julie, what is index rebalancing for the russell? the stocks gety, moved around in different indexes. if you are in the 2000 now but moved up a lot, it probably will move into the russell 1000. creates a muchit volatility? we do that with the s&p. this only happens once a

russell rebalancing. it only happens once a year. he gets a little crazy. t is index rebalancing for the russell? the stocks gety, moved around in different indexes. if you are in the 2000 now but moved up a lot, it probably will move into the russell 1000. creates a muchit volatility? we do that with the s&p. this only happens once a year. the s&p can do this whenever they want. and you have to buy the shares or sell the shares of the russell 2000 stop and buy a different stock that is moving into 2000 instead, so there is a lot of trading going on in the last five minutes of the day. what are the qualifications for moving the companies and in and out? julie: there are little indications like the flow, the volume, but essentially you have index00, the large-cap and the 2000 and the small-cap index. alix: we are seeing a little volatility. yes, the s&p is flat. thank you, julie. i appreciate it. up on the bloomberg market day, we have the close. we are looking at a dow of 55 points. thank you, nike for helping the doubt. we will be right back. ♪ moments away

that's because there was a russell rebalancing. company up 4%. dow adding 56 on the session. nasdaq deeply in the red on micron disappointment across the pc space. s&p giving up just under one point. let's get out to breaking news on ebay with kate rogers. >> e ba i's board of directors has approved the completion of ebay and paypal separation. we've known about this for some time. the release says the distribution of paypal stock is expected to occur on july 17th. as you can see, ebay is down about 1% in the after hour. >> it's official. breaking news on the escaped prisoners in new york. >> we can tell you nbc news is reporting through jonathan dienst and pete williams richard matt has been shot. no word yet from nbc news on his condition. you will recall it has been 21 days of an intense manhunt for richard matt as well as his partner, if you will david sweat who broke out with him. now nbc news according to jonathan dienst and pete williams are reporting from a law enforcement source that richard matt has been shot. we'll keep

what does the russell rebalancing mean for volatility? bob pisani how much more could we see it surge today? >> it is going to be big, could be the biggest volume day of the year. there's $5 trillion indexed to the russell indices. if it's done right, that's the gamble. we don't know. first let me show you some of the additions and deletions. the russell 2000 small cap and 1000 that are in there. there is going to be a rebalancing. a number of companies are adding to their weightings in the indices and some are reducing. hyatt and facebook are adding their weightings to the indices. that will result in a lot of volume there. exxon-mobil and apple have been reducing their shares throughout the year aggressive buyback programs. they're going to be reducing their weighting in there. you'll see some volume in there as well. a number of companies going from the 2000 to the 1000. there's about 30. but there's about 120 companies that are going into the russell 2000 that are new. new small companies are being added. that's where a lot of the act

alix: in theory, this could be thebusiest trading day of year because of the russell rebalancing. pretty exciting day. joe: speaking of which, historic decisions,rt terrorist attack today, and greece still with us. protests of the far left party right now in athens and that is ahead of the meeting with eurozone leaders. again, down to the wire. it's going to come with concessions from greece, and greece rejected that. you could see the stocks in the 30 whene a dive around 1: greek officials that, look, this will lead to more austerity, no dice, people. of the dayote absolutely belong to the german finance minister who said, the greek government is democratically elected, but so is mine. suppresses saying, you cannot make us do this. that's a fine point. tst greece is also asking i creditors for more money. he is saying, i am here because i am elected as well. what is the greek vote went over the german vote? alix: hundreds of billions of euros in some form or another are owed to other european countries. there was a great article and bloomberg news this is all of this really comes

any bigot seeing catalysts, but it is the russell rebalancing today.e rebalancing the indices, so that provides an uptick in volume, especially at the close. right now s&p very little changed. the s&p, atinside the sectors, and you get a feeling of this push and pull. , consumer discretionary, financials on the rise. tech and materials and health care declining. sort of counterbalancing the moves we are seeing. another chart, to show you today has to do with how companies are spending their cash. this is coming to us from david wilson. this is his chart from today. this shows by backs and dividends as a percentage of operating profits. this is from data compelled -- dow jonesy s&p and indices. this black line is above 100. companies are paying out more in dividends and by backs to shareholders that they are earning in operating profits because of this push we have seen for companies to return cash to shareholders. .retty remarkable chart getting back to what is going on in today's session, i want to point out the move in the nasdaq. technology is seein

