financials sounding out as one of the best performing sectors in a down market overall as treasury markets tick higher this past june, financials turned in their best month since november so check out those stocks, they will be a focus ahead of tomorrow's big jobs report that does it for this hour of "squawk on the street. let's send it to the nyse for the start of "squawk alley." back to you guys. >> thank you very much it's 5:00 p.m. in hamburg, germany, 11:00 a.m. on wall street and "squawk alley" is live ♪ it's been a long time since i rock and roll ♪ good thursday morning, welcome to "squawk alley," i'll

carl quintinilla with sara eisen, john fon fortt joins us crude inventories, let's send it back to jackie. >> carl, you can see prices are spiking on this report it definitely was bullish, what i have is a crude drawdown of 6.3 million barrels, a gasoline drawdown of 3.7 million. these are more in line with the seasonal trends, more in line with what we heard from the api last night that makes sense, you have demand coming from summer driving, fourth of july, holiday weekend as well. i dug into that report, production did go up that 100,000 barrels we lost last week, we gained it back this week. i'm not sure how people are going to interpret that. i'm assuming it's probably going to be a bearish sign mixed in here we were trading 4575 before the report came out, 4624 now. back over to you. >> all right, we're watching crude along with that, jackie, thank you very much. meanwhile, the president arriving in germany earlier this morning ahead of the bilateral

talks with chancellor angela merkel, china's xi jinping and russia's vladimir putin. we've been covering this all morning long >> reporter: the president is here in hamburg having landed after his trip to warsaw the president was met with cheering crowds and gave a rousing speech that touched on polish and american history, the defense of western civilization and he had the opportunity while in poland to really put the hard sell on the polish to buy american military hardware and also american energy resources the president sort of the salesman in chief while in poland here's how he put it earlier today. >> america will be a faithful and dependable partner in the export and sale of our high-quality and low-cost energy resources and technology we make the best technology and we make the best, best technology for fighter jets and ships and equipment, military

weapons. there's nobody even close. >> the president says there's nobody who even disputes that the americans make the best military technology on planet earth. so that was the sales pitch that you heard. also an opportunity to talk about lng, contracts being signed between polish and american companies the president was asked how long it would take to sign some new contracts while he was at a joint event alongside the president of poland, president du duda here's how that exchange went. >> we can enter a contract for lng within the next 15 minutes do you have anybody available to negotiate? [ laughter ] it will take about 15 minutes. you know, we're becoming a great exporter of energy very soon we'll be a very great exporter of energy and we've taken a lot of unnecessary regulations out of our process and we are doing things that we haven't been able to do for a long time. >> carl, the president there also joking the polish side were

very tough in negotiations, praising them for their negotiating ability, also saying he wants to get the price up for american natural gas here in -- there in poland. so an aggressive sales effort from the president there now he comes here to the g20 where he will probably not have as warm a reception meeting with angela merkel. he'll meet with chinese president xi jinping and also tomorrow vladimir putin of russia in what will be a highly anticipated meeting tomorrow here in germany, guys, back over to you. >> eamon, thank you very much for that setup joining us is former u.s. ambassador to iraq and turkey jim jeffrey, now a distinguished fellow at the washington institute and former deputy assistant secretary of state heather conley now with the center for strategic and international studies. good morning to both of you. ambassador jeffrey, on that point about the energy pitch, especially lng, he made it to 12 different central and eastern european countries, made it strongly as you heard in poland. is the motive here economic or

political? >> it's both first of all we are now in the business of selling lng, the u.s. government over the past year has given licenses to up to 150 billion cubic meters a year of exports and that's huge, although the amount so far have not been great but at the same time he and the leaders of all of the eastern european countries -- because he met with all of them in warsaw, not just polish prime minister duda, are very interested in becoming energy -- that means natural gas independent of russia and all of europe becoming energy independent of russia to avoid this destabilization that the president talked about this is a threat on the political as well as economic levels and thus he's killing two birds with one stone on this it was a wise move. >> >> heather, do you agree with that i would push it farther and ask how it shapes this highly anticipated meeting with vladimir putin tomorrow between

