Johnson johnson, well fargo and many more. Google going on a costcutting mission. How will this company known for growth cut back . Shares of google right now, shall we . Maybe no. Maybe so. They are up 16 at 5. 63 a 3 rise on that news. But we do start with the iranian deal. It may take weeks or months for the money to start flowing but the speculation has begun about who will get into the Islamic Republic first. Our coverage begins now with morgan brenner. What have you found, guys . You snuck up on me there. A sneak attack. So its not a done deal yet, still months and several hurdles away from sanctions being lifted, but there are a wide array of companies that could benefit long term so lets start with oil majors exxon mobile bp and royal dutch she will have all been taking steps to explore the possibility of doing business. All of the stocks are higher today. Now, if they start investing that could also boost Oil Field Services companies so Schlumberger Halliburton international and Weatherford International and Cameron International could all benefit and many like schlumberger are not commenting and it brings the crude oil tanker market. More Oil Production could be a net positive for very large crude carrier fleets since many of irans ships are older. Those stocks including navios, teekay and Scorpio Tankers all higher today as well. Keep an eye on French Companies like puget, the automaker which has a history in the country is in advanced talks over an iranian carmaking venture and iran has the same population as germany, almost 80 Million People and seem to like american products. Iranian citizens could be a huge market for other flagship Consumer Brands like cocacola, nike pepsi and mcdonalds. Just hard to predict when the market will be fully open but for more on this weve got a story on cnbc. Com that actually just got published so check it out. Morgan thank it out. The managing director of turquoise partners thats one of irans biggest investment firms. He is live for us via the phone in tehran. Ramin, welcome. Good to have you with us. You hope heard a little bit of morgan brennans report there so what u. S. And western industries are likely from where you sit to be the first into iran, what do you say . From what weve been seeing in our company, tyler, over the last year or 15 months postgeneva deal weve had tremendous number of foreign investor delegations visiting us in iran from many of the European Countries but also including some from u. S. And from from what from pure speculation and the sense that i get is that probably the sectors that will move in quickly and first are hotels and hospitality obviously. Iran has a lot of tourist potential and tourism potential and for the past three and a half decades its been closed to a lot of Foreign Tourists and also not many hotels were being built and none of the multinational Hotel Companies are in iran. Hotel sector is very attractive and they will move in very quickly. Thats very interesting. A lot of people would instantly immediately say it would be the petro chemical companies, top of the list but you say hotels hospitality. We can imagine the western names that might be there. Youve also im told been investing heavily in iranian Financial Companies. Why are you doing that and do you see opportunities for Western Banks and investment banks to move in as well. Definitely. I mean one of the sectors that benefits immediately from removal of sanctions is Financial Sector because they have been hit really hard by the sanctions of central bank of iran and also the swiss system so i think that sector would benefit hugely from sanctions removal. They are already seeing a lot of the european and regional investment banks and banks, investment companies, Venture Capital and private equity firms with iran over the last 12 months so definitely i see a potential for foreign multinational, Financial Institutions to come to iran very soon. What is your sense of how soon the sanctions may be lifted, the sense among your collaborators there on the street, and how soon do these moves might take place quickly . My view is that sanctions will probably be removed within the next four to six months, and i think the process of foreigners coming to iran will probably start with a small to Mediumsized Companies from europe. They will come in first because theres no restrictions on europeans investing in iran even today. Its just the Reputational Risk and for the larger multinationals its probably going to take longer because they have to change their internal compliance policies before they can come to iran. Ramin, thank you very much. Appreciate your time. Ramin rabii, turquoise partners. So many in the diplomatic world are using twitter today and he said we call for greater brotherhood, unity and expansion of ties but he warned the world do not be deceived by the propaganda of the war mongering zionists. Iran and its power will translate into your power so the rhetoric, the hot rhetoric mandy is still out and about. Certainly is ty. The deal with iran could lead to a flood of new oil hitting in already oversupplied markets. The prospect of that drove oil prices to threemonth lows earlier and were seeing a rebound. Wti crude is back above 53 barrel, again 1. 5 . Well keep an eye on that as we go into the close in 90 minutes time but lets 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 alltime 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 nations 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 giant returning 2. 4 for the fiscal year that ended two days ago, june 0th and gold was. 1 shy. Calpers Real Estate Investors grew more than 14 . Investors watch calpers very closely because its seen as a bellwether for how other larger pensions across the u. S. Will report and many of them will report their results in the coming weeks. Okay. Stocks, as we mentioned, on track for a fourth day of gains. Whats happening with earnings season though . Will that push the market higher . Joining us is bill stone, chief investor at asset wealth management. Gentlemen, good to see you both today. First a question on the Energy Sector which is moving very nicely higher. Does the sector change now because of the iranian deal . You know, it may. I think a lot of our emphasis on the Energy Sector is actually trying to and this is a longterm view is just avoid investing quite as much in terms of commoditycensotti areas, you know, for instance. We have a pretty significant investment in the midstream area that really deals more with the fee side of the equation but certainly the added supply probably maybe pushes off the move up in oil prices because i do think over time oil moves up. Its just a question how soon. If the price of crude goes down it could be good for the refiners. What do you think, mark . Does the Energy Equation change for you from the investment standpoint now . Yeah, without a doubt. I do think its going to take a little bit longer for oil prices to increase and, therefore, its going to take you know even longer for obviously the rebound in a lot of these oil stocks, but, you know at this point in time really our focus is more on the the defensive sector so were kind of avoiding energy at this point. We really want to stick with the sectors that are having a lot of their majority in health care. Health care has had a big move up over the past year mark . Specifically hospitals in the Health Care Sector great performance year to day and great performance over the last year and theres a lot of critics who say they are do for a pullback. However, history has shown, you know, there have been really four major outperformance phases since 1978 for the hospitals, and and during those outperformance phases they have typically lasted 37 months. Weve seen 277 outperformance for 71 annually so theres plenty of room for these to run, even if you go back to 2012 and call that the beginning of the outperformance. Theres still another 100 of outperformance to be had there . Right. Over the past year two of your names there, hch is up 69 , Community Health up 50 . What do you like at this juncture, bill and how does earnings season play into it . You know i think we still like despite the weak retail Sales Numbers this morning, we still like the Consumer Discretionary area. I guess i wont give up on the u. S. Consumer. I think when you have the combination of rising incomes here in the u. S. , a job market thats Getting Better i think thats a a good longer term look that that will continue to move on. I would say we happen to also Like Health Care and lastly we like the financials which obviously this is the week to kind of take a look at the earnings, but we think the future looks good there as well. Real quick, since you mentioned the weak retail sales this morning, does that number push back the possible september liftoff for a rate hike from the fed . It certainly makes it a little tougher. I mean were still officially on september but i think you have to lower the probabilities at the moment certainly paced on the data this morning. Well keep watching for more data. Thank you very much. Bill, mark and you can also go to powerlunch. Cnbc. Com so see why bill says energy will be the biggest drag on the earnings season. Ty, over to you. Lowcost carrier Spirit Airlines lowering its guidance for the year and warning Severe Weather hurt Second Quarter results. Fastenal, make fasteners, nuts and screws saying its secondquarter profit rose 6. 