tv Closing Bell CNBC July 13, 2015 3:00pm-5:01pm EDT
ing a streaming service. will it attract new customers or will it cannibalize their business? >> i'll look forward to listening to it on the radio on my drive home. thank you. see you at 5:00. welcome to the closing bell. i'm kelly evans at the new york stock exchange. >> that would make me bill griffeth. a deal in greece they have. it's not done by any means. stocks are rallying on this pending agreement between greece and its european competitors. we'll talk about what could potentially derail this deal. >> as energy prices fall what other companies could be making a move in this sector. >> this story grates me.
airlines are raking in money for the ancillary fees. details on which carriers are bringing in the most cash and where that money is going. >> it doesn't grate me that tch much. >> charge us airfare and leave the fees behind. >> one price for everything. i don't know. >> a la carte is nonsense. hundreds of stocks experiencing a self-correction. some reporting earnings this week as earnings season gets into full swing. >> what you guys are paying in california, i don't envy you that. let's get to the story on greece. bailout, deal and reaction from germany which is very important. our chief international correspondent, we are going to
refer to her as the athens bureau chief michelle caruso-cabrera. steve liesman moved to berlin. michelle, happy monday. >> it's an unwanted title. it's not a done deal yet. alexis tsipras back in athens today has to rally the parliament, bring them together and get them to pass a key number of reforms when it comes to pensions which will raise the contributions that the people in greece have to contribute to their retirement and raise the age more quickly than expected. there will be a hike in sales tax across the board on everything. that's the first proof of performance before you see the european finance ministers sit down on thursday to assess the situation, see if they are going to begin the deal process. ahead of that waiting to hear from the etb perhaps as early as
wednesday to decide whether there's been enough good efforts by the greeks to loosen up the cash out of the atms. there is a whole soul-searching going on here about what happened? alexis tsipras told us he would get a better deal within 24 maybe 48 hours after that big no vote. a week later we have a worse vote. i spoke with one protester and said what did he tell you? was he naive? was he dishonest? what happened here? >> i don't believe the government was necessarily dishonest. maybe they did believe they could back down and offer a better deal after their referendum, but that's not the point. the point is there isn't going to be a better deal. we have to accept that now. >> wow. there isn't going to be a better
deal and we have to accept that now. that would be a major turning point in the psyche of the greek people if it's believed that way across the population. >> compelling stuff there. thank you so much. how are germans reacting to this deal? >> we think it's going to pass here. a little bit of news we were able to a source told us the european central bank likely to consider the level of greek bank funding on thursday which picking up on what michelle said comes a day after greece expected to adopt reforms. despite the criticism, the german parliament is expected to approve this greek deal. it was crafted to get approval from the german people. they will be the largest creditors here. it's amid a lot of opposition to that.
german parliament hauled back from their summer vacations. there has been criticism here and throughout europe. some say merkel undermined european trust by being so hard lined with the greeks. the idea if greece did not agree to the reforms that they would be forced to leave the euro zone was seen as an extreme or excessive negotiating point. the reforms themselves concerned those are too extreme in the sense they could leave to social upheaval in greece or the fall of the tsipras government. merkel faced a domestic opposition to additional money. you can hear that from the man on street interviews we did. >> in german history there was a lot of wrong things and after the war we asked for help. >> we pay, we pay, we pay and they do nothing.
>> the greeks don't do enough to solve the situation. >> the bottom line here is if greece delivers on wednesday night, it seems the european central bank germany and europe in general will be able to deliver to greece. just two quick things many thanks to my crew dave grogan and my german producer here. i sent my resume to michelle to see if there is a position there for junior chief international correspondent. back to you. >> you are in good hands. michelle, there was talk that the hardliners were holding the line the way they were to try to force tsipras out of his job at some point. do you sense that he can keep his job after all this is said and done? >> he's going to keep his job. that's what the political analysts are telling us here. yes, there will be hardliners and defectors from the party and his coalition. it's not going to be enough to
offset all the opposition that is going to vote with alexis tsipras. there is a political consideration if he loses his official parliamentary majority. he's got to come up with some solution. there are a lot of unknowns. ultimately it's believed prime minister will sill be alexis tsipras no matter which route you go down. >> what is extraordinary here are now suggestions of draft proposals that germany and creditors have more say over greece going forward, over some of its budget proposals, over some key details and working of the economy. is that going to be tenable longer term for the greeks this oversight? >> i have to say, and i'm interested in michelle's take on this. it struck me like "the wizard of
oz" when dorothy said send me back home and he said get me the wicked witch of the west's broom. an impossible task. that stuff i think will be objectionable inside of greece. it's going to be very difficult. you have to understand the lead-up to this. there were tremendous amounts of mistrust. there was talk germany was ready to let greece go. they had enough. this is all about rebuilding trust and that $50 billion euro privatization pool is part of building that trust back. >> michelle? >> if you are asking me the same question it's always been something drove the greeks crazy. if you read even before this deal, you read an imf requirement, the memorandum of understanding, line by line by this date you will hire this
many people in the taxation office and install a certain software program and do this. today they wrote that the imf and all the creditors have to have access to the various buildings. under the tsipras government they weren't letting anybody in the building to do it. yes, very good question and remains to be seen if that's not going to be something that actually pushes this over the edge again. >> all right. >> i noticed this morning, friday is angela merkel's birthday. you wonder what she will be wishing for when she blows out the candles. will be interesting to see. >> thank you, guys. >> ouzo. >> we have jason trennert
author of "my side of the street." >> rick santelli in chicago with us today. prioritize. what matters most to you right now when you are trying to put money to work here? >> i think the greek deal creates a lot of drama, creates a lot of ink spilled over this. i don't think it's all that important for u.s. investors. ultimately what drives stock prices and earnings and interest rates, interest rates are backing up for good reasons. largely because economic growth will be better in the second half of the year. this makes for very compelling tv, but i'm not sure it's all that important. we've been watching bank credit default swap spreads in europe. they haven't blown out like they did in 2011/2012. the real question is whether
there would be any sort of contagion. it doesn't appear as if that was the case. >> may not be important for financial markets, but certainly important politically, revealing the dilemma at the heart of the euro zone. what does it mean for the euro and for europe sales which are still the biggest part of international sales? >> if greece doesn't want to be part of it stand on your own balance sheet. they weren't the only country and my guess is the politicians on the other side of the goldman table were all in the stream of knowledge as to what they were trying to accomplish. with regard to how it plays out, i think that germany is a great export economy with a currency in the form of the euro that is probably cheaper than if they were on the d-mark. didn't see the drama in the markets equal the barrels of ink
this interesting story was due. i was hard pressed to find market activity that allowed me to think there would be a gr grexit. yra harris has 7,000 copies of a book he's trying to pass around. it was written 15 20 years ago. it's always been an experiment, most about brussels controlling europe than any member country being like a state in the united states. >> people rushing to amazon right now. >> this is the third day in a row we are having a rally on wall street and fifth trading day when the dow has seen a 200 point move. what's going on here. what's the motivating factor? >> the sense of release out of greece. we are right now in the thick of
earnings season. you'll have the banks, jpmorgan. citibank and goldman sachs. people want to turn their focus away from greece and really look at what's happening here at home. that is going to propel us forward. we are right at the 100 and 50-day moving average. expect until we get better u.s. macro data that we are going to get up and through once we see that. i think it's going to be a good season. >> jason do you a he grow? what are your top ideas here? >> i do agree. my best idea i think my favorite idea, let's put it that way are financials and consumer discretionary. the consumer there's lot of pent-up demand in the u.s. wages bottoming. benefit of lower oil prices. savings rate is quite high. all those things are compelling. financials are also interesting because our view is the yield
curve is going to steepen, not flatten. that should go right down to the bottom line. >> that would be a good sign for everybody. thank you so much. >> thanks. >> good luck with the book. >> thank you. >> about 45 minutes to go into the close here. dow up 207 points to kick off the week. s&p adding 21. nasdaq 70. >> u.s. reportedly getting closer to a nuclear deal with iran. another one where it's been kicking the can down the road. we'll go to the nymex. earnings season picking up steam. stocks set to report already in correction territory. the mercedes-benz summer event is here. now get the unmistakable thrill... and the incredible rush of the mercedes-benz you've always wanted. but you better get here fast... yay, daddy's here! here you go, honey. thank you.
