after struggling last week. >> thank you, everybody. great show. >> yeah. thank you, guys. >> tough weekend, but great show. in the meantime, make sure you join us tomorrow. "squawk on the street" begins right now. good monday morning, welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at post nine. several big earnings and of course ongoing investigation into the bombings in new york and new jersey over the weekend. euro positive to start the morning. crude is helping things along after the third negative week in about four. road map begins with fedticipation. investors are gearing up, what you need to know ahead of that decision. j.p. morgan throwing cold water over the excitement over that demand for apple's new iphone 7.

what analysts there say is premature. and oracle's larry ellison taking aim at amazon saying his company will offer stiff competition in some key areas like the cloud. we're going to break down that matchup. and later you'll 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 york's 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, 28-year-old 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 that's connected to the ongoing investigation of the bombs found and detonated in the tri-state 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 we've got four crime scenes, two in new york, two in new jersey. much of the evidence from manhattan and saturday's seaside park explosion has already been

sent to the fbi's 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 nations general 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 1-800-577-tips, t-i-p-s. question is, jim, how the market absorbs all of this this week. >> the market's had a hard time factoring in terrorism. just never really sure what to do. we've 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 there's 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 we've learned is that it does translate. and the market isn't discounting it properly because there are earnings per share that get hurt. one of the reasons why is because it's really hard to put -- you know, this is human life. you don't 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 it's 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. we'd 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 haven't seen us this tied to something -- >> i'd 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 you're tied with oil going higher and the airlines then rally, i'm stuck with, okay, so what's the point? you can't 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 10-year would matter, but it didn't matter. >> it's kind of calmed down. >> it didn't matter. >> it didn't? >> 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 we're kind of just like joking about, you know, listening and saying

if the 10-year 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 it's wrong? >> what difference does it make is sort of your take? >> yes. and i don't want to ever get in a situation where i dismiss something just because it's wrong because it is in control. >> right. >> it's 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 weren't 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 it's the japanese central banks gone wild. because they are trying to create millions of new people. they had a demographic challenge over there, right? it's just not growing. >> that's hard. >> so you keep hitting people with rates. >> it's hard to do over a short

period of time. want to remind that in italy also, it's not working out well, other countries in europe, russia. >> russia back to 1933? i don't know. >> we don't have that issue because of immigration. >> well, japan have had immigration and not to be lecturing a whole nation, but that's how you get growth if you don't have birthrate. >> yeah, it is. you're right. but they've been making that point about demographics in japan for a long time. negative rates get people to have babies. >> etfs doesn't change those. >> no, it doesn't. the ecb buying your bonds to finance your latest takeover don't help either. >> no. no. these are things that don't work. >> i mean, let's have some kids. the ecb's buying bonds. >> the united states is the best. it's the best. i think china's not bad. we know china's growing. but i'm saying the united states really does have a lot of things going for it that last week's dangerous alpha, i mean, i just

think dangerous alpha's 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. >> we'll 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 week's gains. >> usually you have shortages except for the fact a few weeks ago we thought they were going to have too much inventory. so that's great. why don't we go back a few weeks and say, listen, big worry is that they can't meet the demand. i mean, come on.

i saw some pieces this weekend, these are the greatest ones. if the samsung phone didn't catch fire, then apple wouldn't do that well. oh, okay. well, yeah, sure if it didn't. 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 can't ace trsterisk thin like that. >> no, you can't. to be fair to j.p. morgan they say their caution is strd on non-u.s. markets where they've 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 don't really have the chinese data yet. >> no, we don't. although one would expect samsung's issues are global, right? >> well, if it weren't 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. it's incidental. >> it is. samsung by the way selling some stocks in its -- >> i saw there. >> equity portfolio they've 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. >> it's 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 wouldn't have to wait in line at my chipotle. >> no one's 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 what's it been a year? >> the last incident -- >> well, the last incident was in boston. so you've got a ways. >> you got a ways. >> that's 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, i'm not sure about how well the recall because remember they sell it all over the place. it's not as definite a recall as if apple were to have a recall. and it's also not the cells but the wiring of the cells. and the idea the consumer protection bureau is saying if it's really you can only charge your battery up to a certain point, 60%? is that -- what 59%? >> i don't 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 it's okay. that's 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 don't 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 company's open world conference in san francisco. in his keynote address ellison said amazon's 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 three-year lead over anybody else. i'm 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. it's a trash talking team. which isn't bad. you know josh norman's 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 isn't noticing, their noticed. is he noticing their noticed. >> he's a pretty competitive guy that being mr. bezos. he's 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. >> why'd they move that up? >> you're 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 don't get -- i don't have a relationship with ellison where he tells me how the relationship is. >> sure. yeah. >> but i see there isn't a time they don't 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 it's been bezos in the room at the golden globes, now at the emmys. question is, what's 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. it's almost like a negative for netflix. not a positive for -- well, amazon doesn't need anything positive. it's 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. it's not clear that they are even though it would seem to be direct competitors. they certainly are in competing for the content itself and they're 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. it's 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. >> they're 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, i'm 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, how's 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. >> there's always remake down the road. >> you think so? >> yeah, you could always do it after "mad money" shoot in the evenings. >> that's one of those things, had it been a good movie, more people would have gone. yeah, you can, baa it wasn't 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. that's coming up later today. we'll get cramer's 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.

♪ we're 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 don't. 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 you're on the road. [blaring car horn and skidding] fortunately, you're on the couch. ♪ guyhey nicole, happening here? this is my new alert system for whenever anything happens in the market.

kid's 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 don't 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 they've 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. that's a reference. >> about autonomous vehicles of course. >> and then, they believe earnings can be flat in 2017 and 2018, if that happens, the market's going to like it. so these are two things that

don't necessarily inspire, but at the same time when the guy is hated for a long time, you're kind of tempted to think, well, let's take a relook at it. because it is very inexpensive. six times earnings and it's 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 year's going to be worse than this year. so in that sense, to not be facetious, you think this year's 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 really put a lid on overall demand for automobiles. >> i remember recommending smith korona marshan thinking while the typewriter was going down in value, there are other things that would overrun it, their chemical business, things don't tend to overrun, they tend to accelerate.

the electric typewriter went away like that, but i think all these stories that you read about the driverless car, i think it's happening sooner than people realize. or else the stock would be at 30 or 35%. >> will have such huge ramifications, not just for awe automakers but everybody. >> it's a big secular change. >> it is. the opening bell a few minutes away. stay with us on "squawk on the street." more coming your way.

announcer: they'll test you. try to break your will. but however loud the loudness gets. however many cheese puffs may fly. you're the driver. the one in control. stand firm. just wait. [click] and move only when you hear the click that says they're buckled in for the drive. never give up till they buckle up.

