Was about 40 points of the dow was a bounce of yesterdays selloff, the rest about greece. That will do it. Were looking at the dow of 128 points at the moment. Crazy story, the irs says hackers stole tax info from 100,000 accounts. We have former Homeland Security secretary Michael Chertoff to talk about how to fight the growing cyber threat. Its not just at the irs, its everywhere. You know about that. Esen isis threatens a cyber war of some kind pfr well talk with secretary chertoff. As we wait on palo alto to report after the bell. Heres where we stand in the markets. The dow up about 130 points. Thats 0. 7 . The nasdaqs gain is double that, 1. 4 . We have big movers were going to get to in a movement in the chase space boosting that 70 points. The s p 500 up 19 points good for 0. 9 . 2123 the level at the moment. Lets get to our Closing Bell Exchange for this wednesday that feels like a thursday. We have jack from index financial partners, david kelly from jpmorgan funds, and our own steve liesman, and Rick Santelli joining us as well. David kelly, how seriously should we takes the words of the greek Prime Minister when he says we are close to a deal with our european creditors . Well, this is a play in many acts. Theyve said that before. I think the greek sounds more optimistic than their european partners. They may be close to a deal but it could easily fall apart. They need real cash by the end of the summer. I think theyre more likely to stay and get a deal than not but still a risk out there. The important thing is europe can now survive without greece so greece needs europe much more than europe needs greece. I think the Global Economy can get by either way. Weve had evan on the show saying he thinks the best thing for the u. S. Market is ifs greece leaves the eurozone entirely. What do you think would be better greece to stay in and the drama continue to unfold and be a headwind or at some point as some officials have been hinting in recent weeks, let go . You know what i think the best thing would be to let them go. Look, how often can you cry wolf . This is exactly whats been happening over the course of the last few years. If theyve been serious and they really, you know, if you think about it theyve been doing this hap heartedly. They need to collect taxes. Something that nobody has been doing in greece for years and years. So unless they can get real structural reform were going to continue to go through this every six months to a year. I think that best thing that probably happens in europe would be for greece to probably either let go or to take some of those greek assets and collateralize them using Something Like the Block Chain Technology to release some of the capital within greece. What do you think of all that . To some degree the risk on trade came off a bit as a result of the comment from the greek Prime Minister, dont you think . You know down here they pretty much look at it like ask ten economists a question get 15 different answers. When it comes to greece blame the economists, go ahead, rick. Cant help it. So i would say that nobody knows whats going to go on with greece, like nobody knows what normalization will look like in the u. S. We overlook the facts to play the chase the tail game of insolvency, structural reform that covers most of southern europe, all those dont get talked about. Whats going on with greece is a political solution theyre looking for, really doesnt have anything really to do with economics. Its always been all about pom ticks with the european commission. I dont think there is an answer that we can know but one thing im assured of for every positive headline traders pretty much look for the half hour time lapse and look for a negative one. The answer to greeces woes as suggested in the journal op he ed about America Today is simply growth. I think so. The great question about whether or not the austery can lead to that growth or do you end up digging a hole deeper and harder to get out of. This is one of the days you have an existential market crisis year. I was with you and evan and sara trying to explain a 1 decline in the market, and i said i thought the Economic News was a little better not quite sure then come in today and youre 1 higher and wonder why we didnt take the last two days off and net zero in terms of Market Movement and just enjoy the beautiful summer weather. By the way, steve, ben bernanke as you know out speaking, in south korea, yesterday we had Stanley Fisher telling us not to obsess about the first rate increase ben bernanke is saying not to fear the first rate increase. It seems that fed officials and former fed officials are setting us up for something here. Thats for sure. What they want to do is at all costs avoid a taper tantrum. They want the flexibility to move and get a picture of rick when i say this because i wonder how hes going to react, but butt the thing is they want the flexibility to move. I got you pegged rick right, without having an outsized Market Reaction. Theyre very concerned about not just the Market Reaction but the knock on effect to the economy of an outside move in Interest Rates and an outside move in the stock market china saying hey, guys, its coming be prepared so they can do it and not have that outside reaction. I hope ben does better with this than, of course, subprime. Im sorry, you know they are the drama queens. I have three daughters, i understand drama. The drama isnt the markets. The drama is the federal reserve. Left, right, center up down going to normalize, not going to normalize. Data dpentsds dont talk about cpi. Rec, rick thats not thats not where the drama is. No. I think the drama is in d. C. The drama is not with the fed, its