good morning it is 10:00 a.m. at dell headquarters in round rock, texas. 11:00 a.m. here on wall street squawk "squawk alley" is live ♪ good monday morning. welcome to "squawk alley" plenty to talk about this morning we begin with the corporate story of the morning, dell announcing a buyout of the shares that track the performance of its cloud intere enterprise data center vmware.

dell founder and ceo michael dell joining "squawk on the street" earlier today. david, what were some of the bigger takeaways for you foreign policy foreign policy conversation >> the company it in-s to say to simplify the capital structure. conversation >> the company it in-s to say to simplify the capital structure this track stock as you know has been trading at a significant discount to the overall value that it is supposedly tracking it wasn't necessarily thought to have been an effective vehicle take it in, but how could you do that any number of ways including you could have done a reverse merger with the m-ware, done another step to take this out. they chose to go $109 a share you will get cash and dell shares you can see it trading to a discounts to that $109 it will track eventually tack on $38 billion in debt, at least they see having next year,

they need to pay that down, it is a sizable, sizable company. and we did ask mr. dell as well sort of what about vmware, is that a company that they own open 81% of but that eventually they will try to buy the remainder of or whether it remain a public entity here's what he said. >> we wanted to remain an independent public company vmware is doing great. pat and the team have done a fabulous job in moving the business for this multicloud era and along with the kind of turbo boost from dell technologies with 40,000 sales technologies, vmware is extremely well positioned >> key here of course vmware paying $11 billion to its holder, $9 billion of that going to dell, which is using that to buy out the dvmt holders that is the cash portion

and by the way the dividends is contingent on this being approved by shareholders, which is likely to happen of course. another roeason you might want t go public is because silver lake has been your big partner, then own roughly 17% or so of the combined entity once it does come public. do they want to sell i asked mr. dell >> they are very committed to the investment i've asked them several times, hey, you want to sell? >> they have been in a long time >> and they continue to be -- >> and it is a great investment gain for them as well. >> hey, everything is working out pretty well. so we have a fantastic business here it is doing extraordinarily well >> you would buy out silver lake if they wanted to sell >> that is not the transaction that we're here to talk about. >> but he did say that before.

>> yeah, nice job getting back to that. >> but jon, you've followed this company and mr. dell used the opportunity to talk about all the different changes that have taken place at dell over these last few years do you buy it? it is certainly a different company than it was when it went private in part because of the huge emc/vmware deal, but the growth rates he is talking about are also quite significant >> it is a far different company. and one of the biggest differences, in order to have the kind of scale that dell decided that he wanted to have in this company, you can't be a company that is subject to the whims of public investors. so he figured out a way to have it both ways in effect he has more control now than he did when dell was public before, so he can have a bit of that longer term view he is in that spiegel, zuckerberg, class as well as larry page we talked before about a few

interesting things, too. he said dell financial services grew 52% in the last period. faster than dell itself overall. and i was asking him about a dell world a couple years ago, he rolled out this new way of customers to buy where they could in effect have dell servers and data center equipment on their premise, but only pay for what they use so kind like having your cake and eating it too in the cloud sense. have the cloud, but on premise he said this is driving their business also 85% of dell technologies engineers are now software engineers, that is when you count pivotal and vmware, that is different for sure. all right. and joining us now from san francisco to talk more about this and other things, cakara swisher and also roger mcnamee good morning to you both >> good morning. >> hi.

>> when the history is written of this entire kind of scale enterprise era and what the meaning of this move that michael dell has made really was, what do you think it will say? >> i don't know if someone will write a history of this, it is not very interesting >> but as far as the whole cloud enterprise thing, sure it is >> it's all your, jon. an open field for you. i think it is just this guy wants to have a public company and have control of it and he didn't before and it was as you said subject to the whims and this is one of the financials machinations to do so. silver lake certainly wants to take it public so they have an exit plan there. so it gives him the best of both worlds and they can being a agrees sich in taggressive in t and make it simpler. it seems like there a lot of debt and this sort of does give them the best of both worlds.

