tv Markets Now FOX Business September 30, 2013 1:00pm-3:01pm EDT
clearly outpacing up volume today. from center to center whether it is angst or energy, et cetera. down arrows with worries about partial government shutdown and the midnight hour the key deadline point. president obama will be speaking the congressional leaders today, tomorrow, and also talking about the u.s. currency as the reserve and don't want to mess with that. the fact we're talking about all of this, that is the kind of rhetoric that makes everybody nervous. that brings us to volatility index which is a barometer of what we may see for volatility going forward on the s&p 500. while the market action doesn't seem too crazy or nervous, talking three quarters of 1%, that is not a huge move.
tomorrow the key i as well. adam: we have a break in with some news, president obama speaking. president obama: i have further thoughts for the press as the day goes on, but the bottom line is the senate has passed a bill that keeps the government open, does not have a lot of extraneous issues to it. that allows us to negotiate a longer-term budget and address a range of other issues, but ensures we are not shutting down the government and we are not shutting down the economy at a time when a lot of families are just getting some traction and digging themselves out of the hole we have had with the financial crisis. i have said before congress has two responsibilities. pass a budget, pay the bills.
i am not only open to, but eager to have negotiations around a long-term budget that makes sure we are investing in middle-class families, helping the economy grow, giving people who are working hard a leg up, and greater security and stability and deals with some long-term challenges and firms terms of debt and deficits. the only way we can do this is to sit down in good faith without threatening to harm women and veterans and children with a government shutdown, and certainly we can't have any kind of meaningful negotiations under a cloud of possible default, the first in u.s. history. there is not a world leader if they took a paul who would say they would be responsible or
consistent with america's leadership in the world for us not to pay our bills. we are the foundation of the world economy. and the world financial system. our currency is the currency of the world, we don't mess with that. and we certainly don't allow domestic policy differences on issues that are unrelated to the budget to endanger not only our economy, but the world economy. i suspect that i will be speaking to the leaders today, tomorrow and the next day. but there is pretty straightforward solution to this. if you set aside the short-term politics and you look at the long-term, would it simply
requires is everybody to act responsibly and do what is right for the american people. all right? thank you very much. adam: the president meeting with benjamin netanyahu for talking with the headline of the morning which is the shutdown taking place at midnight. lori: interesting he said he is eager to negotiate, that may be a change in rhetoric. let's bring in lou dobbs, he is here with his take. does anything stand out to you from the president's remarks which mark >> the president is not a standardbearer for constancy weather message or policy. form policy or domestic. this is a president you correctly pointed out has decided now he is eager for negotiation after he gets what he wants. and he is not resigned to the shutdown of the government. let's be very serious here. this is not panic selling, this is not, some are trying to
create a narrative. the fact is most people understand republicans who are in pursuit of limited government shutting down the government altogether is a bonus. we also know from history shutting down the government is not clematis despite the slimness emanating from the white house that the majority leader's office and secondly we also know if there is a minor option in the market as a result of the government, whatever may ensue from that, we can expect in terms of history a rally in this market because it is a clearing of the marketplace if you will because this is such, this obamacare bill is not partisan. the president did not tell the truth on any one of the principal statements in pursuit of the passage of obamacare. whether it is lower premiums,
lower cost of health care, a reduction in the percentage of gdp that we spend obamacare. lori: did they send the bill over with a delay in medicare knowing the president will likely be to wait ultimately? they can raise the debt ceiling? speak of this may find stunning but as strategist go, it is a pretty good one because it is based on hard rock and empirical fact. public policy it is calamitous in the fact it creates and contributes to the creation of a shortage of doctors, 90,000 in the next seven years. it is disastrous and that it starts to change completely the relationship between the patient and the doctor interposing not only government between patients and doctors, but nurses will be the first contact in all likelihood, and then we will see physicians assistants interposed