7 and revenue fell short of expectations and the match group, subsid riff iac interactive purchasing vancouverbased dating site plenty of fish for 575 million in cash. Dont smile too hard there, mandy. I know youre amused. The match group operates match. Com, tinder you know about that one, and ok cupid. There are always plenty of fish in the sea. Empowering a lost generation starbucks leading a charge to hire thousands of people shut out of the job market. Why isnt Corporate America doing enough . Plus, shares of micron soaring 20 , a rival preparing a 23 billion take overof the chipmaker and it would be the largest chinese take overof a u. S. Firm. Should the u. S. Allow it . Weve got the profit waiting in the wings to debate those two stories next. If you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. Hurry, before this opportunity cools off. Share your summer moments in your mercedesbenz with us. Welcome back. A couple of my favorite guys are going to join us here in a second, starbucks leading a charge to hire thousands of people shut out of the job market, but why isnt Corporate America doing enough . Bill george Harvard Business school prove sorry and former medtronic chairman and ceo joins us as well as Marcus Lemonis, host of cnbcs the profit. You guys will be with us all during the next two hours. Were going to hang out with you. Lets talk about what starbucks has decided to do to come in and try to bootstrap young men and women, many of them disadvantaged, underskilled, who are neither in school nor working. It is a theres a lot of them, and theres a real gap here is this something that more companies ought to do or that the government ought to get behind in some major way . Im not in favor of the government getting behind it. Im in favor of companies deciding on their own that they want to have an initiative to employ people in a category that maybe dont have the same opportunity, but i still want them to be qualified, and so this isnt an effort or initiative to just have a handout. Want to be real clear about that. This is in part apprenticeships and Training Programs so that the individuals get the kinds of skills that can make them employable in a starbucks location. Tyler, thats exactly what this country needs. This is a very difficult group. A lot of these people have not been at work for the last year. Look at unemployment stats, four times, five times what they are for the rest of the population and i think we ought to be talking to young people at age 13, 14 making a decision, what do you really want to do . Maybe you dont want to go into math and science and english, but maybe you do have skills with your hands, and i think companies im so pleased though that howards got walmart, target macys microsoft. Hes got some pretty important big employers that can really make a difference. Telling people its okay not to go to math class now because if they dont want to theres another alternative at 13 years old . Im saying you may not want to go to college to major in math and you may want to learn enough to be a great carpenter, a great drafting designer to run computers. The age group thats targeted here is 1624. I understand. Theres a gap of people that are not in college yet, are we telling people at 16 years old, if you dont like your history teacher, the math teacher or the basic fundamentals drop out, you can go into this program and become an buena vista. Become an apprentice. I love the german apprentice programs, machine workers, automobile workers, done a fantastic job with people. Not Everyone Wants to go on to get a b. A. Or mba. They are trained to do something. Were lack skilled crafts people, skilled employees and thats the future. America is not at the low end. Starbucks and others are hiding at the low end. We need to get some people with skills but they need to learn those skills and we need to train them. The stigma needs to be taken away from those who choose not to go to college and do an apprenticeship and we need to go on to the next subject, a chinese firm preparing a 23 billion takeover of mikecron and others are now saying what about National Security concerns . Will this pass the committee on Foreign Investment . Thats a big question. This is a big deal not a trivial deal than may be the first of many. I remember back in the 60s with texas instruments, leading semiconductor company, licensed all the Japanese Technology and we saw that come back into the u. S. In the 70s and 50780s. National skufrtd is a big concern and ip intellectual property. Need a twoway street. I dont want to say Chinese Companies cant buy here because then American Companies wouldnt wont be allowed to buy in kroon but we do have to pass certain tests about protecting intellectual property and National Security concerns. Lets also pay the right price first. Who is paying the price, the chinese are paying the price . Lets make sure the price is right. Bills point about the security issue is irrelevant. I want to talk about the price first. Too low . 23 billion . Over a stock that had dropped in half though. Thats right. And youve got to look at where it was. Its up here and now youve gone from here to here. Remember the hubbub when this will feels to me like an even more sensitive area of technology. Why . Because its sfornlg,torage, not property. Its chip making right . Its storage, not processing. The markets have the technology they are going to get the technology anyway so we need a clear understanding of what they get and dont get. This is the last u. S. Based maker, by the way. After this its all gone. Maybe china should be focusing on developing their own technology. Oh, they will. They are. Using r d. And theres two regulatory bodies, our regulatory body and their regulatory body that wants something to say about this as well so i think thats a big issue. Twoway street issue is a big issue. I think so. I like the tpp, the transpacific partnership, i think thats really important. Thats the way to negotiate things. Need a twoway understanding with china and all the Asian Countries and then weve got to pass these other tests. Bill and marcus thank you very much for your thoughts on those topics. Many more topics will be thrown your way later on in the show. Okay. Guys, lets check out whats happening with the russell 1000 index. More than half of the bigcap names are near or in correction territory, down 10 or more from their highs and wynn resorts is among them but major indices are near their record level. The stocks that are keeping this market afloat coming your way. The name next. Happening with the russell 1000 verizon say neversettle. Tmobile agrees. Never settle for verizons overpriced gimmicks. Try the uncarrier riskfree for 14 days youll love it, or well pay for you to go back. The s p 500 sporting a rather meek gain this hour of about seven points. Nevertheless nine of the ten seconders are in green led by health care and the lone lag argued, the utilities down nearly a third of 1 . Gold prices are closing out trade right now. Were currently sitting at 1154ed to the downside. Silver, copper palladium and other metals all moving to the downside. To the bond market where Rick Santelli joins us at the cme. Rick . Well ill tell you what, mandy. The action today was all at 8 30 eastern. We saw the retail sales which was definitely on the soft side. As you can see on the intraday chart yields moved lower and weve been dancing around this 2. 40 level ever since. Remember, only eight basis points from a new high closing yield for the year but it might take a while to break through it. Below the market we have two areas of big importance, 2. 17 where we settled and the whole area from 2. 25 up to 2. 32. Look at dollar index, real since january of this year what will jump out at you is we have good support right around that 97. 40 area, and it looks like its not in any hurry to go anywhere. A couple of currencies we dont normally look at that are at rather extreme levels against the dollar and in the dollars favor. Looking at a 20year chart of the dollar versus the mexican peso. Close to an alltime high and dollar benefit. Next chart, july of 2013 twoyear chart, the last time the dollar was at this level against the south korean uan. False rumors in the market moving twitter, the at nat my of a stock drop. Theres the chart that shows it and coal has been a big loser, prices down 0 . The etf that tracks the coal sector off 30 . How coals collapse is impacting other stocks and sectors. There it is. Hello, everyone. Im sue herera heres your cnbc news update for this hour. Iranian president rouhani says a new chapter has begun following a nuclear deal with the world powers. In a live address to the nation he praised that deal saying that negotiators have reached a good agreement and that their prayers have come true. The trial of james holmes for the colorado Movie Theater shooting is expected to draw to a close today. Victims and families arriving at court this morning to hear closing arguments. At center of the trial is whether holmes was sane when he killed 12 and wounded 70 in the theater three years ago. Mexican authorities continuing their manhunt for drug lord Joaquin El Chapo guzman who escaped over the weekend from a maximum security prison. Officials releasing a new picture of him with less hair obviously and upped the reward for his capture to nearly 4 million. And a search is under way for seven people missing after Severe Weather hit eastern kentucky. Floodwaters that rushed through the area left one person dead. The missing range in age from 22 to 74 and more than 50 people who were stranded