Transcripts For CNBC Power Lunch 20160919

To a 100 chance they dont raise rates on wednesday. Were going to dig in. Either way, among the biggest winners of the s p 500 right now, michael kors and general motors. Well get more on gm later on in the show. Welcome to power lunch. Im tyler imagimathisen. Here is what is happening on this busy news day. Were awaiting a News Conference from the new York City Police commissioner. New york city mayor. And the u. S. Attorney for the Southern District of new york. Following this weekends bombing. We will bring that to you as soon as it begins. We will cover it live at roughly half past the hour. Home Builder Sentiment to its highest level in nearly a year today. Good signs there. Aaa putting the National Average for a gallon of gasoline at 2. 20. That is down 9 cents from a year ago. We begin with the latest in the tristate area bombings. And our own Morgan Brennan with the latest details. So the suspect in these bombings in new york and new jersey is in custody just four hours after the fbi issued a wanted poster of ahmad khan rahami. That arrest being made. New details emerging about how that capture took place. Rahami pulled a handgun on an officer in linden, new jersey, he had been sleeping in a doorway, he shot the officer who was wearing a bulletproof vest in the abdomen before indiscriminately firing at passing vehicles as more officers arrived on the scene. Captain james sarniki saying the suspect, rahami, was shot before being taken down to the ground, but he had been conscious at the time of arrest. Now, here on 23rd street in manhattan, where a Pressure Cooker device exploded on saturday night, the fbi had been on has been on the scene today, still here, sweeping for evidence, and just a little while ago, removing the green dumpster in which that bomb had detonated. So were expecting more details on all of this at a briefing with new york city mayor bill de blasio, nypd commissioner jimmy oneil and u. S. Attorney pri prikh barara. That has not started yet. Well bring you the headlines as they come. Back over to you. Do we know anything about the condition of the officers, two were struck, are their wounds life threatening or do you know . Still getting a lot of details, but we do know from our from nbc is that both had still been alive, but i have to get more details before i start speaking on that. All right. Good to say nothing when you dont have the absolute details there in front of you. Morgan, thank you. Moving on, how did authorities find this suspect so quickly . Joining us is mike barrett, with the center for Homeland Security and resilience. He was the former director of strategy for the Homeland Security council. Good to have you with us. How did they do it so quickly . One of the things we have done, we have invested a tremendous amount of money in training and equipment since 9 11. And people often, you see news stories, are we getting anything for it . We are. We built out fusion centers, we have this model called intelligence led policing, we have networks with the joint Terrorism Task force talking to the state and locals extremely well. Were integrated at a rapid response. Thats what you see here. Textbook rapid response. How do we get ahead of this and stop the events from happening before they take place . In other words, were good at response, but maybe need to concentrate more if possible on prevention. What were the key clues here that led to this suspect . Well, here, you know, it is Pretty Amazing actually this guy had really terrible look. The race didnt start on time, didnt have any casualties there in new jersey. And also the rice cooker, Pressure Cooker bomb, the second one did not detonate. Because that didnt detonate, there is a whole slew of things like the cell phone itself, the sim card, fingerprints, any number of pieces of electronic data we can pull. And in an after an event, when we can pull data, there is lots of databases to run it against. Were not good at collecting data in advance of a event because people are worried about other conflicting priorities. Talk about that, why are we less good at collecting data in advance . You mentioned snowden and the hesitance then for intelligence agencies to tap some of the electronic fingerprints that might lead us to places. Exactly. So im a former intelligence officer. In the military and first thing i would tell you is i need the data. If i dont have the baseline, i dont are anything to check against. Im looking for patterns. Might have found this guy had a smaller decreasing size social network of friends, things like that. He had spent the last month really going off line. You can pick up traces and indications like that, it is the kind of surveillance and pattern analysis we do with our overseas intelligence all the time in this country. But domestically we have decided to selflimit ourselves. We decided to not collect that data. Thats a fair and legitimate debate. It needs to be had again given the rise of tremendous home grown threats. But, mike, that assumes you already zeroed in on somebody, like this guy and you can actually figure out hes narrowing his Social Circle and how about when youre just sort of you dont necessarily have an idea, how do you for Law Enforcement, how do you deem certain people likely to commit such acts and worthy of this sort of surveillance . So this is where we use metadata and artificial intelligence. This is not a human being sitting there looking at it and saying, i see a change. There is way too much data to do that on. You can have a situation where you have artificial intelligence, screening the connections, which youtube videos are watched, these days most of the suspects were worried about are communicating on encrypted devices but you can know that people are switched from an open communication channel to an encrypted device, things like that. Not going after the content until you put together a full pattern, Digital Pattern of life, that would indicate this person is an actual suspect you would want to look at more closely. But the thing is, were not allowing ourselves to get those tippers. We have to wait until something happens to get the tip that now we want to go where did this guy live who were his friends, who did you make phone calls to . We had no ability to do pattern analysis in advance because were not allowing ourselves to use the tuth we buiechnology we. We talked about this being potentially the part of a broader scheme, but, you know, lets back up a bit. This is a gentleman who in 2011 with his father and brother filed a lawsuit against the city of elizabeth, alleging basically discrimination over their Fried Chicken restaurant. That somebody made a complaint about it, we noticed that the bombs as you noted were not particularly sophisticated. What are the odds were going to find out that this gentleman was not part of some bigger cell, but just an angry guy who had filed complaints against the police and a neighbor recently, filed a lawsuit five years ago, and was just sort of a solitary angry guy . Sure, it is increasingly looking that guy. I would say the initial thought was thats a lot of bombs for one individual to make without any assistance whatsoever. I definitely dont think this is a situation where hes directed from abroad. Hes selfradicalized. The question is did he have one or two or three people helping him get the equipment and dropping off the bombs in one or two places. If it is a cell, it is a small cell, this is not i dont think even analogous to the things we have seen in europe where you had highly trained folks with real weapons expertise and tactical knowledge. We clearly dont see that in his modus operandi. We cant get weak and think because this guy didnt have it, the next one wont. One of my big concerns involved chemical, biological and radiological weapons because the same information is out there, how to acquire the materials and create dirty bombs and the like. Im not saying dont be vigilant and dont be concerned. We, to your point, as somebody who goes to seaside regularly, which is a sleepy beach town, we got very, very lucky. I guess what im trying to say, mike, is do we find perhaps some comfort in the fact that it may look increasingly like this was just one or maybe one or two angry guys, maybe mad at a localized situation, and not part of a broader cell, if you will . I do think that in the narrow confines of this case, we can say i dont think it is a larger cell, i dont think well see, for example, any follow on attacks from this particular group. But just like we saw in San Bernardino and like we saw in orlando where the body counts were much, much higher, those were also small, affected, disaffected, isolated groups. So unfortunately this is going to be part of the face of terror Going Forward. The concern that i have is that we overfocus on some amateur hour pretty much local Law Enforcement type problems and we dont do some of the other types of collection and preparedness that, you know, frankly i think is what were going to need if the enemy gets their act together. We appreciate your time. Thank you. Mike barrett with the center for Homeland Security and resilience. Go pro shares up today, down 55 in the past year. Will go pros new drone help move the stock higher. Nick woodman stops by live on power lunch. Thats next. Ent selling guys. What are we gonna do . How about we pump more into promotions . Nah. What else . What if we hire more sales reps . Nah. What else . What if we digitize the whole supply chain . So people can customize their bike before they buy it. That worked better than expected. Ill dial it back. Yeah, dial it back. Just a little. Live business, powered by sap. When you run live, you run simple. Waiter heres your check. Oh youyou got it. You know, since i got rid of my car, i really enjoy walking. Ok. Got it . No, im good. Announcer getting pulled over for buzzed driving could cost you around 10,000 in fines, legal fees, and increased insurance rates. Oh, youre home early. You live with your mom . Announcer thatll set your game back a few years. Buzzed, busted, and broke because buzzed driving is drunk driving. Go pro heading sky high with the new drone called karma. The new product, can it help the stock fly even higher . Shares are up 6 today. Down by 54 over the past one