Attacking in the right direction. Ultimatum for Family Dollar, icahn says, sell or ill come after the board. Not backing down. A crossborder fistfight, rejecting a takeover, and looking for a buyout . All you need is a pulse and a u. K. Postal code. First up, oracle reported fiscal Fourth Quarter operating profit at 92 cents a share missing estimates, and revenue below consensus and disapointing sale of software licenses. Some expected more progress in the Cloud Computing business, giving metrics on, jim, for the first time, up 22 year on year, 4 of total revenue. Is this a reminder of last years rough time . I dont think so. The portfolio manager, we huddled in this last night and felt it was a buying opportunity. We say that with the Big Tech Companies repositions from traditional metrics to the cloud, theres glitches, and you look back and say, wow, that was an opportunity. Reminded of adobe with a glitch and came back very strong. What can i say . When you switch models, like, you just have a rough spot or two. I think the companys being very aggressive in what they are trying to do. I think morning has done a great job. The stock had a nice run coming in. Im looking for things that are down, not things that are running. Its so hard to just come in and pay up. I loved intels quarter. I want to buy intel so much, but here we go, back to 28. You just dont get high quality tech on a discount very much anymore. Oracle up 11 since the last earnings report. A nice run. Discussion of how accounting changes with the cloud. Right. You are given revenue over a period of time oppose the to buying a subscription business, hard to figure it out. If you want to go over the numbers, i mean, you still have, look, licensing, it was not that bad. I mean, when i hear it was not that bad, jim, i have companies shooting the lights out. Companies shooting the lights out, you pay a huge multiple on. I have red hat on last night on mad money, they shoot lights out on 30 times earnings, and next thing you know, not a sixth straight day of dow, not a rollover, paying 30 times earnings. I look, and say oracles feasible. Right. To be fair, they blame some sales execution issues that sounds familiar from a year ago. I didnt like that. I mean, when i stocks dont go down big if things are all good. The markets not stupid, but i do think that justify setting the miss was cloud revenues, rose 2 2 . The cloud is small, but they have to move. The analysts, for the most part, stuck by it. Its no carmax. Its no someone that came out today and said, oh, how can that be . It was like, come on, oracle, you can do better. Old school tech in tact . Yeah, i stuck by micron and seagate, by intel, sticking by cisco. This is one that you get a discount in, next quarter better, and you look back and say, oh, i thought it was bad, but it was not that bad. The title reports its not about the quarter. Thats in line. I think thats a very, very good piece, and i also like the top of the first inning of the transition journey, reducing estimates. Thats what you have to do on the journey. You are moving over to what is a very different model in order to blunt what tablow, and mark is an aggressive guy. They think its larry ellison. Hes involved. He has marks phone number, calls it, mark is running the company. I backed him before, not leaving now. Investor carl icahn demand Family Dollar put itself up for sale immediately or hell replace the board. He believed Family Dollar would attract Significant Interest from strategic buyers. They are open to ideas to enhance value and in the midst of the indepth business review. We know his pattern. Hes getting loud on this one. Well, look, i mean, he looks at dollar tree, looks at dollar general, what is going on here . Family dollar had the lead. Family dollar was the dollar store, and the Levine Family ran it long enough. Time for new blood. This is shareholder democracy. I think the capital is not democratic. I dont know. This is a campaign. This is the campaign to unseat eric cantor, and, you know, it worked. Could be an incumbent. Of course. When i go to Family Dollar stores, frankly, carl, they are not just that nice, even the remakes are not nice. When you get a remake of a store like whats going on with rite aid, you get enthusiasm. When you go in a new Family Dollar, it looks like an old Family Dollar, and thats not good enough anymore. You go to a dollar tree, and you find yourself thinking, you know what . This is an interesting place to shop. Seasonal merchandise. Come in july 4th, and the whole first part is stuff you want to take home. Go to Family Dollar, its dowdy and the private label is dowdy to me. Go into the some of the great supermarkets, kroger, their private label is more attractive than premium. Go to Family Dollar, like, wow. Separate from the shopping experience, do you like it relative to the others because of what icahn is about to do . Look, theres a big store format, have new blood, it works. You can say the same thing. Garden i used to love to go there to olive garden and red lobster, but now theres other places i like to go more. I think thats what this is about. Wow, they used to be better. I recommend bob evans farms. Someone else can do a better job. When companies run, a board is supposed to fire the ceo. Thats not happening at garden or Family Dollar. People are saying, enough is enough. Well talk gardens numbers later on. We have a rough q4, people expected, but well get into the comps later on. In the meantime, drug maker shire rejected 46 billion takeover offer because the proposal undervalues the company. Shire say its boards has concerns about execution risks soerlgted with the imposed inversion structure. They would redomicile in the u. K. For tax purposes. We have a smarter conversation, but whats your take . Oh, i know. I look at david, jim, what