j.c. penney. >> finally some good weather. we have all been waiting a long time. that will do it for today's edition of power lunch. >> street signs begins right now. >> get your game faces on. you are looking at the second annual cnbc stock wrap. google won it all last year. >> is that like me? >> hello and welcome to special edition street signs.ç >> each team drops to one stock per round.

all the way from today until the end of the trade. >> just a little reminder if anyone out there was in doubt this is a fantasy portfolio and it's not real. the players are not actually buying these stocks are real money. >> from kkm financial. >> mandy's mavericks. and just the confusion and analytics and they are ready to go. >> the team is great.

they have got an esteemed commentator. a mad man mr. eagle cramer. rb. >> now let's find out who is going to get the first pick in the first round and for that we have a very special guest. it is going to be theç judge as well. we need to know. do the coin toss. i do believe it is going to be -- >> the mavericks. come on guys. a little bit more excitement. >> so engrossed in thought that they couldn't throw papers. crash talking begins. you are on the clock.

you have got a few minutes to make your pick. get to it. >> okay. in the meantime let's get some real trading action. bob is at the nyc. first to you because the markets are our bread and butter. what is going on in the stock exchange today? >> we're flat. we have seen the marks hold up. simp pli on rotation twochlt weeks ago it was all about defensive names. this week it's been largely about more cyclical names so materials and energy stock have been doing well. these rotations get shorter and shorter and shorter. now we have had three or four days of rotation. now the market isç simply flat. the one thing everybody believes is that the central bankss are behind everything. next week we will have the ecb meeting.

we know what the japanese are doing. right now markets are on wait and hold. let's go over to chicago. hi, rick. >> i like what you said. everybody wonders with all of these programs and the rules of the game for picking stocks. maybe that makes it very real like everybody else. this week two charts summarize the entire week. going to be the lowest yield close but the other one might be a surprise. in the european union. that's the uk. the pound has a huge week. best close since february. i think we need to apay tension to how their economy does and post the good number that they had yesterday. >> thank you so much for that. i just want to remind everybody that we are in the middle of the 2013 cnbc stock drop. right now in the war room, the mavericks. my team is there discussing which is going to be their first

stock pick i'm going to leave them to it and let them concentrate and get back to the gang here. >> how are you? >> james. very formal. >> it is a special day. >> herbert greenberg. >> andç amanda drewry. what do you make of the markets? >> this kind of afternoon turn around has become really what i am expecting. i said that was unusual. there are people who come in all day. they take advantage of whatever weakness there is. it is the way the mark was in the 90s. >> is it people or machines? >> i think it's people. it may be people from other countries who know that their currencies are worse than ours. it could be mutual fund money that is coming in. you remember the 90s. there was always someone under. >> we're at the end of a 30 year interest rate cycle.

so now it's a stock picker's market. >> yes. >> you rand a rej fund for a long, long time. you got out in '01. you said i don't understand the market any more and i'm stopping to understand this market right now. nothing seems to bring it down. do you understand what is going on? >> it's the bull market. the more it keeps rates down the better stocks can do. is it going to be a war of if central banks? >> i think you let them fightçt out. you have got to find stocks that create their own growth. >> which makes a lot of sense sex september you have the situation where companies are producing your favorite.

the fact is he's a guy -- this is when you go do a company like that because he's looking out for the long term. that's what you're saying. >> i want to go back to tech. i can understand how the market is going to lift the banks. then comes out and raises its forecast yesterday.

but theç big trend is more storage. >> all the security cameras all over the world are collected and store. >> you have got to pick your spots in. what do you make of the fact. this is a real dinosaur. just yesterday, microsoft overtook again. google taking the number three top spot. >> there is a lot more dinosaurs that are exposed to the pc business that is rolling over because tablets are eating into their market. and even with tablets you look at apple. they are growing their tablets but they're not blowing the doors out on everything else. >> i listened to jim last night.