as well. we are talking about a real mess here. $1.8 trillion supposed to cost around 900 billion, it has now risen in production to 1.8. who knows what will be if it ever does take lace. adam: david was on fox business earlier today. he talked about the fact that with the debt ceiling there wouldn't be a default, don't raise the debt ceiling, force congress to cut what they can from discretionary spending. would that be realistic? >> nobody should embrace the idea of attacking the administration. a strategy on the desk ceiling, i think that is a mistake because it president is correct when he says this is what everybody signed up for. we have to pay our bills. what we had to do is when we
have public policy like obamacare, be very serious about making certain it doesn't become law. the fact it is passed no way negates the responsibilities of the democratic party, and this party for having a monstrous mistake. it will create hardship, it will not bring better health care. it will create greater debt, it will not bring better health care. 30 million people will still be uninsured in this country. this president started by talking about obamacare in 2009 providing coverage for 50 million people. it will not. adam: what happens which mark lives in labor leaders talk about the consequence of full-time employees. what happens if it works? if the affordable health care act works. >> how can you possibly work we already know it will cost that
much? in the very people you're talking about are casting a verdict of themselves. they want out of it, they are looking for waivers, they want to be exempted. what did the president do? exempted business mandates and called upon now and the legislation before the senate which he may indeed have the opportunity to sign or veto, he is being asked now to shut it down for one year until it can be fixed, til until we can make sense of it. and by the way, if you can think of any way in the world this monstrosity can work, scribble it down, get it on the screen because it is not in view for anyone else. lori: what is worse, obamacare or a subsequent default? >> why did you bring the debt ceiling into it? the debt ceiling is not the place to play. lori: that is where they are playing right now.
you don't think that is part of the strategy? >> we have until october 17. right now the government will be shut down as of midnight tonight. that is the horizon we have to face. if we move to the shutdown, we have an entirely different political scape and we had to deal with. this president right now you just heard him trying to change his rhetoric desperately because here's the reality, the first elected official to talk about a shutdown was not john boehner, it was senator majority leader harry reid. the reality is he invited a shutdown. democrats are being absolutely irresponsible here and there is no other way to look at it. they know every fact i have laid out before you in this argument, every single fact the democratic party is aware. it was nancy pelosi who said
what is in the law originally when it was passed that we will find out what is in it. democrat of virginia said as recently as this past week we are going to have to implement it and enforce it to find out what is good and what is bad in it. this is the height of responsibility from the preeminent leaders. this is the kind of irresponsibility republican party is contending with and of course the national liberal media providing a closed feedback loop for the accolades. lori: it is interesting the bigger question of what will this do for the entire economy because we have such a calendar chock full of these legislative items. i hope you are right, i really do. >> history showed in the shutdown there was no significant economic impact. there was a significant rally
that ensued 17 years ago as a result of the resolution. adam: it was a different economy then. >> should we just recognize its history? we understand that, the facts and experience, that is our experience. obamacare should be stopped right now. any means possible. it is disastrous the taxes applied since the great depression. lori: i think we have to run. >> we are americans, we can handle it. i am delighted to be with you. you can catch each and every evening 7:00 to 10:00 eastern.
speaking on the affordable care act legislation rollout and the possible shutdown. feeling queasy may not be the dismal stock performance. we would play with apples new stock performance had to do with it. adam: and the government insider trading case against him goes to trial. lori: if anybody knows how come it is john mcafee. escaping authorities in belize. now ready to help you outsmart the nsa. but first, credit report. [ male announcer ] imagine this cute blob is metamucil.
lori: as we do every 15 minutes, let's check the market. nicole petallides on the new york stock exchange. the high government exposure. taking down to a shutdown. nicole: you have to think about the fact these companies get a lot of their revenue whether it is 20% or 50% or more of the revenue from the government.
