an ad what hyundai did last night was spectacular. i know it was an ad technically but what they did. whether you like hyundai or not that was nice. >> very well produced. >> i would love to see how they did it. >> very cool. thanks for watching. "closing bell" starts right now. hi, everybody, welcome to the "closing bell". i'm kelly evans at the new york stock exchange. >> i'm scott wapner. president trump says tax reform could get done earlier than health care. and help wanted at tiffany. the jewelry retailer ceo stepping down late yesterday and the company saying it's concerned about itsle financial performance. we'll look at whether there could be other reasons at play here. >> bank of america, jpmorgan, retail investors are buying these every month. now there's a new small cap name making the list.

>> then after the bell the patriots incredible come back last night got us thinking about companies that may need a tom brady themselves to help turn thing around. nba star chris paul will join us to discuss the new investment fund he's working with. >> nice. >> so stick around. >> let's start with president trump's first visit to the u.s. central command in tampa. eamon javers has the story. >> reporter: we are expecting the president back here in washington at some point this evening but he was in tampa, florida earlier today, the headquarters of u.s. central command. the combatant command that includes afghanistan and iraq as well. he had lunch with some enlisted members of the military there. he also spoke to the top brass. bun of the comments i want to play for you from the president was a little bit more favorable treatment of boeing and lockheed martin which had come "closing bell" president trump's scrutiny over the past several months. today he seemed more pleased as

he talked about that. here's what he had to say. >> $700 million when i got involved in the negotiation on the f-35, you know about that. and i want to thank lockheed martin and i want to thank boeing and i want to thank all of the companies that have really opened up and when i say opened up, rick understands this very well, opened up and cut their prices. >> reporter: and so keeping with the airplane theme we do know the president will be meeting with airline ceos here in washington, d.c. on thursday. and this president has been going sector bisector in meeting with different ceos from different groups. it will be interesting to see what his focus is on for the airline industry later on in the week. >> it's tough to keep up with the pace of what's coming out of the white house and administration. how significant are some of the discussions he'll have or talking with the airline ceos and everything else happening

and a lot of them concerned about what the status is of the refugees trying to get in this country. >> reporter: absolutely. some ceos of some companies expressing divergent opinions. elon musk defended his decision to meet with president trump. he's come "closing bell" criticism from some of his own supporters for that but he said look i'm a moderate and moderates need to meet with this president. he should get advice from people who are not all on the right-wing. each ceo is taking a different tack. it was interesting to seeing boeing and lockheed martin comments more accident frl the president than we've seen before. clearly he's pleased with the movement he's seen from those companies over the past couple of months and we'll see which other companies come "closing bell" his scrutiny over the rest of the week. >> eamon javers in washington. president trump also appeared during the super bowl pre-game sunday in an interview with fox news channel bill o'reilly and discussed when he thinks tax reform will get done. >> americans expect a tax cut.

>> i think so, yes. i think before the end of the year i would like to say yes. >> can americans in 2017 expect a new health care plan rolled out by the trump administration this year. >> in the process and maybe it will take sometime until next year but we're going to be in the process. >> joining us now on our "closing bell" exchange with their thoughts on what impact could have on investing strategies we have david waddell, starring gofeld, rick santelli. it plays off the comments that the president made over the weekend. are investors too bullish on the timing of the agenda and has the market gone up too far too fast? >> the market has rallied quickly. but as a trader you have to become somewhat mercernary in

nature. you have to grasp on to items that aid the agenda. lowering taxes sometime this year, deregulation this year that will push a fiscal policy forward that's going to help everything from finance to some tax to the military to the defense stocks to the infrastructure stocks. now otherwise health care maybe pushed off to 2018, maybe you just don't go there right now. >> in the health care. >> maybe you avoid health care. >> david what you about. timing here of tax reform relevant to health care. how do you invest right now. >> i'm not sure it affects the way we invest. as somebody said before, the market has trended sideways since december 9th. i'm encouraged people have gotten as cautious and fearful as they have. in fact investor sentiment has come down 30% and the market is flat. i view that as a sign of strength. people are projecting tax reform

probably sooner than it will october course. let's not forget it's been 30 years since we've had tax reform and it took three years to pass the last bill. by the way, if you read through the better way proposal from the house, paul ryan is pretty explicit about the fact we got to get rid of obamacare to make it deficit neutral so you got a little delay there which i think is messing up the messaging. the border adjustment tax is the centerpiece of the bill and most of us don't know what that is. harmonizing with that isn't something we've talked about in the past. the senate, you loin have 52 votes and/or rhine hatch likes bipartisan activity. there are impediments here that we haven't focused on because we've been excited about the christmas present in tax reform. >> rick on that noerkts goldman had a note out today that appeared to be more cautious on their outlook for the market because they say there's a more polarizing environment. there's going to be about this bitter fight over obamacare.

you got these potential border and trade issues with the president. and it's not any different from really your conversation this morning with charles bedderman who wondered if investors are getting ahead of them even though the policies they are banking on are pro growth, pro economy, pro market. >> i'll say the same thing i said to charles and everybody is entitled to their own opinion. i think we have a populace president and many made friend of the. population that put him in office. we somehow say they are not real bright they obviously can't possibly understand all the logjaming that goes into politics and all the sausage factory activities that are going to be coming to fruition as we get closer to getting some of these things done. i think they do understand. i think the fact that we have these policies in the cross hairs is what's important to investors. i think the timing like get it

done yesterday is more something the media has created personally. >> but look i'll push back on that, though, because maybe the timing just isn't going to be as fast as people think. what does that have to do with understanding anything. it's a simple fact if the president wants tax reform and people are banking on it for 2017 and the president himself says well maybe it won't happen until 2018, why is that not a legitimate question to raise with people who are investing in the marketplace as if some of these policies as great as they could be are going to happen in a couple of weeks or months? >> well, the investors have weighed in, scott. i see 20,046. i don't see them weighing out. >> can i jump in on that. so let's just project out until 1231, 2018. facts earnings will be 25% higher. that number doesn't bake in any

tax reform or reregulation, doesn't bake in any repatriation. do you think it's possible and yes maybe they got rose colored glasses on discount that a little that earnings could be 20% higher by the end of 2018. if the answer is yes, then the markets are likely going higher. trying to figure out while we're going through this political accurriculumation season when to get in is futile. i want to own stocks now because of what i expect bio2031. >> i don't see any data that looks like we turned some major corner in november other than the election. >> sarge, you want to weigh in. >> look at the gdp for fourth quarter. the economy didn't turn a corner. >> exactly. >> this is what people perceive as a growth agenda. i do think we'll see that. if we can maintain 17 to 17 and a quarter times earning i think you'll see something in the 2400s on the s&p 500 sometime this year. let's not forget, only 3700

stocks left in the universe. there's scarcity. valuation should be higher. >> jpmorgan was saying over the weekend there wasn't enough of new supply of equities last year to match the traditional replenishment cycle. i was going ask you about the fed getting more to kbusd their balance sheet. duration shortening and what happens with mortgage bonds and there's some tightening that's going on there while this is happening. >> i believe they should have stopped free investing before they started to raise rates. that was the logical first step. that's easily reversible if you realize you made a mistake. >> david, last word. >> i agree with that. >> if it was me they should stop reinvesting. >> i agree with that. it will help steepen the yield curve which is good for everybody. >> all right. gentlemen, thank you all. we have a market flash to get to on milan and megahas

that. >> reporter: mylan has agreed to settle claims introducing a generic version of a sleep drug in exchange for payment from ceflon. this is with direct purchasers. still needs to be approved by district court. we got a statement from mylan says nothing constitutes an admission of wrongdoing. mylan believes the proposed settlement is in the best interest of the company. this is an example of what's known for pay for delay cases where a company will agree to take a payment in order to delay launching a generic version of a drug. the ftc has been clamping down on it. now you can see mylan up by 2%.