>> it was supposed to be between hp and ibm to hoounlg becobecom giant that would stand the test of time. but now dell emerging from being private perhaps looking like the best example of what the others were trying to be. what do you make of that >> i think the real wrong in the long run is how attractive is the market itself. obviously public cloud alter in a tiare competing as well. and so i think it has turned out to be a lot of the business has turned out to be a commodity.i vmware i think is the most attractive piece and i suspect with rates rising, the debt load, the fact that

they are effectively leasing a lot of the debt creates vulnerability. and i suspect with the positive momentum in the business, they want to use this sunshine if you will to get the business lined up, get it probably deleveraged a little bit and try to find some way to protect themselves if rates are going to go up a lot more >> and he also talked about this idea, his exact phrase was an investment boom and the kind of environment that he is seeing. i'm wondering if you agree >> well, that is what you would say, right everybody is doing more investments thousand but as roger said, there is a lot of competition in this area and it is not as clean as one would make it. i mean to have one dominant player in this area. there is a lot of players in this space i think microsoft of all of them obviously amazon and google, but they are competing on a larger scale. and like a lot of other industries, everybody has to get bulked up in some fashion.

so the vmware part is their differentiating element. but i don't think that you can underscore he has to clean it up, make it into a company that is not quite did as disorganized i have they have to get in a position where they can be aggressive >> yeah, tough to figure out still three publ figures public. and tesla reaching hit production goal. elon musk writing that i think we just became a real car company, that in a congratulatory memo to employees. roger, the need to sustain this 5,000 sccar a week pace of cour to beas profitable as he wants to be, how significant is it that he has hit this mark at this point

>> well, i think all of these metrics really matter that we've talked about this before, the success of tesla has been in building this magnificent brand. and they have really not demonstrated until very recently even a commitment to becoming a professional manufacturing firm. and manufacturing is really hard it requires a different set of disciplines than the ones that made tesla successful to this point. to me 5,000 is an amazing number for them coming from where they have come from what makes me nervous is i think i read this morning that they eliminated 300 spot welds. so i'm really hope natural they didn't cut corners, that in fact the 300 spot wemds reflelds re r overengineering in the past. >> there are plenty of short sellers who have gotten crushed waiting for some sort of

catalyst but is it possible that actually becoming a real car company could be the worst thing that happens to this company, to t s tesla? because if you start getting valued for ford and gm, i don't know what that means for the stock price. >> well, i look at tesla and go he has created an army of true believers. and i think as long as he's got that, tell havehe will have a pm price. this brand is not like any car company i've seen. and if he can combine real manufacturing with that brand, i belt he can sustain the value for at least a while again, it is a market. and right now people really love what is going on and i think if you give him an excuse to believe even more, they will >> ford trading at seven times next year's earning. >> and bmw coming on out with

vehicles set to be competitive to tesla >> yeah, i think that is the issue. once it gets -- i don't know what real car company means. it seems like a real car to me but one thing that is interesting, what happens as you move along with these customers, with servicing, with making sure your current customers are happy and maintaining the idea that these are reliable vehicles. and i think hitting this number does that. the idea that i ordered a car, i'm going to get a car but there is an entire life to this that i think is more difficult which is if you have a problem with a car, that you feel like this is your car company that does serve your needs. and as you said, other companies are catching up. and i think that is the danger here it is a big accomplishment to do this this is not creating a photo app that takes pretty cats this is really difficult and roger knows about manufacturing for sure but i think the sures will come later when they have servicing, that the customers are happy, they want to buy another car

and then they deliver the cars they promise so it is enormously complicated to do what he is doing it is interesting he's been in touch with a lot of reporters, including myself, about what he has been doing and i think it is keeind of amazing what is going on so it is a fantastic story >> like the classic movie hero who is running while things are blowing up and the ground is crumbling beneath his feet >> why ni don't know about blowg up >> it seems like over and over again before the whole thing implodes, he makes the target, he delivers the car. people go wow and the price goes up and this is real stuff, not just things that you are pushing around on a screen finally to facebook. more fallout for the social network after the close disclosed to congress in a 747 page document that it gave several firms including amazon,

apple and ali baba special access to user data that stretched beyond the period that it had initially talked about. roger, this struck me as perhaps not enormously new news. six months on or so longer than facebook had previously indicated certain companies had access to more data than some people are comfortable with now. does this really matter incrementally? it seems like we've lost track of the initial issue which is companies using data in ways that had not been agreed to with facebook in the first place. now we're just concerned about data in general. >> i think there are a couple issues that are embedded in this sto story. the first is that facebook indicated that all of the news was out in its testimony to congress and demonstrably this is incremental to that. so i think this was in response to followup yeses.

