been selling this market

the entire way up. we have yesterday's glitch here at the new york stock exchange. maybe an issue to keep people on the sidelines. do people want to get involved? >> i think people are hesitant what we are seeing is fear. fear is overriding decision making at the moment. as you look ahead, volatility becomes an opportunity to consider. it presents an opportunity for active management. we've seen this preponderance of success with active management. it has an opportunity to take advantage of the volatility. the second issue is rates. rates have been driving it. >> that can cause some of the volatility as everyone is expecting the fed, one day we are convinced they will raise rates soon and the next time we are convinced they will not do. >> rising rates. we continue to see folks not have a strategy around rising rates. certainly our advocacy is have a

strategy and plan. we are seeing mixed reactions today. >> good to see you. >> thank you. >> we'll come back with the closing countdown for this thursday. >> after the bell, we'll speak to linkedin co-founder and chairman reid hoffman. heart health's important... ...so you may... take an omega-3 supplement... ...but it's the ingredients inside that really matter for heart health. new bayer pro ultra omega-3 has two times the concentration of epa and dha as the leading omega-3 supplement. new bayer pro ultra omega-3.

your mom's got your back. your friends have your back. your dog's definitely got your back. but who's got your back when you need legal help? we do. we're legalzoom, and over the last 10 years, we've helped millions of people protect their families

and run their businesses. we have the right people on-hand to answer your questions backed by a trusted network of attorneys. so visit us today for legal help you can count on. legalzoom. legal help is here. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep them all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberyy apple scones smell about done. ahh, you're good. i like to bake. with at&t get up to $400 dollars in total savings on tools to manage your business.

we have 2 1/2 minutes left. bob pisani you have news. >> at the direction of chair mary jo white who runs the s.e.c. director of trading and markets is meeting with senior nyse officials today in new york to further review yesterday's events and nyse's plans going forward. the chair and senior commission staff are continuing discussions with market participants. you saw tom farley walking by. >> i think what they are doing is monitoring the close here today. >> yesterday they were doing a software upgrade. they had problems with messaging. there was some coding problems. they appeared to have tried to fix it. that created a cascading series of other problems that shut it down. attempts to constantly upgrade

the software can occasionally lead to problems. yesterday was a particularly egregious example. what the s.e.c. wants to make sure of is the nyse is following what are called best practices. that includes testing it adequately. >> a minute before the end of trading session here. all systems go right now. >> volume was not bad today. 600 billion. that is not a bad day. other stocks had notable action including apple which trades on the nasdaq. twice the normal volume there. apple approaching that 200-day moving average. there are some concerns about perhaps slower sales in china affecting them as well. finally, the company is entering a blackout period. july 21st apple's earnings are

coming out. companies cannot buy back stock in that blackout period. >> we are going out in a smooth close but may get news in the next hour. we are expecting to hear from greek officials making their proposal to european officials. stay tuned for the second hour of "closing bell" with kelly evans and company. see you tomorrow. thank you, bill. welcome to the "closing bell." here is how we are finishing up the session. dow up 32 going out off the highs of the session. s&p up only about five. nasdaq adding 12 after a rough session with a lot of concerns swirling about global growth. we have stephanie link and our own john fortt. brian kelly. kenny will join us in a second. brian, as we are sifting through

the rubble of what's happened yesterday, where do you see, are people looking for a safe haven still? what do you think they are doing with risk? >> i think people are not taking a lot of risk right now. yes, potentially we get some deal in greece. then it's unclear what the damage has been done in china. i think jim cramer made an analogy, is it 19 97 in china or 2000? for me you take a lot of risk off and wait for things to settle down. to reason to get raisy now. >> what are you watching here? >> volatility is going to continue. that's the thing, unfortunately. we are probably stuck with that until we get some details. if you can get a deal with greece and we have to wait until over the weekend, then you can get some sort of stabilization in china. that is a big if i get that.

then maybe we can focus on earnings. we got some good earnings today. >> what did you think of alcoa last night? >> was very good underneath the surface. trends were very positive. particularly about north america. china was interesting that it hasn't fallen off a cliff. that's no surprise to anybody. pepsi, very good number. 5% organic growth rate. that is impressive. walgreens boots alliance very strong. raising guidance. those two reports, i kind of think the consumer is encouraging. >> i'm going to be gloomy here. taking a look at the semis. qlogic didn't look so good. intel was down. brocade was down about 8%. altera, amd, marvel f5 down.