have been rescued. Thats the cnbc news update at this hour. Mandy, back to you. A lot of bad weather across a big swath of the country. Yeah. Okay, thank you very much sue herera. Lets take a look at what the markets are up to. The dow, nasdaq and s p all moving higher. In fact things started out a little shaky but have got better over the course of the day. I think were off the highs. Lets get to the trading action down on the floor of the new york stock exchange. Bob pisani, what are you watching . Well, we are modestly higher. I think the important thing is its really only 32 advancing stocks. Volume on the moderate side. Look at the s p 500. Weve held up with modest gains. This is the third day in a row that the s p 500 has been to the up side. Take a look at that. The important thing the retail Sales Numbers really are weighing on the, and not in a particularly good way so whats happening is the numbers were well below expectations, and this is causing the number of things to happen so q2 gdp estimates being revised downward by many firms. Bond yields are generally lower, and thats putting some pressure on the market because thats generally not good overall and its lowering the chances of a september rate hike. You can see the retailers are all down 1 , 2 thats fairly typical of what you see, including autozone. Elsewhere big banks are up because generally jpmorgan and wells fargo were good enough but the problem is the flattening yield curve will be a problem for banks going forward. Can you see this in the regional banks. Regional banks have had a great first half of the year on the perception that Interest Rates would be higher in the second half of the year. As you can see, they are not particularly doing anything today on that flat yield curve. Exxon mobil, other oil stocks on the up side and emp stocks are giving a lift to the market and remember something, this deal is not finalized. Nothing is going to happen until probably december or so. Guys, back to you . Bob, thank you very much. Big day of earnings folks, as the season really kicked off. Dip our toe into the season and focusing right now on jpmorgan which beat estimates. Shares up more than 1 . J j beat as well shares down 1 and csx reports after the bell. Shares are up right now. Were going to cover it all. Morgan brennan on csx and meg terrell on j j and kayla touchy on jpmorgan and they will tell me the three things that really matter about these these stocks. You first. Really three take aye ways for jpmorgan. Youre seeing the stock up which is reversing what it did in the premarket. Investors are trying to figure out exactly how to read it. There were a lot of bright spots, but a lot of the bright spots were overshadowed by head winds persistently hammering the Banking Sector and jpmorgan. Total loans up 6 but low Interest Rates are keeping margins under pressure. Thats not going away any time soon. Asset management see yet another quarter of inflows but they had that and finally Investment Banking, you saw really good Investment Banking fees but you saw trading come in mixed. Now that brings me to the second point that people are trying to figure out about jpmorgan and now other banks, too. Its exactly how volatility will play out in trading revenues. Unpredictable and unavoidable. It hit equities or rather it hit fixed income for jpmorgan this quarter and revenues down 21 . Meanwhile, equities fared well this quarter. Up 27 . The trading revenues . Trading revenues. And so they are dealing with china. They are dealing with greece but in previous quarters they are dealing with latin america. They are dealing with the fed and taper tantrum and liquidity in the treasury market so its almost like a choose your own adventure. Every single quarter theres something new that they have to figure out in trading and thats just going to be the new normal for those units. Finely the buzzer is discipline. Control what you can control and jpmorgan did that. They controlled costs and their capital and built their capital to the levels that they needed to be and its really all you can hope for. The yes but report from jpmorgan. How about johnson . Johnson johnson had a beat on both the talks and they matched on top line and they raised their guidance and weve seen the impact of currency. Thats a big thing for Johnson Johnson. Affected seams by 8 in the quarter. Now, another continuing theme that we say from j j the Pharma Business is whats its not bandaids . No, the consumer unit is the smaller unit. One that people know Johnson Johnson for. Finally a lot of questions on where to get growth in the future especially in pharma and that took a lot of questions about merger and acquisitions and acquisitions. What are they going to buy . I spoke to jpmorgans Mike Weinstein who said next six to 12 months they might starting doing more deals. Wondering where that will come from if the Pharma Business is the driver. Can it continue . And csx out after the sfwhel what are we expecting from them . A couple of years of gang buster growth for the railroad. Csx kicks it off for the Earnings Growth after the bell and analysts are looking at 53 Cents Per Share adjusted representing a 1 decline in eps versus last year. Looking for 3. 22 in revenue and one of the biggest things to keep an eye on is volume. Seen volume in the Second Quarters for all of the railroad declines and right now analysts are expecting volumes to decline 1. 1 . The biggest thing to keep an eye on is going to be coal. Cool is actually still a fifth of all revenue for Companies Like csx. Weve seen such pain within coal prices this year. Weve seen lagging demand both domestically and internationally so thats going to be a big thing to keep an eye on and lastly fuel surcharges. Those have been falling. Thats been a tailwind for a lot of transportation companies. Your airlines and trucking companies. Expect that to be actually a headwind now coming into this earnings for the railroad like csx because as the surcharges adjust low for customers thats weighing on the bottom line. Thats how the numbers work here. I remember the csx trains moving through western virginia bringing coal from kentucky and west virginia. Still bring so much of it but not as much as they used to. Thank you very much. As marcus said under his breath, youve always got to put a virginia plug in there. Thank you, tyler. Proud home boy. Greek Prime Minister Alexis Tsipras back in athens with little more than 24 hours to pass reforms required by creditors, but hell face some major heat within hardliners within his own party. Lets look at the greek etf, down 25 this year. We have chief International Correspondent Michelle Carusocabrera live in athens with a very special guest and here on set Marcus Lemonis, host of cnbcs the profit and quick word to you for the benefit of our viewers do not know about your background one greek parent and one lebanese. How do you feel about all of this . You know for years weve always struggled as americans to kind of find our way to the middle east for turmoil, the turmoil. Greece was always the place you can go and i dont know if its affordable anymore after this. Thats a big concern. In absolute turmoil. Absolute turmoil is the word michelle and turmoil within the Prime Ministers own party. How is he going to deal with this this . Reporter so far, despite the turmoil within the party, it really looks like the bill is going to pass when they meet in Parliament Tomorrow and we expect that regardless of all the internal trouble that hes having that in fact the bill will get done. Implementing it will be the next stage. Lets talk more about your tourism because marcus prout up a great point. Joining us is a member of the Greek Tourism Federation long involved in the greek tourism industry. Good to have you here. Thanks for coming. Greece was having a gang buster here for tourism and then this happened. Give us the numbers of how youve been impacted by the crisis. Well, last year we had 24 million arrivals. That was record of all time and we also had 13. 5 billion receipts. That was a record of all time. This year we were expecting 14 plus billion euros. However, despite the political turmoil we rare still going strong and were still optimistishing. As were speaking were 6. 7 up other the past six months january to june. Despite the political turmoil so it seems we are an attractive destination. Sifting through statistics, it look like you got a hit on lastminute bookings. People who had long planned to come, that number was way up but you also rely on what we call like a spot price, spot booking. Did that fall as a result of what weve seen on the front page of the paper everywhere. Actually late bookings that account for about 20 of the total were really going down as we measured them until the 30th of june when the referendum was announced. Now, as we are seeing recently from the system thats cooperating with them we see thats slowly but studly numbers are bouncing back so it seems that we are getting more and more michelle. And tourists are arriving again. Michelle this is marcus, i have a question. I feel like im getting bit of a gloszy overview of what you want me to believe is happening in greece but i have to believe quite candidly that the citizens have to be concerned because not only does this tax affect the visitors to the island but it also will affect the residents of the island and i have to also believe that people considering taking a trip to greece are probably going to cancel or postpone based on the uncertainty. I appreciate the success youve had i get the since that youre making things out to be a little rosier than they are. Am i misreading you . You certainly are. I am telling you numbers. Well youre telling me numbers about the past right . 