♪ good morning, welcome to "squawk alley" i'm jon fortt with michelle caruso-cabrera and wilbur frost at the new york stock exchange we got a lot to get to morning, but we'll start with markets the markets giving up most of their early session gains. the dow was up about 182 points, now just barely above the flat line and joining us for more is kenny from o'neal securities and our own bob pisani good morning to both of you guys what's going on here the semis were up pretty strong at first i don't know why the semis would be higher. >> it was a broad market rally. europe was up. there was talk about concessions

with trump created some excitement especially after what happened on tuesday the market was up and then hit it at the end of the day listen, it's a holiday, short week volumes are low. traders trading with trading market not a lot of institutional participation. in here it's just as back and forth trading. so there's no real rhyme or reason other than the always whether it's european tariffs or china tariffs it's going to be back and forth between the two headlines until really until next week with you have all the participants coming back >> the vix is right at the flat line >> what the market is reflecting is concerns that earnings will slow on global growth slow down. trade, tariff, whatever. just look at the trading pattern in the last couple of weeks. where is your market leadership? utilitys and telecom what matters financial and technology have been market

laggards down 2%, 3% in the last couple of weeks that's a clear sign. market isvery sensitive. look at the adp report below expectations did you see the ten year yield it went straight down. we should be getting a rally in banks now. instead we had a rally for three minutes at the open and sold banks right into it. many of the big regional banks are essentially flat this morning. they've been dramatically oversold in the last few weeks we should be getting some kind of a bounce at this point and we're not getting it >> something we do have is breaking data on crude >> reporter: you can see crude oil prices are sliding after this report. the doe saying we have to build 1.25 billion barrels of oil. you expect to see steeper moves either way as we were heading in to the fourth of july holiday. you actually expect to see those draws be steeper

10.9 billion barrels a day that's flat week on week we're trading at 73.22 remember the fourth of july is the peak of the driving season we started selling off in terms of pricing tuesday afternoon going into that holiday. a lot of traders told me we thought we saw peak pricing when we hit 75 and expect us to come off from those levels. back to you. thank you, jackie. the german automakers, they are all higher by 3%, 4% they are relieved about the possibility there might be some deal that would eliminate tariffs and therefore wouldn't face the issues that the president keeps threatening them with also we're getting word out of micron this issue that happened lay it on tuesday which many believe was a political move by china won't affect them that much that tells me trade is driving a lot of the major stock indices of the world >> the german automakers are saying we don't care that much about tariffs.

what we care about is our exports. they going along, at least these are the reports going along with the idea, german government you want to drop these tariffs, that's fine with us as long as we can keep exporting to the united states. that's a shift in their attitude the president deserves credit for moving the dial. >> to your point, yes, these trade talks are absolutely driving the conversation no reason they shown be. it's all part of the story i think a lot of it might end up being noise. if he concedes some on the europeans, is he extending an olive branch start conceding a little bit with china will it be what everyone thinks it will be >> what do you do? do you trade through it or hunker down? wait it out? what is the tactic or the strategy >> i think it depends on who you are. if you're long term asset manager type you would be more patient and i think you wait for

it to pull it will pull back a little bit that's when you will take advantage. >> what do you think about the levels we were below yesterday. >> so the levels are very important. specifically the 50 and the 100. we seem to be finding support at the 100 which is 2700 on the s&p. seems to find some support what's key is if we test it again and fail then i think the market is going to give it -- market will give it a run towards 200. >> you'll see volume very light for the next two weeks going into earnings. you're going to want to hear about the companies commenting on tariffs, and another word we don't bring up is the dollar strength you'll hear a lot of companies hide imperfections we're not sure about tariffs we're looking for the body language >> don't you wonder if they will start talking about the difficulty in hiring