year. Lets head to lake tahoe. Josh lipton joined by the ceo of go pro. So you just got off stage. Lets start with the new drone, karma, 799. Why are you confident that you can compete and win in this market . What is the technology . What is the innovation that will make your drone really stand apart from the competition . Well, as i shared in the presentation, karma is so much more than a drone. Yes, it is a drone, but it is also handheld stabilization because the stabilizer comes out of the drone and plugs into a hand grip so you can film your family as youre chasing around the park or at the beach. And it also all fits into a backpack that you can wear during almost any activity. So what we say is it is really a hollywood caliber stabilization system and backpack for 799 bucks and will help you capture your life and make it look more beautiful than youve ever seen it. Your investor, will want to know, listen, can you sell a lot of the drones . Can you do big volume with high margins . How do you respond to that . I think karma is the most exciting addition to go pros product lineup. I think it is the most exciting product we have ever made. Certainly the most enabling product in terms of helping people capture incredible professional quality footage of their lives. And share stories like theyre used to seeing on the big screen at the movies. So given that thats what go pros brand has been built on, i think karma has a good shot at being successful. And, you talk about this consumer drone market, a 1 billion market by next year. But some analysts say, listen, they look at dji, say thats a company with tremendous resources, has great products, but youre optimistic you can take share there . Yeah, go pro is one of the strongest brands in the world. And people buy a go pro to help capture and share their lives in a stunning unique way. Perspectives that truly capture the experience as though youre reliving it and karma takes that to the next level. And karma is one part of the overall go pro solution. Were now an end to end storytelling solution. At the beginning is capture with a camera and, yes, with camera, air on the ground. With our new software, cloud syncing, hero 5 cameras and making it easy for customers to access and edit content on the go with the quick app on mobile, go pro is really a complete storytelling solution that the whole company is much more than a drone. Melissa, i think you had a question for nick. Yeah, nick, you were touting the ability of taking the drone and using it by hand, so you can follow around your family in addition to flying the thing. Are you worried about cannibalization with the rest of your product line that people out to buy this drone and not buy other go pro cameras . No, because you still plug a go pro, hero 5 session or hero 5 black into karma. Karma is compatible with hero 5 and hero 4 cameras, also backwards compatible. So all of our customers, new and previous, can enjoy karma. So karma is really complementary to go pros Product Offering and in no way can it be cannibalistic. How do you view your market . The concern is that you guys tease this karma drone back in may 15, been delayed, delayed again and here you are releasing it in the fall. At this point, how big is that market given other drones have already been out there, how do you view people who already have drones . Are they potential go pro customers you got to steal . I think that karma definitely will bring in new customers to go pro. And there is no question that karma is an incredibly powerful solution for existing customers, whether theyre consumers or professionals producing content for film and television. Karma is simply the best solution out there for stabilization in the air or handheld or mounted to your favorite gear and go pro is the only company in the world making this solution possible. I think were in a really good position. Besides the drone, you im sorry. Go ahead, ask your question. Ill follow. Nick, let me ask you, we talked about the drone, right . You also introduced the new line of cameras. There is concern that when we talk about the go pro camera, there is saturation, that if you want a go pro, you already have one. How do you respond to that . As we shared on investor calls and this is public information, sell through retail is strong, meaning that our retailers, best buy, walmart, the local surf shop, are continuing to sell large volumes of go pro cameras. The argument that demand is waning just simply isnt true. And that is sales of go pros that are 2 years old. With the introduction of hero 5, our new flagship and the fact that hero 5 can auto offload your content, your new photos and videos to the cloud, to go pro plus and now access that content on your phone and make an edit on the go, thats a new experience that is not possible with hero 4 and older go pros, so we expect our existing community and new customers to be really excited about what we have got for them. So, nick, explain to me about what i get when i buy this karma. Do i get a new camera . Can i use my old go pro im happy with and fit it on this camera . And what if any clearances do i need from the faa or anybody else to be able to use and operate this device in urban areas, particularly . Sure. So karma is 799. And it is for the drone, the removable stabilizer, the grip, the controller, and everything you need to use karma in a backpack that you can wear during almost any activity, that package without a camera is 799. If you want to bundle it with a hero 5 camera, hero 5 session bundle is 999 and hero 5 black bundle is 1,999. There is a ton of value there for the consumer. Karma is compatible with hero 4 cameras. If you own either of those cameras, it will cost you only 799. In terms of consumers being able to fly, there are safety regulations that consumers need to abide by and professionals can fly if they have a license, it is straightforward and i think consumers will have a great time with it. Nick, lots of new products and services. Thank you. Back to you guys. Thanks to josh and to nick woodman. Up next, a big victory for one biotech investor who nailed his call on sarepta. That stock is up 89 . Look at all 11, yes, 11 sectors on the s p 500. Reits today trading on their own as a group. Power lunch is back in two. When a moment turns romantic, why pause to take a pill . Or stop to find a bathroom . 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I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. Intenselyflavored. Colorfullydiverse. Beautifullymisshapen. Cultivated for generations, its the unexpected hero of any dish. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients. Stepbysteprecipes. Delivered to your door, for less than 9 a meal. Get 30 off your first delivery blueapron. Com cook. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Welcome back to power lunch. Were waiting for new york officials including the mayor, Police Commissioner and the federal u. S. Attorney for the Southern District of new york to hold a press conference in new york city on the new york and new jersey bombings. And the apprehension of a suspect in that case. Brian . Lets get back to the markets and your money. Bob pisani at the new york stock exchange. A lot going on today outside of the world of economics and stock market, but we cannot forget that we are now 48 hours away from the fed meeting and that will start to, i would imagine, dominate the conversation from here on out, at least as far as what we do goes. Dominating for a week now. There is the fomc drift, tendency for the market to go up. Look at the s p 500 having an upday and gave up all the gains that happened around noon. Richard fisher was on air. He said the fed will likely tweak the language but doesnt think theyll necessarily move. I dont think that was market moving. What was market moving was oil. Oil was up throughout the day, hopes of yet again another Production Cut out of opec, heaven knows if that will happen. Crude dropped around noon time and i think that took the overall market down with it as well. If we look at tech stocks, another potential culprit, they have a great day, tech index up about 1 . Dropped about midday and then midmorning around noon just fell out of bed again, apple, another problem. Apple negative also around that time. Lets blame this on crude oil dropping a dropping. We have an 11th member of the s p 500, you know that, Real Estate Investment trusts are now the 11th sector. Back to you. I understand were going to go to bob, thank you very much. To this press briefing in new york city where various officials will be discussing the apprehension of a suspect in the bombings over the weekend. Manhattans d. A. Office, john miller and bill sweeney from the fbi. It has been an extremely busy to days. And many people have worked intensely, tirelessly, relentlessly and seamlessly in this investigation into the bombings that occurred in new york city and new jersey. It came out successful. So today our efforts were successful thanks to the Brave Police Officers from the linden, new jersey, Police Department, they captured this dangerous individual, ahmad khan rahami. In doing so, we had two Police Officers that were injured out in linden, new jersey. And i wish their best and hopefully a speedy recovery. This is another example of what Law Enforcement does every day. They put themselves in harms way to protect others regardless of the risks. This all started on saturday. I went down to that scene on 23rd street, see the devastation from the blast, and the response by not only nypd, by the fbi, the atf, fire department, ems, port authority, the state police, they went they all went to the danger and from my first day on the job, my first day on this job, but certainly not my first day on the job, so proud of what i saw that day, the work that was done, and how it was done together. All the agencies just the level of cooperation was impressive. With were joined today, as i said, by the assistant director in charge of the new york fbi office, bill sweeney, give you details about the investigation. You need to understand that this case is very much active, still very much active. Our primary focus has been to identify and apprehend a person responsible for these crimes. Now that we have this suspect in custody, the investigation can focus on