6. 7 that is up so i am not misinterpreting anything. All im saying is that bookings are up late bookings have been going down over the past month, especially from the moment the referendum was announced, but late bookings are gradually coming up again. After all, i believe that the best thing to do is to ask your own reporters whether they have seen any turbulence per se because as ive sitting around the square right now, i dont see any turbulence. No one is saying theres turbulence. What im asking you is in the coming months with this increase in tax, how is it going to affect visitors and how is it going to affect residents . Has to be affecting some level of uncertainty. I understand the 6. 1. Thats a look back. I want to know what is happening forward in your estimation. What i hear you saying is no problem, its great. All we are saying is yes, we are concerned. We are planning ahead but were rather optimistic that we shall overcome. And i feel that tourism is the mainindustry. No doubt its a beautiful country. Theres hotels and restaurants getting together with latenight meetings to discuss how to incentivize people to offset the increase in tax and to provide a level of comfort and stability if im bringing my family there that i wont show up and there wont be total chaos so im assuming youre having those latenight meetings . You are assuming right, and i never used the greek origin word. I suppose that this is a word we do not want to hear because i dont see any chaos to be honest with you. Yes, there is a lot of concern. Yes, were trying to find solutions to capital control that have been implemented. We are also trying to make sure that tourists are not affected in any way, and we really believe and plan ahead that as of next week we will be getting into a space that will be better than was better before. Thank you for coming on and i appreciate you answering the hard questions. Okay. Thank you very much michelle. Ty over to you. All right, folks, Financial Companies fought dodd frank when it was drafted and in some ways they are still fighting it. How the gamechanging law affects the banks today and a fake news report briefly sent twitter shares up 8 today. Well talk to you about the anatomy of a stock drop next. Random . No its 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. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Hi my name is tom. Im raph. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here were here and weve got your back. Legalzoom. Legal help is here. Ew scripps jumping more than 1 after investor ceo Mario Gabelli said hes bullish on the stock on Halftime Report earlier today and wpx will be given 90,000 acres in the oil rich basin and wells fargo said profits have dropped as lower fees and businesses have resulted in weaker than expected revenue growth. Thank you very much mandy. It has been five years since the landmark dodd frank bill has signed into law changing the way Financial Institutions do business. Our john harwood sat down with Ohio Governor and president ial candidate john kasich to talk about that, the wall street culture and to which kasich has had a front row seat. Take a look. It was a fantastic experience to see the way ceos think, the way the board of directors work. I wasnt in that to do politics. I rary will talked about politics. I was there to try to add value to the teams of people who were trying to add values to companies. What did that experience tell you about what is right and wrong in the American Economy . How does it inform your reaction when you hear people condemning wall street and condemning the financial industry . I think there is an element of greed on wall street that is not good but when you look at the Banking Industry now with dodd frank, i mean one of the big problems we have in the country is that banks cant loan money anymore. One of the things that has come up, the issue of misconduct in the financial crisis and some people have made the point that no big wall street bankers went to jail. Does that strike you as wrong . If theres something to prosecute somebody for you prosecute them. Just because you do something thats greedy that can end up in failure doesnt mean you committed a crime, but you know what . The fact that you didnt committed a crime here theres a judgment that comes later about how many people get hurt and frankly thats a pretty tough judgment in my opinion. Interesting fellow mr. Kasich. To see John Harwoods entire interview with john kasich go to cnbc. Com speakeasy. Mandy . Okay. Five years later, however, regulators still have work to do when it comes to write inging old required rules. Mary thompson has more. Reporter doesnt seem its possible that theres more to do on dodd frank. A lot of the 2,300page reform bill has yet to be to be implemented and may not be for years. If dodd franks 390 rulemaking rifrmts, requirements, 63 are complete. Attorney greg lyons says has made the Financial System safer through higher Capital Requirements and living wills and other standards. However, he still thinks that all the restrictions on banks might be hurting the broader economy. There hasnt been a lot of work downto see what all these rules mean and how they sit together and what impact they are having. Reporter an opinion shared by critics of the law like Texas Governor be a baht and said he would support any candidate willing to roll it back and regulators seen working to make up for missed deadlines. 71 of the rules are complete. 17 are in the proposal stage while another 12 still need to be written. Much of what remains to be written is technical in nature and is concentrating in a couple of areas including Consumer Protections like credit cards and privacy, derivatives as well as mortgages. Also in the wings, headlinegrabbing rules on the ceo pay ratio, a rule the s. E. C. Said would complete this year but is unlikely to be implemented by 2016 and a final ruling on the fiduciary standard for brokers so certainly investors will be watching all of that in the days and probably years ahead. 100 stocks in the largecap russell 1,000 index are within 5 of their recent highs. They are the ones keeping this market afloat and we will name some of them after this short break. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Bring us your aching and sleep deprived. Bring us those who want to feel well rested. Aleve pm. The only one to combine a sleep aid. Plus the 12 hour pain relieving strength of aleve. Be a morning person again, with aleve pm. Twitter briefly spiked 2 before dropping again after a fake report resembling a bloomberg story said the Media Company had received an acquisition offer. Lets go live to eamon javers for the look of the anatomy of a stock drop. Were getting all too familiar with the market hoaxes these days but heres what we know about this one, information from a social media team has found out that the website with the fake bloomberg story on it was created back on friday july 10th. Its a website registered to a panamanian address using an anom mizer so we cant see exactly who it was, who registered and who controlled that website. Lets look at what happened today in the trading action. If you look at a chart of twitter, what you see is at about 11 39 a. M. Is when we see the spike in twitter trading going up. At the exact same minute the first mention of this on twitter itself was made by a twitter account made at open outcryer. Weve reached out to to openoutcryer to see how the person knew the website was out there to create the link and it went up dramatically and at 11 45 it was tweeted out that the site was fake and it immediately crashes back down to earth after that so a short lived hoax here. No indication as of yet whether this was stock market manipulation. Well have to wait and see what the stock market says. They have no comment. Progress is being made in the greek debt crisis its Ripple Effect is being felt wide and far including by u. S. Companies. Well bring you that story next. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . And welcome back. A developing story in detroit leading next hour as chryslers boss meese with the uaw as the union looks to get much of what it surrendered a few years ago back. Plus google news that may surprise you. Investable opportunities around the iran deal and what the s p 500 has done guys over the past five years that may help predict the future market sticking around and well see everybody in just a couple of minutes. Indeed you will. U. S. Companies importing goods from greece are facing quite a few challenges due to the greek debt crisis. Shortages, right . Absolutely mandy, but the biggest challenge for these importers is paying these distributors in greece due to ongoing capital controls. Take go greek, aio gurtd shop in beverly hills. Imports between 35 and 40 of his products from greece and has enough supply to last him a month. Recently received a shipment but hes unable to pay his business associates. Right now we dont pay because the bank system is frozen and we can place an order and then well resolve the financial issue with them. Thankfully they can continue to place orders but his greater concern is what lies ahead if products cant leave greece. He may have to switch to americanbased american frozen yogurt and another businessman says his suppliers are facing a cash crisis. Weve been informed by some of them that they now have to pay cash for their materials for the first time in 20 or 30 years. Cant help but think that there could be a Ripple Effect for our open terms with those suppliers. That could mean the store could have to prepay its greek Business Partners which for a Small Business is never ideal. Thank you very much kate rogers. That does it for the first hour. Brian, over to you. Thank you very much. Its now 2 00 on wall street 11 00 a. M. In silicon valley. The dow is on the rise again. Oil doing something surprising and detroit is in the news. Welcome, everybody. Im brian sullivan. Melissa lee at the nasdaq and Marcus Lemonis sticking around the next hour as well. Weve got a lot to do, the markets, greece oil. We have to begin in michigan because something is happening right now. Ceo sergio markiony is in detroit and kicking off contract negotiations with the uaw. The uaw reportedly looking to recover some of what it gave up during the financial crisis and our very own phil lebeau is at the meeting and joins us now. Phil . Brian just a few minutes away from the beginning of this ceremonial start to negotiations between the uaw and Fiat Chrysler on the new labor contract. The current one expires in the middle of september and today well hear from Fiat Chryslers ceo as well as Dennis Williams the president of the uaw, and while both men will talk about the need to Work Together to have a contract that rewards both workers and the corporation, make no mistake, there are some contentious issues and the biggest one will be the twotier wage scale put in place back in 2009 after gm and chrysler were pald out. That essentially allowed chrysler and gm to bring in a set number of workers and 19 an hour. When you look at how many workers have been brought in to Fiat Chrysler before then 45 of the hourly labor staff is at 19 an hour starting there. The rest are at 28 an hour. The uaw wants to eliminate or at least diminish the use of that twotier wage scale, and heres part of the issue. When you look at allin Hourly Compensation according to the center for Automotive Research Fiat Chrysler is at 47 an hour well below ford and General Motors. That has allowed Fiat Chrysler to rack up profits over the last several years and now the uaw is saying we want more of the profits and want fewer workers coming in at 19 an hourch we believe that they should be bumped up at least to 28 an hour. Well be here as sergio mashiony are here talking about the contract negotiations and ongoing pursuit of a merger for chrysler. Well hear from you again soon if not in this hour. Lets bring in auto analyst at ubs and marcus here as well. Do you expect this will end in a strike . I mean, i think if you look at gm and ford is theres clearly a risk of a shortterm strike and a one or twoday strike from leadership to demonstrate that they are fighting hard for the workers. Chrysler has a much bigger risk and could have longer of a strike because there is that gap. They are more relying on the tier two workers which the uaw leadership wants to shrink or eliminate and so theres just a lot more to fight if youre chrysler you know things are good in the Auto Industry colin. On pace for more than 17 Million Units sold this year. That would be the most probably since 2006. Does labor have the kind of operating leverage right now that they need to get a deal done in their favor . I mean i think you have a good market. You have gm and ford at very solid profit levels so you know, i think theres a lot in their favor in terms of this contract negotiation, particularly if you look at the last contract. Nostrike clauses at gm and chrysler so that limited the uaws ability to negotiate. Colin, this is marcus. I think the one thing that doesnt really work well in their favor is they are able to hire a lot of people at 19 an hour. A lot of workers are at 19 an hour and 65 at 28. That says that the supply demand is largely being satisfied at 19. I dont know why everybody would think that 19 isnt working, and so i think that argument is going to be a tough one because it doesnt look like it needs to go much higher. I mean i think if you look at it, i mean the uaw leadership, they do have the right to strike in this contract, they are very clear that they want to bridge the gap between tier one and tier two because they believe, you know same work same pay, and so i do think they have some leverage because of that strike impact and, you know i think there is you know some level of fairness. I think if you look at it in the context of the automakers you know, u. S. Labor is about 6 or 7 of their total sales so its actually relatively small today so even if they increase that tier two wage over the next two contract periods its actually not going to be very meaningful to the owners so its very manageable. As an ought ore investor would i imagine theres bigger issues involved. You pointed out the labor is a small cost and take a look at the stocks over the past year and ford and gm are down 16 . Chrysler is the only one with sizable gains. At this point, colin, what does the Auto Industry need to do to move the stock . I think both of them we like both gm and ford cheap valuations. Ford in particular, youre really going to see some momentum coming up as they launch the f150 and really sizable volume dealers. Thats going to drive, you know both market share and more importantly the bottom line in earnings so theres upside going into the second half and i think investors need to see. These are sort of showme stories and they really need to see that the companies deliver on the promised earnings and that will really get them going again. We appreciate your insight. Thank you very much. Marcus, youre taking the whole situation because for years you had labor with the power and after the financial crisis the bosses had all the power. They said its a tough market and well dictate the rules. Things have shifted back towards labor as things have gone well. How would you handle this negotiation . Things are only shifting towards labor because theres a high demand for autos and the manufacturing levels are high and i dont know that General Motors and or ford really all of a sudden need to blink. Should people get an increase and when they talk about shortening the gap, does that mean the 28 is going to go down and 19 is going up or everybody goes up . The 28 worker is not coming down just based on years of history. Nor should it, when you look at inflation, youre not going to bring down a wage. When i hear about shortening the gap, lets not say that. Were talking about raising costs for the manufacturers and ultimately thats going to do whatted to the automobile . Well you would say it would squeeze profits unless they are also able to summarily raise the price of their car so labor gets paid more mom and pop pay more for the cost. Costs plus manufacturers, not market minus. Marcus is right, too. It all rhymes. The u. S. Along with other world powers striking a deal with iran to try to curb its nuclear program. In Exchange Iran gets billions of relief from International Sanctions and the unfreezing of assets in the coming months. Oil not seeing a big move on this. In fact many analysts saying the deal already priced in which is why oil mif come down 7 a barrel over the past month. Well hear more on a moment in oil and well start with a senior policy analyst with the rand corporation. Ali, welcome. What sectors might benefit when or if western companies begin doing business with iran because iran is basically the same size population as california texas and florida combined. It is a sizable consumer market. Well first of all, the Energy Sector irans Energy Sector is pretty old. It needs to be updated. The iranian government said it needs up to 200 billion so well see a lot of european and Asian Oil Companies go back into iran total, shell. It will be harder for American Companies because u. S. iranian relations are still pretty tense and u. S. Sanctions on terrorism and human rights are going to remain once the nuclear deal is reached. But there are other opportunities as well. Iran and iranians in general Love Technology so apple is going to have a lot of opportunities in iran as well as boeing. Irans passenger jets are very old. They need to be updated and so u. S. Companies also have an opportunity to sell passenger jets to iran in the future. You dont see an exxon or a chevron or occidental or marathon going in directly. Could you see them however, like they have done in russia where they partner up with a local player or a European Company to at least take some kind of stake in a project. Is that possible . Sure. Thats possible if American Companies are working with european and japanese companies. There will be some indirect benefits, if you will, even service Companies Like halliburton might profit from lifting of sanctions and through a nuclear deal but, again, i think American Companies are going to be at a disadvantage unless u. S. Iran relations really improve over the next few years, and its difficult to see that right now. All right. Outside of business ali, 150 billion or so in frozen iranian assets are about to become available, unfrozen. Where will that money go . Do you expect it to go to Infrastructure Projects like they are saying, or will some of it find its way to a proxy military like hezbollah or the shiite rebels in yemen . Thats a really good question. I think most of it is going to be internally consumed. Irans economy is in terrible