good morning, it is 11:00 a.m. and the canyon of heros in new york city where the u.s. women's soccer team celebrating the world cup championship and it's 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ >> welcome to "squawk alley" for

a friday. joining us today, kara swisher, the co-executive editor of re/code, and kayla tausche. good morning, guys, we want to show awe brief shot of the u.s. women's national soccer team celebrating their world cup championship with a parade in new york city today. they're traveling down the famous canyon of heroes. in lower manhattan. the first time that a woman's sports team has received a ride down that canyon of heroes. of course follows their 5-2 victory over japan on sunday. securing the third world cup title for this country. >> i grew up with the '99 world cup team. everybody idolized mia hamm, i think the ratings also, the highest-rated sporting event. >> for any soccer game in this country, ever. which is just mind-blowing.

>> dow up 181, our open strong. let's start with kara and talk about apple shares rebounding, from hitting the correction level yesterday, hitting their 200-day moving average for the first time in almost two years. concerns obviously in this case about growth in china, jon fortt. their second largest market now. >> that's a reason to be concerned because they focus so much on growth potential in china. it's not clear how much the market action in china seen going to affect apple sales, we'll find out more on earnings time, based on the stuff we actually know things are going well for apple, iphone estimates have been up as far as analysts looking at the channel, apple appears to be making a lot of the newer iphones we expect to see in september. apple music, that big launch

appeared to be working after all the taylor swift brouhaha. nobody expected that to contribute significantly. and samsung that seems to have missed the mark a little bit as far as how many of its phones it was satisfying demand. i'm not sure that now is the time to be bearish on apple based on the numbers we know, anyway. >> kara, would you agree with that? the second calendar quarter. hasn't been a good one for launches, but apple has changed that. >> it's troubled in china. you can't underscore what's going on there. >> that's the company that's tried to make a point of growth in china. they're going to get the opposite side when there's down side in china. i think the question is can they keep a lot of the growth is coming in china. can they keep the growth? that's the problem with apple it's so big, it's so fast.

the expectations are outside because of the enormous growth. and at the same time when you have a glitch in china or the am watch gets sort of a math kind of thing and they don't have another big growth area. their stock is going to be affected, period. >> that's the way it is. >> we got some headlines this week kara about the new run for the iphone. more suppliers, a record run in this case. is it the feeling where are you, that this is, that we are nowhere near the end of the cycle, as some analysts have argued on downgrades? >> no, think it's still enormously strong company. let's be clear. it's just they've made a lot of splashes that aren't as splashy. with china and greece, too. the whole questions about the global economy. and especially in china they're going to see, they're going to see more of a hit than other tech companies. because they've had more of a growth there and it's again been an impressive growth. but it is what it is. >> we'll keep our eye on 121.09. then we have this unusual move,

kara, taking direct aim at their smartphone competitors, debuting two new ads last night. for the iphone. let's take a quick listen to that. >> yup, when you design the whole phone, all the parts work together as one amazing part. if it's not an iphone, it's not an iphone. >> so we see the evolution in the hardware, now we see the evolution in the marketing. >> i don't like this, i don't think they should use the words hardware and software in an apple ad. it's all about feelings and emotions. i find it curious they're using it in a consumer ad. it's slightly defensive. they don't need to be, they have a fantastic phone and it's not like their competitors are tearing up the landscape with a great phone. >> here's where it makes sense. >> i don't like these ads. >> not thrilling ads, here's where it makes sense, apple is on the tail-end of their cycle. samsung's galaxy s 6 and s 6

edge is after and the note is ready to come out to compete with the iphone 6-plus. >> they want to remind people you love the apple, don't buy the samsung things that are coming out. we don't think they're made as well. wait for the iphone in september, we promise you'll love it. >> i guess, it feels like it's an ad that anybody could have done. it's nice ad, pretty, but it's not one of those things that sticks in your throat, not in a bad way, but gives you good emotion. >> it's divergent from the way that am approached advertising previously it very rarely even showed the phone until the end of the ad. instead it chose to tell you stories about how your life would improve. whether it was from music or the photography that you would be able to use the iphone for. do they have no more stories to tell about this product? >> no, they could pull out one of those tear jerkers any time you want. you have an emotional connection to the apple ads and the apple device, think this is an ad that could have been for a soda. i don't know, i feel like it wasn't very,i not coca-cola,