three analysts said maybe this isn't a big deal there are other things driving the stock up. it's been climbing over the last week ahead of several catalysts including an analyst day march 1st and couple of fda decisions on generic drugs. a lot going on with mylan as you can see. >> meg was talking about some other things. on the halftime show today pointed to some bullish options buying in the most recent days. this specifically was one of the stocks he highlighted. technically mylan is set up to do fairly well in the short term. >> i was surprised that this kind of news would send the stock up instead of down. there's a worry bag that analysts have around this stock and this is one item that gets out of that. >> reporter: i was asking a lot of folks about this. they said it wasn't that big of a story for mylan.

it isn't a small amount of money but to mylan what's driving the shares is anticipation of decision from the fda. interesting scott was saying that. one analyst said you can't be short of the stock into one of the these fda decision in case of which way it goes. interesting to hear. we think about mylan with the hey ph epi pen. 45 minutes to go. markets are lower. dow is down 26. s&p down six. nasdaq down 8. russell is down 11. >> tiffany shares are lower today after the abrupt departure of it's ceo. we'll discuss what's going on. >> two airline stocks get upgraded ahead of an industry coe meeting with president trump later this week. we'll have those details coming up. you're watching cnbc first in business worldwide. [vbointrucesg busi

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there are some exceptions to the sell off today and take a look at hasbro which is up nearly 14%. it's hitting a 52 week high. the makes's number two toy maker

reported a record revenue. hasbro sales also getting a boost from board games and company ceo speaks with jim cramer tonight on "mad money" at 6:00 p.m. eastern. tiffany is lower on news the company's ceo is stepping down immediately. courtney regan has that story. >> reporter: wall street was surprised by the fact that tiffany ceo was leaving and timing of the announcement coming hours just before super bowl ad of lady gaga when it aired to announce the new collection. it awarded the tiffany made vince lombardi trophy. valentine's day is nine days away and this also comes days after ralph lauren announced its ceo departure. analysts so far mixed. the title is ceo leaving a good thing. change need to accelerate change. but analysts say only one new stand out jewelry collection every two and a half years isn't enough. he's been ceo for less than two years. the stock was downgraded

concerned about multiple recent ceo changes. and the cfo just started in may. the jeweller said the board has been disappointed by financial results but reaffirming annual guidance given when it released holiday sales mid-january. does that say further declines or not. the former ceo is back in the role in the interim. this is a head scratcher for a number of reasons. >> i don't know about you, scott, but it's a question do you extrapolate to the broader theme or does this tell us more about problems internally with how tiffany is operating. >> maybe across the whole retail. we're talking with ralph lauren's ceo out after a year. >> 18 months. >> short time period as well.

>> where is the talent that will replace these people leaving? is it internal. is there a sense of external with expertise to navigate. >> reporter: the company indicated they are looking externally. they did not exclude the idea of looking internally and that's where it came from. it seems they are looking for someone outside of the company and analysts say look they do need to do a better job of grabbing that millennial customer perhaps accelerating their interest in those fashion the lines, the sub-$500 category to introduce them to the brand as their more loyal customer ages out or isn't coming to the united states as a tourist shopper. that's a struggle point as well. looks like the talent they hope will come from the outside but clearly they don't have anybody lined up certainly the way they announce this. >> absolutely. thank you, courtney. >> thanks. >> 40 minutes to go before the bell rings on wall street. dow jones industrial average is down 26 points.

s&p down about six points as well. >> coming up we'll discuss a trump event that could move airline stocks later this week. later why disney ceo bob iger who was scheduled to retire in the summer of next year is reportedly thinking about staying at the company for a little bit longer.

all right. let's show you the markets there. got a little more than a half hour to go. dow is down 28. s&p is down a little more than six.

nasdaq is down about 7 and a half. everything is in the red. loss is muted. energy stocks are lagging the market amid a drop in crude prices. analyst blame strength in the u.s. there are and boost in the rig count by u.s. dollars. ceo of royal dutch shell will be speaking with us tomorrow. that will be right here on "closing bell" tomorrow. now american airlines and delta are higher. bernstein upgrading. delta to outperform the firm doesn't see a negative catalyst in the short term for american. delta says the carrier revenue management strategies will pay off. bernstein cites making economy fares available. the firm has a $43 price target on american. shares are a half of a percent respectively. delta is at 48. >> ceos are going to the white

house on thursday. from the group. so that group of stocks is going to remain in focus. >> you got the buffett effect, the fact he's been in these stocks. they are trying this basic economy thing, united airlines and delta. i just wonder if you're going to see the president, if i'm them i would talk to them about this emirates issue. how much subsidization of this. >> how he takes on this, of his administration, does proe text these airlines. or not. does he say hey competition is good. >> i'm guessing he'll go to protect. if you talk about it in the context of u.s. carrier versus emirates or international carrier of course he's going to protect the u.s. carriers. >> don't get me wrong but there are others, other u.s. companies on the other side of this argument, fedex and a few of them as well. it's a little bit complicated and i know right now to get on some of these new flights you

have to go out and walk half a mile on the terminal because the airports are not so sure. >> one reason why cramer says southwest is his favorite right now in that space. >> amazing company. they said they never fired an employee. that was in the journal story over the weekend. 35 minutes to go. dow still hanging on to a slight loss. about 32 points in the s&p following suit down 6 1/2 points. a leading trader tells us what he's watching in the close on the first session of this week. that's coming up next. >> a battle hitting president trump and leading republicans in one corner and federal reserve chief janet yellen in the other. details on what you need to watch for coming up. [ iges ] whave ansuy ore datek [ iges ] rating t a in s whave ansuy ore drereize[ iges ] e rating t a

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markets are holding on to a decline at this hour. dow is down 34 points. the new england patriots super bowl win is not giving a boost to "closing bell" armour shares. quarterback tom brady was wearing cleats made by "closing

bell" armour. i'll be speaking exclusively with "closing bell" armour ceo kevin plank tomorrow at noon eastern. >> they had a rough week. thank you. i'm here on the floor with less than half an hour to go. talk to me about the 20,000. we're hanging on to the level. >> the market is developing a pattern. strong up days with great breath and then pauses for two or three days. underneath that you got a very solid foundation technically for the market. really just consider that the s&p 500 and the nasdaq have put in two consecutive weekly all time closing highs. that's very impressive. and you've got maybe a little bit of relevant "closing belunde

but it's hard to ignore these weekly highs. >> when is the last time we would see a set up like that. >> a while. you got to go back to probably when we went through 15,000 the first time. >> really? >> but i don't have those numbers right in front of me. but it's just a very impressive they have these all time weekly highs back-to-back by the major market. >> some pointed to the strength in gold and a few other things. it's a sign that we're going to have a scary repeat of early last year. you don't see that in the cards? >> i think gold right now is rallying because some of the polls for the european elections which could be a little bit of a wild card -- >> i'm hearing the word brexit being thrown around. >> sure. they show le pan is up in the polls. there's polls in germany that show merkel's party is in a dead heat or behind be the social democrats.