this can be lost revenue in the near-term. if you are banking on a government shutdown, goldman sachs advised you can start betting this will be under pressure. some companies most dependent on revenue include harris corporation, public services and so keep an eye on these guys getting a lot of revenue from the government. that will not be a good sign. >> thank you. adam: one guy who knows how to find revenue and earnings is charles payne. taking a vacation sort of. taking us all to cancun. >> we use tripadvisor. the company firing on all cylinders. the typically beat the street by a good margin. the company is growing, taking market share, while growing industry that is very explosive
and only in 30 countries. they will continue to grow, see them get china presence and all that. moving into restaurants have coverage 1.3 million restaurants which is something impressive. what i'm looking for is the next leg up. once we clear that the stock goes north. adam: we had a story about the firm that had raised funding for expansion same-day hotel bookings. >> they might be a potential rival. this is a pretty competitive space but the guys who carved out these footprints, 50 million mobile apps downloaded already. obviously very attractive place, but they have a huge lead on any would-be rivals. they don't look to squander that
lead, i don't think they will. lori: a breakthrough in relations with iran, the discussion president obama meets with benjamin netanyahu. adam: and so far looks like obamacare is on track. it may be a whole new world when you wake up tomorrow. so i can reach ally bank 24/7, but there are no branches? 24/7. i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water.
it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.
>> 23 minutes past the hour, this is your fox news minute. lawmakers have until midnight to strike a deal to avert a government shutdown, but congress is still battling over obamacare. the house approved a bill funding the government house today delaying obamacare by a year. senate democrats have vowed to reject any measures that undermine the controversial health care law. israeli prime minister angevin netanyahu' is meeting with president obama today to discuss the apparent breakthrough in relations between the u.s. and iran. their concern the outreach is just a ploy to ease international sanctions and buy time to develop iran's nuclear program. former italian prime minister
has thrown italy into chaos again. ordering his party to quit the country governing coalition. reunited over the health of the economy. the prime minister said he will seek a parliamentary vote of confidence this week. those are your news headlines. lori: we are up to date, thank you, lorne greene. the house and senate decided whether or not delay obamacare for a year, government shutdown is limited. that will not stop the formal care act from going into effect. jeff flock with more for us. jeff: taking the pulse out here. steven tucker, who says the big concern is money. look at what president obama said last week at the global initiative about the cost of this. people look and see they can get high quality for formal health care less than their cell phone bill, they will sign-up, right? what do you say? >> my cell phone bill isn't
almost $4000 per year. to hide the massive cost, in this you're going to see average income for a family of four, according to the 2012 u.s. census, this is the real cost of obamacare approved health insurance. 11,893. the taxpayer will be artificially reducing that premium by $8363 which leaves them with $3529 that they pay in premiums. >> that is the cheapest policy. >> it exposes them to $12,700 out of pocket risk each year. this is how it is hiding. jeff: you have a little thing, this is why it is fascinating. these are the mandates on this sheet, those are the mandates. >> 1260 federal and state imposed mandates. here'here is what they look like
rolled out. this is the reason health insurance cost so much money. they are not all medically necessary expenses. the list goes on and on. >jeff: cost of health care not addressed that it is going forward whether anybody likes it or not tomorrow. lori: jeff flock, thank you. adam: knocked off the top. coca-cola no longer the most valuable company. who reigns supreme now? lori: the guest list, the market impact. the market really does shutdown. how bad it could get if congress doesn't get its act together and fast. ♪ [ indistinct shouting ]
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lori: edition of stocks now. it has been 15 minutes since we lasted check in with nicole petallides live from the floor of the new york stock exchange. forget coke versus pepsi. now it is coke versus apple, correct? >> we have big news here. i'm here with jeff frampton of intergram. he is global ceo of the company. they have this great survey and they look deeply into different companies, brand recognition. give us the big news. coke is not number one anymore. who toppleed? >> apple is now number one and google number two. that means coca-cola goes down to number three this hour. >> four is ibm, microsoft, ge, samsung. what happened? >> what happened? it is quite amazing when you look in the top 10 there are seven tech businesses in there. so there's a big message in that but if you take a look at
coca-cola, they did actually increase in value. they went up by 2% this year and -- >> wait let me -- >> no doubt bit. but nobody can really top apple at moment. all you need to do is look out the store. >> let's talk about facebook, what happened to facebook? >> they have gone up. the highest riser this year. they managed make money out of it, didn't they? through using mobile so now their brand increased in value. it all has to do with earnings. >> it was tell them, bye-bye. >> bye-bye blackberry i'm afraid. and bye-bye to yahoo! as well. >> credit suisse? >> yes indeed. three great brand. doesn't mean they're gone. means they're not in the top 100 anymore. >> you're standing here from interbrand. they can go back to interbrand.com if they want find out more. brand recognition, strength against competitors what are some things you're looking at in particular? >> the first thing we look at is a company's earnings.