it's not coke la. that kind of thing. >> we make the can and the contents. >> it's kind of like an older mac ad in a way, which perhaps speaks to the maturing of the product. they're not advertising something new. >> i guess, you know remember the baloney ad, i didn't want blowny, but it made me cry. i think apple ads affect you emotionally. i don't know. i feel like they're better than this ad. it's a very good ad, but not as good as they are. >> i'll have the baloney theme in my head all day, thank you, kara. >> a great ad. facebook denying a report that it's aiming to get into the music business. a facebook executive saying that the has no plans to go into music streaming but "the new

york times" says it's talking about using music videos on the site. potentially another site by the social network to monetize videos and target google's youtube dominance. which is the pepsico, boeing airbus battle we talk about more and more. >> i wonder how facebook gets into this. right now movie trailers do quite well for them compared to youtube. but music videos are different. the reports suggest they're not trying to put every music video on to facebook. they want to experiment with a few that the labels choose, that was in billboard's report. how do they do that? when you've got vivo that's had a longstanding relationship with youtube. and dot artists and labels end up posting the videos, does facebook create a separate product where those things live? not clear. >> kara, jon brings up a good point we talk about the fact we watch music vows on youtube. but it seems to be vivo that's powering those views on youtube. what can facebook do without

that? >> why does facebook want them to be hosted on youtube? this is a natural move we keep calling them and say being we hear you're going to cut off a little bit of youtube. of course they won't. why should youtube host the videos if they can and they need to play nice with hollywood. it makes perfect sense. anybody people get on youtube, you should be able to get on facebook. this makes total sense. maybe they're not doing a music streaming now, but they have to be thinking about it and the idea behind it again it's a use case that everybody uses every day. hosting music videos seems to be an obvious move. and think they'll have more relationships with hollywood to get more content up there. it makes perfect sense. >> seems like they're still in an experimental phase with video, i spoke with kara everson in cannes and i asked her what the strategy was with the product. and she said we'll put out there

whatever the consumers will chew on. the 22-minute fashion runway video gets extreme popularity. something even she couldn't have predicted. how experimental is this? >> i don't think it's experimental. video is their future. they've had enormous growth in a short time. why give up the business to youtube? why not take that business? there's no reason and people have the habit of watching videos on facebook. and they do enormously well. we had elizabeth warren video that went crazy on facebook. it was astonishing to watch the growth of that thing. why not? why let googville that business. it makes sense and it keeps people on the site and makes it a great place to be. they're going to be big into video, period. >> that would be a fun battle to watch and of course a lot of us benefit as a result. finally kara, we want to mention your new podcast re/code decode. tell us about it and how long until you take our jobs? >> i'm going to take all your jobs and broadcast all day long. no, it's a new podcast we're

doing, trying to extend the code conferences all year-round. we're already 34 on itunes podcasts, we're very excited. it's a good way to do interviews all year-round. and to get very intimate interviews with people in a setting that is substantive. a lot of interviews, you know like we do at the code conference, we want them to be deep and show you people that aren't on the stages. very interesting unusual people. and then what we also did is we in re/code replay radio, we're putting up all the code conference videos in an audio form, in a podcast form. you can experience these great interviews and we hope it will do well. we're having a lot of fun with it. >> well we've seen you obviously over the years, hold so many feet to the fire. everywhere from the president to steve jobs. it's going to be great, congratulations on that. >> thanks a lot. >> kara swisher again, the podcast is called the re/code decode. when we come back what is twitter these days? "the new york times'" nick

bilton is searching for an answer. what to expect from tech earnings next week? why rbc's mark mahaney thinks that things will not be as bullish as they were in q 1. and the markets are jumping this morning, off the highs as the weekend approaches, could greece derail some gains as we get into the close? "squawk alley" will be right back. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor.