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crude oil cutting its losses in anticipation of the western powers finalizing a nuclear agreement with iran. >> they delayed the deal and pushed the deadline back yet yen. volatility in the oil market. jackie deangelis live at the nymex. >> good afternoon. it was a see-saw session bouncing between positive and
negative territory. crude oil did finish lower, $52.20. the status of the deals at this point, doesn't look like we are going to have a deal by tonight. these have become disposable deadlines. traders are telling me they are watching closely at the fact these talks are are not breaking down. parties are still at the negotiating table. that is a positive sign with more time that framework will be reached. if a deal is reached because we missed the last deadline will be a longer review period. if iranian oil does come to market, it will take longer to do so. traders are bracing for this. especially in an environment where we heard from opec taking its demand forecast down. we've got oversupply globally. that is not a good recipe for the supply/demand equation here. we know we will probably not have a deal tonight, iranian media saying that he didn't think it was possible. as i said traders are looking
at this from the perspective we are still talking and progress is continuing. >> thank you. jackie deangelis. away from the oil fields of the mideast, a deal in america's oil patch. marathon buying markwest energy. >> creates the fourth largest master limited partnership and will have a $21 billion market capitalization. today's deal is one example of consolidation among energy companies sparked by lower oil prices. we wonder, are there more deals yet to come? >> let's ask energy analyst. what other deals may follow? >> i think when you talk about mid stream side like this deal it was just the opportunity presents. to me bigger the economy, the
scale they have to compete with larger kinder enterprises, to be able to compete on a scale basis and grow acquisitionwise. it just makes sense on the mid stream side to be larger. >> price of oil had to do something. to some degree this becomes defensive, doesn't it? >> it does. both when i look at mid stream and upstream side it certainly when you have prices hanging around in the $50 region and going lower, even more critical to start cutting these costs out than it maybe was at one time. the best way to do that is strategy, combine them have the economies of scale. >> who is next? >> i think there's a couple again when we talk to clients we don't specifically cover, but the comps i look at are the comps of the size of a markwest today. you see energy transfer partner and williams both about the
same size. something like that. clients talk about there is a buckeye partners out there. there's just a number of them all about the size mark west was on the mid stream side. then there is a number of several companies e&p because of necessity, debt et cetera are going to be forced to do something. >> you feel like maybe we are going lower from here again? >> i think just in the near term. i think everybody forgets about the conventional production out there i think that's coming off quicker than people think and get a rally by late this year. >> finally, we know despite the drop in oil prices the u.s. is continuing to produce more barrels of oil a day. do you expect that trend to continue or is it possible we might now start to see a dip from here? >> i still think, again, near term now between the end of the year what's helping is by
reducing the cost even at the lower prices they are still able to make a decent return. a lot of these unconventionals, whether permeating eagle ford utica, a lot of people could make money even at lower prices. unfortunately maybe in the near term more production is ahead. >> it may be good news for drivers out there. appreciate it. thank you, sir. >> you probably saw saudis started to borrow money to meet expenses. they need about $105 a barrel and they are at $58 with brent. >> also in the "journal" a piece looking at why the deal greece may be reaching with europe the way russia isn't involved some analysts saying russia could never have been involved. it's a very expensive prospect. 38 minutes left. hanging on to gains. the rally took off on the open and we've been going sideways. no fade yet. we'll see how we do.
rally day on wall street by an almost 9-1 ratio. 1.1% gains for the index of 22 points and shy of 2100. only about 2% off its all-time highs. >> analysts say investors are relieved that the greek debt crisis has come to a head. you can see american airlines up 3%. delta, united continental and jetblue with big plus signs today. >> new study showing airlines matching eight consecutive years of revenue increases from fees. phil lebeau joins us with those gory details. >> we have a tissue for bill. he's complaining about how much he is paying for checked bags et cetera. the latest data we have they checked this every single year
looking at airlines around the world. latest numbers are staggering in terms how much money airlines brought in a whopping 38.1 billion in 2014. that was a 21% increase over 2013. factor in how many customers are flying works out to all of us paying $17.49 in extra fees whether it's baggage, reservation change, et cetera. that is up 8% compared to 2013. the big three are the largest in growth. united topping the list. you see the numbers from usair, american and delta at $3.21 billion. we know about checked bags. and reservation change fees. those are the biggest chunk of generating revenues. onboard fees. that's where airlines are seeing the growth.