what we're trying to do is work out how much money you make out of your brand. >> okay. >> the second thing is the role of the brand. how important is it in choice? so when you're deciding whether you will have a her may or prada, how much does that brand after affect your choice. final thing is your brand strength. that is way of looking at loyalty. how far into the future might you buy it. we're not just looking outside the company at communications but inside the company at management commitment and things like that. >> do you have some favorite brands on the list? >> i couldn't possibly have favorites but i do think people love brands like apple. i was really pleased to see discovery channel coming into the list this year and chevy too. great brands. >> neat. what is, when you're doing this, obviously they use bloomberg and thompson and looking at financials. you talk to analysts and talk about what people really want. when people are shopping i'm really buying this because i really wanted to be a what every and no imitation.
>> absolutely no imitations whatsoever. >> jez, you always do a great job. unbelievable news now that we have the top spots of apple, google and coca-cola, number three. back to you. adam: nicole petallides, no imitation for you either. thank you very much. major averages are in the red echoing investor concern over potential government shutdown. our next guest says the shutdown is not likely to last dong long but if it does we could end up in another recession and might take years to rebuild the economy. joining us david kotok, cumberland advisors, chief investment officer. why would it take so long? we were down fora month. economy went up 3% and economy was chugging forward. >> if this is short term, that is exactly what will happen, if it take as long time and get into the debt limit fight and i happen to think is coming, that is different political construction and more power in the house among the republicans and in the caucus, this then
gets prolonged. we lose a lost bdp at the rate of .2 of 1% a month, something like that. it gross because it has a multiplier effect t introduces uncertainty which raises risk premium that would be longer shutdown. it would hurt markets t would hurt investors. it would hurt the united states. lori: when you say it would hurt markets we know october has a terrible track record of crashes, 1929, 1987, 733-point october 15th, 2008 recently. what do you mean by hurt the markets, david? >> well, i, i must admit that i remember a few of those because i've been around a little bit. if you think of a correction in the market as somewhere about three, four, five, six, 7%, something like that, the market can absorb that. it already has done so with about 40 or 50 points off the s&p. but if you think about a bear
market, 20% move, it would take that kind of a shock from this fiscal denies to do it. could we do it? yes but to do that we have to measure shutdown in weeks and perhaps even a month. and, frankly, i hope that's avoided as does, as is the case with most of us. adam: david, most investors and analysts we're speaking to they expect the government, congress to work out some kind after solution to the continuing resolution but it is the debt sealing that is troubling. you said in the note, that president will ordered payments to be made because the u.s. can not allow default through executive order. does that raise constitutional issue because can the president do that? if he can, why doesn't he do this t put calm and stability to foundation in the future. >> the answer to question why is enormous and profound. if we could only find the explanation we could find the antidote to this behavior and get it over with.