>> he went on and on and on. >> i thought of you yesterday. he was saying that everyone thinks that microsoft is going to destroy all of this value. that's what happened. they all downgraded this thing at the same time. you used to love to go against the grain but not a lot of analysts want to do that. >> it's hard to stand out. >> that's a real pot calling the kettle black. >> it is time. my team are ready to give us

their first draft pick. >> after much deliberation, our first round draft pick is advanced micro devices. >> come on. >> maybe that is what they are laughing at. >>. this company is going to be launching a new portfolio of products in q2 this current quarter and we think that there is going to be potential upside to numbers. >> thank you thank you. >> our hail mary pass. >> well done by you. >> i get. you said it. we get their strategy. stocks down 65%. all you need to do is get a 50

cent gain. that's what they're going for.ç >> that was some draft. a good 30 for 30 the other day. the reason why this company survives is intel. i think the justice department would be furious if they are put out. >> okay. guys, you are now on the board. i believe the bar has been set

low, low. all right. >> low. >> we are going the take a quick break. huddle up. you don't need to think much about that one. we're going to dig into tech. we have got jim and herb and mandy and all the teams. tweets to talk about, too. we're back after this. >> take a break.

>> now this is going to set a precedent. l stock is going to beat them this year. >> boom. >> that's right. are r. >> have you ever heard that past performance does not necessarily

mean good future performance? >> never made it to the post season. >> i like it. game on. >> i think it's on the expensive side. i think it can stay expensive. >> it was like the kiss of death for apple. >> they want to go.

>> if they can get a job at google, yes. you need toç -- they put funky equations on billboards. >> at the end of a week marked by a dramatic tweet, remember that. we are here with the tweak that affected the markets the most. >> i'm surprised by this. i didn't realize that tweets moved markets as much as they did. if you're on twitter all the time, there are a lot of market moving tweets all the much. this is nina garcia. she is a fashion critic and tweeted i'm at j.c. penney's headquarters.

thank you for the walk through. get ready to shop. it's going to be a game changer. and look at the j.c. penney stock reaction after that tweet came out. she had a relationship with the company at the time. and then you see the dramatic move there.ç and look at the stock market reaction to that one. again, a big pop there. this is back in march of this year. it will announce a shareholder meeting and you look at the apple stock reaction there and you see that it moved

significant significantly after that tweet. that is one of the reasons that they are stoarting to incorporae them as they make the trading decisions. are the tweets true? do they have to be true to move the markets? >> good stuff. thank you very much. twitter. so our viewers know, you live out west. >> it will be some day. take it apart. they areç growing like crazy.

the infrastructure, the servers and equipment. the networks, those are the things i stand around with trying to find out of those things. i think that's how you can play the phenomenon. >> do you think the value of twitter just went up when we saw how market moving it is? >> maybe it went down. the regulators show un. there is not room to put disclosures but we need it. >> anyone could write on twitter. >> the rumors we see, they pose some rumors and stocks flying.

ceos should not be posting on twitter or facebook or anywhere else. >> he likes setting off rockets. if they don't have the room to say iç own it, then don't do i. the sec will come after you. i know this. >> the value goes down. >> all right. so draft pick number two. really the first pick of the second round and i get that pick as well. guys, let's go ahead and get it. what is your second pick? >> we're working on it. last minute. we have got a lot of calls coming in. we figured it out. if you watch fast money this is

a company that we have watched since it was in high school. jim, you know where i'm going. that's right, folks. sell. it's been a monster. it's going to continue to be a monster. i can't believe they let it go. it is incredible. >> you literally live about a mile. >> when i wanted to run the soap box derby, i went to bob and said we need to use the driveway because it's right down the block from us. this is a drug that you -- they have other things coming. that's what people don't realize. they have cancer. they have sor rye sis that they areç working on. >> good story. we are going to go to a brief

break. we will let mandy's mavericks work on their next wick. amd was a little bit of a start. >> long way to go. we're back right after this. [ engine revving ] ♪ [ male announcer ] every car we build must make adrenaline pump and pulses quicken. ♪