the president. he made those comments about the election interference. kind of criticized the u.s. intelligence community for getting it wrong before but saying he thought it was russia and also making these gas deals. how does it add up into this big meeting tomorrow >> the warsaw stop was the easy part of the president's trip he had the polish government, a very enthusiastic supporter of president trump. he finally did say the magic words, committed the united states to article five within the nato treaty, an attack against one is an attack against all and he admitted that russia is exhibiting destabilizing behavior so we've made progress on that front. energy is a tool of state craft for russia and so energy diversification and independence is important and the u.s. has an important part to play as well as poland's military modernization. they are spending 2% of gdp on defense spending which is a

target for nato. so that was the good part. now the tough part begins as he arrives in hamburg on trade. the european union with the japanese are going to unveil their brand new free trade agreement. angela merkel is going to push for open free trade and not for those protectionist stances so this is going to get hard. i tell you what, it's all prelude to this bilateral meeting between vladimir putin and president trump. we're going to look at body language, we're going to look if president trump is going to give mr. putin anything and it is very unclear if the russians will give us anything in return. we're all interested in what deal mr. trump is thinking about with vladimir putin. >> ambassador, that raises a good question. if you were going to rank headlines coming out of the summit, would it be north korea vis-a-vis xi would it be the putin bilateral? would it be the stance he's taking in advance of meeting merkel what are we going to be talking about on monday?

>> most importantly north korea because it is a very serious and it is a now crisis secondly his relationship with putin and how that plays out, especially in syria, but in several other accounts, too, including this whole destabilization thing and possibly ukraine thirdly, the overall relationship with chinese president xi again, that's wrapped so much around north korea and finally, relations with all of our allies in western europe. his first trip was not a big success. as heather said, he's taken the right step with the endorsement of nato's commitments to defend all, but he's going to run into head winds on the trade issue in particular with some of his western european allies. >> heather, the president did say he was considering some pretty severe things in response to the latest missile launch from north korea didn't really expand on that previously when the president

has talked about north korea he talks about getting china to cut off their economy and cut off trade. but even recently he admits that that strategy has failed so what are the alternatives here? >> this is the tragedy of where we are and the failure of strategic patience we have very few options it's interesting, the diplomats are talking about the military solutions but the military officers are quite quiet right now because the military options here are very, very few. i think president trump felt after the first meeting with president xi in mar-a-lago that he had an understanding, that he had secured chinese help in resolving the north korean issue and quite frankly not only disappointed, we've seen a pretty significant uptick in china's investment flows to north korea. this is not an easy challenge. he's meeting obviously with prime minister abe of japan, meeting with president moon again on the margins of the g20.

there are not great solutions here and this is, to ambassador jeffrey's point, this is existential, this is about a missile reaching the united states and i fear the president doesn't have good options and we don't have a strong united regional effort to combat pyongyang. >> we will see if anything comes out of the g20 meeting in the communique, in those meetings on the sideline, especially with president xi and we'll leave it there. thank you for joining us ambassador jim jeffrey and heather conley. >> thank you. two pieces of news on amazon today. amazon and dish reportedly in talks to create a new type of network for the internet of things according to the "journal," amazon's jeff bezos has been speaking about discussing ways to deliver internet connectivity to everything from bikes to drones separately, amazon's unveiling its own wine brand, a label called next which is produced by king vintners, a subsidiary of

oregon's king estate winery. let's bring the ceo of unicorn and creator of microsoft ventures, mike eisen is with the "new york times. guys, good to see both of you. still watching amazon relative to the month prior trying to struggle with the share prices fang has come in, mike but i wonder what you make of the conglomeration of headlines regarding amazon the last couple weeks. >> i think first we saw the whole food acquisition, now we're seeing this tieup with dish and wine partnerships coming in. i think it's pretty obvious that we're going to have wireless wines in the very near future and that's going to be something we all want. but honestly -- sorry, i'm just sort of messing around honestly amazon is trying to get a bunch of different partnerships going because they want to be the one stop shop for everything, whether it's getting your internetor buying sort of private label wines or shirts or diapers at one point like the idea is if you're a

