What analysts there say is premature. And oracles Larry Ellison taking aim at amazon saying his company will offer stiff competition in some key areas like the cloud. Were going to break down that matchup. And later youll hear from oracle ceo mark hurd at oracle world this morning. But first up, some new developments in the investigation into a bombing in new york city that injured 29 people over the weekend. Our Morgan Brennan is live at the scene in manhattan with the latest. Morgan, good morning. Reporter good morning, carl. I want you to take a look at the scene behind me. This is 23rd street. This is the site of the saturday night bomb explosion that took place here in manhattan. If you can take a look, this is the fbi. They are on the scene and they are sweeping the street for evidence right now. So this is new yorks governor now saying it looks like the bombing that happened on this street behind me could be an act of terrorism with a foreign connection. And this as investigators have identified and are actively searching for a man caught on Surveillance Video footage at both of this scene, new york city scene and the one four blocks north of here, he is Ahmad Khan Rahami, 28yearold male from new jersey being sought in suspect to the bombings. Police pushing alert to mobile phone users in the area asking for assistance in finding him. This morning, heavily armed fbi agents in camouflage were seen entering a building in elizabeth, new jersey, not far from a separate explosion that happened overnight at a train station. So officials saying thats connected to the Ongoing Investigation of the bombs found and detonated in the tristate area. And as of earlier this morning the fbi had five individuals detained for questioning related to this manhattan explosion, which sent debris flying through the air and pedestrians really running for their lives, running for safety. In all weve got four crime scenes, two in new york, two in new jersey. Much of the evidence from manhattan and saturdays seaside park explosion has already been sent to the fbis labs in quantico for further analysis. And in addition, in a totally separate situation, a knife attack at a Shopping Mall in minnesota, that took place on saturday. It injured nine people. And we have isis already claiming credit for that. So in all americans everywhere really on high alert right now. And, guys, keep in mind we have the United NationsGeneral Assembly really kicking into high gear today for what new yorkers know to be an already congested u. N. Week here in the city. Back over to you. Our Morgan Brennan in manhattan. By the way, anyone who knows or has scene rahami is advised to call 1800577tips, tips. Question is, jim, how the market absorbs all of this this week. The markets had a hard time factoring in terrorism. Just never really sure what to do. Weve had a series that were overseas and it turns out in retrospect you should have sold the airlines off it because the tourism has dropped dramatically. I saw over the weekend for instance theres a series of routes dropped in philadelphia to europe. All the usual. Never came back to brussels, so in other words there was an impact. We know that the restaurants was an impact, tourism was an impact with the exception of priceline. Could that translate to new york . Hard. But you know what, one thing weve learned is that it does translate. And the market isnt discounting it properly because there are earnings per share that get hurt. One of the reasons why is because its really hard to put you know, this is human life. You dont want to relate the two, but just be aware that if you look when the airlines started doing badly, it was because we started to have lone wolves in europe which batter tremendously. Otherwise its fed again and then oil. This oil thing is to the point where when oil was flat last night, the futures were flat. When oil went up this morning, futures went up. Wed love to break that linkage because it does seem so fanciful, but those who try to break it miss the move. You just told joe a minute ago you havent seen us this tied to something id like to see us tied to Interest Rates. That would be good. The dollar, those are things i could kind of come up with a viewpoint. But when youre tied with oil going higher and the airlines then rally, im stuck with, okay, so whats the point . You cant really create a scenario where money can be made betting on the direction of a manipulated commodity. No. So not even rates matter to you . I mean, in other words that bond you know the 10year would matter, but it didnt matter. Its kind of calmed down. It didnt matter. It didnt . No. I was listening to wilf, not mr. Wilf who owns vikings who should like the giants was that . Listening far more to wilfred frost this morning and were kind of just like joking about, you know, listening and saying if the 10year were to go to two, how much would it matter . I wanted to scream into the tv, guys, if oil goes to 50 all bets are off. Oil at 50 and we go to new highs. But this is wrong. But what does it matter if its wrong . What difference does it make is sort of your take . Yes. And i dont want to ever get in a situation where i dismiss something just because its wrong because it is in control. Right. Its in control. Well, boj is coming and then the fed is hours after that. Rates are going to be a big story in about 36 hours. I wish japan werent such a poster boy for just lunacy. I mean, one of the problems i think we have last week delivering alpha. Yeah. Was the Central Banks going wow. I contend its the japanese Central Banks gone wild. Because they are trying to create millions of new people. They had a demographic challenge over there, right . Its just not growing. Thats hard. So you keep hitting people with rates. Its hard to do over a short period of time. Want to remind that in italy also, its not working out well, other countries in europe, russia. Russia back to 1933 . I dont know. We dont have that issue because of immigration. Well, japan have had immigration