good morning, it is 8:00 a.m. at linkedin headquarters in mountain view, california, it's 11:00 a.m. on wall street. "squawk alley" is live. ♪ >> welcome to "squawk alley" join us, kara switzer and julia boorstin and the dow is back to positive territory after a 50-point drop on some of the oil. first up shared of linkedin

getting hit even though earnings and revenue topped estimates. shares were up more than 14% at one point yesterday afterhours but started to fall during the call and down about almost 8%. some of the drop probably attributed to investor concerns over the direction of the advertising portion of the business. john, display ads, decelerating faster quarter on quarter and the stock chart looking at it afterhours it's like a roller coaster literally. >> feels like they did the math, investors anyway figuring out okay, they raised guidance but when you consider that there was this benefit from them integrating in early, that basically goes away and it ends up being a bit of a guide down based on what you'd expect sequentially and then yes, this display advertising thing, premium display, we've seen the impact programmatic, linkedin was one of the first to single it out a quarter ago, it hit yelp, hitted linkedin in, too. they have a diversified

business. this isn't all of linked in by any stretch and their core business was doing well. the evaluation of a company like this and overall what its growth prospects are, now you have to figure out okay, given that the advertising business isn't growing as fast as expected what is the rests of business going to do. >> the other part of growth is decelerating. linkedin expects to do $50 million more in revenue from lin linda.com from the rest of the year so that's driving the upside in terms of productions. >> after linda contributed about 18 million in sales over the quarter. kara we don't ask you too much about stock and price action but how are you supposed to trade these names, given these, this collision of metrics? >> i don't know if it's a collision of metrics. it's wall street acting the way it does. the company they bid up like crazy and got a growth multiple on it that's insane and when they don't grow in the way that wall street makes up the way it should be growing they get hit. now they're starting to buy

companies in order to buy revenue which is what everybody does. yahoo! has done it, not very successfully and everybody else does it, so when you're valued as a growth stock and not a growth, you're doing well but you're not doing crazy growth, you get hit by it, and advertising everybody knew was coming, if you didn't see that train then you deserve to get hit, but i think it's, you know, this is becoming a more or less fast growth company and that's where jeff weiner has to find new businesses to move into and why he's buying things and trying other things. >> kara, i'm curious, the sales force was an issue last quarter and they had to do some retooling to get new people in on these new territories. we heard something about sales force from yelp also, having to compete with unicorns. what did you hear in the valley and bay area in terms of demand for salespeople and the extent to which they're able to achieve the results that some of these companies want to see. >> i think it's difficult.

there's a lot of companies out there, they're competing for talent for sure, and at the same time there's a sense that, you know, how high can these things grow, to the sky, and that's the issue, is that everything has its growth limits and the question is can they find new and creative ways to find growth. the companies are all valued and if you think about it, linkedin is a grandpa compared to the, and it's not, it's a very new company, but compared to all the unicorns and that's where focus shifts and the ubers of the world and the air b&bs growing at enormous rates the comparison is not a great one for linkedin. >> baby unicorns. >> infamously volatile on earnings. yesterday's action was not a big surprise in a way. next up, kara, apple. nomura with a buy, price target 145,shars are down slightly with continued news about, you want to explain kara with these apple tv rumors or reports are all about? >> it's not rumors. they've been working on it and

they were late. we've written it a million times, here it comes, oh, no, not now. it's going toment could, not now. they were focusing on the watch i guess and delayed the apple tv upgrades and it's a device they've had around for a long time, the last upgrade i think was 2012, that's a long time. they've been trying to cobble together its streaming service which it's difficult to be doing that but they want to get into that business and so i think they're delaying the streaming service again and doing the device first but this has been rumored, not rumored, they're working on it and going to roll it out at some point in september since the iphone upgrades are not enormous, the iphone 6s i think is coming. they need some other hot product to focus on, and apple tv is long overdue for this upgrade so it shouldn't be a surprise that it's coming. >> apple tv service which i've heard for months and months has been in the works, you don't expect it to launch this fall and why not? >> no, i think the streaming service, i think peter kafka

