a lot of revamping. >> srg short seritage. thank you for joirning us. >> pete, john, jim, joe, thank you very much. i've enjoyed being with you. we have the big power doctor up. thank you, john. buy your book. "power lunch" with the great melissa lee begins right now. >> thank you, brian. here is what's on the menu. the nasdaq hitting yet another high but the dow, s&p 500 struggling today. flood of earnings meantime, where is the value in this market? and we have the outline now. can washington get a tax deal done? plus, why the elimination of a key deduction could trigger a massive flight of wealth. tackling concussions in football, how one company is reinventing the helmet. it's incredible stuff you've got to see. "power lunch" starts right now. melissa, thank you very much. welcome, everybody, to "power lunch." great to be with you.

great to have you here. stocks steady right now, as you see behind me as melissa said, the nasdaq, though, hitting another record intra-day high. it's been a good april. with less than two days of trading left in the month, the average is holding on to solid gains for the month. it's one of the stocks of the day, shares of retailer floor and decor, i think it's in my future somehow. i don't know. but i think it is. soaring on its ipo debut up more than 40%. you take that any day. here is what else is happening this hour, house speaker paul ryan says no final decision has been made on when to vote on a plan to overhaul obamacare. recode reports apple is in talks to launch its own money transfer service similar to vennmo. united airlines announced that ten major changes will take place following that disturbing incident of a passenger being removed forcibly from one of its aircraft. one of the changes pass skbrers

may get up to $10,000 for getting bumped involuntarily. melissa, sign me up. >> tyler, we begin with the biggest earnings of the quarter. bob down at the new york stock exchange. hi, bob. >> and the important thing is we're at the halfway point in the earnings are better than expected. take a look at the first quarter up more than 12%. 10% of the very beginning of the quarter. and it's been strong for the comments for the full year second quarter, third and fourth quarter, that's why stocks are holding up. this is a big relief to the markets that nobody is taking down the numbers for the year. let's take for example the transport. you see something strange today? all the railroads up, the airlines down, that's because the railroads had good numbers. union pacific beat, president trump said he is renegotiating not leaving nafta help to the airlines. airlines now, higher labor cost and american airlines is hurting all the rest of the stocks. big day for tech after the close. you got amazon, google, bell weather look at samsung, they had very good overall numbers.

that's a big company, of course, in the chip space overall. now, finally, big oil is going to report. we've heard from industrials. we heard from banks. tomorrow we'll hear from exxon. we'll hear from chevron. you see what's going on with oil? the big story is the continuing growth of shale and lesser influence from the middle east. that's going to be the big issue, but they're expecting these earnings to go up for these companies big time in 2017. we want to hear what exxon has to say about where oil is going to be in the second half of the year. guys, back to you. >> all right, thank you very much, bob. as bob just pointed out, this is one of the biggest days on the earnings calendar despite today's choppy run, dow is on track for the biggest weekly gain of the year. trump stock market score card as it stands right now has had the third best overall market performance in the first 100 days as president and the second best republican behind h.w. bush. let's bring in managing director and portfolio manager with reuss funds. gentlemen, great to have you with us. steve, start off with you, in

terms of valuations in the markets and in terms of what we've seen so far in a pretty decent earnings market what we heard albeit very vague outline of a tax plan, where do we stand on this rally? >> it's more than a decent earning season. it's another great earning season. 77% of -- through yesterday 77% of companies that reported beat their estimates. only 15% disappointed. as you pointed out, 12% growth. those are great numbers. on top of continued aggressive monetary policy, a very business-friendly administration as opposed to the obama administration, so it's only -- i mean the market rally makes all the sense in the world to me. yes, valuations are getting a little stretched, but boy the sun sure is shining as far as the stock market is concerned. i don't see a whole lot of reason -- i think we'll get a technical correction here. we had a big rally. i think we'll pull back a little bit from a technical perspective. i've got cash i'm waiting to put it to work on a pullback, but i

don't see the market having a significant decline. not with this -- not with this setup. >> jay, are we seeing everything come up roses really, or are we whistling past the graveyard? aren't there concerns looming in terms of whether or not a tax deal gets done in any way, shape or form? the french elections seems not to be such a big problem at this point, but still we've got a lot ahead of us and we're at full valuations as many people point out? >> well, we are. some of that is absolutely true. earnings have been okay. we're in the small cap space so earnings reports tend to come later, but so far so good. the setup like steve said is okay, but you're correct, the market has, i think, priced in a good expectation of reductions in corporate tax rates which are very good for small cap stocks, infrastructure spending. very good for small cap stocks. we'll see what happens. the market is looking through geopolitical but the russell 2,000 has been up around 18%

since the election. a good chunk of that was in november. some of that was this past week. so you know there could be a pause, but in small cap -- small cap value lagged for years and years. late last year small cap value started a resurgence versus small cap growth. we're small cap value managers at reuss so we feel good about small cap value within the russel 2,000. >> i think of chuck reuss and your shop and value and small caps. so in what areas specifically of that universe are you concentrating your focus right now? quickly. >> i've got some financials. we have cyclicals, technology, so you know it's very broad but we're looking at company by company. we have investment banking, we have pc connection in technology. we've got general text is an automotive supplier, so all of those, the company fundamentals are very, very good. in spite of what the market may or may not do, for the next five years those should be very good stocks. >> gentlemen, thank you.

>> thank you. now to the d.c. action also driving the market these days. we're just an hour away from president trump signing a memorandum on aluminum imports plus washington still buzzing over the unveiling yesterday of the outlines of the president's tax plan. the big question now is how will it get paid for if indeed it will. steve mnuchin weighed in this morning on "today" show. >> when we come out with the details of the plan, this will be paid for combination of economic growth which will be around 3% or slightly higher and a combination of by reducing massive amounts of deductions in special interests. >> all right, will the white house be able to negotiate this deal and get it through congress? let's bring in robert costa national political reporter with the washington post. so, robert, what was the reception on the hill to this proposal? >> there was an embrace but not

a hearty embrace by congressional republicans. they like the idea of sweeping tax cuts, the 15% corporate rate, but when it comes to the reality of law making here at the capital, they know that it's going to be a very difficult vote, that there are not enough votes there yet for the trump tax plan, the house has its own tax plan that speaker ryan has been working on. so they really have to try to find some common ground. can they actually keep the 15% rate on corporations because other plans have it more around 20%. they're going to have to try to figure out will this be a deficit hawk republican party or not? where are their real priorities? that all has to be worked out. >> i can well imagine the line of attack from the democrats will be two things -- one, we don't know how much this helps mr. trump because we don't what his tax returns look like. that's one. number two, if you're a working person in this country, you can see a massive reduction in the tax rate for corporations from 35% to 15%.

that favors corporate interests, businesses, small businesses, but there is not a commensurate reduction for individuals in rates really. it's not that big a cut, and individuals lose a lot of deductions that they otherwise would get. >> that's exactly right. if you look at some of the banner headlines in my newspaper and others, it focuses on the fact that this tax plan helps those who are wealthy and those who are running corporations or corporations themselves. my sources at the white house say their counter to that is they hope the working class base around the country recognizes trump's activities on trade, his tariff activity, his efforts against nafta perhaps to even withdraw. they hope that will balance out this narrative building in washington that it's all about helping out corporations and rich people. >> robert, there are certainly many things within this broad outline of a plan that democrats and fiscal hawks within the republican party will oppose.

