report" with tyler mathisen and sue herera. >> not yet. the euro finance ministers call it quits without reaching a debt deal with greece. wi the june 30th deadline approachin wal street is getting jittery. >> netflix is the latest to join the stock split club. does the maneuver really matter for investors? >> and best in show? we'll tell you which state claims this year's title for best in business. all that and more tonight on "nightly b" for this wednesday, june the 24th. good evening, everybody. tyler mathisen is on assignment tonight. >> good to have you here. i'm sue herera. no deal.

that i the word. the euro's finance ministers broke up without an agreement over what to do about the greek crisis. the talks could continue later this eve and the euro group will reconvene tomorrow. the deadline approaching to get a deal done time is of the he is enls. julia was >> reporter: the sun may be setting here in brussels but the talks have only just begun. they were very reluctant to speak on the way into this meeting. a palpable concern, it seems, over what progress is made in the last few hours when the greek prime minisr was locked in talks with the international creditors. the greek prime minister seemed to target the inf suggesting the demands were just too stringent. but it was very clear looking at the proposals earlier this week that things like pension reform was missing. sms that they are really pushing for here.

also a huge focus on tax rises. what we've learn in the past in this country, the taxes and less catch comes in. what this deal will hinge on is whether or the greek prime mini believes he can compromi and still sell the deal back home amidst rising concerns in the last 24 hours about the content of this deal. the talks will continue. one saying he doesn't like talking about the deadlines as far as these things are concerned. i think the problem is that we need a proposal on the table before we can take a stand and i think what we're trying to work on is the same framework that we had on the 20th of february. and we'll get a proposal. >> we have to wait and see. "nightly b in brussels. >> and that disappointment th lack of a greek deal did help to contribute to a down day for stocks but there were other catalysts as well. wall street shrugged off a revision which showed the

economy slowed less than previously thoug in the first quarter. transp stocks which are closely looked at by market watchers they were pulled into correcti territory by a sell-off in rail stocks. and billionaire investor carl icon sounded the alarm bells as well. i'm very concerned about the market. and i think the market is overheated specially hi yield market. and it is sort of a sad commentary. i think the public is walking into a traffic jam as they can in 2007. what i've said is as i get older, i think it is almost the duty of well respected investors like myself i hope to warn people tell people that you're really making errors. >> well when all was said and opportun the major averages finished low. the dow lost 178 points closed below 18,000. the nasdaq was down by 37. the s&p down by 15.

and speaking of carl icahn, the activist investor announced that sold his stake in netflix calling it overheated. after saying last night that it would split its shares 7-1, netflix sold off slightly today. so do stock splits really matter for investors in here the takeaway. >> stock splits don't happen all that often. there have only been seven among the s&p stocks this year and 11 last year. so what exactly is a stock split and why do investors care? simply put, a company takes each share of its stock and divides it into smaller pieces. for example, let's say you own 100 shares of stock, each worth $700 a share. meaning your holding is worth $70,000.w the stock splits 7 for 1. you would end up owning 700 shares but each is now worth only $100 per share.

either way, your holdings are still worth the same $70,000. >> stock splits affect the company not one bit. as far as the fundamentals of the company, they remain exactly the same. whether or you want to invest in the company shouldn't change based on the number of shares that they just took from $1 million to $7 million, on a 1 for 7 split. shouldn't change your investment pieces one bit. >> a big reason why company split their stock is to decrease the price of each individual share. investor are given more shares to compensate. some argue that it helps performae but the evidence is mixed. >> apple is a greaexample. th did a stock split and the stock perform quite well after that. that isn't a guarantee and believe it or not, netflix is a great example. last time they split it didn't work south so well for the stock and the preceding six to 12 months. >> that's why many profes say a stock split should not be the sole reason to invest.