inflight wi-fi, they are doing basic wi-fi. you've got your device and you have to pay extra if you want to check your e-mail or stream a movie. that's where the growth is happening. >> more airlines outfit with gogo equipment to check your e-mail inflight. and delta and comparing it with the s&p 500, look at the run in the last year. earnings are coming out on wednesday. i can guarantee you this. i don't know what they are going to report but i can tell you ancillary fees will be a big chunk of what they report in terms of the profits they are expected to report for the second quarter. >> this is a service-oriented
industry. where's the service? you haven't seen appreciable increase in the quality of service when you get onboard. i don't begrudge anybody making a profit and i get the idea of a la carte pricing. if i'm going to check a bag, i pay for it. but where's the increase in the quality of service? flying is no fun any more and they are making all this money. >> that's a reflection of the fact so many people are flying and airlines have as many seats filled on a plane as possible. i said this for a long time and almost everybody in the industry agrees. you get that many people on a plane flying point a to point b, your plane is going to have more than a few people on it who you don't want to sit next to. their job is to get you from point a to point b. if they do that and deliver your bags i'm not sure wales you are
looking for from the airline. gone are the days when you are getting on a flight and expect to sit in the lap of luxury. >> i don't need a lap of luxury. >> isn't jetblue's new tiered service? >> it's turning into a traditional airline. they are going the way of all the other legacy carriers. very disappointing. >> and the bottom line is growing. >> good for them. they have a captive audience. we need to fly and they've got us. >> i spent the weekend reading about the concord but we'll save that for another discussion. phil lebeau with the latest. >> time for a cnbc news update with sue herera. here is what's happening. prosecutors arrested the son of a boston police captain in a plot to commit terrorist acts on behalf of isis. he is accused of receiving four guns fourth of july from a person cooperating with american massachusetts joint terrorism task force. the white house says it has made
it clear to the mexican government that the u.s. wants to see escaped drug lord joaquin el chapeau guzman to face justice. he escaped from a maximum security prison over the weekend. second time he has done that. the ap says pentagon leaders are finalizing plans to lift the ban on transgender individuals to serve in the military. take a look at this dramatic video. a motorcyclist dramatic wreck was caught on tape in china. shows him speeding around a curb hitting a bridge careening into the river. the cyclist wasn't wearing a helmet. he was taken to the hospital and we are happy to report he's at least in stable condition. >> that is the cnbc news update this hour. always wear your helmet. back to you. >> i do. even when flying i wear my
helmet. >> you got me all depressed because i'm flying on saturday. yikes. >> good luck with that. >> wear a helmet. >> i will. see you guys. >> 30 minutes to go until the close. the dow moving up 222 points. s&p up 23 nasdaq adding 76. that is good for 1.5% gain. >> you agree with we on flying don't you? up next the most important half hour of the trading day is upon us. a top trader will tell us what he is watching. 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.
welcome back. >> one thing we are not talking about is the 3:00 meeting that started about the puerto rican debt. >> why do you think puerto rico has potential to upset this market? >> what concessions are we going to give puerto rico going forward? greece will never be able to pay back this debt. nothing will be that earth
shattering. >> is this rally a relief rally or something more behind it? >> it's not that big. the draconian measures are working for the time being. >> let us know what you think about "ant man." >> we are waiting for ant man to ring the closing bell. euro could go lower and not because of greece. joining us with her view on the currency markets from rbc capital markets. you would think you see the euro strengthening if they are going
to make greece happy? >> when news of the deal broke, not the price action in euro dollar but price action in dollar/yen. that tells me everything i need to know. the fact that shot higher says it's all about the fed now. greece being partly resolved clears the way for a fed september hike. >> how much u.s. dollar strength are we talking about here? >> it's fairly limited. that's why we've got to be careful. euro/dollar in this 1.05 trading range. dollar/yen above 1.30. you have to pick where you look for that dollar strength. >> earlier when the euro was going lower, we were talking about parity we were convinced it would happen by this summer and maybe to 85 cents to the euro. then it paused. what happened? >> parity has never been our forecast. unless we get a worst-case scenario in greece we start looking at exit, i think there's
a lot of good reasons to look for euro/dollar at 1.05 1.15. there is a soft cyclical recovery and some measures are having some effect. >> how much of a carry trade is there in the currency markets? is that a popular thing traders are doing? what does that hold? what implications does that hold as we move throughout the year? >> a few different things. that's certainly a part of it. trades funded by euro have been popular. the other thing people are paying attention is to the behavior of equity investors and how they affect the euro. there are a lot of hedge european equity investors. they need to sell euros and vice versa. >> what about dollar/yen? >> target mind of 1.32. that is more about the behavior of japanese investors on the back of the fed. as you see the fed raising rates, japanese investors reduce
that rate. >> janet yellen will be talking about it this week. she is still saying we expect to do it this year. however, a lot of things get in the way. >> if you were to ask economists they would say they should have hiked already. greece moving out of the headlines, there is no reason why shouldn't be hiking in september. that is key to euro/dollar's move today. >> best point. thank you for being here. big day. a lot of different moves to digest. >> as always. we'll take a quick break. come back and get the markets still looking at the gains. >> dow up 216 points with 20 minutes to go. >> despite the all-time highs, dom chu will look at a group of stocks he says are in the middle of a stealth correction. ♪ 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.
>> let's check on the individual movers today. netflix trying for a record close ahead of its 7 for 1 stock split tomorrow. goldman sachs raising its price target to $780 from $620. the firm citing strong overseas growth. it's $704 right now. garmin up the most in nearly a year today. "barron's" highlighting the shift from wearable devices to car navigation systems in an article over the weekend and said the move could take the stock up to $60 a share. garmin at $46 and change. under armour rising after golf pro jordan speith won the john deere classic yesterday. he has a contract with and armor through 2025 and will still be under 30 when that kicks in. >> he's scary good.
we have a news alert. what's happening? >> david einhorn out with a q-2 letter. it leaves greenlight capital down about 3.3% year-to-date. interesting highlights from the letter. he has two what he describes as small long investments in a market where it's tough to find compelling stories. he mentioned applied materials specifically and bank of new york and strength of those. he did say they were small. he exited a number of positions. imc, marvel technology among others. he had choice words about two things of interest. netflix which you were talking about, and greece. he was highly critical of netflix. he couldn't believe their april earnings miss was shrugged off by the street and said in today's markets, he feels the stories that do well are the
exciting ones where accountability is pushed off to the distant future. he had harsh words for "house of cards" season three. in greece he owns some greece financial entities. he said he knew it was a high-risk investment but down side is limited, size of the position is small. he was critical of alexis tsipras. >> he complained about "house of hards?" >> he said they were trying to
compete with ambien. dozens of stocks hitting hult multiyear highs. >> many report earnings after the bell. we have dom chu. >> they are not stealth but the moves may have been. one reason why the stock market bears are stirring has to do with this idea stocks are in correction territory or worse or a broader scale than some would expect. we look at larger russell 1,000 index. over half the members of that index lost at least 10% of their values since hitting their 52-week highs. three stocks report earnings this week. csx. this company has been part of that higher profile slowdown in transportation stocks that's got everyone's attention.