the data that's coming out is so extraordinary. we'll watch for that in the beig ebook. >> absolutely. that's going to be part of the story. earnings is the history. forward guidance as it usually is especiallyaround the strength of the dollar and tariffs we continue to get more data around this inability to find qualified workers and what does it mean what does it mean to inflation and the fed and what does it mean to rates. >> what are the key words you would listen for wider range on guidance? concerns about international supply chain which china has been flashing a yellow light on? >> that's going to be whole a lot of investors are especially in sectors that are about to get slammed if the tariffs go through they will worry about that whole supply chain issue as you move forward. people are absolutely going to be paying attention to that and paying attention really to the tone of the guidance, the way the ceos and cfos talk about the

future and i think that's the tone that will give people really the edge. i think that's the writing between the lines. >> when we see europe up today, u.s. clearly up, but asia still down is that a sign of that kind of thought process that we've touched on often is that china has got more to lose from this trade war >> definitely. you can see, look china is 0% off its highs right now. that hasn't rallied. at least we're getting tiny rallies. even china overnight wasn't doing much of anything i think they have voted, global investors have already voted, china small caps lose out to u.s. small caps. and you would think, gee, there's a lot of companies in china that are small they are not exporting they are banking on things being slower in the chinese economy itself not just the export part of the whole thing there's separate issues around that, of course. people's bank of china has been

stimulating. >> the news overnight was relatively good in china and uk. banking news was better. but i agree, there's this concern about, you know, the global economy starting to slow a little bit or at least falter. >> you wonder if this solidifies the chinese government's determination to do that china 2025 thing if these exalternativexternal fence go that way. >> the ftse 250, we talk about how volumes were low they are lower in europe because of focus on world cup. >> they are watching tv. tech coming off its earlier highs. let's get to bertha coombs >> reporter: we're seeing broad gains across all sectors biotech after snapping a two quarter losing streak continuing

strong here in the second half large cap tech, though, really where the momentum is this morning and it's coming right now in terms of tech from the semiconductor sector that after chips broke a ten quarter win streak last quarter falling just over 1% in the second quarter this morning we're seeing cash continuing to flow back into the sector qualcomm are among the biggest winners. even micron is up despite a chinese court order temporarily halting its sales in china amid a patent dispute brought by its rivals in that country the mega caps are mixed. amazon still modestly negative key commerce, ecommerce giant said it will send out physical holiday toy catalogs, quite literally taking a page from traditional retailers which is good news for kids who want to give parents and santa a hint by leaving those catalogs open when they arrive.

tesla, down about 12% over the last three days. meeting its model 3 production, not great. they met that deadline there's some concerns, of course, about how they cut those assembly brake tests, but overall it's more about the sustainability about being able to produce model 3s at the rate they did chinese technology companies have been under pressure, while travel site ctrip is still positive weibo is down 16% coming in to the second half. the sector overall, the chinese tech sector is down 10% year-to-date we're seeing them being used as bob mentioned as a proxy for the trade war. sorry, i was rooting for colombia last week but now all england. >> i'm sorry you lost, but pleased that we won.

there we go. thank you very much for that when we return president trump's battle with harley-davidson as the war of words with iconic motorcycle manufacturer revs up. a harley executive joins us why he thinks the president is off base more "squawk alley" after this short break. 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.

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my familyoh!in there. how did you get in the building? jumped off a super crane. what? whoa! skyscraper. can't fix it with duct tape, then you ain't using enough duct tape. rated pg-13. welcome back to "squawk alley" investors look ahead to tariffs on chinese imports president trump taking issue with one u.s. manufacturer, harley-davidson. he tweeted earlier this week

quote now that harley-davidson is moving part of its operations out of the u.s. my administration is working with other motorcycle companies who want to move into the u.s. harley custom harley customers are not happy sales are down 7% in 2017. the u.s. is where the action is! let's discuss this further ken schmidt and from austin, texas, owner of custom cycles. good morning ken, i'll start with you harley-davidson is clearly a very strong u.s. brand is it important to buy harley-davidson whether in the u.s. or outside that it was also made in america, do you think? >> certainly important but way more important in the united states than it is outside the united states because americans tend to, obviously, be very pro

