distribution channel they're not willing to try. >>> let's get to the cme group and check in with rick santellitelli exchange." rick? >> reporter: markets are tough to understand sometimes. as i read most of the blogs and news of the day regarding china, most of the news is framed as follows. will china be successful in stabilizing the market? they worry that the chinese will stop throwing some of this help, the life preservers in the market so the dynamic becomes about the helping, about the extra funds, about stabilization, about putting the market to where people are happiest and where investors hire the better. i look at it differently. when it comes to markets, to truly have a stable market and to have a market that is going to reflect fundamentals at some point even if post crisis we get off the track a bit and try to build confidence with various initiatives, in the end the confidence is because the markets ultimately are supposed to work as investors are used to them working. if the price of the shanghai composite or any market is just something written down by a central planner and ult

with the santelli exchange. rickhanks, jon. you know in my tease i said i've been emailed the same question, and that's pretty unusual. and it had to do with my interview with ed lazear. we ended up getting very close to answering a question and even asking a question, and the question that's emailed to me was this -- what are the adverse effects of overplaying zirp? zero interest rate policy? ed touched on the notion that if we have a feeling of being dissatisfied with the current economic environment after we've had certain things in place for over seven years, maybe policy isn't doing what it's supposed to do. now let's drill directly, i'll give you my impression. unintended consequences of ziro interest rate policy, what are they? we have no idea, but i could throw out some potential ways to think about it there are companies that probably should have had loans, to expand or start new businesses, that didn't get them. because in a zero interest rate environment -- there's a different dynamic. the economy is calib

long to wire the money when they get the okay. >> thanks, david. >>> let's get to the cme group, rick santelli santelli exchange. >> one of the big debates, it pretty much encounters a lot of the word traffic on cnbc is to tighten or not to tighten. that is the question. and believe me, there's not only a lot of verbal debate. there's a lot of trade that goes on. yield curve trades, a variety of ways to put your thoughts or your opinions on what the federal reserve and its path to normalization may look like. but today, maybe we're given an extra clue, because fed staff seems to have released some of their projections and yes, we could talk about gdp. i want to talk about fed funds target. before we get into specifics, let's think about a couple of things. first of all, did anybody see today's housing data? it wasn't spectacular. we had fairly spectacular existing home sales. we've had a lot of pretty good, not so good, middle-of-the-road data over the stretch of the first six months of 2015. the real issue is is the economy performing in the six-month stretch in a way ha would give sufficient

we saw what happened then. >> let's get to the cme group this morning and check in with rick santellielli exchange." >> reporter: hi and thank you. there are so many different ways to anticipate where markets are. i believe technical analysis and understanding the past gives you a leg up in the future. nothing is foolproof. in the pitts or working with clients is that they behave under pressure at about the same way whether it's five years ago, ten years ago, 50 years ago. of course markets change. how you trade markets change, but the underlying investors remains constant. to that end let's look at a chart of the boone yields since april. i want to you look at that chart. i quickly tried to draw one that's equivalent to the white board. starting in april of deals you had the low yield. right around the middle of april to, of course, the high yield off that low which was 98 basis points. rates will go higher right around 70 basis points, 64 base points. there's some significant tech nals. technicals. here is the way i want to look at it. look at a month to date chart. what should jump

rick santelli, what are you watching today?ing to talk about that treasury information eamonn javers brought us. we'll also talk about what real data dependency means as we get ready for a couple days of testimony by the head of the fed after the break. [ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪ meet chris jackie joe. minor damage, or major disaster, when you need us most, we're there. state farm. we're a force of nature, too. ♪ we're a force of nature, too. or building the best houses in town. or becoming the next highly-unlikely dotcom superstar. and us, we'll be right there with you, helping with the questions you need answered to get your brand new business started. we're legalzoom and we've already partnered with over a million new business owners to do just that. check us out today to see how you can become one of them. legalzoom. legal help is here. i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimi

check in with rick santelli.ell of course i'm still preoccupied with what china did regarding their equity markets. do all ends justify means and how far is too far. when we look at what happened in china we've had so many different guests come on saying listen, we get it. the market is correcting a bit. it's all good. is it really about markets correcting? is it really about making sure that outcomes are guaranteed? how far is too far? if we made green, red and red green and left turn signal right turn signal, switch the wires so instead of when you hit your brakes, your brake lights go on, your headlights go on, what kind of traffic pattern and traffic jam would we create on major thoroughfares. that's silly. but is it really? when you get market signals, let's look at the relationship between the equity markets in china in the crb index for 20 years. you see that on the screen. they don't correlate perfectly. but trust me, i've looked at this carefully. they do correlate and at times very tightly. look what ha

rick santelli, what are you watching? >> well of course we have to talk about today's data.f the breaking news with sue herera on calpers caught my eye. think we'll need to talk about that a bit as well. after the break. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom- some expect to cut dropout rates by twenty-five percent. ibm analytics is working to make education smarter every day. ♪ ♪ it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank. >>> coming up, a four-day rally for the markets, the first day in six months and super investor mario gabelli joins us, bold calls on the street today on some of the biggest names, including amazon, intel and coca-cola. w