stock lost about 16% since hitting a high in november last year. the average analyst target price is close to $36. that implies about 12% up side from current level. csx reports earnings tomorrow after the closing bell. on tech side intel. it managed to lose 1/4 of its value since its december highs last year. that means the stock is in bear market territory though barely. on average, analysts expect the stock to rise 16%. intel reports its earnings on wednesday. on the energy side oil field services giant schlumberger lost about 28% of its value since late july last year. schlumberger expected to rise by over 20% from its current levels. it reports earnings on thursday after the closing bell. you've got csx, intel,
schlumberger. traders and investors paying close attention to these and other reports to see if there is any up side catalyst to these stocks because of earnings or if these down trends continue. interesting snippet. over half the stocks in russell 1,000 in correction territory or worse. >> thank you. you'll hear applause and buzze new york stock exchange because gordon gekko is in the house. >> michael douglas is here. marvel ringing closing bell for "ant man." >> how does it feel to be in your first movie here with marvel? >> it's exciting. this is a nice way to do it. just found out disney is at an all-time high. maybe they know something about "ant man" for the weekend. this is a treat. haven't been down here since "wall street" so it's fun to
come back. >> bring back any memories for you? >> well yeah. brings back some good memories. how are you? it's nice and quiet and calm today. so ant man is happy. >> thank you, michael. appreciate the time. >> you'll see ant man and gordon gekko ringing the closing well. >> i thought he was supposed to be very very small. he is bigger than the previews suggest. >> michael douglas? >> ant man, that is. michael douglas, when bob pisani asked him about coming through here, the role made him so famous to everybody working in finance, from "wall street." he said it's nice to come back in a nice legitimate role. that's sure to set tongues
wagging. >> welcome back michael. art cashin came by a moment ago. we've got a big buy side imbalance right now. $600 million to buy going into the close with the dow up about 220 points. >> up next it's all greek. the pending european bailout for greece is contributing to the fervor in today's market. ♪ if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. share your summer moments in your mercedes-benz with us.
joining us rdm financial ceo ron weiner and anthony chan from chase, chief economist there. greece does it matter now? you've got all the banks reporting earnings. isn't that more important than what's going on over there? >> the markets don't like uncertainty. the media doesn't help when everything is about greece. the truth is whether it's a good deal or bad deal just any deal is going to make the markets go up. that's greece. janet yellen keeps going two
steps forward, one step back. it seems like it's going to be a nonevent. if it is it's probably priced in already. no. i don't see anything troubling. >> people watching the euro weaker are saying is this because the european central bank has to do more to support the bond markets or economy in europe? >> i think the reason the euro is weaker is because the reality is when you have the european central bank increasing the emergency liquidity assistance that it has to do and perhaps add more liquidity to make sure the process unfolding is going to be as smooth as possible. this is going to be a messy situation. the european central bank will make it smoother. smoother means more liquidity and that means a weaker europe. >> everybody loves financials and they are reporting tomorrow. are you among them? >> yeah. i'm a jason trenner fan. we think interest rates will be higher three or five years than
lower. >> that's good. spreads are important to the banks. >> real quick. on china, how much of a threat is it to the fact that the s&p here is 30 points off its all-time highs? >> one thing you've got to remember we learned the lesson well never fight central bank. that means eventually they will be able to stabilize the situation. you saw the data overnight. imports suggesting domestic demand getting stronger. >> you can't confuse the stock market with the economy. got to be careful of that. economy is growing slow but growing. >> good to see you both. thank you. we'll come back with the closing bell. i'll be down there with bob pisani. amazon gearing up for its 20th anniversary wednesday with prime day. walmart isn't going to watch the parade go by.
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today. let me show you the euro/dollar, it's now at 1.09 and change. >> frankly, the rally happened 3:00 a.m. in the morning. s&p futures went up 15 points. we opened up 15 points. we are closing up 15 points. >> 2100 is a resistance. we are sitting right on it. >> jp more began tomorrow wells fargo. now finally the banks. the hope here is somewhat better loan growth combined with a little bit higher net interest margin higher rates in the second quarter. hopefully helping out the banks a little bit. i still think it's going to be cautious commentary. i just don't hear about big loan growth. i'm hoping i will be surprised. did michael douglas not look terrific? >> did you a great job over there. >> i was standing and he walked into me.
72 years old and looks terrific. >> he does. thank you, bob. see you later. we've got a lot -- this is going to be a volatile week. a lot to cover. big banks tomorrow and janet yellen's testimony to congress wednesday and thursday. more going on in greece. it's all coming up right now in the second hour of the closing bell. see you tomorrow. thank you. welcome to "closing bell." what a day on wall street a rally after all the anguish over euro and china. the dow today adding 216 points. that is 1.2%. the s&p 500 only about 20 points away from its all-time closing high. let's bring new today's panel. guy, first to you. is this just a relief rally here
on wall street or predicated on something more? >> relief rally, i don't know if i would term either one of those. the market has been in up trend quite some time. technically we talked about it last week. we said the s&p held where it needed to hold. we'll see a rally. is it a relief rally? i guess. i don't think anything has been fixed. the market sees clear sailing ahead as it has the last six years. i think the s&p is probably geared to make new highs some time in the next few weeks. the russell held up. it's full speed ahead. whether it should be, that's what's happening now. >> catherine, people will look at this market and say, either all this concern about the economic impact of these events was way overblown or people bidding up stocks to these highs aren't aware of how deep these risks are. >> to the extent it is a relief rally, that relief might be
misplaced given that even the deal that was agreed to today with greece or offered to greece very much does not solve any of the long-run problems greece has. there is no debt relief guaranteed. we don't know that the measures that greece has promised or has promised to put before its politicians will get passed. in my view default of some kind is inevitable and debt relief needs to be part of the picture. without that on the table, we are going to be repeating the same drama. >> guy, i wonder for people in greece, if they start to say wait a minute you've been here five, six months which are worse off economically, why sign up to this? if that falls apart in athens in the next couple of days what happens with the market here? >> hopefully you can hear me. i just changed mikes. >> guy, hold on a second.
