let's show you wti and brent crude. they're down significantly. once again, i guess we don't have the board here. there you go. brent crude down. off by 1.9. lower oil prices expected to weigh heavily on chevron's quarterly earnings. earlier this week chevron announced it's cutting 1500 jobs to reduce costs by $1 billion. meanwhile, exxonmobil is expected to weather the slide in crude due to diverse operations. the biggest listed oil company reaps higher profits from making fuels and chemicals when oil and gas prices are low. exxonmobil has not announced layoffs. joining us from denver is michael sciala. thank you for joining us. what are your forecasts for the to two companies? >> i don't cover either directly. i think that exxon is better positioned and both are better positioned than the companies i cover. my companies are you are a upstream u.s. companies. they don't have the benefit of refining margins to insulate the low oil prices. they've been suffering with the low ill prices. >> big oil is a favorite dividend play. there is concern that

probably bring in the wti prices toward 50 levels. brent probably to the levels around 55. >> wow toward 50 then. we get an iran deal but how quickly can iran actually get their oil back to the markets? i know there's a big debate around that because some people say they have 30 40, 50 million barrels in their tankers and they're floating tankers. if we get a deal they can just sail and sail. but is that really the reality? >> probably but i do remember the discussion of the lybian come back some years ago. how fast could they increase their production at that time. it's very much about the perceptions and the reality and i think that the reality might be that iran comes sooner rather than later and with very aggressive pricing. trying to get the market share to saudi arabia and other countries so we might see this effect already over the next couple of months although the real come back of the production might take years rather than months. >> isn't it strange, though that we're seeing such a volatile drop in oil prices during what i

brent and wti down 10% over the last month and down 71 for west texas and 25 cents for ice brent crude. mandy? >> let's take a look at the stock markets once again. dow, s&p and nasdaq have certainly slashed their losses but we're still sitting in the red just ever so slightly after being down significantly more at the beginning. day. in fact the dow and the s&p 2 move into negative territory for the year so far. james lew of jpmorgan funds and joseph kwind lan join us now. thank you so much for your time. i feel like we're walking in circles, trading in a fairly narrow range and back to where we were. s&p and dow once again in negative territory for the years. james, what does the second half look like more than a little more than halfway through the years. >> get some resolution on issues like iran greece and china, of course, and with the resolution we can focus back on the earnings picture which has been relatively meager for u.s. stocks and with oil hopefully stabilizing a little bit, despite what's happening today and with the u.s. dollar hopefully stabilizing. had a that means i

wti currently $51 a barrel. i've been speaking to oil experts today. they wouldn't be surprised if this adds to the sentiment sending oil prices lower. we're already well oversupplied by the tune of 2.5 million barrels a day. u.s. has great demands via shale. russia has tremendous amounts. saudi has record levels as well. the world doesn't need the ex ra iranian oil. it will take a long while and investment. they have a floating storage between 25 million and 40 million barrels. >> obviously the iran deal is booing the confidence that the markets have. that in itself was coming on the heels of greece bailout deal announced earlier this week. that's certainly had a positive impact to say the least. no? >> sure. this is extraordinary. you wait for an international deal to be signed. you get two at once in 48 hours. very interesting. the greek deal is tenuous. this is a bailout process. there's a load of hoops the greek government need to go through. don't forget they voted over a week ago to turn down creditor terms. germany, imf, ebc got the terms harde

. >> i want to get to the major reversal we saw in wti and brent today. that the notion that that iranian oil is going to stay off the market for now at least? >> i think there had been anticipation -- if you just look at the headlines for the last week you would think we're not in a one-year overtime with iran deal, that this was a done phenomenon. and everyone was starting to think about a million barrels coming back. now that we've rolled at least to the end of the week i think people are starting to get a little more skeptical. because it was seen as a done deal. >> oh, i see. okay. so in terms of your prediction of a 15% decline from here. >> well, that is based on if there was a deal. we think that basically the fundamentals of the market, what we have seen is improving demand, a strongly improving demand environment. but the question is now if you want to get to 75 like the saudis are talking about you need to have a supply response. so what we're waiting to see is does u.s. production really start to roll on the back half of the year. do smvt opec

you have wti going below $50 per barrel. have proved pretty resilient, haven't they? manus: absolutely. if the commodities continue will the fed stick to its 2015 rate hike guidance? it is a fairly straightforward question. does it impact the market at all? we will wait and see if physical will beat fiat currency. tim, great to have you in the hot seat. to an investment manager, what does it mean to you? how do you interpret it? >> it is not surprising that you have all the commodities going down in one go. it is largely because the expansion of monetary policies we have seen, particularly from the fed. breaking it down to the individual names -- it has always been saudi arabia's goal to put the squeeze on individual producers. you never saw any large-scale fallout, in terms of u.s. shale players. until we see that fallout or consolidation in the u.s. market, i think there will be onward -- ongoing downward pressure on the oil price. manus: we have inflation in the u.k. on the back of our wages. the fed is not going to want