rick santelli in chicago.: even though we had june retail sales the last second half of the second quarter. we learned that may business inventories increased exactly as expected, up three tenths of one percent. we want to continue to monitor inventories for that among other reasons and also atlanta fed gdp now should update later on today with the current data that will be significant. all of today's data has been on the soft side. >> our lead this morning after years of talks, iran the u.s. and five other major powers reached an historic nuclear deal today. the agreement will mean things will be eased. we are look at hq manywith more on the story. >> reporter: president obama has wanted this deal very badly. he was out at the white house at 7:00 a.m. heralding this deal and anticipating stiff congressional resistance. >> i welcome a robust debate in congress on this issue and i welcome scrutiny of the detail thofs agreement. but i will remind congress that you don't make deals like this with your friends. we

let's go to the bond pits rick santelli. a lower yield and a weaker dollar rick?> we are calling it steeper, lower, longer. steeper, the yield curve. five is what you want to pay attention to. fives versus tens two-day chart. see the steepening on the knee-jerk reaction to the 8:30 number. you can see it clearly in fives versus 30s as well on the two-day chart. why longer? steeper means longer. it is hard to defend the fed is going to tighten any time soon because the yield curve normally would be flattening? it doesn't matter if flattened rates move up or down. normally it would be rates up generically but up more aggressively in the short-end. if you look at a ten-year note yield, you can see the steeper, lower, lower rates. it isn't only us. it is the boon as well. they did a very similar maneuver. also a similar move. here is where things get fascinating considering we have a holiday and the rest of the world doesn't. greece has a referendum. they didn't pay a whole lot of attention until about a half hour after the number, the dax. with he were getting ready

rick santelli at the c&e. good morning, rick. >> good morning, krafl.ook at lineup after gdp, it pretty much tells you boatloads about what's going on in the market place. two-year notes are up 1. 5s are up 2 and 30s are down a handful at 295. they rounded out a settlement at 3% really 2.999%. most of what you see on the long end, let's get to the charts. look at a two day of 2s. it is hard to imagine we had a less aggressive gdp. the atlanta gdp nailed it virtually. go to the long end and look at a two-day of 30s. a different picture. once again we are back to this interpretation, more art than science. you raise the bridge you lower the river. we see the curve has flattened. the dynamic, the aggressive side of the flattening really seems to be the weaker growth pushing long-end rates down. that's key. look at the two-day bunds. their pattern is a little different. they were breaking out of the range. it seems to be getting back on track if the yields float up. the dollar index, once again. a fed normal zationization is going to bring more. it is about

check in with rick santelli and the santelli exchange. rick? >> thanks, carl.sting day to say the least. you know, when it comes to certain markets, it's impossible to fathom how the looming issues that we have no answers to because there probably aren't easy answers to like greece, like china, to deal with them. we all understand that certain systems trade in certain ways and markets have lots of momentum, think tesla, and there's a lot of different aspects to investing, whether it's dividends or central banks. one thing i find fascinating with regard to greece, i still think that it takes a huge back seat to what's going on in china. tape bombs as we call big news headlines will continue to rock the market and continue to come out about greece. in the end let's keep it simple. the easy thing to do is to continue to play the same song we've been playing worldwide, print or try to find ways to wall paper over debt. it's come after 5 1/2 years to a point where we're looking to see some answers with regard to china, if it took 5 1/2 years to get here with greece,

see new about 15 or so. >> let's get to the cme group, rick santelli with the santelli exchange. head, rick. >> it's going to be a fascinating afternoon and there is no press conference today. however, if there was a press conference today, i have a feeling there would be questions about china. there would be questions about the global economy. now i don't know the answer to these questions. and what they most likely will be regarding would be how much credibility, attention do we need to pay to the current issues and glide path of the chinese economy as it affects the global economy. >> as all of that affects the u.s. economy. you could be all about the u.s., we don't elect people in government to directly toss all the issues in the united nations. but of course we need to be part of that same type of dynamic. but one thing would come up of course, and that's chinese stock market. and i've heard a phrase -- several times over the last few days, and it goes something like this -- thank god that china has an army of technocrats capable technocrats to navigate these very dicey econo

carl. >>> let's hop over to chicago, check out with rick santelli to get the santelli exchange. >> hithank you. my beat is business, and business is about making a profit. making a profit is about new and innovative products, which leads all roles these days to technology. the interconnected world we live in whether you can unlock and turn your alarm off in your house with your smartphone, so many ways to stay connected. if you're connected. maybe somebody with purposes not nearly as honorable as yours are also connected. which leads me to a story that was sent to me today from "wired" magazine. >> hackers remotely kill a jeep on the highway with me in it. the reason it bothers me so much is is, is because even though the barrier to entry for many of the technology businesses is high, with regard to being inner connected. i remember not that long ago, many people in my neighborhood were fearful because somebody in a universal way to open grachs up. >> they were opening up garage doors, i remember the last car i bought, i'm not going to tell what you type of car it is, but its gps syst