we'll have to see whether, when earnings come out it compounds that or whether there is a silver lining. this enterprise combined with concerns about the pc in the second half doesn't look too good. >> this is true. tech in the last couple of days. tech as a sector was almost negative on the year. i wonder if there's been some rotation. it's had its time in the sun perhaps and now a more difficult transition period while other parts of the economy are kicking in. >> good thing we have reid hoffman later in the hour. taking a look at the last three months. look at linkeddown yelp down. when you look at social names suffering and semis, you look at the stocks doing well today. you wonder if some of the air is coming out of the hope. >> let's bring kenny into this conversation. how did it go on the trading floor today? >> all systems go.

not an issue. everything traded beautifully until the closing bell. volume came back. all that fear about not coming back and no reason it's all just nonsense. >> as things settle down what lessons are we drawing from the fact this exchange was down 3 1/2 hours yesterday and business as usual? >> i think the lesson you are drawing is it's a technological advanced market. not the market many people know from 15 20 years ago. there are multiple exchanges. there is always opportunity for failure somewhere along the line whether it's here today, another venue tomorrow another venue the next day. the possibility is technology fails. allows for the market not to melt down. investors should not be concerned when an individual venue has trouble. trading can continue. the new york stock exchange

remains a vibrant part of the market structure. we are doing 20%, 25% of average daily volume why. would anybody dismiss it? >> do you want to weigh in on this point? people are looking at market structure if this happened before michael lewis' book came out, how different the conversation might have been. what is the issue and problem with our market structure as it stands? >> it comes at a time when there is volatility in the market and uncertainty. you add on what that does to the confidence for investors. i completely understand it. it makes sense. i think this is largely a one-off situation. it's an unfortunate one-off. there are a lot of many days where things are going really well. people don't talk about that nearly enough in my opinion. >> to your point, when you talk about this yesterday is the

perfect example on why people should be confident because the system was stable and secure. >> it got fixed. >> you didn't see the market fall out of bed when we were having an issue. in fact it did work the way it should work. maybe we have too many venues. that being said the market did work the way it was supposed to and people were not in danger. >> let's get out to athens. greek government officials expected to send in their bailout proposal any minute. any details yet? >> greek government official confirmed within the last half hour what dow jones already reported, that they are supposed to be sending their proposal within an hour. i'll tell you in the past when greek government officials said they are going to submit something within the hour sometimes it takes two hours. we'll see. we are waiting. it is expected to go tonight. greek media is aflitter with all kinds of speculation about what's in it.

greek government official confirming there should be a vote in parliament tomorrow. that would be significant because that would signal they are trying to send a message to the creditors that they can get this thing done. we'll be interested to see if they do vote in parliament tomorrow, if there is a protest out front, who shows up. this is a leftist government who said it wasn't going to do a program or bailout. what are their supporters going to do at this point if they agree to something that maybe has a lot more austerity measures than anybody expected. the language we'll be watching for. i want to say the dollar value, but euro value on the measures. tax raises that contribute x amount of cuts and pensions or changes in the pension system that reduce costs by x amount. we'll be looking for numbers like that. it's like a puzzle they put together to get to what a bailout number should be. that's what we are waiting for. maybe in the next couple of

hours we'll get a leak of the actual document once it's sent. back to you. >> i'm curious about the timeline. let's say we get this then what? are we going to have to wait the next couple of days? how does it play out? >> yes. it will go on to the finance minister assistant finance ministers across europe. they have to begin the process of debt sustainability analysis check a lot of boxes. if it gets past finance ministers, it goes on to the leaders. we watch for this every time. what are the germans, the austrians and the fins say? what the french say? discount it. they are always optimistic. what the european commission says? always optimistic. they will bring you down a bad

path. you wait to hear from germans, fins and austrians. >> michelle cruisa cabe a caruso cab cab rer -- michelle caruso-cabrera. eunice yoon with the latest. is this going to keep investors in a market they might not necessarily want to be part of? >> it's difficult to say. after the market closed there is a problem with my audio. after the market closed the chinese media was full of photos -- sorry. i'm going to start here. after the market closed the chinese media was full of photos