if you get to further questions such as legitimacy of the eu that would make gold rally substantially. >> we'll keep an eye on it. over to you scott. time now for cnbc news update with sue herrera. here's what's happening. speaker of britain's lower house of commons says he would not support any plans for president trump to address parliament during an upcoming state visit citing trump's migrant ban as a factor in his decision. >> i would not wish to issue an invitation to president trump to speak in the royal gallery. our opposition to racism and to sexism and our support for a quality before the law and an independent judiciary are hugely important considerations. >> two paintings by vincent van gogh stolen by an amsterdam

museum in 2001 and recovered by italian police are set to return to the netherlands. masterpieces were put on display at a naples museum. thousands of die-hard patriots fans started to line up before sunrise to get their championship merchandise. the line at the team store at gillette stadium reached out into the parking lot. fans didn't want to wait for online delivery. they want to have the gear to wear to the parade. that's the cnbc news update at this hour. back to you. i got to clean out the closet. >> i get it. >> all right. >> see you later. >> you asked you got it. >> financial stocks have outperformed since the election mostly on hopes that president trump will deliver on his promise to unravel the dodd-frank. the wall street reform and consumer protection act. here's what he said about his

plans. >> dodd-frank is a disaster. we expect to be cutting a lot out of dodd-frank because frankly i had so many people, friends of mine that had nice businesses can't borrow money, can't get any money because of the banks. won't let them borrow because of rules and regulations and dodd-frank. we'll talk about that in term of the banking industry. >> steve liesman joins us now with potential conflicts. >> reporter: he signed an executive order to study the issue but it's going take more than executive order to change dodd-frank. behind me is just a partial list of the agencies and the parts of government that are going to be needed in order to change dodd-frank. the treasury, of course, will oversee some of this along with national economic council. there's the senate and house to vote and reis in or change some of those things. the federal reserve, they write

the rules, have to change some rules. fdic helps regulate banks. fsoc coordinates it all. over here the bank for the national center most people don't think about the way the united states coordinates with other countries how banks are regulated to make sure ours are not tougher than theirs. also the ftc and sec get in. how about the personalities involved. you heard of dan turello. he does the regulatory stuff but never confirmed of the vice chair for regulatory supervision. president trump may appoint one of those. janet yellen, she has not said she opposes all dodd-frank reform but she generally supports it. could come up there with some conflict with the president on that. steve mnuchin supposed to be approved at the end of this week. he's supposed to oversee the whole process. these two guys over here are people you want to get to know.

jeb since linger and steve crapo not necessarily so. there's some difference between house to and senate on this issue that could also delay the reform. i don't know, guys, maybe the guys, the investors and the banks are a touch ahead of themselves on this. >> i was going to say okay the moral of the story is it's going to take a while. do you think that from the people that you speak with, steve, that this is a 2017 do or does it leak into next year because it's complicated along with everything else. >> we'll get the form of it this year. i think it's a very long way to go. i think some capital will be returned. but look when i read the president's executive order, it doesn't sound to me like scrapping all of dodd-frank. it talks about systemic risk, make being sure there's no taxpayer bail outs. lot of these things are things dodd-frank was designed to do. i can see situations where some

of the paper work is rolled back. there were already last year talking about trying to exempt some of the smaller banks. that's some of the easy, low-hanging fruit there. getting at the big issues, for example, should big banks pay more than smaller banks because of the systemic risk they create. a lot of people thought about this thought they should. >> there's a bunch of different issues in there. there's the volcker rule and the return of capital. what's your feel for -- is this going to happen piecemeal? does it have to? >> piecemeal is the best way to do it. i know jeff has a whole bill that changed everything called the choice act. i've not heard a lot of love for that in the senate right now. not entirely clear to me when i see the interview we did on friday with gary cohn as well as the one he did on the "wall street journal" i don't see him embracing necessarily the ideas of the choice act.

>> no one is talking about taking dodd-frank and throwing it in the trash can. even the people who are in favor of retooling it aren't in favor of just ditching it. >> reporter: so scott a clever investor has to separate the rhetoric of donald trump that calls dodd-frank a disaster says we'll be cutting out large portions of it. you look what gary cohn is saying and what the reality is. the republican congress previously never put a dodd-frank reform bill on president obama's desk. the other thing to remember which we haven't talked about is some of these things in the senate are going to require 60 votes. some things can to be done by reconciliation. i'm no expert. all i know is it took a lot of time and a lot of complexity to write these rules and get them into place. my guess it takes as much to get them out. >> steve, thanks. >> reporter: sure.

steve liesman. these than 30 minutes to go. dow is hanging on to a loss of 30. s&p negative by six. j.j. cunningham joys us to tell us what investors bought and sold in january. one big cap disney ceo robert iger may be stick ago round the magic kingdom a bit longer. a look at his past, present and maybe future coming up. what'sheue

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welcome back. a gentle selloff on wall street dow dropping 26. 20,045. russell 2000 lagging again down 1% dropping 11 points today. >> let's sends it back seema. gnc is down 7.5% on track for its lowest close since its nlrb public offering in 2011. if you look at a year-to-date chart shares of the supplement seller down as much as 25%. this comes, of course, after gnc launched its rebranding effort to win back some more customers, but under significant pressure

here as we head to the close. back to you. while the dow continues to stay above 20,000, retail investors are beginning to get more bearish. the latest aaii investor sentiment survey shows pessimism is above 30% for third consecutive week. first time that has happened since the election. >> aameritrade clients are adding stocks. so what are they buying? >> they start with the financials. jpmorgan, bank of america, two of the big ones and we talked in the past about jpmorgan. or bank of america. i apologize. i feel bank is sort of a synthetic play for the entire financial industry for retail because the trades basically inexpensively than real dollar terms at $23. so it doesn't take up a huge amount of people's accounts to get involved with that type of stock. then, of course, we continues to see people buying.

amazon. a stock at the higher end of the stock that people bought for the last year and again one that everyone knows the business. >> that one sets you back 800. >> i guess it's great that there's room at every end of the scale for people. again they have been handsomely rewarded. and the one that may surprise people is navidia. our clients use that as an opportunity to come in and do some buying >> you're not getting a whiff of bearishness at all based on what the market has done. financials are up 19% since the election. >> i agree. it's a little bit more of concern and people going into stocks -- nvdia was a surprise because one of the things we saw right before the inauguration and at the end of last year is people going to the more traditional dow type names like the j.p.s and banks, amazon is a mature company at this point.