>> announcer: the opening bell is sponsored by power shares qqq. power shares, leading the intelligence etf revolution. you're watching cnbc's "squawk on the street" live from the financial capital of the world, the opening bell in just over 90 seconds in a week where we'll wait on the boj, wait on the fed, two-day meeting begins tomorrow with a press conference on wednesday. authorities are seeking a man for questioning ahmad khan rahami, a naturalized citizen of afghanistan. a lot to juggle on a monday. >> let's not forget john stumpf

on the hot seat in the senate. there was an upgrade today. i thought it was an interesting upgrade because i thought it kind of missed a lot of what i think is the most emphasis on wells. >> this is baird on wells. >> yeah. talking about j.p. morgan whale. it was not cultural wise. no one decided to not bank with j.p. morgan because of the whale. >> right. had no impact on customers. it wasn't a customer facing exercise of any kind. it was simply a trading loss of great significance because of internal controls. >> well, you didn't go look at your account and see, wow, they opened this. now with another bank my wife found out a credit card had been opened in her name and she didn't want that credit card. so i don't think, i mean, to be fair to wells, it happened other places. but wells is the one that's going to be on the set. and it's going to make you check your account. and that's never something good. >> that's one of two big

upgrades today. the other gm whose earnings we are going to get on wednesday as well. >> that's a very good point. i think that stocks are cheap, it just hasn't meant anything. each week there's a stock that does well and moves the whole market. apple, intel do well, tech has been a leader, but not all of tech. >> there's the opening bell. pretty good breadth at the open as we keep a close eye on crude over at the big board here ringing the opening bell it's workshop and business opportunities, a nonprofit helping entrepreneurs and underserved communities celebrating its 50th anniversary at the nasdaq. fiveprime therapeutics focused on developing immunooncology therapeutics. steve canaccord on paypal. >> yeah, that was like maybe shouldn't buy it because declining ratings, declining advertising, not selling

paramount, i was thinking what else. give me more reason not to buy it. those seem to be good ones. >> yeah, we told people more or less for months they weren't selling paramount. i'm not sure why that became a news story of any kind. and two weeks ago i reported it was off the table. but the key for viacom, i think, jim, is will tom dooly, the current ceo remain in that post as permanent ceo? that's a decision nearer term the board is going to need to make. and within that decision maybe other things we can then imply. leslie moonves who runs cbs of course last week at an investor conference made it very clear no real interest certainly in a cbs transaction as any time soon. i said while that has to be something that may well eventually occur, it may not be necessarily in the near term, it's not. and certainly bring in an outsider as ceo, you'd be giving them a lot of running room. nobody's going to take the idea that you're going to then merge the company with cbs.

but i don't think you can dismiss that out of hand as a possibility down the road. you can't. but near-term the challenges are the same challenges. >> right. >> to your point. >> i think there's a lot of communications companies we don't really talk much about. they just have this secular decline going on. we don't really, well, so what. no, used to be huge companies. >> used to be somewhat growth companies though you and i have we've talked many times about how really use free cash flow to reduce the share count and that's how they've improved eps, but not necessarily the top line. >> no, but like at time, t-i-m-e kind, not doing that well. >> no. >> and look at discovery. >> discovery is hanging in there a little bit. >> not that well. fox. >> the european strategy. >> fox has had a rough go of it. >> very rough go. >> thank you. the elephant in the room. >> 12 for the year. >> what a great company.

i guess everyone is still geared toward whether someone cut the cord, found out didn't get the injury reports before the game time. i mean, honestly, i just sense that disney everything is going right except for espn subs. and the idea no one cares, it's other stuff, is very discouraging. but i think it's in the dog house. time warner came back audiotape the wail. cbs tell a great story -- >> it's had a better year than last year, stock up about 9.5%. time warner is up. and netflix is down 13% plus this year. >> i don't know a lot of people championing netflix here. i just don't hear it because i think that it's had two quarters that people didn't like. in the end it's a signup stock. how many people signed up? we don't have the signup figures. it has that period now where all it does is trade around the quarter. used to go up constantly. new show. doesn't go up on a new show anymore. >> house of cards got shut out

at the emmys last night. >> how do you like that? >> as for disney it's now year-to-date tied with boeing for the worst component along with nike close behind. >> you know, on friday this market was starting to rally and then got hit off united technologies. there was a lot of misinformation about that united technologies call. analyst meeting, it was not demand. it was a problem in making this gear turbo fan that is so important to them. but they are way behind. and that does hurt. but he made the point over and over again that it was demand. the airlines are all mad at him because he can't produce it. and all the takeaways were there's not enough demand. i want to give greg his due, he was out front saying, listen, we can't make this thing the way we're supposed to and it's very disappointing. but then the takeaway of, well, they don't have -- the customers don't want it. customers are furious. but it's not demand. it is inability to make a game changing engine that can save 15% on fuel.

and hayes incredibly standup. by the way, you listen to him, he doesn't speak like a ceo. he speaks like us. let me tell you, kind of screwed up on a fan. we're like making 150, we should be making like 200. and we make like 350, but we really screwed up. no one ever says they screwed up. what is with him? >> no, he's refreshing. >> like to be able to present a better number but at this very moment, it's like, no, and who knows when asked about china. wow. no spin. the man is not capable of spin. >> no. >> that's fascinating. home builders getting a bid today. we are going to get some earnings later on in the week including lennar, kb tomorrow. i think maybe some macro data too. >> i think kb should have a good quarter because toll brothers has said that -- you get to california, it's impossible. like california homes, you put it up and it sells. put it up and sells. kb home is really very much california, and it's also one of

the best performing in the group. lennar's not one of the best performing in the group. lennar's a great company. >> california's turning into an interesting economic story just in the share of jobs every month that are created that come from california. like 40%. >> really? >> yeah, of whatever we get. 182, 151 -- >> i guess that's how an average home can sell for 1.3 for kb and how toll brothers they don't go below 1.5. i mean, that is a huge purchase. a first home of $1.3 million? >> reports of california's demise were greatly exaggerated it does seem. >> weren't they? >> yes, amazing state. jerry brown fourth time around. >> incredible. very pragmatic. >> two terms and then he's back. yeah. >> i don't know, my daughter lives on the border between california and oregon. the exodus from california, not because california's not doing well but it's just too expensive. >> right. taxes, you hear about people going to -- >> people are arbitraging it. not like florida or new jersey. >> but apparently the economy is quite strong. >> quite strong. >> jim, on oil, ubs has a big

report out today on the permian production. is there a need for more plants, processing in the permian, your thoughts at just 43.5 here? >> this is where we always seem to get the rumors that they'll be a freeze when get down to the low 40s. the permian -- almost everywhere in the permian -- permian is about half of our production now. it's about half of our production. and the reason is because it's got all the infrastructure and mr. sheffield will tell you from pioneer, in some places it's $2 or $3 a barrel. >> how is that possible? >> because it's been there forever. it's right there. technology's very inexpensive. but remember, to get it to the actual place is a little bit more. but he just says, listen, saudi arabia. but remember, that's spindle top, it's where we first had it. and it's just a lot there with better technology. and the permian is where you can just drill with a straw, drill

with a straw. >> i got it. i got it. straw. i got it. >> oil comes out -- >> permian's real. every other area is really struggling. >> but to the extent that costs overall have been lowered for the entire industry. >> dramatically. 35% to 40%. >> if and when a commodity does rebound, numbers will -- >> >> facebook up for what looks like the fourth day in a row. you noticed a call at citi. >> that was a big call. 148 goes to 158. but most importantly talking about estimates being reasonable. if you do a back of the envelope 650 is what people are looking for for 2018, 2018 is where you think about a growth stock. so can you go to 30 times? >> yeah. facebook's multiple has contracted. >> it's contracted. and i think one of the reasons

why it's contracted is something, again, i want to reference bill miller because i thought he was a sane person at dangerous alpha. and what he said was -- improving alpha. what he said was facebook and google are all fighting over the ad market, which is not as big as the $5 trillion retail market that amazon is. he's basically saying, listen, these are all good, but i recognize, yes, facebook's opportunity total adjustment for facebook is not as big as for amazon, i think that's important. a lot of retailers trading up there. >> facebook with an emmy win last night as well. something new for them. meanwhile, dow's up about 93 points. bob pisani's on the floor. hey, bob. >> and a nice start to the week, carl. happy monday morning. dow's up 90 as you mentioned. europe's up as well after a lousy week last week, and forget about that one. we're doing all right over in europe. most of the banks are up. some of the italian banks are up, unicredit, banco santander,