of happy investors. there were old people as well as young couples holding babies. the government was promoting the idea of a national team where all the relevant government agencies were the players. the media was saying this national team is truly taking action and that's what we saw yesterday in the shanghai market which rallied by 6%. the government said it listed state-owned enterprises to stop selling stocks. it instructed senior corporate managers and shareholders major shareholders to refrain from selling stocks for the next six months or face severe punishment. we learned that the police started investigating a lot of what they called malicious short sellers and identified more than a dozen institutions as well as individuals who have taken part in what the government called illegal acts. investors overall seemed pleased

with some of these developments but are very cautious. there's a lot of anger toward the government. a lot of that showed up when we went over to the regulators office and saw small groups of protesters there. a lot of the investors said they are cautious because more than half the listed companies in china are still seeing their shares suspended. a lot of people are wondering what will happen with the trade once shares resume and aren't suspended any more. while i'm putting in my audio here i wanted to tell you despite the fact we did see a bump in the markets, there are still a lot of nervous investors. we saw investors in shanghai checking themselvesfves into a buddhist temple to try to find peace. >> we love those anecdotes and

appreciate your zen approach to reporting the situation. we are seeing the bans on short sellers come out. >> everything is fantastic in china and buy every stock out there. since i'm in the u.s. and new york i'm fairly safe. yes, we know the chinese stock market is disconnected from the economy. what damage has this done psychologically to chinese investors? do they have to start taking money out of the shadow banking system with wealth management products? does that create a bigger problem? that could be the linkage that causes problems elsewhere. then coming up on earnings season here take apple for example. a big part of that bull story is china is going to come on next year. china will be a big sales channel for them. if the chinese people middle class and investors no longer have the cash to buy apple products, it's going to be an issue.

>> a lot of traders were talking about that. tim cook vehement how important china is to them. we have to get back out to athens. >> the new greek proposal has been received by the euro group president, a group of all the finance ministers. the dutch finance minister received it. this has been tweeted out by his spokesperson. the greeks have gotten the proposal within the hour. it's important for the institutions to consider these in their assessment is what the tweet says specifically. now we wait to see what is actually in it. >> thank you so much. we'll bring everybody more detail. for now, thanks brian kelly, appreciate it. everybody being very patient with our audio this hour.

>> stick around there is more to come with brian kelly on "fast money" at 5:00. they'll talk about stocks perhaps poised to take a leg lower. they are talking to one short seller who thinks this market rivals the most overbought in the history. much more ahead on breaking news out of greece. biggest names in technology gathering in sun valley idaho. we'll speak exclusively to linkedin co-founder and chairman reid hoffman. here at the td ameritrade trader group, they work all the time. sup jj? working

hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this.

my name is rene guerrero. i'm a senior field technician for pg&e here in san jose. pg&e is using new technology to improve our system, replacing pipelines throughout the city of san jose, to provide safe and reliable services. raising a family here in the city of san jose has been a wonderful experience. my oldest son now works for pg&e. when i do get a chance, an opportunity to work with him it's always a pleasure. i love my job and i care about the work i do. i know how hard our crews work for our customers. i want them to know that they do have a safe and reliable system. together, we're building a better california.

moments ago the euro group president received the greek bailout proposal. great to see you from athens this evening. do we have details as to what's in this proposal? >> some things we do know is that the total is at least 50 billion euros. the size of the austerity package is 12 to 15 billion euros. there are increases in taxes on

cafes, bars and restaurants. this is a three-year deal. this is very close to what the imf had sort of suggested greece might need in its debt sustainability report released before the banking shutdown began. the past two weeks the economy has come to almost a standstill. we'll see how much more money they will need in order to ensure the banks will be able to open and the economy can right itself. >> the latest we heard are banks will open monday. sunday is when key talks will happen. i was struck by anecdotes of your time on the ground how people are protecting their wealth and funding their date-to-day lifestyle. what have you seen in the last 24 hours? >> it's very interesting. would you expect you can only withdraw 60 euros a day they would be hoarding cash. there is a real concern the value of the euro will drop they might see a hair cut on the amount of money in their banks. they are trying to throw their

money in unusual places such as a chanel bag, perhaps a fancy car or paying their taxes in advance to convert that cash into goods. they feel like that will be a better store value in the long run. >> do you get the sense that the people are regretting what they did in terms of the referendum voting no? >> we've been asking this question of buyers' remorse. the austerity package voters rejected was smaller than we believe the one greece has agreed to today. this idea folks may have bitten off more than they could chew is early to tell. depends how much long-term debt relief greece can win from its creditors. >> just talking about the difficulty in getting some food