>> i don't think traders should flock to a stock or investors just because of a stock split. empirical evidence shows they tend to drift higher there is no guarantee. all you're doing is trading the same stock in greater volume than you did before. >> the important takeaway when it comes to stock splits is that it has no effect on the fundamental business of a company engages in. it is just a math mat cal maneuver to reduce the price of a stock without reducing the tol market value of the entire company. for "nightly busine" >> and on this down day in the markets, we have a look at one sector that does continue to outperform would b the banks. bob shines a light on the bank stocks and tells us whether or the rally has more room to run. >> banks have been the standout performers for second quarter. the large cap banks are up over 10%, well outperforming the s&p 500. over 2%. and investors have noticed as these stocks started breaking

out a month ago volume like the basket of bank stocks saw a surge in volume. wh is moving these banks? improved econo data has been a big help so they ca hope loan growth would improve. th hasn't happened. low. the most important factor has been the belief that short term interest rates would eventually be moving up and the yield curve would steepen. the bank loans are tied to the short term rates. investors are tryin to figure out if they should change this rally. deutsch bank made a bold call by downgradin for exactly this reason. they acknowledged it has improved. but it means there's much less upside in their opinion. not everyone agrees with that. others have told me the fed funds rate boosts gradually up into next year. that a significant

lift to the bottom line of many banks and in that case they could move higher. for "nightly busine" a vote in washington tonight on president obama' trade push. the senate okayed fast track author granting the white hous the power to speed trade deals through congress. now that bill moves to the president's desk to be signed into law. a major policy from the white hou as we reported last night. president a unvei new rules that would allow families to offer private ransom payments for relatives held hostage overseas. now more on these new ranlts and rules. >> that's right. an executive order from the t of the united states a significant shift here on hostage policy. what the president is saying is that the united states is no longer going to threaten members of the families of those people who have been taken hostage with prosecution under anti-terrorism finance laws if they negotiate with or ultimately end up paying

ransom to get their loved ones back to the united states. the president saying in his speech today at the white house, the united states is going to set up what he is calling a fusion center. th will bring together assets from the fbi, the department of justice and others and they'll spend full time focusing on this hostage issue. and we got one fascinating numb out of the white house. that is 30. that's the number of americans that are currently being held overseas ao lis monaco. a big number and bigger than a lot of people might have expected. >> d the white house or the u.s. policy perhaps better said change at all in terms of negotiating with people who are being held hostage? with the terrorists that have them? yeah that's a good question. the answer is no. it doesn't. what the white house is saying that their policy remains the same. the united states has a no concessis policy when it doms hostage takers. th won't negotiate with the hostage takers and they won't pay ransoms or give them any

concessione p saying he feel that protects americans overseas if hostage takers think they can get a big check from uncle sam, that will put a lot more americans in danger. the president said that policy won't change. >> clearly the original rule was designed to keep people from trying to circumstance up vent negotiatio. why the change now? >> it all came from the pressure from the families who have been through th ordeal over the past few years. a lot of them speaking out publicly to the press and elsewhere saying they felt u.s. governme was actually getting in their way or threatening or bullying them. trying to get their loved ones back. the preside saying this is all about their families. he spoke to them today and emthat no longer will those families feel like the united st government is not on their side. the u.s. government will work hand in glove with the families of the current hostages and any future hostages taken. >> at the white house tonight. thank you. >> well all states are not

created equal. at least when it come to doing business. is the best state for business? it is that time of year again. cnbc's top american stage for business. all 50 states were scored in more than 60 metrics in ten categori thing like cost of living and quality of life. let's give you the top five for this year. georgia dropped to fifth place after being ranked number one last year in the survey. colorado came in fourth. utah was third.