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live picture of lower manhattan where the crowds have been building for the ticker tape parade for the u.s. women's national soccer team being celebrated in the canyon of heroes, alex morgan, hope solo, carli lloyd, not to mention mayor bill de blasio and governor andrew cuomo. >> it starts at the southern-most tip of manhattan near battery park and it ends at city hall. they're going straight up broadway right by us, it will end with a 1:00 p.m. ceremony with the mayor at city hall. we'll keep an eye on that. an exciting day for new york city and the entire country as we celebrate the world cup win. internet stocks are on a roller coaster ride during the second quarter, with three of the 10 large-cap stocks trading down

10% for the year. there were a few stand-out performers, netflix, amazon, both of those companies up more than 50% year to date. what can investors expect from internet earnings going forward? here with more is mark mahaney, internet analyst at rbc capital markets. mark, great to see you this morning. >> you call this a balance set-up for earnings, what exactly are we seeing? what is this balanced set-up and how do you play it? >> well just in terms of valuations across the group. we began the year with a good number of majority of the internet stocks trading near 52-week lows, now we've gotten a majority of them trading near 52-week highs, the sentiment on the internet sector has recovered. i don't think it's gotten overboard. i don't think we have a bubble in the public internet sector. but valuations have recovered. now the stocks will rise, it will be because earnings rise, not just multiples, multiples don't rise. >> facebook, ebay are the least

risk going into earnings, why is that? >> so with facebook and facebook is one of our top three picks, with a 12-month outlook, we like amazon first, it's been our top pick since the beginning of the year. facebook is number two and linkedin is number three. just at the quarter. facebook is in a sweet spot. they've figured out mobile and social and you're getting this really large influx of tv ad budget migrating over to the internet. that's why the up-fronts are weak. a lots of those dollars we think are going to facebook, we don't think we're going to see the kind of deceleration in the street estimates for facebook for the balance of the year. >> you don't think the aggressive spending that the company itself warned us about last october will come home to roost this quarter? >> no, we don't. and by the way, i think that aggressive spending is absolutely appropriate for a company that's still relatively small. you know, 10 to 15 billion a year in annual revenue with a lot of new growth areas ahead of it. they've got to monetize instagram. they've got these communications

networks like whatsapp. you don't want to ramp up margins and have to figure out investments later. thatter doing it appropriately. >> the same time you look at twitter and linkedin and yelp, they're all down significantly over the past three months. last quarter we heard a lot about the impact of program mattma attic advertising, twitter had issues with advertising, yelp, a whole different story. what about that tier of companies? not necessarily the very biggest, your amazons or facebooks that have been struggling, what's going to turn things around for them in these reports if anything? >> i'm not sure anything will for two of those names. twitter, i think is we think is a long turn-around process. i hope it works. but you know we're not recommending the stock and hope is not a good reason to do that. they need to improve products for users and products for advertisers. there's a separate issue here. i know you've talked a lot about tech bubbles in the private market we call it the unicorn bubble. the problem is think that's

causing a lot of salesforce churn among some of the public companies, especially those in the valley, underperforming stocks, it's a bigger issue for yelp and a bigger issue for linkedin and maybe some of those companies are letting on. >> we have some of your colleagues on the sell side arguing for netflix for $1600 a share bull case, $100 billion market cap, looking at 2020 projections, you laugh? is that what we should be doing, laughing? >> 1600, let's see, boy, that's, there's a lot that's baked into that. i've been a bull on netflix since $6. also from $130 going down to 60, so we didn't necessarily call the bottom. i think it's a great fundamental story. i don't think you want to be aggressively buying netflix. it was one of our top buys at the beginning of the year as the stock has almost doubled year-to-date. you want to cool down the ardor a little bit here. come on, let's show some execution in international markets, let's see if they can have any success in japan or china before we start throwing

around $1600 price targets, please. >> we'll let you have the last word on that one, mark mahaney, appreciate it. coming up, stocks off their highs, but big gains today after some optimum out of greece. during all the volatility, the european close is always important for the rest trading day. we'll have that and the impact on the u.s., when we come back. a new season brings a new look. a chance to try something different. this summer, challenge your preconceptions and experience a cadillac for yourself. ♪

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historic meeting set to take place in greece as eu leaders meet sunday to discuss what's next for the struggling nation of greece and steve liesman is covering the latest from frankfurt. steve? >> hey, jon, thank you, after the 11th-hour submission by greece of a proposal, for a new reforms and the old reforms, it starts a series of meetings that

actually begin today, that go through this incredible bureaucratic maze of meetings that has to happen. first, today there's a meeting. the ecb, the euro group along with the imf meeting to determine if greece will qualify for a bailout. tomorrow, the eurozone finance ministers they meet to determine whether or not they could recommend that greece get a bailout to their leaders at a meeting in brussels on sunday. of the eu and the eurozone leaders. if they decide on a deal, the big question on the table is, does it also include debt restructuring, debt repro piling. we talked earlier today to the chief economist at commerce bank across town. he thinks it must include some form of debt restructuring deal for greece. >> good reasons that it may go through, because the greeks submitted a list which is more or less in line with what the