at the same time, is it maybe -- is it too optimistic to think this is an opening gam bet and the administration left themselves enough room to negotiate a way certain things that would otherwise be sticking points in order to accomplish other more important things like getting the corporate tax rate down to as close to 15% as possible? >> it's fair to say based on my reporting that this tax proposal as is really a theatrical flourish. it lays out the principles, but it does it before the 100 day mark which is so crucial for this white house. the president himself i'm told is really driving his staffers to try to come up with some action on taxes that the president has been listening to larry cudlow and steve more thinks through his tax plan, but the white house acknowledges privately and somewhat publicly that there's so much ground to cover still on capitol hill that as much as they have these plans and principles out there, it doesn't mean this is going to come to a vote or become law any time soon. >> all right, robert, thank you. also an nbc news political analyst. sticking with taxes, key

kpaent of president trump's reform plan is a major concern for those living in high tax states. robert frank is here with all the details. >> we know that the top 1% pay more than a third of federal income taxes and they are of course the biggest beneficiaries of state and local tax deductions. let's see how much they would lose and what it could result in. $30,000 a year from the deductibility of state and local taxes. but a small slice of super earners in high tax states, they account for the lion's share of that. new yorkers make more than 1 million a year save an average of over a half million a year from that deduction. now, californians who earn seven figures they save an average about the same $497,000 a year. if they lose that benefit, the wealthy could have another incentive to move to florida, arizona, texas or no other income state tax. realtors in florida telling me this morning they've been on the phones with clients saying they have yet another reason to head

south and buy some real estate, but even taxpayers in florida stand to lose a little built. check this out. taxpayers in florida taking $14 billion in deductions from local taxes so that's not just the state taxes, because there's no state income tax, but the local taxes, the average deduction for a florida millionaire is $133,000 a year. so we could have an acceleration of the millionaire migration to low tax states but millionaires throughout the country could feel this. another thing that i think has made this overblown is that the amt prevented some of the wealthy from using this deduction in the first place. so, it may not be such a big impact. >> because the amt goes away. >> right. >> in this. so the average write-off for that high strata in florida is $133,000 a year. >> that's right. >> that's from, what, property taxes? >> property taxes -- >> and other local fees. >> school taxes. >> because there is no income taxes. >> to your point, tyler, when you boil all this down, the rich

will be fine because they have llcs and like donald trump, they can write -- the working wealthy, the salaried affluent, especially in these high tax states, they're going to see a major increase because they never were subject to the amt and they're going to lose this deduction. >> and the deduction -- the loss of the deduction in short will cost them more than the reduction in rates will benefit. >> absolutely because they are not going that far down in rates now from 39.6 only to 35. so, they're going to see a big increase. again it's the working affluent not that we should feel too sorry. >> they have very limited ability to move their jobs. it will be interesting to see what corporations do to respond to their workers and where they want to live. >> absolutely. >> thank you. still ahead the chief investment officers of one of the biggest activists investor firms on the street weighs in on this market and where he sees opportunity right now.

>> plus, the countdown is down to the 2017 cnbc stock draft. eight teams, 50 stocks, one winner. who will reign supreme? it all kicks off at 2:00 p.m. eastern time. you do not want to miss it. you think traffic's bad now, the future's going to be a nightmare! does nobody like the future? c'mon, the future. he obviously doesn't know intel is helping power autonomous cars and the 5g network they connect to. with this, won't happen in the future. thanks, jim. there's some napkins in the glovebox. okay, but why would i need a napkin? you could have just told me a bump was coming. we know the future. because we're building it. ...you realize the smartest investing idea,

isn't just what you invest in, but who you invest with. ♪ usaa gives me the and the security just like the marines did. the process through usaa is so effortless, that you feel like you're a part of the family. i love that i can pass the membership to my children. we're the williams family, and we're usaa members for life.

hey you've gotta see this. cno.n. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. welcome back to "power

lunch." 13 d monitors active passive summit with my guest, ed garden, co-founding partner and cio. nice to have you here. >> thanks for having me. >> you spoke not too long ago talking about the changes that have taken place broadly speaking in terms of corporate governance and ownership. what do you mean when you talk about owners acting like owners as you did briefly here. >> what i said, david, is that something big is happening in the public equity markets. and that is that owners are acting like owners. and it sounds so basic -- >> yeah, it sounds like something that should have always been the case. >> sounds so basic, but you and i know for the better part of the last 100 years that wasn't the case, right? public share owners feld like if they didn't like what was happening at the company, their only option was to sell, right in there's a huge gulf between the owners and the managers. all that is changing. and i think there's a lot of reasons for that. the consolidation of the shareholder base, for instance,

but i think the biggest reason is the transfer of wealth that's happened from public share owners to private equity over the last say, 40 years. right? public share owners have watched as private equity has taken underperforming public companies, underperforming divisions of public companies and made a fortune. and the question is, why and how does that happen? >> right. >> some people as you know say it's simply a function of the capital structure. really doesn't have to do with the underlying performance of these businesses. levering up and benefits from low rates. >> i have a different view. if you look at a company in the private equity context, the owners are the board. management is reporting directly to the owners of the company and those owners are very informed, very engaged, lot of skin in the game, very different from a public equity context. so, there's something in that ownership mentality, in the board room dynamic that creates really good results.

and that's basically what we do and i think what you're seeing is you're seeing public share owners move up the ownership mentality spectrum. they're obviously never going to be at the private equity end of the spectrum, but at trian, we're in the forefront of all that. >> can you do it without being on the board? or is that in some ways always sort of an end goal when you get involved and take a very large position, for example, as you have in ge or procter & gamble. >> most of the time we're going on the board. but ge is actually poignant example of what i'm trying to describe. >> we're not on the board there. >> right. this changing relationship between owners and the public markets and managers. so, think about ge. iconic company, big company, important company where they ask trian to become a share owner. we put out a public white paper, as you know with all the reasons why we like the business. but we also said that we would hold management accountable to

deliver on their commitments. and they missed their numbers last year. our first full year. >> not the last quarter, the quarter prior was not a good quarter. and to be fair, your white paper then is capital the stock did very well, since then it has not. >> it always comes back to earnings. in 2016, our first full year in the stock, while they hit on the eps line, it was because of lower tax rates. so they missed on the operating income line. at which point we intensified our engagement with management. in going back to my earlier point, owners involved with management, our involvement with management led to the company filing an 8k in march which basically laid out a set of initiatives that i think increased the probability that management will be successful, right? so, committing to an ebit number to ensure the eps is high quality. starts with our operating income

number. cutting 2 billion of structural costs, need to cut costs because management acknowledges there's too much costs and margins need to go up and we changed the compensation system. and i think the important thing, david, is that by making those changes we've increased the probability of success for the company and for management and, you know, as share owners, i think we deserve to have this company on its front foot operationally. that's what employees want, then that's what -- >> do you feel confident that management is going to be able to deliver on what is fairly aggressive target? >> management understands that they need to execute. right? it's all act execution. i think it's the right initiative. now they need to deliver. and 2017, david, is an important year for the company and for management. they feel the pressure. they know they need to deliver. they know that share owners will probably be looking for

significant change, if they don't. and you know, we're rooting for them. >> in the brief time that we unfortunately have left another name, another megacap name of course that we try to recently take a large position in is procter & gamble. some first of all wonder why even bother with that? how do you generate alpha from something that's a gdp grower that's that big? >> procter & gamble fits our profile because it's a fundamentally great business but where management is looking to navigate some operational challenges and we think we can help, there's change in consumer behavior, there's change in technology. >> how do you help them? and i would assume you've had some early discussions, as you would as an owner as you point out, what is your sense as to how this will evolve? >> so we've had constructive conversations with management. we've met with them a few times

now. i would tell you there's a lot of common ground. i think we share the same vision of where the company needs to go. and the real question is how. how do you get there? and how do you navigate those changes? and having constructive debate around those matters and i'm hopeful that -- i'm hopeful that we'll be able to work great together. >> when you say share a common view of where the company needs to go, what does that mean? >> it means being best in class in every way, including organic revenue growth and margin. >> ed, unfortunately we're tight on time today. so you and i are going to have to do this again very soon. >> thanks very having me. >> thanks as always. >> chief investment officer of the $15 billion giant trian. shars of underarmour up more than 9% today. still down more than 25% this year. we'll tell you what's behind today's jump. and the big question, will under armour be one of the picks

in our 2017 cnbc stocks draft? the stage is set. the teams are arriving. only one can be crowned the winner. who will it be? and what stocks or gold or oil will get them there? remember, this all begins at 2:00 p.m. eastern time. we're back with "power lunch" and the stocks draft coming up. stick around. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and.