deutsche bank is up, total is up and autos which were a big leading indicator, like diamler, also on the upside. sectors here in the u.s. with oil up nicely here on more rumors about some supply constraints, perhaps. energy is up. bank stocks are doing better here. tech, which was the big market leader last week, particularly apple. and there it is the s&p 500 real estate sectors, we talked about all last week, there is now an eleventh sector. this is the first morning it started trading. you can see it's up fractionally. reits got hit last week on rate concerns, but overall they've outperformed this year. reits are up about 6% or 7%, outperforming the s&p by about two percentage points. we had long term interest rates staying low. that helps reits. we had high dividends typically paying 4%. and this talk about this new creation of this new sector has also driven some interest as well here. best performers in the reits, believe it or not, i know you'll find this amazing, but retail reits have done very well because the biggest and the best guys out there, your equity

ones, your kimcos, simon properties, they have access to the very best real estate and very best retail people out there. so the top end malls are among the best performers. it's the lower end malls, the strip malls having trouble. you'll see a lot of them get bulldozed over the next several years, i predict, overall. now, a lot of people are asking what happens if you own the financials in the s&p 500 because the reits are gone out? and the answer is that you get a distribution. that's why you have the xlf, they're going to be distributing parts of the xlf, which were reits, spinning it off of course into a separate sector for holders of the etf. that's why you'll see these gyrations in the s&p financial sector this week because of the distribution that's going on. when it's all over, reits will be 3% of the s&p, about the same as material stocks, about the same as telecom stocks. talk more about that later. i just want to show you gm though which is up nicely. gm has not had a good year obviously. autos down about 6% on the year. i thought it was a bold call by the analysts at morgan stanley

here with their numbers because by and large most of the estimates for september have been coming down. and if you take a look here what's going on, only seven analyst haves a buy on this right now. ten have a hold. and none have a sell. you know it's 70%, 80% buy for most of the analysts on all the stocks, this is a pretty pessimistic group in gm. that's why i love the guy for making a bold call. as for the fed, this is a tough one because the odds say 15%, 20%, and yet why is the anxiety level so high down here that the fed might in fact try to do something? a lot of people feel the fed really does and they're going to try to surprise people. so there's this sort of paralysis mode going on. nobody believes the 15% chance and they think they could get surprised in off sides on the market here. best bet average person down here thinks no hike, but a lot of hawkish talk again about december, which also creates a little more anxiety. guys, i've never seen it so anxious down here on a rate hike that nobody believes is actually going to happen. it's a little bit of a strange

psychological situation to be in. right now the dow up 88 points. back to you. >> bob, thanks a lot. bob pisani. meanwhile, we are watching oil prices. jackie deangelis at the nymex this morning. hey, jackie. >> good morning to you, carl. that's right, oil prices trading higher this morning, but still well under that $45 a barrel mark. now, some mixed messages from opec over the weekend. the secretary genre minding everybody that the algeria meeting is informal. so the logical inference there is no decision is really expected. meantime you have the venezuelans out saying a deal could be very close. so you see this fragmentation going on within the cartel. then of course some chatter in the marketplace about an emergency meeting, maybe something more formal after algeria, to finalize some sort of a plan. so a lot of unknowns when it comes to opec. meantime, i want you to look at rbob gasoline this morning, it's trading down despite the fact crude is coming up. we have an update on the colonial pipeline incidenincide. the company is working on a bypass to help deliver supplies

to some of the states in the southeast that suffered this weekend. and they saw gas prices spike at the pump. so this is something to watch, but the expectation is that we're going to have some resolution by the end of the week and that this was a temporary blip. back to you, carl. >> jackie, thanks so much. when we come back, the legendary jim burrows directed shows like "cheers," "friends," will & grace," we'll get his take on the emmys last night. and also jon fortt in san francisco where he'll talk with oracle's mark hurd. good morning, jon. >> good morning, carl. yeah, last night larry ellison, oracle's executive chairman declared amazon's lead is over. this is a cloud conference now, but can this enterprise giant run fast enough to overtake the new kids of the cloud? we'll talk to mark hurd about that and a lot more in the next hour. "squawk on the street" will be right back. everyone thought i was crazy to open a hotel here.

everyone said it's so hard to be a musician, but i can't imagine doing anything else. now that the train makes it easier to get here, the neighborhood is really changing. i'm always hopping on the train, running all over portland. i have to go wherever the work is. trains with innovative siemens technology help keep cities moving, so neighborhoods and businesses can prosper. i can book 3 or 4 gigs on a good weekend. i'm booked solid for weeks. it takes ingenuity to make it in the big city.

i'm booked solid for weeks. hey, jesse. who are you? i'm vern, the orange money retirement rabbit from voya. orange money represents the money you put away for retirement. over time, your money could multiply. hello, all of you. get organized at voya.com. whether it's connecting one of or bringing wifi to 65,000 fans. campuses. businesses count on communication, and communication counts on centurylink.

thosthey are.sses? do i look smarter? yeah, a little. you're making money now, are you investing? well, i've been doing some research. let me introduce you to our broker. how much does he charge? i don't know. okay. uh, do you get your fees back if you're not happy? (dad laughs) wow, you're laughing. that's not the way the world works. well, the world's changing. are you asking enough questions about the way your wealth is managed? wealth management, at charles schwab.

new episode of our digital series "binge" is out today with jim burrows, ten emmys, known for "friends," "cheers," will and grace, this is new guard on netflix, amazon and streaming. >> -- or at least a pilot for netflix, i'll have to see what it's like if it comes to fruition. it's a fascinating form. it's certainly doing well in the emmys. >> when you see jeff bezos at the golden globes. >> yeah. >> winning. >> it's a new form. it's binge watching right up there. i did watch "breaking bad" and thought it was incredible. and i do watch -- >> but you're not a binge watcher? >> no, i'm not a binge watcher. >> so much of our series so far has been about legacy creators being dragged into this new era.

burrows obviously doesn't consume the way millennials do, but it is as generational as we said. >> knows what people want. what we thought about netflix, i remember when i interviewed reed hastings, he was able to almost algorithmically say if you like "scar face" then you will like this or that, in this case it was "narcos." and i found there's been talk work about how often some companies hit versus miss. and the ones that hit are the ones that are intuitive. this is just intuitive. he always had our polls. >> there's a lot of tech leaders who think that that algo model telling you what you probably should watch based on what you have watched, is dangerous long term. because it just backs you into a smaller and smaller corner of your own history. >> do you not feel someone got a memo that said you have to have

computerized animation, thing haves to blow up on screen in order to have a successful movie? >> right. >> a lot of us are tired of that. but the younger people who do nothing but play video games, notice activision, new highs keeps hitting, those are reiterations of the same thing, but it works. >> it's going to be very interesting. we're in such the early days of this change in the way people view things. >> you think so? >> and how it's provided to them. i do. you wonder whether things are going to splinter even more because everybody has their own preferences and then can tailor those specifically to the video offerings they want, whether it be on their phone or easily transferred to the big screen on their home via an app. >> it's interesting, i favor as i get older the bigger street. the younger people i deal with are watching everything on their iphone. to me i watch things on my iphone. it's not ideal. >> it's convenience more than. >> it's convenience. trying to do many things at

once. >> their eyes -- >> better than ours. >> they like to do many things at once. that's another thing we didn't used to do. but that's because we had plastic phones we put to our head growing up. we dialed ad35918. we're not as easily able to do as many things. i remember when i went to the graduation of my daughter, my other daughter was like there's some down time why not play a game. down time? i mean why not pick up a book. down time. pick up a book. seen barnes & noble lately? >> people still read books. >> you still read? >> absolutely. >> incredible. >> that interview with jim burrows is now streaming on cnbc.com/binge, also on hulu, youtube and apple tv more this morning. we'll get stop trading with jim. dow's up 105.