american in their buying choices and harley has been a premier american company, beloved for being american made here in america. overseas it doesn't have that quite strong cache >> alan, you're a smaller manufacturer than the likes of harley-davidson. you are therefore less affected by this trade dispute. what's your take on the predicament harley-davidson is in >> i think my opinions about it are, obviously, going to be affected more at the grassroots level. i think the harley-davidson riders i'm familiar with overseas, especially in europe, the heritage of the american line of harley won't be affected by this. obviously they are concerned more about the pricing of the model as it compares to other options available in europe. harley has had a pretty good time in europe as compared to the past and i think what they are buying is the heritage of american built, but it being made in america isn't that quite important. >> to that point i thought the spirit of will's question is american buyers of

harley-davidson implied in the president's tweet is that americans will be upset that they will choose to manufacture in europe. do you think that's true >> i don't think so because what harley is saying is that the bikes that are sold in the american market will still be made in america. >> ken, your take on what we have or haven't heard from harley-davidson executives, of course, you were one yourself in the past, the president has tweeted multiple times on this topic and fairly aggressively at times. should we be hearing the harley-davidson executives fight back more loudly >> well, the impossible part about all this is that harley is handcuffed you have to look at it very realistically. obviously they would like to swing back and let the whole world know where their collective heads are but the problem is it's imimportant to harley to do that without risking, upsetting members of the harley riding community, harley employees, harley dealers

who happen to be proud trump supporters at the thought of not alienating any of those harley has to be silent secondly harley realizes given sort of the current environment out there, that anything that they do say is most likely going to incite more tweets, more angst and more noise out in the marketplace. they are handcuffed. >> i guess they saw what happened to the nfl. alan, your business is a super premium motorcycle shot. you don't specialize in any one type of motorcycle when you're doing your custom san diego and things what do you think is the future of the motorcycle business and even manufacturing in the motorcycle door in the u.s is it something more along the lines of what you're doing versus the traditional manufacturing process that we see from harley? >> i actually think that things are going towards electric

i think the heritage sound and feel of a harley is important. obviously the average buyer for harley has been creeping up in age for quite some time now. i think their average is somewhere along the lines of 47 years old. as those older riders stop riding, i think the younger generation is looking for something more hi-tech and morven and electric bikes are the way to go. even harley recently acquired an electric bike company in california called alta they recognize things will shift in the motorcycle world and harley has to evolve and change with it. >> alan you only manufacture four bikes a year, yes, single digit. you repair an additional four bikes a year that's got to be a really high margin business. >> i would say on that end of it i have a company that actually done specialize in manufacturing, obviously, but we own accessories because -- even

harley they license out 5% of their revenue, licensing their brand. we own a retail store. we sell parts. we encourage the dyi culture it's important to us to keep the cost of raw materials low, as low as possible as we're manufacturing harley pieces. but you have to evolve with the business you can't just specialize in only building motorcycles. >> ken, to come back to the bigger picture on this given that harley-davidson has gone as far as they are moving production and the number of responses we've got from the president has this gone beyond the art of dale type negotiations and this is cementing things for the future. >> the tragedy in all of this is harley has been chastised for doing something any company in

its position would do. something that american businesses and global businesses do every day it's just working to protect the franchise, working to keep the flow of product moving into, in this case the european union, second largest market. and to sustain its business. any company would make those decisions. so to be singled out, hasn't done something wrong or done something that's anti-american especially from a company like harley-davidson that never does anything unamerican, it just smells bad and smells bad to other people >> they've been building motorcycles -- i'm sorry i didn't mean to interrupt >> the larger point being every business leader in america sees what's happening everyone is watching this thing. why would harley be singled out like this and gee, maybe we need to be very, very careful about doing anything that runs perhaps counter to, you know, what the united states president would prefer for us to be doing.