♪ all right, welcome back. hi. welcome back to "power lunch." i was thinking about the stocks draft so much that i was --

>> you're focussed on team. >> focus on this teleprompter. i'm going to read stuff. under armour soaring after reporting a smaller than expected loss. they expect to hit four-year targets. under armour stock on pace for best day since january of 2017. shares of pay pel up 7% and announcing a $5 billion share buyback. if you own shares of american airlines, you are losing money today. that stock getting clipped that about 6%. they missed earnings estimate and announced a big pay increase for crew members and pie t los. increased labor costs. google and amazon getting ready to announce profits. counting down to the 2017 cnbc stock draft. who cares about the nfl draft. we have money-making opportunities for you. eight all-star teams, 50 stocks, only one winner beginning in roughly half an hour. the stage is set. the hats are prepared. ♪

repgovernor has declared a winter weather emergency... announcer: soon, insurance companies won't pay for damages, that is, not if they can help prevent damages from happening in the first place. at cognizant, we're turning the industry known for processing claims, into one focused on prevention with predictive analytics... helping them proactively protect the things that matter most. get ready. because we're helping leading companies lead with digital. [vo] quickbooks introduces and her mobile wedding business. she travels far and wide to officiate i do's. and quickbooks automatically tracks those miles. she categorizes with a swipe and is ready for tax time. find more than $4000 in tax savings. visit quickbooks-dot-com.

>> announcer: cnbc news update is sponsored by -- comcast business. built for business.

hi, everybody i'm sue herrera. here is your cnbc news update for this hour. president trump welcoming argentinian president to the white house. the president and the first lady greeting macri and his wife. it's the first face to face meeting with the argentinian leader. house speaker paul ryan says the house will vote on a revised healthcare bill, quote, when it is ready to go. he said progress is being made and confident moderate republicans will support the revision. >> what this amendment does is it gives states more flexibility and tools to reduce premiums and increase choices. preserving and protections for people with pre-existing conditions. mccain foods is expanding its recall of frozen hash browns in the middle atlantic states. the original recall included roundies. it says golf balls were

inadvertently harvested along with the potatoes and chopped up. i don't know why golf balls were harvested with the potatoes. >> that is -- oh my gosh. >> and the company did not release the reason why hash browns were -- >> they're asking for a mulligan here, right? that's what they got. >> i don't know. i researched it. i tried to find out why golf balls were harvested with potatoes. >> i bet some of them were mine hit into the potato fields. >> i don't know. maybe the potato field is near a golf course or country club? >> is that out of bounds. could you play out of the potato hash brown bag? >> apparently nobody was. >> do you take a drop? >> take a drop and hit a spud. that's the good thing. >> thank you, sue. >> i'll keep you posted. >> that's gross. >> that is really something. golf balls in your potatoes. >> why were there golf balls anywhere near the hash brown making machine? >> that is the question. apparently they were harvesting -- >> they were harvesting -- >> rat or llama fell in.

>> that means that begs the question what else could have been scooped up with those potatoes. >> oh, don't go there. i don't know and i don't want to know. >> don't eat potatoes. >> don't eat hash browns. >> harvested alongside public golf courses. big day for tech earnings today. amazon and google reporting after the bell in the ripple effects of espn's layoffs still playing out in the market. let's bring in senior internet and media analyst. it's like the super bowl for tech earnings tonight, anthony. so which ones amazon or google are you sort of more excited about in terms of the upside surprise? >> we have buys on both. they've been working for us, both of them have. i think you can own both. and the stocks have been fantastic. so they're discounting probably pretty robust numbers. i do think there's a little more pressure on google in terms of the numbers. only because, you know, with amazon, look, you're not expecting much earnings to show up. it's just more of a long-term

multiple addressable market story. for google, i do think the street will be focussed on mobile search which i think is doing well. as well as rising traffic acquisition costs as well as margins. we'll see. it's a big night, yes, like you said. >> is there any question that the impact of the advertisers sort of boycotting youtube will show up in the results. google posted three-quarters straight of more than 20% revenue growth. get much short of that there might be those concerns again, no? >> right. we're expecting just shy of that for the quarter, 19%. i do think any of the issues around the youtube brand on safety is more likely to show up in the 2x or 3q because of the nature of the timing of when that sort of hit. sure, management will address that on the earnings call this afternoon, probably talk about all the things that youtube is doing in terms of its internal controls and helping marktsers and advertisers feel better about that for the quarter. and of course unlike amazon, google does not give guidance

for the forward quarter. results will be fine mostly driven by search, program attic advertising, hopefully expense controls and margins and focussed on attack. the apple agreement -- amazon, you know, look, last quarter the results were not that great. still very strong growth rates but a little bit soft. and i think investors are more willing to give amazon a pas just given how innovative and disruptive the company has been. >> anthony, thank you. >> thank you. >> well, our parent company comcast hitting new highs. and our chairman and ceo was on squawk box earlier today. and he weighed on the fight to shake up the rules that govern the internet. >> i believe this is the beginning of a dialogue to say how can congress or which ever legal body comes up with enforceable rules to protect consumers but do so in a way that we're going to spend over $10 billion in capital spending

doesn't jeopardize that ability to make those really large decisions year after year after year after year as the wheel changes. >> stepping into the fight, brewing over the fate of speeds on the web, sam altman, the tech exec who helped bring you air b&b and drop box. it's good to see you again, sam, welcome back to "power lunch." obviously -- >> thanks very having me. >> comcast is our parent company. we talk about this issue, people have to know that because -- >> yeah, i'm sorry to come on your show with a different opinion. >> no, no. that's what we want. that's what comcast wants. how do we balance out the idea that the internet is expensive. fiberoptics are expensive. wireless are expensive. >> sure. >> how do we balance out making sure that the googles the come cast, the at&ts of the world get a return on their investment so they make the investment and making sure we've got sort of the equality and the democracy

of the web to make sure entrepreneurship can prosper? >> well, look, i think this is a common argument against that neutrality. you look at the investment in internet infrastructure since the title 2 law passed, it's gone up. so, we've seen more investment in internet infrastructure and i think this is because the internet is just an incredibly powerful force. you know, when power companies were rolling out the electric grid, there was such an incred need for new infrastructure and consumers wanted this so much that people kept investing, even though there were regulations on that. and, you know, all we're saying is just like when you buy power from a power company you don't want to be charged a different rate if you use it for your toaster or your blender, people should get paid for delivering energy to homes and they do. and people should get paid for delivering internet to homes and they do. but the internet in 2017 is no longer optional. it's no longer an optional

service if you want to be part of the economy. >> so you believe sit a public utility. >> i do. >> aren't i charged a different rate per kilo watt-hour at different times a day or by different companies? >> different times of day is fine. and i would be fine for that with the internet as well. once those electrons come into your house, you can do with them whatever you want. you know, you don't pay a different rate to turn on your lights or run your refrigerator. you get electricity and you use it how you want. and i think this is critical to the internet. we have had just an unbelievable run, all those tech companies you announced just i was on the show that were releasing earnings today, they're newer companies that didn't exist a few year ago and all these services that we use and love are possible because we've had fair rules and open platform where entrepreneurs and small startups can compete. this isn't possible in most of industry. >> back to what -- >> they began with -- >> what's fair for both sides of

this conundrum? >> well, again, i absolutely support the need for internet infrastructure providers to make substantial profits. and i think they have been. they'll continue to do that. because consumers really want internet. the internet again it's not an optional service. and i think people should be -- able to charge quite a bit for internet access and they should especially if they make it faster be able to charge a bit. what i don't think is fair is for the companies that control the only ability you have to get access to internet in your home or business to say we're going to prioritize this service. we're going to do a back room deal with this other service. it should be an open platform. the services on top of the internet connection they should have to compete to be the best because that's how we as consumers win that's how we create the best possible economy in the name of entrepreneur. >> that's net neutrality. >> what's the risk, sam, if we go too far the other way and what do you see happening to these startup culture?