last reported it would be delayed negotiating with hollywood and getting the right products. they do have a great, they have a lot of stuff on there, hbo and a bunch of other things. if you want a streaming service you want a robust series of offerings, even more than they have, and so when you're competing with amazon and google and others in this streaming area, and also with the hbos coming out with their own things, you have to have a really great service just like what they're doing with the music service and you know, we'll see how that's going to do, once the money, once the free trial period ends and see if people like what they made. >> the streaming space in general has gotten so crowded lately. comcast, verizon, everyone working the smaller slimmed down bundles. do you think there's a place for apple to be a successful provider of a new kind of bundle? >> you know, it's interesting. i shouldn't just make my predictions based on my kids but they switch between netflix and apple and don't use google play

but they switch between the two of them and don't seem to care what the difference is. i think it's just what they can get on them and how much they cost. so i think it's hard to distinguish itself. the netflix offering something terrific and has a lot of shows and comcast itself or whatever cable provider you have with all kinds of new ways to get content and so the question is, can you differentiate yourself? it's the same thing in the music space, it's the same thing in the communications space, so it will be interesting to see if they can. it's a nice device but it's pretty clunky. it feels pretty old when you use it right now, because it's a couple of years out from its last upgrade. >> and apple's got a lot of irons in the fire i think. we were talking about tv stuff for a while, was it going to be a big screen television, were they going to do a slimmed down box. really they need to power the iphone, the overall ios ecosystem and to me the big deal from a financial perspective for apple is, does whatever they come out with act as a nice iphone accessory that makes people say hey, it's time to upgrade. i want to get a 6 or a 6s,

whatever they call it, so i can be a part of what they're doing and they have to fix apple music which is confusing and glitchy on a number of different fronts. people seem to like the apple watch i guess but i see a number of issues with that that they could stand to fix. >> i check every day to see if john is still wearing his because i'm not wearing my opinion as much. the nomura initiation centers largely around what they think is continued strength in china and continued strength about the cycle. that's the story. >> i think the interesting thing is the car. i'm sorry, everyone's with this tv, it's been coming forever it feels like, the second coming, i'm still waiting for it, but the car is really to me where the big growth is in all these areas. that will be to me i think that's probably the most interesting part of what they're doing. the tv is just an upgrade of existing stuff, the watch was a new category obviously and it's gotten mixed reviews and we'll see how that depose. big growth apples are what we

should be looking up to apple and the car is the biggest growth area. >> we'll come back to that we'll see. microsoft says windows 10 running on more than 14 million computers, two days after the launch. the company said its goal was to get windows 10 on to a billion devices within three years. fitch out with a new note windows 10 will not salvage sinking pc sales. it believes demand will remain weak due to the increase of what else, smartphones and tablets. were people looking for this to be the saving grace? >> i still think it might be. the line between a pc and a tablet has blurred to an extreme degree. microsoft has actually staked out the fact that people want to touch their laptop screens, separate the screen from the keyboard and have more of a convertible thing. there's a possibility that will work and ipad numbers have not been growing so microsoft has an opportunity here. 14 million in this period of time, that's impressive, and this is kind of a soft launch in

october, expect to see the hardware manufacturers and microsoft come out in a bigger way when intel launches their sky link chip and the slimmer, sexier machines, that's when they'll make their big pitch for people to actually buy windows 10 machines, not just upgrade. >> it will be interesting. i think the numbers in the fall will really be the real indicator but i mean as we heard from walt, who did a review of windows 10, walt was saying he was almost reluctantly enthusiastic about the whole thing and acknowledged there are glitches with the siri alternative, but people seem to like it. >> well yes. no, they didn't like the last one. it's like having a better boyfriend i think. you know, the last one was a disaster, and so this one is correcting some of those issues, and you know, there's some nice things, there's some controversial things about shifting it to edge. it went to upgrade, making it the default browser and things like that. it's an improvement. just like with the other stuff they're just upgrades, it's just