other aspects. Such as whether this individual acted alone and what his motivations may have been. So before turning this over to mayor de blasio, i want to offer my personal thanks to everyone who worked so exceptionally in bringing this individual to justice. It is a pretty tough way to start my new position as Police Commissioner. As ive always been so proud to be a member of this agency of the new York City Police department. Mr. Mayor . Thank you very much, mr. Commissioner. I want to also say our First Responders from the very beginning of this situation performed with extraordinary skill and courage. Nypd and all other city agencies, state partners, federal partners, i want to thank them all. I also share deep concern for the two officers in new jersey and were hoping they will have a very speedy recovery. This is a situation where we have rapidly unfolding information, youre going to hear some from us now, im sure there will be more to say in the coming days. As per usual, some things were not going to be able to talk about. I want to also note up front i received a call a few hours ago from president obama, he wanted me to tell the people of new york city how much he admires the resilience of new york city, how our people handled this crisis from moment one, with strength and resilience and so impressive that people are back to business yesterday and today. In addition, the president offered his congratulations to the First Responders for all they had done. We have, as i said, a lot more information that is coming in all the time. We have so much more information than we even had a few hours ago. Based on the information we have now, we have every reason to believe this was an act of terror. We will be going into some detail and there is still a long investigation ahead, but now we have, as i said, every reason to believe this was an act of terror. In addition, want to note that because this is an ongoing investigation, all new yorkers should remain vigilant. At any given point, new yorkers may find a piece of information, hear a conversation, see something that could very much aid the nypd, fbi and partners. Want all new yorkers to be vigilant and provide that information if you get it at any given point in time. Reminder, call 1800577tips with any information you have. We activated earlier today a messaging system used by our office of Emergency Management that allowed us to get information out to all new yorkers across the board. And it had an extraordinary effect, reached many people in the metropolitan area able to reach all of our Police Officers simultaneously because of the technology they have now as well. That is something that proved to be very helpful in this instance, getting that message out, broadly putting everyone on alert in a mutual way. There is still information that well need Going Forward. I want people to be patient because it will be an ongoing investigation. I want people to be vigilant and finally as i said, even though this suspect is apprehended, i said over the last 24 hours, we will have a very strong and visible nypd presence because of this incident and because of the United Nations general assembly. Youll continue to see throughout the week a strong visible nypd presence, especially from our Critical Response expand, our response group, youll see heavily trained officers and well armed officers. Youll see people in our officers in the subway. Youll see bags being checked. Bomb sniffing dogs. That will continue throughout the week. And we want that high level of readiness, of course, from the nypd. I ask all new yorkers to continue your vigilance, continue to share information with Law Enforcement. And wasnt to thank assistant director sweeney for the exceptional work and the great cooperation of the fbi in this matter. Thank you. Thank you, sir. Good afternoon. Since the last briefing we provided you yesterday, hundreds of personnel from the new york and newark, new jersey, jttfs with the nypd Detective Bureau have been working around the clock tracking leads, employing sophisticated investigative techniques and executing searches. Based on our evidence collect and supported by other analysis, the jttfs focused on ahmad khan rahami, working on his possible location for surveillance. Last night, the jttf conducted a traffic stop of a vehicle near the verrazano bridge in brooklyn. That vehicle was observed at a location associated with rahami. Based on the totality of circumstances, the jttf executed a stop of that vehicle. The passengers in the car were questioned by jttf agents and detectives. No one in that car is under arrest. Based on our evidence collection, supported by other analysis, searches and interviews were conducted at residences in elizabeth, new jersey, and in perth, amboy, new jersey. Additional leads were followed as well and we turn to the public for assistance and initially using a more recent photo of rahami. A short time ago, as you know, rahami was arrested in linden, new jersey. Two Police Officers were injured while apprehending him and our thoughts are with them and their quick recovery. We will ensure we completely understand rahamis social network. For that reason, i do not plan to answer specific questions about our techniques, or our knowledge of the devices other than that we have directly linked rahami to devices from new york and from saturday in new jersey. The work of the First Responders, Law Enforcement personnel, and the contributions of an engaged public have been exceptional. Thank you. [ inaudible ] so obviously a lot has happened over the last 40 or so hours. I want to add my comments to those of the people sitting behind me. Condolences to the officers and the victims in new york. I believe there will be a charge based on the shooting of the officers in linden, new jersey, by the local prosecutor in union county. While that is pending and the defendant is being held, you can expect that the u. S. Attorneys office here, perhaps u. S. Attorneys office in new jersey, will be working to put together as comprehensive and thorough a collection of allegations as makes sense. Were not rushing against each other to bring charges. We have been all racing together to try to catch the perpetrator here and thats now been done. Were going to take a lot of care and time to make sure if we bring charges federally in the Manhattan District Court that we do it in a way that is careful and thorough. Thanks. Do you have any knowledge [ inaudible ] we have no knowledge with the investigation continuing. Are you ruling out last night [ inaudible ] were not ruling anything ou out. Were absolutely not ruling anything out. Who was in that car . Im not going to comment on that. [ inaudible ] can you speak to if there are cells under investigation . [ inaudible ] sure, the question about cells. I have no indication there is a cell operating in the area or in the city. The investigation is on going. So as we develop more information, we continue to go. I have no indication there is a cell operating here. [ inaudible ] i believe it was the help. I dont know that for fact myself. But i believe thats what initiated the call to the linden pd. You have to confirm that with new jersey. [ inaudible ] no, i dont have any information on that at all yet. For the fbi a lot of money into sophisticated like this. What are you able to do with surveillance cameras [ inaudible ] i wont comment on the types of tools we use, other to say the tools in the city are fabulous. Theyre exceptional. Theyre necessary. I leave the other comments to the commissioner. So a lot of technology involved in this, but a lot of good oldfashioned police work too. Between the fbi and the nypd, members of the joint terrific task force this is a quick turn around. This happened 50 hours ago and we have our suspect in custody. I think it is a tremendous job by all involved. I think the alert system is very helpful to Police Department and the fbi. And this and other instances also. It is that sense of shared responsibility. 36,000 of us, a number of fbi agents, if we get everybody in the city engaged in helping to keep it safe, this is the way to go, this is the future. Dean . The Pressure Cooker, how significant was that in terms of gaining information, not having to explode it yesterday, but what did you gain from that Pressure Cooker and was there anybody that helped you with it . I wont comment specifically on something from the Pressure Cooker that led us somewhere. Any piece of evidence that we obtained with whether a piece, a fragment, something whole, is worthwhile. I would leave it at that. Was there anything significant about [ inaudible ] thats all going to be part of the investigation. We dont know the motivation yet. This is going to be part of as we go forward here. [ inaudible ] doo you believe there are any other bombers or bombs bill . I dont have information were actively looking for any kind of device at all, but we keep all options open and the investigation is ongoing. There is nothing to indicate that currently he was on our radar, we had a report of a domestic incident some time ago. That was the allegations were recanted and i dont have any other information. Well keep digging. Was Governor Cuomo invited here and are you working with him and [ inaudible ] yes, he was invited. Yes, were working with him. We got together at the site yesterday and spoke to folks in the community. A lot of close coordination with the state, with the federal government, et cetera. And i think were all you can see the results of this kind of combined effort and as the commissioner said, including the people very deeply in helping us get to the solution here has made a huge difference. High level coordination. Why you can ask his team about that. [ inaudible ] the question about radicalization, i do not have information yet to show what the path of radicalization was. Your first question was about a record. To be honest, i currently do not recall what i read on the record. I would have to get back to you. Donald trump who said Law Enforcement officials should probably go back to some type of profiling in order to prevent things like this. [ inaudible ] i think we right now are addressing a specific crisis and i think even though it is a perfectly fair question, i dont think we want to talk about partisan politic at this