let's get to the cme group to check in with rick santelli and get the santelli exchange. >>> well oflittle bit on the fed. when it comes to the fed. we've seen a lot of buzz phrases, buzz words, word counting and statements, we've seen notions of transparency. things like today-dependant. but we haven't seen a lot of action and that probably will change. i just like to say it's going to be a learning experience. i don't normally buy lotto tickets, here's a lotto ticket. how transparent can i be about what's going to happen with the lotto ticket? not very, because the drawing hasn't occurred yet. can't be transparent about the lotto ticket in terms of data-dependant, we've put that to the rest. once we see the fed's action we'll be able to reframe most of the issues in the context of words versus actions. and i think will be a good development. as far as gdp today. i had peter bookfar on as a guest. one area we didn't cover, he wrote about the drags in the gdp number. two were inventory and nonresidential fixed investment. on the second one i totally agree. on the inventories, i harke

rick santelli is watching the action. what kind of grade are you giving it today? >> i guess the grade is easy -- an a. this is an a from top to bottom. but to. happen on a fed day i think speak volumes. the yield at the dutch auction 1.625. the bid side of the 1 issued market, we've priced aggressively. the bid to cover, 2.58. higher than the 10 auction average 2 1/2. here's whr it gets interesting. yesterday we had the best indirect bidders in the 2 year since june 2009. today, 67.5 versus 10 auction average of 58%. i have a 13-year history of 5-year note auctions and it is higher than any of my 13-plus years. so inbelievably strong indirect. directs were 5.3, a little light of the 10 auction average at 8%. this gets an a. fed meeting today 2:00 eastern. tomorrow we'll clean it all up about 29 billion 7 year notes. >>> let's get to somebody who knows a lot about bonds, $1.5 trillion worth, to be exact. pimco's ceo scott maddow i hope you heard rick santelli giving the 5 year note auction an "a." what's your reaction? >> yes. good afternoon. i guess it is not that

rick santelli at the cme group with the santelli exchange. >> calm is not our favorite word on trading you will tell you there are two words that have become totally not my favorite words -- implicit, explicit. let's go back a ways. i remember doing business on this trading floor, actually a trading floor connected to this we no longer use. where it was all about banks, mortgages, gses and the fact that freddy and fannie among the gses, was able to borrow at a rate nobody else could borrow at. they drove the mortgage market. how that turned out is definitely history. it's called a crisis. but when i was doing business as a broker, i remember many times having conversations that none of these products are backed by the u.s. government. although market participants believed in an implicit, meaning kind of not truly written down, but implied guarantee. that proved to be an explicit guarantee. my question now is aren't investors returns becoming an entitlement? and it's not from the standpoint of the united states. it's actually a global scenario. so now let's go to the heart of the conver

that has a lot to do with buying treasuries lower yields and with that we go to chicago because rick santellimorning. i'd like to welcome any guest i.r.a. harris. no matter the crisis, i remember in the '87 crash there was rumors of plunge protection but they stifled it. this was not use they wanted out and reporters that talked about it probably got nasty contact phone calls. now this is the world we live in. basically china, japan, united states we've taken so much risk out of investing. it's now governments picking who gets money and who doesn't, isn't it? >> because it's all driven by headlines. and we live in a world where everything gets read and magnified. central banks and governments make the mistake of paying attention to the stock markets. if you're doing the right things stock market will make care of themselves. we know floors under things artificial floors never work. >> now, i know greece is a big story. of course because news moves markets. and it isn't whether it's fundamental news or political as in this case it moves markets. the type of trading on computers moves markets b

. >> rick santelli.back one of today's earnings winners, ups, we'll speak to the ceo later. we're back in a moment. need to hire fast? go to ziprecruiter.com and post your job to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com. >> up big news on earnings. two for one stock split. we'll talk with ceo susan cameron in a moment but first we'll get to stop trading with jim. don't go away. some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪ ♪ so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don'

rick santelli in chicago. when we come back biotech company horizon pharma. the stock is up. the ceo is going to join us next and later in squawk alley, an exclusive with the ceo of e-bay as the company officially begins trading as a company without papal. record highs on the nasdaq. we're back in a moment. are you moving forward fast enough? everywhere you look, it strategy is now business strategy. and a partnership with hp can help you accelerate down a path created by people, technology and ideas. to move your company from what it is now... to what it needs to become. >> sharings of horizon pharma are up. joining us is the ceo. you might know timothy because he's been a frequent guest on mad money. how many of these new drugs, the ones that you just acquired are responsible for this up side? >> well, jim, it's a combination of our base business continuing to accelerate and the high peern transaction integrated fully within a few weeks and adding new patients. >> i think people don't understand when you get a drug a lot of people have given up on or didn't know how to sell

let's go check on things with rick santelli. >> reporter: good morning. chart that you want to look at to see what's going on in the markets today, look at when the alarm clock went off for the markets. it was about 5:00 a.m. eastern. check it out. look at the spike in all the following 24-hour charts. pretty much the same thing. actually a little bit before 5:00 a.m. eastern. look at the euro versus the dollar, a big pop up. bund yields, big pop up. look at the dax, big pop up. our ten-year yields big pop up. as a matter of fact, at 242, we're only about a half dozen base points away from the yield of the year. let's take a little bit longer term view. we know that the curve even though flattening seems to be most associated with federal reserve or any central bank that's looking to tighten, that isn't the case lately. look at 30-year bobdsnds. they are much closer to challenging the high yield of the year. they're only a couple of basis points away. and if you want to look at the yield curve, we almost have to open it up to give you a true pictures. ten