we did see a bit of a bounce in wti yesterday taking back more of those gains. in fact in today's session. what we heard today the petroleum institute said stocks fell by 1.9 billion barrels a day -- million barrels a day last week. it was expected to be smaller than that. opec produces 3 million barrels a day more than demand in q2. when you realize supply still the crucial issue here right now. spot gold seeing a bit of consolidation. still just below that $1100 level. carolyn, back to you. >>> julia, we need to talk about twitter because twitter shares plunged after the company's founder called its performance unacceptable. julia borsen has all the details. >>> a roller coaster ride for twitter in after hours trading. first the stock traded higher on top and bot tomorrow lines results. enks of 7 cents per share were better than expected. revenue grew on 61% on higher engagement and ad rates. they ended the quarter with 304 million users. including the sms fast followers, users usually in emerging markets. the company ended with 316 million users. it was cfo a

. >> this is a choice of wti, correct? i'm asking because i'm wondering what you think the spread is going to be. that's been key to this trade. refiners have been the winning part of the sector. >> refiners will probably still do well in terms of wti's going to be much weaker because that production keeps coming on. what is saudi arabia going to do with iran? are they going to cut back or simply do what they've done and ram'll p up production? a lot of people say they don't have enough spare production but they have enough to push these prices down. >> guy adami. mpc reports next week. that's in the refining class. >> and you've got valero and tesoro coming up in a week week, and a half. tesoro closed slightly higher. i'm in the b.k. camp. i think tim would agree. i think refiners are still the place to be. gas demand has not gone down, believe it or not. and actually gas prices are rising while crude oil prices are going down. they seem to be in the perfect storm of things going in their favor. the refiners you stay with

we are currently above $50 a barrel, but the wti did tip below 54 the first time since march. you can see it is down by 1.7%, and all of this is weighing on index, heavily weighted towards gold, but more important, it is at a 13-year low, so you are seeing declined in commodities. the s&p 500 is still shrugging that off, and that is at an all time high. the nasdaq also making a personal best, 5221. and let's take a look at the euro, with all of the headlines going on in greece. this is all about monetary policy. it was said that the fed should raise interest rate this year, and the euro little changed on the day, but it is at 1.0836. -- let's right, tips take a look at some of the headlines crossing the bloomberg terminal. john kerry is preparing for a news conference, and the cuban flag was unfurled, and it was raised above the embassy in washington today. of course, we will bring you those headlines as soon as they cross. scarlet, this is one of those things where there is concern about human rights in cuba and about guantanamo bay, which the cuban government wants to have c

of declines for the wti.here is the continuing prospect of a glut in the oil market especially with iran coming back online. if you look at brent crude, it is set for its longest run of weekly declines since january. gold prices bear mentioning today. the plunge and gold rises is down about 1.17%. this is after china boosted its reserves. analysts who follow the gold market survey expect china to boost those reserves by a lot more. one analyst said by as much as three times what they actually boosted it. that's why use of a big drop-off in gold prices. . brendan: thank you. don't completely understand google but we'll get back to it. chinese markets continue their recovery as the government announces the existence of a cannon. the shanghai composite closed up by 3.50%. is samsungry prevailed in one of the most dramatic pickups and shareholders approved a merger of two samsung units. filed this report from hong kong. >> this was the common nation of six weeks of the very public battle between the inner activis

wti dipping below zero -- 50 bucks and now up. a 2002 low. a lot to discuss. relief for greece.ter of time before grexit is on the agendas? according to our survey, most economists think so. after the break. ♪ jonathan: good morning and welcome to bloomberg tv. i am jonathan ferro. things may have turned for greece after getting in eu loan and met the ecb payment. according to a bloomberg survey of economists more than 70% believe grexit will be back on the agenda by the end of 2016. let's speak to niklos. i love greece and the greek people and people are tired of the grexit. we'll be talking about it for a while. is that what you think? nikos: most economists believe that greece is not out of the woods yet. after five years and 2 bail out and 40 billion euros in emergency commitments from the euro area and international monetary fund, there is still no way out of the -- for the greek economy. most economists believe we may see a grexit as soon as next year. economists doubt whether the new bail out package, that greece negotiated worth 80 billion euros, is big enough to leave g

soft today as you can see down the best part of 2% for both brent and wti. 51.2 for wti. 56.8 for brent. the reason of course today and yesterday relates to iran and in the last half an hour world powers confirmed a historic nuclear deal with iran. sanctions will be lifted on the country in return for curbing it's nuclear program. the eu policy chief said it offered a sign of hope for the world. >> it is a decision that can open the way to a new chapter in international relations and show that diplomacy, coordination corporation can overcome decades of tensions and confrontations. >> that sentiment was echoed by iran's foreign minister. listen in. >> today could have been the end of hope on this issue but now we are starting a new chapter of hope. and let's build on that. >> the economic policy analyst at the american enterprise institute still with us here on worldwide exchange. historic day really james. how big of a deal -- how big of a win is this nuclear deal for president obama? >> well certainly the president has considered this to be a major piece of his legacy. is this a presid

