Transcripts For CNBC Power 20240703

Today . Is that one of the reasons that fed into i mean, maybe it was a close choice between meta and Something Else and todays selloff in meta boosted it to the top pick it is the reason we chose it. It was not on our list but we had to make a gametime adjustment because this opportunity presented itself to us i think that the selloff is somewhat overdone, considering Mark Zuckerbergs problems as seo, considering the strength of the business, the valuation is not stretched at all thats the first pick next up is steady eddie, eddie george tim, lets get your reaction to the first pick some game theory by karen pointing out yesterday or the day before, meta has outperformed the s p for good reason by probably almost 175 in the last year or so if you think about what we heard last year, the year of efficiency might be gone they talked about higher costs, downgraded q1 and q2 slightly in terms of the top line. That adds up to a company that has had an enormous outperformance if you asked investors a months ago, this is one of the safest picks in the top of the leaderboard. This is a tactical call, but a great company. Certainly has proven bulletproof over the last couple years with the second pick in our draft is eddie george, former running back with the Tennessee Titans now the head coach at Tennessee State university steady eddie, what is your pick . My second pick is nvidia. I really believe in the Management Team with jansen. Hes done a phenomenal job the Graphics Processing Unit is the best in the market theyre in high demand theyre leaders in ai and i believe in the long term you said they dont have enough steam left, but i think theyre in it for the long term. Next up is our defending champ, wwe superstar Charlotte Flair who road nvidia to the championship last year this could be the gift that keeps on giving. This is the fivetool athlete, where the growth is coming from at a time when semiconductors have pulled back a little bit. Theres been a pullback across the entire space if you think about nvidia, there are people arguing that the growth iscompensated by a multiple this Company Earns 25 to 30 in 25 and 26. Not that expensive for a company thats growing their revenues 150 year over year if you look at some of the recent quarters i think eddie nailed this one. You have no place to not take a company like nvidia. They had a little pullback so the first two picks that have gone off the board, i assume they do not surprise you one bit. They dont surprise me, but when i think about this stock draft and the opportunity you have for one calendar year to get an outsized performance, companies that have outperformed and had a great past 12 months, sometimes theyre not your best call were talking about game theory. Two stocks added up to the best overall score for one of our ten teams is, i think, how you win this youre talking about a guy who is retired from the Playing Field and moved to the booth yeah, you had several years where you were part of this contest. Up to our defending champion. Welcome back thank you so much for being with us first overall pick last year, she did choose nvidia and it helped carry her to victory. This time, with the third pick, what does team woo select . Thank you for having me third pick will be smci. Ai is still at the forefront of this technological revolution, and smci happens to be a major player so im going to go with smci anything particular you like about this stock well, they just had a big dip. And their pe is at 50 , nvidia was at 31 , and i think that might be something to consider all right charlotte, thank you very much well hear from you with your second pick in a few moments our only other returning contest nlt is ose pearlman. Tim, lets get to you, the pick of charlotte i would be scared to go against anything charlotte says for a lot of reasons including she won it last year i think her point is shes picking a company that has, again, a higher beta element of hot they do. You have seen a pullback in semis and some airelated plays. Its hard to say that a company like this that has crushed it for the last 12 months cant be in the running im a little worried about the higher end, the higher multiple, the growthier part of the leaderboard. Time for our next pick. We go to the mentalist, although he knew that your pick. I did what is your pick here we go, gang. Fourth pick for me, i feel like in the stock draft, its all about if youre not first, youre last. I want big swings, im going bitcoin, everybody deep into bitcoin what do you see there . I know you know the future well see, but six figures easily i think its a play where theres a huge upside, and like i said, im not going for second or third im going for first. With tim, head to head, bitcoin almost brought me to the lead. Its all about timing the market its a sure fire bet bitcoin is going to six figures, not a matter of if but when, and i dont want safe plays. Thats the way to go for it. You want to go for something that has that big upside, and i think that within the