with d. C. Rick. If you had serious progrowth policies the fed wouldnt have to do what theyre doing. Oh, come on. That seems to be the entire situation. Governments create growth and wealth like ticks create blood. One at a time. Write that one down. Youve got a double engine plane and one of them is sputtering. It cant get any growth off the ground so youve got the fed doing Everything Possible to keep the thing going. Look what are they doing . Whats Everything Possible . What is Everything Possible . Keep rates too low forever . Youre yelling in my ear. Guys david kelly theyre making money easy enough to get and withstand through this crisis. We got news to get to in a moment. Not so easy for people. Its clear coming out of the weekend, pretty much everyone putting out research talking how america doesnt have the growth productivity growth in particular, that it might have had from the 95 to 05 boom era. Where does that leave us . Doesnt that mean the fed should raise sooner . The point is were much closer to full employment than people realize. The bic issue is not that demand is soft. The demand will pick up. The economy is plagues possum. Going to wake up in the second half and Second Quarter. We only get a few more quarters above trend Economic Growth before we hit full employment and because theres no productivity growth, no Labor Force Growth the economy will have to slow down. That is why the other part of washington needs to be awake because we need to do things to enhance longterm productivity growth here and get faster growth. Just have to be careful with that possum plays possum too long it becomes road kill after a while. Can i just say one thing which is that yes. Its hard to do the look out your Window School of economics and think that the productivity numbers are right. I really have my suspicions there. Oh, yeah. Since theyre going down they must be wrong. I lets do revisions, rick. On productivity. Ask yourselves two questions, why is everybody buying all this stuff that is resulting if its negative productivity and why is let me finish the government cant create it why are they hiring people and creating negative productivity out of that. If you have that negative productivity you dont bring people on in that probably not very good jobs parttime jobs overestimated jobs, maybe the list goes on. Even a period to catch up. We have to get to news. Theyre in the booth on their knees using words you cant use in scrabble. We have dominic chu joining us right now with news on the Semiconductor Stocks we acknowledge is powering the nasdaq higher. Powering the nasdaq higher so the big mover this afternoon so far guys is broadcom spiking sharply and now taking another leg higher to be up by about 20 . See theyre near the best levels today. Thats after a wall street journal first reported the wireless Chip Companies in advanced talk to be bought by avago. If this deal were to happen one of the biggest tech mergers of all times. Over at sp and advisory it could rank as the third biggest of all time in terms of technology mermgers. Since it has headquarters in singapore and san jose it could be viewed as the biggest foreign purchase of a u. S. Tech company. Shares of avago are higher. A bloomberg story that came out recently here, says that a deal could come as early as tomorrow and that a source familiar says it could be a combination of cash and stocks. Thats what powered the next leg higher in the last few minutes or so. Look at shares of altera on the semiconductor side theyre higher. Some renewed chatter intel might be looking to resurrect deal talks there. Graphic chipmaker nvidia getting a boost today helping to boost the sector overall helping to propel the market the ticker smh up by about almost 4 . Very much a sector an Industry Group to watch. This, of course, now multiple sources reporting a deal could be imminent for avago to buy broadcom according to the wall street journal and bloomberg reporting. Thank you. Jack just a quick word. Huge shifts under way in the chip industry. What do these mergers or the space of deal making tell you . Well two things. One, money is cheap and we know that so im surprised were not seeing more. More important fact is that were seeing the maturation of that industry. You know think about it that way. Look semiconductors over the course of the last few years have become commoditized so i think that were going to see a little more of that and eventually well probably end up with about three or four or a handful of companies that are running that entire show. Like breaking news otherwise this time out of the wearables industry. Kayla tausche is here with us at the New York Stock Exchange with details on that. Hey bill. The competition in that space has turned into an allout war. Wearable Health Tracking company jawbone is suing five former employees and their current employee which happens to be its closest rival fitbit alleging that fitbit has not only been rating its employees. The suit was filed moments ago and claims that in recent months, quote, fit bit recruiters contacted an estimated 30 of jawbones work force including at least five employees to join fit bit each of those bringing along access to and intimate knowledge of key aspects of jawbones business. Before the employees left the suit alleges they used thumb drives to download files and forward some of them to their personal email addresses and its confidential data included information like an intricate road map to the companys strategy supply chain contacts pricing information and what the company calls, quote the equivalent of a gold mine to a competitor. Its not just any competitor here. Its a competitor that is on file to go public a