wti crude by 51.14. they'll get on to the market.the meantime president obama will make a statement on this deal from the white house. it's 7:00 eastern tile and of course we will bring that to you live when it happens. >> we have a special treat today. you've already seen him. one helping. the first course. probably even an appetizer but here with a special treat, john harwood. we had that written before. >> stuff just changes in live television all the time. >> and he actual hily recently sat down with ohio governor john casik. i think we have known he was going to run for awhile. >> how long was he on fox? he sat in for o'reilly. >> he had his own show as well. during the first decade of this century he had served in congress for about 20 years. chaired the budget committee and negotiated the balance budget deal with president clinton during the 1990s. he also worked for lehman brothers. that's a mixed bag. although john kasich wasn't steering that ship. he ran a two-person office and got back into politics as the governor of ohio

in march, wti phil to a six-year low.seen a slight recovery, until we hit the most recent bear market late last week. there are three primary factors driving business. the first is u.s. shale producers -- they are getting more efficient. rigsboosted the number of drilling for oil last week by 21%. remains here the highest in 30 or 40 years, and that hasn't really changed despite this low-price environment. u.s. supplies are about 100 million barrels above. the second factor is opec. we saw them shift their strategy from focusing on prices to defending market share, leaving members like saudi arabia and iraq producing record levels to maintain their customers, especially big customers in asia like china, japan, south korea, and india. is the nuclearr deal with iran. if sections are lifted, they have been explicit about plans to boost production of oil. even if that doesn't hit the year, until late next that is really a factor that is weighing on prices. fell to theitions lowest in two years. there is a lot of bearish senti

atther or not we can see wti 70 dollars u.s. looks unlikely.and is not there at the current levels we were expecting. but it is not only oil, is it? it is all commodities across the board. do you see any discernible trends investing in australia? >> that is the interesting question. it is not just one commodity or a group. normally, you can point to metals or oil and separate everything. it is sustained pressure across everything. even agribusiness. it means in australia, you start asking questions. we concentrate on iron ore. that brings in steel. copper is an interesting one. it is a clear understanding of the health of the structure, growth, actual movement. all of that shows you there is downward pressure. that puts australia and nations in asia in commodities under interesting pressure. it would suggest we are likely to see some asian nations underperforming. the rest of the world has a disconnect between china-u.s. growth coming under pressure with a fed liftoff. china seen pressure around its own markets. all of that is something we watc

wti crude, $3 away from its european low.ot of data coming out this week including inventory numbers. that, of course could change the story. the momentum to the downside. whether that will be something janet yellen references it was a lower oil price that was seen as one of the reasons that jeanette yelin was going to delay their hike because of the impact it has on inflation, and now that we're seeing oil prices once again moving lower, it seems that we're not going see an increase in inflation any time soon. >> no but labor costs, that is the higher component of cpi. i believe 6 07 is what it accounts for in commodity prices. yes, they do have a bearing on inflation but not as high of waiting azoulay bore costs. also i would point out you saw that specifically in yesterday's training session. the dollar was lower, yet commodity prices were lower so we didn't have that inverse relationship we usually have, which is quite interesting. . we're back to seeing that today. >> it goes to show it's a confluence of factors being --

wti crude is back above $53 barrel, again 1.5%. we'll keep an eye on that as we go into the close in 90 minutes time but let's get to dominic chu for a quick market flash. dom? >> oil not the only thing in the green. shares of amazon.com up 2%. they hit a record high and the shares have rocketed 31% from the same time a year ago. the company is getting ready for its prime day, the massive sale for its prime members. that will happen on july 15th. tomorrow amazon was upgraded to a buy from a neutral at ubs and the price target raised from 550 from 450. among the reasons, subscriber growth. >> the dow is in fact less than 2% shy of its all-time intraday high. the s&p 500 and the nasdaq are less than 1.5% away from their intraday record highs. the dow is currently holding above 18,000 with a gain of .3 of a percent, tie. >> the nation's largest pension fund missing its mark calpers following short of its annual return target because of a slowdown in the market and weak private equity returns in its funds. the $300 billion pension gian

money managedt inflows were up in the two weeks in july, so while you had this wti, brentin oil, wasferent story. joe: they are unequivocal. may bullish, but now everything is talked out. well, remember when california was in a higher financial straits? they were racing to close a $41 billion deficit. people,nn beck, of all sounded out on the idea. glenn: there is only one man who can save california. barney frank to the rescue. currentturns out the governor, jerry brown, may be the one to have come to the rescue. their bond rating was raised to their highest level in 14 years by s&p, and joining us now from irvine, california, building ,ide from an economics blog calculated risk, and they are paying down deficit loans. bill, how did they do it? bill: when we talked, i told you that was going to happen. realize where the state gets their money from. in california, it is very dependent on income taxes as property taxes are so low, where is another's date like texas has no income tax but high property taxes. -- whereas another state like texas has no income tax but high property taxes.