what's interesting, though, on the other end and that's on the sale end you see a stock like apple. >> i'm staring at as you're saying that that it was net sold in january as the stock feels poised to maybe go the other way as in higher. >> well, i would say it's still a healthy stock. it makes me happy in that it hits 52 week highs last month. this month has gone higher. people are starting to sell that. it always makes me happy when i see people selling stocks that are going higher because we've seen it too often. they are left holding the bag. >> a lot of times we're talking about big companies. what about dry ships. how did that vault in there to be one of the companies that were net buys, something going on with dry in particular? >> what it is if you think about how sometimes how people think i want to take a shot on something. at a buck and a half where it traded for much of the month up

to $4. a way to do so without taking up a big portion of their portfolio. so what this list reflects is unusual activity compared to normal. again people tend to want to speculate on things. i much rather if they do speculate it's $1.50 to $4. >> another stock that was net sold is disney. >> yes. >> which is at a nice move off of the concern about espn. bob iger, the ceo of disney makes what's perceived to be a more positive comment several months ago, handful of months ago and the stock has really come back since then. wonder what you do with it now given the fact it's had a substantial move. >> you want to talk about a stock people were worried about. we did a thing yesterday during the super bowl grading commercials and how people responded to that. disney wasn't in there. coca-cola was the winner. with all that again a stock that

very widely held at our firm going higher. people starting to unload some of their positions. not a bad thing. i will say the one interesting thing is this four months in a row that apple sold higher. we saw our clients buying facebook. first month they haven't rolled apple into facebook. that's going to be an interesting stock facebook in itself to watch for the next couple of months because it doesn't seem to be having the same support. >> good stuff as always. thank you so much. we have about 15 minutes to go before the bell rings on wall street. dow is down at 20,042. nasdaq is down a fraction at 5659. >> after the bell nba star chris paul on the new investment fund he is working with. stay tuned.

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well the dow and s&p aren't seeing huge moves today. there is action in other places of the market. the russell 2000 under performing down 1%. oil is getting hit as u.s. supply glut and geopolitical tensions. gold is climbing 1% nearing

three month highs as the dollar weakens. ten minutes to go, dow is down 32 points. joining us now, andy from region atlantic and from american century. welcome to you both. andy you say your theme for the year is prove it. you talking about the president trump administration >> i'm talking about a lot of things but part of it is the trump administration. the market is up 10% or more and all in response to what, speculation. trump will do this, won't do that. 2017 will be a year to prove that some of these things will happen. >> michael, what about you? >> yeah. so when we look at the market, we look at a variety of traditional valuation we think the market is roughly 10% overvalued. if you take a pro growth aspect of president trump's agenda lower individual income tax rates, lower corporate tax rates and less government regulation, if you were able to implement them instantaneously we think

corporate profits would be roughly 10% higher. still, that would just get the market to fair value. and still not a great place for investors. we're seeing goodrich rewards for our clients in health care and energy. >> i'm sure you heard some clapping in the background. i'm sure people agreed with your answers on the market and that's why they were applauding. seriously there's a gentleman here who is retiring, so there's a hearty round of applause for that gentleman right there. we wish him along with everybody else here our best certainly for that. so, andy, it's funny. we have the ceo of royal dutch shell. is that today or tomorrow. that's tomorrow. that happens to be a stock that you like. why? >> it is. i think prove it has a lot to do with it. energy companies have rallied a lot from the lows in 2016. oil went from $27 to 50ish today and the problem is that's not enough. why is that a good thing for royal dutch shell? compared to other major oil

companies, they really don't need as high a price for oil to break even compared to petroleum or a pc where royal dutch shell can benefit if it only gets to 60 or stays in the 50 to 60 range they can still post a profit. others cannot. >> we're showing spectra, apple and citigroup. you brought some picks. what are they. >> he like zimmerman biomed and pfizer. >> that's what andy was just discussing. why total. >> because the company is relevant to other energy related companies. less cyclical. good mix of upstream and downstream assets. they engaged in a major investment cycle which results in increasing volumes for the next several years. those volumes should result in accelerated cash flow from operations. as i mentioned 2014 was the peak of the investment cycle so their

cap x should be falling. you have increasing cash flow from operations. lower cap x should mean accelerated free cash flow to benefit shareholders. combine that with a balance sheet able to with stand the rigors of energy cycle and a good valuation and dividend yield and we think it's a pretty good risk reward for our client. >> i'm looking at some notes. you think the market is overvalued by 5:00% to 10%. does that mean we'll have a correction of that magnitude? >> no, it doesn't mean we think there will be a correction. we're bottom up investors so we're trying to find the best risk rewards for our clients. that's a macro view. we have to have a macro view. we're not macro investors. we really are bottom up. so looking bottom up we're finding good risk rewards in health care, energy, lime zimmerman biomed and total and pfizer. >> got you. >> up next we're right back with

the close countdown. >> after the bell despite president trump's push for financial deregulation the fate of the so-called fiduciary rule is awash in confusion. a debate on who benefits coming up. you're watching cnbc first in business worldwide. car 2s . w, o iles at,t,ci car 2s . w, ater

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the closing countdown. major averages muted losses. dow jones industrial average were off 28 to 30 points twin last hour or so. some individual stock stories that were of note, tiffany is one. ceo unexpectedly leaving after a little more than a year on the job. so that stock was under pressure. disney speaking of ceos, a report by the "wall street journal" that bob iger may be sticking around a little bit longer than expected. he's supposed to leave at 18 months. so those prospects are giving a little bit of a lift to that stock. speaking of media stock, 20th century fox reports after the bell. we'll be watching those closely as well. look who i found. bob pisani over here. just walking by. thought i would say hello. >> we're at this pause mode. we had this big lift after the election. then a little bit of a pause. then towards the end of last week that push higher when the president met with that room full of ceos. financials started to take off again. here we find ourselves wondering

where we are in terms of the agenda. >> notice every time the president meets with auto executives or signs an executive order for a new pipeline the market does something. when he stops doing that or changes the conversation and talks about obamacare which is per steefbd quagmire by the markets the markets stop doing anything and drift. here we are again. now we're not in any danger. the markets are at new highs. if we start calming down towards 20,000, we moved out 2,200. we moved down close to where we are on november 8th election. he'll notice that. that's the risk to the markets right now that we move down. it's a long ways away. remember his big claim the markets are doing great since i've been in power. >> also the market is not going down. >> that's right. one other thing, i don't normally talk a lot about

europe. i get a lot of calls this morning about what's going on. germany closed at a new low for the year. dessfiet we had great economic data. european pmi numbers were great. they are worried it's not the economy it's getting better they are worried about populace politics there. they are worried about marine le penn potentially winning. she wants to take france out of the euro. >> did you say le pen because i dropped my pen on the floor. >> do you think people are nervous about the timing of some of the initiatives from the president that they have been banking on, tax reform and things like that. the president says i want to get it done quick. >> even over the weekend he simply implied obamacare would not be repealed. he's on a learning curve and everyone is now starting to

realize much of what he's talking about is a 2018 event not a 2017 event particularly on anything related. >> you're watching the bells. the dow dropped 18 points. weapon moderated our declines just into the close. in fact the nasdaq almost turned positive both the dow and nasdaq down less than 1%. s&p 500, the broad index did fall .2 of a percent. 2292 a drop of five points on the bell there for the broad market. the russell 2000 the under perform ear theme of late dropping, about .8 of a percent.