improving already and i think the real question for all the companies is where is the real paradigm shift going to come, virtual reality, where is the next computing platform, is it mobile? is it on the wrist? a lot of them are problematic so they're all searching for the next major computing paradigm and that's what's interesting i think. that will be interesting, not these upgrades but it's a good upgrade, a very good upgrade, it's fine. >> microsoft is working on augmented reality which i got a demo of back at e3, it was cool but feels like it's not ready for prime time yet. >> it's still cool. >> yesterday you reported that nbc universal the parent of this network will invest $250 million in buzzfeed, valuing it around $1.5 billion. anything else we should know? >> well, they're taking away from your salary, i don't know if you know that. >> i asked for that one. >> it's interesting, they need to get in, the millenials are departing and they need to figure out to get into the space

and since the merger didn't work, the other merger with time warner didn't work they need to place bets around the table, a lot of the media companies do and the question is will they get value from it? what value will they get from it and second is why is buzzfeed doing this? they're a new media, they sort of want to get into tv and doing all kinds of aggressive things down in los angeles, some cool video stuff, and so it's sort of a learning thing for nbc and at the same time buzzfeed really wants to be on television and get its close-up. it's an interesting time for content companies and you know, again, we all have these conflicts of interest here, because they're also investing in box which owns us now and nbc used to onus and these companies really need to start to understand how to create and deliver content in new ways and i think that's what this is all about. >> social they have what we want and in a way we have what they want so we'll see how it works out. >> we'll see, we'll see, won't we? >> good weekend, see you later. kara swisher for us today. >> thanks.

let's check in on the markets the dow basically flat after being down about 50 points today. chevron down after profit fell 90% year on year, the lowest profit in over a decade, earlier this week the company said it would cut 1500 jobs as it looks to reduce cost by about $1 billion. exxon slipping after the company missed, the company beat on revenue but said profit from new exploration and production down 75% as fuel prices continue to fall. when we come back, is this the next major hit from netflix, the official review of the new show "wet hot american summer." linkedin shares continue to fall. and this is the place to go for budding entrepreneurs, we'll take you there live when "squawk alley" comes back. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform,

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the premiere of netflix's "wet hot summer" is shifting, in an interview with market watch reed hastings said we've been really growing in our approach to original content. take "wet hot" an example of something we're producing with a studio, a continuum of where in the process you're getting involved, weighing in on that is jason lynch who joins us this morning at post nine. good to see you again. welcome. what is he talking about? we either own it, we don't own it but there's some room in between? >> right. i think as netflix is growing,

they need to take these chances and do something different. obviously this is a first show that they've picked up that was based on a movie so it did originate from netflix. the movie does air on netflix, so this is a nice experiment for them. it's only eight episodes, it can work as a closed season or if the cast wants to come back again they can do it for more seasons. >> i think it's so interesting they're focusing on this niche content, not trying to create a general sitcom that's going to appeal to everyone. they want to create different types of niche content and some of them will have broader appeal but it almost feels like he wants to create his own universe of cable channel. >> they have their niche goals early on and want to be everything to everybody and "wet hot american summer" is a perfect example of that. this movie when it came out 2001, grossed over $300,000 at the box office which is nothing. later on it launched, these stars became huge stars, paul rudd, bradley cooper, and they

are all back for the show. any network would kill to have a show that has those stars in it. >> how calculated is this? netflix is a data company. they know what people watch which actors like, what genres they're into. did this get spit out of some watson like computer at netflix central "here's what you need to do." >> i think it was partially that. the movie did well on netflix. they sat down with the creators. what prompted this to happen was that everybody in the original movie had such affinity for it, they were all able to come back. i don't think netflix would have taken a gamble on this if it had been part of the cast and not the people you really want to see. i think it was a combination of netflix realizing the metrics worked for them and everybody from the cast wanting to come back. >> do you think this show will get more people to sign up for netflix if they were fans of the original one? >> i think it will. it's really fun. it's great if you've seen the movie. if you haven't seen the movie