basic medicine i hear insulin shortages are an issue because greeks don't have a generic option within the country. are are those things becoming more pressing adding more urgency? >> certainly. folks feel like this banking shutdown lasted long enough. they are worried where controls lasted two years. not all of them lasted the full two years. that is a long time it takes for a country to recover. many people i talk to are worried greece could end up in the same situation. >> thank you for joining us. doing a ton of work there late in the evening. >> a beat on the top and bottom line for barracuda networks coming in the first quarter 9 cents per share nongaap. that was one cent better than anticipated. revenue $78 million. better than $77 million analysts

had expected. shares of barracuda are down about 11% in after hours right now. one reason might be gross billings came in at $93.4. a beat on the top and bottom line but gross billings shy of expectation expectations. shares of barracuda down 11% in after hours. >> thank you. apple watch sales debuted in april. new data shows they may have gotten severely sliced last month. >> jeb bush in hot water saying americans need to work longer to help the economy grow. larry kudlow and barney frank debate whether he is right or not. bile agrees. never settle for verizon's overpriced gimmicks. try the un-carrier risk-free for 14 days

you'll love it, or we'll pay for you to go back.

new york state is reinventing how we do business by leading the way on tax cuts. we cut the rates on personal income taxes. we enacted the lowest corporate tax rate since 1968. we eliminated the income tax on manufacturers altogether. with startup-ny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years.

all to grow our economy and create jobs. see how new york can give your business the opportunity to grow at ny.gov/business apple getting hit down 2% in heavy trading. marks the second day of trading bad news that consumers are losing interest in the apple watch. cites u.s. online sales of the watch slipping by 90% since its april launch. peak of more than 40,000 units in april to only 5,000 units this month. chief data officer of slice intelligence joins us. how do you know all this? s apple doesn't want this information out there. >> thanks for having me on the show.

slice intelligence gets its from 200 million shoppers and consumers. if you think about nielsen tv ratings, this is measured on 40 million households. this is a representative panel. we take great pains to make sure they look and act like the online shopper population. >> do you guys have you had data in the past on ipad launches and different things apple's done so we know it's apples to apples? >> yes. we measured the data on what's been happening with ipad, ipad mini retina and so on. right now we've been focusing on the apple watch launch. >> showing big declines in purchase volumes. they are down 90% last month versus april. is that precedented?

>> it's a precipitous drop. on day one you had more than a million watches ordered online. these are the fanatics. they want everything apple makes and want it on day one. the next couple of months it dropped to tens of thousands a day. that is a good clip and now we are dropping into sub 10,000 a day. the mass market has been cautious with the apple watch. >> here is my concern. i don't know exactly the demographics of the people signing up to be part of your panel, but it seems like it's going to be those first day buyers and early adopters who are overrepresented. are you able to statistically even out the curve and be sure what you are seeing isn't an anomaly based on your panel versus what is actually happening with apple watch buyers? >> that is a great question. the panel is very representative of all online shoppers.

not just early adopters and apple fanatics. we measure the demographics. we are confident in what we are saying, that there is a shift happening in the online purchases of the apple watch. we are tracking online orders. what could be happening, some of these purchases are shifting in store which we are not tracking. that tells you that the mass market is saying i don't want to buy a $350 to $700 apple watch sight unseen like the fanatics. i'm going to go in the store, play with the watch and see if it makes sense and probably consider a lower cost alternative like the fitbit. i think the question for apple is -- >> have you had a product like this that had marketing up front and didn't have availability? people who wanted to get it had a huge wait time and maybe they decided let me wait until i hear

they've got these things in stock, they'll be able to ship the same day i order it. could we need a reset that apple needs to say, we've got all the skews, your watches and come back and get them and people might come back? >> if you go back to the iphone days, i used to be in the mobile industry before this. it's not like the iphone just dramatically became a pass market phenomenon from day one. you always have a pop on day one with the fanatics then it drops off. the question is is apple watch going to cross the chasm, are they going to go from the apple loyalists who are buying it to the mass market who had other options and choices given the price points? that's the question. we are going to have to keep measuring it to see. >> keep us posted. thank you so much for joining us. appreciate it. >> my pleasure. here is what's happening this hour.