1366 is your level. s&p snaps a three day win streak. "the washington post" piece this weekend called president trump the chris paul of politics. what does the nba star think of that comparison. the l.a. clippers player will be with us in the show later and talk about the investment fund he's working the. thanks everybody for being here. mike, what do you think about this market. it's quiet on the surface. bob's comments were interesting about the concerns building in europe. >> there are concerns building in europe. the markets have been right along with the u.s. markets. that's one to keep in mind when we talk about the trump rally or trump trades. so i do think you're starting to see a little bit of unease. gold rallied a little bit. hard to know up 7% or 8%

year-to-date if that's trying to tell us something about the source of volatility elsewhere in the markets. i do think this market does nothing except grungingly. stuck in this range. so the big caps can't move. what happens? those old growth stocks the nasdaq as you mentioned almost got positive. medical device companies and the other big nasdaq stocks are finding to be, you know, getting big. >> where do you see turns, rebec rebecca. >> a year of tanko. two steps forward one step back. economic data is good and improving. that and decent corporate earnings those are the fundamentals keeping us going higher but so much focus on policy right now. to date on the u.s. and increasingly on europe we might get a chinese uptick foin cuss as well and that's going to keep people on edge. we still think the equity market ends higher but a choppy year. >> you mentioned china. the data there overnight was

weakened. maybe it wasn't the biggest deal. export numbers were better. by the way, one of the things that's been happening beneath the surface massive corporate debt issuance. the big blue chip companies. you name it. is that a sign of health fundamentally in these markets. >> you have to say more or less that is. the bond yields are coming down. they were correlated for a large part of the beginning of the year but the stock market was going up and yield themselves were going up as people sold off bonds. look if i'm a corporation and can still issue debt at these low rates i'm going to do it. what's interest cigarette if there's a repatriation scheme we might see for corp operates as we look at google or ibm, huge cash balances offshore, why are they issuing that when they can use that same kbas going in the future. i don't know the answer to that. you have to say corporate debt issuance a sign of health. >> global net equity supply

turned negative last year for the first time, mike. so, there's something going on here about the shrinking equity market whether it's the number of companies listed or supply out there, so many corporate buy backs. in the meantime they are happy to go the debt markets. >> there was talk of shortage of safe assets. what that means too much demand for saech assets relevant to what was out there and what could be priced rationally. de-equitization is the flip side. i'm not concerned about the damaging winding nudge. do people see text markets as a place to raise fresh capital and do something with and clearly you're seeing the apples and microsoft raising massive amounts of debt cheaply. they are saying we're in a totally different league in what our capital priorities are. >> 20th century fox earnings, letting people know those are starting to come across. we'll have more in just a moment.

i could go toe to toe with mike about why it's not good the equitization is out there. i'll point to the idea the terms they are forcing on shareholders are grotesque in that shareholders have no vote in the company that they are buying. because of de-equitization that's more opportunity for companies to drive the terms. >> would you be a buyer of the snap ipo. >> i'm not going to try to take a view on that. we've seen these ipos work out well. some have not. with the valuations here the risk goes both ways. we got involved a long time ago in private equity. >> is that meaning you got burned? >> no. we got it cheaper. >> so instead we have an earnings alert on 20th century fox. let's get to julie boorstin who has the numbers. >> reporter: 20th century fox misses revenue estimates. you see the stock moving higher

in after hours because adjusted were 53 cents. expectations were for 49 cents in adjusted earnings per share. going through the different divisions here i'm trying to sort out where that revenue miss came in. the television division brought in.1.9 billion in revenue. analysts had been expecting 1.83. tv performing better than expected. film to entertainment coming in a bit lighter than expected. cable network programming was projected to be 3.99 billion but only 3.97 billion a hair light on those revenues but better than expected. stock up now by 1%. >> you were saying that the tv piece was a little bit light which was the very piece we were going to hone in on for some additional benefit from the eyeballs the company is getting during the presidential cycle. >> reporter: so there are two different division. there's cable network programming and also television. so there are two different

divisions. cable network is the company's largest division with 3.97 billion in revenue. that division came in lighter than expected in terms of revenue. but if you look in terms of earnings that, i believe, was the cable network programming was stronger or i'm sorry pretty much right in line where it was expected. digging through the release here they say cable network programming was driven by 7% revenue increase on higher affiliate and advertising revenues offset by expenses and those higher expenses are because of those higher sports rights, mlb rights, nba rights, et cetera. we'll surely hear more about the health of the tv bundle and how they are going to manage those higher sportsing rates moving forward. >> that's interesting about the sports. the cost of those keep going up. everyone think line sports is the one last place you got to be.

>> everyone believes we hit peak sports rights. you look at the numbers for the english premier league it blows your mind. i think you have to believe with some of the problems that's had out there in los angeles with those sports rights with the dodgers and the like, there's a new assessment about what these things are worth. that said these numbers show that whatever doubts people have, the eco system is relatively healthy enough to support this. >> what do you think. it's bean big cycle. >> i just think there's so much disruption going on in every industry, every sector right now and we think about tech earnings and tech sector but whether we're talking media or financials or health care, every single sector is going through so many huge structural changes that anyway people analyze these stocks five years ago it doesn't work any more. we all need to adjust our mind sent on these. good news it creates a lot of

opportunities for active investing. active is not dead yet. >> you said with it vigor and enthusiasm. what were you going to say? >> first of all in terms of the sports rights, i've been a skeptic that they can go up forever. what was on tv last night besides the super bowl? >> i don't know. >> it's hard for these networks to pass it up and have somebody come out and outbid you. the pacing of rights charges when they book them something that's not always transmitted to the street. a lot of noise in the fox numbers because of currency. i think it's probably pretty much on target. this is mostly a tv company. and it's one of the more pure plays. it's lagged the likes of disney and time warner which has a take over bid. i do think the street got what it was looking for but not holding that 1% gain. it has turned negative after hours. we'll continue to monitor. one of the most reclusive ceos in the country caught have lunch

with president trump in florida. >> reporter: this is thanks to the eagle eye members of the press pool who were with the president down in tampa, florida. that's the combatant command that involves iraq and afghanistan. the president was there to meet with some of the top brass. he had a lunch with enlisted members of the u.s. military there in florida. he's expected back in washington today. but who was in that room but one of the most reclusive ceos in america, that's ike perlmutte. he's rarely photographed. we believe that's him there on the left in the red tie. very few photographs exist of this gentleman. he is said to be a former israeli soldier. and said to at one point attended the iron man remere in disguise to avoid being photographed. unclear what he's doing there except we know he's a long time support he and friend of donald trump, a financial supporter of

donald trump and interested in veterans issues. the president said earlier this year that perlmutter would be involved in veterans issues in one way or another. we asked marvel entertainment and the white house for comment on that and we'll update you as soon as we have it. one of the most rarely photographed ceos of america and there he is. >> would you read any more into that? >> he gave a nice report there. i'm fascinated it. those new apps that you can facially recognize anyone, that's creepy. it's a new utility for the press pool. >> these days you never know who can pop up. on friday president trump signed an executive order to begin unraveling the dodd-frank financial reform law and issued a memo that many thought would delay the roll out of the labor department's fiduciary rule.