prime customer you have access to any number of different things and you can get it in two days or less and they want to keep expanding that coterie of options for people whoactually come to amazon on a regular basis. >> rahul, whether it's wine or dish, the nike deal, whole foods, by the way, whole foods share back to the 42 offer level. prime day is coming up lots of crazy rumors about other things that people think they will one day buy what's important to keep in mind >> well, you know, i think first of all i don't know if you knew this but one of the biggest movers of wine in the world is costco and so for amazon to get into wine it's an interesting thing for them to do the fact they'll brand it with their own brand is interesting but the dish thing is what caught my attention. rather than dish going down the same path of trying to partner with a telecom to make their --

to deal with their dwindling cable business, going to amazon is the right thing to do i think there's just -- i think it puts -- it would put dish in a stratospheric level compared to directv and at&t. i think the level of innovation that amazon brings with drone delivery, internet of things, that sort of thing, would be great but i don't see a deal working out betweenthem unless it's an outright acquisition and amazon takes the lead. >> i'm still interested in the wine story to change it from dish, mike it starts at $20, which is kind of high, a red blend for $30 and another pinot noir for $40 this doesn't seem like amazon style of going mass market and undercutting people on prices, we read into every single amazon move to try to figure out how big the ambitions are and how many industries and different players should be scared by it how would you characterize this one? >> it's definitely not two buck chuck from trader joe's but i'm not exactly a wine guy so i

think it's mid-tear-ish. it's not the crazy $100 bottles. but i think starting at the premium-ish price for amazon or amazon prime customers and then seeing if they can go down lower and sort of, like, getting lower margins out of what people will actually buy for wine sounds sort of like them testing the waters and seeing if people will buy this stuff from amazon or if they're a little too picky to see it so i think it's a starting point and if they figure out okay this makes sense for our business and people want it, then they'll probably move down market. >> guys don't go anywhere, i want to toss to deirdre here so far we've seen 25 new billion-dollar startups on pace with last year but a far cry from the boom days of 15 when 89 tech unicorns passed the billion dollar mark. diedre is at with john fon fort. deirdre? >> these are the new ones, snap,

blue apron and others have graduated from this for the public markets there's 25 of them total they're valued at $37 billion collectively according to pitchbook. some of the american names include internet connected fitness bike start up peloton and clover and then some you may not have heard of called mobike there's also beijing news app, the biggest of the bunch it was valued at $12 billion and that was the third largest vc deal this year behind airbnb what's interesting is that virtually all of the companies on this list are based either in the u.s. or in china last year's list was far more diverse with startups headquarters in india, japan, israel and elsewhere in terms of the hottest verticals for unicorns, pitchbook found that i.t. and b

to c -- business to consumer -- have secured most of the capital. these are the new guys but plenty of aging and existing unicorns staying private for longer like airbnb and pinterest. drop box may be next and probably eyeing the performance of newly listed startups like blue apron and snap that haven't fared so well in public markets lately guys >> some really interesting numbers, deirdre is the sense that this is a healthy realignment at the unicorn end of the spectrum or this a slump >> i think that what you're seeing is bigger rounds but less rounds that's a term we've seen over the last few years what's interesting is according to data from pitchbook, this is shaping up to be the biggest year for unicorn ipo so you are seeing some exits, we, of course, are seeing the ipo market pick up but looking at the performance, it's interesting you still had five this years which is a good number you're seeing more go public and

what do we say now here? flat is the new up. >> china has been somewhat on a startup tear it seems like and when i look at the way they've managed to create this network across southeast asia and south area to benefit their interest i wonder is there somewhat of a reai linement of china becoming more of a startup power perhaps relative to other overseas markets? you mentioned the u.s. and china are the unicorn king this is year. >> it's incredible you had startups from all over but literally every name on the list, 25 except for one startup from london, they fear from the u.s. or china. but china has been a big player for years. didi chu sing is the largest unicorn there is behind uber you've got a bunch of others there's a huge amount of money there and you've got western investors investing in them,