and not to be lecturing a whole nation, but thats how you get growth if you dont have birthrate. Yeah, it is. Youre right. But theyve been making that point about demographics in japan for a long time. Negative rates get people to have babies. Etfs doesnt change those. No, it doesnt. The ecb buying your bonds to finance your latest takeover dont help either. No. No. These are things that dont work. I mean, lets have some kids. The ecbs buying bonds. The United States is the best. Its the best. I think chinas not bad. We know chinas growing. But im saying the United States really does have a lot of things going for it that last weeks dangerous alpha, i mean, i just think dangerous alphas got to be put in perspective. Is that the new one . Dangerous alpha. Dangerous alpha. Sounds like maybe a movie title almost. I kind of like it. Sounds spicy, interesting. It does sound spicy. Srirachi. Delivering alpha. Dangerous alpha. Well see what the next couple of days brings. There are going to be some specific industry stories. Apple wraps up of course its first weekend with the iphone 7 and 7 plus in stores. J. P. Morgan out with a note saying positive reaction for demand is premature. The firm citing carrier indications more in line with their own second half forecast, adding that apple usually runs into shortages at this point in a product launch. You made the point a moment ago, apple responsible for a large part of last weeks gains. Usually you have shortages except for the fact a few weeks ago we thought they were going to have too much inventory. So thats great. Why dont we go back a few weeks and say, listen, big worry is that they cant meet the demand. I mean, come on. I saw some pieces this weekend, these are the greatest ones. If the Samsung Phone didnt catch fire, then apple wouldnt do that well. Oh, okay. Well, yeah, sure if it didnt. It could have been a tough launch for apple. Yes. If the Samsung Phone had cured world peace, can you imagine what the numbers would have been for apple if that was a world peace phone . I wish it was. You cant ace trsterisk thin like that. No, you cant. To be fair to j. P. Morgan they say their caution is strd on nonu. S. Markets where theyve seen negative demand deviations as well as down shifting in average selling prices, pointing out u. S. Currently accounts for 35 and 32 of their september and december quarterly iphone unit estimates. We dont really have the chinese data yet. No, we dont. Although one would expect samsungs issues are global, right . Well, if it werent for the fact that the samsung fire catches on fire, then maybe apple would be doing even worse than china. Right. There you go. Be fun to model that just for kicks. Yes. Incidental arson. Its incidental. It is. Samsung by the way selling some stocks in its i saw there. Equity portfolio theyve sold some of their yeah, their stake to help potentially at least it can offset some of the costs from the recall. Well, if they got the phone working, it would really be a challenge to apple. If it could work. Its the longer term damage of Something Like this, jim . People seem to forget anything. I mean, with the exception of the analyst who continues to think no one goes to chipotle, which would be great because then i wouldnt have to wait in line at my chipotle. No ones been there anymore, yogi berra. Just so you know average length is 18 months between horrible incidence in restaurants and when people forget the horrible incident. So whats it been a year . The last incident well, the last incident was in boston. So youve got a ways. You got a ways. Thats why the stock is stuck at 400. Okay. When it comes to samsung and their phones catching fire quicker. You have to wait remember, the recall, im not sure about how well the recall because remember they sell it all over the place. Its not as definite a recall as if apple were to have a recall. And its also not the cells but the wiring of the cells. And the idea the Consumer Protection bureau is saying if its really you can only charge your battery up to a certain point, 60 . Is that what 59 . I dont know how you do that. I like toyota it to go to 10 the chairman on says he expects pressure to get it out ahead quick. To get out ahead of apple. Yeah to get in the supply chain. Makes sense. I think these stories if apple had less demand then it would sell less. Guys, deal with the reality. Apple had a good launch. It was better than what people thought its okay. Thats all right. Right . Depends on what your thesis was going in i guess. Yes, thank you. When we come back, oracle, fighting words for amazon. Stay tuned for interview with mark hurd. Look at the premarket oil lows close for the morning. Viacom and more on wells when we come back. [chains dragging] [eerie music playing] [crickets chirping] [owl hoots] announcer if you dont fix them, sparks from dragging tow chains can cause a wildfire. And that could be scary. Bye, smokey only you can prevent wildfires. Sharing a ten by ten room,ng threestruggling. Nding, i rent this place and then i started home sharing. My roommates help out all the time. They are glad to meet the guests and that opportunity that airbnb has given me is such a priceless gift. I was able to take three months off to take car of my family during a family tragedy. The extra income that i get from airbnb has been a huge impact in my life. Oracle executive chairman Larry Ellison expressing confidence about battling amazon and the cloud. This after unveiling Oracle Cloud Infrastructure last night at companys open world conference in San Francisco. In his keynote address ellison said amazons lead is over. Amazon is going to have serious competition going forward. Our jon fortt will have a live interview with hurd in the next hour. Of course we paid close attention to those earnings last week. Right. I know larry was impassioned in the call saying they have a much better product than amazon. This kind of the last bit thrown in in the call. I referenced bill miller who said some things at delivering