that rule may not be delayed at all. those details are next. plus president trump is being called the chris paul of politics. what does the nba star think of that? he'll join us later on the collective bargaining. you're watching cnbc first in business worldwide. you do all this research

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president trump issues a memo delaying the fiduciary rule. the rule may not be delayed. elon has that story. >> reporter: here's a copy of a memo president trump signed on friday. administration official sells it would delay the start of the rule but there's no text in here that actually does that. this is a big change that caught both industry groups and consumer groups off guard. it's a major victory for the industry. they have been arguing the rule unfairly exposes the home litigation and investor choices in saving for retiermts. the industry says it could cost them as much as $20 billion in loss revenue. pushing back would have given the labor department time to figure out. it requires the labor department to look at the rule again.

i spoke with tom perez and he was critical of the white house. he said they pre-judged the outcome of the review and questioned whether that's legal. both sides of this debate say they are just confused. i reached out to the white house for clarity on whether there might still be a delay. it's unclear if they have the authority to push back this rule after all. they do have a few thousand things going on. how will a delay impact the investor. joe stein supports the fiduciary rule along with greg. welcome first of all to both of you. greg, how are you reading these tea leaves. is this thing delayed. will they get rid of it? >> it's clear that they are going to delay it. and probably kill it all together. the executive order seems consistent with gary cohn's philosophy, the president's philosophy of deregulation. i think the executive order is somewhat short on detail but it

is consistent with the overall policy of deregulation. >> do you have clients in this business who would benefit and if so how much if this thing is changed. >> anybody who represents broker dealers would have clients who benefit from the repeal of this fiduciary rule. you know, it's projected that it could cost up to $20 bill tloinl pleament this rule overall with litigation cost and compliance measures. so i think in general the broker dealer industry and the industries that are recommending these products are looking forward the repeal or if not the, you know an amendment. >> wall street and the old way of investing is jumping at this change of administration, an opportunity to do whatever they can to get back their fees. they want to see their profits go up. they want to take advantage of consumers in a way they always have and everyone knows they already have. they want to get back to the

good old days. it's unfortunate and i can see why the administration is hesitant to actually really in writing challenge this rule because this writing is clearly in the best interest of consumers. obviously good for americans. >> what's your skin in the game? >> for us the most important thing is that americans lose every year $17 billion to conflicted financial advice. that's unacceptable. we should live in a country where people can trust the financial advice they are getting. do you want our children to live in a world where you can't trust financial advisorsadvisors. nobody trusts financial advisers because we know they don't have our best interest at heart. fiduciaries want this rule to go through because it's good for americans. old way of invests is digging in its heels and trying get back its profits. >> registered investment advisers which is subject to this fiduciary standard as been out there for a long time. they've grown alongside traditional broker dealers who are not subject to the rule.

has the marketplace not been able to sort this out in your mind? >> i don't think, you know -- i think the marketplace is fine as it is. and, you know, i think there's room for firms like his. the traditional broker dealer has to have the opportunity to advise the clients the way he feels best do. not necessarily based only on price but on the best products for that person. and i think -- i think in a lot of ways fiduciary rule thwarts or puts a chilling piece -- >> a lot of mischaracterization what this rule does and i feel like -- it's not limiting choice at all. this is about having the same choices and more information about those choice which everyone wants. we all want to know what we're paying for. gary cohn, adviser to the white house said last week this is like giving people only health

food and taking away all the unhealthy. that's not what it is. being clear, giving people a choice to eat what they want to eat. they still have that choice. >> they don't have a choice. the threat of litigation. >> one at a time. greg go ahead. >> with threat of litigation over their head and fiduciary contract that needs signed i don't think that's true. i think there's a chilling effect be created. >> let me ask you about one thing that could have a possible ripple effect is the cost of anybody getting this kind of advice or the access going to be affected by this higher standard. does that filter through. >> look at every industry that technology has come in to change for the better. more clear. people make better decisions. that's what this rule is supporting. >> gentlemen thank you. a spierrited debate. we got a news alert on gap sales. courtney regan what are the

numbers. >> reporter: gap putting out their january sales increasing 1% total and that now rounds out the quarter for gap. fourth quarter gap costs up 2%. that's the first positive comp quarter for gap since the fourth quarter of 2014. so we're still seeing some weakness from banana republic for january the comp sales for banana were down 4% but positive at old navy and namesake brand so that gave it a positive january making a positive quarter for the gap. also giving some full year earnings guidance the gap is now seeing full earnings between $2.01 and $2.02 above the street's expectation which was looking for $1.96. shares are higher by more than 4%. >> 4% move on these numbers. >> not too bad. it won't change what you already thought about gap either it's in this decline or it's cheap and they can figure this out and

keep things stable. either way you can play this. the stock has gone between 18 and 30 for the past year and a half so you see it's going to get a little bit of a bounce but within that range. tech firms are firing back against president trump's immigration executive order. the ceos of 97 tech companies including apple, alphabet and microsoft filing a legal challenge claiming the order hurts their business. up next we'll tell you which other firms are involved and which are notably missing. plus disney shares are up 360% since bob iger became ceo in late 2005 and now he may extend his tenure longer. find out if that's a red flag about lack of possible successors at the mouse ears. tok

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>> welcome back. 100 tech ceos are taking legal aim at president trump's immigration orders. >> reporter: tech has now taken this immigration fight right to the president. the list signing on to this brief includes virtually every major tech firm, apple, alphabet's google, facebook, uber, netflix and microsoft to name just a few. on this executive action the filing says the order affect as sudden shift in the rules governing entry into the united states as inflicting substantial harm on u.s. companies, it hind terrifies ability of american companies to attract great atlanta and increases costs on business. paypal ceo telling cnbc we're

expressing our commitment to the principles of the constitution and support for our colleagues and their families who have immigrated to the u.s. and those who seek freedom and opportunity in this country. now there are companies that are not part of this filing including oracle, immaterial and amazon. as for amazon it did file a delaration of support in a lower court in washington state last week challenging this order and amazon spokesperson saying the company has been a core part of that attorney general's action since the beginning but the ag in that case preferred that amazon not join this brief because of a witness in the original lawsuit. back to you. thank you, josh. it's deja vu all over again at disney. bob iger may extend his contract for a third time. up next jim stewart tells us why disney is having a hard time finding his successor. you may know him best on the

basketball court but chris paul is making a big name for himself in the investing world. find out where he's putting his money to work later on the "closing bell". whis that ma s, urol