too. >> eye-popping numbers, deirdre, thanks, carl, sara, back to you. >> john and deirdre, thank you for that i'll turn to mike and rahul on this one i don't know if it's the best time rahul to mention blue apron. $8.12, that would be a quick bear market. >> yeah, well, look, you know, just generally talking about unicorns, i think that just looking at the space, you talk about 25 unicorns versus three times more say a few years ago look, the big thing is that capital is being doubled down on the key deals, on -- they'll go in and double down on the deals they really care about and if they get one two that go public within a year, it's a big deal for them as far as china goes, when i was at microsoft ventures, our beijing accelerator was the biggest accelerator for growth and value. when i left microsoft ventures, i think within two years the portfolio was worth $4.5 billion

and that was mostly driven by deals out of china oz is i don't know, i look at some of these deals like snap and blue apron and whatever and i think it doesn't matter right now you look at the stock fluctuations, that sort of thing, i don't think they're focused on that. they're focused on user growth and creating a great experience for their customers. >> or just raising capital, right? i mean, for a long time the thesis was you can stay private for longer, those markets are treating you well. now you need to raise some money if you're having down rounds you need a wad of cash to fight the onslaught of amazon. is that right? >> yeah, it's funny. i remember it seems like forever ago and it was really just 2013/2014 something like that where cash was flowing easy and if you were a unicorn or some -- i think there's a weird new term called centaurs, which is almost a unicorn, you would come by cash super easy from investors

now i think there's like -- lycra huelike rahul was saying it's not easy to get multibillion dollar things wit just a year of growth so a lot of vcs are putting more wood behind fewer arrows and i think you're waiting for some of these big exits to make these funds successful or not. the one i'm really watching is uber and now after seeing travis kalanick resign and the board sort of demand high level executive appointments, including a cfo, now that's the ipo everyone is waiting for in the next year. and i think it's also this bellwether as to how everyone else is going to perform and if they can keep this keep this crazy valuation of nearly $70 billion when they ipo. >> well, we turn to you for all things uber, that's for sure your reporting has been stellar. last thing, new reports that facebook, twitter and snap are in talks to bid for online

rights for video highlights of next year's world cup. the companies have offered fox tens of millions of dollars for the rights, yet another bet on content by these major social media players. rahul, is world cup a different animal than selling a random nfl game to twitter or amazon? >> i think world cup is a different animal given that it has a global audience and it tends to be sort of very national there's a lot of pride associated with regions. it's a great way to get a global reach for them and also a great way to tie on new social features and increase engagement around the support itself. there is no better way to increase engagement on sport than to have a secondary screen viewing experience and so i think it's a brilliant strategy for one of the companies to land and it will be interesting to see how they implement.

>> mike, i'm wondering your take i can't help but notice social media has kind of pushed this move towards snackable content for major media players. at the same time, facebook twitter and others seem to be pushing in the other direction when it comes to their own investment they're going for deep content, longer form stuff. are they trying to cut out media companies? is this a big head fake? >> i think we need to start freaking out no, i'm kidding. you know, all these companies do want you to sit down and watch longer-form content on their network, whether it's facebook trying to build international audiences more with world cup games, twitter obviously their play is like, look, we are the place for live entertainment and you'll be tweeting alongside of it so it makes sense for that to live on our platform that kind of worked early on with the nfl because of how tight twitter's c.o.o. and the nfl were from existing

relationships but now these content companies are these enterprises that have vast wealths of content that people want to view, realize they can get better deals at facebook, they can get deals at amazon and maybe google and get money this stuff that typically has only been going through traditional broadcasters, so i think, you know, they're still playing around with it, they're still seeing the appetite for long form stuff but ideally that would be on the internet flat forms as well. >> as more of these live sporting events, rahul, move to streaming online services like youtube or facebook or snap or twitter, which ever, how does that change the tv ad model in the future sports was the holy grail, this is what you had to watch live on your program. >> well, it changes everything i don't know if you've ever watched an nfl game on twitter but it is awesome. i watch it, you can converse with people, i mean, you're chatting with people from around