alpha saying that amazon has a two to threeyear lead over anybody else. Im tempted to believe that. I know that this was the first call where they did not savage salesforce. They went after workday a couple times. These are combative guys. Its a trash talking team. Which isnt bad. You know josh normans a big trash talker. There are guys in the nfl that are trash talkers and it works. They basically put amazon on notice. I think the problem is that in the end a business isnt noticing, their noticed. Is he noticing their noticed. Hes a pretty competitive guy that being mr. Bezos. Hes happy to take it on, i think. Exactly. But this is a good thing. Competition is always generally a good thing. You mentioned salesforce, they also seem to be introducing their new product einstein a little earlier than people thought. Yeah. Whyd they move that up . Youre being facetious. A little bit. Wait, their dream dreamforce. Versus oracle world. But i mean, yeah, no love lost anymore. But remember, marc benioff worked for ellison. He always says they have a great relationship. I dont get i dont have a relationship with ellison where he tells me how the relationship is. Sure. Yeah. But i see there isnt a time they dont take a shot at workday. They have two shots at workday in the conference call. No shots at salesforce. Speaking of bezos, of course he was mentioned many times at the emmys last night as amazon won for transparent, specifically Jeffrey Tambor who talked about bezos. Take a listen to this. To my friends at amazon for their talents and their guts, roy price, joe lewis, jeff bezos, who took my hand last night and said, call me jeff bezos. [ laughter ] in the past its been bezos in the room at the golden globes, now at the emmys. Question is, whats the economic value of notoriety like this . I just think that, again, the fact that they are making product is something that has hurt netflix. Its almost like a negative for netflix. Not a positive for well, amazon doesnt need anything positive. Its gross margin. Interestingly the survey show many people who take netflix take amazon prime, take a lot of these services. You can cobble your own over the top thing with a number of them together. Its not clear that they are even though it would seem to be direct competitors. They certainly are in competing for the content itself and theyre both spending billions of dollars, which is amazing. To think five years ago what was being spent by independent, by these kinds of companies, virtually nothing. No, content matters tremendously these guys. Jeff tambor by the way came in to see me once. What . Yeah, see how i do things. And later on i had to downgrade bluth industries in arrested development. There was nothing there. Its never personal for me. Were you in that show . Yeah. I had to and same vain stark industries, i had to go to a sell at stark industries. Theyre the winner. There i got a hat. Everyone else got 10,000 it appears, i got a hat. What else . We could go for days. The good wife, that was the bitcoin thing, right . Yeah. Turned out if i bought bitcoin, im not allowed to do anything, but bitcoin had a big move after that. Stark industries fell apart and blooth never developed. I was three for three. And then the movie based on you, hows that doing on pay per view . Ceo came in to me this weekend, i know the ceo, and said had i actually played clooney, it would have been a more successful movie. But that may be a benchmark having to do clooney, not me. Theres always remake down the road. You think so . Yeah, you could always do it after mad money shoot in the evenings. Thats one of those things, had it been a good movie, more people would have gone. Yeah, you can, baa it wasnt that good of movie, not that many people went. Kind of like if apple developed a worse phone, fewer would buy it. All things analysts like to say. By the way, we have a new episode of binge later this morning with jim burros. Thats coming up later today. Well get cramers mad dash, countdown to the opening bell in a moment. Take one more look at the premarket on this monday morning. Busy week ahead. Be right back. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Announcer are your children in the right car seat for their age and size . It may be too late to check when youre on the road. [blaring car horn and skidding] fortunately, youre on the couch. Guyhey nicole, happening here . This is my new alert system for whenever anything happens in the market. Kids a natural. But thinkorswim already lets you create custom alerts for all the things that are important to you. Shhh. Alerts on anything at all . Not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. All right. Time for a mad dash to start off the week. About seven minutes until we get going with trading here at the nyse. Where are we head snd. When i saw this recommendation i thought of you immediately. This is about gm. The biggest bear on gm is Morgan Stanley. And theyve been very right. I got to give it to the guy, adam jonas. He says, david, get this, there are lots of cars with steering wheels left to sell. Thats a reference. About Autonomous Vehicles of course. And then, they believe earnings can be flat in 2017 and 2018, if that happens, the markets going to like it. So these are two things that dont necessarily inspire, but at the same time when the guy is hated for a long time, youre kind of tempted to think, well, lets take a relook at it. Because it is very inexpensive. Six times earnings and its not losing money. When i see things that are six times earnings, i see the airlines and i see these. And all that says to me is they think next years going to be worse than this year. So in that sense, to not be facetious, you think this years going to be the same as next year and then the stock is cheaper. So i kind of like the call. One would assume the multiple is going to remain depressed forever given what we know is coming even though it may be many years until we get there. No doubt about it. Autonomous vehicle fleets which then