you know what, guys? there's a lot of tree branches and dry brush over here. we should probably move the bonfire over there. [smokey whistling a tune] i'm guessing smokey liked that idea. hey, it's been crazy with school being back- so we're constantly going over our data limit. oh, well, now - all of our new plans come with no data overages. wow, no more overages? so that means... go on...say it... we'll finally be in control...

and we're back... introducing new at&t plans with no data overage charges.

hillary clinton is expected to speak in a few moments outside of new york city. we do expect her to comment on the investigation regarding the bombings in new york and new jersey over the weekend. and then she'll board her plane, head to philadelphia for a campaign event. if we get headlines out of that, of course we'll bring them to you. meanwhile, let's get to cramer and stop trading. >> well, i got to tell you, this

deal between tech deal and abnet is a big deal. tech deal is a european base, supermarket of parts, they bought i.t. solutions business, abnet fallen on hard times, both good companies, and they've been head-to-head, but this is a way to be able to expand into china for tech data, get some cash and stock in for avneck, but tech data overnight has become a warehouse of technology and also they can put it together for you. the multiple is screaming on tech data, very additive deal. i'm kind of amazed. i'm amazed that tech data -- which avnet been so competitive with tech data, but the ceo was let go. avnet had a series of bad quarters and, boom, look at this. tech data, all of a sudden powerhouse in information technology and the supermarket of technology. what a deal.

blockbuster. that's not a takeover. that's just an acquisition of a $2.6 million division. wow. think about value added. >> what's on mad tonight? >> okay. we've got a couple things tonight that we're working on, but one of the things we're going to do is there's a winner in the oil patch that i think i've got -- i mean, a huge winner. it's not talked about at all, except for tonight if you tune in. >> all right. >> big winner. >> and then after that what are you going to do? >> besides that i'm going to analyze the situation about a stock that literally -- >> i mean after the show. tonight. >> after the show -- no, i can't jinx it because my fantasy team loss so now it's my reality team in play. if my reality team doesn't win, i'm going to take tomorrow off, okay? >> okay. >> is that all right? >> no. >> no, i have to show up? >> yes. >> okay, but i'll be hang dog. >> well, we'll get over it. you've learned how to get over it in the past. >> all right. we didn't even get to serepta,

we didn't get to wentz -- >> always ood day. >> fda looks like they approved that drug for muscular dystro y dystrophy. >> yes. >> isn't that fabulous? >> we'll see you tonight 6:00 p.m. eastern. when we come back, the latest on the new york and new jersey bombing investigations. mark hurd, oracle in a live interview. dow's up 114. we're back after a break. download the new app? we're good. okay... what if a million people download the new app? we're good. five million? good. we scale on demand. hybrid infrastructure, boom. ok. what if 30 million people download the app? we're not good. we're total heroes. scale on demand with the number one company in cloud infrastructure. hewlett packard enterprise. what's critical thinking like? a basketball costs $14.

what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley enepeople want power.hallenge. and power plants account for more than a third of energy-related carbon emissions. the challenge is to capture the emissions before they're released into the atmosphere. exxonmobil is a leader in carbon capture. our team is working to make this technology better, more affordable so it can reduce emissions around the world. that's what we're working on right now. ♪ energy lives here. ♪jake reese, "day to feel alive"♪

♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪

good monday morning. welcome back to "squawk on the street." i'm carl quintanilla with sarah eisen and david faber at the new york stock exchange. market with a nice gain to start the busy week. dow up 124. of course next few days will bring us bank of japan, fed, u.n. general assembly. we are awaiting hillary clinton and some potential comments on the investigation over the bombings in new york and new jersey over the weekend. by the way, oil helping out up 68 cents is a big reason why we are in the green today. we got some economic data crossing the tape. let's get to diana olick with those numbers. hey, diana. >> hey, carl. home builders sentiment a big surprise to the upside jumping 6 points to 65 in september.

august revised down one point, but the street was looking for unchanged at 60. so 65 a big gain. 50 is the line between positive and negative sentiment. we were standing at 61 a year ago. the builders are pointing to jobs and increased income for the gains. they also said they were surprised to see an uptick in august. usually the summer is the slower months. of the index current sales up 6 to 71, buyer traffic still the only one in negative territory, but it did see a four-point gain to 48. regionally the west saw the highest home builder confidence at 73. the northeast the lowest at 42. builders still saying that they can't raise prices as much as they need to given the higher cost for labor and land. they say buyers are still strapped. i spoke to one builder eya bob, the president there, he said they did see a surprise uptick in the summer, and they expect

strong sales in the fall. he says he thinks people are jumping off the fence because interest rates have been so low for so long and now they're expecting them to rise. so that could be part of the push into the fall. back to you guys. >> all right, diana, thank you for that. our diana olick. a manhunt is now underway in the investigation into the explosions in new york and new jersey over the weekend. our morgan brennan is in manhattan with the latest. hey, morgan. >> hey, carl. so just a short while ago the fbi coming back on the scene here on 23rd street where a bomb exploded on saturday night. the evidence response team was sweeping 23rd street for additional evidence. and this happening after new york governor -- or as new york governor andrew cuomo now saying it looks like the bombing that happened here could be an act of terrorism with a foreign connection. so this as investigators have identified and are actively searching for ahmad khan rahami, a 28-year-old male from elizabeth, new jersey, fbi considers armed and dangerous. authorities say he's believed to

be operating a 2003 blue honda civic with new jersey registration d63bye. suspected in the bombings that have occurred in the last few days here in new york and new jersey. he's the same man caught on surveillance video at both manhattan scenes. new jersey state police say he's also wanted for questioning in connection with saturday's seaside heights explosion. officials have now officially linked all of these incidents. and earlier heavily armed fbi agents in camouflage were seen entering a building in elizabeth, new jersey, not far from a separate explosion which happened overnight at a train station there. so as of early this morning the fbi had five individuals detained for questioning related to this manhattan explosion. that sent debris through the air and pedestrians running for their lives for safety. in all we've got four crime scenes, two in new york, two in new jersey including this one here in manhattan, which is still very much an active crime scene. and as you can see behind me with the street closed off.

that being said, however, mass transit is operating. we do have the subways on ends of each blocks open for business as well as both sixth avenue and seventh avenue. i would tell you there's a lot of traffic, a lot of congestion with these cars moving up and down these streets. also worth noting, a few businesses inside this block are open. and we do have new yorkers essentially going about their business on these major avenues despite the rain albeit with a much more heightened sense of alertness, guys. >> all right, morgan, thank you for the update. of course we'll come to you with anything new as we learn it. morgan brennan in new york city. meantime, keeping an eye on this market rally as carl mentioned we've got a 130-point rally here for the dow. ahead of the fed's big interest rate decision and of course that key bank of japan meeting on wednesday as well. to assess the market's moves our very own jim cramer has nice words of praise for tom lee. listen. >> i never like to go against tom lee. he's really smart and good, does a lot of great work.