but clearly not part of the initial testimony. and the second aspect which i think is really troubling is we haven't gotten to what were people doing with this data. what is clear is that facebook has been very casual with respect to private data of its users. and that it has done things that certainly violated the spirit of the federal trade commission consent decree >> very casual do you think that is fair? >> no, i think that it was a conscious strategy to share data to ghoert timeet more time on se i think we're way past the point of -- this was a conscious strategy and they traded data for better deals with partner companies. and it worked. this has helped the valuation

enormously over the years. as a user, the kormly indication is we don't really know whether there has been harm or not other than relative to things like presidential elections, relative to made inlags manipulation of many people's ideas. those are real you issues. >> and the stock price still holding up are these data issues really going to catch facebook at this point or as far as i know investors are concerned, is all the news effectively out and is the question are they going to manage to be cleaner from here on out >> well, it is never over with data and facebook, is it this is the stwraenls is the st. and some of the deals -- they don't own the phone or the devices, so they had to make facebook work better on these platforms. and data sharing is part of that and it helped their business

enormously i never know with facebook what is going to come out as roger said, they have been really loose with data they see it as theirs. i don't know how else to think about it, they see your data as their data so the question is will they change and if they do change, which is essentially at the core of their business, is there business the same business. and that is the same problem it is like separating bone from muscle it is just the same thing. and so it is hard to imagine a facebook that doesn't use data and the question is are they going to continue to abuse data. >> jon on, one point we should really pay attention to, we are trusting facebook, youtube and twitter with our midterm elections. you know, we haven't really put any pressure on them and so if something goes wrong with the midterms, this whole story will take on a different complexion >> that part comes out also to people going out and voting and getting educated

thank you both joining us. when we return, netflix up more than 100% since the start of the year. a look at what to expect from the company in the second half of the trading year. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95.

fidelity. open an account today. you'll only pay $4.95. let someone else do the heavy lifting. tripadvisor compares prices from over 200 booking sites to find the right hotel for you at the lowest price. so you barely have to lift a finger. or a wing. tripadvisor.

well, it's a whole day's worth of love songs. 300 minutes of baby videos. or, it's a million chat messages. a gig goes a long way. that's why xfinity mobile lets you pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay less for data. it's a new kind of network designed to save you money. click, call or visit a store today. it is the first trading day in the second half of the year and with high flying tech stocks

in focus, josh lipton joining us from san francisco with the second half outlook for tech >> july is when we start thinking what is next for the iphone which we expect tim cook to introduce in september. rbc is looking for three new models an update to the 10, a larger 6.5 oled device and budget friendly phone apple needs them to sell well in mainland china but some might worry that apple could not get caught in the crossfire as the trade battle sheets up between apple and china -- u.s. and china. there is in express denprecedene a few years back, apple thought that there was retaliation from the obama administration but others counter that beijing

would nt would only on be hurting themselves other tech trends to watch, the tech ipo pipeline which should stay strong. venture investors also say software firms look like good potential candidates and amazon is expected to make its decision on its second corporate reheadquarters indianapolis is a serious contender, a state with a strong university system including of course jon fortt he's 's alma mater and an economy that is stable and business friendly >> okay. thank you, josh. one tech stock that has certainly led the market higher is netflix it is up more than 100% since the start of the year. down a little bit. it actually can go down. what does the second half hold joining us know is brian white you liked it rightly so. and continue to i would assume