the united states for nfl and it's so much fun to watch. it's way more fun than to just watch on regular tv. i think tv and traditional networks are kind of dead in the water if they don't figure out how to deal with this and i think watching nfl or watching a sport on social media is so much fun. i mind myself looking for channels online just to watch events, watch debates, watch political debates, watch any type of social event because you get to meet new people and comment and share in the joy of your team winning. so it is very cool i do think the biggest thing that the advertisers care about is engagement. we all know that when a game is on and the commercials are on you kind of walk away from the tv, go get a drink but if you're engaged and watching the thing the whole time, there's plenty of ways to increase advertising opportunities within the social media segment itself

to me it's brilliant. >> some of our viewers say they smooth out some of the streaming issues and the lag maybe it gets somewhere. we'll find out over time rahul, mike, good discussion, we covered a lot of ground. thanks, guys >> thank you, sir. >> thanks. when we come back, the vice president visiting florida's kennedy space center today, convening the first meeting of the national space council since '93. get details on that plus it's the fastest and most expensive production car on the market today. robert frank gets in the driver's seat later this hour for a test drive dow is down 92, "squawk alley" contuein menins aomt.

vice president pence visiting the kennedy space center as the trump administration makes its push into the space sector, morgan brennan is back at hq watching that morgan >> reporter: vice president pence will visit florida's kennedy space center this is his first trip as chairman of the newly revived national space council which hasn't met in 24 years its purpose, coordinate america's activities beyond earth. today we'll focus on ksc's work for government and commercial clients as a space port. it did just complete a successful spacex launch last night but also on nasa's $15 billion and counting investments to take humans to mars by 2030 that effort will rely on the development of the megapowerful space launch system rocket that's being built by boeing and the lockheed martin made orion crew capsule

president trump has expressed a desire to unite the country around a big space initiative. there's been talk of sending americans back to the moon but so far little has been done. now, the administration hasn't even named a new nasa administrator yet and for that reason today's events are being watched closely. overall the expectation, the commercial sector will become a bigger part of the plan to reassert america's dominance in space, that's a dominance that could include everything from human exploration of deep space to a new era of massive satellite constellations, even asteroid mining which some experts say is actually within a decade of becoming reality but we'll get more insight when vp pence touches down in florida at noon eastern. he's expected to speak to employees there around 12:50 guys >> we'll look for that, morgan brennan, thank you let's get to seema modi at post nine with the european close as the leaders gather in germany

today. >> a lot of things to digest, a combination of earnings, geo politics and central bank news sending european stocks to lows not seen in 11 weeks bonds also getting attention as investors selling european bonds after minute from the ecbs june meeting show, policymakers leading the door open to tapering the current qe program and they also believe deflation risks have largely vanished yields rising to 18 month highs but look at the story. in italy, the uk and france similar stories there. moving on to the big event, g20 summit in hamburg, germany, president trump is due to meet with the german chancellor, angela merkel, at the top of the hour bothleaders have been at odds on issues ranging from trade to climate change ahead of her meeting with president trump, merkel is seen here with australian prime minister turnbull, said there are various options for a solution on climate change at the g20 despite trump opposition to the paris accord. now looking at today's big

european movers, we have a lot of them, sodexho down sharply after the french catering services firm cut its sales growth target due to weaker-than-expected third quarter results. reckitt benckise, last month's global attack impacted them, and associated british foods rising on upbeat guidance thanks to strength at its primark clothing change and thompson reuters says deals involving uk companies have been announced since britain's election on june 8, that marks the lowest uk deals during a post-election month since the 1992 general election, perhaps a sign of how politics can have an impact on deal making. >> interesting stat. seema, thank you. now let's get over to hq and sue herrera with a news update hi, sue. >> hi, sara, thank you very much here's what's happening at this hour an evacuation order remains in

place for hundreds of homes near breckenridge, colorado, as firefighters battle a nearby blaze. officials say the peak two fire has already scorched 80 acres and expect flames to flair up again as today's temperatures rise an elderly woman still missing after flash floods hit a popular state park in tennessee. officials rescued 40 people from the site after water rose about three feet in just a matter of minutes. the search for the missing woman is expected to resume today. do you hate that big needle that comes with the flu s wits e researchers from georgia tech and emory university may have found a solution they have found a skin patch that uses micro needles to deliver the vaccine. and people packed the streets of pamplona to mark the beginning of that city's annual sanfer m ferman festival we'll keep you posted on those that's the news update, back to