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>> this is a rapid fire round. what is our second pick? >> so unlike the ballers, we like to pick stocks before they make a huge move. >> oh! >> it usually works better that way. >> touche. >> there is some of the parts valuation on this thing that is somewhere between 125 and $140. we think there is huge upside. >> agree? >> it's like ryan leaf. >> good trash talking.

so does the very smart steve of first he is an activist inç this company. with him there -- >> does he need an activist? this was a $114 stock two years ago. it has come off of its highs. >> there is a ceo thing going on right there. >> i think it's chad. remember? he was picked 18th. tom brady was picked 199th. >> they think if you get the

right ceo, it can reenergize the company. >> it has always had one of the highest paid ceos. >> hundreds of millions of dollars over a couple of years. >> your third pick is coming up. i will stall for you so you can think about it a little bit. lighten up. we're having fun. >> we're having fun. enjoy. it's friday afternoon. >> so we're going to pick three stocks per team.ç and the field of pliey players. >> thank goodness. >> there you go.

are the ballers ready? >> ready. >> so the first pick of the third round and the final pick of the ballers. we have got google. who is pick three? >> here we go. we call it the come back kid hailing from cleveland, ohio. get ready for a 40 yard dash. boo-yah. >> natural. >> whoa. >> i love you. you're a notre dame football player. look at that return. jeff, make the case for cliffs. >> this has been a roller coaster of a stock here. it has been beat up. it's the china story. help me out here. ç

>> what is the yield on cliffs. >> i don't think it matters. the commodities cycle. >> about 3%. >> it's not really a high yielder. >> jim, you have been -- you're not a cliffs lover? >> i do love cliffs. i thought it was inexpensive at 25 so what do i know? >> and andy is saying it's not tech? this is as low tech as they get. >> enjoy it. tell us what you think. it's all a lot of fun here on cnbc. don't go away. bny mellon combines investment management & investment servicing,

giving us unique insights which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon.

>> here is theç deal. i'm actually tempted just to go with cash. >> obama care is beginning to make -- >> whoa. >> obama care. >> they will have no bad debt.

>> if she is right, guess what? you ain't. >> guess what? >> can we give him a buy-out clause now? >> that's 20%. >> she gets paid to write about stocks. i get paid to invest in them. >> what about you, chris? >> i feel like i know that they're not the same animals. i don't want to play something that is up what? how much this year? >> quite a bit. >> it's up 10 fold from its early lows. there was a lot of big probles.ç

>> early on the stock. >> this is russel versus cam newton. >> you are great with the football analogies today. >> looked great on paper. great momentum. he can throw 80 yards. >> he turned into a super star. >> have you ever met him? >> no. >> he had nobody around him. where is your guys? why do i need guys? he is a really nice good man. loves cnbc. >> you notice. >> my question to you is what happens when the s&p takes health care out of it. >> just ask. >> when they're bought by hca? >> you know what? actually, guy, you bring up a great point which we need to make clear to our viewers as

well. these are fantasy picks. we mean well with the names. if a name is bought, you lock in the return. you don't repick whatever. if a name is bought.ç >> what i want to know is when they have the s&p 500 to choose from, why these are the names they came up with. to me it's like there are perhaps some better picks. >> just -- you see, i follow adam. he is just saying that mandy's mavericks don't know what they're doing in the draft. he has 2.2 million followers. >> last time you're on our peanut gallery, jim. >> and the trash talking tweets can continue. but first, bill, what's happening on your show.

>> coming up, we have got two hours and for us it's about the burger wars coming up. it's burger king versus mcdanlds. on closing bell. street signs. more coming up in just a"mq9ñ

thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. i've always kept my eye on her... but with so much health care noise, i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still going to give me a heart attack. that's health in numbers. unitedhealthcare. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age.

♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ >> we are back live at the cnbc stock draft of 2013. you have got a pick, too? >> this is just a huge amount of fun.