for the second half. with this kind of a move though in the stock price, is most of the juice sort of out of it for the rest of the year >> it's been a rocket and i think this can continue. so stock up 100% year to date. it is actually the second best performer in our group, so not number one but i think the market is starting to look at netflix through a different lens and they are really seeing a couple things. number one, the globalization in addition difference is really starting to payoff a couple years ago they made this push and you are starting to see it in the numbers with 70% international growth last quarter. and they can push through price hikes. you've had a couple great subscriber numbers after price hikes late last year >> when i think about the future for the company, disney if they succeed in getting fox or even if not, comcast, any number of other large entertainment companies are so focused on netflix, so focused on coming up with their own direct to consume their will wobd and keep content

from their platform, is that a threat >> ultimate alwa >> you also always have competition. i just feel like netflix has this brand and people want to work with it that is all they do. so they can focus on it. they are spending up to $8 billion on content this year and what i've noticed is taking local content developed overseas and bringing it back to the u.s. with either voiceovers or subtitles and doing the opposite from the u.s. overseas >> brian, you mentioned that investors are looking at this stock from a globalization i'm not saying that netflix is really the cross heirs of the trade are war, but we did see some bad days related to trade where netflix did get picked so how exposed is it if other countries want to retaliation?

>> i think that the biggest issue with potentially china where netflix isn't really there. they are not officially in china. i would say a lot of these techs just hit black ice is what you've seen. and so we've seen this in 2016, we saw it in 2014, stocks sell off because of the rotation. nothing more than that >> and so what is netflix's kryptonite this seems like one of the belief stocks kind of like anything connected to elon musk, is there is a certain combination of events or sentiments that tends to take down a stock like netflix that investors should watch out for >> i think anytime -- i mean it has really been strong so even as our group has gotten hit on this black ice the last three weeks, netflix three weeks ago, was up 9% on a leak where there was actually a lot of bad news net neutrality, there was a big media merger the following week it went up

5% so i think as long as they continue to put up good subscriber numbers, that is the key to this story. i don't think the tough trade talk will have an impact on netflix fundamentally. >> also last week of the quarter. so some rebalancing. >> exactly >> all right thanks >> and when we return, the eu warns retaliatory action against the tariffs is coming. eligible for medicare?

that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any of these types of plans, they pick up some of what medicare doesn't pay. and could really save you in out-of-pocket medical costs. call unitedhealthcare insurance company today to request a free [decision guide] to help you better understand what medicare is all about. and which aarp medicare supplement plan works best for you. with these types of plans... you'll be able to visit any doctor or hospital that accepts medicare patients... plus, there are no networks and no referrals needed. there's a range of plans to choose from, too. and your coverage goes with you when you travel,

anywhere in the country. join the millions who have already enrolled in the only medicare supplement insurance plans... endorsed by aarp, an organization serving the needs of people 50 and over... and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. apply for a medicare supplement insurance plan any time you want. call unitedhealthcare today. remember medicare supplement insurance helps... pay some of what medicare doesn't these kinds of plans could save you in out-of-pocket medical costs. you'll be able to choose any doctor who accepts medicare patients. and there are no referrals needed. so don't wait. call unitedhealthcare now to request your free [decision guide.] this easy-to-understand guide will answer some of your questions.... and help you find the aarp medicare supplement plan that's right for you.

i'm sue herera here is your cnbc news update. there have are behave beeaeeen e accounts of killing and rape in bangladesh of refugees

>> listening to the terrible stories of massive violence, of killings, of rape, it is probably one of the most tragic stories in relation to the violation -- systemic violation of human rights. a spacex capsule carry, an artificial robot arriving at the international space station. it will assist can see inside experiments. also on board are genetically identical brown mice for a study gut bacteria the heat wave continues as some states are under alerts and advisories temperatures spiking into the triple digits for tens of millions it is hazy, hot and humid. that looks like a good idea though that is the news update this hour jon, back to you now to dominic chu with the

european close >> european stocks beginning the second half in the red as you can see he here behind me. as trade extensions really heat up between the u.s. and other major economies around the world. miners are helping to drag down the ftse 100 in the uk on trade war fears and weaker than expected chinese pmi data. you can see the pressure here. we also have hur row zone factory growth closing down to levels not seen over the course of the past 18 months.euro is also moving lower against the dollar and not just because of the trade issues we spoke about, also angela merkel trying to resolve some coalition partner disputes over immigration policy germany's interior minister believes csu has threatened to resign from both posts saying migration deal merkel struck last year with the european union is in essence ineffective.