condition. The president Hassan Rouhani has told the people who voted for him that they will see improvement. Iran needs to spend money on infrastructure education, health care and some defense and policy needs as well so i wouldnt be surprise federal some of the money goes to irans allies, but most of it is going to be internally consumed. Ali, thank you very much for your insight. Will see it again. Lets talk more about the oil impact of the iran deal. Joining us is the Senior Analyst with oppenheimer company. When you look at wti, you see the pop there, brent with support. How do you interpret the news . Buy on rumor and sell on news. It has been baked in because its been expected for quite a while but also because we are uncertain. We really do not know how much and how long it will take the iranian government to pump more oil and to sell more oil. We dont know. People say 200,000 barrels. People say a Million Barrels. I do believe its going to take longer than many people think and its going to be a lot less than many people think. Thats why we didnt see the impact on crude oil prices. So when you say a lot less in terms. Amount of oil to come online. Correct. And a lot less when it comes to the impact what do you mean because most of the street was saying that if we had a deal it would be likely up to 500,000 Barrels Per Day coming up from iran and wti and brent would test 50. You have to understand that the Global Demand of about 93 million Barrels Per Day. Half a million Barrels Per Day is not going to really affect the balance too much. Iran can make up for whatever deficit the iranians have or they can pull back some of the barrels but i dont believe that were going to see Significant Impact on crude oil prices as a result of the iranian situation. Longer term, however, if we believe that iran is going to adhere to the agreement and open its border for the foreign capital and technology and the west would allow that, then were talking about a completely different ball game because the iranians have the capacity and the ability to increase production significantly over the next couple of years, not in the next six months or so but give it two or three years from now i think iran is capable of adding at least 1 Million Barrels a day. We keep focusing fidel on supply. Lets look at the other side and the research from pickering said that they saw chinese demand coming up nicely not only month over month but year over year. Do you believe well see a reincrease in Global Demand that would easily absorb any of the extra supply . Not very likely because the Global Economy has grown more Energy Efficient than any time before. We have a lot of switching for the first time right now. Our power plant basically running on natural gas so we are going to see fuel switching and conservation that will probably keep demand growth at about a Million Barrels annual increase and that is much more you know almost offset by potential growth in share production in the oil. Well leave it there, oil up a quarter. Thank you very much. He may have seen our show rundown because he mentioned natural gas, the perfect segue, because natural gas is overtaking coal for Power Generation in america which means tough times for coal and getting even tougher. Morgan brennan with us with more on the coal collapse. April of 2015 was the month that king coal was d dethroned by nat gas as the primary fuel for Power Generation. Compare that to five years ago, coal generated 44 and nat gas just 22 five years ago. Now coals been struggling for years but the decline has accelerated now and there are several reasons for that. Weve seen waning demand in china, the biggest consumer, a stronger dollar making more coal exports more expensive. U. S. Regulations for Greenhouse Gas emissions and cheap natural gas, which is under 3 and that makes it less less Expensive Energy source than coal. Now all of this has pushed central appalachian coal futures down 20 , a slide that Analysts Expect to condition. A complete collapse in coal stocks as well. Peabody energy is down 90 over the past year and weve seen similar moves in arch cole and natural resources, all of them now small or microcap stocks as weve seen this selloff just accelerate. Back over to you. Ive heard of nat king coal and now nat gas and king coal. Appreciate it. Thanks. Heres whats ahead. Despite talks of a deal should greece still live the euro . A man who has worked and lived through several defaults and delinquency and says yes. The one tech company thats been the poster child for growth appears to be taking its foot off the pedal. More on that coming up. Later on it may just be the biggest, boldest stock call of the year. One analyst sees nearly 160 upside on one name. Well have that name for you but only if you stick around so stick around. Do you remember when the world was terrified of a greekies exit and stocks got spooked . Two weeks ago. The dow is on pace for a day of four straight gains and the nasdaq and s p 500 are also higher, but things may not be as rosy as we think. Lets bring in the president of sri kumar strategies. You lived and worked in latin america and sat around and handled defaults and delinquencies and a lot of basically big sovereign problems. You dont believe this necessarily is over. Why . This is not solved at all because what they have done brian, in the last couple of days is to do to greece what they did in 2010 and 2012. They papered over the problem with more debt being added on. In the previous two changes the imf was part of it. The change is now 2015. The immf is telling you theres too much debt and it needs to be reduced. Still the same old story and the big story is the german finance minister saying many people in government, probably including himself, thought that grexit would be better than the situation in which they have entered into today. But from even from a greek viewpoint a grexit would be a lot better because they would have the sovereignty. What they have lost as a result of the most recent one is a loss of sovereignty because the European Group is going to be able to say what companies are privatized, at what price and sold to whom and that is just not an acceptable situation. And just a quick aside for our viewers and listeners who may view this only as a european problem. When you mention imf and loans and debt. Keep in mind folks, the United States esis the number one stakeholder in the imf so there is direct u. S. Money in any imf loan or bailout package, thats your money, america, going to greece. Now lets get back to the issue at hand. Whatt votes through these austerity measures . What if they agree to these cuts . Isnt it less of a debt problem . Havent they at least taken a hard step to actually solving the problem . Look at it tomorrow very likely as michelle has been reporting from athens repeatedly, they are likely to approve the measures tomorrow because the Prime Minister is going to do it not with the help of his party, because the party is split and the leftist factions are against this proposal, but hes going to do it with the help of center right parties which are going to vote for him. Having done that its not done yet because you have to implement, theres an implementation risk. Youre leaving it in the hands of greek officials who very violently opposed all of these measures so you think if im hearing you right and im running out of time they could vote this through. They could say all the right things and still not fix it . Absolutely. Look at it this way. Youre very cynical. No no im a realist. When you look at the 50 billion money set aside, for instance if that is not sold and if you want to sell and the greeks do not sell it what are the europeans going to do . You cant send the navy to attack and take it over . It is a sovereign, so given those circumstances in sovereign debt limitations and thats what i learned in different sovereign problems and thats going to be very much present here. I will remind our viewers who probably know this because they are a smart group of people a couple years ago the chinese took a huge stake in a greek port. The russians are starting to talk to the greeks. Theres a lot of geopolitical intrigue here as well. Pleasure buddy. Good to be back. Stocks by the way are at the high of the day. The Dow Jones Industrial average is not soaring but up 17 points right now making it the fourth straight day of gains for the dow and for the nasdaq as well. Well, it is hands down the boldest stock call of the month if not the year. One analysts sees 160 upside to a smaller cap stock. That name and the reason behind the call coming up and we are keeping a close eye on the Energy Market as the final oil trade is sent across from the session. Stick around. More coming up when power lunch returns. Investors having a pretty good day, stocks up 2. 