if the president is in a position where he doesn't have a debt limit, he has to pay bills, he can not default, he says he can't permit the default, this is the clinton prescription from yesteryear which was not tried and was prepared, the answer is i have to protect the citizens of the united states. therefore i will order the secretary of the treasury to make the payments. he will be sued. we'll litigate it. there is a lot of constitutional arguments. most of them stacked against this but resolution will be down the road. and the president will demonstrate historic action to save the country and blame the republican caucus for putting us in this mess. lori: so politics, wall street, david, do you see a growing disconnect here or are you actually acting in concern, i know this conversation is basically focused on what if, how this will all unfold. you manage 2.2 billion and you say some of equity managed accounts do hold cash positions as high as 50%. what is your advice to average
investors in this environment? >> i have redeployed a great deal of the cash in the selloff. i did a buying round this morning when the market was at its most red. i still have a small cash reserve. it is now a single-digit number. i intend to take advantage of this weakness to be fully invested because, we have to have resolution eventually. we can not have no the government in the united states. so lien ticks bang their heads together, there will be some form of a deal because there has to be a deal. and once that becomes clear, markets go higher, maybe a lot higher. >> david, thank you very much for joining us on markets now here at the fox business network. lori: is the street underplaying the impact of the government going after jpmorgan? analyst dick bove says yes. he speaks with charlie gasparino next. adam: apple's new operating system is supposedly making some people ill. does apple have to do something about it? ♪
try align. it's the number one ge recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align. >> i'm david asman with your fox business brief. macy's will increase its holiday hiring this season. the retailer will hire 83,000 seasonal workers up from 80,000 last year. jobs will be at macy's and bloomingdale's stores and call centers and distribution centers
nationwide. siemens will eliminate 15,000 jobs worldwide by the end. year. the german engineering company will restruck and cut 5,000 jobs from germany and 10,000 from other overseas operations. mark cuban is expected to testify against his insider trading trade trial there. security securities & exchange commission i have a accusing him using inside information to dump his talk of internet so much company mamma.com before shares dropped. the move saved cuban $750,000 in losses. that's very latest from the fox business network, giving you the power to prosper.
never hear the end of it. charlie gasparino and that very analyst dick bove from raferty capital join us now. >> dick, how are you doing? >> good, charlie. >> provocative note today, caught my eye. you basically said this. we should put it up on 9 full screen, this to me said it all. basically if they don't fight now, jpmorgan doesn't fight these charges and doesn't settle, the company does not fight, it will by the government forever. so how long is forever? >> well, would i say at least the next five to seven years. if you think about all the things that jpmorgan can no longer do, they can't do proprietary trading. they can't make investments in venture capital. they can't sell mortgages to low-income households. they're no longer make student loans. they can't to into the hedging market. they're not allowed to do certain things in the over-the-counter market they were allowed to do before with derivatives. the list goes on and on. >> right. >> if they, you're putting the company in a position where
you're eliminating businesses that they have been involved in. you're raising the capital standards. every time they hit one of the capital goals the government sets, the government comes back and raises the new standard. >> right. >> but you're forcing them -- >> i mean, i think people there would agree with you theoretically. i agree with you theoretically but how do you fight the regulators? one thing to fight the u.s. attorney's office, right? they are not a regulator, even though it sounds bad and ominous the u.s. attorney's office not your regulator. cftc is not their regulator. how do you fight the fed, this is deal is crafted with their number one regulator, the fed could theoretically pull the plug on these guys, break them up, how do you fight that type of regulator? >> you're exactly correct, the federal reserve does have the ability to break up jpmorgan. the fed can throw a cease and desist order at them which will change the way they run their business but they can take the things to court. there is no reason to just sit there and say look, you want a
billion dollars from us over victimless crime. >> that is the "london whale." >> yeah. you want 11 billion more for some mortgage activity? we'll give it to you. you want another who knows what for whatever new york state wants, whatever california wants, whatever these eight, you know, i'll give it to you. you just can't have stockholder money ladled out by the board of directors without -- >> you're saying strategically jpmorgan is making a mistake and jamie dimon, i talk to people inside that place, they really believe, this is one big step, this massive settlement, $11 billion, 7 billion in cash, in quote, unquote four in savings. that put as lot of this behind them. you're saying it will not put a lot behind the firm? >> absolutely not. just opens up the door for more blackmailing of the company. basically, if they pay this 7 billion plus four and they're at the same time going to admit guilt, the minute they admit guilt they're opening up a whole series of civil lawsuits which will come at the company.