number two, texas. they were last year as well. scott cohen has more from the top state for business this year. >> minnesota has never been one to conform. this is the state that once elected a former pro wrestler governor and sent a former comedian to the u.s. senate. but attracting jobs is serious business. so when the current governor mark dayton laid out his plans upon taking office in 2011 minnesot were aghast. step one, eliminate the $6 billion budget gap. >> my proposed solution will be reasonable balanced and painful. because i see no easy alternativ >> it took two years and a governme shutdown before dayton got his way. a $2 billion tax increase targetin the wealthy passed in 2013. toy minnesota has a $2 billion budget surplus, one of the lowest unemployment rates in the

nation one of the fastest growing economies and some of e top performing schools. wealthy taxpayers didn't leave the state and neither did businesses. ev though the state now has one of the highest income tax rates in the nation. its other advantages including quality of life push it to the top of this year's top states for business rankings. >> we're not a low tax state but we're a high value state. the bottom line is pr it is proven that minnesota businesses do very well. >> state republicans and the business lobby are unconvinced. they fear the tax hikes will eventually back fire sapping the competitiv a slow drip drip, drip in terms of people leaving the state. it is not something you saway. it is hard to measure the town that doesn't come here because of the high taxes and regulatory environmen little surprise that had the most recent legislative session just wrapped up was as bitter as they come. in the end the governor failed

to get all the new spending he wanted but the republicans to reverse the tax hikes leaving minnesota on its off beat path to competitiveness. sct cohen, "nightly busine minneapolis. to see where your state ranked and how this study was conducted, you can head to our websit well bill unless minneapos man in the business world are gather ordering the disc the evolution of health care. needless to say the cost of drugs will likely be on that . >> reporte health care is changing from multi-billion mergers to pricing pressures on specialty medicine. the industry has to adjust. in minneapolis this week ceos and others gathered. >> we're going through a demograpc trend globally.

and patients are actually living longer and therefore needing more end of life care. and so we have a cost burden that is insurmountable now. you hear the statistics abou health car number going from 10% to 15% to 20% over time. how do we solve that? >> reporte one shift is toward so-called value based health care. realigning incentives to reward for patients rather than procedures >> the people incur the costs, providers, for example, even patients pay for it before they actually realize the value. as a resul no, one is really accounta for delivering the return of the cost that was invested. in other w t cost treatment, the return being the person, th patient gets better and no one is accountable. >> reporte emthat's a key initiative at his company now. the largest maker of medical devices after a $50 billion

merger. mi mahoney, ceo of medical device maker of boston scientif said we should expect the merger activity to continue. he said his company is focused on competing in specific markets. >> it is an important strategy for us. the largest isn't the best. our goal is to be the best for our customers. >> reporte the growing concern over the cost of drugs has been a key topic at the summit. with the prospect of five of the them will the pressure only intensify? for "nightly busine in minneapoli> elsewh ford is jumping on the ride sharing craze. that's where we begin our focus. the auto maker is launching its own program in five cities and lonl. company who finls through ford's credit service will be able to rental their vehicle out to pre screened drivers for use. and the company is recalling more than 200,000 vehicles

because of instrument panel and seatbelt issues. still, shares were more than 1% higher today to $15.5. news from disney to tell but. the dow come possibly is increasi payout by 15% to 66 cents a share. that will be payable to sharehol of record. also the firm will pay dividends twice a year now up from once a year. e yield is around 1%. shares rose only news in the afterhours before e close though the stock was down a fraction to $113.77. and free port mac moran is planning an initiative. e mining company failed to sell 100 billions of shares in its oil and gas unit which will listed under the ticker symbol. the shares of the parent company up more than 2% today to $20.56. shares of lennar also higher on strong results. the home builder trumps estimates rising nearly 20%.

the firm also says it is seeing a strong future for sales. the stock pumped 4% to 51.06. the dow come possibly and the cloud storage company will implement existing products and have new ones. this will give the huge base of customers. they were 5.5% higher to 18.53. ibm fell. investors getting a chance to react to news that a federal judge last night halted the merger between cisco and u.s. foods. r could kill the $3.5 billion deal which was announce in the december to combine the nation's two largest food distributo rose 3% to 38.75. the dutch based supervisor reached a deal to find the belgian peer. it would create one of the biggest food retailer in the

united ss as well. whole foods is under investign by the new york city departmen of consumer affairs for allegedly overchargi customers by overstatine weight of some of the pre packaged goods. whole foods vigorously denies any wrong-doing. we disagree with the overreachi allegations and we are vigorously defending ourselves. we disagreed the grossly excessive monetary demands. the state goes on. despite our request to the that dca, they have not provided evidence to back up their demands. have they requested any additional informa from us. but instead, have taken this to the media to coerce us. our customers are number one, are our number one stake holder and we highly value their trade with us. i don't want to get into what is turning into what is being