commodities space and alternative assets, bitcoin is that heres another one, tim thanks, oz, by the way heres another one that had a big runup in the past year. First, oz knows to the penny how much is in my pocket isnt it ironic he hasnt won . Thats a good point maybe he needs to show the game is not rigged in his favor bitcoin, digital gold, whatever you want to call it, has been in an environment where the reasons for owning bitcoin have added up to success if you think the fed is on the other side of their aggressive policy, there are questions from Central Banks around the world as they buy more gold. Diversification away from fiat currencies the reason for bitcoin is certainly every year in this stock draft, a reason why this is perennially a top pick. For our next pick, we go to my hometown of washington, d. C. , where tim spent a lot of time, where the commanders new running back Austin Ekeler is standing by experience is the team name. Austin, welcome to d. C i hope you can bring the commanders good luck you have been a top pick in more fantasy drafts than you probably know but now its your turn to choose whats your pick yes, thanks for having me on. And i would like to say, my first pick is going to be caterpillar. Very interesting. Heres the stock, austin, that stumbled today i mean, we look at what happened today after the earnings came out. Did its stumble today influence your decision to choose it today . No, im really looking at the landscape of just the environment of the u. S. Right now with Affordable Homes and Affordable Housing really drying up, and it seems like everywhere i go theres construction on the roads, theres new apartment buildings being built. So i think where were at in the environment where theres a deficiency in the supply of homes and infrastructure, especially in the housing department, that caterpillar is going to have a great couple months you have definitely gone from one place where theres a lot of construction on the roads, los angeles, to another, northern virginia, where traffic has gotten about as bad as l. A i wish you the best on that. Well see you back for pick number two in a minute tim, your thoughts on cat. The big cat reported today, if austin is being tactical, a move lower a lot of that move today is the volumes werent great. Bears are saying maybe volume weakness is for seeding some of the economic weakness we havent seen improving margins and a valuation that make this a really attractive stock but a stock up 90 over the last calendar year and a stock that also i think has had that kind of a run that if we get any slowness in the economy, look, i give austin credit hes picking a Blue Chip Company that can compete in this environment. So much more ahead. The stock draft will continue next my name is oluseyi and some of my favorite moments throughout my life are watching sports with my dad. Now, i work at comcast as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. Giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. And i lost 172 pounds on golo. When i was a teenager i had some severe trauma in my life and i turned to food for comfort. I had a doctor tell me that if i didnt change my life, i wasnt gonna live much longer. Once i saw golo was working, i felt this rush, i just had to keep going. A lot of people think no pain no gain, but with golo it is so easy. My life is so much different now that ive lost all this weight. When i look in the mirror i dont even recognize myself. Im bob pisauna. Stocks hit today by a double whammy of disappointing earnings from meta and ibm. Stocks were down across the board but are now well off their lows at one point after the opening s p 500 dipped below 5,000, down 1. 6 , but its now down only. 4 . The nasdaq was down 2 at the open, as meta weighed on that index. Meta is still down about 11 but its well off the lows as well nasdaq has cut its losses in half as well as nvidia, tesla, netflix. All trading up today the dow was hit hard by disappointing earnings from ibm and to some extent by caterpillar as well and a selloff by microsoph at the open microsoph reports earnings after the close today. Big day for ipos as rubric had a slam bang open at the New York Stock Exchange pricing its ipo at 30 above the range of 28 to 31, trading up nearly 15 its the first tech unicorn ipo since last fall. We also had Laurel Holdings priced at 28, now trading up almost a whopping 60 . Looking good there back to you. Thank you very much, bob pisani we had a quick change to the program here we unfortunately have somehow misplaced or lost kenny the jet. This is a nineperson draft. Time now for the sixth pick in the first round. We go back to the podium for nieve shulman, host of catphish new season airing less than a week from today. The market fish, thats the team name what do you select im very excited to choose boot barn for my pick. Oh. And why . You like their boots ill tell you why with Climate Change a major factor, inclement weather is on the rise were going to need boots. You know, Companies Come and go. Trends come and go