. >> joining our closing bell exchange we've got steve dudash peter costa and rick santelli. >> this has been a dreadful week. i think there's been a plethora of bad news. what will probably happen next week, we'll have a plethora of good news. >> we need a good greek crisis to get this market back on track. >> you would like to hive that. then the people in greece wouldn't be that thrilled about it. it's about earnings. you have a lot of companies that expectations weren't that great to start off with. they miss that. they got hit badly this week. i think that has to do with where they were as far as price is concerned. when you are topee, stocks tend to trade down quickly and hard. >> rick santelli before you were in the bond pits you traded gold. what do you make of the hemorrhageing in commodities? is that a signal for the broader markets? >> i think it's a demand story on steroids. these stories are big. china in many ways i think on the way up for many of the markets over the years. when they started accumulating everything, you remember. they accumulate copper iron ore, lookin

rick santelli.back the ceo of union pacific will join us for a first on cnbc interview. we will get his take on how commodity prices are impacting the bottom line. stocks at a new 52-week low. we'll be right back. so what else can you give me? same day delivery. the ottoman? thank you. fico scores are used in 90% of credit decisions. so get your credit swagger on. go to experian.com become a member of experian credit tracker and take charge of your score. >> a lot of big movers today. the businessest day of moving season. one that's moving more than the others. dominic chu has s&p 500. sandisk shares soaring more than 17%. you can see up by 17.5%. after the flash storage device maker reported a quarterly profit that doubled what analysts were looking for. analysts had been aggressively cutting their profit estimates for sandisk before this report. they were hurt by sales of solid state drives but did beat estimates in terms of sales. so sandisk shares had been beat up hard going into this report. so

post 9, it's all yours. >> thank you very much rick santelli in chicago.ing up on cnbc could adam bain be the next ceo of twitter? "squawk alley" discuss it is after this break. i take these out... ...to put in dr. scholl's active series insoles. they help reduce wear and tear on my legs, becuase they have triple zone protection. ... and reduce shock by 40%. so i feel like i'm ready to take on anything. when you're not confident you have complete visibility into your business, it can quickly become the only thing you think about. that's where at&t can help. at&t's innovative solutions connect machines and people... to keep your internet of things in-sync, in real-time. leaving you free to focus on what matters most. >>> good morning, it is 8:00 a.m. at twitter headquarters in san francisco, 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪

tyler, back to you. >> and well said rick santelli.y much for that tribute to your esteemed colleagues. we appreciate it. to all of you, happy fourth of july. >>> major averages up for much of the early part of the sessions in terms of equities but they've lost their gains, now sporting modest losses. bob pisani is at the new york stock exchange to fill us from. >> drifting lower on light volume. s&p, really this is a lack of bids. no really enthusiastic selling overall. bond rates lower. look at the utilities. telecom and reits all moving to the up side. yields down. that means banks generally tend to move to the downside particularly the regional banks and that's generally what we're seeing in that particular group. a lot of people have been asking me about what will happen on greece? how you can play that. on a yes vote we could expect the euro to rally and you would expect certain sectors like spain, italy, france and germany, these are etfs you can buy to rally. we asked our partner about that and they do see rallies in this group

rick santelli joins us from the cme along with steve leisman. this is nice. hate. >> careful, joe. careful. >> come on joe. >> careful. >> where are you going with this? >> where are you going with this? don't give me a brokeback cme over here. that's not what we were talking about. >> not that there's anything wrong with that. you guys -- >> batman robin. >> sorkin and kernen. you've had your moments. but deep down there's a respect and a love as colleagues. >> abbott and costello. who's on first, rick? >> rick i got a flag tie on too today. >> stan fisher. what's that joe? >> i have a flag tie on today as well. >> do you? god bless america. happy birthday america. my favorite holiday. >> it is my favorite holiday. we're going to talk about that at some point today as well. so, rick i'll let you start. i'd love to start something with you guys standing right next to each other. i'm trying to figure out how i can do it. what do you make of the numbers today, rick? >> listen. i think that we are improving. i think the jobs picture is definitely improving. but

let's check in with rick santelli. good morning rick. >> reporter: good morning, carl., of course, a lot of people are paying attention to the two of year note as are all short maturities under the microscope to see if central banks are on the move. first of all it's 70 basis points. we've had higher yields in the two-year. even though the curve is flattening, there have been periods with more selling in twos. go to the other end to 30s. 312 now. even know in agate on an annual basis, the curve has steepened most of the near term activity continues to be focussed on the short end where the curve has done some flattening. let's look at the tens. one and two-day. the weakness in equities may be pushing them down the two-day charts clearly shows you want to pay attention to the high end of the range and see if you get any momentum on the selling pushing rates up and a june 1st of tens shows you around 248. we're constantly in striking distance but it doesn't seem as though we're under a boiling point at this juncture. we look at the euro versus the dollar. it's reversed a