"squawk alley," sara, back to you. >> as we head to break, we are watching shares of young china, take a look at the stock down 13%. the company reported second-quarter sales and earnings last night coming in below estimates citing weakness in the pizza hut brand shares are getting slammed the overall market down about 100 points "squawk alley" will be right back thanks for the ride around norfolk! and i just wanted to say, geico is proud to have served the military for over 75 years! roger that. captain's waiting to give you a tour of the wisconsin now. could've parked a little bit closer... it's gonna be dark by the time i get there. geico®. proudly serving the military for over 75 years. you're searching for something. like the perfect deal... ...on the perfect hotel.

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tech under pressure this morning with apple, microsoft, facebook and amazon jacking the nasdaq down about 1% earlier this morning, bouncing back slightly now we saw similar action monday when the nasdaq was the only major average to end the day lower. for more, we're joined by the chief equity strategist barry banister as well as wells fargo senior global equity strategist scott wren gentlemen, good morning to you. >> good morning. >> barry, i want to start with you. so how important is this wave of earnings reports, especially for tech based on some of the action we've seen thus far? >> well, the tech companies today, unlike maybe the late 1990s, are actually stronger and better the problem is macro central banks around the world are taking their foot off of interest rates it's affecting valuations.

>> scott, should we be concerned about macro? it seems like so few headlines tend to affect stocks at the micro level. is that going to shift at some point? >> well, you know, jon, i believe tech is very sensitive the to interest rate hikes and we'll see some more hikes here and that's going to be a head wind for the overall market but if you look at the tech sector as a whole, valuations there are not stretched, at least in our opinion but the market is going to pay attention to a few things in the second half one is the fed rate hike cycle these other central banks, we're not an armageddon environment anymore. these negative interest rates, believe me, the bundisbank has probably been behind the scenes working this hard. i think it makes sense they'll tighten up a bit but overall for

us modest growth, modest inflation, that's what we've been living with for seven years and i don't think it will change any time soon. >> barry, once we get into august as far as tech is concerned i feel like i start focusing on q 4. we're about to get amazon's prime day next week which some people start looking at as a precursor to the holiday season. apple will have an iphone announcement in september. is it time to start thinking about signals for q-4? >> we are more bullish on global gdp which is why you have to central banks backing off beyond the fact that they're just running out of assets to buy overseas so suffering the strains of devaluation. you know, when a country overseas devalues, it exports its deflation to the united states there's no wonder why u.s. inflation has been fairly low. but as we go forward, we think that what will happen is the overall market will have to adjust to more credit stress and to be a good equity analyst you're going to have to

understand what's going on in bonds. spreads to treasuries are about as low as they're going to go and yields are about as low as they're going be. >> now i'm asking specifically about the consumer and to what extent we should be watching events for signals on what q-4 spending the holiday season is going to be like is that something you're watching at all? >> yeah, exactly on the consumer, the savings rate is higher in the united states than it normally would be given the level of net worth what's really needed is higher wages. the fed wants the same thing as the administration, which is higher wages so they're keeping real rates below zero, at least through the middle of '18 in the hopes, i think, of inflating labor. if labor does well, sales at retail will do better and the economy will replete the inventories and you'll see a better economy. >> scott, any signals on the health of the consumer that you're looking at as we approach -- i guess we're pretty much in basically the second half at this point.

>> sure. for us labor markets going to continue to improve. i think there is going to be some concern, another head wind in the second half that late this year, 2018, higher wages are going to cut into margins but as far as the consumer goes -- and i can say this for business spending as well -- clearly they're optimistic since the election, clearly businesses are optimistic since the election but you need something concrete to happen in washington to help these things along so businesses and consumers to some extent are sitting on their hands so i think the overall ability to spend is there but it's -- when are they going to get off their hands and boost it up a little bit. i think it will take a while but consumers will spend money here. consumer discretionary, we like that, we've liked it for years, we think it will continue to do well. >> we'll see how the cash registers bring, barry bannister, scott wren, thanks.