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welcome back. we almost turned positive at the close on wall street for the nasdaq and the dow which finished lower by three and 19 points respectively. the s&p dropped a quarter of a% and the russell dropped as well. let's send it over to sue herrera for the cnbc news update. >> reporter: here's what's happening. president trump says the u.s. will defeat terrorism. a vow he made during a visit to u.s. central command in tampa. the command overseas military forces in the middle east. >> we will ensure that the men and women of our military have the tools, equipment, resource, training and supplies you need to get the job done. you've seen me say we've been depleted. >> reporter: a rally took place outside of the federal courthouse in wichita as more than 50 people voiced their displeasure with the recent gun sentencing in kansas. they were upset by the

convictions of two men who relied on a law that protects them. the judge gaefg them probation. maserati recalling vehicles after discovering two defects that could cause fires. that's the news update at this hour. back to you. disney is said to report earnings tomorrow. there's reports bob iger may not retire in 16 months as expected. while the stock has soared 300% under his leadership he actually didn't get off to the smoothest start. julie boorstin has the story. >> reporter: that's right. bob iger has had a remarkable run. not just growing disney stock by 360% but also transforming the company by buying pixar, marvel and lucas film. the "wall street journal report"ing disney may extend his

contract for a third time. it expires at the end of june of 2018. disney isn't commenting and no update on the company's ceo search since last spring when iger's heir apparent announced his departure. disney has said it's looking internally and externally but there's no obvious successor. the two internal names are ben sherwood and head of disney's parks. neither of them has much experience as former ceo stags or as iger had. it's worth noting iger faced skepticism when he took on disney's top job criticized for mixed track record at abc and faced a lawsuit from disney about the process that selected him. we can expect iger's succession or contract extension to come up on disney's earnings call tomorrow afternoon. >> we certainly can. let's talk more about bob iger's future and what's ahead for disney. joining us is james stewart "new

york times" writer. how would you describe iger's tenure thus far? >> phenomenally successful. the way he's managed. one of the reasons that i think it's a little risky for him to the stay too long is that disney is doing so well that it's hard to argue that it has anywhere to go but down. movie division he's really turned that around and just made it a hit which is really difficult in the entertainment business. cable networks are having a lot of problems. that's what people have been focusing on lately but they are still humming along and contributing a huge amount of revenue. theme parks have done quite nicely. the question is, how do you go up from here? >> it's interesting, i mean in addition to all that jim has said some could say that perhaps because the business is at a bit

of a difficult point it's hard to know if you want to hand things off when there are certain things in flux, in terms of what the cable bundle will look like. everyone acknowledges disney has the best intellectual property. so the question is how do you kind of set this very long succession train in motion. they haven't set out exactly what they have. >> is that a problem, jim that they haven't. >> succession is always a big problem in a company like this. it's worrisome to investors. for the time being it's fine. for iger to stay on. a year ago when they abruptly said that tom stags was no longer the successor which shocked a lot of people including me, they said this doesn't mean iger wants to stay longer we'll immediately launch a search. if they launched a search there's no evidence of it it's the most undercover search

anybody encountered. nobody knows of a search being under way. i don't think they have been looking. iger has decided he wants to stay longer. the question is yes they are at a key influx point. is that a time when you want new thinking, pressure thinking to come in or an approach that's worked over the last decade the thing you want to stick with. that's a key question. you definitely have got to get some new ideas in there to confront. this is a serious problem. i've seen a lot of estimates on it. it doesn't really look good. if disney and espn especially have benefitted from this amazing system where millions of people pay $10 a month for espn and never watch it. that whole model is eroding pretty quickly. >> it's interesting to see the successors thrown. you have steve burke on one hand very traditional kind of model there. you have sheryl sandberg from

facebook. >> i don't even know if the board of disney has a very specific model of that person who will be the successor. i think for context how many companies were they long serving ceo do you think know exactly who will be ceo in 16 months. i think disney is suffering -- >> 90%. >> no way. disney is suffering from transparency they've had for years of setting this process in motion and then having to go back on it. cbs is older than bob iger. nobody talks about it. >> do you think large lir speaking corporate america doesn't have these -- the boards don't have these succession plans in place >> iger supposedly has been discussing succession with the board on a regular basis. what's the board's main job picking the ceo, hiring a new ceo, overseeing the succession plan. they got to be talking about succession. you can't have turmoil in a company like this. at a point where, you know, a smooth management handoff is so important. now, again, if it flips a year

or two no big deal but much longer than that it's a serious problem. by the way i don't think any of the names publicly mentioned are likely for disney either because they don't want it or they don't bring the newer expertise and new ways ever thinking that they need in a rapidly changing world. paramount, viacom didn't bri bringlebrin les in. >> we know the numbers are changing rapidly. how competently can any leader go trying reinvent something so successful when you see it chipping away at the edges. how aggressive should someone really be. >> i've seen a lot of studies what happens if espn has to go over the top. the numbers that people would have to pay to make this work under the current system are huge. i don't think people are going to pay $100 a month or $60 for

the espn option over the top which is what it would take to replicate these revenues. they are locked into these huge cost structures that was based on the old-fashioned cable bundle. that's a huge problem. what kind of person do you need come in and negotiate this while also dealing with a rapidly changing audience taste. delivery methods. cinema system. this megahit adventure thing depends on young people still going to the cinemaplex. >> what's the number one thing to listen for on the wall. exactly what type of skill set they would be looking for. i don't think they feel as if this is something that they have to get somebody in here to put a fire out. just to dial back to what julia said earlier you don't know who the right person will be. iger came in and thought avenues lightweight. >> jim, what about you?

>> they got to be looking in the technology arena in today's world. yes on the call people are going to want guidance on succession and people will be fixated on the cable revenues, on espn's performance, on espn's subscribers. that's the dominant story certainly for the short term stock investors. all right. we will all be listening tomorrow. jim thanks for joining us. sure. jim stewart from the "new york times". up next we'll chat with nba superstar chris paul about his new business ventures. tomorrow tune into "closing bell" for an exclusive interview of the ceo of royal dutch shell. we'll talk to him about president trump's energy policy and many others. don't miss it. in kn.

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welcome back. turner impact capital a social impact investing firm which looks to bring affordable housing tworking class families in america is getting huge assist from one of nba's big stars. los angeles clippers point guard chris paul will be joining the firm both as an investor and an ambassador. chris paul joins us now along with bobby turner who is the ceo of turner impact capital. gentlemen thank you both for joining us here. chris, we just would like to ask you how you got involved. >> yes. first and foremost thank you so much for having us, kelly. for me i'll tell you one thing, me and bobby had mutual friend and our connection is not about him trying to help me be a better point guard. we both share a common interest

in trying to impact under served communities and that's our plan. >> chris, what other investments -- is this something that's a first time for you or are your kind of looking towards a career beyond basketball? >> well this is, obviously, my first time. but definitely would love to get involved in other things as my career goes on. but this is something that i was truly passionate about, me and bobby have had a number of conversations. i've had an opportunity to do a number of philanthropy different events throughout my entire career and philanthropy has been something that has not only been fulfilling to me it's been frustrating because we've been able to partner now with this fund and try to make sustainable change. >> and bobby i see you've worked with people like eva longoria. why chris paul and what your plans for this fund. >> this fund is trying to

address and takele one of the most daunting challenges we face in america which is the disparity in urban communities. one out of four renter households today spend over 60% of their income on rent and that comes at the competence of food security, health security, retirement security. we're trying to create an innovative business model that tackles that issue and addresses affordable house. by partnering with chris he's not just an investor but an ambassador of great will that helps raise this issue. >> how does this work and also make a financial return on it? this is an area where obviously the government is heavily involved in trying to subsidize housing. how can you make that a business model? >> so it's a great question and most people believe that if you superimpose a societial return on metric you'll sacrifice yield. that's not the case. the reality is two play nicely