there's a lot of great stuff in there. as we were saying to sign on to see a bradley cooper, paul rudd show i think more people will come on to that. >> by contrast, amazon has been trying to get into this original game for a long time. they signed woody allen and then in this interview with npr this week woody says "i think they're going to be embarrassed, they're going to regret that they started with me." what does the studio chief say about that? >> it's funny. woody, he signed this deal in january and feels like ever since he signed it he's been trying to get out of it, almost every interview done this year he talked about how almost unhappy he is. i wonder if he's trying to get amazon to pull the trigger because he doesn't want to step back himself. amazon we're talk about amazon because of this. they're giving him a lot of leeway whenever he's ready to do the series, they'll let him do it. they're not putting any limits on it. >> i assumed he was playing woody allen, in a woody allen movie. >> one would think. we know nothing about what the

show issi ingoing to be. npr looking at six episodes, we have no idea, we have no idea about casting. it's a big question. >> amazon has a lot of attention for transparent. feels like they're trying to make progress with their originals with their latest round of pilots is much smaller in terms of the number of shows. what is their big picture there? >> next week they were going to roll out two pilots in the next process of them allowing viewers to vote on pilots and come back for a series. i think that they have so much almost every week we hear about a new series, new pilot they've inked or new casting and i wonder if this is a more regular pilot process as opposed to having the 13 shows at once that come out twice a year. we may just see more regular process for them. >> i think it's interesting, people say oh why are you discussing woody allen, these are the top two gainers of the s&p for the year, this is where growth is right now. that's why we're having the conversation. >> do you think amazon prime is a threat to netflix? >> they'd love to be considered

that way, when you look at the data being streamed, amazon is just a mere fraction of what netflix is doing, but they want to be in the game along with hulu. they see netflix as a big competition. >> jason, good to see you. thanks as always, jason lynch joining us today. up next you might be surprised by what's happening in wine country right now. we go live to sonoma county. plus we just talked about a tv summer camp, but is it also the next big thing in real life for entrepreneurs. kate rogers is live in boston. kate? ♪ to be a jukebox hero >> that's right but these aren't just any old entrepreneurs. eighth, ninth and tenth graders learning what it takes to launch a startup. all that and more coming up. you focus on making great burgers,

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♪ the answer is yes, it can. so, the question your customers are really asking is, can your business deliver? it's not just san francisco real estate that's booming. wib country is getting expensive. josh lipton is live in sonoma with a tough assignment. josh? >> well julia, in my next life i

think i'd really like to be a chief technology officer, that's my big takeaway from spending the morning at this estate and by the way this home is the most expensive home on the market in sonoma county right now. the property was owned by ed cozell, former chief technology at cisco, also on the board of yahoo! for many years. it's 20,000 square feet created in the style i'm told of an austrian country villa. the house rests on 600 acres, five bedrooms, 12 bathrooms, home theater, infinity pool, cozell is more than happy to sell it to you, julia, for just $32 million. while the price tag is at the high end there are more than a half a dozen homes on the market right now priced at $25 million or higher, as new tech money pours into wine country. >> because of the success of so many startup firms in san francisco and other businesses, there's a lot of money that is

being manufactured in the bay area, and a lot of it is going into real estate. >> reporter: now luxury listings here in wine country, so homes priced at $1 million or more are up 90% year over year according to sotheby's. guy, back to you. >> thanks, josh. certainly a beautiful backdrop. carl? >> speechless, thank you, josh. let's bring in simon hobbs who is here at post nine with wrap-up of europe's close and the week that just ended. >> convenient for the wine as well. hello, there we go, west european markets are higher for a fourth straight session as you can see as they wrap up the month of july. still at the height of earnings season within europe and you see the top gainers on the european market coming through as a result of that. airbus is a big gainer today, managing to beat expectations despite another charge on the transport plane, the a400 and