5 and its been a great year for google as they have climbed nearly 11 from the start of 205 compared to a 7 gain on the nasdaq and as the stock goes higher and higher it appears the company may be taking its foot off the gas pedal. Google hired just over 1,800 new employees in the First Quarter of this year. Last year the company averaged nearly 2,500 new workers each quarter so is the company known for growing, growing, growing finally starting to slow down. Lets bring in jon fortt and Marcus Lemonis. Good to have you both. Jon, i want to kick it off with you. Really since february the stock has done nothing. Statement investors are looking at operating expenses 2014 expenses up by 40 . What are investors saying what are we getting for our money here . Yeah melissa, i think were due. Take a look back three or four years ago google went through a belttightning phase. What did they do . Axed google talk video, igoogle and three years before, that just after the financial crisis as a matter of fact, actually had layoffs. They laid off 100 recruiters a bunch of contractors, kind slimming down. Makes sense every once in a while to go through one of the cycles, a new ceo on board who is going to take a look at some of the costs they are going through. Not to say that the growth wont be accelerated. Headlines were they are slowing down on their research will do fewer things. Larry page is back at ceo and wants to focus. Yes, that doesnt mean its a change for a long time but just for a few quarters. Marcus i would imagine this is a phase that everybody goes through, all companies go through this growth spending phase, sort of a maturing company phase. At the same time google is known for these pet projects where investors say, you know what, that doesnt really make sense to me in terms of googles business for search but in terms of internet balloons and selfdriving things like that google can afford it because it has tons of money. How does it preserve the sense of entrepreneurship and investment in these smaller projects which may give them intellectual property and at the same time tighten their belt . Melissa i have to remind myself that you and jon dont work at google because my reaction to this is not a good one. When we talk about costcutting think about what Companies Across the country are doing to cut costs. That doesnt mean were not going to hire as many people as we did before. When youre talking about shrinking sg a, talking about get into the core of the business and looking at the frills and the things you know you dont need and so when i see a company and cfo like ruth say were going to require people to do is fill out a form forecast who you are going to hire and what youre going to do with them thats called a budget and a forecast so i think putting those sorts of disciplines in a business is a signal to the market that were going to take our business seriously. The sc a at google apparently according to ruth, is a little out of whack, so i really worry about it. All right. Maybe this is a good first step with google shares up 3 . Thank you guys johnn and marcus. Oil took a turn lower on the news of the iran deal but now its higher. A look at that when power lunch returns. If you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. Hurry, before this opportunity cools off. Share your summer moments in your mercedesbenz with us. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Hello, everyone. Im sue her rara and here is your cnbc news update at this hour. In jerusalem israeli Prime Minister Benjamin Netanyahu calling the Iran Nuclear Agreement a, quote, stunning historic mistake, end quote. Later in a phone conversation with president obama, he expressed concern over the deal telling the president it will allow iran to arm itself with Nuclear Weapons in 10 to 15 years. Back home, republican president ial candidate jeb bush echoed netanyahus concerns with his own statement saying the agreement was, quote, dangerous, deeply flawed and a shortsighted deal end quote. The department of justice announcing a Ground Breaking settlement to resolve allegations that honda discriminated against my north borrowers in its lending practices. Honda agreeing to change the way it priced its loons an will provide 24 million in compensation for alleged victims, and the family of a new york han who died after a Police Officer put him in a chokehold addressed reporters today. The family says do not confuse money with justice after word of a nearly 6 million settlement with new york city. Eric gardner died almost a year ago after Police Stopped him on suspicion of selling loose cigarettes. And that is the cnbc news update at this hour. Brian, back to you. All right, sue, thank you very much. Lets get right to Jackie Deangelis at the nymex for the final oil trade of the day. Hi good afternoon, brian. Settling price pore r for wti, 53. 54 and saw a reversal after a drop this morning after we got the news of the deal with iran and what trade remembers telling me is weve dropped 12 in the last month alone in anticipation of this deal so thats why you saw a little buying today. We also had a weaker dollar and there was a rumor, and i repeat this is just a rumor, floating around in the marketplace that opec may call some sort of a meeting to discuss the production issues in the international marketplace, but, of course, no reports of that just yet, so traders brought up here about an 80 pop on the day. Back to you. All right, jackie thank you very much. Time now for sports talk. Analyst recommendations on the stocks you immediate to know about every day and weve got a big call and lets start at the fingand seems like a great place to start. The first stock, sun power. Goldman sachs, out with a buy rating and a 37 target about 40 upside to here. They say the companys opportunity is yet to be fully appreciated by investors and they say that unlike many pure play Solar Companies this is more of a solar supermarket as they call it, offers a little bit of everything on the same call. They start first solar with a neutral rating. Our second stock here mike ron technology, big possible on the wall street journal report. Xinhua has made an offer from the mike ron valley at 21 bucks a share. Credit suisse is out saying the deal is highly unlikely but the offer highlights the growing strategic importance of memory. Shares are undervalued at current prize, according to this analyst and the speculate in the sector can help put a floor on the stock. Urban outfitters defending the name upgrading it to a guy, price target about 50 pucks, 40 upside saying this t shows concerns over the anthropology chain may be overblown and the store brand is quote, on the mend. They call the stock a high quality story. Hasnt been lately. Down 25 off its 52week high. Buffalo willed rings, stock being upgraded. Secondquarter earnings could be noisy because of difficult comparisons to last years world cup and high wing costs but the risks are well known by investors and a pullback in secondquarter noise an opportunity to buy the stock. Be aggressive. Dont be chicken. Now for todays under the radar i know. This is a big call on a smallcap stock comes with warning. Its a very high price target so, you know and well get to it in a second. The name of the company is ocular therapeutics ticker ocul. A Research Firm is trying to put it on the radar in a big way, start coverage with a buy and a 65 target. Stock at 5. 50 a 65 target. 160 upside even with todays gains. The analysts basing that on a peak sales estimate of 1. 4 billion. Say the Drug Delivery system ocular has a good approach. Not the only bullish analyst out there. This was a 12 stock in mark. Its down by half. They are out defending the name, i know youve got something to say. Well, i mean, the decline, specifically because a second phase three study on that inowe rate issive Drug Delivery on system which is a plug thats put into a patients eyes to deliver drugs directly to a patient after cataract surgery, that failed and that just shows you the real risk with the sort of one holy grail sort of product stock. I know. And had the debate shall we talk about it or not, heres the thing . Exactly. Over 1 billion company, still 500,000 market cap, cowan covers it btig covers it and youre making an excellent point. If you bet on a biotech better bet whatever they are doing is going to work. Strong stomach, got to have one. A different biotech with stomach problems. Thank you very much ocular. The headline june retail Sales Numbers came in weaker than expected this morning, but headlines can be a little deceiving because much of that was in car sales that came off a red hot may they could not duplicate and the Consumer Discretionary stock sector sitting at an alltime high. You like Consumer Discretionary stocks even with a new high being made how come ari . The technical action has been very positive over the past few months. If you look back at the volatility in the market in the past few weeks, you look at the Consumer Discretionary spdr ticker, trade ders not want to sell this xly spdr they have gone to the upside and led the breakout levels and the breakout level is now a nearterm level 6 support. The trend for us has been the relative level of discretionary relative to the s welcome back to power lunch. Breaking news on. 72, Steven Cohens Family Office his familymanaged head fund. They are up on assets totaling more than 11 billion so the strong interation of steve cohens hedge fund. Thats 1 billion in profit on his own money. Thats right. And would i guess the 11 is actually even a little low. Thats a good month, kate. Well thank you. Its a good month, probably a good quarter as well. A lot of zeros. Kate kelly, thank you very much. All right. Right now the s p 500 is up about a half percent and just about 25 points from its alltime high. Dominic chu is joining us now looking at the stocks that are helping keep this market afloat. I guess steven cohen is helping keep the market afloat. He could be. The kind of profits that a guy like steve cohen is generating is really pretty staggering. Remember yesterday we talked about all the stocks in the russell 1000 broader index that are in correction or worse territory, over half of them. That