point. I would say im very, very proud of the work of the nypd and the fbi and the way they have so quickly found this suspect and the kind of cooperation that is going on. I have a lot of faith in Law Enforcement and how they do things right now. At this point, we are extremely grateful that were able to apprehend the suspect out in linden, new jersey. As i always say, we have to be in a state of alert in new york city. We are the number one target in the world. But as far as this investigation and working again with the fbi, i think im a lot happier today than i was yesterday. I think all new yorkers should feel secure that the nypd and other Law Enforcement agencies will continue to keep them safe and continue in this investigation to make sure that we get to know who is involved and why. Let me add to that real quick, marcia, first of all, there is no other individual were looking for at this point in time. Second, vigilance is called for. And it is very, very important if people see anything unusual particularly an unintended package they reported immediately, call it in or find a Law Enforcement officer. I think the commissioner is right. Were very, very appreciative for all the men and women who did this work to get this suspect. But we want to remain vigilant. Are you glad the suspect survived the apprehension . How valuable is that . The apprehension, im much more relieved than i was last night. The fact he survived is excellent, both from an investigative value and from the fact that can you talk about who he is, where hes from, where hes been living . Can you tell us who he is . We have to build out that whole picture and dont have enough knowledge in my own head to fill that all out. For several years . In new jersey postrecemost r but i would have to look at address history and im not in a position to do that right now. Suggesting radicalization or intent . Not right now. On the Emergency Alert [ inaudible ] and given this is the first time it was used for a manhunt purpose like this [ inaudible ] several questions there obviously. We think as i valuable tool. We think it the recretedcreated focus on urgency. Our colleagues will fill in the blanks for you on exactly what the positive effect was, but from what we know now, it contributed to the successful apprehension of this suspect. This is a tool we will use again in the future in similar situations. Obviously was an imminent threat and very appropriate situation in which to use it. And i think it is another example of the innovation going on with nypd and oem there was a way to reach people, different from the past, no more wanted poster, you know, on the precinct house wall. This is a modern approach that really engaged the whole community. I think the reason it was used in this case was the specific potential danger and it made sense to do a very broad alert. [ inaudible ] well let chief boyce talk about that. To answer your question, we identified we have a video of two persons who picked up the bag, took the device out of it and walked off with the bag. Now, we went back to see where they came from, they looked like they were two gentleman just strolling up and down Seventh Avenue at the time. We have no information that would link them to this at all. However, we still want to talk to them obviously. Were considering them witnesses right now. Once they picked up the bag, they seemed incredulous, picked this up off the street and walked off with it. Well find out well put their images out and hopefully get them identified. To clarify, based on what you said earlier, based on what you know, do you believe this man acted alone . Thats all going to be right now we have who we need to have and thats nj as we go forward in this investigation. Thats part of what we do. Were going to talk to family, friends and see what the connections are. This is part of an investigation. Youre not seeking an accomplice . Right now were not actively seeking anyone. [ inaudible ] good question. To be determined once we speak to them. Too difficult to say now if they all even inadvertently pulled a wire. I dont know if they played a role or not. Are you confident saying the [ inaudible ] again, with the central park, from what we have now, from what we know now, two separate incidents completely, two different devices, wholly different. And couple of months apart. Were always rethinking central park. It is an open case. The other question, i cant answer for you. The undetonated Pressure Cooker [ inaudible ] i wont describe the device and how it would work. [ inaudible ] five individuals from last night are not still in custody and im not going to discuss what they could face in the potential future. Mr. Sweeney, did the suspect make any statements during or after the question is about did the subject make any statements during the apprehension today. No. Not that im aware of. But new jersey and the team from the newark jttf are out there. That will continue as well. How valuable were surveillance cameras in identifying rahami and any associates, some of the Images Available to us. Thats the world were living in now, any street, any incident in new york city, most of the time that gets capture on video surveillance. As we go through the investigation, as we continue to gather more surveillance video, it is going to help us move forward with this case. And make sure that this suspect, the subject, is brought to justice and pays the maximum price. Two more questions. [ inaudible ] so an understanding in how to reach a terrorism charge in a criminal investigation, you have to understand the difference between a bomb going off in a crowded street in new york city is a terrifying act, whether that is an act of terrorism requires you find out who did it, which is something we didnt know at the early stages of yesterday, and then why they did it in order to meet the statutory requirements. The basic definition of terrorism under federal law side is the use of fear, violence or intimidation or the threat of to achieve political or social change. From the outset of this case, our First Priority was to understand who was behind it. And to identify that person and bring that person into custody. Our ability to see through the rest of that optic, which is why they did it, what was behind it, and whether it was terrorism, required us first to understand who did it. The searches conducted last night, the interviews being conducted today, the broadening understanding of the suspect in custody now for the shooting of a Police Officer or Police Officers is going to be the part that brings the elements forward that will eventually result in a charge and it will be laid out in those charging documents. So thats kind of the process piece behind your question of how do you get from there to terrorism. And the amount of progress that was made in 24 hours between the work of the jttf, the intel team, some extraordinary work by the Detective Bureau in terms of surging the number of people to do the video canvas in the immediate area and then expand that out in consend trucentrics. Thats a question that as bill sweeney said, part of the investigation, but the pieces are still being gathered. [ inaudible ] the yes question is how do w link the devices . The only thing i can say is through evidence and analysis. I cant go beyond that. Thank you, folks. There is the end of the press conference there, melissa, in new york city, where various visuals talking about the apprehension of the suspect in the bombings in new jersey and in new york city. No international involvement, no indication of a terror cell, no additional suspect being sought, and the individual who was apprehended was not, according to the assistant fbi director, William Sweeney, on any, quote, radar screen for possible terror involvement. It may be this is a guy with a local beef, who has been apprehended now for what he did. They did say there was direct evidence linking him to the devices in Seaside Heights and in new york city. If youre not familiar with seaside, it is, you know, there is it is going to be easy to capture anything on video. There is really one or two ways into seaside, a bridge from toms river, new jersey, route 35 from the north, central avenue. So it is a place where if he was in the same car, theyre going to have it on camera fairly clearly. Car in which he was apprehended. A peninsula hanging off new jersey. It the investigation is ongoing. We should note the fbi is saying that searches and interviews conducted in elizabeth and perth amboy, new jersey, continue. No other suspects as tyler mentioned are being sought after at this hour. Well have full coverage of this and all the developments that happen as we go. We do want to turn our attention to the markets. Stocks turning negative at this hour. Apple hitting fresh session lows here, down by 1. 3 . Power lunch will be right back. With this level of engineering. Its a performance machine. With this degree of intelligence. Its a supercomputer. With this grade of protection. Its a fortress. And with this standard of luxury. Its an oasis. Introducing the completely redesigned eclass. Its everything you need it to be. And more. Lease the e300 for 549 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. Thats smart. Truecar can help. Its great for finding a new car, but you already knew that. Its also great for finding the perfect used car. Youll see what a fair price is, and you can connect with a truecar certified dealer. So, no matter what youre looking for. There it is. This is how buying a used car should be. This is truecar. Hi, everyone. Im sue herera. Here is your cnbc news update for this hour. Federal prosecutors say governor Chris Christie was told about the plans to close the traffic to the George Washington bridge. Sporadic fighting has broken out in southern syria. Video showing a missile allegedly being fired by the syrian army. Syria claiming the truce is over. Secretary of state john kerry says the u. S. Was working to extend the ceasefire but called on russia to clarify the syrian position. An activist in london laid out 2500 life jackets in neat rows on Parliament Square to mark europes refugee crisis. This comes as the u. N. s migration summit is held in new york today. The number doubled in 2015 to 1. 