ben willis and our own rick santelli. rick, people actually were asking yesterday what was happening in chicago? how were markets handling the flow moving away from this market? just beginning with a little bit of scene setter from the last 24 hours and trying to incorporate the events in greece today. >> the e-mini s&p contracts were trading higher volume than normal up until about maybe 12:30, 1:00 eastern. by the end of the day, their volume numbers were normal to any day. they were a little bit over 2 million contracts. the smaller s&p contracts traded electronically. all the treasury futures have normal volumes. ten-year had normal volume. you could argue we had better volume yesterday than weed had for example on thursday. the last guest yesterday on this topic said what everybody has been talking about. the world changed on two things regarding exchanges. the fact that they demutualized and became for-profit a. big, the fragmentation of the equity markets and regulators approving various exchanges. i'm not saying ho

let's go over to chicago with rick santelli for the santelli exchange. >> reporter: thanks, simon.haven't missed being on the fed day since 1979. i'd like to welcome mark olson. thanks for taking the time. >> my pleasure. always good to be here. >> listen, i want to build a case and talk about the federal reserve. maybe i have my own personal biases but my high both thinks is this. zero is too low. a 2 to 2.5% economy doesn't warrant zero interest rates. is that something you can live with, mark? >> absolutely. there's no question. you do not want to have a zero interest rate environment. that just begs the opportunity to go negative into a deficit of an economy and you don't want that. you need to have inflation rates much higher than that and therefore, an interest rate, some premium above that point. >> reporter:. yellen recently made the following statement. the unemployment rate may understate the lack of remaining slack in the market. i'm sorry if this doesn't sound polite. we put all faith and credibility into the unemployment rate knowing full well percentage of the labor f

let's check in with rick santelli santelli. >> reporter: once again, i like using the roller coasterhe market takes everybody on a roler coast roller coaster ride. where you get you have depends. the dollar index is down a bit but not down much on the week. look at the two-day chart. yesterday's fed minutes, but it did have a dovish tone to it. part of the equation of the markets lately is the foreign exchange. the battle between the euro and the dollar. now, maybe that's boring to some people but the euro may be paying more attention to the dynamics of the eurozone but the dollar is thinking about what the fed is going to do and it started to slide long before anything in greece became more front and center on the news media. if you look at a two-day of the ten year it moves up a bit and i'll tell you why according to traders. look at a june 1st chart of ours minus bunds. if you get a notion that greece isn't going to grexit you're selling tens. they're linked at the hip. look at a year to date ten. technicals are compelling. unchanged at 17 and here we are at 239 basically unchange

rick santelli, you got to be paying close attention to this today. >> always paying close attention. about what's going on in greece with art cashin. art is always the man. we're going to talk not only about greece, we're going to talk about today's adp and ism. is it true that if we have less in the economy we're going to have more fed? i don't think so. tune in after the break. >> . >>> coming up, a big jump for stocks to open the second half of the year, we're all over the markets every move with our team of experts here and in athens, a new leader in our competition for trader of the year, we reveal who is now in first place and what the others plan to do about it. >>> why one top analyst says apple is the shake shack of tech. is america's most-loved stock ready for a second-half takeoff? we'll answer that and more 15 minutes from now. >>> now to rick sandali and the santelli exchange. >> yes, tomorrow is going to be the last trading day of the week and of course we have managed with the closure on the 3rd to group everything in a tighter proximity. adp today, bureau of labor sta

back to you. >> rick santelli thanks very much.h a look at what's coming up next on "squawk alley." >> yesterday google was trading in the high 500s, today up 15% in kissing distance of 700. we'll bring you the news on the earnings. why it's trading so high. >>> and also clinton/bush. hillary clinton and jeb bush talking about the sharing economy. he got in an uber what does it mean for their positions on that? and finally, rounda rousey our julia boosten caught up with her. push your enterprise and you can move the world. but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today. and stay ready for everything that is still to come. new york state is reinventing how we do business by leading the way on tax cuts. we cut the rates on personal income taxes. we enacted the lowest corporate tax rate since 1968. we eliminated the income tax on manufacturers altogether. with