about the fundamentals . The key to the inversions is to see if theres synergy. If you notice, they continue to go higher because its while inversion matters, the two companies are made for each other. Thats a great onestop shop. The two companies, do they have a lot in common . Actually, so much in common in one division they dont need each other. The rest of it seems like cats meeting dogs, so this one seems very driven by inversion, not unlike pfizer has a good cancer pipeline, but no one says, wow, the pipeline is great, no one in the industry thinks, wow, shire, that is the jewel of overseas drug companies. Look, they are playing the game. Shire, one of the things a lot of our views are upset about is that stock has been going up for a long time. You read about abbvie, guys, why didnt you announce this earlier, why are the guys who know whats going on making the money . I think thats going to be a lot of empathy bout this. It doesnt seem like a surprise. Teems like people knew. Between metronic and ge working hard, tmobile and sprint close on financing, where is the megadeal picture headed in the next couple weeks . Youre going to keep getting deals, look at mettronic, a great company, losing a war with ew, edwards life science, a company i really like. They leapfrog over everybody, and people love it as long as the acquirers stock is loved with the exception being tyson in a bidding war with pilgrims, then youll see the deals. You know what . If an acquirers love, five deals pitched to the company, and some of them are going to stick. I like this part of the market. I dont want to steal the ipos. Yesterday bob talked about all the ipas. I dont want supply. I want increasing demand and supply taken out. These deals take out the supply. I dont want to see secondary spill, and but the ipos we had in the last few days, some good, some not so good. Not regimely a fan of day one. No. Buying on day one. No. I think back in terms of the poster child for the acquirer and the acquired. Right. Going up on the same day. Significant amounts. Completely. Look, connected growth, boom, if you look at hillshire, it was interesting. When they first bought pinnacle, hillshire went up big because there was no growth. Speaking to the kroger cfo yesterday, they do the deals, no growth. They didnt want to be bought, and hillshire goes back down. The dance that were playing are companies that are trying to get some of the aisle space in kroger, the drugstore space, feel they need deals because they are not growing fast enough. A fascinating summer. We decided that. Typically its not. I go to the beach, i call in, and nothing to do. Now its, like, jim, five buyers after five companies. Here i come, be right back, sorry, beach, see you later. Youre off next week. Well miss you. I have to take more time off. The care givers in my life have said what do you do . The answer is, i love my job. Thats what im doing. Thats right. When we come back, apples ceo tim cook have an iwatch up the sleeve . Speculation for the companys plan for a watch today. Well fill you in in a moment. Pulitzer prize winning journalist has a take on amazon today. Talking with him, and a look at futures. As we said, dow is going for six straight, first time this year. Squawk on the street is back in a minute. I make a lot of purchases for my business. And i get a lot in return with ink plus from chase. Like 50,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards, even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. Thatand with truecar. Com,t lookitheres no buyers remorse. A good deal or not. Okay, this the is the price, overand youre like. Save time, save money, and never overpay. Visit truecar. Com production of apples first smart watch reportedly will start in july for a fall release. The up named device which many followers dub the iwatch will be mass produced by a tieland company and apple expects to ship 50 Million Units in the first year of the products release. Theres competing reports today. The journal says only 10 to 15 million and multiple screen sizes, but it looks like this is about to happen. Right, and i think apple has that great ecosystem, which amazon does not have, even though i like amazon. This is a platform. We have to look at apple as a platform in that many things will be added. Now, i was using fitbit for a while. I dont know. I i think this is where the apple brand name can play a role. You say, you know what . Im going to check this out. Its interesting. I was going to get i mentioned the other day im going to buy a surface this weekend, and i got an email, dont buy it, wow, they listen, and their take away is, jim, dont buy a surface. Heres something that i think, you know what . I want one. I want to have all my the people the doctors i see want you to know more about yourself. I feel i see a world where i download this to my doctor before i see it. Right, right. A smart doctor should want to see my downloads. The journal says ten, maybe more than ten different types of sensors, obviously, as you point out, focused on health and fitness. Right. Do you think it needs to be more than just a health watch . A health and fitness data gatherer . I got to defer to kevin plank who has done a lot of work on this, and i think the answer is that, yes, it has to be more and more sophisticated. Intel, by the way, wants to be in the area. I want a readout of myself. I have a car, and it has a better readout than i have of my body, and i want to you know, you fill out an application with a doctor, and they take a look, order an mri, maybe they dont. How about we take a blood test for cancer i had a company this week, disruptive company, they take your blood. Give them my download, look, heres my vitals, the guy says, hey, listen, you dont need to come in. Funny you mention that. At a conference