but feet and hard work are here to stay. Simple reasoning. We need boots. We need boots. Hes wearing a fashionable pair of sneakers today maybe hes telling us something. Fair weather is coming here, maybe. Tim, your thoughts on boot barn . How much time have you spent researching boot barn . I dont want to get into this because the bottom line is its been a lot its also clear theres a lot of people from california moving to texas. Maybe thats just kidding but i look at discretionary spend. I see a company that had a very, very big run, also a dynamic year when i look at the charts i dont love the pick. I look at the growth, the multiple around 18, 19 times he is on to something. Hes certainly on to something in terms of where i think there is a demographic trend i think young male teens are into the carhardt stuff. I could see you in one of those jackets. Im much more rugged than i appear give me a log splitter and clearly, a stock that i think could move very interesting. An interesting thing you went to, log splitters. To prove youre a rugged guy all right. Right now lets get to fitness personality and creator of the fitness app, jielian michael, getting an assist from her partner. The cash crew. Whats your pick, please okay. My first question is, im kind of late in this lineup here. I am texting my Business Partner to ask if any our picks got stolen if we lose, i blame everybody else going ahead of us with that said, i know my qb here in to run the play, g, who are we picking we are youre absolutely right. A lot of the teams ahead of us have great choices but were going to go with an audible and go with microsoft based off Nancy Pelosis stock portfolio who i know very well always wins all right there you go thats our logic. It should be interesting because microsoft reports after the bell today the stock will be added, so are you factoring that in, the big selloff in technology across the board that were seeing . Absolutely. Not only are we factoring that in, but we also Like Tech Companies that have clientfacing products and microsoft has had a real stronghold on the market for decades with their office suite and other products that they have so we like the lower volatility, perhaps some less upside, but its a safe bet. All right next up on the clock is comedian and actor drewski. We want to get thoughts on j jillians pick jillian getting salty on the competition too. I think microsoft, its really hard to not feel great about picking microsoft. At the end of the day, its a company we talked about this, they report tonight. Whether theres weakness or not, the real question is what are you paying for microsoft at 35 times this is a company that i think is a tech multiple that is at least in the higher end of its historical five to tenyear average azure, i think the street is expecting around 28 , 29 . Any type of a beat on that will be a relief. The bar is very high on this name all right theres the sound again. Today, of course, is take your kids to work day we have a lot of young people, and they are buzzing about our next guest, social media star drewsky. Check him out in praise this on peacock. Youre on the clock. Whats your pick man, you know, im on the board right now, so pretty easy. It aint hard to see how much nike drip do you own . Man, i gotta say, my closet is full right now. But you know, i chose nike because im in a couple commercials. Sabrina inhanescu got me as the coach. They got us outfits for my new show its red for a reason. So thank you. Tim, lets turn to you one more pick in the first round thats going to come from Joey Chestnut if he chooses hormel, like a hotdog eater would, or oscar mayer. Well get back to that probably messing up a bunch of endorsements he has. At any rate, nike. This is a stock that has come down a lot since the Fourth Quarter of last year druski is just doing it here. No question this is a name that i think is interesting nike well off its highs. Critics will point out especially critics playing the stock draft game is this has been kind of dead money in a trading range for a couple years. Youre making him upset lets let him back in whats on your mind . I dont have a stock coach, man. I came in here by my lonesome. Look, and my guess is you have enough pairs of sleds in your closet to help samestore sales for the next year or two look, i like the call. World class, best in class company. Trading near the bottom of a range, and a company that i think also is known for innovation its time, druski. Our next guest is the greatest eater of all time you see him every july 4th devouring 70 or maybe more hotdogs. Joey chestnut. Joey jaws is his team maim with the last pick. What is your pick, joey . Looking at the board. Im picking oracle why is that well, they Just Announced theyre moving to nashville. Im a big believer in Larry Ellison. Everything is still, yeah, what they produce is really important for everybody. The software x i think theyre getting more into health care, so its really important all right joey picks oracle. Tim, what do you think Larry Ellison has