creditors had asked for. a couple of weeks ago, but on the other hand the greeks in order to tell at home, the greeks need to get something on top which would be a restructuring of debt. >> okay. so what does that deal look like? a writedown of principle would be the way to do this a lengthening of the maturity or a lowering of the already low interest rate. that creates the huge question here, in germany, this german dilemma, to deal or not deal on the issue of debt. on the one hand many germans don't support additional concessions to the greeks. on the other hand they're afraid if greek leaves the eurozone if there's an exit this could create a cascade event where european union would start going the other way. one other meeting that could take place which is monday morning if there's a deal, the

ecb could meet and open up the spigot again or the tap again to the greek banks and possibly lifting the capital controls with a huge question, how do they keep money from fleeing the country once again? jon? well thanks, steve. i know you'll continue to watch it, as will we, steve liesman. >> let's count you down to the close in the uk and across continental europe. stocks rallying on hopes as steve just said for a greek deal over the weekend. france and spain up 3% each. germany and italy not far behind. for the week, europe does finish in the green. the broader market stock 600 did outperform the s&p, we're still working on finishing up our week stateside. >> up next, what is twitter's true identity? why nick bilton said he struggled to define what the company really is. plus we're continuing to watch these markets. the dow up about 190 points. s&p up 23, nasdaq up 66. we're waiting to hear from janet yellen the fed chair a little bit after lunch-time.

"squawk alley" will be right back.

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good morning, i'm sue herera with your cnbc news update. a senior state department official says the nuclear negotiations with iran have been extended through sunday. iran agreed to keep its existing nuclear program frozen through july 13th to allow negotiations to continue. sticking points include

sanctions and the current arms embargo against iran. samsung is moving up the launch of the galaxy note smartphone it will be released in august instead of september. the move is seen as a bid to get ahead of a new potential apple iphone launch. apple typically releases new phones in september. walgreen's has reached a $22.4 million settlement with new york state. that settlement resolves claims the company improperly billed the government for reimbursement for a pediatric drug. the company agreed to the settlement without any admission of liability. and it is a beautiful day, a perfect day in fact for a parade. the u.s. women's national soccer team is the first women's team to get a new york city ticker tape parade as you can see, it's going on right now, in the canyon of heros in new york city. after the parade the team will receive keys to the city from the mayor at city hall. the team won their third fifa world cup title on sunday. that's your cnbc news update at

this hour. back to "squawk alley." nick bilton, "the new york times" columnist who wrote the book on twiller making a big confession this week in a column entitled twitter, who do you think are you? in it he reveals i've written almost a quarter of a million words about twitter, and yet if you ask me what twitter actually is, i can't answer that question. ha does a possible identity crisis at twitter say about the company's leadership? let's bring in nick bilton, good morning. >> good morning. lack of leadership, micromanaging board. no clear direction, why don't you tell us what you really think. >> i think the company is a mess and it's been a mess for a long time. what do you think twitter is? i've actually wondered what you guys think. >> well i mean obviously as you

point out, it has its birth in conflict, right? conflict between different doctrines among various founders. the old line about the guys who drove their clown car into a gold mine and fell in. >> it rings true. >> the reality is that when you look at facebook, mark zuck zuckerberg is clearly in charge, he runs the product, he runs the company. he puts forward the direction. when you look at twitter, who's in charge? i don't know, they've had three ceos, that doesn't include if you count the first co-founder, noah glass who was kind of overseeing the company from the beginning and was pushed out. they've had eight product people, seven of who have been fired or forced to quit. c dpmpb os, coos, have been fired. the turmoil and the change within the company is exacerbating. it's kind of mind-boggling to think of that and then if you look at the board, you have