we'll fix that. and david greenhouse joins us on set. if this doesn't pass in athens if the greeks say, you know what? forget about it. one way or the other, we can't sign up to this what happens then? >> they're defaulting. there is just no way in hell they can pay what's coming down the pike. they have 7 billion euros due, another 5 billion due in august. this would give them a lifeline for a while. without that lifeline the end is coming sooner. >> focus on multiples, focus on the u.s. economy, is this a green light for people to ignore
this risk? >> i want to address what both of you said. i had fairly nonstop meetings lucky enough to have fairly nonstop meetings the last two weeks or so. zero portfolio managers have done anything to their books because of greece. they are unconcerned about it. they figured it would be solved in the last minute and more or less that is what happened. to catherine's point about the level of debt in greece this is an irrelevant number. nobody expects they are going to pay it back. what reforms can you get before you reprofile the debt or write it down? you are not going to give them money, you want to get something for it. free up bakeries.
we do use reorganization here in the united states. what can you get out of them? that's where we are. >> michelle caruso-cabrera joins us with the latest. what's happening? >> another day, another yanis varoufakis controversy. he reveals in an interview he had a plan once the greek capital controls were put in place and the banks were closed. he said i was going to issue ious i was going to hair cut the debt we owed to the ecb and then he said he was going to seize control of the central bank of greece.
that is explosive stuff. that is che rivera 1962 cuba. at the last sentence he says my view was if they dared shut our banks down, which i considered to be an aggressive move of incredible potency, we should respond aggressively but without crossing the point of no return. he seems they wouldn't be forced out of the euro zone. i don't know if he is delusional or thinks this would have been a strategy. bottom line there was a committee vote on his plan and he was outvoted. that's why he was out of a job. the controversy is people are reading this here in greece and there is a lot of anger. he is very popular. but people are reading this and thinking, wow, he pushed us so far close to the edge into the
abyss. varoufakis out of his position but not out of the limelight. >> it's not the last we'll hear from him either. just to back up for a second and home in on wednesday, now the parliament has to agree to all this. it sounds like tsipras is still popular enough to maintain his position for the time being. is a no vote an option a realistic one? >> political analysts thing it is doubtful. they think it will pass because the opposition parties want it to pass and will help him do it in overwhelming fashion. he could lose his official parliamentary majority. that means he could -- there are a couple of options after that. an extreme option would be
calling for new elections. people are doubtful about that. ultimately, no matter what path you go down he still remains the prime minister of the country. >> it's fascinating stuff. everybody is politicking, everybody is posturing. michelle has done a ridiculously excellent job over there the last couple of weeks. a deal has to get sorted out. a deal that says to the rest of europe, don't try this yourselves italy, portugal spain, or bad things will happen. everybody has to look okay which is why you'll see the rally in the s&p you've seen which is why the dollar might actually go down against the euro. that actually might be more beneficial to the broader market, the s&p. >> david einhorn making a lot of
news. let's bring kate kelly back with those details. >> interesting and harsh letter for the second quarter from david einhorn's green light capital. he had choice words for netflix. he noted in their first quarter earnings results in april, he was astonished they had a huge miss. they basically turned out about 50% of what they had anticipated in terms of analyst recommendations, yet the stock popped 12% the next morning. his joke in the letter is apparently red ink is the new black. he made fun of the third season of "house of cards" saying it looked like it was set to compete with ambien. he is troubled by the fact the market doesn't care about actual results when it comes to exciting stories. he thungs netthinks netflix pushed their story out in the curb and may not have results until 2020. he says it seems as though they
are being judged on what they spent rather than earn. interesting. he thinks the market is totally insensitive to the margins and bottom line. judge, great question to debate. kate kelly, thank you so much. is he right? >> we have a buy on netflix. i'm not going to comment on what david einhorn has to say for a number of obvious reasons. >> let me ask you what he is saying, and you heard him put it cogently people are rewarding growth and not the reality, excitement more than actual results. >> david einhorn is 40 times the investor i am. there are numerous stocks where traditional earnings metrics tend to fall by the wayside in lieu of investor sentiment, the story, the cult of the stock. i think that falls onto that category. i'm not categorizing anything
david says or bgit. >> guy, the last word here. >> audio issues with guy. there will be much more coming up on "fast money" and guy and the gang. in california gas prices are spiking. what's behind the pain at the pump. >> apple's iphone. they only have less than 24% of the smart phone market but grabs 92% of operating profit. should the other phone makers raise the white flag?
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the two sides are close in what could be a historical deal seen in the making for almost 13 years. despite ups, downs, threats and numerous missed deadlines, the negotiations over the last 20 months have brought the two sides within inches of the finishing line. today we thought we would get an announcement from reports we had from our colleagues in vienna. especially in iran. the president made an optimistic statement last night saying the nuclear issue had been solved and authorities here in iran told us to prepare for a statement from the president live on television today. that didn't happen but indicates things are going well. amongst those stumbling blocks is the language of a draft agreement. they want to be very specific about that. they don't want to put a comma in the wrong place. the bigger issue seems to be a dispute over u.n. arms embargo over iran's missile program and
wider embargo on iran trading arms and importing arms in the region. the west wants that embargo to stay in place. if it was lifted, it would further fuel the flames of conflict in the region. the russian and chinese are backing the iranians on that issue saying the embargo should be lifted. they have financial incentives because they want to embark on lucrative arms contracts with iranians. talks will head into another day of extension. this is going on all through the tonight to resolve this issue. >> thank you so much. now to another big energy story today. it's the rising gas prices in california. national gasoline average is $2.17, california is seeing prices spike to more than $4 a gallon. joining us is co-founder of oil price energy services.
welcome to the set. >> nice to be here. it's too bad we have a bipolar market where the west coast is above $4 and east coast is $2.70. >> is the worst you've seen in terms of this divide? >> in october 2012 we saw the same thing. we saw california is very separate. they can't get the imports the rest of the world does. they have an adversarial relationship between the refineries and regulatory community. people need to realize if they are not living in california they will not see this any time soon. they will see oil prices particularly six months from now. >> do we look at california as a barometer for anything or an island unto itself? >> it's an island unto itself. a barometer perhaps when we change our minds about carbon if that does stick. right now they want to get rid of fossil fuels by 50%.