been gobbling up companies for a long time i see what you did, gobbling, Joey Chestnut. I just say its a company that in terms of their Software Revenue and the higher revenue part of their business, this is why the street has been willing to pay a higher multiple on the stock. Its probably 10 to 15, 18 off the top of that. Interesting pick and absolutely a name that has the delta. Are they an ai pick in a way or are they an alsoran in ai . I dont think we know i think its, again, hard to count out when you look where they have made their investment. Im sure on the Software Side and in terms of the platforms that are going to be in the periphery, the port, no question interesting were going to take a quick break. Jim cramer is going to break down the picks we heard so far hes well, i called you the mel kiper of the draft jim is going to be ill concede that well talk to jim about the big decline in tech stocks today. The nasdaq lower by about a half, a little more than a percent. Well talk about the picks, todays market and more with jim cramer well be right back. [thunder rumbles] the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . 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First, the star of our halftime show, jim cramer so, jim, quite a comeback in the markets so far today look, i think a lot of people realize, you know something, if you parse the words that zuckerberg said on the meta call, all he said is look, this is going to be like reels, like when we went to mobile, like stories. You have to give us a little leeway those who have given us leeway have made a lot of money then he talk abouted spending a lot of money its going to end up going to nvidia it may be some to super micro. I think your nine champions have really kind of taken the bull by the horns. Theyre not afraid of whats happening today. Of course, the meta pick may be the most gutsy of all because youre getting a good entry point. Jim, i guess the question is, is based upon both todays Market Recovery and what we have seen in the draft so far, is the leadership intact . Look, i think i have to question the leadership, frankly. I think its its a little early to say a little bounceback, but i think the stocks, the megas, are all subject to having the wrong holders. Your shareholders are not your friends. Theyre out to dump you as soon as they see something negative i think we have to give those a rest i think theres niche stocks that can do well but you know what . Its not a great market. And i know that were all excited that its come back a little bit, but look, we have to make money we dont want to bounce back from the bottom to the Second Division its got to be better than that. If we knew, jim, that rates, tenyear yield will be 4. 75 from now to the end of the year, would that change uroutlook for stocks i like to see two rate cuts i think we get the gpd number, the fed should be acting first, welcome back, melissa i do think where we are is that you have to find stocks that have the following characteristics. They have to be able to raise numbers, boost forecasts the margins have to be better and you need an upside surprise. Youll see a stock Like Union Pacific which everyone had written off. That is soaring. Chipotle, which is one of my favorites where they actually, they had to tell their workers, stop eating the chicken because the elpastore is so successful, theyre making it so fans dont have enough. Everybody who has a product they can raise price on and they still cant get enough of it, thats my kind of stock. Quick question, is todays selloff more about meta or more about the gdp and inflation number i tell you the truth, because we have all these other stocks that are about to report i think its the bonds its just so hard. I mean, i know 4. 6, 4. 7 to a lot of people doesnt mean much, but it means the competition you have that twoyear over 5. Thats a great piece of paper. I bought some the other day. Im down on it, of course, immediately, but i have to wait two years i dont regard it as a big loss tim, thank you as well. Were about to jump back into our draft with the second round. First, we have made contact with kenny the jet smith. Hes going to make his firstround pick then well go back to Brianna Stewart and Karen Finerman to make their second round pick stay with us were going to take a quick break. Well be right back. I dont want you to move. Im gonna miss you so much. You realize well have internet waiting for us at the new place, right . Oh, we know. We just like making a scene. Transferring your services has never been easier. Get connected on the day of your move with the xfinity app. Can i sleep over at your new place . Can katie sleep over tonight . Sure, honey this generation is so dramatic move with xfinity. If youve ever grilled, you know you can count on propane to make everything great. But did you know propane also Powers School buses that produce lower emissions that lead to higher test scores . Or that propane can cut your energy costs at home . It powers big jobs and small ones too. From