37.5% of the board is ex-ceos of twitter. then the other half of the board, they don't even tweet. marjorie has, i think eight tweets since she, it was nine yesterday. although she didn't tweet probably. >> she says in her bio, she's just a twitter follower, does that give her any cover? >> i don't believe that. >> nick, i completely agree with you on the management issues, but i got to push back on this whole product. what is the company thing this is only something that we ask of companies that are having trouble, particularly when their stocks are down. you ask what is facebook. we used to know, but after instagram and whatsapp and you know this internet.org thing. if people weren't doing that, people would be saying that about them. snapchat isn't what it used to be. google gets criticized. apple used to make computers and now they're doing this music stuff and what-not. it's working for them so we don't criticize it, right? >> google primarily is a search engine and they have a lot of

other little umbrella products underneath that facebook is a social network where you connect with your friends and family and they have a number of different products under that, all communication-related. or entertainment-related. when you look at twitter, the core product, i cannot tell you what it is, is it a social network, a place for conversation, a place for a bunch of media people to talk about how wonderful they are? i don't know. >> yes. >> and one of the things that i -- yes. when i realize that people say to me, that are not on twitter, they say, what is it? i really cannot answer that question. i can say well some people use it for this and some people use it for that. but i don't know. >> how do you square the circle of the sheer amount of free publicity that they get every day on our show, on television programs, on broadcast television, in primetime. snoop dogg is not tweeting about run facebook. saying he still wants to run

twitter. another reason, i tweet, you hear me, nick bilton? >> i think snoop dawg would be a pretty good choice, he uses the product more than a lot of the board members. the reason we talk about twitter so much is people in the media love twitter. that's a core demographic. but if you, if you go back to the beginning of the founding of the company, you know there was two core people that drove what twitter was. there was evan williams and jack dorsey. evan williams said twitter was about media news, a news channel that could you follow the news in real-time. jack dorsey always saw it as a way of you being the news and you saying what you were doing and yuch dating your status. and those are very different things. when you give people 140 characters to talk about those things in a different way, it creates a really confusing sense of what this product is. and then what happened was dick costolo took over and dick didn't believe it was either of those things. he thought it was about

conversation and i think what's happened is you have new people that come along to the service and then don't know what they're supposed to do and that in my opinion is why twitter has 300 million users and facebook has 1.4 billion. >> nick, rather than have a debate that we've already had several times before. let's talk about what the company should do to redefine its product, to double down on what appears to be a fairly strong bench they've been building over the last few years. you have said that maybe the board needs new blood. what do you think the company does from here to redefine itself? i think the first thing they need to do whoever they decide is the next ceo of the company, they need to give them complete carte blanche to do whatever they want to do with the company. if you look at other products, facebook, netflix they have changed their look and feel over the years and twitter has not. the other thing is that ceo needs to clean up the board. you know, there are board

members that go beyond the ceo and go to middle management and do their own investigations and things like that. that are doing interviews with people and so on. that i just don't think they should be doing. i don't see any other company. but the core thing that the next ceo needs to do is define the product in a way and do everything to get people to understand that. and as a result we'll grow the user base, which is what twitter needs to do. >> i'm sure you were joking, maybe when you said snoop should run it who do you think quickly should run it? you know i think that there are a lot of options for people out there that are you know, finance and former ceos of company that have focused on growing revenue. i don't think that's what twitter needs. i think twitter can figure that stuff out. they have a great team in place to do that. i think they need a product-oriented ceo and there's not a lot of people out there. i know they've talked to adam bain who is the chief finance revenues guy there.

he is loved within the company. he could be a great choice, i know they've talked to jack doorcy jack would be a great choice, but jack right now is saying he wants to stay at square. then there are a few people at google that they're looking at. and they haven't reached out to anyone with an offer. but there are a lot of people at google who understand product and i think that could be a good choice over at twitter. >> maybe dr. dre over snoop. >> the final is dr. dre runs product and snoop does all the cloud stuff. >> nick, a great piece, we'll see you soon, thanks for joining us. >> thank you very much. nick bilton of the "new york times." >> when we come back, volatility continues but it is another strong day for stocks. the dow is hanging in there.

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how long will it last? how long to play it, plus why tiaakref's will we get clues about when a rate rise might happen if and apple is approaching correction territory. why it might be destined for the danger zone. that and more coming up on the "halftime report" live from the nasdaq, jon, a first.