south carolina's governor nikki haley signing legislation to take down the confederate flag from the state house grounds. 50 years after it was first raised. the flag will come down in a ceremony tomorrow morning at 10:00 a.m. eastern time. fbi director james comey telling reporters some of the roughly 10 people arrested on isis-related charges during the past month were plotting terror attacks on the fourth of july. he declined to say what the nature of the attacks were. florida's supreme court ruling the state's congressional maps don't meet requirements of a voter-approved constitutional amendment that prohibits political lines from being drawn to 0 favor incumbents. the court ordered the legislature to draw the maps once again. a disturbing video. a new york city panera bread manager was fired after video was posted showing him knocking out an employee. the employee allegedly attacked him after a heated argument. video shows the female employee yelling at the male manager and

hitting them. he grabs the woman by the collar and knocks her down with a single punch. disturbing to say the least. that is the cnbc news update. back to you. >> i might need a moment. thank you. up next with chairman reid hoffman, what he thinks the next big thing in silicon valley is and if he is worried about a possible start-up bubble forming. >> "star wars" anticipation going into hyper drive at this year's comic-con in san diego. jane wells with the latest buzz on what new details will be unveiled.

welcome back. let's take a look how we finished the session. yesterday we had the 3 1/2 hour shutdown on the new york stock exchange. today a bounce back led by china, led by europe. the dow going out actually with only a gain of about 33 points. s&p up four and nasdaq up about 12. earlier julia boorstin spoke to defense secretary ash carter.

julia is back to get reaction from linkedin founder reid hoffman. >> thank you, kelly. thank you for joining us in addition to being chairman of linkedin you are a partner at graylock. the question is you heard secretary carter present to you his vision of working more closely with silicon valley. what is your response? do you think it will be successful? >> i hope so. i think his visit has the right strategic goal which i think we need to connect the technology inventers with solving these problems around cyber security. that has to be a problem we solve together. his taking the initiative to do that is extremely good. it's the first step on a long road. going down that road is very important. >> we talked with the dearth of high tech talent here in the

united states. i've heard about how hard that is to hire the right people. how problematic is that in your industry? >> it's a massive problem in the tech industry. there is infinite number of jobs like well exceeding supply in all the technology companies. you see that in terms of what goes on in terms of salary compensation wage inflation. all new techniques for hiring. it's a serious thing. mark zuckerberg and i are doing forward dot u.s. because solving the immigration problem is important for all of us. it's a critical problem to figure out how to get more tech people in government to build the right technological systems for the government. >> immigration a key part of that. >> let me pick up on a point our john fortt was making. some of the performance of these tech companies, the best performing ones hasn't been that strong. are you starting to tell executives to get more conservative? are you doing so yourself here?

do you think it's possible that the excitement the money flowing around has peaked? >> i don't think generally, i don't think the tech industry is thinking it's a time for conservatism. there is innovation and development going on. the fact we are just beginning to learn new things like what is the real set-up mobile health once you get mobile devices and wearables, what does that mean for health? what are the trends in big data? how are techniques like machine learning, self-driving cars? the general mood within the technology industry is there is a ton of things around the corner to be invented and we should be headed toward them. so i don't think conservatism is the right word. >> that is encouraging. we just heard another class action suit uber us trying to

push back against. how much does there need to be a third way for workers in this economy? i would love to hear your thoughts how we need to define this and make it part of our economy so people can do the work they want to do going forward? >> that is exactly right. the employment law needs to evolve with the times. it needs to evolve where we are in a network age and how does a network worker work? details of that need to be worked out. i don't think any current classifications fully work. one of my partners at greylock wrote a piece of a notion of a network base work force that has flexibility. you have to protect the workers. all those things are extremely important. a lot of considerations have to go into it. your call is right. >> a follow-up on that one. one more thing.