let's take a look at commodities because yesterday we saw wti break below $50. a level it has not been below for a couple of months now. gold also selling off. in today's trade a bit of a relief rally here. at least in gold. up about 1% or $11. brent crude hugging the flat line and a similar story for wti crude still trading below $50 barrel. richard jeffrey, chief investment officer still with us here on worldwide exchange. it's interesting richard, it seems like every asset class so far in 2015 has been a victim to these massive swings. you remember the currency market earlier this year thinking the euro would trade in parity with the dollar and of course the bond market in june where we saw the applied volatility here in europe and the bond market hit a two year high. it now seems hike it's the commodity markets turn. >> it does. i think what you're seeing is a number of factors. the key thing is growth in a crucial area of the world is slowing down and that's asia and they're finding it's much tougher into western economies. even though we have better moment

wti is trading around $60 a barrel.$70 a barrel. >> we think about where's the down side risk? it has to come from producer selling. we need to see distress in the industry. once you get distressed, you're going to get the corporate selling. i want to emphasize we've seen down side risk in the last week or so. >> you're bearish natural gas, although you see it moving up from here. you'll still be under the forward curve with your price targets in the low to mid $3 range? >> we just recently took down our price targets on natural gas. what was driving that was supply in north america, similar to what we've seen in oil has surprise to the upside. productivity gains and so forth. demand equally a surprise to the down side particularly from industrial demand, one of that has to do with the stronger dollar. but also while we do see an increase driven by what we make are the three key drivers next year. one export demand. to mexico lng, coal plant retirement and a somewhat improvement in the industrial demand outlook. >> jeff

and when the oil does come online, will we see another price dip in wti?s a lot of interest also in oil companies, wanting to do business in iran. we heard at the last opec meeting from shell, total, bp saying they want to get into the game over there. and think about the reserves that the country has. about 10% of the world's reserves are in that country. it's just not exporting a lot right now so when the sanctions are lifted, this is something to think about. as we move forward. with oil prices. i do also want to mention iran is the second largest producer of natural gas reserves as well. so there's a lot of energy impact here. back to you. >> all right. jackie de angelis at the nymex, perhaps that's why we're seeing energy the best overall performing sector today. >>> checking the broader markets, we're seeing all major averages trading into the positive territory. the nasdaq trading up by .5%. the dow seeing its first four-day winning streak since may for the s&p. swree to go back to january so certainly something we're keeping our eye on as s&p is ho

that's a great telling point because we should have a nice lid at $58 on wti. >> check out the live showorrow at 1:00 p.m. see you then, scott. >>> coming up, let's make a deal. we're talking to martin franklin of jarden who is behind today's big billion-dollar deal. plus joe terranova goes all in adding five names to his portfolio. so what did he buy? the big reveal is coming up straight ahead. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. 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.

wti crude, the one that we've been watching, below $50 a barrel at $48.64. a bit of a bounce today by 19 cents, but nothing compared to what we saw two weeks back when it was above 60. gold once again, down 0.6%. let's discuss more the outlook for commodities, david wilson from citi here to tell us exactly where gold prices are headed. that's what we want to know, david. there are so many factors at this point that seem to be working against gold fed policy, the lack of inflation and the stronger dollar. which of these do you think is the most important factor in driving gold prices going forward? >> i think it's a combination of those plus the removal of the last leg of the risk cushion that had been -- the greek situation, that was removed relatively recently. you also have the pboc announcing its gold holdings that were some 2,000 tons less than the market thought. suddenly the markets looked to china with extra tons of gold sitting around in china, probably not in -- it's that combination of factors that push gold down. but i think the key change is the

wti was down nearly 8%. >> kent moore executive chair of money mat symposium. shocking decline. >> probable why it worst is over for a couple of reasons. the decline we experienced today is all out of measure to what it is that the market is telling us. i think this is more in terms of a psychological collapse than anything else. it is clear, however, that crude oil is going to take some time to recover from this triple whammy. of the three, the iranian situation is probably the least serious. if we had an agreement tomorrow there won't be an appreciable iranian additional volume in the market for 18 months. that is a perception thing. >> we are still pumping in the united states. we added another rig count last week. first time since december. or is it demand? should we be more concerned about the issues facing china and other countries right now? >> if we take a look at the overall demand situation, the demand itself in very large measure across the board in energy is moving to asia. it will continue to do that through 2035. my concern is not whether china wi