>> that's a good introduction. tom lee joins us now along with deutsche bank's chief international economist. gentlemen, good morning to you. so, tom, how much can bulls milk this rally ahead of what's going to be a very important fed meeting? >> well, i think there's quite a lot of runway for stocks to go higher. i think part of it is there's a lot of performance chasing. i think our clients have really taken down exposure. now i think they're a little nervous of the market breaks to the upside. and then you have a lot of seasonals at work. the markets tend to have momentum in the final three months of the year and we're up year-to-date 90% of the time we have the directional follow through. so i think you got to stay constructive and buy the dips. >> after what is usually a pretty brutal month for stocks, and that is the month of september. >> that's right. september and october i think scare people because that's really where most crashes take place. and this year there's some sources of volatility especially around the elections, but you have to remember because people have anticipated this i think

exposure is low and i think that's why there's room for people to do some panic buying. >> so as we go into the two-day fed meeting, decision on wednesday, dot plot the whole shefwa shebang. what are you expecting after the posturing and hinting coming after? >> we expect a hawkish hold. >> hawkish hold? >> hawkish hold meaning they're staying on hold, but the message will be we are close to fulfilling the mandate of full employment, inflation of 2%. look at the labor market, tight still, number of indicators both jobless claims also job openings including non-farm payrolls all suggests the market is good enough. they will not go this week but keep the door open for going late they are year. >> let's continue this conversation in a moment. we're getting breaking news out of biotech and health care. for that we'll go to meg tirrell at hq. >> carl, it's one of the most anticipated events of the year, sarepta getting approval for

muscular dystrophy drug. stock up 70% today on this surprise decision. most analysts expected this drug would be rejected because the number of patients that was tested was so small. this was a months long battle. decision from the fda was delayed by months. people didn't know which way this was going to go. but this drug getting approved by the fda sending sarepta up more than 70% today, guys. >> wow, that's a big move. meg, thank you. we'll continue to follow that. talking about the broader market here, biotech actually has had some interesting moves. there has been health care matters, i wonder if you think this is going to continue to be a hot area despite some of the political concerns, tom? >> i mean, i think health care is one of the true really good businesses in america, right? all the best health companies are in america and it is a good business. but as far as stocks, i think you should be a little more cautious on them because they had such leadership for the last

seven years. and it's rare for stocks to continue to lead like that. and as you're right on the political front i think it depends on who ends up becoming our next president, but i think there could be some overhang on health care. >> i wonder on your hawkish hold theory related to politics if there's a risk that if the fed comes out this week, holds policy, says we're ramping up, we're getting ready to raise interest rates, prepares the market for december, do you think that opens them up to criticism that they're being political waiting for the election to happen, holding their fire and then going? >> they must be worried about that. i mean, the relationship between congress and the presidential candidates of course has been somewhat tension, but this is a question i constantly get from clients, what does this matter, why is this important, what is the role of this in the decision making they're having, not only this week but as we go into the coming months. >> tom, have you worked through the differential for the market between a clinton and a trump

win? clinton's lead in the polls has narrowed and yet the market has powered higher over the last couple of weeks. >> yeah. i think this market wants and i think the market probably wants a clinton win. because, you know, she's more experienced. i think they kind of like her temperament. but as far as market direction over the next two years, four years, eight years, it's not going to make a difference. i think we're really talking about fiscal stimulus, which is positive. i think underlying demand for housing is strengthening. and so i think really what's going to be critical is the sort of path of interest rates more than the next president. >> again, as we're speaking some more news, busy morning, prime minister abe of japan just finished talking to some investors here in new york. let's go to seema mody. seema. >> reporter: carl, that's right. prime minister of japan shinzo abe trying to instill confidence amongst folks here in new york that the japanese economy can turn around. and defending abenomics which of

course refers to aggressive policies. take a listen -- actually, i don't think we have that slide -- yep. i was going to say -- >> i apologize. let's get to hillary clinton speaking in white plains. >> i've talked with mayor de blasio. our team has been in close touch with authorities in new york. we know they're doing everything they possibly can to keep us safe in this dangerous situation. i've also spoken to the governor of minnesota. like all americans, my thoughts are with those who were wounded, their families and our brave first responders. this threat is real, but so is our resolve. americans will not cowher, we will prevail. we will defend our country and we will defeat the evil, twisted ideology of the terrorists. i'm the only candidate in this race who has been part of the hard decisions to take terrorists off the battlefield. and i've laid out a

comprehensive plan to meet the evolving nature of this threat, and take the fight to isis everywhere they threaten us, including online. i'm grateful to have support and advice from a wide range of bipartisan national security leaders who've worked with both democratic and republican presidents. when we met together earlier this month in new york, one of the points they emphasized was the need to support state and local law enforcement who act as our first line of defense, making sure they have the resources, the training and intelligence they need to effectively prevent and respond to terror attacks. and this weekend's events underscored how important that is. we should also launch an intelligence surge to help identify and thwart attacks before they can be carried out. we need to work more closely with silicon valley and other

partners to counter terrorist propaganda and recruitment efforts online. and it is crucial that we continue to build up trust between law enforcement and muslim american communities. in the middle east we have to smash isis' strongholds with an accelerated coalition air campaign, more support for arab and kurdish forces on the ground and intense diplomatic efforts in syria, iraq and across the region. working closely with our allies and partners to keep us safe must be the top priority for our next commander in chief. later today i'll discuss the threat from terrorism with president si si of egypt and other world leaders. most of all i want to say this to my fellow americans. let us be vigilant but not afraid. we have faced threats before. if you see something or you hear something, report it immediately to local law enforcement

authorities. i know we will meet this new danger with the same courage and vigilance. we choose resolve, not fear. we will not turn on each other or undermine our values. we'll stand together because we are stronger together in the face of this threat and every other challenge. be glad to take some questions. >> the person of interest in this case is an afghan immigrant, now u.s. citizen, what do you say to voters who may see this as a reason to consider supporting trump's approach to terror and immigration? >> well, it is true that a suspect of interest has been identified. and we need to do everything we can to support law enforcement as they track him down to determine what role, if any, he played in these events. but let us remember there are millions and millions of naturalized citizens in america from all over the world.

there are millions of law-abiding, peaceful muslim americans. this is the kind of challenge that law enforcement can be and is prepared to address, namely going after anyone who would threaten the united states. so i am absolutely in favor of -- to settle. but we need a better visa system. let's remember what happened on 9/11. these were not refugees who got into airplanes and attacked our city and our country. so let's not get diverted and distracted by the kind of campaign rhetoric we hear coming from the other side. this is a serious challenge, we are well equipped to meet it. and we can do so in keeping with

smart law enforcement, good intelligence and in concert with our values. >> secretary clinton, the white house has labeled these lone wolf attacks a top concern. and given this weekend's events, what more specifically should be done? and what would you do specifically beyond what president obama has done? is the current plan enough? >> monica, i think that the lone wolf problem is one that we have to invest more time and more resources into combatting. when i met with the distinguished group of national security experts, as i said both democratic and republican administration experiences, they made a very strong point that the recruitment and radicalization that goes on online has to be much more vigorously intercepted and prevented.

i have been saying this for quite some time. and i believe it's an important part of our strategy. the other point they made is that the recruiters for isis and these other terrorist groups look for people who online demonstrate the mental profile, the level of paranoia, the level of delusion, the level of disappointment that then is exploited by quite able terrorist recruiters. so we've got to do a much more intensive effort. and that's why i mentioned silicon valley in my remarks. not only to take down terrorist propaganda, but to do everything we can to intercept and prevent radicalization and recruitment. and i think we are at the beginning of that, but there's much more we need to do. and the government cannot do this without the close participation of tech companies and experts online who can give

us the tools and lead us to those who are attempting to promote attacks like we've seen. hey, jennifer. >> hi. are you concerned that this weekend's attacks or potential incidents in the coming weeks might be an attempt by isis or isis sympathizers or really maybe any other group, maybe russians, to influence the presidential race in some way, and presumably try to drive votes to donald trump who is as you've said before widely seen as perhaps being somebody who they would be more willing to -- or see as an easier person to be against? >> well, jennifer, i don't want to speculate, but here's what we know. and i think it's important for voters to hear this and weigh it in making their choice in november. we know that a lot of the rhetoric we've heard from donald trump that be seized on by terrorists, in particular isis.