that comes with a price. you can't tell refiners you are going to put them out of business and expect everything will run smooth. this is a little bit of a perfect storm. it will be over in five days or five weeks and sharply lower across the country. >> what do you expect since we are just talking about iran what do you expect negotiations in iran will have? what effect would that have on markets? >> that will reduce prices next year. you need to have an agreement by july 9th for everything to go well and more crude oil from iran to come on. crude is going to really have some problems from september through january. the last thing they need is more crude on the market with the saudis pumping a lot. iraq is pumping more than they have in years. >> iran is where on the pumping spectrum? >> they used to be number two. now they are a bit player. they could put another 250 to
500,000 barrels a day on the market. >> would do what to prices? >> if it came out let's say this fall, it would probably send prices back into the $40s for a while. i think oil is fairly valued. gasoline is untethered. think 50 cents lower than now by november, december. that's what i think you'll see. >> good segue from one story to the next. >> tom is the best. if i'm in california and running for governor on the platform i'll bring energy costs back in line with the rest of the country, what powers do i have? what would be the two or three main things to achieve that? >> you would probably have to aggregate the jones act which restricts shipping vessels from port to port in the u.s. to only u.s.-flagged vessels or slide back on clean air. i don't think that will work politically in california. the fact of the matter is when we get to colder temperatures, when we get to october,
november, december the recipe for gasoline in all the country changes september 15th. changes halloween on the west coast. there are cheap hydro carbons that push the price lower. >> is the price will fall or will the gap remain the same or will the gap become more similar? >> it will become more similar between california and the rest of the country. probably we'll drop back to $2. even in california. next spring same thing happens in california. >> we'll see if there is more political pressure. thank you for joining us. new data shows apple dominating the smart phone industry reaping 92% of the operating profit. that is more remarkable since the iphone accounts for 20% of all smart phone sales. how they are doing this. presidential candidate hillary clinton says a sharing economy is unleashing innovation but may come at a cost. >> it's also raising hard
questions about work place protections and what a good job will look like in the future. >> do these companies like uber hold more risks than rewards for workers? what if there were only one kind of dog? then it would be easy to know everything about that one breed. but in fact, there are over three hundred breeds of dogs. because no one can be an expert in every one... an app powered by ibm watson will help vets tap specialized knowledge in the cloud for every breed... and whatever else walks, flies or slithers through the door. ibm watson is working to make medicine smarter every day.
apple shares rebounding nicely after falling 2.5% last week. move coming after a report putting in perspective how much money the company makes selling its iphones. in the first quarter this year apple took home 92% of all profits among the top eight smart phone makers up 65% a year earlier. next closest was samsung. the two phone giants make up more than 100% of the share because others lost money on the phones. joining us for more reaction is dawn chimolewski. nokia had 2/3 of the profit back in 2007 where does apple go from here? >> it's certainly a great question. we all knee they were dominant in the premium sector. we had no idea how sizable it was in terms of taking profits. 92% is just sort of a staggering figure of the profits in the industry.
will they maintain momentum? apple thinks it can. >> a lot of this is because apple is able to sell their iphones at a decent margin. the price they can sell it at and they don't have to give it away for free. that's the real question. especially amid reports they are ordering more iphones than ever. are consumers going to be willing to pay up for it and a time when anybody could try to undercut them? >> fair question. it's dicey trying to second guess consumers. we can look at the domestic market. the u.s. market. a lot of consumers are on two-year contracts with their phone. this cycle has another year to play out with apple selling these new phones with the larger screens. i think we can probably guess that apple read the market correctly. over the next year it will continue to sell these devices briskly. >> kelly brought up an important point which was nokia -- full
disclosure, we follow apple and have a buy like everybody else on the street. at 92%, is it fair to say it's only a matter of time until someone else comes along and hits on the new hot thing and begins taking share or does apple have a monopoly that is likely to last for years? >> no one in technology is king forever. i think we all know that. history dictates that. it's hard to see who is going to come out of nowhere and eclipse apple, at least near term. that certainly must be on the minds of investors. >> admittedly in 2000 no one could see who could come out of nowhere and challenge microsoft or challenge cisco or qualcomm. obviously, here we are today with numerous challenges. my point is is it safe to assume all investors absolutely assume in five years' time there
will be another large competitor to an apple? >> there already is. in china there is a company dominant in the market. it makes money through purchases through its mobile app store. makes money through the sale of accessories for the phone. these emerging markets do have domestic players that are growing rapidly. there are definitely challengers on the horizon. >> so much of apple's success story is coming up with the next new exciting thing that gets people to line up down the street waiting for the doors to open. there have been concerns in the last couple of years they've kind of already picked all the low hanging fruit. they tried something new with an apple watch. doesn't seem to be quite as much excitement about that going on. do you think it's possible for apple to continue its momentum in the absence of a next really
big thing? >> we'll see. apple hasn't released its numbers. often times it's first generation entry into a new market isn't remarkable until apple starts tinkering with the prices features. i'm not sure that story is played out. i think wearables are an interesting future area of growth for apple. we'll see the coming years whether it can establish itself as dominantly there. >> thank you. we should note you look at the piece and it's not just the mobile market. in pcs apple sells 6 out of every 100 pcs and makes half the industry's profit. they cracked the code. sue herera what can you tell us? >> here is what's happening. nbc news reporting that there are indications that a nuclear deal with iran is coming
together. an announcement could come predown hours tomorrow morning. rueter reporting there will be a photo opportunity and news conference. we'll keep you posted on that. iraq releasing video showing jet finders pounding alleged isis hot houses. an employee at the lexington county jail entered the wrong information into a data base of south carolina arrests, allowing dylann roof to buy a gun authorities say was used to kill nine people in a church last month. the information was corrected two days after his february arrest, but wasn't sent to the state law enforcement division which maintains the records the fbi uses for background checks. kraft lowering prices of
maxwell house and uban coffee in the u.s. starbucks raised coffee prices citing higher overhead costs. that is the cnbc news update this hour. back to you. please do. i'm just thinking when it comes to coffee competitors are smelling some opportunities. >> absolutely. especially with prices dropping. >> thank you, sue herera. are sheering economy companies like uber keeping presidents low? are they to blame? robert wolf will weigh in next. later, live to cincinnati and major league baseball all-star game. mark teixeira paying attention to batting averages as well as the dow jones industrial average. coming up, which investments are scoring. ah! aflac?