hospitals to hospitality, people rely on propanean Energy Source thats affordable, plentiful, and environmentally friendly for everyone. Get the facts at propane. Com now. Welcome back, everybody. Before we go to round two, we have established contact with kenny the jet smith. Twotime nba champion, now known for his work on inside the nba im glad we found you. I thought probably you were still smarting from when Charles Barkley outtouched you at the video wall on tuesday night. Did you win or did he beat you its still a win. Its still a win. All right, lets get your pick here, kenny, on first round pick, a lot of choices have gone off the board. But im sure you have a good one. Ten is the perfect number because now you get everything out of the way im going with the warner brother discovery for this reason once they get the nba contract again, their stock is going to rise and they also think about it. They have the best show in television, inside the nba the stock will go up you cannot negate the fact once they get the nba license once again, they will skyrocket youre confident. David zaslav is going to be very happy with that. Thats your home team, wbd they own tnt turner, right i only invest in things i know about i know that. All right well be back to you for round two in a minute. How about wbd . I love it for kenny i love the peter lynch approach. I love the fact brooklyns own is swinging for the fence. You love that chart thats part of the story. I guess the argument is that this is a company that doesnt need a whole lot of good to happen to see at least some kind of a move higher what were seeing in the entire space, we see this with paramount, a sum of the parts kind of assessment of assets going on private equity is picking over there are catalysts there. I am also long the stock, kenny. Full disclosure. All right time to get to our second round here with the money machines, Brianna Stewart and Karen Finerman they snapped up meta in the first round. Brianna, what is your second bick our second pick is going to be draftkings. Sports betting is at an alltime high, so they say. Who wouldnt want to bet on the liberty . Of course, who wouldnt karen, you know, we sit on the desk of fast money. Draftkings often comes up. What made you say lets go for it another game time sort of adjustment wbd was going to be our pick, but thats okay. Draftkings was next on the list. I love they reached profitability. Thats a really important Inflection Point their lifetime value is going up theircost of acquisitions Customer Acquisition costs are going down you get those two things together and they can Grow Market Share and you could see a Virtuous Cycle thank you next is eddie george while he makes his way to the podium, tim, what do you think of draftkings . I love this pick. Its also pulled back from the top. Theres been a 3 1 2 bagger off the lows but as the ladies are addressing, the market, the Addressable Market for draftkings, the rationalization within the industry, the profitability they have talked about. I think these ncaa prop trading headlines are an opportunity youre buying that weakness. Great call all right ready for our next second pick of our second round. And that will be steady eddie, eddie george he chose one of the stocks in the green today. One of the relatively few, nvidia that was his first round pick. Lets see what he goes with in round two. I picked nvidia, and if i had to say, its the Patrick Mahomes of the draft and not often you can get that they wanted to elbow me in the back after stealing her pick last year. I really am happy about where my position is. And my next with the second pick, its all about fundamentals and sustainable excellence not often do you have a chance to get a guy or a stock like apple. Which i consider the tom brady of the draft tim cook, outstanding Management Team, its always about the next thing with apple you know, so their recurring revenue model is great pay the subscriptions, theyre known for hardware i have an apple watch. Im buying my wife an Apple Computer for her birthday, april 29th hey, all about brand loyalty and apple is my pick i think that complements my pick very pel i hope shes not watching because you just gave it away. She knows she doesnt watch the show shes good we have to change that. Really. Thanks. Defending champ Charlotte Flair is on the clock, but tim, what are your thoughts he articulated that fundamentals and sustainability. Drafting apple is kind of like grabbing an offensive lineman from a big sec school like alabama. You cant really go wrong building around a franchise, and apple is not on top of its games. This is a company that has underperformed the nasdaq, underperformed the s p by 20 from december. Were expecting something from wwdc to count apple out of the ai game is, i think, crazy you put apple in there with wbd, with nike, and others that maybe have not performed as well over the last year and theres the argument that says, you have to take a big swing on something maybe that hasnt done as well. Well, i would have played the game