on top of it, you have the russell rebalancing tomorrow. >> yeah, i mean, you know, tomorrow could be pretty hectic but i like volatility. you know, this is you like volatility. [laughter] >> listen if you're a trader, listen some of our investors are watch business news a long-term investigators there's a big portion of trade those like the volatility because they go in and out of stocks this is gambling to a large extent. remember that type of trading gambling so you know. that is why they like volatility. >> but these unicorn startup companies that are worth a billion will try Über worth $40 billion? 50 billion, you now have two major limousine companies that are joining new york iewb per suit. you've got job suing fitbit lawyers are circling because everybody sniffs money but you want to really sniff money? $10 bills are getting a makeover this time a woman is the face of the bill. you heard about this right in so we asked you all on facebook who would you like to sigh on the $10 bill. here is some of the responses mary says eleanor roosevelt. we got a guy named heath that says ma

also bearing down on your money, a rebalancing of the russell 2000 index.hat happens after the close today, but all of it adding to some roiling in the markets. we still have a negative picture here, so we bring in the traders at the new york stock exchange and the cme group. keith bliss, you just heard the conversation about greece. how important will it be to watch how the european markets open overnight sunday into monday? >> i think it's important to watch what happens over the weekend. you have to watch if you're playing in the equity markets or the global markets at all, and you have to watch the futures start to move late sunday night into monday morning and get position on those. i agree with what mr. brown said. i think this is a very dangerous situation here primarily because greece is making overtures to russia, i think that would have more of an impact on the markets instead of just an outright greek default. if greece defaults and then runs to russia, then you're going to see some volatility like we've never seen before. so that's the real risk

. >> there is a rebalancing tomorrow. russell indices. what do you expect to happen? what will this mean for the market over the next several hours? >> there will be trading ahead of the imbalance by sophisticated investors who have the understanding of what's going to be rebalanced. they will be trading in anticipation -- >> we could get volume title? >> absolutely. i certainly hope so. tomorrow, of course going on to the closing bell will probably see volume i would guess somewhere grow four to five times to the daily volume to what traded on the day. >> all right. >> price action remains to be seen. >> most of the russell, the size of the russell includes smaller cap stocks which tend to move with any sort of indication. i think you'll see volatility intraday pick up significantly, which is why the vix was picking up today in anticipation. >> gentlemen, we'll leave it there. appreciate it. a little more than 45 minutes to go in the session with a lot of news to digest. dow is down 45 points. s&p down two and nasdaq only down about four today. >>> we have wall stree

russell chart. causing a ruckus, the index that tracks small cap names reconstitutes today. it already rebalancedtrack it must reconstitute to reflect what is now in that index. as the market closes, we're going to see a pickup in volume. we're just about average. about 3.1 billion shares into the final minutes of trade. it is an opportunity, get ready to trade, eric marshall is with us and he's trading right now. why is today an opportunity for you, eric? >> well, as the russell gets reconstituted, it's probably less impactful on the broader market than it had been over the last few years, because the turnover in the russell indexes has become less and less. however, within the individual stocks that do get added or deleted in that reconstitution, there's more and more etfs rebalance themselves off of the reconstitution. >> okay. >> so that can create inefficiencies in the market. it disrupts the supply and demand balances for stocks and that creates an student for stock pickers, and if the hodges funds we want to find the inefficiencies and take the image of it. >> okay, what are you adding? wh

russell come on friday. so you know that's going to be a major volume event. >> rebalancing? >> yeah the rebalance.appening now? well, i don't know. it's a little bit of a calm before the storm in the sense we haven't seen the kind of volumes we've been expecting. i haven't seen the kind of flow. volume's a little bit lighter. does that mean we have tsunami that is going to come in big at the end? volumes are swelling big here on the close. we have some banking deals coming tomorrow morning. things could get interesting very quickly. i think we're still worked out. look, i don't want to say he's not having an impact but i don't think he's the one running the show. we're a little bit soggy today. we've been within a range. >> is that a greece situation, then? is it because of that? >> you know what i'm not a big fan of greece running the markets here. i think a lot of that stuff's baked in. we'll get to a spot where someone will have to finally make some determination. >> one way or the other. >> it's just headline news right now. >> what levels are you watching real quick? >> the thing we're watchi