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democratic presidential hopeful hillary clinton delivering a speech in new york outlining her economic plan. she addressed the growing phenomenon of the sharing economy and online businesses. >> many americans are making extra money renting out a spare room designing websites selling products they design themselves at home or even driving their own car. this on-demand are or so-called gig economy is creating exciting opportunities and unleashing innovation. but it's also raising hard questions about work place protections and what a good job will look like in the future. >> kate rogers has more details on this plan and how it could impact the companies like uber. >> that's right. remember joe the plumber? i had an analyst tell me today it looks like this election cycle it may be all about carl the uber driver. hillary clinton called out the sharing economy, alluding to companies like uber air bnb as
a potential factor in stagnant wage growth. this comes at a time when 53 million americans are freelancers, according to a study commissioned by the freelancers union. according to the national employment law project, there are now 1.2 million fewer jobs in mid and higher wage industries than there were prerecession and 2.3 million more jobs in lower-wage sectors. clinton's comments are timely begin the lawsuits against uber and lift out of california, which drivers are suing to be reclassified as employees instead of independent contractors. clinton vowed to protect workers from companies who are misclassifying their employees. >> i'll crack down on bosses who misclassify them as contractors or even steal their wages. >> clinton reaffirmed her desire to be the small business president, adding there is a need for higher wages, paid sick
leave and more comprehensive benefits, all hot topics on main street. >> they are. thank you so much. let's talk more about hillary clinton and the economy. joining me robert wolf who served on president obama's council of jobs and competitiveness. >> thanks for having michael douglas here today. i was loving it. >> wish i could take credit. we loved seeing him down here. greed is good is not a mantra we want to hear. >> no. gordon gekko is not coming back. >> what is her point about the sharing economy? >> if you went there today, would you say she put a very good framework together. that was one bite saying we need to make sure workers are skilled and need to make sure people are being treated fairly with paid leave and childcare. wages are are stagnating. i think she put a good framework together where she has what she called the strong economy, the fair economy and the long-term economy. i think there is real value to
it. >> i would add these concerns she has about the sharing economy are not unique to the sharing economy, are not original to the sharing economy. this idea of firms offloading some of the risk from their balance sheets on to workers has a long history. it goes back to the '70s. >> we know manufacturing has been down over the last two decades dramatically. >> the shift from designed benefit plans to defined contribution plans. it's all part and parcel of the same trend. >> listen, i think if you went to the speech today. she was talking about growing the economy which you want to hear and growing wages. talking about the need for national infrastructure bank. i wrote an op-ed on it. it is the fastest grower for gdp and jobs. >> you use uber right? >> my family uses uber. i have a driver i'm embarrassed to say.
uber in martha's vineyard i would rather take a cab and give back to the local community. my guess is i'll be on uber. i support more the local economies. i don't have an issue. >> let me ask you this. one of the areas in the u.s. economy today that is growing quite rapidly is the sharing economy she cited. whether it's etsy or uber or whatever. this area of the economy is creating jobs, creating income. in an environment which some of these things are harder to come by than normally the case. why would this be the one area she would pick to target with higher regulation and more attention? wouldn't this be an area you would want to encourage and foster? >> the truth is she didn't. she did not pick on the sharing economy. more talking about making sure people are protected. she talked about women's wages and childcare and paid leave. this was an example of as we move to an automated economy, make sure the blue collar worker
still survived. i have a drone advisory business in measure. she was not say entrepreneurship is not great. we know it's been the leading way to get jobs for this country the last two decades. she was saying as these new economies emerge don't forget the old economies are still important. if you listen to the speech she said that trickledown economics has not worked. that was the essence of the speech. it has not increased wages. that's an interesting part of the speech. >> let's jump off about that on the trickle down economy. sure we can agree something is going on generally creating an era of income inequality what can hillary clinton as president do specifically? there were not too many specifics. what can do you to close that income or wage inequality gap? >> fairness is part of it.
aware from that bring back infrastructure, clean energy. smart free trade. there are things that bring jobs back to this country. corporate tax reform is a must. that would bring jobs back if we had corporate tax reform. i think she had a good framework. over the next 15 months she'll dig deep into the policy. nobody is going to do a 40-minute speech on the economic framework and deep dive into policy. >> i would love to hear detailed 40 minutes on sharing economy. >> we would watch it. >> an audience of three. >> i would participate. >> thank you for being here. appreciate it. it's a sign of the times. comcast, parent company of this network and one of america's oldest cable companies launching a streaming video service. is cord cutting officially the future of television? amazon's prime day will have prime competition. which company will win this epic e-commerce battle?
julia julia boorstin has more for us. >> the cable operator is looking to cash in on demand for alternatives to cable with a new internet delivered tv bundle to broadband-only subscribers called comcast stream. it will offer a bundle of broadcast networks plus hbo and cloud dvr for $15 a month. there are no commitments, equipment or fees. users can sign up and download the app. it's launching in boston chicago and seattle this year before rolling out to comcast full footprint next year. this puts comcast into direct competition with sling tv and verizon slim tv bundle. comcast shares trading up today to near a 52-week high. comcast new service is limited and not just because it doesn't offer cable channels other than hbo. subscribers can only stream
devices within their home and not designed to stream directly to a tv set. we'll have to see whether comcast adds more cable channels in particular and availability outside perhaps its own footprint as it launches this service. back to you. >> thank you. guys, just looking for a response here. just from the point of view is it better late than never or the beginning of much much more change to come across the quote/unquote tv space? >> they talk about this every day. the earthquake going on whether it's against sling tv or amazon prime. people are changing the way they consume from tvs to tablets. this is part and parcel of that shift. >> we take david einhorn's comments. he slammed netflix because he
didn't like the third season of "house of cards." content, in a way, is king here. >> absolutely. that is not what comcast is offering that is different. netflix has its own unique content you can't get anywhere what comcast is offering a lot you can get on hulu other services, through amazon prime. it's not clear what's special they are offering. >> it will be interesting to see how this shakes out. be sure to stick around for "fast money" at 5:00. they'll ask the most bullish netflix analyst rich greenfield if it poses a threat to the streaming giant. his answer might surprise you. that's about 15 minutes. in addition to playing first base for the new york yankees, ask successful investor to mark teixeira's resume. what he is watching now. this year marks the fifth anniversary of cnbc's deliver king