paribas the bank. chrysler raised their margin in this country to 7.7% as a result of less price cuts. if you looked through july as a whole, look to the month overall, it's interesting to see the way europe which is the white line outperformed the s&p 500, and of course the main reason for that is the greek -- this was the month in which we thought greece might exit the eurozone. you get a higher greek bounce there, that's why they overprrmd ov primed overall. he admitted he did tell the finance minister to start a parallel payment system because they needed some contingency. he said he never planned to leave the euro itself. that's gained a lot of controversy. the other more important point to note he appears to have faced down the left wing revolt within his own party and they'll have their big commune on what they do in the future in september, hopefully after he's actually or hopes the third bailout deal

with everybody else or the rest of the euro stone in general. the greek stock market opens on monday, something to look forward to, guys. >> have a great weekend, let the fireworks begin. thanks, simon. another good day for netflix, shares up 2%, one of the biggest gainers of the month, definitely the year up by 20%. we'll have a closer look at its strategy in a moment with the dow up about 12 points. ♪ why don't you turn me loose i asked my dentist

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good morning everyone. i'm sue we' rah. the wing fragment found on the island in the indian ocean is ready to be shipped to france where experts are hoping to learn whether it's from missing malaysian airlines flight 370. oceanographers believe that debris could have been carried thousands of miles across the sea by the counterclockwise movement in the indian ocean. rescue teams in nepal continue to look for the bodies of victims killed in landslides caused by heavy rains. at least 30 people have perished. several bridges were washed away and some roads were blocked, delaying the rescue attempts. the european union is opening an in-depth probe into weather fedex's proposed $5 billion takeover of the dutch company tnt is anti-competitive. fedex says it remains on track to complete the deal in the first half of 2016. and get this, after a colorado woman picked up her car from the repair department at a denver dealership, she was in for a big surprise.

she downloaded the video from her dash cam and found that an employee had driven her car more than 200 miles all around northern colorado. the sales manager says the employee has been fired. in the age of technology, be careful what you do and that's our cnbc news update this hour. let's get back to "squawk alley." . >> thanks sue, like "ferris buehler's day off" all over again. netflix's ceo saying "when you look at studios lix p s like pi combine great storytelling and great technological aspects that's where we want to be." as netflix launches "red hot american summer" and preps for follow-ups, can it become the new pixar of streaming? jason krakoran with d.c. adventures, co-founder of sling

media joins us now. parse this quote for me, jason. should we take it at face value, he just means streaming and original content or is there something deeper? pixar actually used technology to produce different kinds of content than we had seen before. you think reed hastings wants to do that, too? >> he may want to. and i don't know what their plans might be but certainly on the face of it it's a bit of a stretch to look at pixar and the platform, the true technology platform advantage they had, and equate it to what netflix is doing. certainly netflix is at an advantage right now and ahead of the pack in terms of streaming at scale, and that has certainly we've seen some other services suffer with their early attempts at scale but i don't think that's a long-term technological advantage, so i think that that element of his comment is a bit stretched and really we're focused on we're left with this

bit on content and as you mentioned, a lot new content coming out from netflix today and very soon. >> jason, you were founder of a company that some could say is a predecessor to the rise of all the streaming services, sling tv, it was all about time shifting and now you have almost the xhod advertisati xhod commo you think there's room for all the these direct-to-consumer over-the-top services to coexist? >> you're exactly right. sling box is about play shifting. it was really a moment in time technology. there are some elements of content that you cannot get still for these streaming services. as you mentioned there's been a lot of services that have come online with compelling offerings and you know, by and large they're generally similar

offerings and now starting to see amazon, netflix, et cetera, trying to differentiate themselves with original programming. it makes sense. it's the natural thing to do. it's what the broadcast networks did as well. i do think it's a challenge, though. i think they're on a bit of a content treadmill, so to speak. you've got to keep generating hits and the switching costs for a consumer is very, very low. in particular, you've got a single box, you can switch services just like you could switch the channel. there's no long-term contracts any of these guys are pursuing, and of course, with the availability of all the programming all at once, there's the opportunity for binge consumption and of course you can get a lot of the value a consumer can and then switch to a competing service. >> yes. >> i think it will be, the early stages are going to be around original programming that will be the differentiator, but i