>> i think this could decimate startups. the internet has been the greatest area for startups in the last decade or two. and i believe the reason for that is it's been an open platform. it's been a platform where anyone can compete. you win with the best product. you win with the best service. you don't win by regulations and big companies that are able to use regulations. >> in the startups that you back or have helped grow, how many of them would sort of die a slow death if the rules were changed? >> it's hard to say that for sure because it really depends how much the rules are changed. you know, i don't think the government is going to pass something tomorrow that says no more new startups. we're done with that. it will be a slow erosion but i think we've seen this in many ore industries where at some point the incumbents get very powerful, lobby to get laws to protect themselves and this regulation prevents new startups and new innovation. i would be really bummed if we

didn't have amazon, google, facebook, snapchat, twitter, uber, these are not services that existed. they haven't existed for a long time. and there will be another waive of those coming and i want to be able to use all of them. >> sam altman of y commentator. we appreciate your opposing point of view. >> thanks. they've been prepping for weeks. the beards town ladies reign supreme in they'll be on the clock shortly. we'll check in with them next. and they will have to compete with seven other teams right here at cnbc. including a team from rutgers university, there are the cheerleaders from rutgers. the stage is set. it begins in 20 minutes.

we recently had a heart attack. but we are not victims. we are survivors. we are survivors. we are survivors. and now we take brilinta. for people who've been hospitalized for a heart attack. we take brilinta with a baby aspirin. no more than one hundred milligrams... ...as it affects how well brilinta works. brilinta helps keep platelets from sticking together and forming a clot. in a clinical study brilinta worked better than plavix®. brilinta reduced the chance of another heart attack. or dying from one. don't stop taking brilinta without talking to your doctor,... ...since stopping it too soon increases your risk of clots in your stent,... ...heart attack, stroke, and even death. brilinta may cause bruising or bleeding more easily,... ...or serious, sometimes fatal bleeding. don't take brilinta if you have bleeding, like stomach ulcers,... ...a history of bleeding in the brain, or severe liver problems. slow heart rhythm has been reported. tell your doctor about bleeding,... ...new or unexpected shortness of breath,

any planned surgery, and all medicines you take. if you recently had a heart attack, ask your doctor about brilinta. my heart is worth brilinta. if you can't afford your medication, astrazeneca... ...may be able to help. the stage is set for the 2017 stock draft, eight teams, 50 stocks, one winner. one of the teams is a legendary beardstown ladies investment club. they'll be picking fourth live

from beardstown, illinois. kate rogers is there. kate, are the ladies ready? >> reporter: melissa, we are live here in beardstown. they continue to strategize behind me as we speak. quick run down of who they are. we visited them right as the market was rallying post election. they have 15 members including two original charter members. they continue to meet once a month, contribute ta $25 to grow their portfolio. now it's about half a million dollars. buffy is the official beardstown lady spokeswoman of the day. we know you've been strategizing and studying for weeks. how are you feeling going into the draft? >> we're excited. normally we try to find stocks that are three to five-year appreciation, but now we have to turn that down to nine months. that's very short time. it takes nine months to grow a baby. >> reporter: it sure does. you heard it here first in beardstown. they will continue to prep and we will be back with you for the stock draft in just a little bit, guys.

back other to you. >> thank you very much, kate. now from the stock draft to the real one, which begins tonight, football on everyone's mind. and one company thinks it may have found a solution to one of the sport's biggest problems and that is concussions. joining us now is toeben arthur the founder and ceo of angel md, a major investors behind this new technology. let's start with what angel md is and then we'll get to this weapon that is sitting here on our desk. >> sure. >> angel md is fundamentally a kick starter of medical devices. >> we're a marketplace that connects the largest medical startups in the world with thousands of investors, primarily physicians about 85% of which are physicians, family offices and other investors to identify the best medical startups around the world and then support these companies after we invest. >> so product developers will come to you, may be device people, may be drug people, may be any will come to you. if you like it, in shark tank

fashion, you invest in it. >> yeah. they come from university tech transfer programs, incubators, you had mr. altman on here earlier and physician referrals. so this company came in through physicians that we knew that introduced the company and we put them through a rigorous process to evaluate. >> and you've put in so far into this what you hope will be a very successful revolutionary helmet, how much money? >> our network has invested about $3 million in three rounds. we're in the middle of a fourth one now. we'll keep backing this company until they get to a successful exit. >> who is trying it? what's different about it? >> so this company is fundamentally rethought the football helmet. it's founded by a pediatric neurosurgeon out of the university of washington and head of mechanical engineering at the university of washington. the idea was with concussions, you know, current helmet technology just allows the force to pass through to the brain, protests the skull but not so much the brain. so these guys if you knows the design of this helmet allows the force to be dispersed.

away from the brain they're getting dramatic shifts in impact. >> that's the padding. chris, can you look inside there. we don't have really great lighting, but there's a lot of padding inside here. the exterior of this helmet feels like a fairly standard football helmet. >> a little heavier. >> it is. >> been a long time, but a little heavier. >> slightly heavier. what you'll notice first of all the design is substantially different. you have a wider field of vision but most importantly the data coming out through the impact of force is dramatically better than anything on the market. >> so go ahead, melissa. >> is it a lot more expensive? >> these guys will dominate sport over the next couple of years. because it's by far and away the safest market in the helmet. all the nfl teams will be using it this spring and fall. >> they're trying it out. >> how many? >> 1,500 you said? >> the nfl it's about 1,500 price point. they move to the -- >> it is solid. >> there is a paradoxical thing

here ch my once met frank giffert who suffered from the traumatic brain injury. one reason there was fewer brain injuries there was no masks and they were not anywhere near protective as that hence nobody led with their head. this thing almost -- >> it allows -- >> seduces you. >> i would take it a step further. i played rugby for years. no helmets at all. they'll never do that. >> no. >> that's right. the nature of the game is -- there's a lot of things they can work on -- >> gladiator look, too. >> where does the logo, painted on your forehead? >> colleges are trying it, right? >> colleges, nfl. >> alabama? >> i don't know specifically about alabama but i would be surprised if they aren't. >> you'll probably see these in use very, very soon. >> an salutely. this fall they will be all over the nfl.

>> thank you for playing along on our stock draft day. >> thanks very having me. many big questions still need answering in washington. will the government come to a compromise and avoid a federal shutdown, by the way, which is tomorrow? and longer term, will trump's tax deal actually get done? democratic senator will join us with that next. and the countdown to the other big event, the 2017 cnbc stocks draft no helmet needed. it all begins in just over 10 minutes. the teams are getting ready. they're in our war room slash lobby. what stocks will they pick? will they pick oil? will they pick gold? they're all the company stocks with the company logos. there's the rutgers scarlett knight. careful with that sword, friend. we're back right after this. ont? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain,

or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis.