welcome back. major league baseball's two all-star teams set to square off the game being played at the great american ballpark out in cincinnati. cnbc.com senior editor laura chemi is out there covering all the action for us and he he joins us alongside new york yankees first baseman and 2015 all-star mark teixeira. eric? >> hey, kelly. yes, here we are in cincinnati. we're in the reds hall of fame. we're joined by mark teixeira of the yankees. thanks for coming on the show with us. i know you've been doing a lot with youth participation. how ow get kids more interested in baseball when there are so many sports to compete with and so many screens to compete with? >> well you know baseball's america's pastime. and we have to get more kids involved, more kids playing the game. it starts at home. at haerm rbi in east harlem we serve 1500 kids in east harlem and trying to get them to really love the game and enjoy being a
part of a team. i think teamwork's so important. and all over the country when you see major league baseball announced there are youth initiatives. getting kids involved in the game, being a part of a team and understanding that baseball's just a great sport and we need those kids to be playing. >> what about the new generation of stats-focused people? your old team in an hooirnlgs the gm the manager, a little controversy there. the gm left because of communication around statistics directed to players. where do you fall on that stats versus old school? >> it's the old school/new school. stats analysis statistical analysis has a big part of this game. it definitely has a place. but at the same time talent wins out. you have to understand who the most talented players are. mike trout and bryce harper i don't need to see a lot of statistics on those guys. i go out and watch them play and understand how great they are. when it comes to defensive shifts, stats absolutely. when it comes to do i take someone out of the game make sure he's not being overused yeah, stats are very important. you need to blend the two together. >> you faced a lot of crazy
defensive shifts. do you think they should take that out of the rule book? >> i'd love if they took away the shift. it's part of the game. it's like zone defense in basketball. when the great players are on the court you do the box in one or you try to double-team as much as you can. it's part of the game and i don't think it's going anywhere. >> business is a big part of the game. obviously the yankees are big spenders. a small market team like cincinnati here they're not so much. do you think it's fair that in baseball unlike other sports we should see hundreds of millions of dollars of difference in how much a team spends? >> baseball's done a lot over the past few years to really narrow that gap. you see what they've done with the draft, see what they've done with revenue sharing. the yankees spent a whole lot of money in revenue sharing every year. it allows the teams at the bottom of the revenue model to kind of work their way up get the best young players, to spend free agentwise. a lot of teams nowadays do have the money to go out and spend on free agents. that's great to see. >> mark if i could jump in here for a second today in the news it's reported that 50 cent is filing for bankruptcy after
making $100 million selling his stake in vitamin water to coca-cola. you're baseball's $200 million man. how do you manage or protect your investments? >> well it's funny. the first thing i do is i put my, as i call, it sleep on the pillow at night money. put that away. we have a budget that my family and i adhere to with our financial adviser. and that's what we spend every year. and the rest of it is in a big mutual fund with a lot of different things going on. to make sure that that money is set away for the rest of our lives. unfortunately, too many athletes and celebrities kind of go through this. and i've been a big advocate for financial education for athletes for a long time. and hopefully, more guys will learn the lessons that i learned as a young player. >> yeah. you know in flipping to tonight with the home run derby coming up there's some criticism of the event itself and i know you're as i understand not participating. do you think it's a good idea the home run derby? should it be continued and a
centerpiece of baseball? >> i think the home run derby's great. i did it in 2005. but we really need to try to change the format. and that's what we're doing this year. the rounds are timed. it's bracket style. kind of tournament style. so i hope fans watch the home run errby this year and kind of really enjoy the new format because the old format was getting a little stale. >> mark who do you think is going to win the home run derby tonight? >> it's tough to say who's going to win. >> you've got to make a prediction. this is cnbc. >> i'm rooting for albert pujols. albert's my -- we're both older first basemen, power hitters. i want to see a guy like albert go out on top here. >> through heard it from mark teixeira of the new york yankees. thanks for joining us. >> sxerk mark thank you both. maybe adask him what his prediction is for the dow at the end of the year, too mark but i'm assuming you'd rather leave it there. mark teixeira thank you very much. wednesday shaping up to be an online shopping battle royale. amazon promising its prime day will have more deals than black friday. walmart deploying thousands of
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yellen's congressional testimony or cnbc's delivering alpha conference by the way. it's also amazon's prime day and the e-tail giant promising more deals than black friday for prime members. walmart ready to throw down. now it's saying it'll launch more than 2,000 rollbacks exclusively online in return. so who will come out the winner, guys? this is the first time we've ever seen something like this on a not black friday holiday. >> just what we need. another shopping holiday. >> i'm all for shopping holidays. but let's be clear. i think we were talking about this off air. this is sort of walmart trying to compete with amazon on amazon's turf. and i don't and my company doesn't follow either one but it seems to me that i would have more awareness of an amazon online discount day, if you would, than a walmart online discount day. >> but now as it becomes a thing, and this is where network effects can work aum of a sudden people with k. know i don't know what's going on aum i know is wednesday's a big day online. doesn't that help it out? >> lower prices helps everybody. despite what you hear lower prices are a good thing.
in this particular case to have two behemoths like a amazon and walmart competing against each other to lower prices ultimately frees up buying power for consumers to spend money on other things. but again, in terms of the online space amazon is the dominant player. walmart's competing on their turf. i can't imagine walmart comes out ahead. the argument may be they're simply trying to maintain share. >> that said it's not the worst things to jump on their coattails. if i'm walmart and i want to pick a day and do something like this am i going to get as much press and attention as i would if it's a combined media pitting one against the other? >> it's a more colorful story if it's both. it's not clear to me that walmart actually wins out in this game. walmart was not to make money. amazon doesn't really care so much about that. at least in the near to medium to long term. so it's not really clear to me that walmart has any ground to gain here. >> i can't wait to see what some of these deals are. i'm just interested in what kind of things we're pitching and what's relevant to people right here. wednesday is a big day.
thank you guys for joining us on "closing bell." really appreciate it. that does it for us. "fast money" coming up in moments. melissa lee, what's on tap? >> hey there, kelly. we could be hours away from an iranian deal. we're going to have dennis gartman on to difference the oil trade ahead of that. >> great stuff. straight over to you guys. >> thanks kelly. "fast money" starts right now. live from the nasdaq marketsite overlooking new york stees's times square i'm melissa pleep traders on the decemberric pete najarian, steve grasso karen finerman and guy adami. tonight on "fast" a new report shows apple is 92% of all smartphone profit. so why isn't the stock moving higher? we'll tell you the surprising reason that could have apple investors running for the exits. plus, the beaten-down sector that could get a huge boost in this week's potential iran deal. we'll tell you what it is and how the traders are making money. but first we've got to get to the markets here. the dow up 400 points in just the past two days with some members on this desk say this is not the all clear for stocks yet. guy adami, why not? >> i don't