>> people do realize that we're having some fun. lighten up, twitter. >> it is not illegal. >> now going to go total fun. all in fun. i'm recommending an airline stock. u.s. air. it's going to merge with amr. it's finally back to where i like it. i think this one is a home run. there is great synergies. it's wild. >> who am i to question your pick? as a continental guy, i became a united guy. the integration did not go maybe as well as some had hoped.ç >> i do think let's make this

really clear. it's because all of the big airlines are so well run right now a little guy can't come in now. >> they did a great job of the approach. >> i call it that too. >> would you say that you're positive? >> i am indeed. i pick that one because i love this merger. >> it's zero sun. you're going to pay for everything. >> of course they have already made their picks. three on each side and we're going to bring them down. going to break it down, all six. why don't we run you through what has been chosen here.

>> okay. >> we're going to do analysis on all six picks. you have got to stick around. you're watching cnbc's 2013 stock draft. >> you're going to need an extra helmet for your portfolio. >> no way.

>> all right. welcome back everybody on our second annual cnbc draft stock. try to dig into some names here too. we're going to punch them together and average them up. right before the super bowl and the best team will win. my team the best team. because our picks are google, celgen. >> and i have amd, my first

pick. very diversified and not all of them completely expected it as well. just recap it for us. hold your trash talk until the lady has spoken. >> i appreciate that. they cut out all of the fat. they suffered. they will be fully laumplged in this quarter. geared more towards tablets, notebooks, and that sort of thing. numbers around those products are not in street numbers. i think you could see some upside.ç very cheap right now. the billion dollars in cash. and if you look at this stock over the last 20, 30 years you will see that they have a very uneven history.

they have done this before. >> no trash talk. >> there is going to be question. i say it on fast money a lot. i think that's the only reason that amd is in existence. every single rally in the stock now for years has been an opportunity to sell it. >> i want to go into the notion of buying a company because the stock might go up but the company is not that good. i think you could win on this amd. maybe it's just a day where what happens is that some buyer comes in and moves the stock. does that bother you that it might be a flow of funds situation? >> i really think this is a great company.

>> i really think this company is implementing a fundamental turn around. that's a tail wind right there.. they recently won xbox design for their chip. you have a microsoft possible win coming up later in may. so i think that they're just catalysts to drive this stock higher and i think that it's really, you know, strong, fundamental turnaround that's started. >> let's dig into the first pick for our team, reggie middleton, who won the first draft picks with google. you're on my team, but here's the point. it's peaked out in march. hopefully it will re-peak, otherwise we're in trouble. so what makes you think it's going to go back to its march highs, because it's had a good run the last number of years. >> i'm not looking at the stock, i'm looking at the company, okay? think about apple in 2007. they came up with this product. it was a retake on an old product, it was different, and

it drove apple stock to stratospheric highs. that product was the iphone. google glass is easily google's iphone. if google glass succeeds, it changes the way computing is done. you no longer use cell phones, laptops, notebooks, you walk around, your computing experience is implied virtual reality. it's worn on your eyes. a totally different way of doing things. and if that fails, google has also taken over the smartphone industry and smartphone advertising industry. >> name one product in google's entire history they've ever made money on? >> you just said it. >> it's an advertising çmodel. >> you misunderstand google. >> no, i don't. name one for me. >> i'm about to. every product. your cell phone, android -- >> that's not their product. they don't manufacture. they don't manufacture. >> google is a service company and they do manufacture.

they own motorola. does motorola manufacture? >> they just acquired motorola last year. >> you just answered your own question. they make money on every single product through advertising. >> we could argue over this all day. i'm going to bring in the ultimate adjudicator, we have andy kessler, mr. tech sitting over there as well. i'm kind of picking up on what reggie was saying about google glass being a game changer. for me, it feels like there's going to be the nerdy, geeky, i wouldn't want to be seen walking around with google glass on. >> google glass is going to ship several super bowls from now. it's not going to help you right now. amd is going to get swamped by the downdraft in the pc business. google is the anti-pc. everything they do is off the pc. yeah, you use a browser, but it's on the mobile phone, the product that they do make money on is search. they're growing, they are teeing