right now at wti crude right at 50.07 and brent crude trading at $56.66.ouisa. >> now as mentioned ibm second quarter profits beating forecasts but revenues fell by more than 13%. they dropped by more than 13 straight quarters. giving it up to the strong dollar but even without that revenue would have still dropped by more than a percent. they're growing but also reported a year over year decline in all of the major lines. ibm falling by 5% or so in after hours trade. there was a time when imb was darling. now it is kind of a -- it's an interesting story with imb. the revenues have been offering. 13 straight quarters in a rowand they need to keep renewing themselves. they're trying. new offerings, new businesses. >> in the meantime new tech names are stealing the spotlight. facebook amazon google all out performing and the nasdaq already up 6%. a massive move to the upside and narrow leadership at the top. it's the big tech names driving the nasdaq 100 higher. it will be interesting to see if these companies can beat expectations after google beat expectat

live at the nymex. >> hi good afternoon, tyler. $47.12 is where wti settled.en briefly dipped under $47 a barrel. what does this tell you going into the weekend? selling pressure was on. we couldn't really hold on to the gains we saw earlier in the week. a couple of things concerning oil traders today. first one would be baker hughes reporting oil rigs went up again. we saw an addition of five oil rigs. we need to be seeing this go in the other direction, they told me even though oil rigs are down more than 50% year on year. this is not necessarily good news. also two nuggets we got from exxon and chevron, one exxon is conserving cash. that's a negative sign in terms of what the company things will happen to oil prices. chevron, the charges were triggered by a downward revision of its oil price. this is negative news going into the weekend. back to you. >> jackie deangelis, thank you. >>> time for "trading nation." utility stocks are soaring for sixth straight day and a two-month high right now. rich ross is looking at the charts gina sanchez is on the fundame

ben is over and melbourne. 43.97 is the price for wti. >> you are quite right. it is all about the glut that there is too much oil. the demand is about the glut. you do not have to look too far to find out where that oil is coming from. in the u.s. they are producing at the highest rate in three decades and they are forecast for another gain and supplies and that will keep supplies almost 100 billion barrels above the five-year average. if you look at the middle east and opec, they are at a record this month. opec is continuing to pump above its quota there did there is the great unknown of a run. -- of iran. some forecasters say it will be a gradual gain in supply but if you look at past this ructions and use libya and venezuela as a guide, looks as though the iranian oil might hit the market quicker than anticipated. oilave west texas and brent in a bear market at the moment at this point -- point doesn't look like there will be any relief for prices. rishaad: we will turn our attention now to some of the other stories we have been watching for you today and m

we are currently above $50 a barrel, but the wti did tip below 54 the first time

wti at 5271 but big volatile trade in yesterday's trading session. first down and then up on the day. i want to bring you some comments from the romaniranian president. iran won't be called a world threat anymore. it is an achievement. let's get out to ali in teheran. >> that's right. he sent word of going through the people and went out on to the streets and as the word of the deal spread and night fell there were euphoric scenes across the city. people were flashing victory signs saying that they loved rohani. they're really happy and in these spontaneous celebrations in the streets they were welcoming america. people were shouting we love obama. these scenes are unheard of in iran and the wider community in iran is now ready for visitors coming to iran. they want to see american tourist having coming to iran. iran may not be the easiest place to navigate and work in the world but if the doors are owe you'll see a change in this country. back to you guys. >> thank you for that. now how much crude oil does iran have stored at sea? windward is a mari

guest: we are short a call option on wti prices.0 you see shale production come back and move back into shale -- and capex move back into shale. anna: let's talk about some other topical moves in the market. we are asking questions on twitter as to whether a government and china should be trying to influence the direction of the chinese stock market, what are your thoughts? guest: i am not sure whether they should. whether they will or not might be more important. i think they will. anna: ucb's actions as designed to limit the falls on the stock market -- you see these actions as designed to limit the falls on the stock market? guest: they have been very proactive on the margin side of things lending, reserve requirements. the next leg they have to get into is on the fiscal side of things. all the monetary stimulus liquidity is going into the bank accounts and the stock market. you need to get into the real economy. anna: asking on twitter, what effect this will have on other stock markets. if we saw any other market losing 2.8 tril

wti, $49.20 a barrel. brent oil falling 1.7% as well. today, the global head of commodity research at macquarie group says that brent could fall to $50 a barrel, from 56 right now. >> there in mind, we are still and we are still talking about a surplus of 2 million there is a day. we are still building inventory and will continue to for the next nine months. alix: that is a pretty bold call, $50 brent. we have new data here in the u.s. about what is happening in the inventory market, inventory build up 2.5 million barrel build. distillate continues to build. we have been seeing this for weeks. this doesn't and crude imports are higher. record high refinery utilization. they are working hard but it is not making a difference. there is still a glut in crude and now distillate, and that is a dangerous place for the crude market to be. scarlet: goldman sachs came up with a bearish call on crude oil and so did morgan's hanley. what did they say? alix: they say the downturn could be worse than 1986. they are looking for four things to prop up

