 Hey, good Monday morning everyone. We are on the floor of the New York Stock Exchange with Jim Cramer to talk about the markets and Jim Hurricane Irma still wrecking havoc on Florida. In real money you have a lot of stock plays for us. Yeah, and I'm going to continue to hammer this home. One of the things that's really interesting about this market scope is that stocks go down on bad news. And then when the bad news doesn't occur or you get good news they go up more than they fell. True bull market action. You take a look at it travelers which doesn't even write property casually in Florida. It went down a great deal. And then it shoots up very big. Where I'm going here is that you've got a separate entity like an insurance company that suddenly takes the role of the federal government. The states take the role of the federal government. We're so focused on the federal government and what it does, what we don't realize is both the states and the insurance companies will present a tremendous amount of money for the consumer which means that you can sell stocks like a Home Depot today but you better start buying them down the road. Road building stocks coming in today again because Irma wasn't that bad. These are mistaken way of viewing things. What we have is we have a market that is very forgiving and when the worst doesn't happen you get a very nice up move. This is true bull market action and I think people have to recognize particularly those who sell this market short that the market has very little patience with short sellers. You sell the insurers down and then boom they go right back up. You sell the retailers down. They no longer look at the Coles, TJ Maxx. They no longer go down the way that they did. You sell let's say with the exception of say Kroger in certain areas but you sell a 3M down off of North Korea. North Korea doesn't happen. 3M goes up more. You sell a tech down off of tech data and then land research comes back. Applied materials come back. Micron comes back. Autodesk comes back. Adobe comes back. These are remarkable moves and I think that it's all obscured by a sense that nothing good is happening. The market is very much out of sync with what people think it should be thinking about. The market has its own tune and the tune is earnings and the earnings can be very good. You mentioned road building stocks. It's sort of an interesting time for Caterpillar to have its analysts day tomorrow. Yeah, and you know Caterpillar has a lot of anticipation. There's the Apple launch, there's the Caterpillar analyst meeting, there's the Goldman Sachs talk. All this is again bull market action. People are buying these stocks ahead. Now that usually means that they will come down tomorrow. Would that shock me? No. But once again what happens is they go down and then people say, oh, an opportunity. So this is a very opportunity driven market. I haven't seen a market like this in a very long time. And would you put United Rentals in the similar boat as Caterpillar? United Rentals has run up very big so it sells off but the fact is the estimates are probably too low for United Rentals. Mike Nealon having made an acquisition right before the storm in Houston that is going to benefit. Now they don't use Caterpillar but they have a model that's really designed for short term borrowing of equipment. Well it's not exactly what a hurricane can provoke. Well and in real money you also make this point that this could have good implications for the auto sector. Does this change your view of auto stocks? Yes it does because and the reason why it does is so people understand is that there may not be flood insurance that's anything other than the federal government. But everybody has auto insurance and there's hundreds of thousands of cars. So you're going to get a check from a good insurer that will make good and you're going to go out and buy a new car. Now you can say well wait a second that's a temporary bump. Well this market again plays the temporary bump and plays it in a positive way. Alright I say this all the time. Required reading on RealMoney.com. Jim let's move on to Apple. You mentioned it earlier. Are expectations too high heading into this event? The Apple is the stock you should own not trade but the traders are out in full force and I like to be against the traders. Traders who take it up are short-sighted because they're going to then try to blow it out into buyers tomorrow. When people see that the longer charge, the charge life, the OLED, I've been in favor of universal display and then sellers come in. And this is a game that I don't want anyone watching to play. If you want to buy Apple to invest in it tomorrow's the day when they sell it down or maybe Wednesday. There are reports saying the iPhone could cost a thousand dollars. Is that a problem in your view? It's a problem in some countries. It's certainly not a problem in this country where people don't even seem to know how much they pay. Yeah it's interesting I have the 7. I love the 7. My wife has the 7 plus. We watch a lot of things on the 7 plus which is extraordinary but it's a big screen. And having just bought the 7 a year ago I'm going to take a hard look at the 8 but anyone who has the 5 or 6 I think it's going to upgrade to the 8 or the anniversary phone whatever you want to call it. And the reason why is there's been rather dramatic increase in power and speed and photos. And I know there are a lot of people who think that Apple hasn't innovated. Where they're making the big mistake is that the innovation's taking place within the phone. It's almost as if people say unless Apple develops a transponder, beam me up Scotty. Apple's done nothing or a car that is run on water. But what I would tell you is the devices become more miraculous and more miraculous. And that's really what's driving the stock. I have Procter & Gamble on tonight. And Procter & Gamble developed the POT for Tide. And that was actually a radical innovation and a lot of people use it. That was a very revolutionary device. Now Apple is doing evolutionary devices. But if you look at the 5 versus the 8, it's revolutionary. And Jim, you have David Taylor on it. Such an important time, especially with Nelson Pelt and all this drama. Well they have another note out today. And I think that the tone of it is now, wait a second. David Taylor has done X in the last two years. He's done a remarkable job. What's try and done? And again, there's a lot of trickery with time frame. And I don't mean trickery being fraud. It's just that you can look at a time frame and say that Procter's underperform for the last decade. Or you can look at a time frame and say Procter's done an unbelievable job since Taylor came in. You can look at the incredible work that Tryon's done. Or you can say, well wait a second. Tryon, the last few things they did are general electric. Not so good. And what I am saying is that you decide. There's a blue card and a white card. Blue card's Procter, white card's Tryon. Both sides have very compelling stories. And I just want you to know which way. I will come back