>> i was just saying that harley has been building motorcycles out of the u.s. for quite some time this isn't a new thing for them and shifting production to other areas to sell to the european market sounds like a smart business decision much more so than any political statement >> we'll leave it there. thank you very much. coming up, huawei fighting back why it's taking on the fcc a check on where we stand in the markets. dow jones industrials average up by 88 points we's been higher but also a lot lor. s&p and nasdaq higher as well. don't move, stay with us

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that the u.s. has offered a solution to the ongoing trade dispute. the u.s. ambassador to germany has said to have told ceos of vw will stop tariffs on cars imported from the eu if they stop tariffs german chancellor angela merkel said she's open to the lowering of eu tariffs on u.s. car imports but added the eu would have to lower tariffs on cars imported from other countries as well in order for the plan to conform to world trade organization rules. there you go the auto parts index up 3.5% steel companies rallying today eu countries have voted in favor of measures to curb steel imports in to the bloc, especially since the u.s. decided to slap tariffs on steel and aluminum take a look. german companies seeing gains today. speaking of germany factory orders rose in may

up 2.6%. more than doubling economists forecast and that news helping to lift the euro today almost to 117 against the u.s. dollar. we finish with a big laggard on the tse. british foods down sharply, it's prime mark fashion chain was off in a slump by its sugar business jon fortt, back to you now against the backdrop of tariffs set to go into effect in only a few hours the world's third largest cell phone maker huawei is challenging the fcc over proposed rule that some worry could impact its business in the u.s >> reporter: huawei responding to that proposed fcc rule which could spell bad news for it and other chinese tech companies here's how this new rule would work the fcc runs what's called the universal service fund $9 billion pool of money some of which is to provide subsidys to

help companies that provide broadband in rural areas if this proposal goes through these companies could use those suncy dies to buy equipment from those firms deemed national security threat. huawei is never specifically mentioned by the fcc but worth remembering, the chairman in a letter to u.s. lawmakers said he shared their concerns about security threat that you had way and other chinese tech companies pose to u.s. communications networks huawei tells cnbc any claim it poses a security risk is ridiculous, but it's clearly worried about this proposal and the u.s. last year its sales were reportedly around $300 million. today huawei saying in a filing with the fcc the reality is huawei is an independent privately own business that is no more subject to the control of the chinese government than american companies are controlled by the u.s. government still this proposed rule comes as huawei finds itself in the hot seat along with other

chinese companies as trade tensions continue to heat up between washington and beijing u.s. is set to impose tariffs on $34 billion worth of goods from china tomorrow fcc says the comment period for this rule is over. no hard date when a formal and final vote will take place guys, back to you. coming up former u.s. trade representative and lead negotiator of nafta, ambassador carla hills is with us as u.s. tariffs on china are hours away of going into effect her take and more "squawk alley" right after this break duncan just protected his family

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hello, much, i'm sue herrera. here's your cnbc news update nbc news reporting that the three leading contenders on president trump's list for the supreme court are brett have --u kavanaugh, amy coney barrett and kethledge. a few isis militants attacked a town that left four gunmen dead. they drove them from a small farming equipment where they planned to launch an attack on a town about a quarter mile away >> a fourth of july protester who held police at bay for hours after she climbed the base of the statue of liberty will face

a judge in new york today. patricia okoumou told police she was protesting the separation of immigrant children from their parents. a flash flood warning is in effect in pittsburgh after a slow moving storm dropped torrential rain overnight. more than two inches of rain fell in some areas some 10,000 properties remain without power. you're up to date. back downtown to "squawk alley". michele, back to you tough fourth of july for those folks. >> absolutely. >> thanks, sue we'll keep our attention on u.s.-china trade tension as we're 12 hours away from the first wave of new u.s. tariffs on chinese imports to discuss trade tensions we're joined by carla hills and advisory partner walter isaacson good to have you here. >> pleasure to join you. >> ambassador, let me start with you i don't know if you've seen these reports out of germany where the u.s. said to germany,