a little differently, but i cant argue with a pick of apple which is really their tried and true theres a lot of problems in china. Defending champ Charlotte Flair at the podium. She also chose a chip maker in her first round. Charlotte, whats next i also had apple in draftkings but im going to stick in tech and go with ibm. They also have a focus with ai that pullback is a big one today, charlotte did you make the choice based on that too just sticking in tech, really to be honest what do you think, tim . I think tech is like drafting a quarterback in this years draft. You kind of have to be there again, im not going to count charlotte out. Ibms numbers last night were showing some at least some slower on the consulting side of the business the Software Business is edging along. Its a company after doing nothing for three or four years has broken out to the top. I dont love the chart mega cap tech and ibm fits in that group these days is dealing with head hp winds there by the way, the wwe has a draft of its own starting on smackdown tomorrow and continuing monday night at 8 00 eastern on usa network you have to catch that time now for the second round pick from ozpearlman his first pick was bitcoin, the only nonstock thats gone off the board so far, i think. He said it was a surefire bet it will hit six figures when, hes not quite as sure what do you say for round two . Always need an ace up my sleeve this one went under the radar, carvana. I see a huge upside. Peaked at 350 about three years ago. There were missteps. I think management has strong backing right now from apollo. They dont like to lose money. Were at 575. You see Consumer Affordability is key people are looking at used cars and thats their focus you saw sonic auto grow by 12 today alone. This thing is going to 175. This is a lock oz has done his homework here Austin Ekeler of the commanders is up next, but tim, we know you love oz. Do you love his pick well, i love the 12 1 2 bagger its been off its lows of last year. Having said that, this was a 350 stock you can see its a 75 stock it doesnt mean anything over than to prove it can shoot to the upside the dynamics for the company are positive i agree with the macro in the auto space were also Getting Better numbers in terms of expectations so high delta stock. Oz is playing the game the right way. If the economy slows down they have a balance sheet, a dynamic to deal with thats what took the stock down to imperiled levels. Washington commanders running back Austin Ekeler, experience is up. Remember, he chose caterpillar in the first round austin, what is your second pick im going to be dipping my toe into the ai and Chip Semiconductor space going with a stock getting beat up a little bit, going with intel. They have an opportunity to bounce back here over the next year and im looking forward to seeing that and giving myself an extra boost. Hey, were trending down, but this next year is an opportunity for intel to get back on their feet and trend in the right direction. Interesting call here in terms of intel, you have been in it for sure. This stock and relative to its peers has behaved like a division two school. Ultimately, its really been a major underperformer 35 off that 52week high. We know its being picked for onshoring and National Championship type exposure by our government this is a stock that a little improvement, its underowned an interesting pick for the stock draft. They also report today. Half of round two is in the books but there are still five more picks to be made. Stocks well off their lows today as we keep one eye on the dow, s p, and nasdaq. Well be back after this short break with more choices from round two. Im gonna hold you forever. Ill be there. You dont. You dont have to worry. When you need to prepare for unpredictable adventures. gasp you need weathertech. [hot dog splat. ] laser measured floorliners front and rear. [drink slurp and splat. ] scream seat protector to save the seats. [honk ] theyre all yours were here hey, i knew you were comin. So i weatherteched the car can we get ice cream . We can now. Kid proof your vehicle with American Made products at weathertech. Com. Welcome back to the cnbc stock draft. Before we get back into picks lets check on the markets quite a turnaround but the dow is now down 1. 5 following a weak gdp report, but sticky inflation raising the question of whether or not stagflation could be on the horizon. The nasdaq is still lower but off the session lows down by less than a percent. Meta, of course, dragging on Technology Despite strong earnings spending and continued losses in the metaverse hurting that stock. We see a huge rebound in semiconductor stocks. The Philadelphia Semiconductor index is up by 1. 