>> all right. >> where do silicon valley executives gather to make great deals. one is a luxury hotel just across the golden gate bridge, with rooms that run from hundreds to tens of thousands of dollars to stay in a night. josh lipton is live in sausalito. >> it's referred to as the suite for tech's elite. welcome to casa madrona. the luxury hotel in sausalito is minutes from san francisco's golden gate bridge and it is the place to be for start-up founders, veteran tur capitalists and tech giants. in the past year more than 75 tech companies have come to casa madrona or held meetings here, including ebay, dropbox and uber. >> we positioned this property to cater to that clientele. all of these glass doors open up

and this suite is very inspiring space. we, have essentially followed our clients' lead in breaking down barriers and innovating in their industries and we've done the same in this space. >> now this hotel offers guest rooms and cottages, but the property's signature 5,000 square-foot main residence is the so-called alexandrite suite, here guests can have access to their own private chef and private car and designated concierge and sailing lessons. the cost? a cool $10,000 per night. management telgs me there's no request that is too extravagant. guests used to be able to have champagne delivered by drones. but the faa unfortunately just put a stop to that service. guys, back to you. >> josh lipton in a beautiful part of the country, sausalito. let's get to the cme group,

rick santelli with the santelli exchange, hey, rick. like to welcome my last guest of the week, peter bookfar, thanks for taking the time, peter. >> thank you. >> will was so many things i wanted to discuss with you today. but let's cut to the chase, shall we? you know if you're an investor, whether you're an investor domiciled in the u.s. or anywhere around the globe, considering what china lass done with the ecb has done. all the policy we see by central banks and central planners, what's an investor to look at? the markets? is the chinese stock market signal worth anything? what about the signal of interest rates? should a spanish 10-year be at its current rate, below a 10-year in the u.s.? it seems to me that market signals are not what they used to be. your thoughts? >> well central bankers, led by the fed have destroyed the pricing mechanism. where interest rates should be based on the supply/demand for money, it's created in

closed-door rooms at a rate that bureaucrats think is the right rate. so if the cost of money is a fake price, every asset dependant on that price of money is an artificial price as well. that works for a period of time when things go up, that's what central bank remembers trying to encourage. as seen in china it is a wake-up call that the so-called central bank put works for a while until it doesn't. now whether it works or whether it doesn't work is a great topic around the water cooler. but it still isn't going to give investors that special area to look at or pay attention. now let's switch gears and bring it more to home. it's tough in a counterfactual world. you've done much work on this. what are the unintended consequences 23 in, in your opinion, on zero interest rate policy during a time when there's debate on whether it's going to end in september or next year or whenever? >> the slis getting longer and longer. >> first thing, central bankers by cutting interest rates don't create anything new. all they do is pull forward

economic activity. they want you to buy a house or a car today instead of tomorrow. but overall no economic activity of substance happens that wouldn't have happened already. it creates excessive leverage. it encourages borrowers to borrow and borrow and encourages lenders desperate for yield to lend the money. we're seven years into zero interest rates, i feel bad for safv safers. it creates excess capacity in a variety of industries by pulling forward activity where this eventually always a hangover. when the hangover occurs, well then it's immediately snaps back capital spending. we're seven years into a recovery. capacity utilization is still below its long-term average. those are few and also lastly, it raises asset prices, asset price inflation is still inflation. while it may not be consumer inflation at that the fed likes to look at and other central bankers do. it's asset price inflation that

eventually reverse it isself to the down side with ominous implications, but still high debt levels that still remains. ? peter, excellent wrap-up. thanks for taking the time today. kayla, back to you. >> all right. thanks so much, rick, thanks peter. we're keeping our eye on markets, all major averages here just took a big leg higher. the s&p 500 is now positive by about two points on the week. the dow about 40 points. it was the european close that gave a little confidence, headlines about potentially greek banks reopening at the end of the week. "squawk alley" will have it all, when we come back. [ female announcer ] who are we? we are the thinkers.

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still busy, crowds in lower manhattan as the parade for the women's u.s. soccer team continues. i think they've closed subway stops. a lot of chance force cheers for the team bringing home the world cup. >> a lot of confetti and a lot of momentum in the markets. moving into positive territory. right now stocks are pretty much near their highs of the day, the dow is up 231 points, i believe earlier after the open we were up only about 225 points, certainly gaining momentum after that european close. art cashin is here to put it into context for us. art, we saw futures positive after asia closed and we saw asia close up. then of course, we saw europe close, europe closed up. now we're getting another leg

higher. what is it? >> well it is, it's, there's a large round of hope about what's going on in greece. and it would also appear in china that the government's policy of rally or be executed is working pretty well. they had over 1,000 issues were up the limit last night's session and only seven had a minus sign. so pretty heavily up day so that is spilled over here. we're right now confronting a little bit of a resistance band in the s&p, which is 2075 to 2080. that restrained us yesterday and caused that rally to fail. this one is battling against it. but has not has not shown any signs of giving up yet. >> we're waiting to hear what happens in the meeting of euro group leaders today and what ends up happening with the greek bailout proposal. which a lot of people are saying looks a lot like the june 26th proposal that greece was so