hey, get rid of your the rivers, we'll get rid of ours and it's under consideration. angela merkel says if we do that it has to be the reduction for every single country in the world. if that were to come true you would actually have lower tariffs not higher do you see any good news in that, maybe some willingness to give the president some credit for the method >> it hasn't happened yet. but merkel is right. we have a rule of nondiscrimination in the world trade organization and if we had a trade agreement with europe i think it would be very positive for the united states. >> i guess i'm trying to get at, when you see this possibility, does it suggest to you that perhaps the methodology might just work? >> ithink that in trade negotiations it's a good idea to have an overall strategy and sit

down with your trading partners and find a win-win situation that's where we made the greatest forward movement. i think threats and pounding the table are not a good idea. but let's see what happens you can't just have a one off where you reduce the tariffs that you don't for all unless you go into a free trade agreement like we've done like with mexico and canada >> i hear you say that threats and pounding the table doesn't work but a lot of folks might be listening in a saying well we tried the other way for 30 years. you were involved in that process and people are dissatisfied with the results at this point that there's still 10% tariffs on cars going into the european union and that china has actually increased the role of the state into trade rather than reducing it as was expected when they joined the wto. >> i couldn't -- i disagree with how you frame the issue. let me just say that i agree

that we have problems with china. they have not followed the nondiscrimination and national treatment with respect to a number of issues, including intellectual property and having percentage limitations on investments and i can go on and on but the best way to get those removed is to use the trade rules, that has kept us in fair stability for 70 years and it's added more than $2 trillion to our gdp. so let's not tear it up, let's build on it and there's no question that the last 25 years that there have been enormous changes in our economy in terms of automation. we're doing a lot more with fewer workers and we need to focus on those issues. >> walter, what's your take on the tactics, how likely we are to end in a positive way and if we did get a deal, albeit just on autos with the eu how big of a win would that be for the

president in the short term? >> i do think that you have asked the right question there is with donald trump a lot of bluster, a lot of pounding the table and perhaps that can move the needle and suddenly we have a break through it hasn't worked in some cases he did it say on mexico we'll build a wall, mexico will pay the wall, a lot of pounding the table and that didn't work on the other hand, if we end up with lower tariffs on cars, european union worldwide, or bringing back to ronald reagan who did a lot of strong talk about nuclear weapons but then also said he would be willing to go to a world of zero nuclear weapons. the question is, is that really going to happen? and i guess one data point i would have is that deep in donald trump's, you know, history he's always been against sort of the free trade he's always been a little bit more in favor of protectionism

and tariffs. this is what he believes to answer your question directly if i had to guess we're less likely to get to a world of zero tariffs with a lot of this bluster but if it happens more credit to him. >> walter, i wonder your take on perhaps the unintended kwns, unintended for some of a weakened wto out of all of this. we don't know how this is going to end up but there are certain conditions that have been set or maybe precedent set at least in tone in global trade by all of this what do you think change is going forward based on what we've seen already >> i think that's a great gentlemen, jon because i heard jay lapeer who was on in the last hour just saying the uncertainty about the world trade rules in the future has caused companies to pause in new investment you know, he runs a company that

makes conveyor belts and equipment and food moving equipment and he has to figure out what aluminum can i get, what steel can i get, can i export to china. my conveyor belt so the wto gave a foundation where a business person trying to figure out how will i invest in the next five years say okay i know the rules of the road if you throw all that out you're getting some uncertainty you've seen aluminum exports right behind me in the port of new orleans go down by half in the past year. dropped 50%. soybeans down 20%. so those type of things aren't good when you say hey we may throw out all the rules of the road >> of course, you know, mr. lapeer, fellow louisianan. you're sitting in front of tulane >> we started in high school together i think he's one of the great

business leaders of this country, and he's a major exporter and importer and, of course i'm sitting here at the mississippi river. >> terrific. thank you ambassador hills and walter isaacson. great to have you on much appreciated when we come back 11,500 feet up and amazon's last mile how jeff bezos is getting packages delivered to the hyma l -- himalayas. rick santelli what your watching >> stocks. good economic numbers. i'm looking at the long end not selling off pushing rates up what's going on. we'll talk about the yield curve ind why the long end is dog its fair share to flatten that all after the break. hymns h.i.m. >> himalayas himalay

i'm scott walk are here's what's coming up at the "halftime report". summer rally july is typically a good month for stocks but what about tariffs and this trade tiff. we'll tell you what can bust stocks out of their current range. plus the big call on facebook from one influential analyst you won believe where he says the stock can go pete has found some unusual activity again we'll reveal which stock he thinks is prime for a big move it's all at noon right here at the new york stock exchange. great stuff.