65 million. Thats the news update at this hour. Back to you, brian. Sue, thank you. The role in technology in terror helps Law Enforcement track down suspects faster than ever before. But it also helps terrorists spread their message. Well get more on the tech and terror story coming up. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the global economy. And you thought we just made the gas. Energy lives here. Farm fresh ingredients, stepbystep recipes, delivered to your door for less than 9 a meal. Get 30 off your first delivery blueapron. Com cook. Good afternoon, everyone. Im tyler imagine seiyler mathi. Welcome back to power lunch. Incredible role that technology plays today in the war on terror. And this Biotech Company is up about 90 now on an fda approval. Were going to speak with a Hedge Fund Manager who made the call early and just got a big reward. And counting down to the fed, will they or wont they . Should the fed raise rates this week . A hot debate. Second hour of power begins right now. Im melissa lee. Lets get a check on the market. Were all awaiting the fed meeting a couple of days away. Here we have stocks pretty much on the flat line, really losing steam. That turn happened about 12 00 noon eastern time today. The dow giving up triple digit gains. Couple of things happening around noon time. Apple turned lower. Apple is now in your session lows, down by 1 . And oil gave up much of its gains, turned negative around noon or turned to the downside to noon here. Higher wti by 1 right now. Final trades in crude, less than 30 minutes away. Im brian sullivan. Apple faced the wrath of european regulators. Now it is mcdonalds. The fast food giant facing the prospect of an eu order to pay 500 million in back taxes. Samsung selling assets. A recall expected to cost over 1 billion. And venezuela says that opec and nonopec nations are, quote, close to reaching a deal to try to stabilize oil markets. That a deal could be announced just this month. Melissa . First, a lot of developing news in the past hour on terror attacks over the weekend. Suspect believed to be responsible for the new york city bombing now in custody. Morgan brennan is live in manhattan with the latest. Morgan . Reporter thats right. So briefing just wrapping here in new york city, where mayor bill de blasio officially connected the bombings in the two states, new york and new jersey. Based on the information we have now we have every reason to believe this was an act of terror. We will be going into some detail and there are still a long investigation ahead, but now we have as i said every reason to believe this was an act of terror. Reporter so he was joined by other officials including new york fbi special agent William Sweeney who said the devices were linked from new york city to saturdays seaside park bombing in new jersey. Officials saying there is no other individual that they are looking for at this time having apprehended that suspect in a gun in a gun shootout in linden, new jersey, just a short while ago. And that, at least so far, no indication there is a terrorism cell operating in the city. In regards to the mass mobile alert sent out this morning, officials saying this tool aided in the help of the apprehension of that suspect, rahami, and back here on 23rd street, where a bomb exploded saturday night, the investigation is still ongoing. You can see behind me, the fbi is still on the scene and the new York Fire Department is here on the street, which is still closed down as well. Guys, back over to you. Thank you, Morgan Brennan, in manhattan, with the latest on that story. Lets get more on what is fueling the weakness on the market now. Good to see you. Mark, ill start with you. You as well as many other market watchers out there think nothing is going to happen on wednesday. But at the same time, even though there is an expectation nothing is happening, what we are seeing is the ten year yield is creeping higher. We have and the dollar index is up by 1. 4 . So isnt the feds work being done in a way. In a way, it is. I think our bond yields are moving up, spreads remain relatively even with other bonds around the world that have been backed up here, particularly the tenyear german bund and japanese government bond. All on the suspicion their Central Banks may be limited in terms of what they can do or are out of bullets. But the strength of the dollar is doing the feds heavy lifting, is curbing inflation and acting as a governor in economic activity. It is a feedback loop the fed is caught in, every time they lean hawkish, it strengthens the dollar and it is productive to one of the dual mandates they continue to whiff on, price stability measured by 2 inflation rate. How does that influence the markets and your view of the markets going into year end . The stronger dollar meant weakness for the equity markets. There is a number of cross currents. You continue to have low rates, stimulative Monetary Policy, low inflation, all of these are reasonably positive for the equity markets. The other thing is, we have seen the pretty meaningful inventory correction and we have relatively low earnings expectations for the second half of the year. Again, fairly positive for the near term market activity. The biggest uncertainty in the negative is 2017. If we dont see resurgence of capital spending, if we dont see pickup in new business formation, i think markets could run out of steam, but for the near term, still looks pretty good. Sounds like you think there could be a glide path setting up for stocks in the next few months or so . Safe to be in the market so to speak . The market has been very much in the risk on, risk off type of volatile environment, so to say it is safe, i wouldnt describe it this way. But at this point, i think there are more tailwinds than head winds, but as we approach 17, the danger signs start to flash much more loudly. Give en your view of where rates will be, where they are today, does that in the view there is this free area here for the market to go higher, is it better if you had had to invest the dollar today or whatever amount it is today in dividend yielding stocks, safety plays that had been in favor for so long, the favorites of low Volatility Fund etfs and active funds out there or in growth, Like Technology . A little of both. I think that while we have seen a backup in the Interest Rate sensitive sectors here, ten year bond yields bounced somewhat, i suspect there is a certain selflimiting characteristic about the market that the economy cant tolerate significantly higher rates. So while i do expect the fed to be on hold this meeting, theyll use this opportunity to signal that a rate hike in december is a very high probability and as the market bakes that in, they think the fed will feel more comfortable in Going Forward with that decision and therefore i still think we want to be in growth sectors that will do well regardless of the underpinnings economically and in or on the rates side and be sensitive to the Interest Rate sensitivity of the classic defenses but the fact they have been bid up to the point where the valuations tolerate little room for error. Guys, leave it there. Thank you so much. Just two days to go before that fed decision, former treasury secretary hank paulson weighed in on the great rate debate earlier on squawk box. Everywhere i look i see economic policies that used to work arent working as well as they as they need to. And i dont care whether youre dealing with authoritarian governments like russia or china or the democracies in the west, structural changes arent forth coming. So the Central Banks are the ones that are trying to get us out of this problem. And to me, with Interest Rates where they are right now, you know, theyre not providing much juice. Lets bring in charles ryanhard at mainstay investments. Welcome. Good to have you with us. Last week, one of the threads of conversation at our cliffdelive alpha conversation was that our Monetary Policy has sort of run its course. In other words, that it cant do what it used to do out of bullets, whatever you want to choose your metaphor. What do you think . Thats what mr. Paulson seems to be saying . Because we already had quantitative easing and because we had negative Interest Rates in parts of the world, we are further along that channel. Not at the more effective stage, more potent phase of Monetary Policy when lifting lowering rates from a higher level. Were way beyond that now. It is helpful to look at other solutions to try to revive we have not seen a lot in this country certainly. Fiscal stimulus, either through tax cuts or heightened spending. Is that what it will take to get the economy moving from that 2 trajectory higher, number one. Number two, will it take what mr. Paulus wanz tason was talki structural change, major tax reform among other things . Both. I was having a conversation with one of our Portfolio Managers on our Global Equity yield strategy last week and asked him what would be a positive black swan, someone that has low probability but high impact if it were to happen, he suggested enough Infrastructure Spending around the world to lift Global Growth by 1 . The case of reform, the steps that we need to take have to be steps that can improve the level of productivity or the Labor Force Growth rate. And so to the degree that you can create your form that creates incentives that allows for productivity to enhance, thats something that can have a sustainable economic impact. What if the fed raises rates . That would not help them achieve their goal. What is their goal . Their goal is maximum employment and 2 inflation. How is the hike going to impact employment . Not very much. The idea is if youre deciding if youre going to make an irreversible decision, like opening up a new plant or hiring new people and the environment seems more unpredictable to you because you were conditioned to think it might be later in the year than right now, we never thought that this fed rate hike you think Business Owners are that obsessed with the fed as we are . They want to see a full order book before they expand and want to also know that they want to get the sense that they understand the environment with which theyre operating in. At this point, the fed is data dependent and the more recent data hasnt been strong enough, they havent positioned the market and the economy