i was at this week asked about the most exciting thing in the world of mobile, health care was the first answer. First answer. Yeah, i mean, its time. Its time as we get older, its time that we have here is what my body is up to. You know, its like dr. Oz, a great doctor, you, the owners manual, but we lack a readout of the manual. This is not right. Our doctor can look at it. We use aethena health care, shorts take that. We have the ecosystem we agree to waive privacy to our doctors because i think that youre afraid that people can see things, and the doctor says, would you come . . Item nine is wrong. The way the car is called into maintenance, service in nine days. I have to do the treadmill with my excellent heart doctor, but he would like a quarterly read out. Tell you what, thinking of a barclays with a buy on app 8 for a very long time, go to an equal weight because they dont believe any new product moves the needle in a material way for apple. New products dont move a needle until you try it. He hence why i thought the surface. I thought about the amazon phone, and i was not sure, and then all the sudden, i look at the its always the app, i look at the ad for at t, and it says, oh, look at the features you get. I said, you know what . Ill go to the at t store, take a look at this thing because i like the deal. Now, if apple does this in conjunction with something or has to do with the istore, the apple store has something interesting, why not . If you have disposable income. Now, income disposable income matters. This is a miller piece today. In the country, people are not doing well, but theres, what, 40 million xboxes sold . Does that give you a read other than the fact youre not doing jobs . Youre not at work. Hey, plugged into x box, and my mind did nothing for four hours. I dont know. I think health matters. And productivity. Wouldnt it be great to have the doctor know something about you before walking . Sure, absolutely. How much time is done saying, how you doing . Item four. The journal says the specks are being finalized, but production is around the corner. When does tim cook get the benefit of the doubt . Look at the antitheft thing . Its working. The app universe is so good, blows my mind away, please. They will. Well see what happens in october. When we come back, cramers mad dash, opening bell, premarket, and more squawk on the street from the nyc straight ahead. [ female announcer ] we love our smartphones. And now telcos using hp Big Data Solutions are feeling the love, too. By offering things like onthespot data upgrades an idea that reduced overcharge complaints by 98 . No matter how fast your Business Needs to adapt, if hp Big Data Solutions can keep wireless customers smiling, imagine what they can do for yours. Make it matter. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. About eight minutes before the bell on friday. Lets get cramers mad dash. A couple calls in the auto space. Goldman ups auto nation. Oh, yes, that was important. And theres carmax. The best quarter of the week, remarkable number, increased 13 , wholesale units terrific, used car, make a fortune, carl, people continue to buy cars. They continue to spend on cars. You get a job. You get a car. You get a car, you get a job. This is about the job economy coming back. I want to contrast that with Owens Corning. This took my breath away. We need more information. Roofing volumes may be down 20 for april and may, carl, i understand this was winter, but this is supposed to be when you do your roof work. Are people spending less on house, more on car . One thing is absolutely certain. You need a car if you have a job. But this whole housings become a drag on the economy except for the highest well talk about that later but i dont know this is kind of a metaphor for the company. I wonder if this is going to hurt home depot. They had a late growing season. Home depot was well run by frank blake. Its going to be a challenge begin the roofing number. What helps is insulation and composites business is good. You know what . Maybe Owens Corning is having execution this was not a good number. Surprising. Carmax and auto nation. I wish i was in business. They have the demand and cars. You have the television dealdea dealer commercial attitude down, you could do that. Come on down youre watch Sherwin Williams and whirlpool . Thats important. We are really split. I like a possible breakup the idea that fortune brands could merge, the idea that these Companies Continue to bring value. Mixed picture housing, new home sales next week. I just keep thinking that housing should be doing better, and maybe its because tuition is too high, maybe mortgages are too hard to get. This Housing Market is vexing the fed, and its vexing me. Yeah. We know its not just the individual buyer who is at play here. We have institutions that have been in the game, made a lot of money, maybe enough money for now. Yeah, boy, i got to tell you, im in the new york area, there are no homes, okay . I mean, i was looking for property the other day. Now, this shows you where we are. Beautiful water front property, im not kidding, hey, last universe the fact that it stunk did not detour me from looking at nice apartments. Thats where we are in brooklyn. Thats right. It could be venice within my grandchildrens lifetime. Do not rule that out. Theres cleanup to do. Well get the opening bell in just a minute. Dont go away. Bulldog ah, the dog days of summer time to celebrate with your mates, grill a few dogs eh, hot dogs. Bacon burgers. Dachshund mattress discounters 4th of july sale . Bulldog that cloud reminds me of. Radio announcer the tempurpedic cloud collection. Bulldog thats it radio announcer now with 48 months interestfree financing basset hound free financing . 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