hey you've gotta see this. cno.n. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. we were wrong we own it. quick corrections. but the stock the down on a jp morgan downgrade because of increased wages you saw that analyst on half type report. president trump using the power of pen to try to roll back

regulations as approaching his 100 days in office. joining us democratic senator heidi height camp of north dakota. she reduced legislative yesterday on reform. senator thanks for joining us we'll get to that in a bit. however, do you think we're going to have government shut down tonight or are we going to roll on? >> we're going to roll on. it's a matter of how long it will take to get the deal finalized. >> what's the last hurdle we need to overcome to get a shutdown verdict? >> i think the deal has been done t fact that we're going to get all the bills, there isn't going to be any cr, we're going to ledge late, that's a real point of view things. hopefully i think once we were willing, the democrats were willing to do more in defense, and the republicans were willing to fulfill the commitment under the affordable care act and not

waste money, throwing something at a border security provision that wasn't going to actually enhance security i think those were the two big things that needed to happen. and the rest of this is the messy work of negotiating the final pieces. >> okay. going back to your partnership legislation, we know this senator, congress is very good at making laws, they're not very good at eliminating bad old and worthless laws and regulation. what is your legislation aiming to do to clean up whack be described as an ungovernor bl regulation? >> i think what we're looking at making sure we don't build more problems on to those existing problems. we're looking at a different kind of path forward for new legislation. one of the provisions that i was insistent upon was a provision that would require that every major rule have a provision for

lookback, for reevaluation after a period of time. then we have embedded within the system, is this still necessary, did it work the way we wanted it to work instead of continuing the mistake. there's a number of provisions in congress that have been discussed that i support that would provide a lookback commission that would take a look at old regulation. and people who do this say many of these agencies are frustrated because they'd love to get rid of these rules, but old laws make it so they can't. so we need to have a bipartisan attitude that we have to clean up what we currently have but also have to not continue these mistakes going forward. >> forgive me if i didn't hear you say this, when you vote on this government funding bill, this is not going to be a short-term extension live a five dayer, it's going to be longer than that? >> no chances are what we're going to see is a short-term extension but only to get the

paperwork done. if we didn't think we were there with a negotiated deal i don't think we'd be -- we'd be agreeing on an extension. it's just a matter of getting the paperwork done so that all the ts are acrossed and the is are dotted. >> what your initial reaction to the trump tax proposal that came out yesterday? >> i don't know what it is. you can't hand me one page explanations of just some as sprigs, as spi rational ideas and expect me to evaluate it. i know a little bit it, i looked both at the corporate side and the vilk side. i'm intrigued by the increase in the standard deduction. i wonder if they're going to do that why they reduced the public taxes on the schedule aid. and going forward, i was glad to see that pass-through entities was going to be treated fairly. one thing i was concern about is

how much this is going to cost. >> a lot of people are concern about that idea. thank you for being with us. appreciate it. >> you bet. we are moments away from the 2017 cnbc stock drop. one winner, who will it be. it all begins next. most etfonly track a benchmark. flexshares etfs are built around the way investors thk. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. this information.com for a read it carefully.ing with e*trade's powerful trading tools, right at your fingertip you have access to in-depth analysis, level 2 data, and a team of experienced traders

ready to help you if you need it. ♪ ♪ it's like having the power of a trading floor, wherever you are. it's your trade. ♪ ♪ e*ade. ♪ ♪ start trading today at etrade.com

our 18 year old wase army in an accident.'98. when i call usaa it was that voice asking me, "is your daughter ok?" that's whereelt relief. we're thrivera family, and we wilbe wh usaa for fe.

. we are looking live at the draft war room for the 2017 cnbc stock draft. we're an the clock, the teams are doing their final prep and the number one pick is coming.

welcome to the special edition of "power lunch" i'm melissa lee. >> and i'm tyler mathisen. in our building right here riding shotgun with us forred to's big show our draft man himself, jim cramer, and stock draft veteran and mast money regular guy, adame. >> everybody is. before we start the main event we want to get ours to our stock draft commissioner, brian sullivan explaining how this is going to work. introduce us to the team and tell us who's in this year's draft class. brian. >> thank you very much. jim and guy welcome. before we put our first team on the clock you got to know how this whole thing works. first off there are eight teams. we randomly pick the draft total on tuesday, who got the first peek? none other than mr. wonderful

himself, kevin o'leary picking second technician. his team name, flash catch gourd don. alyssa sir rex tillerson. team tame alisha's angels. the fourth ladies are picking power from their hometown. you know him from fast money tim see more, a/k/a see more alpha. i see what you did there tim. since our draft is happening on the same night of the nfl draft, the man drafted by the new york giants in 1995, charlesway, team name, stock giant. and last but certainly not least the only team to bring their own outside tearing squad, two members, an drew lee and coy deallow, team name the rukt all-stars. here's how this work, they chose

from 48 stocks, the name behind us as well as gold or oil, you can only go long no shorting. 40 of the stocks come from the cnbc i 40 index and we pick additional naming tlar well-known traders like facebook, tesla. we added a couple of beaten down names so if anybody going to dig for value take a shot on value yent pharmaceuticals. how do you win? we're going to track the combine performance of two names or gold and oil that each draft team drafts starting with the closing price today, all the way through the closing price at the end of the super bowl next february. so, whichever team has the best percentage gain, not including dividends will be crowned the winner. tiler i need to bust out get to the draft room and get everybody

ready for first pick. >> before we get to that pick, let's go to dom choe who's been talking to the teams. dahm. >> tyler what we got are a lot of commentary. we know mr. wonderful at the number one spot may be looking for that qb, that franchise player. a lot of people are expected it could be netflix, amazon, apple. top names to ar. also talked to set moore alpha he's looking for position players. he's a couple players away from getting the team he wants. he wanted a trade up, maybe not the time around. i talk to the team at rukers, they have their own cheer leading squad, as you said they're looking for value picks, but also some of the home runs. back over to you. >> interesting. dom thank you. before we put mr. wonderful on the clock are your drafts experts this hour, who do you

think jim mr. wonderful should pick first? >> i'm going to give you a nutty job and it's not because of what happened last night. when i looked at my list it's what's on the board so you got to pick your best athlete first. i can't tell you who he should. but one both ways it's sigh links. >> you looked you saw i had this. >> go. >> go i'll take your first round and second round. >> psi links has been amonster stock. sometimes it happens when you take someone's pick and then suddenly -- i had a brain freeze you pick some guy who's never going to -- what ever. >> amazing. >> all right. >> i like that. >> i love it. >> isn't that something. it's up 3. and the quarters up. because of the the dividend boost, the change of control

boom. >> outside, upside. >> game changer, to kick off the 2017 draft ryan over to you and mr. wonderful. >> by the way he's a hash shag cnbc says you'll be crazy not to pick amazon as your first pick. we got mr. wonderful kevin o'leary. shark tank ready up with the first pick. you take the stock and commodity that you want. kevin o'leary what are you picking first? >> it's apple baby. >> he picked apple with the first pick. >> this is the tom brady of stocks right here. >> it is jersey missing? >> the hat's enough. check this out. i want to tell you something, i do not agree with not counting the dividend. dividend's the mother's milk of return, 7% of the return i want my dividend included by next super bowl. >> next year. maybe there's a reason we didn't

do that because of some ways to calculate. >> shame on you. >> i didn't make the rule. >> dividends matter. >> why go with apple. >> it's it's going -- it's up to 13 this year. it's 7% gross margins on services. this is tom brady on my head right here. >> all right. there you go. miles garrett. the first pick round ben taken by kevin. we're going to wait for next clock coming up. before we get to that i want to see what these guys think of o'leary's pick, apple. do you believe the start up is a competition of the iphone eight or by the quarter -- by next year when the results are tallied and you see that pick up then? >> iphone is a huge consideration without question but are they doing as well in china as they should be doing? what's the next great growth engine. i think kevin o'leary he picked favor with apple because he's

got higher aspirations than just this draft. >> quite an allegation. >> commissioners should investigate that if that's the case. nobody ever got wrong picking apple. tonight in philadelphia do the picking people say yeah i got to have the equivalent of apple. i regard apple being a pick as nobody's going to be wrong. >> no one's going to criticize you for it. >> someone can do an outsider of nowhere. i don't know if apple has to extra juice to get where it has to go. >> there you go. so that's the first pick, that would be apple, kevin o'leerlry on the board. number two pick on the clock now. flash gordon announce his choice after that break. you're watching a special edition of powerful lunch, the 2017 cnbc shock draft. we'll be right back.

let's go, she's a dog.