meantime let's get over to the cme in chicago rick santelli is there >> reporter: good morning. the yield curve has been center stage and daktebate around every watercooler. and with good cause. there is very little doubt that nothing makes investors more nervous than when short rates start to rise and outrun long rates, especially in the everything right now financing world. just remember what triggers every major crisis the fact that big institutions, financial institutions that may have much wealth but not enough liquid wealth for the here and now. it's a precursor to a change in the business cycle i see today 254 two year up two basis points.

ten year drifting, down a basis points which means we've seen three basis points much flattening we all know pretty much everybody pegs the flattening pro active force with what the fed is doing and they are right. but boy it takes two to flatten. the long end is not only part of it, it is doing maybe more heavy-lifting than many would have thought especially 30 year bonds when you look at the spread differential. but notes over bonds that's around 12, 13 basis points now which is really narrow what's going on? what we know there's been a hiccup in global activity around eurozone, china to some competent and a lot of the tariff issues, almost accentuate that and the leadership issues, angela merkeler and all the coalitions what's going on in italy, politics affects that as well lack of reform, not being on the

same page as brussels. monetary policy. long end of the market, monetary policy is the thumb on the scale. the big story lately is pension fund demand. with all the compression when rates were lower they had to be aggressive not like they stopped buying in the past but they are ramping it up tax reform, difference between 35% and 21% is a tax break on the purchases for many of the pensions long term liabilities so when we're talking about a flat yield curve, yes, jay figures in prominencely. don't under estimate the buying power on the long end to do its fair share >> thank you very much coming up a very cool story. a look at amazon's last mile initiative ithn e himalayas. that's some stuff deliveries more after this. "squawk alley" ive pillows...

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my familyoh!in there. how did you get in the building? jumped off a super crane.

what? whoa! skyscraper. can't fix it with duct tape, then you ain't using enough duct tape. rated pg-13. so whether it is next day, same day, two hour, amazon seems to deliver pretty much anything to the majority of its established markets around the world with the click of a mouse or tap of a phone. what about places a lot more cutoff from the rest of the world. joining us now is our business reporter who is usually based in mumbai his story this week, delivering amazon packages to the top of the world. great to have you here this can't possibly be cost effective for amazon are they doing this more to show

india how committed they are to the market, or do they really have a timeline when this is going financially pay off for them >> it will probably never be cost effective to put packages on a plane and ship them up to the himalayas. but they want to be every where. that's part of their mission in life it's a marketing thing eventually they may add other services and make money like on video. >> so that's your take on the market in india right now. we know that walmart has taken this majority position in flip card there's protest in small business saying hey walmart will corn terrify market. but we got amazon. we got reliance industry saying they will ramp up omni channel to compete is this a good thing for indian small business and consumers >> you know, it's a mixed bag for small businesses amazon is a platform to sell a lot like e-bay in the united

states amazon doesn't sell as much stuff directly because of indian law. a lot of small businesses are getting access to new customers in other parts of the country. but they also have competition from amazon selling all these essentials just like in the otht like the united states >> i'm a neophyte, i'm the less technology savvy person here if i live in the himalayas, can i be a prime member? and will i get two-day delivery? how did is it work how long does it take? >> you have to be a prime member to get five-day delivery if you're not a prime member, it's more like ten days. >> and it's the same fee >> it's really cheap, about $15 a year >> okay. and how does that equate to the gdp per capita is that the equivalent of us paying the 80 or 90 bucks here >> it's more expensive than that >> in terms of dollar volume, it's still lower how many members of prime are