for it. That being said, we do think ultimately theyll resume, theyll raise rates. Again, never thought it would be a sprint. We thought it would be a marathon. You agree with what mark concluded by saying and that is that no action this time, but some words that indicate theyre ready to go in the future. They want to leave the door open. I agree with vadim on what he telescoped the tailwinds and head winds of the market as well. Are you thinking december and then more Interest Rate hikes in 2017 . Or is it a one and done or one and wait . I think one and probably one and wait. We think the odds are 50 50, maybe better around december. Theyll go again, but very slow tightening ty ining cycle. There are things that consumers can do in the meantime. Like corporates. There are tremendous opportunities in credit. If youre looking to generate income and election proof your portfolio heading into the elections, one great way to do that is anchor with municipal bonds. We like the ten years, now part of the curve. We like transportation bonds. We spoke about infrastructure earlier. There was a transportation bill that was signed into law not that long ago that would be an example. We like transportation bonds, especially in parts of the state that where, like, texas and other areas and education bonds. Thinking about equities for a moment, you asked a question earlier about dividends or growth. Well, what we like, one of the strategies we really like is to find companies that are growing, that theyre very good stewards of capital and good at weighing decisions should i get a good return on investment if i do reinvest in my business or should i be returning to shareholders. We Like Companies that are making good Capital Allocation decisions such as . Verizon and these are the names you know. They also have the yields you need. These would be names like verizon or national grid, and these are companies that are growing their cash flow streams, in cases reinvesting in business, like verizon, to keep up best in class network, doing smart things like paying down debt or paying dividends and growing them in order to return cash to shareholders. In the case of national grid, they grow the dividend with the inflation rate in the uk. Got to leave it there. Charles ryanhard with mainstay. A big jump today in home Builder Sentiment. Seems like a good thing, but is it . Well dig in. Shares of one small cap biotech are soaring. Who, why, and a guy who correctly predicted this months ago and is profiting off the news, all that there is the name. Well tell you why coming up. Ce. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all. The mercedesbenz cclass. Five driving modes let you customize the steering, shift points, and suspension to fit the mood youre in. And the road youre on. The 2016 cclass. Lease the c300 for 369 a month at your local mercedesbenz dealer. When you should be enjoying still payour retirement . Me if youve paid off at least 50 of your mortgage and youre 62 or older, a reverse mortgage might be the answer. A governmentbacked reverse mortgage stops your mortgage payments and gives you steady taxfree income. Let the home youve taken care of, take care of you. Turn your equity into a comfortable retirement, all while continuing to live in, and own, your home. Find out how much you could receive for retirement. Lendingtree when banks compete, you win. Welcome back. Housing stocks rally today following a big jump in home Builder Sentiment. Diana olick is live with the story. This was unexpected. The street want looking for any improvement in home builder confidence but got in anyway. The nahbs Confidence Index jumped 6 points in september to 65. The highest level in almost a year. 50 is it the line between positive and negative. At 61 in september of last year. A surprise sales surge this summer driving the train of the indexs three components, current sales jumped the most, up six points to 71. Sales expectations over the next six months jumped five points to 71 also. Only buyer traffic in the negative, but barely, rose four points to 48. Confidence is weakest in the northeast and strongest in the west. But still positive throughout the country. So why the sudden jump . Well, here at eya, Housing Developers say buyers seem to be more enthusiastic about housing overall. They were surprised to seat surge in august. They say it may be the fear of rising Mortgage Rates that got some off the fence and rising incomes. We saw that in the census report, people have more money in their pockets and that they be must have to get them into a new home. All the numbers online. Looking behind you, they need to build it bigger. Those apartments behind you wont hold many people. Never mind. But theyre building a lot of them around here. A lot of units. On a day like today, you need a little bit something else. What does the jump mean for the value of your home and the overall Housing Market . Lets bring in neleh richardson. How do we dig into the numbers . They seem good, but are they . Yes, they are good. What it shows is the Housing Market on new construction is going to perform much better in the second half of the year than it did in the before. We are still 36 down from where we were in 2007 in terms of Single Family construction. Demand has never been higher. Fundamentals for demand are strong. We have great job growth, low Interest Rates. Household formation. These fundamentals are stronger than they have been since 2007 and yet we still dont have construction that meets that demand. On the demand side, things look great. It is the supply side that still is showing work. But that shows that they are tilted towards the Strong Demand because they feel more encouraged by that than the blocks in supply. Fortune magazine called you the internets truth telling economist. Small town, indiana girl, made good. Tell us some truth about the Housing Market that were not talking about, the questions that maybe were not asking right now. What surprises me the most about this election season is the focus on economy the economics on the economy, on incomes, and the lack of focus on housing. Housing is some place that everybody has in common. One thing everyone shares. The lack of it is a cause for concern. Having it is cause for attention. And yet we dont see a lot of talk about it. We are in a housing shortage affordability crisis in many cities. We have 50 of renters paying more than 30 of their incomes on their rent. Housing is so linked to your opportunities, to what school you go to, the crimes youre involved with and yet were not hearing it. So i think this is the place where truth is meeting. The role of housing and this election cycle, and how things like Immigration Reform will affect housing Going Forward. Im curious, because we have so many fed discussions now, the fed meeting coming up on wednesday, and all we hear is slow lackluster growth. Then you see the housing picture and i think were talking about two separate economies. Have we been in this situation where housing and the Housing Market shows hypergrowth and others saying lackluster growth . There has been basically a bipolar nature between the markets and Housing Market since the bust. Every good news in terms of Interest Rates were read one way in the stock market and another way in housing. The fact of the matter is housing has been responsible for lifting the economy out of recession and every previous recession except this one. It has been slow to lift off, slow to recover. And now it seems to have legs while the rest of the economy is slowing. The question is who will win the horse race, the markets, the real economy . My bet is on the real economy. One quick question here, how much do you think people will react to higher Interest Rates . I think people, when they buy a house, they buy the payment, not the price of the house. Thats right. They want to know what theyll pay for month. And if the payments go up what does that do . Theyre not checking the Interest Rate every single day when deciding whether or not they need a new home for the next trial. Consumers are worried about the payment. The Interest Rate will affect the size of the home they get, might affect the location. But it doesnt generally stop them from buying a house. That being said, we have a whole generation of home buyers, millennials, who never have seen an Interest Rate over 5 . Were in new territory. I want them to feel that pain. Theyre feeling other kinds of pain, brian, believe me. Do not associate brian with im the nice one. Hes a redskin fan, all shaken up today because they stink. Baby boomer, all that business. Neleh richardson telling some truth, tyler is mean. Thank you, guys. How authorities were able to get a suspect in custody in less than two days after the explosions in new jersey and new york city. Power lunch returns after this. For actual rocket scientists. And the launch crew met for a moment of reflection. Before any of this, cdw orchestrated a collaboration solution using pcs with intel 6th gen core vpro processors. Collaboration by intel. Orchestration by cdw. But the best place to start is in the forest. Kubo i spy something beginning with. S beetle snow. Kubo no. Beetle snow covered trees. Monkey nothing to do with snow. Narrator head outside to discover incredible animals and beautiful plants that come together to create an unforgettable adventure. Kubo wow narrator so grab your loved ones monkey dont even. Narrator and explore a world of possibilities. Kubo come on, this way. Narrator visit discovertheforest. Org to find the closest forest or park to you. Welcome back. We call it the good, the bad and the ugly. First to the good. Hard for me to say that, with respect to that company, wells fargo right now. But it is a good day for the stock. The bank getting upgraded ahead of its big hearing on capitol hill. That comes tomorrow. The ceo will be there. And try as he might to explain what went on, what went wrong at that company. Baird raising wells to outperform, saying the drop in shares is making the stock look attractive. On to the bad, merck, the worst performing stock, ugly day. It is off as you see there by nearly 4 . The double edged sword of technology and terror. It helped authorities catch the suspect in a day and a half, but also makes it a lot easier for those who recruit and plan