begs the question if were still near record highs ma what about the stocks helping to lead the way higher . These are the important ones because 2,000 of the russell 1000 stocks are just at or within 5 of their highs for the year so they are the ones keeping this market afloat and they are important because 18 of them are actually worth 200 billion or more and those mega cap stocks are helping to kind of keep this market afloat for the broder indices. Take a look at 1 of the 18. Its mastercard. Year to date its up about 11 . That move higher that is helped propel it to a market value here of 109 billion, so one that has a lot more impact on the overall markets because of its market value, again, a bigger size. Another one as well. Amazon. Com hitting record highs just in the last day or so hit a record high today. Up 51 year to date making it worth 217 billion so another big mega cap stock helping to propel things higher and one last thing, spoken about it all day today, facebook shares worlds biggest social network, up 15 year to date very impressive, but now worth 253 billion. Stocks like these are ones helping give it a boost and help keep things afloat for the Broader Market and that move for facebook 253 billion make it worth more than jpmorgan chase. People helping to keep the Housing Market afloat by selling some. Thanks very much. Not just certain stocks supporting the stock market. Technically Something Interesting is happening again and again. Were going to go to the telestrator. This is always fun. Take a look at this. This is a fiveyear chart of the s p 500, and the orange line is the 200day moving average. If we go back four years here here here here and just right now, you can see five times over the past four years we have tested that 200day moving average and the market has held and taken back off. Let is bring in matt mayhle as well as steve wineback of citibank. Matt, you pointed this out as well in some of your morning notes. How technically strong are we right now in the market . Well there are some concerns, of course because the market has narrowed a little bit. Fewer stocks hitting 200day moving averages and weakness in some of the key Leadership Groups especially the transportation index which Everybody Knows about. The ability for not only the s p to hold its 200day market and move off it shanghai and germany and france and the other groups like the xlk which is the technology etf, all these things bouncing strongly off the 200day moving average and is very important and should be hopefully bullish for the long term. Only been a shortterm bounce. Right now thats very important that we held that level. Steve, one thing i love about your work and steam at citi group you have all sorts of proprietary indicators as well mott just technicals but you look at all different stuff and when you factor them in right now do you remain bullish on the overall u. S. Stock market . Reremain bullish. One thing your chart showed if you looked at it closely is the rate of improvement in the 200day moving average is slowing down some. The u. S. Market has done exceptionally well. We think it will do well and we think corporate profits have been underestimated yet again for two and a half years of earnings reports, and thats propelling the market higher. We think the economy will grow and were on our way to higher asset prices but we dont have both accelerating Economic Growth and easing Monetary Policy in the United States which has proven to be even smaller. Im going to take a chance and go back to the telestrator and i know you cant see it and you know what im talking about and ill highlight. Your concern sounds like the pace of the gains has sort of rolled over, right . Is that what im hearing . Its just a slower rate of improvement. The ascension rate is not as much. The rate at which everybody is getting rich is slowing down. Yeah. So do you expect them to not get rich in the future then a year or two out . Is it going to be lets avoid losses rather than accumulate more wealth . Well i would think that if we go beyond two years, we open real question marks, but i think for the next year year and a half, we will do well. I think that some of the International Markets will do better. Just take a look at what happened last week. The s p was 6 off its alltime high. Its now just about 1 off its alltime high. Europe, you know was off 14 from its alltime high and has bounced back more. Yeah. So i think that there are more opportunities for catching up in some of the other markets around the world. Okay. Quickly matt maley, one thing out there that does concern you the most, what would it be . Well its the action of the technology stocks. You know the correlation between the xlk that i mentioned earlier, the etf for the Technology Group and the correlation between that and the s p has been incredibly strong for not just this year but for the last few years. They started to underperform in late june and now they have bounced back a little bit, so if they roll back over and start to underperform again, i think the s p will follow it lower and keep an eye on group and Apple Computer will be a key to that whole situation. Great discussion, guys. I wish the tell administrator used kept up with it. Thank you. Well the markets seem to keep going higher but theres still plenty of reasons to worry. Will the bears come out at the big delivering alpha contest tomorrow . Well find out. Back in two. I do this every day with 1,000 in there. That drives my trading. It gives me ideas all day long. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. Lets go out to detroit. Phil lebeau is speaking with sergio marchione. Will there be a merger for Fiat Chrysler . Let me get to the first part of your question. As usual its fairly complicated. One of the great things about having done the capital junkie pinch back in april than having sat back and done nothing about it in the interim, it allowed me to read all the commentaries. I found tom dick and harry expressed a view. Cant be done. This will not work, all that nonsense. We are just about ready to release q2 earnings. Well make the call. I think we keep forgetting the fundamental premise of the pitch. The pitch was there is a better way to run this business that benefits everybody. I worry more about the but collar. We need to be Strong Enough to withstand events of that caliber. I think that the creation of a combination with fca would give rise to something of that caliber. Not because of me, but well get it done. But the question becomes for a lot of people, so much has been focused on fca and gm getting together. Have you had conversations with any other automakers, at least conversations or is gm the only conversation . One of the things that comes with this job in addition to the best part of it which is wearing this blue sweater once every cycle is that i end up meeting a lot of my colleagues in this business. Right . Capital junkie was not what i would call a noncontroversial pitch. It impacted everybody. It spoke about them us. Obviously the conversation went on and has been had. But are there conversations and conversations with ceos of other auto makers . No. There have been others who said i think youre right. We should do something about that. But thats it . I havent sat down and shared my plan with anybody else. Ive done a lot of work on the inside. Last question. Can there be a strike avoided at the end of this occurring contract or do you think its inevitable we might see a one or twoday strike . Im going to work my ass off to avoid it. Given what i said about Everything Else we lived through, it would be a failure on my part to allow that to happen. Phil lebeau with Sergio Marchionne in detroit. Music etta james at last plays throughout sometimes, at last doesnt happen at first. Your dad just kissed my mom. Turning two worlds into one takes love. Helping protect that world takes state farm. Can a business have a mind . A subconscious. A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Moments ago you heard Fiat Chrysler ceo tell phil lebeau he will work his butt off to prevent a strike. Do you think there is chance of a strike . Youre darn right. You have the gap of 28 and 19. That is a gigantic gap. Its going to be high stakes poker for the manufacturer. Labor workers feel they control that momentum. Youll meet at the finish line. Its been a pleasure. Check out the profit tonight. Another great show. Before then, in between the two is fast money. What do you have . Right. Well talk about biotech stocks. Look at ibb up 49 . A year ago janet yellen told you biotechs look expensive. She was wrong. Well tell you what to buy on fast money. Four up days in a row for the dow. More on Fiat Chrysler, greece, oil, et cetera. See you at 5 00. Meantime, closing bell starts right now get your power lunch power lunch cnbc. Com. Welcome to the closing bell. Im kelly evans at the new york stock exchange. Im bill griffeth. Oil turned around, turned higher. I know one day does not a trend make. Its counterintuitive. It was initially selling off. It was selling off on the heels of that Historic Nuclear Deal reached with iran but is now up 1 . Well break down what is behind that move in a moment. Not like we had great Economic Data here. Playing tricks on investors another fake story about a twitter takeover causing a volatile move in the shares earlier today. Well bring you the anatomy of a stock market hoax. Yet another stock market hoax. Micron shares soaring by
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