there in the himalayas >> i wouldn't know for sure but i'd guess probably not more than a couple hundred you probably have, 400, 500 customers total in this little town they do serve some other towns so i don't have a good number. >> so, why do they make the effort >> it's worth it to control your own business end to end, just like they do in the united states they want to control the delivery of the whole -- for the whole process from when you order to when it leaves the warehouse to when it gets to you. in india, it's more important than even here because there's a lot of people that want to pay cash and they allow you to pay cash on delivery when you get the items. the post office in india doesn't want to deal with cash deliveries if you're going to do cash, you got to control your own network. >> when it comes to e-commerce in india, what share does amazon have >> flip card is probably about

35%. amazon probably has around 30% i've seen different numbers but that's probably the closest. >> and in terms of the sort of long-term hope for retail in india, we talk about how internet is pretty much purely over smartphones as opposed to traditional cable, could redial in some of these remote areas skip the industry andist be e-commerce, given the logistical issues >> there are a lot of e-commerce only companies in india. in things like furniture delivery which you think would be hard to do. there's a couple of companies that specialize in that and do really do much in terms of physical stores. >> so, we're talking about technology, local and consumption. we awe india not wanting apple importing used iphones into thing market they wanted apple to start producing them

is there a big movement afoot to produce in india for india >> the government has made a big make it india push to try to get these products, especially electronics made in india. really with big success, chinese makers are there they assemble their phones from chinese parts in india made in india, and escape the tariffs, something that's apple's not able to do on any kind of a large-scale. it's a tough relationship. you guys have been talking about trade all morning. india has struck trade deals with china, to lower tariffs from china to import more from china response to the trade tensions from indian >> a story we'll continue to follow i know you based on india in mumbai, our colleague to markets as we go to break, we had a decent last half

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that's right for you. welcome back let's get to kate rogers who has

taken a behind-the-scenes look at social media stars what you call the influencers operate their online business like a business >> that's right. it was at $1.2 million that is expected to double these influencers are cashing in on their own authenticity turning into a business. >> reporter: from facebook, instagram, influencing is a big business obviously works with 150 brands connecting to more than 450,000 influencers in its network >> companies care about influencer marketing because it's really the evolution of celebrity markets. forcing their budgets triple to quadruple to 10k to this year from last year >> reporter: she says it's possible to make a full-time job

with dedication and unique aesthetics >> for a number of influencers they're able to do that. they're able to parlay planned partnerships into paid promotions when they get larger and actually get on talent managers and agents. >> reporter: social media giants like youtube are also using millions of creators to monetize on the web they offer an academy for influencers and allow those with 10,000 subscribers or more to use youtube spaces >> the beautiful thing about youtube, it costs nothing. you can find that audience and something that works >> and for those youtube creators who don't have 10,000 sk subscribers is, youtube does have that for you. the netflix series "house of

cards" returned yesterday for its final season let's take a look. >> happy independence day to me. ♪ >> not so unsubtle there to the fire of kevin spacey the interesting thing that we've got there is that president underwood now, madam president underwood will look to direct to the camera and be the narrator role that kevin spacey had before which was the unique aspect and his double role >> you wonder how they're going to recover from the loss of a main star in dramatic fashion. you have to see the season if she can carry it off, i bet she can. >> she's always princess buttercup to me. speaking of delivery to the

himalayas, here on the floor with wilfred frost >> i'll be on "closing bell" later today. major indices, the dow up 140 points the s&p up 0.5%. that will do it for "squawk alley" over to scott wapner with "half." welcome to "the halftime report." i'm scott wapner here post nine at the new york stock exchange the top trade this morning, the summer rally setup the fears overblown and what jim kram esckramer says could take stocks higher. let's begin with the markets stocks are higher, off their best levels. tariffs with china set to go into effect tomorrow pete, we've been range-bound it's all about trade have the