we finish with nestle defending its growth strategy saying it is on track to meet its goals operating profits and structural cost saving. this is amid fresh from today. loeb who wants to split itself into three divisions >> thank you we'll stay with europe fears of a trade war are certainly growing. president trump calling the eu, quote, as bad as china reiterating threats to hit car imports on tariffs eu threatening almost $300 billion worth of tariffs against the united states. or at least damage if u.s. goes through with those auto tariffs. joining us now is pure ambassad europea union ambassador to the united states from brussels welcome. first if could i get you to respond to the comments of donald trump over the weekend.

the eu is possibly as bad as china. just smaller on on trade it is terrible what they do to us >> well, actually, the eu economy is slightly larger than the chinese economy, but more importantly, i obviously don't agree with the president that the eu is bad for the united states on trade. our trading relations are very fair and equally based and american companies make a lot of money out of trade and investment trans-atlanticly including the massive investment that comes into the u.s. and so i don't think that those are fair comments. >> when the president says things like it is tough to cell american products in europe including cars, including a gri agriculture, is europe willing to sit down and negotiate with this president >> well, i think both economies, the u.s. and the eu economy, are

very open. we have some barriers on our side, but frankly forever barrier in europe, i can find an equivalent one in the united states we haven't been able to export many of our agriculture products to the u.s so i don't think this is an unlevel playing field. but of course we were engaged in the trade deal with the previous administration we're always willing to sit down and negotiate and discuss how we can improve trade relations. but frankly not under the threat of un lat ralg teilateral tarif imposed. >> let's talk about the eu's statement in response to the commerce department over the threats of auto imports. you say this could put $300 billion worth of u.s. products at risk. you how did you get to a number like that? >> well, we believe that these proposed measures lack legitimacy because we don't believe that there is any basis for saying that car imports or

parts pose a threat to national security there is no factual basis economically and this is contrary to international rules and would expose the united states to potentially around $300 billion worth of retaliation because that would be the value of the imports affected by these measures if ever they were implemented. so that is where the number comes from >> mr. ambassador, president trump has floated the idea of lowering tariff barriers all together, which strikes me as potentially extreme move that might have some unintended repercussions. what do you believe is the proper role of these tariff barriers going forward do you support the idea even potential idea of getting rid of them all together? >> the european union is one of the most open economies in the world and we have concluded very ambitious trade deals recently

with canada, with japan, with mexico we're negotiating with the countries of southeast asia. so we do believe in continuing to reduce tariffs and nontariff barriers across the globe. but of course these have been painfully negotiated in international fora the u.s. also has subsidiesing a g agriculture and also tariffs on light trucks so i think any discussion has to take into account the political realities of all the trading partners as to just how close we can go in growing trade and reducing barriers. but that is something to which the european union is committed and is implementing on a daily basis. >> and i'm wondering how vulnerable europe is right now economically we've seen a hit for european stocks recently, worse than u.s. stocks on all of the trade concerns we just mentioned immigration negotiations that have been going on we did see the last minute deal. but it looks like the germans and some of the parties are up why set about that

if we do see president trump follow with taxing cars, what does that do to the german economy? >> if you look at the submissions from the department of commerce, these measures would be hugely damaging to the u.s. economy, costing hundreds of thousands of jobs, increasing prices to consumers. and reducing the growth of gdp so of course it would be not good news for europe if we get into an escalation of a trade war. but frankly, i think these kind of measures would also be extremely damaging to the american economy >> it is a very big warning put out by the eu. and we thank you for joining us to put commentary around it. european ambassador to the united states in brussels right now. and coming up you, the ceo of international logistics

company flexport is with us. duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually,duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote.

in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates. duncans wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford. i we worked with pg&eof to save energy because wenie. wanted to help the school.