i want to go to the point how important the slowdown in china might be for apple and other players in silicon valley. when markets are good it's easy for people to get excited about new ideas. do you see any signs as froth comes out of the market it will force people to pull in their horns? >> i haven't seen any signs yet. when there is a general perception of threat or lack of growth people get much more short term in their thinking. the fortunate thing is people see such possibilities with some of the new areas in technology that as far as i can tell investment is increasing on building these technologies. that's a silicon valley perspective. in silicon valley it's still full speed ahead. >> if you are an investor in air bnb, what do you think the next big marketplace could be that

could disrupt an industry the wear air bnb disrupted hotels? >> we made an investment with eat with have every person turn their home into a restaurant. similar way where you would say it can be local culture, home cooked, what happens if you enabled someone to say all i do is i can make my home onto a restaurant and i can make grandma's recipes? we are seeing great success in barcelona and other cities around the world. >> kelly was talking about regulatory challenges for uber. air bnb is facing challenges. it seems a home restaurant would face challenges. how much do the laws need to change? >> there need to be regulation but laws need to change. regulation is there for good purpose, how do we protect consumers and make sure the market is generally stable? none of those laws envision the new kinds of network

technologies they have. you enable all the hosts, all the restaurant tourism in order to be entrepreneurs, to create something new to make something that could delight people. you have to make sure that the food is safe zoning laws are respected. that's important. the laws need to evolve because it helps make society better. >> such a fascinating area reid hoffman, thank you for joining us. we'll let you get back to the conference. >> i'm buzzing from that. thank you so much. >> i feel like i live this divided life having been in silicon valley for 15 years. now here. he talked about serious things. health, travel. till con valley always invests in serious things even during the down periods, during 2001 2002 2003. apple was building a lot of

important software. that doesn't necessarily mean we are not set for a leg down. i wonder whether this just continues or whether it's time to get serious along the lines of the kinds of investments he was talking about. >> a lot of stuff to follow up with. i love way said about the uncollared worker. jeb bush has a solution for growing the economy. you may not like it. the answer is a chance to give employees a chance to work more hours.

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 is just one of the features that come standard with a base liberty mutual policy. and for drivers with accident forgivness,rates won't go up due to your first accident. learn more by calling switch to liberty mutual and you can save up to $423. for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance.

jeb bush told new hampshire's union leader what he thinks we need to do 0 to grow the country's economy. >> my aspiration for the country, and i believe we can achieve it is 4% growth as far as the eye can see, which means we have to be a lot more productive. work force participation has to rise from its all-time modern lows. means that people need to work longer hours and through productivity gain more income for their families. that it's only way to get out of this rut we are in. >> now, after saying this and

seeing social media light up his aides said he was referring to part-time workers. joining us is barney frank and larry kudlow. welcome to you both what did he mean by this and is he right? >> he is right. i love his 4% growth target. he is saying involuntary part time workers. you've got 6.5 million involuntary part time workers for economic reasons. at the same time as the last recovery, 4.2 million. that's over 2 million. that's a lot of jobs. we are about 5.5 million jobs short. that is what jeb is saying. and it's involuntary. i'm going to say in a moment or two why government incentives are discouraging work. >> before you do that barney what did you make of this? do you agree this is what we

need to see happen? more people getting more hours, more hours they want to work? >> if they want to. what i see happening is jeb bush saying something he realized he shouldn't have said. there is no way you can hear way said first and believe that is what he meant when he said people had to work longer hours. clear le, he is talking about expanding the workweek. when people talk about doing that, my question to people who talk of family values is, how does that coincide with family responsibilities? we are talking about two working parents. yeah, you could talk about people having the option of working longer hours if you had more family time built into this. as to the substance, 4% is a nice number to pull out of the air. it's not one any society has been able to sustain for a long period of time. beyond that i agree the goal should be to increase productivity. not by making people work a longer workweek. we can do this by better

education, better infrastructure better equipping people. part of the problem is to the extent productivity has been increased over the past few years, very little has gone to the benefit of the workers who have become more productive. give them more incentive, but share in the increased productive they have given us would be a good step. >> productivity has been almost nil, less than 1%. the growth of the work force is less than 1%. we are kind of trapped in this 2% or less. we can break out of that if we have less discouraging government policies. i'm not talking about full time and neither was jeb. he was talking involuntary part time for economic reasons. >> he didn't say that. you and he made that up. >> i haven't talked to him. he said that to the union leader or peculiar guyed that. >> i clarified it right.