profitable competitor that will be selling its story to wall street in the coming weeks and one of the risk factors incidentally in fit bits Regulatory Filings its ability to hire good talent. It says competition for highly skilled personnel is often intense especially in the San Francisco bay area where were located and we may incur significant costs to attract them if we fail to attract new personnel or fail to retain and motivate our current personnel our business and future Growth Prospects could be severely harmed. Now from evaluation standpoint fit bit is a david to jawbones goliath the former worth less than 1 billion the latter upwards of 3 billion. Jawbone says it has suffered monetary, competitive and irreparable harm. This is a winner takes all market. Jawbone wants to make sure the winner is not fit bit and doesnt come at jawbones expense. Weve reached out to fit bit for comment and we will update you when we have that. The competition is getting very heated and personal. Back to you. Sounds like it. When did fit bit or expect or we expect them to see them go public . An expectation it would happen in the coming weeks. They just filed their s1 that gave us the first look at the financials a couple weeks ago. So it was expected early this summer. I think that they were hiring a lot of these people at least thats what the lawsuit lays out, in the months leading up to the ipo to sort of bolster their work force, so it will be interesting to see what fit bits response to this is and whether it does, in fact, affect their road to ipo. All right. Kayla, thanks very much. Thanks to our Exchange Panel as well today for their comments. Speaking of jawbone. Take your mike off now, steve, its okay. Were done. 45 minutes to go into the close. The dow up 133 points on the session. The s p 500 remember all these bouncing back from the tough session yesterday we were talking about. The s p at a 2124 the nasdaq up about 1. 5 on the session on big, big moves in the chip space we were discussing. When we come back live to that code conference out in Southern California where a top apple watch executive just finished speaking to the congregation and what he said. Two top apple watchers weigh in on apples pipeline of new products and Services Still to come. And we also have a lineup of heavy hitters. Former homeland is security secretary Michael Chertoff and the ceos of mastercard and Toll Brothers will join us on the program. Stick around. Closing bell continues after this. More and more, data is visual. In fact, the number of mris has increased by ten percent a year. And a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. Because its so challenging a Research Project is teaching ibm watson to see. In the future, it could help clinicians spot key patterns quickly and precisely. Ibm watson is working to make healthcare smarter every day. Welcome back. With the news alert on nike dominic chu returns with the details. Kelly bill nike shares are moving lower and taken that leg lower in the last half hour or so on the heels of todays news of all that scandal at International Soccer governing body fifa. According to allegations by u. S. Law enforcement officials an unnameddsed multinational Sports Wear Company may have been involved with bribery in brazil. Nike is not named in this indictment in any way, shape, or form however some of the alleged misconduct took place during a time when nike won a licensing deal with the Brazilian National soccer team. There has been no proven link between these two events important to point out. Nike has put out a formal statement on the fifa investigation. They say, quote nike believes in ethical and fair play in both business and sport and strongly opposes any form of manipulation or prior bribery. We have been cooperating and continue to cooperate with the authorities the latest on fee na having a market implication on shares of the biggest sports wear maker out there, nike back over to you. Dom, thank you very much. On we go. A key apple executive now overseeing its new watch just finished speaking to the code conference there in Southern California. Josh lipton is there. What did he have to say, josh . Well bill Jeff Williams is the man in charge of Apple Watch Development and he was just on stage here at this recode conference. He described spobs to the response to the watch as being fantastic though he wasnt willing to give us hard numbers at this point. We decided to do that right out of the i mean at the very beginning we decided we werent going to release data on the watch. We released maybe too much data today and we didnt want to we didnt want to do that. Wait wait wait. Lets go back. Youre not secretive enough today is that your point of view . I think we spend too much time thinking about the numbers and spending time on that and we would rather spend time making great product. Now Jeff Williams might not have been willing to give hard numbers, but analysts certainly are. The team at Morgan Stanley thinks apple will sell 36 million watches in just the first 12 months. Now switching gears apple was making news for another reason as well specifically there is a text message that can disable iphones in a statement to cnbc apple saying they are aware of this imessage issue and going to make a fix available in a software update. I can tell you, Jeff Williams was not asked about that issue today. He did talk about the upcoming apple developer conference thats on june 8th and you can certainly expect to hear a lot more watch news at that point. Guys, back to you. All right. Josh, thank you. For more lets bring in a couple guys who keep an eye on this sector alex ghana and thank you for joining us. How would you character