think long-term these companies will need to look for other structural advantages and customer acquisition. >> jason you mentioned sports and we're coming off of their presentation at tca where they didn't seem to demonstrate huge interest in going after live sports rights. we always wonder at this table what would happen to the value of leagues, the value of sports teams if a google or a netflix or a yahoo! bid for a big game in a big way. do you think that's going to happen? >> well there's no doubt about that, that sports is kind of one of the most important pieces of content, so i think you'll get more and more competitors to this both with respect to kind of u.s. sports as well as international sports, the premier league. it's largely the purview of broadcast stations now and cable networks but there's no reason to think that that might happen as well. it doesn't seem like netflix has shown much of an interest in

sports nor the other major players like amazon. i do think that that might be a genre where there's a company that emerges that could take a bit of a lead. there's a few young emerging companies like fubo tv out of new york that are promising that. we'll certainly see. >> jason we heard last week bob ieger talk about down the road it's inevitable espn will go direct to consumer. espn which is the powerhouse in live sports is credited for being one of the most valuable pieces of the live tv bundle. do you think that this is going to push cord cutting? >> well certainly when i talk to friends and colleagues and just folks who have adopted the sling tv offering which is i guess you could say a skinny cable bundle coming or satellite, as it were, over ip, by far the biggest reason i have gotten from those

folks for adopting that service is to access espn and it often comes with cable cutting, so certainly, i think the opportunity, that sport is the last bastian. regional sports in particular, as those start to tease apart from the cable bundle, i think it's only going to accelerate the cord cutting. >> so jason, you were talking about figuring out what the differentiator is going to be after this original content. >> yes. >> isn't it data, you think about the information that amazon knows about, what we're purchasing physically and they have the ambition to know what we're purchasing digitally through streaming. what netflix knows about family structure and preferences by age, shouldn't they be able to produce better content because they know our preferences, what we watched last and what people like that watched next? >> i think there's no doubt. i think data is a massive advantage and you can, you certainly can put netflix and amazon as the folks that have

the most of that asset and expertise. but you know i also think there are other things. amazon's obviously got a massive group of users with their prime membership who value that prime membership eindependent of the video offering and that is a bit of a structural advantage in terms of attracting customers and keeping them and giving them time to develop this strategy. netflix really benefited from the fact that you had this existing service, of course the discs, right, their old model and when they first came out with the streaming product it was actually mediocre at best, but it didn't really matter. people stuck with it because they liked the existing service and it grew, right, and they matured and have become a great service. amazon will have that same flexibility and plenty of resources to continue to push down that direction. i'd also add that i think apple even though they're late for the party here, it's still quite early, and i think that most of what the discussion has been

about has been around content and differentiation of content, and as i mentioned before i think that's hard to sustain. i think gains in content area could be short lived, and one of the things that i really like about apple's chances is it's just their ability to take advantage of the device ecosystem. the consumer has a laptop, a phone, a watch perhaps, and changing the experience around television is yet to really be explored and i think they're in a great position to do that. >> all right, jason, thanks. we'll leave it there, jason krikorian from ecm ventures. >> thank you. up next, shared of linkedin continue to fall, now down about 9%. we'll talk to one top analyst downgrading his rating on linkedin today. but first, rick santelli, what are you watching today? >> one topic on this trading floor today, john, the employment cost index, and cnbc has covered it in an awesome way today. it's not normally a huge market