pretty vigorous problem between new york city and whole foods. this is not the first time we've heard of overcharging or weight discrepanc sloppy business or just one notorious for sli margins? >> it is a combination of the two. most of the problems with the suppliers, rather than the retailers. the suppliers are short, waiting the, they are short weighting product. when when the inspector come it is too late. it is tougher for company like whole foods who don't have their own distribution centers and they're relying on suppliers. that. you can have rogue employees and given stores whole foods has the highest level of institutio and institutional integrity amongs its leaders. sometimes you can have rogu employees weighting products made in the stores. th doesn't appear to be the case. it just appears that nuts and

blueberrie you get thousands of items in a given day to a store. the were short weighted by the supplier. >> so from the consumer standpoint what are the items, or what parts of the supermarket are there most likely to be violations if indeed there are some. >> you have to be really careful. prepared foods is number one. sliced deli cheese deli meats, al regular meat in some cases, produce, particularly when it looks l it doesn't have the retailer's logo on it. it has the logo of the supplier. there i margin pressure it is on the supplier. so the supplier short weights the product hoping that it gets by the inspector that comes into the store. >> i'm not convicting whole foods. these are allegations. it doesn't help their public image where they already have the nickname whole paycheck which i'm sure they don't apprecia because of their high prices.

>> yeah. and looking into the allegations from the full report from new about eight violations per store. there are over 100,000 selling units. so eight is within the norm. if you look at whole foods being the size of stadiums and the other retailers cited being the size of a nursery school whole foods would be very low on the list in terms of violations. and it looks like the violations were not caused by whole foods. but caused by others. so both sides are well intentione in this battle. but the industry needs to get better, the inspections need to getter a the consumers need more protection. >> very quickly, what types of firms are most vulnerable to this type of activity? is at thise big guys like the whole foods? or the kroger's or is it the smaller players? >> it is the smaller independ as well as the

major chains. this is a department of ag issue to inspect the suppliers before they ship it to the stores. the needs to be local and national coordination. >> with strategic resource insight group. good to see you. thanks. >> coming up overcoming the obstacles of entrepreneurism. here's what to watch tomorrow. announces earnings that on the data front, we have weekly jobless claim as well as the read on consumer health. they report on personal income and personal spending.

that's what to watch 4 on thursday. starting a business is a dream for many people. as every bknow there ar plenty of struggles for every success story. kate rogers are tracked down a few to get >> life isn't easy and life isn't perfect. >> if there's anyone that knows the struggles that come with entreprene i burt jacob. >> we didn't have any experience and we didn't have any money. we wanted to start a business together. the first step in starting a business is the most important. courage is a super power. >> he started his business with his brother with less than $100. today company has grown to more than $100 million. jacob spoke to hundreds of entrepre at cnbc's tour in los angeles. the city is taking a page out of silicon valley's play book.

as the economy regains its footing an small business optimism climbs steadily higher they are leveraging technology in new and unique ways. disney narrative for big companies like png and marriott. >> brands usually marketing to an older generation are looking at snap chat and others at a way to reach a next generation consumer before they make those decisions. >> entrepreneurs at the conferen say there's nothing stopping individ from launching their own venl urs. >> there is almost no barrier to get started. kick start is a great example. but youtube. there are millionaires that were made by creating video on youtube. >> for nm l.a. like brandy setting up shop in this city had been big a reason for the early success. >> i've been able to find other groups of moms or other

business dads everybody starting things like this and connect with them. so every single day i feel like i continue to find motivation. >> for "nightly busine in los angele i'm kate rogers. >> how many times have you said i could have done that. >> we have thought of it. but they are entrepreneurs and they act. >> they act as they do it and they work hard. >> that does it for "nightly or i'm sue herera. >> that have a great evmo

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