8 right now. Time to head to the big wall where nieve shulman is standing by to make a second bick he chose boot barn that was a surprise to many of us in the first round. Saying feet and hard work are here to stay nieve, now youre shoeless whoa, look at that. I wanted to make sure i balanced out my picks. Boot barn is for hard work and sometimes, you know, you want to be casual and comfortable. Thats why im going with crocs for my second pick because i want to really have sort of a balanced portfolio this is a thematic choice here going with feet. Youre all in with the feet here, nev. As a Long Distance runner, my feet are important to me i want to make sure that im supporting the Footwear Industry and the companies that, you know, keep us comfortable. Lets hope those feet are clean. I would only presume they look clean pedicured, et cetera i cant judge from here interesting, crocs great well, i mean, personally, i would probably rather be bare foot than wear crocs crocs are supposed to be very comfortable. You also said you were embarrassed when you once got cowboy boots just outed him. I was 12, by the way. Crocs had a pretty impressive move a combination of they have gotten inventory dynamics together they have seen top line growth they have seen broader demo demand i am worried about consumer discretionary. I think we have seen a very resilient consumer and certainly in the upper you know, Upper Echelon consumer in terms of the more aspirational. This is a stock thats had a big run and its a crowded space interesting so nev is cornering the Footwear Market Jillian Michaels and giancarlo are on the clock they are the cash crew, ahead of tonights earnings microsoft was their first round pick lets find out what your second rounder is first, i want to flag that i think druski is engaged in insider trading. In business with nike. Im just saying. Just saying. And g, you always told me do not buy stock in companies we do business with. Just so you know and were going to go were going to go with jpmorgan. Jpmorgan. You do no business with jpmorgan no bank accounts, no mortgage. Youre clean no credit cards come on. No, im an American Express girl and i do happen to have an advantage, which i think is citibank, but i dont know giancarlo, jillian has been doing deep research on jpmorgan. Yeah, listen, we like the banking sector, obviously, with jamie dimon at the helm. And the stock trading at its close to alltime high jpmorgan has 2. 6 trillion in assets, if the market stabilized and Interest Rates drop between their deal flow and lending business, we could be poised for some good returns. We picked up the stock during the dip in 2020 and i feel like jamie dimon is the right man to be leading that company. So before we go to tim to get his response here on jpmorgan, jillian, there was some inside talk here that the Fitness Instructor might go with a novo nordisk or an eli lilly. They had the big weight loss drugs. We thought maybe bite your tongue. No could you be clearer . Jill, tell them i suggested it and you shot me down giancarlo suggested it and i said i would end our partnership of 18 years if he did. Why absolutely not. Because you dont i dont invest in things like Philip Morris i dont invest in things like no norvo nordisk. Its against my personal ethics. I wont do it. Jillian, the gop drug called it a revolution in terms of helping people with obesity issues, has proven to not only have a change in terms of their daily lives but theres an Economic Impact in the country from this. I realize youre gutting it out every day on the bikes and what not, but is it a function of that you think people should just be in the gym working harder . I gosh, i dont know how much time we have to get into it, but the long and short is i do not see this drug as a solution in any way, shape, or form i think bill maher put it best, like a mailorder bride. All your friends are going to be jealous for a year until she kills you. I dont think that theres any permanent solution there for people again, i could get into it, but we need a bit more time. Oh, and heres one for you in 2005, the ceo of novo nordisk said theres no business for novo in this area. Obesity is social and cultural and they fired him so no, its a no no novo nordisk on line two fo i like j. P. Morgan. I look at it and somewhere north of 1. 5 times and we just got numbers from j. P. Morgan and they said the income dynamic was down a little more than people thought and i think it is an environment for banks as long as people have jobs and credit holds up and banks will do well and they are diversified is everyone. Are social media star is up next and what is up next . Ice see what jillian did and she tried to accuse me of insider trading. I am not going on biggest loser. My pick would be google. Why . Do you have deals with them . What kind of ties do you have with them . Come on now. You see this in my hand and i was on the commercial. I am going with my pick and i am staying with that and i dont care what you all have to say. What you think of google . First of all i think that druski needs to be defended as does kenny smith. Ryan reynolds got it a few years ago and this is what these people do and they have relationships and they have made disclosures. I do like the google call and i like it because it certainly has proven even with all of the headwinds around what they are doing