attacks. Well explore both sides next on power lunch. When it comes to healthcare, seconds can mean the difference between life and death. For partners in health, time is life. We have 18,000 people around the world. The microsoft cloud helps our entire staff stay connected and Work Together in real time to help those that need it. The ability to collaborate changes how we work. What we do together changes how we live. Announcer when they test you, stand firm and move only when you hear the seatbelt click that says theyre buckled in for the drive. Never give up till they buckle up. With new cabinets this wfrom this shop,house, with handles designed here, made here, shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. Keeping the power lines clear,my job to protect public safety, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Hello. Im sue herera. Here is your cnbc news update. The 28yearold suspect in the bombings in new york and new jersey over the weekend was captured after being wounded in a gun battle with police. Ahmad rahami was conscious as he was loaded into an ambulance in linden, new jersey, four miles from his home in elizabeth. Based on the information we have now, we have every reason to believe this was an act of terror. We will be going into some detail and there is still a long investigation ahead. But now we have as i said every reason to believe this was an act of terror. German chancellor Angela Merkel said she wishes she could turn back the block in order to better prepare for europes migration crisis. She took partial responsibility for her partys worst ever performance in a berlin state election. The tim tebow era starting today for the new york mets. The former Heisman Trophy winner beginning workouts at the Mets Minor League complex as he prepares for the three week instructional league. At 29, hes 12 years older than the youngest player in the camp. Thats the news update at this hour. We wish him the best of luck. Ty, back to you. Fascinating story there. Thank you. Oil market closing for the day. Lets check in with jackie deangelis. Closing prices a little over 43 a barrel. Oil did see a lift today, but almost a dollar off of its session highs. We did have some optimism this weekend from venezuela saying it thinks an opec deal is close. That is tempered by the secretarygeneral saying this is an official meeting. Rbob finishing lower as well, concerns about the Colonial Pipeline easing in the marketplace, but still something to watch. The expectation is that that problem will be remedied by the end of the week and gasoline will start flowing again as it once did. This could be a shortterm blip if we dont see that timeline work out, it could be something more. Back to you. All right, thank you. Approximately 8 30 p. M. On saturday night, an explosion rocks the new york neighborhood of chelsea. Less than 36 hours later, around 7 30 this morning, the fbi released the name and a picture of a man wanted for questioning in connection with that attack. And some other attempted attacks. Ahmad khan rahami. Many cell phone users in the new jersey, new york area received this alert asking them to call 911 if they saw the suspect. Just before 11 00 a. M. Eastern time today, ahmad rahami was taken into custody after a gun Battle Police inland in new jersey. How did Law Enforcement get from an explosion to having someone in custody in less than 40 hours . Lets bring in jeff lanza, former fbi special agent. Some very, very solid police and investigative work. In your mind, were there one or two key things that made it possible . We dont know all the things that happened that led up to his arrest. I would imagine had to do with potential video surveillance, not a square foot that we can go in major cities without being under some sort of surveillance in terms of security cameras from private institutions or police cameras. That may have led to his capture. As well as other information, once you have a picture, an image, you can compare that to images on file, and you can use facial recognition to possibly identify someone and search over social media to see if that person is putting out anything or has put out anything prior to the good oldfashioned citizen vigilance, apparently he had fallen asleep in the doorway of a bar or some kind of a restaurant. Somebody saw him, said, wow, he looks like the fellow that ive been seeing on the news, picked up the phone and called 911. Thats right. Time and time again, pictures are the key to apprehending suspects in any case. It has been that way for years. The picture is out there, someone sees him, had not seen the picture, now you had someone who has fallen asleep. A drunk, a bum. But now it is something different. He had the image in his head of what this guy looked like. Are there certain kinds of platforms that make it more difficult for Law Enforcement. I would imagine we saw with the San Bernardino case unlocking an iphone may prove difficult. Are there some platforms that might be easier and how much of a roadblock are encrypted platforms . The advances in Encryption Technology made it more difficult for Law Enforcement to track down individuals that are responsible for crimes like this. We saw that in the San Bernardino case when the phone could not be unlocked for a period of time to finally someone found the solution to that. Encryption technology will be a big problem for Law Enforcement unless they find a solution or back door that allows us to unlock things like phones and other electronic media. And lets say a criminal wrongdoer might use something like, i dont know what they use, whats app or imessage, can those be accessed . Yes, for the most part, if youre using text message services, most of them those records can be obtained by Law Enforcement. Usually a permanent record of those things. There are some anonymous apps that allow you to text message anonymously. And then you have to figure out, you know, you have to connect the dots to find out who signed up for that service and may be able to trace it back to the individual. It makes it difficult when there is a level of anonymity to it. This fellow was arrested prior. Were looking at a lawsuit. In 2011, they filed a lawsuit against the city of new jersey, waiting on firm confirmation. So he had been processed. How much of that would have been helpful in this investigation, the fact he had apparently been arrested prior for some sort of Disorderly Conduct charge at his familys restaurant . Right, so anytime you have that type of information, that gives you a bunch more clues to help find somebody as to might give you more phone numbers, more addresses, could give you more associates that might be connected to this person. Also gives you leads for other parts of the investigation if this guy had help in putting the bombs together, if it is him, that did this. But finding someone, any key document you find like that usually gives you plan ty of clues to go on. Last question, how much how many cameras are really out there . I would flaimagine there are mo cameras than the average person is aware of. I love watching the crime shows, they get the camera footage, they can zoom in, go the face, facial recognition, how close to reality is that . Not very close to reality. There may be that technology in some places. But you would be surprised that the level of technology out there, probably isnt as good as what you see on television, however, there is a lot of surveillance video, much more grainy photos than you might see on some of the programs. Thank you very much for your insights, we appreciate you being with us. While Technology Made it easier for Law Enforcement to identify and track suspects, social and online media have opened up new avenues for terrorist organizations as well. Were joined by rahmini. Lets be clear here. We appreciate you being with us and welcome. This is being described by the mayor as terror. We dont know whether what sort of terror it is. There is no indication, said the assistant director of the fbi, of a terror cell being involved here. This individual was not on their terror radar at all. So how do we connect an individual like this to a deeper involvement with something that is larger than just potentially his beef against america or his beef against Law Enforcement in new jersey or whatever it might be. Well, the first thing is to wait to see what the terror groups themselves say. I am on the encrypted channels of both isis and al qaeda and as of today, there are no claims of responsibility for this attack and by contrast there is a claim of responsibility for the stabbing that just happened in minnesota this weekend. So thats the first thing. If there is a claim of responsibility, that already gives you at least an avenue to look into. Now, it is important to note that recent terror attacks, at least in europe, have been perpetrated by people that had no record at all. Take the nice attacker. No antecedents that show he was radicalized and would go on to do this. What is of interest now is to see what the terrorist groups say and what is found on his communications, facebook, what does his twitter account, what is on his phone, what kind of literature was he reading, does he listen to his lectures . We learned a lot in the case of the orlando shooting from social media and about his what inspired him, did not direct him, also San Bernardino, the same, right . Sure, sure. It will be interesting. What im looking to see is number one was there a pledge of allegiance of any kind to the Islamic State, something that the Islamic State asked for. They want the people who are acting in their name to say that publicly, whether on facebook, whether to the witnesses in their attack, whether it is on a phone call to 911. So ill be waiting to see. Would you have suspected if this individual is tied to any International Terror group likes is, al qaeda or any others, would you have expected to see by new a claim of responsibility or some connection . You know, the claims of responsibility from isis have been coming quite quickly, within a day. Al qaeda tends to take much longer. And with them, there is really not a metric. There is some attacks that took, for instance, london bombings, took almost a year to plan. Others took several days. With al qaeda, it is a lot more there is a lot more