. >> rick santelli doing what he does better than anyone. thanks for that rick.et inventories for oil. >> good morning. that's one of the reasons that we are seeing the energy complex a little bit higher this morning. the opposite direction of what we're seeing with equities today. crude oil trading at $52.82. off the session lows at one point during this morning. more than a dollar. it could be a volatile session. but the factors, the weaker dollar, that's one of the reasons we're higher. the department of energy coming out with an inventory number. we're expecting a draw. that's what we heard from the api last night as well. and of course waiting on greece. still waiting to hear more about china, the nuclear talks with iran as well. but i would say this. prices are lower -- are higher across the board also because of what we're seeing in the products. gasoline taking a big hit yesterday and now rebounding. we're not looking at the broader markets but more technical factors taking us higher. that's what i was watching yesterday. we took it out but we weren't abl

rick santelli good to see you. has wrapped in europe and we will probably be hearing from european leaders shortly here. alexis tsipras expected to make a statement on his way out. >>> time for a cnbc news update with sue herera. >> here is what's happening this hour. an air force f-16 fighter jet collided with a small plane in mid air near charleston, south carolina. debris hitting a trailer park. the pilot of that jet ejected to safety and was taken to shaw air force base for observation. no word on his condition or the fate of anyone onboard the small plane. >> the u.s. army plans to put 40,000 troops over the next two years affecting all of its domestic and foreign posts. that's according to "usa today." it is citing a plan due to be announced next week. the paper said that plan also calls for 17,000 civilian employees to be cut. >> massive crowds gathering for a mass by pope francis in ecuador's capital. more than a million people were in attendance. the pope connected the themes of political liberty and relig

let's go to rick santelli in chicago now. >> reporter: thanks.ld talk about china or some of the data out or how their markets are lower, how are at love european things are lower but the best thing is with the following chart. may, 2009 crb index. that's the last time we were trading at these levels. whether this is an accurate picture of global demand is up to you. but china and commodities are linked. they were linked on the way up. they're linked on the way down and based on the way markets move, you heard jim cramer talking about it isn't right that all markets get painted with the same brush but that's kind of the way we went up and it's most likely the way we'll go down. if you look at april 15th of 2015 look at the dollar index. that's taken the crb to the next level in terms of why the dollar and the fed and central banks are so important. the dollar isn't at the highest levels but it's certainly at lofty levels. now, let's look at something else. let's look at the 30-year bond and why is this so important? well, first of all yesterday w

. >>> let's get to the cme group, rick santelli with the santelli exchange, hey, rick.me my last guest of the week, peter bookfar, thanks for taking the time, peter. >> thank you. >> will was so many things i wanted to discuss with you today. but let's cut to the chase, shall we? you know if you're an investor, whether you're an investor domiciled in the u.s. or anywhere around the globe, considering what china lass done with the ecb has done. all the policy we see by central banks and central planners, what's an investor to look at? the markets? is the chinese stock market signal worth anything? what about the signal of interest rates? should a spanish 10-year be at its current rate, below a 10-year in the u.s.? it seems to me that market signals are not what they used to be. your thoughts? >> well central bankers, led by the fed have destroyed the pricing mechanism. where interest rates should be based on the supply/demand for money, it's created in closed-door rooms at a rate that bureaucrats think is the right rate. so if the cost of money is a fake price, every ass

. >>> we'll go out to chicago and check in with rick santelli tracking the fixed income markets. >> it'sturn session for treasuries. there was a lot of glee over the it 5255,000 lowest level for initial claims since '73 but that's not enough to keep the market from focusing on the biggest issue -- equities and how they continually keep losing ground. look at intraday of 10s. 2.30%. see what happened when you went under 2.30? had some buy stops because moving price up moves the yield down. if we should close under this level, open the chart up from the first week? july, it would be the lowest yield close anything basically under this 2.28 to 2.30 level, the lowest close since about the 8th of july. looking at a two-day euro versus dollar trade. a lot of the 8:30 action pushed it up but the fact is we've had eight sessions since the 14th of july where the euro closes under $110 and it stayed there. this could be the first session going in reverse. could it be that simple? yes. the dollar index has become a proxy for fed. we all know what's going on with stocks could be a bigger proxy for t

." >>> to rick santelli at the bond market at the cme. lots of data this morning, ricky. are bonds looking now is. >> the eci data caught everybody off guard. it is the water cooler topic. i'd say about one-third say it is an anomaly, the other two-thirds say even if it is we have to pay attention to it. no matter how you slice it it had a big impact on the market. a two-day of the dollar index, clearly see how it really got the stuffing knocked out of it around 8:30 eastern but it is making a comeback. it is getting closer to unchanged. look at 5s and 10s on two-day charts. down eight basis points on 5s, 10s haven't moved at all. if you looked at the s&p municipal puerto rican bond index it is at a six-year low. should be no surprise but maybe a very interesting weekend in that regard. >> rick santelli thank you very much. i'm glad we finished with the dollar being down because it is helping gold prices somewhat right now. they are closing to the up side. gold sitting at $1,094. moving to the up side by about $5. nonetheless, it has had a really bad month, down 6% this m

. >>> to the bond market rick santelli is tracking all the action at the cme. >> hi melissa lee. the big buzzword is the curve's flattening this week so the fed is going to tighten. listen, i get it. but taking a more macro view and it gets a whole lot more confusing. the the 2-year chart of note yields they're equal. year to date of 10s. basically 17 18 basis points higher in yield. curve's steeper than it was at the end of the last year though it has been flattening. if you look at a year to date of the dollar index, we're up a lot. we settle around 90. we're getting close to 98. we all know why. the market potential is potentially we're going to see a rate increase at a time when europe and china, their trade together most likely won't be as aggressive. two charts we don't normally look at, dollar versus peso. historic highs favor dollar. last chart dollar versus south korean yuan. there is a lot of things going on with the dollar you should pay attention to. >> rick santelli thanks to you. >>> europe continues to soar germany's dax almost 7% higher this month. why investors a