[ whimpers ] find ping-pong. okay, let's go. find your awesome with the xfinity x1 voice remote. that's amazing!

hey you've gotta see this. cno.n. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. welcome back to the 2017 cnbc stock draft. before the break mr. wonderful took apple with the first pick in the draft. standing by with brian in the draft room is flash clash gordon. >> a man who is going to be picking with technicals, and a man who has the ughiest shirt on

in the nfl took room today. >> thank you brian. >> we had a viewer who wrote in on twitter who said obviously this is going to be tesla, your second pick is who? >> obviously this is going to be tesla. so is it, it's tesla. it is. that viewers is absolutely correct. >> is that viewer your mother? >> no it's not my mother. >> why tesla? >> tesla is, if we're going no win this game it's a big trade. if you look at tesla we have just broken a three-year range. in that range it was 100% range. we broken out another 100 in the world of technicals will put you at $600. >> isn't this also heavily shorted stock bit of a risky pick? >> if you're going to win this thing you can't go the dividends we're going for absolutely return. if this thing hits we're talking a 600 possible double next year.

>> flash crash is not the kind of name we want to have in this draft by the way. >> we're trying to avoid our crash in tesla but i'm staying true to the family here. >> next year i'm going to suggest an xl. on the clock now is alisha's angain ls back to you. >> all right. tesla i was a little worried. >> this is not julio jones you're not picking someone, you're picking a 4-2 wide receiver and a 4-2 wide receiver is going to get hurt and not win that many games. i don't know if tesla has the leap ability to win. >> you understand when you say these things melissa to your right has no idea -- >> i'm following you here. >> hold on guys you got a development in the draft room. dom? what's interesting here guys,

overall tesla is the only stock on the list here for all the candidates that has the lowest average price target of analyst on the street. it's the one stock that has a minus 17% return based on the price. we'll see if alishia goes for those types of picks. back over to you. >> this might be a stock with -- without a pick and that was that t chime. i heard the chime. alisha's angels off the clock ready to fire away. >> that's right. we're going to find out. alisha from her job her day job of ceo founding he's a warden grad so we expect big things from alisha. so the third overall pick who are you picking? >> i got gold. >> you're going long gold? >> i'm going long gold. >> folks that is a surprise, that is a punter going third overall jim cramer why?

>> i need a hedge in any forfeiture. i feel like the parkts are from think, i want some protection from north korea. this is my number one pick. >> potentially the ryan leaf here, i don't know what it is here. alisha, and i'm a charger fan so i can say -- >> adame's jaw is agate. >> first of all i expect that a great deal. i think it would have been their pick number 11 which was their second-round pick who you have been pick number 11. i think she could have waited. with that said maybe she felt somebody was going to come in and take it. gold is a currency. >> i like the pick how is that. >>ed >> instead of you guys speaking let's ask her. did you tick it because you were fairway. >> yeah because i wanted one more in my portfolio. i was afraid someone might picked and i wanted it so it's mind. >> could have gotten this much lower in the draft there was no

reason to use the second pick in this. this is like picking the seattle seahawks defense. >> keep thinking that. >> our sherman-25. i get that as a twitter handle. the problem is that defense does not win ball games. >> kate rogers is in illinois with them. >> i think the beardstown ladies are confirming their final notes here and we are going with amazon. i know that was your to be pick right bucky? we're going to bring her back in. why did you go with amazon what did you like about the stock? your investment strategy is invest for the long-term right? >> that's our investment strategies, wee like amazon, the earnings share is up their making money. even though they don't have drone delivery to beardstown illinois they get stuff here quick sew we like to order from them. >> they don't have it yet. beardstown ladies amazon for the

draft. we'll see you guys soon. >> amazon, what's our reaction there? >> i can't go against it. obviously the issue here is the price appreciation. you're paying up for someone in the draft that's already very expensive. i noticed she had a 41 on, if you ood a one in front of that 114 -- and they'll it was a one i just didn't see it. this is a company that's exploding revenues but i think this is a definitely theory. >> jason i'll say this, now this comes into how does this game work? doesn't amazon report earnings? >> tonight. >> she gets amazon at the current praise. if amazon was to lay an egg she was already -- >> there could still be a cylinder use behind. >> all i'm saying is i hear that pick. i think it's a very good chance though she picked it about 45 minutes or whatever it is too early. >> i'm picking the fourth pick

in philadelphia eagle draft that's on saturday. and the problem is this four rounds and the draft was on saturday rkts you can take into account amazon you may be right but the problem is we're stuck with -- >> beardstown ladies did it though. >> bell, that chime show it is fifth pick is in. tim see mknown from fast money. tim who are you taking. >> you sitting down brian? >> no. can you tell. >> all right. value yent pharmaceutical. first of all we'll a complete ball club right now. after deflation gate i think it's time for non-correlated as success. >> can you speak english please? >> at the end of day to understand the equity in this stock you have to understand the debt. what's bumper going on, this is a company that's active in the last three months pushed back the profile and the mature of the debt. if it dies down from $7 billion

to $3.5 billion it doesn't mean this company is dead. there's some franchise inside there and they don't have to invest any time soon. why would you pick a stock that's up 80%, 40%, or 60%, the stock's down 70%. for a team that's ready to rin right now this is option nalt that puts me over the top. cit's not option nalt he's wrong. it's a character pick. they cheated in school or maybe they might have gotten involved in some sort of altercation or there was some sort of -- >> bart fight. >> right. we were picking a company and i got to tell owe. -- >> bar fight. >> your company is so close to being suspended that i don't know whether the commissioner, commissioner will you allow this pick? honestly. >> do we want this in the nfl. >> i'm going to pick the other sidereal quick, because tim with

seymour is saying here it's go to zero -- >> or it's going to double. >> i like that. >> it is progressive. >> if people thought about randy moss this way before the draft he never would have played in the nfl. >> your pick better have some p.e.d.s. that's a technical term. >> all right two surprised picks. seymour value yent. seymour alpha no shout out on the clocks. we'll hear from the stock giant in a second. >> all right so so far what do you make of the draft? some interesting apple, tesla, gold, value yent no one's taking your number one picks yet. that's still an option. >> i got to tell you our stock is frankly because we have found the division to a pick --

>> charles way is ready. >> yes, it is. a man that knows a thing or two about drafts and it does may me a bit because it is a nice guy, get out of the way, way so i'm rooting against you, no offense. >> with your pick, what stock are you selecting? >> advance micro devices. >> why is amb okay? >> because it's a value docket. >> amed is a value took. >> innovation. and it's an upstart that's competing with intel, and that's what the index does. >> guys what do you think about the quote? i don't think jim cramer ever heard advance micro devices and value took in the same innocese? ten years in this business. >> this is true. this is a stock that i think has

piqu pique peaked. the gaming side of it is very good. it's if second rate and -- okay. the pc side we're going to hear from intel and microsoft pc. i think i like the idea of a low-dollar stock that's not going to be suspended. >> hold on charles got something to say. >> it's a prime take over target. look at the price and who it's competing against. intel doesn't like to be beaten. >> she doesn't want to sell and love her job but yeah anything can happen. >> the world has change. >> let him stay alive in the justice department. i like your thinking. >> maybe charles way is on to something. my problem with the stock social security going from $6 to 13.$5 in a short period of time. what's the upside from here it might be 16 or 17. >> the people's choice is ready.

he's off the clock ready to go. >> now i got don peoples real estate mogul. i saw a little -- >> i didn't graduate i quit. >> you were still conspiring with them. all right with your pick in the seventh pick in the first round who are you going with don? >> wells fargo. they're undervalued and have been beaten up over this regulatory crises, with staks reform rates are moving up so they are a great pick. so wells fargo. >> interesting. >> also a company you dealt with an a real estate developer. >> actually they were smart to finance my condo in man hatton. >> that goes back to mr. wonderful. >> we will talk about wells fargo because the timing of when you enter this is interesting. they got the shareholder meeting down, the board is reelected. >> i think your right.