unhappy with. >> the one they voted down in the referendum. it looks almost exactly like it we've got yellen coming up at 12:30. i'm not looking for anything big. only because next week is her humphrey hawkins te testimony. i think she'll try to be a little guarded or restrained, so as not to give opportunity to any of the people in congress to open things up too wide. we could always get surprises. and then we'll have to see going into the final hour, how do people play this? could there be a negative surprise out of greece? do you want to reduce some risk for now? it's the shorts who are covering to reduce their risk. >> just in the past hour there seems to be another leg up. i mean apple sup more than 2.5%. google is, too. what's going on there? just, i mean we've known about china for a while. greece also. but what accounts for just the past hour's worth of activity? >> i think some of it could be attributed to you folks. the talk about apple, and the

fact that the outlook even though china was having some difficulty, might not be that bad for apple. that things are progressing. i saw the stock begin to turn up there. and of course, it's been riding as you've pointed out, multi-week down session, bordering on a correction. that's inspiring some short covering in here, too. >> it's not all good stuff. because this all could fall apart on sunday before we let you go, how should people be setting up for possible volatility on monday? >> i think you want to set up as best you can. for a little bit of a hedge here. they saw what happened in the last 24 hours, before people in the u.s. even got a shot at anything. the markets spiked higher when hollande of france said the proposal looks somewhat credible. so i would think you might use as the najarians say an option strategy. give yourself a little

protection, i would not strain to have too high of a position going into the weekend. >> art cashin, from ubs. pc sales keep on crashing. that according to two new market research reports out this week. including tablets, including a 9.5% decline year over year. a separate report by idc, which did not include tablets, tracked a steeper decline of 11.8%. still the q 2 declines marked the sharpest for the pc business in two years. we've been talking about the decline, does this seem steeper than you were expecting? >> it doesn't. i know i sound different from a lot of people when i say that. this is that period when you expect to see new pcs coming out. the old ones aren't going to sell as well. >> we'll keep watching the markets on the other side of the break, "squawk alley" will be right back.

welcome back. china's stock markets seeing a bit of a turn-around over the past couple of days. could its economy be bad for the u.s. housing market? we have one of the stars of "million dollar listing san francisco" a broker with coldwell bankers and i'm wondering what you've seen over

the past month, as the chinese stock market fell. we know that in certain areas, in the bay area where the school districts are strong, we've seen a lot of chinese buyers, has their sentiment shifted at all? >> well 70% of the buyers are still preferring single-family home versus inner city condo. about 20% of the people so they are mainly looking for the good school districts. they're looking for a little bit of cloud. to mention to their friends and family that hey, i own a home in hillsboro or i own a home in atherton. it brings up their cache as well. we're not noticing too much negativity. because the people that are buying definitely have enough means to do that. in a comfortable fashion. is. >> so it's not having an effect on how wealthy they feel? they're still looking at atherton, they're not looking down in palo alto instead? >> it's one of those things

where the international buyer, about 40% of them are using this just primarily as a home that they're going to be living in as a primary residence. the rest of them are using it purely as an investment purpose. they're going to be renting it out and using it for a long-term hold and definitely taking advantage of the finances that are going to be coming in from rents and paying off the mortgage that way or paying all cash. >> and what proportion of the buyers you see are chinese buyers at this point? >> 30%, 30% of the buyers from china that are doing international investment here in the states. especially concentrated in the bay area since 2012 in new york city. they've spent $5 billion of investment in new york city real estate as well. we're hoping more of it shifts over to the west coast. including the bay area. roh habibi, of coldwell and one of the stars of "million dollar listings san francisco."

>> the foreign investment in real estate. a safe deposit box with a view. meantime market session highs, we'll keep our eyes peel fod the headlines out of greece. yellen talks in 30 minutes, nasdaq close to the best day since january. let's get to the half. melissa lee at the nasdaq. ♪ ♪ >> i'm melissa lee filling in for scott walker. jimmen that will, jon najarian and sarat sekki. janet yellen speaks at 12:30. is a rate hike coming sooner or later than investors expect. rotten apple -- why one analyst thinks the tech darling has further to fall. but first a big celebration on wall street. soccer fans cheering the u.s. women's team as they show off their world cup trophy and investors are cheering the big market y.