if you look at oil and gold, we're seeing this third straight weekly for wti on concern about an oiland as we get iran's supply online. gold is falling at a five-year low. and the bloomberg commodity index for a broad basket and it is lower. we have seen this big selloff in commodities not just today but in recent days. the drop in gold is especially notable. mark: the greek prime minister has reshuffled his cabinet after the parliament us approval of austerity measures that prompted dissent in his syriza party. among those replaced, the energy minister. we will bring you more details as soon as they come in. let's move on to top sports stories crossing the terminal at this hour. a major reversal for japan on .ts mainstay him the plans are being redone because of out of control costs. the venue will not be finished in time for the rug a world cup as a result. the government has come under growing prison -- criticism as the cost skyrocketed to $2 billion. nearly twice as much as the original plan. construction had been scheduled to begin in october. disney's abc is hoping your saturda

the bti -- wti back in the bear market. we are in a commodity rout. you the stocks to watch this morning. -- let's bring you the stocks to watch this morning. kirilenko that collapse -- caroline: that collapse lit -- turnaround the business. you heard him say it is going to be tough six months ahead. the stock fell to a 13 year low this week. earnings beat estimates today. the company says it will maintain its dividend. that is why we are this stock rallying this morning. more pain for the commodities route. the german chemical maker. the slump in the oil market passes on those lower prices to customers. that stock down 3%. pearson's earnings decline. it missed estimates. demand for textbooks continue to shrink. you are enrolled in college. it is sold the group to nikkei the japanese publisher for 844 million pounds. the drought dressing today is a little more reaction. jonathan: i was sitting at my terminal this morning, digging through the press release from anglo american, lab books agreed to buy coral. let's bring in paul jarvis to talk about it.

werepstream realizations down, both gas and oil domestically and internationally, driven by weak wti. support from the downstream side. betteril leads to refining margins given the u.s. benchmarks >>. probably of year over year by 20%. to offsett be enough the negative impact from the upstream. alix: exxon is different from the other companies we have seen reporting. they can cover the dividend. they have the free cash flow. >> they do. i think the dividend -- others have a spot here. i have been waiting here in june -- the next thing i am looking to it is for some of the m&a to have been the industry. it looks like the perfect time to start. some of the players have gotten insanely cheap. betty: -- alix: who would be the potential takeouts -- >> i am with you for the kinds of things we saw in the late 1990's. --n texaco got bought by pp bp. there may be a little too much baggage for something like that. someone who has tremendous acreage, they're really under the gun and their stock price is , it is a very good buy. very cheap. eog resources coming to $75 per share would present for

we could see 46 in wti. we did not get there. pretty incredible move. looking at the bloomberg commodity index, also well off the lows of the session. by 1.5% still down because of a couple commodities that are also declining. up, i want to take a look at iron ore. in a bear market. and wentelow $50 a ton under the radar. --t's a kind of ugly chart australia has been pumping so much iron ore and sending it to exports. you have inventory starting to build in china. that means the demand is not really there. we could see 40 this year as well. from the current 50. scarlet: what about nickel? is that a china story? alix: it is a global growth story. nickel got completely destroyed. the nickel market was actually very long. you have a long market and a sellout accelerates the downside. is of global production currently underwater right now on a cash cost basis. the selloff cannot continue that much longer because producers cannot afford to keep pumping and we did see the nickel and a six-year low. pretty ugly. scarlet: i want to end on a decent note. higher.

we are down 65 cents on wti. the session low, 4720 it was mentioned earlier, we are not very far off. just about $5 off the year-to-date lows. trade herbs are thinking we will get back to those levels. what are the concerns right now? it's coin. it's the dollar. >> that brings many eto'o the greek count numbers that came out on friday. traders were stunned. analysts alike, we saw 21 ricks coming back online t. supply question at this point is what is going to hap to pricing. what will have to happen to prizeing to get u.s. producers to back off in a meaningful way. of course, that itself the larger question. i do want to talk about gas price, the lundberg survey came out this morning. the national average 282. >> that penny decreases over the last two weeks, of course as i know and a lot of people tell me on twitter, they are getting hurt in california. >> that is the state average is the highest 413. lundberg is saying the supply problems are working themselves out. people in california should see some relief so

wti and brent 53.2 for wti. 59.0 for brent. >> chinese stocks bouncing back for a second day proppedby determined intervention from china's central bank. it follows a major three week sell off which saw the shanghai composite sell almost a third of the value. it could sound an alarm over the country's plan to liberalize markets and open up to foreign investment. now the economist tweeted this picture describing china's response to the stock declines as panicked. you have to wonder what of course these last two days of gains means for the market going forward. just want to point out this is further evidence of a slow down in the world's second largest economy. new car sales fell in june. the first monthly fall in two years. prompting the country's auto association to slash it's forecast for 2015 sales in half. now let's get more on the trade in asia. joining us live from singapore. hi adam. >> hi seema, great to see you. it was a very encouraging session this friday. we saw china lead the way forward with the exception of japan as you can see up there. just ending in negative territor