this is a which i poet he situation. i think wells fargo has an acl poll but had the best junior year. acl tends to take 16 months to get ber, a lot of people try to rush that. i don't know within the time frame acl's going to heal. >> where's wells fargo going from here. where's the best price to put 58 dlarls. 6% may be higher. i'm wondering again, aisle say it on live t.v., is he trying to curry favor with oufc just like mr. wonderful on apple. >> all-stars on the clock here. >> the pride of new brauns wick, ener new jersey. hoping the knights will be in the black when the night is over. andrew lee. all right andrew with the final pick in the first round who are

you going with? >> bank of america. rut guerras miebd think a like. they're the most interest rate sensitive bank. and they're doing really well. v >> sounds like this was a pick you guys decided on before. was this your second pick? did you want to pick one of the things already chosen or was this the name you wanted off the board no matter what? >> wells fargo was our first pick because it was undervalued but bank of america is a wonderful choice and would have been our second pick so. >> something going on back there. dom cho what's happening back this? >> i've spoken to a couple of source with the rut ger corporation on handle. let's hear from these guys. what's your idea and philosophy, you got your top pick on the

board what's up next guys? >> it's a secret. >> any ideas? is there a position you guys are looking for. >> in general what we're looking to do with this petition competition is go for a stable and valley place. and work a sort of micro contest into that. >> is that because you guys think the market is undervalued you're going with stocks that you think is less. >> your asking the rut ger's mass scot? >> what's the idea here. >> fundamentally we are value funded. this is a strategy we're going to work with and keep working with it. >> there you go guys 67. >> any thought for anybody in the second round for trading up for a higher pick? can we do that. >> we may have much much more ahead. we have to take a break but we'll talk about all these pickings. rut guerra's all-stars completing the first round.

all the teams getting ready for the second selections. mr. wonderful on the clock. we'll be right back. you ways pay

your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it?

news flash: nobody's perfect. for drivers with accident forgiveness, due to your first accident. switch and you could save $509 on auto insurance. call foa freeuote tay. liberty mutual insurance. so what se is new? humm..she's doing good. she needs more care though. she wants to stay in her house. first, let's take a look at your financial plan and e what we can do. okso we've got... we'll listen. we'll talk. we'll plan. baird.

all right guys. let's get back to cncb stock draft. the first round is done. you got mr. wonderful, kevin o'leary going with apple. todd gordon tesla, maybe a surprise there. alisha, taking gold. the beardstown ladies going with, no surprise here, amazon, it was still on the board. valient a surprise pick. one with the most potential upside. charles way. vanessa micro devices also one of the stock that's exceeded one of price tarkts. don peeb ls wells fargo. we'll see what happens in the second round. we'll see more people go for more alpha and volatility guys back over to you. checking on the markets, got a lot of big earnings reports after the bell today, amazon,

alphabet, intel and microsoft. one gainer still on the board for stock draft. more than expected lost for a member. someone picks this in the second round, they do not get today's games. that is very important because some people might say it's not being picked because t got 11% gain already. according the rules it starts with today's closing price. >> so of the eight picks so far, who got the best? >> none picked your choices for first pick psi links. >> i'm going to go quickly and tell you, i think the stock with the most potential upside and risk was sei-mile-an-hour's alpha. >> zee-mile-an-hour's alpha. >> if everything goes right in washington mr. wonderful's going to look good with apple. the tesla pick is an interesting pick, because if you have a

year-long short squeeze, that could be the trans formational tech out of auto. short squeeze is often a good thing to bet on. we'll continue to draft in a moment. but sue herrera with ab update. >> president trump says he was within days of terminating nafta but will renegotiate the deal tales reporters he made that decision after talking with the presidents of mexico and canada. >> if i'm unable to make a fair deal for the united states, meaning a fair deal for our workers and companies i will terminate nafta. but we're going to get renegotiation a goat strong shot. >> the russian defense ministry say a ship sank after claps with a freighter on in is that bull. everybody's safe on the ship.

system sung trying to combat the drivers. it's sending a message to people exacting you on the road telling them you're driving. the app is set to launch next month. that's the news update. back to you ty. >> thanks very much sue. the second round of cnbc stock draft about to begin. mr. kevin o'leary was crutching the numbers during the research about the make his second pick. we'll see what it is when he return. yet alternatives can tap opportunities that traditional assets can't. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. ♪

on a perfect car, then smash it into a tree. your insurance company raises your rates. maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident.

switch and you could save $509 on auto insurance. call for a free quote today. liberty stands with you™. liberty mutual insurance. . all right the first round of cnbc stock draft in the books. kevin o'leary picking apple in the first round. facebook, netflix still on the board. but with the first pick in the second round, mr. wonderful you are taking? >> it has to be bowing. here it is on my head why? a quality balance in an environment where trump is going to spend like a drunin' sailor in defense where is it going? right here on top. >> amazing stock for next year guys.

kevin thank you very much. flash clash on the books what do you think about the boeing pick? >> boeing moves from 130 to 180 and change from the election to now i think a lot of that has stolen some of the outside. i think boeing is a multiyear course. i did like the conference call. i think it has 15 to 20% upside. not bad for a second round. >> it's not bad if you took a flier in the first round. what is he looking for? >> next pick's in. >> flash crash todd gordon went tesla. you're taking your atlantanlts which stock for the second pick? >> we're going online for netflix. i like that, boeing was going to be my first choice. but netflix i think is a wonderfully positioned stock we're going all in. it's had amazing percent gain in

2016. it took a pause in 2016 recent earnings. we're strong, weak on the international sub-scribner growth. i think they're going to pick that up. we're look for $3,000 in 2017. >> you should have had your team to be moe moe gourd don. >> you got to be in it to win it. >> you know what brian i like his strategy, i'm a huge netflix fan. and i've said this to jim, i think there is a real chance that 2017 is the year disney buys netflix. >> get rid of espn's something like that is that what you think? >> throwing it out there. >> netflix is a thing you do when you know your schedule. you think the schedule is bing to be good. this is a beckham pick. he has to hope this company doesn't take a boat trip. >> all right third pick now in

this second round. alisha's angels, bryan. >> probably the biggest surprise in the first-round picking gold because she wanted to have a hedge. are you taking oil in the second round? >> no but that would have been another selection had we had more. what i went with is met life. the reason i like that, they db have the best fourth quarter bah they have a spin-off situation. once they have that spin-off that occurs there will be much more regular earnings, and also it helps alleviate some of the capital requirement with government scrutiny. i want a catalyst driven situation and i like this insurance. >> gold and met life. she's a prepper. >> to me this is an interest rate play and maybe jim disagrees with me. you're betting on met life if you're thinking two and a

quarter 3%. >> do you think that's what going to happen? >> sleeper picks don't -- this is like a seventh or eighth round pick. i question the judge, i just don't think you're going to get more than 10, 15 points in this max. >> back to brian in the draft room. >> back to kate rogers because the fourth pick is going to beardstown lady in beardstown illinois. kate is with them. >> hey brian they pick amazon their first round. second round they're going the facebook. what's the thinking with facebook you didn't diverse fie? >> we did diversify because amazon is a retailer, facebook in my opinion is an advertiser. with their advertising they're making money hand over fist. you don't have to be a large corporation to use their target advertising. three people in our club, small businesses in beardstown,

illinois are advertising on facebook targeting people within ten miles of beardstown who like certain things. it's a great -- it's a bang for your buck if your a business owner. >> you heard them. they're small business owners they invest in what they know and they're going to facebook. back over to you. >> i like this pick. the ladies were leaning toward -- instead they got fau, they gunshot a long way to go. >> i would say la la la, some of the thing that's been going on in facebook live scare me. and i'm wondering does that hurt maybe in 2017, just throwing it out there jim. >> really? >> i love this company, i don't know if i love it for this competition that we're playing. >> are you saying there might be some sort of hidden injury here? >> there could be. maybe the doctors didn't do their due diligence. >> don't go anywhere folks the

rest of second round of our stock draft is coming up next. tim seymour is on the clock. he shocked everybody on the first round when he went with valient. find out his second pick in two minutes. i mean wish i had time to take care of my portfolio, but.. well, what are you doing tomorrow -10am? staff meeting. noon? eating. 3:45? uh, compliance training. 6:30? sam's baseball practice. 8:30? tai chi. yeah, so sounds relaxing. alright, 9:53? i usually make their lunches then, and i have a little vegan so wow, you are busy. wouldn't it be great if you had investments that worked as hard as you do? yeah. introducing essential portfolios. the automated investing solution that lets you focus on your life.