up even more products to sell ads against, i think, google, even at 800 bucks is going end to up being a better stock than amd. >> with all due respect, andy, i will say while amd, the pc i think that you need to consider the fact that they could gain share, even if the pc market is declining, they could gain share. >> let's move along to the next pick, which is celgene, from your team. >> celgene, all right. >> celgene, it's unfortunate the stock has had a monster rally like it has, but it's been an incredible company, the management is terrific, and they have a biotech beta with a big pharmabalance sheet. so i mean, i've loved this stock for a long time, i'll continue to love it. i wish we didn't have the rally we've seen, but i think the stock will continue to go higher. >> silence? >> anyone beg to differ? >> i think everything that you've said is right. it's a great company, we've been

long it, and i don't think that there's anything negative you could say about it, other than the fact that it has had a huge run and we have 12 months to go, and it's almost never happened that the big winner of one year is the winner of the next year sector wise. it's really going to be tough to see another huge return. that's the only negative i would say. >> the only thing i'll say is, next year, someone in the team has to be able to spell one product the company produces. >> revlamid. >> it's a terrific situation. i do worry that it's a double. it's double, but that was because people misinterpreted what happened in a european ruling. i like the fact that this is one-product story going forward. >> okay. we've got to leave it there, just for the moment. everybody's been absolutely fantastic, fantastic picks, mandy's mavericks, not bad. brian's ballers. >> winner, winner. >> thank you. >> it's been a lot of fun. we're going to take a very quick break and we'll be right back after this.

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there's no stopping you. we are tyco integrated security. and we are sharper. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. i'm david faber with some breaking news involving jcpenney. there's been a lot of focus on that stock today, given soros fund management's decision to take a significant stake in the retailer, although the soros is in name only. george soros had nothing to do with that decision.

more likely, peter crusoe, the analyst who follows retail at that company. but what is central to the near-term future of jcpenney is its ability to fund itself, given it is at least still at this point, burning through cash. and on that front, we may soon hear some news, as the company and its advisers go through a variety of proposals to try to decide what it is they want to do to raise what seems very likely to be a significant amount of debt, not equity. there's been fear there may be some debt offering, also by the equity offering. that is not the case, at least according to what i am picking up in the capital markets at this point. more likely, something being put together right now by goldman sachs. sources telling me goldman is in the midst of rounding up financing for jcpenney. it has commitments of roughly $1.75 billion right now for a term loan with a coupon slightly above 7% and no equity component. that loan would be backed by real estate, real estate leases. they have a number of

below-market leases that have value and i'm told some other assets. as they said, jcpenney and its advisers still going aboutç ho they want to go about tapping the markets, but this loan may be the avenue they choose to go down. jcpenney does appear to have a lot of dollars available to it, at least, and in talking to people in the capital markets, many hedge funds have come forward and said, we are interested, at least, in potentially providing credit to the struggling retailer. this would help the company on the balance sheet site, but of course the fundamental picture, well, that remains very much muddy. back to you guys. >> thank you very much for that, david faber. >> more breaking news on jcpenney. andy, herb, jim, who do you think has the best pick of the six? >> i think whoever did occident occidental. >> that was our team, mandy's mavericks. >> google. >> that was brian's ballers. >> i hate to agree with herb

greenberg, occidental. >> there's two for mandy's mavericks. we'll find out the real winner from our cnbc's stock drafts, the monday after the super bowl, 2014. thank you very much for the coin toss as well, sir. we'll take balloons and hand them out later. >> thanks, everybody, thanks for playing along at home. it's all for money. the "closing bell" is next. hi, everybody. happy friday. we enter the final stretch for the week. welcome to the "closing bell." i'm maria bartiromo atç the ne york stock exchange. the s&p's five-day winning streak in jeopardy. >> i'm bill griffeth. happy friday. stocks are mixed as we enter this final hour, but the major averages are on track overall. we'll recap that for you, coming up. >> one name bucking the trend today, jcpenney. take a look at this stock, sharply higher todayft