wti and breadth makes up 19%. -- brent makes up 19%.rlet: what are you seeing in terms of fund growth? how many commodity related etf's are there? >> 150 at this point. there's about 10 that seem to get the most -- using the same thing we've been seeing all your ear, a slow bleed out of gold. in oil and that is the interesting story. for a year now, we've seen 4 billion go into oil etf's. if you did it between march and may, you want. if you did not, you lost it depends on when you timed it. your system will trade idea to call the bottom. -- an irresistible trade to call the bottom. alix: you saw gains all across the board. play,is a shale oil rich which will lead to even more production. therefore, more oversupply and lower oil prices. no one understands how shale works in this environment. when people are treating oil or commodity related etf scum are they doing it as the other trade with the dollar or looking at commodities specifically? >> we don't know. we see the prince, we don't know what they're doing with it. -- you can short a

when you look at wti for the past three weeks straight, it has fallen to $57 per barrel.thank you so much. shareholders gave the green might friday to a merger between two samsung affiliates that will help the chairman take control of the conglomerate and give it to his son. it was opposed by u.s. activist elliott and associates. shelly: this was the culmination of six weeks of a very public battle between billionaire activist investor paul elliott singer and samsung. the overwhelming approval of the merger underscored the resilience of the south korea corporate dynasty and boosted the country plus track record of repelling foreign influence. nearly 70% of shareholders voted in favor of the all stock offer for samsung tnt which some argued was undervalued and not fair. the results pave the way for the founding family to tighten its grip on their business empire. let's turnhe u.s., to banks as goldman sachs made hundreds of partners rich when i went public in 1999. lloyd blankfein is now a billionaire. $1.1et worth has surged to billion as the shares jumped nearly 300% sin

if i look at wti and brent trading in the 50's and you color in a whole host of dynamics to tell me crudeing higher, how much higher and how quickly? gary: the financial length in the market is very low. it is probably down to 380 million barrels. everyone thought we were going to run out of storage capacity. all the investment banks said we were going to 20. we went to 60. now, they are rolling out the same story, that we are going to 30. it ain't going to happen. i just think people underestimate the fact that the fundamentals will directly tighten and the prices are going to move higher. i think the trade is generally being long oil. price forecasting is not about what is in the market today. price forecasting is what is going to be worldwide 30, 60, 90 days. people worry about product overhang. the underappreciated factor that i mentioned earlier about that 40 million to 45 million barrels a day of non-opec non-shale that is slowly eroding. and the geopolitical risk. don't forget that. jon: i won't forget that. my colleague at bloomberg news also pointed out that people come to you an

prices have come back down to the low 50's on wti in anticipation of the deal. what you see is a normal, orderly market reaction. pimm: talk about gunboat diplomacy. what does that mean in the context of world economies such as greece? that debtorsnotion are forced to accept conditions by gunboats standing outside their waters. it has happened many times and has often failed because the ownership of the reforms are not with those that have to implement it. i'm afraid that is what is happening to greece now. what they agree to over the weekend faces enormous challenges when it comes to implementation. not only on economic and financial issues, but situational aspects, and of course, political and social ones. it is a hard slog when a certain adjustment is imposed on you and you do not own the implementation. was with uskrugman yesterday outlining these concerns, the implementation, what it means for greece down the road. let me play part of that conversation and what he says about the debt problems for greece. >> as long as the debt has not been written down in s

wti crude at $48 right now. spot gold got noting a bid given the high uncertainty around china. why hasn't gold got an bid? a big question this month. spot gold at 1082. down just about $5. the weakening data out of china not helping the bulls around copper. a down day for corps. down about 0.5%. >> we have a lot of cool stuff coming up on the show. making the taste buds pop. find out why popcorn could be set to take over traditional snax. also, we're going to talk about google. here's why. google glass makes a comeback. we reveal how it could be making an appearance in your work place. >>> and soul cycle files for an ipo. has it got the stam thina to go distance? >>> and you're looking at live pictures of the international olympic committee preparing to vote on the 2022 winter games. china and kazakhstan are in the running. and beijing is expected to come out as the favorite. the former soviet union state is trailing behind a little bit. but keep in mind, beijing has already hosted the summer games back in 2008. actually, four european cities have pulled out for political or fi

wti crude getting a little bit of a rebound. still hovering in the $48 a barrel region.reaking news on home sales. rick? >> reporter: once again, sometimes you get good numbers. sometimes you get not so good numbers. this is the latter and it's not good by a factor of down 8.6%. it would put it at par with some of the best levels since early '08. takes a reversal goes down under 500,000. it's 482,000. it's the worst number of the year. it takes you to a comp of november of last year and last month which would have been the best number since '08 was downgraded to 517,000. now let's go to dianna. this number is a surprise. what do you see in your crystal ball? >> reporter: this this is not good rick. we were expecting a slight bump up but not only do you have a big jump down but also a pretty big downward revision to the may numbers. like to remind folks this number is based on signed carrots in june. those are folks out signing contracts and shopping in june. now, you remember at the beginning of may that's when mortgage rates pop up but people jumped off the fence on exi