. >>> to the bond market and rick santelli tracking the action at the cme. >> it wasn't that many hours ago we were debating whether it was china, puerto rico or greece pushing yields down close to 2.30%. today we're back over 2.42%. an intraday chart of 10s, it's definitely been a slow creep up. we can argue the data today is better than expected but if you sum it up whether ism or adp jobs, six months of this year versus last year last year was stronger. year to date chart reveals we're only a handful basis points away from the 2.48% close of the year. 24-hour chart year row versus dollar had strength early but weakness now. mandy, back to you. >> rick santelli. >>> talking of a slow creep up the dow almost back to a triple-digit gain. currently up by 99 points. it was up by 182 points earlier on in the day. courtney reagan is the aat the nasdaq. but first, bob pisani. >> i think this is a little bit of belief that the second half of the year is going to see some real improvement and the i think the jobs numbers will be a good one tomorrow. we're off of our highs and some of this was

but first, rick santelli, what are you watching today? this trading floor today, john, the employment cost index, and cnbc has covered it in an awesome way today. it's not normally a huge market mover, but today it was. why? that's what we're going to talk about after the break. seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm, they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day. can you tell what makes them so different?. did you hear that sound? of course you didn't. you're not using ge software like the rig on the right. it's listening and learning how to prevent equipment failures, predict maintenance needs, and avoid problems before they happen. you don't even need a cerebral cortex to understand which is

rick santelli tracking the action there. yesterday's 5-years got an "a" from you. what about today? >> it's tlurshursday, friday eve. maybe i am in a good mood. i'll give it a c-minus. the end of 90 billion in supply finishes off with 29 billion 7-years. a bit of a tail going on here. the bid side was 2.015 on the one issue offered at .01 so we tailed a bit. aulg the other metrics are rather in line with an average read. just a little light of 49.1% on indirect which had been stellar for the 2 and 5-year. maybe foreign central bank stepping up. maybe it is the market action. maybe the fed. 12% on directs is the auction average. 2.021. c-minus. supply out of the way. we'll have today and tomorrow to finish digesting what has been a very interesting week in the markets. back to you. >> thank you, rick. >>> let's look at what the stock market is doing right now. just a moment ago all three indices turned positive. both the dow and s&p are now slightly to the negative again but keep in mind we're well off the lows. the dow started out the day with a drop of 110 points at the low. let's

rick santelli is back. good to see you again ricky, down at the cme. are we seeing any strong demand there for the auction? >> very strong demand and what's kind of funny is we're seeing yields move up. watch 2.24 on the 10s and 3% on the 30. back to a three-year note auction, just auctioned off 24 billion three-year note and .932 and bid was .935 and offered at 93. pricing good in that respect. bid to cover was the only metric that was a little light, 3.16 versus 3.29 ten auction average. lows bid to cover but they have been tight since august 2014. 47.7 on indirect beats the auction average and 13.9 on direct. so, mandy, the demand for this auction in the grade form is a b-plus. 21 billion tens followed by 13 billion 30s, draft up 58 billion in supply. back to you. >> okay. b-plus for the three years. let's take a look at the ten-year and already 30 years as well. treasury getting a safe haven bid hereing yields down. ten-year at 2.221 and 30-year bond earlier and right now sitting marginally above the low. >> counterpunching like floyd and mayweathe

rick santelli tracking the action at cme. >> the ranges but a two-day of 10s show compact or not we'rebelow yesterday's range. most of the trade today after the initial high yields that we saw that was reversed by intel announcing some big supply. what's that doing and why is it happening? most likely it is fed related and it is summer. the high-field etf, we're basically trading at the low yields of the year. if you look at the lqd, the investment grade etf, that's the lowest level since december two years ago. if you look at barclays spreads, they're widening. most likely the weakness in treasuries they say is caused by ongoing weakness in equities. but every survey still has many investors starting to believe september rate increase and this is reflected in these spreads. >> thank you, rick santelli. >>> let's go to dominic chu now for a "market flash." >> remember our conversations yesterday about life lock the company that looks after identity thieves? the shares are rebounding after plunging by around half yesterday. the stock took a hit after the ftc really accused the company o

and neither is rick santelli. good to see you all. michael, what do you make of what's going on over there? and does it affect your investments at all here? >> correct. i'm very surprised at what happened. up until friday the referendum was called everything was business as usual. now business has completely stopped as it relates to our clients and what we're advising them. let's move into safe investments and see how this shakes out. i feel it could affect the world economy. >> peter costa, is that what explains this slow fade from the open? the dow was up about 182 points. at one point in the session, now it's up still triple digits but really come off the highs here. >> well, it came off the highs and went down you know it was up about 75 and the markets rallied a little bit over the last few minutes. you know i do think that there's a little bit of banking brinkmanship going on with the prime minister. and i think they're gambling a little bit too much with their own economy. and i think that at some point, someone -- cooler heads