because they are looking to make this into a war against islam. rather than a war against jihadists, violent terrorists, people who number in the maybe tens of thousands, not the tens of millions, they want to use that to recruit more fighters to their cause. by turning it into a religious conflict. that's why i've been very clear, we're going after the bad guys and we're going to get them. but we're not going to go after an entire religion and give isis exactly what it's wanting in order for them to enhance their position. secondly, we know that donald trump's comments have been used online for recruitment of terrorists. we've heard that from former cia director michael hayden who made it a very clear point when he said, donald trump is being used

as a recruiting sergeant for the terrorists. we also know from the former head of our counterterrorism center, matt olson, that the kinds of rhetoric and language that mr. trump has used is giving aid and comfort to our adversaries. now, look, as i said in my remarks, i'm the only candidate in this race who's been part of the hard decisions to take terrorists off the battlefield. what does that mean? i was part of the national security team that worked with president obama to develop strategies to fight the terrorists, sometimes that involved direct kinetic action, sometimes that involved working with allies and partners, sometimes that involved capture. i won't get into classified information, but i have sat at that table in the situation room, i've analyzed the threats, i've contributed to actions that

have neutralized our enemies. i know how to do this. and i understand how we don't want this to get even bigger than it already is. so we're going to stay focused on what will work and how we deploy a strategy that will protect america, work with our allies and partners to take isis down, and have a strong counter terrorism effort online in order to try to defeat the ideology that stands behind these terrorist attacks. >> secretary clinton, as you know, donald trump has had a lot to say about your record on this issue over the weekend. here's one example. under the leadership of obama and clinton, americans have experienced more attacks at home than victories abroad. time to change the playbook. what's your reaction to that characterization? >> well, it's like so much else he says. it's not grounded in fact.

it's meant to make some kind of demagoguic point. and the facts are pretty clear that, you know, we are still have challenges. that's what i have been talking about throughout this campaign. i am prepared to, ready to actually take on those challenges, not engage in a lot of, you know, irresponsible reckless rhetoric. but to do the hard work, as i've done before, to put into place the strategies for local and state law enforcement, for an intelligence surge, for the kind of preventive actions we need to take here at home and to intensify our efforts to defeat isis. you don't hear a plan from him. he keeps saying he has a secret plan. well, the secret is he has no plan. so let's focus on what we really can do, and what i've laid out is a path forward that will keep us safer, protect our country and go after the terrorists to

finally destroy them. thank you. thank you guys. >> that is secretary clinton talking about the investigation into the new jersey and new york bombings over the weekend, calling for what she called an intelligence surge to detect attacks before they happen, calling for an accelerated air campaign against islamic state strongholds. she moves onto philadelphia later on this morning for an event and then will hold some talks with the prime minister of japan, abe, egyptian president cici, busy day for hillary clinton. we perhaps hear from the president later today as well. >> she also took some shots there at donald trump, in part from some of the questions from reporters, which she did take and she's been criticized for not doing press conferences. so this should clear that up a bit. she said that his plan when it comes to isis and some of his accusations that the obama/clinton policies have led to more attacks are not grounded

in facts. that it's some type of demagogue point. she said the secret is he has no plan. she's been in the situation room, she's fought terrorists before, you wonder if that opens her up to some of that trump criticism of him saying, yeah, she's been here before and look what we have to show for it. anyway, an issue certainly terrorism moving front and center to this presidential election with just 50 days to go. we're keeping an eye on the markets for you. still looking at a triple digit rally for the dow up 110 points ahead of a very important week. the central bank week of reckoning as the financial times calls it. much more market coverage on cnbc when we come right back.

listen to me. i am captain of the track team, and if i'm late... she doesn't really think she's going to get out of here, does she? be nice. she's new. hello! is anyone there? rrr! wow. even from our standards, you look awful. oh, sweetie, what happened? girl: me? my friend becky got to talk to this super-cute boy, and i tried to act like i wasn't jealous, but i so totally was, and then, out of nowhere, this concrete barrier just popped up. maybe it was a semi. you mean you were driving? yeah. i mean, i know the whole "eyes on the road" thing. but this was a super important text. maybe you have to know becky. texting? great. but it was only, like, 5 seconds, and i'm a really, really fast texter, so it wasn't even a big deal. actually, has she texted me back yet? [squishing sound] wow, i get, like, no bars in this place. i wonder if they have wi-fi here.

oracle kick canning off its annual conference in san francisco today. our jon fortt is there and joins us with more. good morning, jon. >> good morning, carl. oracle's message thus far seems to be we're taking it directly to amazon. executive chairman and founder larry ellison last night said amazon's lead is over, talked

about the second generation of infrastructure as a service that they're coming online with, saying it's going to be more affordable, going to take on amazon, the cloud leader directly also talking about how oracle is the only player to have infrastructure, platform and applications as a service in the sort of volumes they do. and especially that application piece combined with oracle database which has also gotten a refresh. now, all of this very important at a time when we just saw oracle report earnings. new software license, kind of the legacy business, not growing like it used to. cloud though growing very quickly. finally reaching the point where the dollar growth in cloud is outpacing the dollar decline in new software license. oracle here making the argument that's going to continue. they're going to release new software in the cloud first and then also on those legacy forms as well. so we'll be talking about that and a lot more with mark hurd later on this hour. one of the ceos of oracle, here

on "squawk on the street," carl. all right, jon, thank you. looking forward to that interview. jon fortt in san francisco. as we head to break, take a look at where stocks are trading. we've got a 104-point rally here on the dow. as far as the s&p 500 up about 12 points. that's a little more than half a percent. financials are having a strong day after a rough week. industrials are also leading the charge as well as technology. so real cyclical feel and a broad based rally. much more ahead on the markets on "squawk on the street." stay with us. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t,

and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t.

good morning everyone. i'm sue herera. here is your cnbc update this hour. the fbi is seeking a 28-year-old immigrant in connection with the new york city and new jersey bombings. he is ahmad khan rahami and

considered armed and dangerous. they believe that he is the man seen in surveillance videos near the bombing sites. we'll have a live report for you in just a few moments. a palestinian assailant stabbed two police officers outside jerusalem's old city before being shot. he's in serious condition. two officers were taken to the hospital, one with serious injuries, another with moderate wounds. a 20-truck aid convoy destined for aleppo with enough supplies to feed tens of thousands of people was still stuck at the turkish border hours after a seven-day cease-fire in syria expired. the aid had been sitting at the border for a week. and a ceremony in memory of all victims of terror attacks was held in paris. french president francois hollande residing over that efbt. the names of the victims were read out during the ceremony. that is the news update this hour. sarah, back to you. thank you, sue. a manhunt is underway in the

hunt for the suspect in a series of blasts in new york and new jersey. nbc niece jonathan dienst joins us now. >> wanted poster out for ahmad rahami, new jersey resident believed to be the man who planted those bombings in new jersey and new york. fbi putting out a wanted poster this morning and the manhunt is ongoing at this hour. there's also the search continuing in elizabeth, new jersey, at the family home there. they want to know if that was the bomb factory where the bombs were built or if there's any addition additional evidence that might lead them to this suspect or to where the bombs were built. also ongoing, the question, did he have help? did he have a support network? was he directed by anybody overseas? governor cuomo raising the question of possible international connections this morning. no confirmation coming from the fbi or the nypd at this hour.