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on bonds, the markets, the fed, everything else, and our call of the day, one analyst seeing a 40% plus rally in gopro. is that too optimistic? we're going to debate it. over to julia boorstin. see you in about 15. >> thanks, scott. shared of linkedin falling more than 9% despite beating estimates by 25 cents a share. investors concerned about growth in linkedin's core business and evercorps is doingrading the stock to hold. ken senna, thank you for joining us. >> thank you. >> what is it that most concerns you, the slowing growth rate, the weak innocence display-ones? >> you can name those things and look at margins showing some compression, some flattening in the user growth on a sequential basis. when you take all of those things together and put it against the fact that linkedin is a growth stock it's difficult to justify the current valuation. >> there's a lot of talk on the call about the benefits linkedin will get from linda, how there's

potential to grow linda overseas. how bullish are you on the opportunity in linda? >> linda is an interesting business but it will probably take some time to build out and i think when you peel back the increased guidance result that was provided last night in terms of the contribution from linda, and some of the accounting changes that were made, we're really looking at a core business that is showing some deceleration into the back half with numbers coming down again similar to last quarter and looking at that combined with some of the compression we see around margins and flattening of the user growth leaves us to feel a little bit more bearish on shares. >> ken, put this in context up against facebook, which we saw earlier this week with some pretty strong user growth numbers overall, and definitely strong engagement numbers. does it even make sense to talk about other social so-called social companies in the same context as facebook or do we need to think differently about how their prospects look going forward and how they're going to

monetize longer term? >> i think for all of them relative to facebook you have to argue if you don't have facebook's scale you have to really justify the differentiation that you offer to your customers and linkedin does that on the talent solution side with hiring managers. there's still some question on the marketing side. clearly there's a b2b advertising opportunity but the same advertisers are getting more sophisticated leveraging data but facebook and reaching the same audience members at scale so if they're finding better substitutes in the marketplace, i think that is causing some of the pricing pressure we're seeing in linkedin's business. as linkedin makes that transition though to a more performance-based model, i think you could bring up twitter. twitter the cfo said it well if you're having a flattening of your users but still have expectations that are quite high around revenue you're left with two choices, you can either show your users more ads which certainly doesn't help your engagement or give your advertisers higher pricing which

we're not finding they want to accept. >> the parallels to twitter are interesting. i'm curious, ken, we sometimes talk about say mcdonald's as an example, beholden to certain macro trends like employment, you're not going to stop for breakfast unless you have a job. >> right. >> is linkedin similarly beholding to employment in this country and is that a good or bad place we're in? >> i don't know if they're quite there yet but i do think there's a question on just how big is their opportunity around their hiring solutions product and if you get, if we're at a point where you're seeing that start to saturate, at least among maybe some of the better customers, and then it really does increase your exposure to areas like linda, marketing solutions, other premium subscription products like sales navigator, and i do think that those are just going to take more time. >> ken thanks so much for joining us. >> yes, thank you. >> interesting stock to watch. linkedin shares down 9%. let's get to the cme group,

busy morning, get the santelli exchange. hey, rick. >> reporter: hi, carl. indeed it has been a busy morning. i can talk about oh so many things. university of michigan, you know, it was only a slight miss against mid month when you looked at the june final, it was a bigger miss. chicago we had al sand refrance it's interesting her perspective. it's talking to people that are in the numbers the respondents and the more i talked to her the more i came away with the feeling that the respondents were shaky on the strength of the report saying that, you know, they're just not confident that the new orders, which just jumped, is anything but temporary, but the most important issue of all, and i can't remember the last time the water cooler talk centered around eci employment cost index, it was a miss, and when you dug into it, it would have been a bigger miss if it wasn't for government workers of course having a better improvement on the wage side versus the private sector, but how do we string all

this together? first, let's let the market do it. if you look at a 24-hour chart of fives and tens, a couple of things should jump out at you. the fact is at 8:30 eastern they moved lower and by a substantial amount considering 162, 163 in fives down to around 1.56 and now at 1.55. they stopped and resting right there. same is true for tens, around 2.25, boom, they moved down to a quick 19 print and resting comfortable at the moment at 2.20. remember yesterday's settlement at fives, tens and thirties matches the weekly settlement, 2.26 in tens, so it jumps out. what does all this mean? put it in the context of the fed meeting. big news today is, is that september fed fund futures versus december, one has one meeting, the other has an extra meeting. september now is below 50%, but there's a high probability according to those signals that you're still going to get a

