Israel At War With Hamas, Safe-Haven Assets Rise, Peltz Pressures Disney 10/9/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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Carl Quintanilla (0:31)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

Good Monday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Markets around the world reacting to the brutal attack on Israel over the weekend. We will talk about the implications for risk assets, energy, the Fed, interest rates and politics. The bond market is closed today for the holiday. Our roadmap's gonna begin with Israel at war with Hamas. Heading into its third day of conflict, we're gonna go live to Tel Aviv for the latest.

David Faber (1:11)

And back here in the US, futures are moving lower. Energy prices are ticking higher. Investors, of course, continue to monitor events in the Middle East. In corporate news, Nelson Peltz once again putting that pressure on Disney.

The latest on the longtime activist fight with that company from both Jim and myself.

Carl Quintanilla (1:30)

Let's begin, though, with the conflict overseas. Israel recovering after suffering its deadliest attack in half a century. Israel's military claiming to have reestablished control inside the country 48 hours after the Hamas attack. Over the weekend, President Biden spoke out on the situation, pledging support for Israel.

SPEAKER_5 (1:50)

Today, the people of Israel are under attack, orchestrated by a terrorist organization, Hamas. In this moment of tragedy, I want to say to them and to the world and to terrorists everywhere that the United States stands with Israel.

We will not ever fail to have their back. We'll make sure that they have the help their citizens need and they can continue to defend themselves.

Carl Quintanilla (2:15)

So, Jim, we'll watch the taper headlines regarding Lebanon and reaction from any other player that might widen the conflict.

Jim Cramer (2:23)

This is a tough one, and I feel terribly for a great ally of the United States. I want to make that point, a great ally of the United States, and don't want to talk about, you know, debating, how do you talk about what seems like profiteering on a day like today, but we have to do our job?

And I think that I want to say that this is overblown in terms of the market coming down, because the market's not coming down that much, and oil's up not that much, because it didn't regain anywhere near the ground. You could argue it had to be. I just think that when you hear about a long slog and you hear about what's obviously going to be a situation where there's, you know, children, civilians going to have to be on both sides, lives will be lost, I think that it's hard to factor in. We've been another ally, although not as close, Ukraine has been at war for a long time, and initially that hurt the market, and then it kind of went off the radar screen in terms of the market.

David Faber (3:27)

You know, larger issues, of course, that investors, but really just citizens of the world, have to be concerned about beyond the current bloodshed are Iran's role, what the response is going to be to that, what Hezbollah is going to do in the north, Iran and Russia have become closer. You know, in these kinds of situations, obviously, you're always led to them thinking about broader consequences, none of which are good.

But that's sort of where the market tends to go.

Jim Cramer (4:01)

Do you think it clarifies, like what President Reagan say, an axis of evil versus good? Too simplistic?

David Faber (4:13)

What it potentially does, at least the concerns are, that it presages a wider conflict, right?

Jim Cramer (4:20)

Right. Right, I think that's right. And I think that without a wider conflict, Carl, we will say that this is a damper on the market, but not beyond that, in a wider conflict. And I think what you—I mean, if you go back to 1973, where you had the allies of Israel, who did the fabled resupply of Israel when Israel was going to lose, or arguably was crippled, that's what started the oil embargo, which then led to oil going up 300 percent, which then led to a horrendous economic problem for the United States. So you can see it happening. That was October to April of 73, 74, and that was—I don't want to say worst case, because obviously, again, you've got this human life versus money.