what if we could bring you by having better values? at blue apron, we work directly with more than a hundred family farms. so instead of spending on costly middlemen and supermarkets, we can invest in the things that matter most: making farmland healthier. cutting down on food waste. and bringing you higher quality, fresher ingredients for less than you pay at the store. because food is better when you start from scratch. get $30 off at blueapron.com/cook

will your business be ready when growth presents itself? american express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. find out how american express cards and services can help prepare you for growth at open.com.

all right. with his first pick in the fist round tim seymour said he going with a high-risk, high-reward strategy and he picked valient pharmaceuticals which is down 90% of his peak a couple years ago. he walked up and said brian i'm going to stick by my strategy. seymour alpha with the second pick is going with? >> mattel brian. >> a beaten up toy company who's stock is down over the last year. >> first of all we like to buy the people's problem. this is a turn around story people forget about it. the first quarter is traditionally a viletal quarter. what's going on for disney and other guys in this space, it's about the brand, the content.

hot wheels, barbie's been kind of a bust by lighten mcqueen coming out in 2017. this is a turn around story. >> the possible of a buyout. if the stock goes down -- >> this is a 6.15 davidend. we didn't get that but investments do. we need to move this stock higher. and as far as i'm concern people sold this off on a first quarter held it down 20.5 over the couple of years. >> i've heard about the barbell strategy not sure i heard about the barbie strategy but now we have it here. >> literally just talking this. >> yeah i like this idea as well. >> i think it's cut in half today he seems to like these thing. >> to keep it going with the sixth pick the stop giant.

get-out-of-the way way, who are you picking? >> kimberly clark. they beat earnings and think about it. innovation, innovation drives revenue growth. the one thing i love about this company is that in a leader diversity manager and you include innovation and diversity it's a good revenue for growth. >> kimberly clark are you surprised all these stocks are going so high? >> there's a company less than three quarters of a mile, it's a company he may be dpepding on, he needs to have 160 bid because i think that was -- >> and at 20 times earnings you can't have subpar pick. >> absolutely. let's go to the the sixth pick. >> don peeble, the people's

choice with the second pick. who are you picking? >> snapchat. snapchat's got a customer -- >> wait you went with wells fargo safety first, now snapchat? >> yeah because i understand both businesses. i got a 14-year-old daughter who's can instantly on snapchat. >> who also borrows money. >> no she's gives it. my son borrows. snapchat's got customer base growing and growing and they got new products coming online and there's nothing but upside for them. other tech company's not going to reach my generation. >> okay on commercial break we got to take a filter shot. don peeble thank you very much. guys what do you think snap, a flier? >> i think the first quarter is a good quarter. i think they're front leading with advertising i like it.

if this season was over in just four months he could win. >> i like what don's doing, i understand it. he's got a year for this thing to work out. >> too much time though. >> rut guerras is ready. >> they are. they didn't say that a lot in the football season this year guys, i'm sorry about that. but hey i know. i remember the beat down you guys gave us 20 years ago. with the second pick, the last pick of the second round. rutgers who are you going with? >> we're going with pfizer. >> pfizer? >> yes. >> why? >> this time we're going with a bit of draft rift. recently acquired motivation. there's one particular park inhibitors a new task of drugs a new partner for them to work with. >> laying out the case for

pfizer, pfe, you got a bank and bio tech guys. the all-stars at rutgers are going with a value poefrlt. jim i know you had a lot to say about pfizer. >> yeah. i would have you're in a cloud much dust. >> that's what happens. >> exactly. >> yeah. >> graphics are in, but picks still to be made, guy, tim, and us will pick a team we think wins. let us know who you think. use the stock draft on twitter, facebook, and ips gram. stay tuned.

the 2017 stock draft complete, but there's a little monday morning quarterbacking to do. draft experts weigh in on the picks, and we are reading your tweets as well. who has the best draft? we will be right back. ♪

whether you're after supreme performance... ...advanced intelligence... ...or breathtaking style... ...there's a c-class just for you. decisions, decisions, decisions. lease the c300 sedan for $389 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

...you realize the smartest investing idea, isn't just what you invest in, but who you invest with. ♪

all right, all the teams made picks. there were eight teams, nine stocks chosen, the team with the best percentage return as of the closing of the friday before next year's super bowl, that is february 2nd, declared the winner. they'll get a big trophy and bragging rights. now it's time for us and draft experts to make our choices of

the themes that have the best draft. jim? >> i have to go with ba, and they picked amazon and facebook. that's mieningful. they showed tremendous youth in thinking. like that. >> guy? >> i think tim seymour played to win, with me now for the last decade on the cnbc's "fast money," but he'll win big or lose big, but i like that binary outcome. >> the small town basketball team that only shoots threes, and i also, i think, it pains me that tim seymour, i like the strategy. see, just -- just take a compliment. >> a couple dark horses there. >> could be. >> i like flash crash gordon, tesla, net knicks, over the next nine months, could be winners. tesla, going to china, that could be a big, big catalyst for the stock. >> i like seymour, but i picked

mr. wonderful, apple and boeing. >> not charles way, a fellow cavalier? >> no, i didn't. mr. wonderful is on to something there. i'm with him. >> what is the biggest surprise? >> yeah, the stock you thought would go, but did not. >> if you must know, not that we do, and i would have gone with that, but, you know, there's a stock i like very much that just doesn't get any credit for the last 70 points, united health. it's a winner with the chaos in washington. >> yeah. >> i'll give you a quick one. whirlpool, look at reactions after the quarter, listen to the conference call as jim said off camera and look atle valuation. whirlpool, to me, big move to the upside. nobody looked at than. >> a good story on the conference call. >> i would say that if i were -- >> just did -- you liked seymour. >> looking at a name, no one looked at ge. >> really? >> you got it, people agitating

for change. you got jeff, who wants to make a change, and turns aarp, that's 16% of the revenue. go to that. a lot of stuff around ge now, which makes it a newsworthy company. >> i'm surprised on ibb. some of the biggest components really benefit from acquisition. there's already whiffs of that. etf upside also. >> thank you. >> underarmour? >> too much borrowed today. >> yeah. >> tim tebow said he'd pick it, bus he bailed out. >> yeah. i thought he would have picked garmin. it's never lost a share. rather amazing. >> yeah. eagles in the first round? you pick in the fourth round? >> yes. >> making the fourth pick. >> i'm not -- i'm not -- just announcing it. i don't think they'll let me do

the noodle on it, just announce it. >> what an amazing job this crew did. >> unbelievable. >> it's great. >> our thanks to dom chu for being the sideline reporter. >> on behalf of the whole team -- >> thanks for watching the stock draft. closing bell starts right now. ♪ >> that was entertaining. going to be hards to top. >> wait until you see what's in store. >> i think i know. i'm sara eisen with a lot on tap. >> we do. we're late. stocks modestly higher as investors continue to assess the president's tax reform proposal as -- looking at a busy day for corporate earnings. nasdaq on record for new highs, other averages higher, but not there