they would put these signs on the door to let the teacher know you didn't cut off the light. the teachers, they would call us the energy patrol. so they would be like, here they come, turn off your lights! those three young ladies were teaching the whole school about energy efficiency. we actually saved $50,000. and that's just one school, two semesters, three girls. together, we're building a better california. relatively straightforward path and sort of a one step simplification instead of a two step simplification. you know, the option to go public was very much there

but then you would then later probably convert the tracking stock into the public common and so you create a little more complexity and so if you can do it in one step, that is certainly easier bottom line, goal ba going o the public markets that was michael dell explaining their rationale for that deal after a bruising fight to take dell computer private five years ago. both tracking stock and vmware up this hour much more on that ahead. but first rick santelli, what are you watching this morning? i'm watching the markets and every investor trying to handicap exactly what is at the bottom of why stocks are moving. or i should say not moving maybe it is the president's new policies we'll talk about that. alerts -- wouldn't you like one from the market when it might be time to buy or sell?

with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

i'm michelle caruso-cabrera. coming up on the halftime report at noon, are investors in a trade trap held hostage by trade disputes how you did you protect yourself and your portfolio plus a big cut for a big name retailer and trard traders will weigh inh their strategy for the second half of the year halftime report starts at noon back to you.

>> thank you, michelle trade fears continue to rattle investors. more and more companies speaking out. the chamber of commerce which is the big business lobby group saying this morning that tariffs will hurt american companies and consumers wallets. to griff us ive us a look at hoe will be impacted, we're joined by ryan peterson with a global freight company ever offering real time tracking of shipments. thanks for coming on so are you seeing any impact so is far from the tariffs that have been announced from the united states and other countries? >> so they haven't gone into effect yet, but companies are starting to plan for it and think about how do we run a supply chain in a world with so much uncertainty >> so give us a behind the scenes look for those of us that aren't as familiar with what do you in terms of managing supply chains by air or ship. how does it work and what exactly will be risked

>> flexport manages the international low goods ticks for about 3,000 american companies and 10,000 appliers.to about 3,000 american companies and 10,000 appliers. and many are in china. trump tariffs should go into effect on friday with $34 billion worth of goods affected. and that is a 25% duty on those goods. so if you are in that group, if your products were caught up in the tariff codes to 25% hit on your costs of purchasing all your goods huge disruption and it is not like you can move your factory overnight. >> so does that mean that you are seeing some companies trying to rush finished goods into the u.s. before the deadline some does it work that way and others perhaps cans lynn goceling good don't make sense now to plan to send over here >> that is what you are seeing and you see it with companies by air freight that might have gone

by ocean just to get it in before the duty hits >> which state is going to get hit the hardest? >> well, california is the biggest state in the united states of imports. so you should expect -- of course this is where even the stuff going inland comes through the ports here in california so i would expect the biggest impact in california texas is you're largeour larges state. the agricultural products caught up in china's retaliation are produced through the maeheartla in the midwest and south >> so what do you expect will people be diverting shipme shipments, just higher costs >> i think there are a few you none of which are really attractive first is to move your production it another country would he ha we've seen a little bit of that for example with harley-davidson moving to europe in response to the retaliation on motorcycle imports. i would sgeblgexpect to see a le bit of that over the long term

if these things stick. a lot of companies will probably think about vietnam, bangladesh, which have already been very at track sif given t attractive given inflation in china. i would expect companies to look at how they can reengineering their products to fall outside of the tariff codes. and a lot of companies will have to grin and bear it and hope the 25% isn't between a profitable business and a money losing one. >> do you have any basis for comparison or is this new territory? >> i think it is new territory for high career, but if you go back in time, of course there are many examples. most obvious would be the smoot tariff which contributed in a large part to the great depression i don't want to go there, but trade war is bad for everybody they engage in trade because it is mutually beneficial

so it is really impacting american companies as well as chinese trading partners >> and we've heard a lot of companies last square mention rising freight costs as a headwind inflation especially when it comes to trucking. is that going to continue? >> yes, i think that the trucking imbalance, there is just not enough drivers coming on the average age is something like 63 and getting older every year so we're not -- we just don't have enough suppliers of truck drivers. air freight markets are extremely tight. e-commerce takes up so much more space in an airplane on the ocean freight, i think there is plenty of capacity. so each of these freight markets is a little different, but i do think that you will see tight trucking and air fright markets for the foreseeable future >> got it, ryan peterson, thank you. dow s&p and nasdaq all off about a third to a half percent. we'll have more "squawk alley" right after this