take a look at wti crude down to levels we haven't seen since mid april.hat long ago but oil used to be the big story in this market if you recall not that long ago, it was stable but it seems to be moving lower of late, and you can see down over 4%. >> it's a double whamny because the dollar is stronger. >> and is there economic dislocation because of the stock market decline in china. that might not be the place. retail participation is important but people have most of their savings in banks but that seems to be playing out through this commodity. >> energy stocks that are falling the worst at the open airlines are slightly higher. >> i was going to bring up one because the kraft heinz deal closed and starts to trade today. the first day of trading for the new combined company. warren buffett is on the board. 3g has three seats on the board. this was the deal that closed back in march, and -- >> it just closed last week. closed on thursday. >> and so this will be a chance for investors to get back into heinz which has been private. a lot of folks just l

august wti will go off the board next tuesday. that creates a little volatility.ant to mention the fact that we're watching gas prices. $2.76. 4 cents lower than a couple of months ago. what's interesting about the rest of the complex, you have heating oil prices a little bit lower, strong strength in the gasoline today. usually crude and arbob are moving together. today it's in opposite direction. probably the stronger dollar pushing crude into negative territory. >> thanks very much. pressure on the energy stocks as well. up next as legal charges mount for some of the big banks reporting, jim stewart of the new york times on why we so rarely see a conviction. and later, the united cfo, and fischer set to speak at the chamber of commerce. he'll be talking at the top of the hour. the dow down 64 points. "squawk on the street" will be back in a minute. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the spee

wti is really falling. are about 35 minutes before the close oot the nye my next. >>> brian kelly joins us now by phone. there is a lot to digest right now. you put out a trade last week you've been long euros for a while. are you still long and why is that the trade now? that seems to be the contrarian trade. >> yes i am still long the euro. for me if you look at just what's happening, the big trades in the market let alone the economics and fundamentals of it everybody has had this trade on whether long european stocks short the euro betting the ecb will come out with more qe and it will will be just like what happened here in the u.s. but as greece has come along and the risk has risen you have all the european stocks falling. when that happens all these funds have to unwind their short positions. my long euro call is based on a short covering rally. you not only have big global macro players but you also have a lot of these leveraged etfs hedg those are also hedged. if people pull money out of those fun

wti crude over the nymex also turning around at the close here finishing up 1% today.o to the close, financials seem to see buying here. >> it's been a broad-based rally what we saw 11:30, when the european marks close, stocks moved higher suggesting european sellers here. did you have the news about the iran talks, but no extension. if there is any problem, that suggests maybe we won't see any additional oil on the market. energy leads. interestingly enough defensive sectors, utilities and health care are the leaders. all of this helping to bring buyers in ahead of what should be a busy day tomorrow. >> we'll find out what happens. wait till you see the diamond kevin o'leary has on the second hour of "closing bell" with kelly evans. see you tomorrow. >> welcome back. the biggest reversal since 2011. strong gains across consumer staples names like coke procter and gamble. another strong session for the s&p 500 up about 0.6%. 12 points 2081. nasdaq was in the red but did manage to close the other two. joining us we have michael santoli, kevin o'leary, welcome both. and

we've got wti moving higher after brent slipped. let's get more on what's going on there. >> oil up 65 cents today trading over that $48 mark. this isn't surprising after hitting a four-month low yesterday. overnight low, 46.68. very wide range. traders say they don't go down in a straight line. this is buying the dip menlttality and they are watching the report that will set us up for department of energy report tomorrow and traders expect a bill but range of that build is varying varying. they think we'll see this take another leg lower. >> thank you. ty? >> the big bank dividing congress and how it is not on wall street. some say u.s. business needs it. others say corporate welfare and american taxpayers standing behind $140 billion of loans and other credits. what's at stake. plus owning a home has been part of the american dream but is that dream over? 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 o

wti crude is also seeing a rebound to the tune of 1.5%. 5241 after it reentered bear market territory a couple of weeks ago. >> the greek government is doing everything possible to reach a deal with it's creditors. this after the prime minister applied for a three year loan in order to avoid a banking collapse. speaking with the greek president after his address to the european parliament he said he would submit proposals ahead of sunday's deadline. >> meanwhile, ncb board member says the euro system should not increase emergency lending to athens until a deal with creditors is reached. speaking earlier he criticized the greek government for the way it's running it's affairs. >> the greek government has not only walked out on the previous agreements but has been widely criticized as an unreliable negotiating partner a little over a week ago the assistance program finally came to an end and the greek government stopped hon norg it's payment obligations toward creditors such as the imf. central banks, although they do have the means have no mandate in my view to safe guard the solvency