normalization of rates in 2015. here answer t here's the problem. how many times have we talked about market signals? this is not something we do because we like to hear ourselves talk. market signals can't be trusted. i want to know how fed fund futures can discern that when the committee behind closed doors hasn't discerned it. in the end, there's one thing that matters. if you don't like financial asset inflation, get off zero interest rate policy. if you want traditional inflation, you need growth. and guess what? after all these years after the crisis and all these policies, i will stick with what i think fed policy has done with regard to the economy. it's created a six-year flu year for a two year flu. back to you, julia. by the way, julia, you have done a great job this week. it has been a pleasure working with you. >> thanks so much, rick. been great to be here on set. coming up next, call it

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my name is jamir dixon and i'm a locafor pg&e.rk fieldman most people in the community recognize the blue trucks as pg&e. my truck is something new... it's an 811 truck. when you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you don't hit them when you're digging. 811 is a free service. i'm passionate about it because every time i go on the street i think about my own kids. they're the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then i'll drive it every day of the week. together, we're building a better california. breaking news on puerto rico. r.k. has more on that. >> good morning. the government bank of puerto rico one of the more troubled borrowers is expected to make a timely payment in time for the deadline from what i'm told by a source. $169 million, due on saturday. it will be posted i'm told and put in the proper accounts by monday, which is part of the

scheduled time frame. however, there is a more troubled borrower, the public finance corporation which is a subsidiary of that bank i just mentioned that is still not expected to pay, carl. so we very well may see a default situation, a nonpayment situation within the next couple of days. even know this government development bank news is a positive in a murky picture. >> kate, thank you for the update. we are awaiting comments from president obama. potentially involving the bank. and we'll bring you that when we come back.

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president obama making some comments after signing a short term extension to the highway bill. let's take a listen. >> we operate as if we're hand to mouth. three months at a time, which freezes a lot of construction. which makes people uncertain, which leads to businesses not being willing to hire because they don't have any long term certainty. it's a bad way for the u.s. government to do business. >> and finally with alumni like instagram's and buzzfeed, this

is the summer camp for the up and comings entrepreneurs. we have more from boston. kate? >> hi, jon. for most kids it's the dog days of summer, but some are spending the final weeks of vacation worker harder than ever. this is a two-week intensive program designed to help kids with big ideas take them to next level. they learn to network and pitch. they visited local vc, startups and paid a visit to google this year. one of the more recent ones is grant goodman. he came to them last summer at aged 14, launching masters software. now at 15 he's won not one, but two scholarships from apple to visit their developer's conference. he also has five apps available in the ios store. >> that's what really pulled me in, learning how to do business and how to pitch to angel investors and get money so i could further advance my own company that i had founded the

year previous. >> now, this summer the kids right here behind me, they just finished up pitching their ideas to a panel of judges at mass challenge which is a local accelerator program. to get feedback on the ideas they have been working on for several weeks now. it's really a sign of the teams when young kids tell you want they want to be the next mark zuckerberg and not the next lebron james. >> i'm still sure some kids still want to be lebron. thank you, kate rodgers. meantime, a new version of google glass is coming out this year. google will soon start handing out the new version for testing. the report says the new version is a lot like the old one, but it could ditch the frames in favor of a model that can slide over your existing glasses. this made some headlines yesterday afternoon. tony fidel, we continue to watch him, see what he has in mind. >> this is a version not for consumers, this is the one they're handing out the businesses. if you want to wait for the new sexier google glass, you've got

a longer wait on your hands. >> i will be curious to see if it's not glaringly obvious you're walking around with the thing. you don't see a lot. >> we'll see. stock has held on to the incredible gains at 661. julia, thanks very much for the few days. safe travels home. scott wapner, and "the half." welcome to "the halftime show." let's meet the starting lineup. john lavin that will and josh brown and steve wise and bonnie baja from double line capital. our game plan looks like this. oil spill after exxon and chevron host their worst profits of a decade and beyond. is it time to boot both from your portfolio for good? camera ready, gopro shares are flat, but they say they're picture perfect. now we debate