i would add real quick, as jim beanko noted earlier in a segment with rick santelli.ay marks roughly speaking the first day of the seventh year of this expansion of this bull market. it's really remarkable that we're still this far into it. worrying about some of the sort of macro issues and we haven't learned our lesson. whichcy believe ultimately earnings drive stock prices. >> ism better than expected. consumer spending strong. adp was pretty good. and auto sales pretty strong as well. if you're a bull, in this market, there's a lot to hang your hat on for the weeks and months ahead. once you can get yourself past the uncertainty of what's taking place with greece. >> sure, but also remember, the uncertainty doesn't, i've been in near constant contact with our clients dating back to friday evening. most people don't care. everybody is well versed in the specifics, everybody is following the headlines, it's all very interesting and well and good if you're running a book, if you're managing risk. this is roughly speaking, a, a passing moment in time, if you will. nob

. >>> but first, rick santelli, what are you watching today?rse i'm watching the yield curve, all the treasury pricing, what's going on in europe. all in the context of the fed and the september meeting. we're going to talk why and we're going to talk when, in terms of the fed and normalization. after the break. hi my name is tom. i'm raph. my name is anne. i'm one of the real live attorneys you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here, we're here, and we've got your back. legalzoom. legal help is here. but it is not the device that is mobile, it is you. real madrid have about 450 million fans. we're trying to give them all the feeling of being at the stadium. the microsoft cloud gives us the scalability to communicate exactly the content that people want to see. it will help people connect to their passion of living real madrid. new york state is reinventing by leading the way on tax cuts. we cut the rates on personal income taxes. we enacted the lowest corporate tax rate since 1968. w

let's go to rick santelli in chicago. good morning, rick. >> reporter: good morning. greeks aren't saying this but a lot of traders on the floor are saying is that all there is? there really isn't a lot of movement going on here considering the thousands, tens of thousands of headlines over the last week regarding greece. look at a 24-hour chart of bundle bunds. the yields moved up but nothing extraordinary. pretty much the impact that we've seen on europe and china continues to be aimed more in the direction of china. bob's numbers are right. it's hard to assess what's going on in markets that have so many restrictions on them and how many are trading. let's look at ten-years going back to october 1st of last year. and you can see really the pattern remains the same. we're still in the upper echelons. we the euro versus the dollar once again, we gave up handles there but if you open the chart up to june, we haven't at least up to this point had that close under 110. for that matter the other way above 1.15 which the are boundaries most technicians think to pay attent

let's go over to the cme group and check in with rick santelli. >> good morning. camp. of the week. charles, thanks for taking the time. >> hey, rec. >> all right. you know i read your research. your notes faithfully. this morning the one thing i totally agreed on and i'd like you to dig down into it. we've seen some rather aggressive inflows into bond etfs and mutual funds. tell me. >> well, there has been a lot in the last month-and-a-half activity going into bond etf and bond mutual funds and there has been money coming out of equities. people are nervous, scared. the u.s. economy is really not growing. the economic index shows no growth. it was up 4.5% last year. people are putting money into bond funds. we are seeing bond prices going up. the more money the higher bond prices go we are seeing money into high yield believe it or not. >> so if i think about that should the fed and stanley fisher prevail and a snuging up in september? i would think bond funds might have a bit of a roller coaster ride at these levels. your thoughts? >> yes. and there is only one reason

. >> joining our closing bell exchange, we welcome james liew and peter costa and rick santelli. >> i think it's a good thing. i like to see the internals earningswise. there will be days we'll be up significantly because positive earnings, days where we are down like today. apple, obviously people are anticipating possibly not making those numbers. the market and the stock reacted a little bit on the south side. this is good though. i do like this churning. i like to see volatility in the market. i like to see because of earnings not because of some external china or greece. >> james, what do you make of the weaker earnings? especially ibm? it does appear overseas concerns in china and emerging world are taking their toll on american companies? >> we need to keep in mind the u.s. stock market is back to where we started before all these macro economic risks began. it is heartening to see volatility is driven by fundamentals for companies. it is still the case u.s. earnings will be down on a year over year basis. we know why that is. that is because of the u.s. dollar strengthening an

rick santelli like weak for economic data but plenty when it comes to the economy from these big multicap earnings and what's happening in commodities. >> absolutely. anybody who wants to know what happens usually when commodities have big down turns, go look at what happened in 2007 and 2008 with the crb index. what we are carrying along is all the debt. it will make a difference ultimately. i like the way the big story going full surge, in my opinion, giving us a fairly honest glimpse, some say walking it back, but here is the way i look at it. that's where you are going to hear the squawking first or big institutions. they are not altruistic, they are in the game to make money. they've seen the central planning. they know it can't last forever. squawking is also a very good indicator as to the dynamics. >> stay exactly where you are. let's pick up that point. one of the last bulls on china. dalio telling clients there are no safe places to invest. kate kelly has that story. that is melodramatic. >> there was a lot of caution and context. nonetheless, surprise news that emerging from th