there were five people stopped in a car overnight at the varizano bridge. they were seen leaving that apartment. the fbi and police pulled that vehicle over, we're told, hoping that rahami was inside. that turned out not to be the case, but some associates or perhaps one or two relatives were inside. they've been questioned. no direct connection to terror. all this happening after a bomb -- yet another bomb was found at a train station in elizabeth, new jersey, and they say it's very similar to the one that was found near the jersey shore. and on top of that the devices had similar triggering mechanisms to the devices found in new york. all of that plus the surveillance video showing the suspect near the chelsea bombing scenes how the fbi, nypd and new jersey state authorities link rahami to this alleged attack and that he is the alleged

suspect. again, the main question now, where is he and did he have any help either here or from overseas. that part of the investigation ongoing. back to you. >> jonathan, thank you for that. jonathan dienst here in new york city. of course all this happening around the u.n. general assembly. japan prime minister shinzo abe just finished speaking to investors here in new york. for that we'll go back to seema mody for highlights. >> one day ahead of a boj meeting, the prime minister of japan shinzo abe making the case for abenomics japan is use iing >> translator: there's no doubt abenomics have improved japan's investment environment. -- tell us that japan ranks number one as a base for both r & d and marketing. >> but the economic reality that japan is facing is that it's

dealing with chronic deflation and tepid growth. in fact, the nominal gdp of japan in 2015 was roughly the same as it was 20 years ago. just highlighting the stagnation that the world's third largest economy is dealing with. that's why there's so much focus being put on this central bank meeting in japan that kicks off tomorrow where the central bank governor kuroda is expected to unveil further easing measures in an attempt to resuscitate japan's economy potentially lowering rates into further negative territory. there's also some speculation out there that japan may adjust its bond buying program. that's why we're keeping a close eye on the 10-year and 30-year japanese bond yields. a lot of focus on what haruhika kuroda will have to say. prime minister abe also addressed the importance of tpp,

and that is likely to be the topic he discusses with presidential candidate hillary clinton later this afternoon. back to you. >> seema, thank you for that. seema mody watching abe's comments. meanwhile, the official countdown has begun, just 50 days until the november 8th presidential election. our john harwood joins us with the latest from the campaign trail. good morning, john. >> good morning, carl. start that countdown clock, 50 days to go. one week until the first debate, which is really going to tell the country that we're on the verge of a big decision. but i just wanted to as we begin the countdown take a look at the electoral battleground here. because we've seen the national polling tighten, and that has an effect when you look at how the electoral votes are falling. when you look at where they stand right now, the national race with hillary clinton just a couple points ahead of donald trump. you can see that she's got about 200 electoral votes that are solidly blue, that are likely to be in her column. donald trump has got 164. what that leaves is a dozen or so battleground states left to

be contested. three particular clumps of those states, there's one in the midwest most promising for donald trump, pennsylvania, ohio, iowa, michigan, wisconsin. then there's a chunk in the southeast, virginia, north carolina and florida. and you got three out west where the latino vote's going to come in play in a very big way, arizona, nevada and colorado. those are where the candidates are going to invest their money, invest their time, their strategic resources in terms of voter turnout and voter targeting and identification. that's where the thing's going to be decided 50 days from now we'll know the answer, guys. >> john, thank you for that. and for more on this let's bring in from washington former cruz campaign spokesman rick tyler and politico economics correspondent and cnbc contributor ben white. gentlemen, good morning to you both. >> good morning. >> ben, once again we're sort of left with the puzzle of why the market is, i wouldn't say rallying, but at least green in the face of an event like what we saw over the weekend.

why is that? >> well, i would think that, you know, this is obviously a concern that you have after an event like this people are nervous. but there hasn't been tremendous damage from it. we seem to have a target in mind, a person who it looks like is behind these attacks. and my guess is markets are anticipating the fed this week. the fed staying on hold, not raising interest rates, that's obviously good for markets. this is a disturbing event but not one that would shake markets. that's what we've seen so far. >> then of course we had the secretary speak a few moments ago, rick, in which she relies on an argument based on her experience. i know how to do this. i was in the situation room. of course the natural response is, well, what do we have to show for it after this weekend, right? >> yeah, i think that's the central argument. i watched her press conference and she competently delivered a confident and confidence message that in these situations she's been there before, she's been in the situation room, she's contributed to decision making that has led to the defeat of

terrorism. but at the same time isis really was an outgrowth of the one would argue the obama/clinton foreign policy. it did not exist before hillary clinton was secretary of state. that's not to say she's entirely responsible for it, but the middle east where terrorism has existed she certainly was at the head -- she was secretary of state during that time. i do think that she did focus on rightly and has not been enough is to counter these persuasive online social media networking that isis uses very effectively. effectively media companies recruiting and persuading people who like perhaps rahami will find out whether they were persuaded by those kinds of videos and became radicalized here in the united states. >> yeah, that intelligence surge that she talked about. ben, we do have the general assembly of the united nations

here in new york. it's a reminder that the u.s. relationships with other world leaders matter. who should secretary clinton and donald trump be focused on when it comes to the fight on terror, which is now front and center? >> right, well, certainly our allies in the middle east you'll see both of these candidates meeting with the egyptian leaders. and it's, you know, also across europe there's really no one among these world leaders at the u.n. who would not be beneficial for these presidential candidates to meet with to talk about our efforts to fight terrorism both domestically and abroad. but it's really critical for them to establish relations with other middle eastern leaders who are our partners in the war on terror and trying to stop these types of events in the united states. but i think what this shows us these bombings in new york is that this is an unsettled presidential race that is subject to outside shocks from here on out. you know, donald trump's

campaign is based in part on a message of cracking down on immigration, if it turns out this was indeed an afghani who immigrated to the united states fairly or unfairly, that plays into the trump narrative that we have to be tougher and crack down harder. i think secretary clinton did a fine job in her press conference, but she was slightly on the defensive there with questions saying doesn't this play into donald trump's narrative and message? and to a degree i think it does, and these things will continue to play out and debates will be critical. but we have an unstable and very close presidential race subject to outside influence. >> yeah. it's true. we're not talking about that birther controversy or that economic speech from literally just days ago. guys, we have to cut it short today. busy day as you understand. thanks so much ben white and rick tyler. and when we return, oracle ceo mark hurd. he'll talk earnings, the cloud, how the company is keeping up with competition and much more. with the dow up 89 points, much

more "squawk on the street" coming up. what powers the digital world? communication. like centurylink's broadband network that gives 35,000 fans a cutting edge game experience. or the network that keeps a leading hotel chain's guests connected at work, and at play. or the it platform that powers millions of ecards every day for one of the largest greeting card companies. businesses count on communication, and communication counts on centurylink. whyour boss?ork for? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird. with dand bold styling to to stay ahead of the curve...

the lexus rx, rx hybrid and rx f sport. this is the rx, elevated. this is the pursuit of perfection. this is my new alert system for whenever anything happens in the market. but thinkorswim already lets you create custom alerts for all the things that are important to you. i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. when a moment turns romantic, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and 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 it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours.

if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card.