leeway than with isis. With isis, if this was a plan radicalized and was not in touch with the core, they are actually watching the media just as we are. Theyre waiting to see was he muslim, did he pledge to them and theyre using the public reporting on that figure to determine whether they consider him a soldier of the caliphate. Are there a lot of wannabes . Of course, but the question is why are they choosing this particular ideology in. All right. Bottom line, though, how much has it actually helped terrorism spread . How much has it helped these selfradicalized people, would they be selfradicalized if facebook didnt exist and didnt watch a recruiting video on youtube. Social media is the engine causing this radicalization. Isis had enormous success with twitter and with telegram, much more so than al qaeda had before it. It makes it much easier for them to get in Touch Without any threat to the terror group themselves because they can do it in a virtual manner. The terror group is using a vpn blocker so we cant see their ip address. And it makes it much harder for Law Enforcement. Knowing what you know, would isis tell somebody to promote them and the cause, like this guy that stabbed those in the minnesota mall, where he apparently shot at some slogans, did not hide, probably knew he was going to die, versus somebody who may have planted some bombs and slunk back to his home trying to hide . The aim of isis, like al qaeda, is to spread terror. So in their world view, they he are at war with the infidels who are us. And any way they can harm us is a win for this group. Whether it is stabbing a couple of people at a mall, whether it is putting a bomb that doesnt end up killing anybody bought caused concern, in one of the major cities in america, that is also a win for them. Are there cases you can think of where a terror group has claimed responsibility but it has not been proven or where the claim turned out to be false . We would like to be affiliated with this, but were really not . There have been numerous false claims by the taliban. Isis on the other hand, there have been some false claims, but those claims have not been typically in the west. They have been, for example, in turkey. Or in Islamic State held territory. They claimed at one point they killed an American Contractor in southern turkey, the u. S. Embassy said the man died from an accident. In the west, in general, they have been rather reliable. Which is why i think it is important to take the claims seriously as a point of departure for investigation. Well let you go back to work. Thank you very much. Is the street not bullish enough on facebook . One analyst says investors are worrying too much. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. 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Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm 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. Even on a day like today, we are not going to forget about street talk, our dive into the key wall street stories of the day. Stock number one, startup car Company Called general motors. Shares on the move because Morgan Stanley upgrading it to an overweight from equal weight. They called it a, quote, bet on auto 1. 5. They think gms core business can remain relevant and profitable for longer than the market expects. Analyst taking earnings expectations up and says that gm should benefit from a longer industry cycle. Says there are lots of cars with steering wheels left to sell, better than cars without steering wheels. Ta target is 37. I looked at the five year chart, pretty much has gone not very far. From over five years. Second stock, Pnc Financial getting an upgrade to outperform, price raised to 101, keeping nonInterest Rates stable for two years now. The combination of accelerating loan growth makes it into a revenue driving story. Just dont make up accounts. Thats the delineation. Third stock, maybe one you talked about on fast money, i never heard of the company before, they have a lot of brands, vista outdoor. Vsto. Utah based owner of brands like bushnell, gun sights and bell helmets and camelback water bags. Starting coverage of the buy rating, analyst says hiccups aside, the company is becoming a juggernaut in the Outdoor Sporting Goods universe. Stock is down 20 , disappointing earnings, but this company used to be primarily basically guns and ammunition. And they have been buying all these brands like bell and camelback and many others a conglomerate. Rolling up all the brands. Theyre now split between the guns and ammo and the other stuff. Cl king likes that. About 18 upside. Final stock here, facebook, getting its price target boosted over at citi to 158 from 148, buy rating. The analyst says consensus appears reasonable and maybe conservative. He says investors are concerned about ad load growth and the impact snapchat is having. The stock has been a favor among tech investors. I think that would make it a second or third Biggest Company in the world if it hits that price target. I know my 12yearold talks about snapchat all the time. She has never brought up facebook. Never even mentioned it. Sarepta shares look at those, soaring after the drug got fda approval, the move was unexpected to many but not our next guest who has been betting on it for months. Today hes cashing up, stock is up 95 . He joins us next. Shares up more than 90 today alone after the fda approved the companys drug to treat muscular dystrophy. The committee voted against recommending approval. Despite criticism our next guest stayed bullish on the stock. Here is what he said back then. You are the only one who seems to think this. Peoples chances of approval for this drug have gone down lower than 10 . Mine are above 90. What happens if the drug very quickly over 40 or 50. The stock is now at 50 a share. Great to have you with us. How confident are you that this approval sticks . Because i understand sarepta has to do a follow up study which shows benefits to motor function and can withdraw that is years off. So im very confident this will stick. And the follow up study that they are doing is in other subtypes so that is important to realize. Youre making the point, too, because so many Bio Tech Companies that get approval this is the one drug in the pipeline. You are pointing out that they have several different drugs in the pipeline. So analysts estimating that this particular drug could mean 400 million in the u. S. Alone but youre saying the potential is much greater. Yes. Its several billion dollars. This is about 13 . And this addresses this class probably 85 . So certainly assuming it works and there is reason to think it might work better and produce more than other subtypes that definitely can be several billion dollars world wide, quite large. What happens to this company . Is it one that gets bought . Quite possibly. Its hard to predict who gets bought but its a very attractive market because there is great awareness of the drug that requires very small sales force. This is a testimony to the development in diseases. We talked about high drug prices. Here is an example where you have to have high drug prices. What is it like owning the stock . You might need to take drugs to own this. It was 150 stock in 2000 which is 209 today. It fell to 3 in the financial crisis. Your entry point is around 10 im guessing if you bought it in 2010. Do you just kind of buy it . Its so volatile. We made some adjustments depending it is important to remain objective and to absorb all new information. But in recent last year or couple of years we felt that certainly the drug deserved to be approved. I will argue that forever. Standard accelerated rate of approval is reasonably likely. They clearly have a lot of opposition within the fda that was known from the Panel Meeting that the highest person in the drug area supported it. And that was if nothing else that was she would come through and she would so unfortunately with all what do you do with the stock now . It seems there are some uncertainties Going Forward. Manufacturing costs will be very high. The cost per patient could be 400,000 per year. In this environment where high drug prices are being scrutinized what do you do with this stock . I dont think they will scrutinize the price. That is a typical price. The manufacturing costs have been very successful 15 , maybe 20 . That is a very good gross margin. As far as the stock if i didnt own as much as i do i would buy this stock for a long Term Investment and potentially take out. You would hold your shares at this point . I dont talk about exactly what i do. It is a very large position but i think its got prospects both short and long term. Thank you for coming by. Appreciate it. Coming up at 5 00 p. M. On fast money i will be joined by ed kaye. Check please is next. Was just a bottle. That no one would ever notice me. But i knew i could be more. That one day, i would make people smile. [woman speaking indistinctly] hahaha umhmmm hey nikki what are you doing here . You tell me, stephen. What . Im snapping. Youve been streaming my videos all morning. Now youre with this thing . No its not you its verizon they limit my data. I had to choose. Come on, girl. Lets get us a man with unlimited data. Why pay verizon more for data limits . Introducing tmobile one. One price. Unlimited data for everyone. Lets do a little check please here. One thing that stands out to me on this day is that the market was little phased by what went on in new jersey and new york over the weekend and seemingly that has been the pattern in recent terror incidents. That meeting is on wednesday. Hitting wires saying 1. 7 is the new 1. 55 so higher rates is. The fed wont do anything on wednesday is the prediction. Gpas back in the day. A fed meeting in two days. Dont forget about it with other head lines going on. Thank you so much for watching power lunch. Closing bell starts in five, four, three, two, one seconds. Hi everybody and welcome to closing bell. Im kelly evans at the new york stock exchange. A reversal of fortune for wall street. The dow did rally more than 100 points first thing this morning but has since given back most of the gains. Right now a gain of 60 points. Investors expressing parsing ahead of the two Key Central Bank meetings. And some traders siting oil trade back. A deal could beou