>> thank you when we come back, more pain for tesla shareholders, now below $316 the company failing to achieve a top score in one of several tests conducted by iihs on the model s. this was a $386 stock less than two weeks ago. rick santelli, what are you watching >> you know, eight trading days ago we settled at 213 on the 26th of june we're trading 238. pretty big move, not unique to the u.s. sovereign market. we're going to talk about where the next stock will be and what the new range may be for ten year notes after the break

coming up today on half time, a man who moves markets, one of wall street's most closely followed traders, mark fisher, joins us live today. he's talking about where the market goes next and the possibility of picking an oil bottom and he is taking sides on the great debate over where to find value in energy stocks. plus we'll find out mark fisher's list of 40 essential stocks to own right now. that report noon eastern top of the hour carl, see you in a few. >> sounds good, scott. let's get to the cme group in the meantime and get to the the santelli exchange. hey, rick. >> hi, carl. listen, i hope many of you out there aren't getting harmed by higher rates because you see i'm happy and it's not that i'm happy rates are going up, i'm just happy because there's so much interesting technical

analysis that helps me try to understand why ten-year note rates move up and there's a bunch of old axioms from the trading days, the heyday of trading on trading floors we used to say if you want to win, study thin we've done this. we've done a santelli exchange that's the kind of market thin we're talking about. i can't stress enough that the move that we had from the fourth right before the election to the 14th right after the election, that move gives you so many clues. when markets move in big ways in a thin fashion, you don't see in quick lly lines there, it happened pretty quickly, it gives you clues. we've done this before, thirds bond markets like thirds, everything about thirds so we know the low was 178 we know the high on the 14th was 226. so we went through this, 48 basis points, divide it by three, 16 basis points becomes

something important. now, hold on the that thought and let's go through it. so you had 178, you add 16 basis points, 194, you add 16 basis points, 210. if i do recall the most recent low right here was 212, 212.5, pretty darn close. the next level up, of course, is 226. but now the next number is the one i want to pay close attention to 2.42%. that's your 16 basis points on top of your 226. now let's go to the boards significant levels for 2017 it's easy, 13th of march, the high yield close of the year, 236 when those things happen you want to be on guard forwhat happens next when you get extremes so the next extreme was 217 because that was the first significant low and it lasted a long time for 2017 what was the next high

this is where it gets fun. don't you love technical analysis this was was 2.415 notice any similarities here this is why i love technical analysis i've always said it's a lot of art, maybe more than since when i get things that line up in different ways, my thirds give me 242, the first significant top after bottoms gives me a very important level and when they match up, you put that in an asterisk, i'm not saying the market is going to stop there or be the high but it may be a high and that's the lesson of today's white board. sara, back to you. >> so we'll watch that 242 on the ten-year, rick thank you. straight ahead, it's the fastest and most-expensive production car on the market today. our robert frank gets in the driver's seat when "squawk alley" returns

welcome back to "squawk alley. we're getting details on that highly anticipated microsoft sales reorganization intended to spur growth in the cloud it is going to result in a

number of job cuts i'm hearing that it's around 3,000 at the high end. the majority of those, around three quarters, will be oversea we're talking fewer than a thousand cuts in the u.s this isn't a cost-saving measure, it's a restructuring of how microsoft does sales and the concept behind it is microsoft thinking they need a different approach to the customer when it comes to the cloud there are some industries that are highly regulated, others that are not, they are organizing sales teams that are more deeply knowledgeable about those vertical industries trying to sell more, a bigger package of cloud services into those industries so an interesting sign of the times on how more traditional tech companies that have stood the test of time are trying to reconfigure themselves in order to succeed in this era, guys. >> yeah, jon of course, been talked about for days, this reorganization and people have tried to frame it as an emphasis on cloud, overs have