with ai there are missteps and it is near an all time high and that reason, they are reporting tonight but i think the valuation of that is as defensive as any of the big players. I think druski is calling Jillian Michaels. Oracle firstround pick and what is the second round pick . I will go with the company i really like and depend on which is starbucks. I travel all the time and i use their coffee and i am getting ready for contest and that is all i am drinking that day. And i was looking at their stock that has gone down almost to a 52 week low but i do feel like they are going to come up. Interesting. A lot of people going with what they know. That is smart. I am curious when you get ready for competition, you want to be caffeinated and that is your competitive state and wide awake and caffeinated and ready to pop those in your mouth. I go in empty and loose but try to get a little amped up and a little coffee with espresso in it and that Starbucks Coffee is the same everywhere i go and it does a good job. Do you think we could combine starbucks with nathans and maybe have you washing it down with a few mentees ventis . They need to have starbucks at baseball stadiums. I am equally as addicted to the capping product and the stock is near its low but it is a valuation that is struggling and has some china and growth issues but longterm it could be a great one. Kenny smith, your turn and bullish on the nba contract and potentially chose warner bros. Discovery in the first round and sticking with the home team and your choice for the second round . It was close and you guys almost convinced me to go with eli lilly because we have a hot dog eating guy and jillian and then i am sitting next to a guy who uses the drug to lose weight so i am like should i go with them but i am going with delta because i feel this is the first summer we are post covid where people have disposable income and they want to travel and they want to travel in style but on time and i am in atlanta and i used delta a lot and they are always on time and they have the vip service and all of those great things and i think people will say with my disposable income i want the best airline possibilities and delta is one of them and im going with delta. All right. We will take a quick break and all of the pics and we have more stock drafts coming up and gym kramers t cckowonhelo n and we will hear from him next and final thoughts from him as well and all 20 pics are in and we will size those up after this. Im just here for the internets. At t its superfast. Reliable. You locked us out . arrggghh ahhhh solutionoriented. [jenna screams] and most importantly. Is the internet out . Dont worry, we have at t internet backup. The next level network. I sold a pillow [thunder rumbles] the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . [thunder rumbles] so lets put gym and tim on the block. What team do you expect to be lifting the stock draft trophy next to ray . I hink that you have to be off the beat and track and as much as i like meta and supermicro and microsoft send report, i think you have to go with bitcoin because it is off the beaten track and i know that our friend picked when it was singledigit carve on a and it has a major short position in that and you have this and i want outliers and its giving us those. I remember a few years ago i was a younger athlete and i picked valiant and all it took was the best pick that year. Tell me what the fed will do and i think we can make the call and i do agree with you on ohs and i love the option already and bitcoin is on or off. I think there is a lot to do and i do like what karen and breanna have done and i think there are some weaknesses with draftkings and i think that space is alive and these companies are making money and Free Cash Flow is important but we proved on the stock draft from the beginning of time since we have done this is whatever happened last year is no indication of what will happen next year. One of the things you have taught me watching this is you have to hit home runs and five baggers to have a shot. Lets say those in bitcoin are right. You do need something that could just explode. As much as i like nike which i think could make a comeback or starbucks, you need something that could be a double or triple and you could do warner bros. And i do appreciate that but it also has to be good. That does it for the stock draft and you can follow all year long on our website and stick with power lunch and we will update the standings and check with contestants and thanks to all contestants. We will see you tonight. The closing bell starts right now. Welcome to closing bell and i am rod sullivan and for scott and we are live at the New York Stock Exchange and we bring with the gdp and maybe a little part of that as well and investors have a mix of growth and inflation and what it could all mean for possible rate cuts or rate hikes in the weeks and months and quarters ahead and here is your scorecard of 60 minutes to go. There is a lot of red on the screen but markets are well off