he re-said it. >> you've got to cut him slack. we all of us make little errors in life. he understands the basic point. he is a good economist. i'll give you an example. let's go right to obamacare. let's talk about the 29ers. if you work the 30th hour then your company has to buy a very expensive health care plan they do not want to buy, okay? the workers probably winds up in medicaid which is a disaster. that's the kind of thing that creates involuntary, part-time work for economic reasons. it shows you the incentive structure is all perverse and wrong. >> in the first place, what the omb has said congressional budget office rather run by a republican who believes in dynamic scoring is that the major discouragement to work is when people have health care they don't have to work to get health care, that is a good

thing for society. people ought to be able to work if they want to. having health care is a useful thing. secondly, let's go back. you say everybody misspeaks. you said that's not what he meant. you changed that. that's what he misspoke. it's a basic difference of opinion. he wants people to work more hours. >> barney, you are being too tough on him. >> poor jeb bush. >> maybe he shouldn't run for president. >> i'll defend barney frank when you misspeak. we must change our government incentives so that it pays more after tax to work. >> let's raise the minimum wage. >> i don't think we are going to come to a meeting of the minds on this one. >> i can't stand the minimum

wage. the main thing is grow the economy more. >> barney frank, larry kudlow. gentlemen -- >> don't talk about raising wages. >> we have to leave it there. appreciate it. appreciate your time as always. more after hours somewhere, maybe tomorrow or something. appreciate it. it's not a bird or plane, ib m's super chip it can jump tall buildings. can it save ib m's slumping stock? that's next. 7

. welcome back. ibm is making a big bet on a tiny chip. it's a five-year $3 billion investment and big blue unveiled the first seven nanno meter chips, four times faster than anything available in the computing word. jon fortt, this will boost the slumping stock and be key to the future? >> no, because it's not a real chip. it's a science project at this point not to undermine or shortchange the research this is an important stage in coming out with a product. when you talk chips, you need to be able to make millions of them at scale with yields near 90%.

so when you take them out of the oven nine out of ten of them work the way they should. the fact they can make one seven doesn't mean so much. now, where are we overall? intel is making 14 nanno meter chips, so are others. they are working on ten nanno meter. intel might be able to make a seven for all we know. they don't put out these releases. he says hey, be careful about the press releases and not able making one chip it's about being able to make millions. >> be careful about any press releases. fascinating and out in san diego, comic conn means jane wells is there to claim her spot in line. we're going to find out what exactly is going on when we come back. eligibility? you may think you can put off checking

out your medicare options until you're sixty-five but now is a good time to get the ball rolling. keep in mind medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free [decision guide]. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients

and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans endorsed by aarp an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free [decision guide] and start gathering the information you need to help you keep rolling with confidence. go long™. ♪

droid, jet eye and rookies, a "star wars" mania. jane wells is there and joins us with what to expect and who was

there a second ago? >> reporter: my new best friends. we have these new top "star wars" chips available starting at walmart monday and yoda ears for your pet from petco and they are at comic-con. >> we're home. >> reporter: now "star wars" is one of the few movies actually being previewed but a force to be reckoned with. disney will have a huge panel here tomorrow. also, that may be one reason the crowd here this year could be skewing a little older coming from a generation a long time ago and a decade of 1977. the movie will marry something old with something new. keep in mind disney is holding it's own event next month in anaheim with marvel. marvel is not here at comic-con. that benefits warner brothers and this of course is also the

movie previewed here. batman versus superman with a panel in the first public panel since news of the divorce. holy awkward, batman. >> thanks. >> you psychosiked? >> i am a.. i'm sticking to it, i'll see it multiple times. >> i'm trying to figure out what the plural of jedi is and how to spell wookie. >> i was thinking about the "star wars" movie. >> step? >> doing a great job publicizing it. a lot of excitement. hard to not want to go and see it. >> i want a pair of batman shades, try to get some. thanks to jane wells, thanks to you guys for joining us and closing bell. "fast money" coming up with

melissa lee and the gang. >> i never watched "star wars" kelly. solar stocks getting pummeled because of the chinese sell offs. stocks are going gang busters did we get the all clear to buy? >> that's a big question straight over to you guys. >> "fast money" starts now live from the nasdaq market overlooking times square. traders are john brian kelly, karen and guy. tonight, apple's dive and behind the sell off and if now is the time to buy, plus three names that could be the next big fire tech takeovers but first, breaking news that could have potential to send shock waves to the markets tomorrow. let's head to at thens and get the latest in fast-moving developments in greece. michelle kerr maichelle