tried to argue it's an illustration of the influence amazon has had with aws. >> yeah, i'm not sure it's so much the influence of amazon to put this into perspective the sales group at microsoft that's affected here is just under 50,000 people so a cut of around 3,000, less than 10% this is a microsoft that had a legacy business, highly profitable and is pivoting into software as a service, platform as a service and infrastructure. we're see if they're able to do it amazon is in the picture but i'm not sure they're the catalyst, guys. >> i was looking at the total employees. worldwide 121,000 employees for microsoft in the u.s. alone 71,000 so 3,000 always a big number but did you say it was bigger than expected >> i wouldn't say so there were lots of thousands numbers floating around. when you're saying "up to 3,000"

of a sales force that size, less than double digits not intended as a cost saving move, i think that reframes it a bit, sara. we want to talk cars now, the new bugatti sharon is the most expensive car on the planet robert frank joins us from the driver's seat. i know joe kernan mispronounced it, i'm sure i did, too. take it away. >> you did it perfectly, sara. it's the bugatti sharon, the most expensive car in the world at more than $3 million, that's the starting price, you add options it gets up to $3.5 million. the top speed of this car is a secret it's well over 260 miles an hour the engine behind me is a 16 sill car quad turbo. if you did this car flat out it would drain the gas tank in nine minutes. they'll only make 500 of these cars, they just started delivering them in march they don't have any in the u.s.

yet. this is one of the first, i'm the first to drive in the u.s. but they've already sold more than half of them. let me tell you about the average buyer of this car. a person with 42 cars, five homes, three jets, three helicopters and a yacht. we're going to do a test driver later but what's amazing is how smooth and easy this car is to driver it's a lot quieter than i thought. guys, get ready, i'm going to do a little push here all right. so that just shows you a little bit of what this car can do. i'm not going to tell you how fast i was going there, but well within the speed limit of 45 miles an hour. guys, back over to you. >> yeah, we saw you lose that

nbc van that was next to you be careful what's the price tag on it again? >> the starting price is $3 million but when you add options like putting your name on the seat -- >> all right, we lost him. $3 million got. >> it you know he's going fast when a television signal can't even keep up with him. call the cops. >> don't try that at home. >> dow has pared its lseoss, nasdaq almost a full reversal today. more "squawk alley" in a minute.

watching the markets, dow down 79 points, ge an early laggard as j.p. morgamaica pla. price down from 27 to 22 in a dour note in their words, "we don't see a quick or easy fix" for the incoming ceo. >> it's been a tough slog. financials have popped into positive territory helping the overall market and that's a yield story which has dominated the trading action higher yields in the u.s. in the form of freshries in germany and arnold the world has driven the euro back up to 114 against the dollar on the back of the higher treasury yields. there have been a lot of fakeouts when it comes to yields backing up or whether it continues to spook stocks with telecom and energy and health care and technology under heavy pressure. tesla is below $315. you pointed out a few moments ago during the break that its market cap has once again fallen

below that of general motoms. >> right it's well ahead of ford's and this is just a -- we'll see if it's a lasting move. almost in bear market. >> just about on the cusp there so tech continues to struggle. jon, i know you're watching twitter today. people have been asking why it's up 3%. any ideas? >> no i was just wondering that myself it's such a stark difference between the rest of the stocks that i follow most closely the next close zest in video which is up less than 1% twitter getting quite a bid today, not sure why, we'll watch the headlines and see if anything comes out. we haven't mentioned apple today, nikkei news agency had a story in which they say, jon, all new models for phones in the second half will come with organic light emitting diode displays, bendable sharper contrast

we'll get into that game pretty soon of what exactly the 8 is going to come with. >> very soon and the reports are all over the place from, you know, will they have fingerprint recognition through the screen or not we'll all have oled or just the top end. this is a highly anticipated phone. something tells me the stock will move quite a bit. >> i'm hoping for facial recognition instead of fingerprint recognition. >> let's get to wapner in the half guys, thanks, welcome to the half time report i'm scott wapner our top trade, one of wall street's most renowned traders seized the markets heading next and the best places to make money. with us for the hour today, joe, josh and pete najarian, also mark fisher, the founder and ceo of mbf clearing corps. stocks under pressure there, off the lows, though, rates are rising around the world including here in the u.s. even as adp