take a look at where we are on stocks. off the highs of the day. got up to 131. the dow though still up about 90 points. that's half a percent. s&p up half a percent as well. carl, driven by financials, industrials, technology, it helps that oil prices are surging 2% rebounding from a tough week last week. >> oil's having about the highs of the session so far. vix remains somewhat muted below 15. nasdaq 100 new all-time intraday high. that got some attention. but, again, that leads us back to the narrative from last week that was tech is driving everything with the best week since may, all the gains due to apple and all that nvidia today adding some of the fuel to the fire. >> you also have some industries doing well like home builders for instance on the back of what was a better report on home builder confidence. we'll get more data on that housing front tomorrow, housing starts and then existing home sales later in the week. of course the build up to the big central bank decision from the fed on wednesday. we're also watching some

specific stocks like oracle. and with that we'll send it over to jon fortt at the oracle open world conference in san francisco today sitting down with a very special guest. jon. >> i am. thank you, sarah. here with me is oracle ceo mark hurd. we're getting deep this morning into oracle open world at a time when the cloud battles are as intense as ever. amazon took a shot at you guys specifically last year. they're trying to move into database. you guys have called them out this morning. tell me, what are the technology innovations that you guys are pushing this year to try to convince people that as larry ellison said yesterday, amazon's lead is over. talk about database, talk about the applications. >> jon, listen, a lot of stuff going on at this event. we have over 60,000 people here, so a lot of customers here. this is really going to be, jon, an extension of the strategy we've been talking about for several years. our cloud strategy has been to go all-in on the cloud.

we started with applications or what's called sas. last year we really focused on platform. platform as a service or pas. this year to your point and larry mentioned it last night focusing on infrastructure as a service, next generation suite of services and infrastructure. but it's also, again, an instruction of the entire strategy we've been working on for several years. >> what gives you confidence that you understand the rate at which new software license, which is a number that wall street likes to look at with you guys, the rate that that is sort of slowing down will continue to be outstripped by cloud growth. i believe your other ceo who we'll talk to tomorrow mentioned on the call that the dollar growth in cloud has now outstripped the dollar decline in new software license. are you confident that that rate of decline in new software license won't accelerate and that the rate of growth in cloud will? >> i would say, jon, just look at the numbers, right? so if you went several years ago

we made the decision as part of this overall strategy to go all-in on the cloud. we changed our organization to do that. we changed incentives to do that in addition to seeing a lot of great products. in q-1 our cloud growth in dollars combined with our new software license dollars grew 16%. so really to us it's the combination of those two that are important. and the fact cloud growth was so high -- i mean, we grew our cloud in q-1 82%. i just want to repeat that. we grew 82%. that is the seventh consecutive quarter where our growth rate has inclined. our growth rate. so our growth rate has been going up as our dollar size of our cloud has gotten bigger. when you combine that number with new software licenses, we have aggregate growth and that's been our strategy. >> how long is that going to continue, by the way? normally when the dollar amounts get bigger the growth rate comes down. do you have a sense based on where the inflection points are and at what point eventually it must and at what point that tops

out? >> well, if you look at our bookings numbers, which is probably a good indicator of what we described. our bookings numbers we're extremely booked more cloud bookings last year than anybody in the industry. we also predicted that our cloud bookings this year would be very strong for the entire year, not just q-1. which would indicate that you will see continued cloud growth for awhile. you got to understand, jon, for us it isn't just about the cloud itself. it's not a static thing. we continue to add more services, more products. your comment about infrastructure and larry's comments last night, we're adding more s.a.s. products. actually, not just more s.a.s. products but now localized in more countries. so we have more countries, more products and so we are -- it may not come across with all of my comments, we are really optimistic about our position in the cloud and our growing leadership in many of these services. >> you are a global business, as you mentioned. you serve governments. i know this is sensitive, but

national security and security issues on a lot of people's and investors minds this morning, is the technology in database, for example, getting better at a rate that it's rate that it's going to be easier to catch the bad guys no matter what government you're serving, what country you're talking about, when we have in a sense like we did in new york and new jersey over the weekend? >> well, first, we try to help in every way that we can. but really when you look at it, security continues to improve in the databases itself, performance continues to improve in database, analytics continue to improve in database and all those become the necessary parts of helping that effort that you describe. >> talk to me about artificial intelligence, because that's one of the big topics in enterprise these days. your frenemy tried to steal thunder by introducing a couple days ago, what's oracle's approach to applying that technology to the cloud?

>> as larry talked about last night and referring to his keynote last night, where he released a number of products, we talk not just about a.i., but really about machine-to-machine learning and the application of that directly with our existing services, so with many of our applications, you'll actually see some of the user interface work change. you're holding the device in your hand and i think, you know, five years from now, ten years from now, people will be looking back at us punching on a piece of glass and wondering exactly what all of us were doing. this has an opportunity through text and voice to do some of the things you see in consumer in enterprise applications, so you could literally ask about your pay, your position, order something through procurement, all through machine-to-machine pattern matching, and that's what machine-to-machine is, it's really pattern matching. >> you announced the acquisition of alera, which has to do with security in the cloud. they also service some other customers, including microsoft.

how much of your strategy when you look at acquisitions and technology you want, is vertical, how much of it has to do with service and customers, no matter which cloud you're using? >> it really is the latter. we have all of our oracle technologies in our cloud, but i think as l industry, in fact in my keynote i'll talk about the fact i don't think you'll see customers wanting to deal with hoe clouds or 50 clouds, i think it will be a few. therefore, in our cloud we have to keep lots of technologies available to our customers, so if you go to the oracle cloud, you won't find java, you'll find java script, python, groovy, all sorts of capabilities because the customer doesn't want to go to another cloud and another cloud to get things done, so you'll see a suite of capabilities in the oracle cloud. >> i wonder this, which of the enterprise players has what it takes to really survive and thrive, you're going to say oracle, i know, amazon is the

leader, microsoft? >> they are all a little different. >> ibm? >> i appreciate the opportunity. i think really the realities are all a little different. what oracle is doing different from any of the companies you've really mentioned is, our strategy is really a whole suite of capabilities at the sass application layer, platform layer, and infrastructure layer. long run, we believe suites will win. suites are best to breed capabilities. we think we're in the best position to take advantage of that. time will have to tell as who emerges as our closest competitor. >> not taking the shot. mark hurd first on cnbc. back to you guys in new york. >> all right, john, thank you. certainly is getting competitive there with the cloud wars. we're keeping an eye on this market, dow up 92 points off the highs, still higher to start the week. stocks managed to gain last week, just barely, even though they sold off on friday. s&p 500 up half a percent.

much more ahead on "squawk on the street". narrator: the best place to find adventure... kubo: come on, this way. narrator: ...is in the forest. kubo: wow. narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: it's beautiful. narrator: visit discovertheforest.org to find the closest forest or park to you.

great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business.

climbing the wall of worries, stocks rally here on a monday with the dow up nearly 90 points despite new fears of terrorism and uncertain political future for this country and, of course, a big central bank meeting with the fed and the bank of japan on wednesday. financials, one of the hardest hit groups last week, are leading this rally. industrials and energy coming in two and three. much more ahead. "squawk alley" coming next. that's why so many innovators are on the ibm cloud. like refinery 29, with nearly a billion views a year. or runkeeper, a training app used by over 50 million runners. or game developers whose popularity depends on launching new updates fast. helping to keep a company's success uncomplicated - that's what the ibm cloud is built for.

ok, so we drowned the fire...o keep a company's success uncompyep.ted - stirred it... mm-hmm. drowned it again... mm-hmm. and now just feel if it's cold. yeah. cool.

[camera shutter clicks] [whistling a tune] smokey just gave me a bear hug. i know. i already posted it. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet?

good monday morning, welcome to "squawk alley," i'm carl quintanilla with kayla toushy, john ford also with us from san francisco. we're going to begin with the latest on the bombings in new york and new jersey over the weekend. police and federal agents now searching for a suspect. our morgan brennan is live with the latest. good morning again, morgan. >> reporter: good morning, carl. so the man hunt is very under wayrahami, a 28-year-old male from elizabeth, new jersey, who the fbi considers armed and dangerous. he's believed to be operating a 2003 blue honda civic with new jersey registration, license plate d 63 ey