and say that my loyalty to Procter has to do with 61 years of increases of dividends. It was the stock that I recommended the most at Goldman Sachs. So it's very hard for me to ever say, wait a second. It's doing a really poor job. It did have a period where it was doing a poor job, which is certainly within Peltz's purview. But it's got a period where it's doing a very good job, which is Taylor's purview. It depends on your time frame. It depends on your belief of the need for change or whether they're already making change. Last week Mr. Peltz had a lot of time on Squawk on the street talking about his view. This will be Mr. Taylor's chance to talk about his view. Not to go on too much of a tangent, but are there parallels between this and ADP Ackman? Well, I don't know. Ackman does kind of a surprise attack on a company that's done quite well. Peltz has a very thoughtful analysis that's going on for some time. And he's asking for a seat, not revolutionary things to do. He wants to bring back the person whose seat he takes. He's not trying to replace the CEO. He's not trying to break up the company. Ackman's a bomb thrower who makes some good points, frankly, about automatic data and where they are technologically. But Mr. Peltz is much more nuanced and I think in many ways a constructive versus, let's just say, adversarial. Okay, we look forward to your interview tonight. 6 p.m. Mad Money. Archim, I want to move on to Facebook. There was a report that they may spend $1 billion on original content. I think Facebook and there's also a note about Alphabet's YouTube. I think that the challenge that the major networks actually own Facebook and Alphabet, we also own Comcast. The challenge to the traditional purveyors continues. The challenge to other purveyors, whether it be Snap and Twitter, continues. And there's a note out of Downgrade today on Snap that's pretty effective. But what I would say is that Facebook has almost no gross margin pressure because you developed the content. Now they're going to give you one more reason to own it. They got a lot of cash. So I would emphasize another reason to own Facebook. It remains a core position for action alerts. Any implications for Amazon which reportedly they want their own Game of Thrones type head? There's plenty of room for everybody. Now Amazon and Netflix tend to do well anytime you have shut it. Shut it in Houston, shut it in Florida, something to do. And Amazon never loses to customers apparently that go and buy it. There was a very tough Kroger quarter last week which was then again indicative of Amazon. Amazon is changing the world. Facebook is changing the world. And Netflix is changing the world. I mean there's a reason why Fang is Fang is where I'm going toward. These are companies that are very forward looking. Very not just millennial but for the generation even after millennials. And everyone else playing catch up. You briefly mentioned GE earlier. Deutsche Bank now has a new, or reiterating their sell rating. Can you update us on your GE? GE is very troubled because I've made a mistake in GE you know, and I think you can talk about how we have Facebook and Alphabet if you don't talk about GE. Newell Rubbermaid, we've done now Newell company. We've done bad keeping just a little bit of that but GE's been a mistake. And the reason why GE's been a mistake is that we keep finding that the hand that Jeff Emell gave Mr. Flannery is so flawed that Flannery can cut costs and cut costs and cut costs. But the nuance here is that the dividend remains a priority. That's different from the dividend is invalid. So I think people have to understand the reason why the stock's going down is because it does appear to be a value trap. We're going to hold on to it. Taking a long term view that Flannery would do a good job. But it was a mistake to hold on to it from where we have. And one of the things I like to do with Action Alerts is admit to mistakes. I find that most people in our business don't admit to mistakes and therefore you can't learn from them. Our mistake was believing that the situation with GE was better than Mr. Flannery got. And a lot of that is because I think that the company always told you it was better. And I felt prey to that. And it just shows you when you place an overemphasis on what a company is saying versus the work that was very fine by Georgia Bank, by J.P. Morgan, then you can run afoul. I was not skeptical enough and that is the lesson. We have a conference call this week on Action Alerts and I will talk about this. I think talking about mistakes is the single greatest thing I can do. And the reason I can do that is because I have confidence enough based on buying my first stock in 1979 to admit what mistakes I've made and I tell them to the club because it is a club. And it's such a key part of investing as well. Jim, I do want to acknowledge the 16th anniversary of 9-11. Obviously a very somber day here on the floor. I did a special last year on which we'll run at midnight tonight at 9 p.m. of Pacific CNBC. I was down here, but you know what? It's funny. They've done the rebuild. You walk by it. And it's great that they did a rebuild, but there is a museum there that people must go to. And there are people who are born after it who don't seem to know. I wish it were mandatory. When I was growing up in Philadelphia, we had to go to the Franklin Institute, which was fabulous. We had to go to the Art Museum. I think that there should be a pilgrimage to this museum so that people don't forget. I remember my father explaining to me why he volunteered after Pearl Harbor. And I think that it's a very similar situation. I often find that words are trivial versus what happened. And that's why the museum is more important than anything I have to say. I was down here. You know, it's funny. I was down here. And the world went black when the towers fell. It was just black, and we were where the street is before Team Wall Street. But you know what? We were safe. And the fire department was terrific, and they let us out. And there's just a big difference between whether you were in those buildings or the rest of the world. And you just have to remember, and you have to teach. And it's our job to do that. It's our job to teach, because the world changed. And I don't think people realize how much the world changed since then. There's a particular room. There's two rooms that are... Actually, there's three rooms in the museum that are incredible. There's the one about right before what the world was like right before the first towers hit. There's a room that you cannot take children to, which is the jumper room. And then there's a room where you can look up the people who died. From some in New Jersey, and we were particularly... We were a community that really had an inordinate number of people, because we're downtown. It's easy to go from some to downtown. And these are musts, and that's why I say this is not an ordinary museum. I just wish everybody in the country had to go there. Well said, and some powerful words. Jim Cramer, thank you so much. Thank you.