rick santelli has the santelli exchange. rick >> thanks my theme today is just trying to get a handle on what's moving the market why is it stuck. is this good or bad and how did we get here? easy questions rs right? i think it's more simple than we think. sometimes, you have to take a step dakback in the back back in the '80s, noitsed something. it seemed like there was a

mutually exclusive arrange m between main street and wall street when thought oh my god we're in a recession, matter of fact, a lot of time, wall street starts to talk recession when they feel pressure not necessarily highly correlated with the feelings of main street. how did we get here? maybe it will make us understand better how we're supposed to behave think about it this way. prices and policies. those that ben bernanke brought forth that probably weren't designed to be copied by everyone else in the world if everybody tries them maybe not so much, but prices policy favored large institutions pure and simple. a form of trickle down by the banks where they thought the toe keepers with regard to the transmission of large banks would help the economy and

considering the credit crunch, that seems the way to go wasn't real popular. a lot of things happened one of the things that supposedly made this type of policy a hero was the big bounce of march 2009. where stocks really went down in the doubt of 6,600 and it rocketed but here's the problem any new market people out there understand when an exogenous shock hits a market pricing, it comes back fo matter what anybody does. it comes back. to think about that versus other better bounces that we've had, forward to 2015 or 2016 or 2017. question mark in 2018. where you're forging movements into new areas is completely different. considering this president is doing basically the opposite of many policy decisions of the

last president, it's impossible to say this was just the wave and he's riding the wave out one step farther this president really thinks he's putting policy focus to favoring american workers. will he be right or wrong? it's hard to say one thing is happening for sure. we can't dismiss by shake iing it up, you're shan up one of the bedrock parts of the m is mlobbying this p president is really changing lobbying and think that right now, there's one person that seems to be lobbying public and that's the president can grand scale of the individual versus global israis the clekive. back to you. >> okay. not sure i get that lobbying part, but we'll take i >> rick santelli, thank you. >> look at the some of the small business groups that are trying to lobby in the tariffs. >> all right >> yes chamber of commerce weighing in today. let's get a checken check on the

markets. the second half of the year kicks off here d dow's down 113 s&p down about a third of a percent, but it is broad-based all groups are red back in a moment whoooo.

when it comes to travel, i sweat the details. late checkout... ...down-alternative pillows... ...and of course, price. tripadvisor helps you book a... ...hotel without breaking a sweat. because we now instantly... ...search over 200 booking sites ...to find you the lowest price... ...on the hotel you want. don't sweat your booking. tripadvisor. the latest reviews. the lowest prices. with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually,duncan got his $500,000 for under $28 a month. less than a dollar a day.

his secret? selectquote. in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies, and give you a choice of your five best rates. duncans wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford.

lebron james is now l.a. bron james he's joining the lakers and agreed to a $54 million deal he'll be departing after leading thome a ship in 2016 guys, just getting real time data in from fanatics. and they say after theiersies went live last night around 8:45 p.m. eastern it became a top ten nba day all time for them in term of sales in just three hours. of course the big market is l.a. as number one market big change already 600% spike in sales compare wd the announcement to join the cavs in 2014. >> this is huge the question is are people going to remember him as a laker people don't remember michaelwis

>> meanwhile, vmware, the dell story, up almost 10% >> have been flying right on that big story >> with that, over to michelle caruso-cabrera with the half >> and welcome to the halftime report i'm michelle caruso-cabrera. stocks down today across the board as investors ask themselves are we in a trade trap with us today, joe terranova, jim, josh and steve weiss guys, thoughts on the first trading day of the second half of the year what do you think about second half >> not going so well so far. i don't know >> going to get better, worse? >> there's a few days left in the second half, so we can only hope >> it's gotten better over the first day. >> not so bad this