in the sand box. one increase revenues. increasing rents on community, a central service worker who has seen no wage inflation over 40 years is disheartening. reduce rents. we recognize there's no pride in renting. nobody works two jobs a day and spend 50% income on rent and say god i love living here. there's tremendous turnover. by enriching the community with health care and education and safety and security you can create a pride in ownership which in turn translate into longer duration of tenancy. then you dramtsally drop your occupancy, turn over cost. we are a for profit solution as well. >> chris i give you credit because my head is spinning but i was just going to ask you something that "the washington post" said over the weekend. it says what chris paul and steph curry can teach us about president trump and basically

what the writer suggests your go hard early strategy is basically what the president is doing right now. what do you think about these comparisons? >> well, i'll let those comparisons stay where they are. i didn't see or hear anything about that. for me right now it's all about seeing what we can do to enrich these different communities we're involved in and first and foremost get healthy. >> i see that. i was wondering about the glove there. we absolutely hope that do you. i was going to -- sort of along the vein of what's happening in our society ask you because one of the main things the public may remember you about that high school basketball game where you scored 61 points after your grandfather was killed. he was 61 at the time. when you look at some of the violence that's taking place in communities like chicago and elsewhere today and because i know you're so involved with the nba players and just, you were student body president for three years running if anybody can figure out how to go and inspire change i feel like it would be

you. what do you think about some of the unfortunate things happening in places like chicago today? >> well it's not just me. i think myself along with others can bring awareness and different things in these different communities. i was a victim of some teen violence with my late grandfather when i was in high school. it's all about change and what we're trying to do in these under served communities is huge. i had an opportunity to play in new orleans for a number of years and had an opportunity to see what some of the communities looked like and some of the challenges that these kids face on a day in, day out basis. april lot of these kids need hope. they need to know people truly care about them on daily basis and not just for a one off or a picture or for a ribbon cutting. i think that's what my family, everyone has always been about and i think that's what we're trying to do here with inprogram. when we have celebrities or

people like yourselves come through a program we often like to ask what their biggest money mistake has been. speaking to those teachable moments. what do you think so far looking back has been a big money mistake you learned from. >> that's a great question and one that was unexpected. i think for me -- i think for me it's just to ask questions. i could dive into a whole other thing right now but for me i was 19 years old and thrust into the nba. so it was a difficult task not only for me but for my family. so the biggest adjustment for me is to ask questions and find out about financial literacy and i think that's the next step for us as professional athletes and everyone. >> bobby, what about you? does one come to mind? >> oh, i would say that the thing that was a revelation to me i always thought by creating wealth would generate happiness for me and my biggest mistake not recognizing sooner in life

the only thing wealth guaranteed me was a form of misery. doing good and doing right by society isn't exclusive. we don't believe divisive is the disparity of wealth it's the disparity of hope. >> great place to leave it. what's it like to work for steve ballmer? >> it's basketball at the end of the day. he's been amazing. the passion that he fwroinbring our organization. if anybody can imagine owning a franchise that you're a fan of that's what he is. nothing like seeing someone as a fan. he's a real fan when you see him there at the games. if you can't play hard for that then i don't know what you should do. >> guys, so much more we could ask you. thank you again for your time. good luck with the hand, chris. i appreciate you being here. that's chris paul with bobby

turner. >> thanks for having us. they already sell groceries online but amazon is reportedly considering opening a two story grocery store operated by robots. we'll have those details next. later patriots quarterback patr tom brady led his team to victory in the super bowl. we'll look at companies and could use a leader like brady for their own comeback magic. o ? .

the new york post saying amazon's plans for a supermarket of the future could include a store run completely by robots and relying on as few as three employees to run the store. would it include grabbing and items for shoppers. the stores would represent a larger version of the go grocery stores featuring no cashiers,

registers or lines. instead an app on customers' phones would pick up any items picked up for purchase. an amazon spokesperson has denied this saying to cnbc, as we told the new york post, we have no plans to build such a store and their story is incorrect. our viewers will remember the "wall street journal" had a similar story about amazon's plans for 2,000 of these stores that amazon also denied. you're starting to wonder if where there's smoke there's fire. >> certainly at least amazon has research efforts, prototypes, things that they're exploring. i think where you would come down on it is to say if they were interested in anything like attack groceries in the physical store format, you would have to do it this way. given the margins in a supermarket, o a unionized work forceful you won't make any money. >> it seems like in f this works in a warehouse, why wouldn't it work in a smaller format? reading back in the day, it was

an innovation to have cash and carry grocery stores. i think it was the pigly wiggly era. they would grab and it deliver it to you. it feels a little like back to the future. nobody really enjoys that store experience anyway and perhaps this is an innovation that we'll see. >> i don't think anyone doubt that's there's appetite for a better model there. the question is can you do it profitably? delivery an open question. >> you have to get that fleet of drones out there. after a big win last night in the super bowl, are there companies and need tom brady to come to their rescue? we'll look at stocks searching for their own comeback. and julian emanuel says there's a correction on the way. aha mont st nolo en gou

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we've gotten to this game before and not finished it off the way we wanted. it took kind of a miraculous effort to do it. just so happy that we could get it accomplished. >> that was tom brady reto the dramatic comeback win last night in the super bowl over the atlanta falcons.

brady had us thinking about some companies and could use some of his magic. naturally we turn to you, mike. >> i look for companies that had some record of achievement in the past. they may not have been favored like the patriots. but viacom has been kind of on the wrong end of a lot going on in the industry. hit that ownership drama. it seems to me that's one you could have new leadership coming in saying. kohl's is an interesting one. i don't know that anyone is convince that had that as a mid priced mainline retailer has a great future but there may be ways to rethink it. this is something that they used to be solution and then they became an emblem of a perceived problem. and then twitter. >> the bird. >> the one we all talk about as being dysfunctional. its leadership and its execution. another one, i don't know if could i give you a list of what to do.

the the question is about the franchise. does all that take is a leadership change at the top, for example, to get them over the, into the, what am i trying to say? end zone. >> it's completely unclear. it is like, we have the game plan. you have to execute that specific job. that's not often the case. and do you think leadership is the problem? >> not in every case. in viacom, leadership has been in a flux state, you could argue yes. maybe twitter because you have half a ceo. >> real quick will you on the markets, we have a couple earnings to watch for. today, a little sleeper but it feels like europe will be the story again. >> overnight europe and asia. i mentioned gold perking up. i don't know that there's anything brewing because the corporate bond market is very

settled and strong. i don't know if you're seeing signs of stress. things have been so calm for so long with tuesday equity index. >> thank you very much. dpits for "closing bell." "fast money" starts now. live overtimes square, tonight on "fast," stocks are near record highs at one of the top strategists, julian emanuel said there could be a correction in the cards. plus, stocks still worth a buy. some of them are up more than 100% in the past year. and later, grasso has his eye on one stock that he says could deliver big profits for your portfolio. can he convince them to buy? he'll be taking to the mound for his very first fast pitch.