>> right. >> they have also indicated to other agencies they're easy to get at. in other words, the company has got, what $360 billion in liquid assets. that a lot of money which a lot of government agencies would like to see and they will go after them. they will go after them to get that money. >> if i'm a shareholder of jpmorgan, here is what is scary about your analysis, you're basically tell me the market is not factoring in they're you out of all these business. take the settlement and put it aside. jpmorgan, when people think they will make $20 billion next year they're probably not because they are out of these businesses and and this is a way overvalued stock? >> i think that is true. basically we're saying we have a hold recommendation on the stock, but the fact is, and i'm on jpmorgan's side in this battle obviously which is why i want them to go to court. >> right. >> the fact of the matter to make the assumption once all this goes away, assuming it did go away and it isn't going to go away, but once it goes away the operations of this company will
go back to what they were before i think is pure folly because not only have the company, been stopped from being in all of these businesses, not only are they being restrained from the businesses that they're in but if you're a customer of jpmorgan do you really want jpmorgan to cooperate with the government and give them all the records of your business to put the government take a closer look at you? >> yes, i understand. although this is not the nsa scandal i would say this. what is your solution though? to break it up? because there has to be a solution down the road? >> well, personally i think the solution they have to go to court and keep the government in court for the next three to five years n that period i think it will become pretty evident that the government has gone way too far in terms of regulating the financial industry. >> all right. >> i think the president said earlier today, we can't risk the reserve currency. they're risking the reserve currency. >> by going after the bank. i would say this. this is unconventional view. most people would tell you settle with your regulators. if they do the opposite, they can't settle, that is their
demise. dick, thanks a lot. guys, back to you. lori: charlie, appreciate that very much. okay. as we do every 15 let's check the markets. keith bliss joins from us the floor of the new york stock exchange. keith, great to see you. we are in a selloff here today with people snapping up treasurys in a bit of safe haven. is this about a potential government shut down and subsequent debt ceiling fight? what is going on the floor with regards to the washington story today? >> it is a wait-and-see for what is happening now. over the weekend especially with the bill the house passed on saturday evening is fairly alarming because what that did it set the stage for the senate rejecting it and senate sending back a clean cr and house rejecting it. presto change-o we have the government shut down. we see the market responding to tons of statements coming out of washington. what happens with the shutdown debate and debt ceiling debate is symptom of larger problem which has us all alarmed which
is dysfunction in washington which is leading to institutional uncertainty and until we get it straightened out -- lori: does the volatility index tell you that? >> absolutely. a lot of other options, implied volatility you see is starting to spike up. peep are expecting increased volatility in a lot of those names, not only the vix but other options and that's what they're looking at it is a problem eminating out of washington right now even as the economy improves. lori: is volume slowing up bit here? >> i'm sorry, say that again? lori: story on volume. >> volume is not good. people are on the sidelines f you trade at highs and high beta portfolio you're sitting on sidelines waiting for theatrics to play out in washington, d.c. to make a move on the short or long side. lori: keith bliss, thank you. >> my pleasure. lori: the most popular wild child is at it again. adam: what eccentric billionaire john mack a fee up to now. and how it will help you, he knows a bit about this, hide
international manhunt late last year in connection with a murder of a neighbor in belize. he says he is working on a new badge get to follow the nsa. would set up super local, supersecret wi-fi network to swap files with users in a few blocks and out of reach of government snoops. he thinks he can get them priced down less than 100 bucks t might be the ticket for paranoid among us. revelations of the government spy scandal, reports that the national security agency has been hacking into millions of emails and video chats and phone call records in search of foreign terrorists. john mcafee may be too erratic to pull it off but some might work on the snoop proof network. remember even though you're paranoid doesn't mean people are out to get you. the problem with the wireless networks that used to be definitely with the old laptop world. with advent of wireless networks
everything is so open. you have to wonder can anyone honestly design it so it is truly out of the reach of nsa? lori: even though i have my wi-fi password-protected so my neighbor can't use it, sorry, neighbor,. >> p was free bandwidth which is open and great target for hackers any way. i wonder if they are able to do it. he is antivirus guy. >> i put my money on him. >> yeah. adam: dennis kneale, thank you very much. lori: thank you, sir. is your iphone making you seasick? apparently you're not alone. some more than 200 million users who upgraded to ios 7, they're reporting gnash shaw, headaches, vertigo caused by the new operating system. experts say sharpness of the screen and motion of icons could be to blame. good news may be a solution. to reduce motion on the screen go to settings, then general, then accessibility and turn on
motion. adam: really? don't text while you're walking? pay attention to where you're walking. >> you have walkers rage, walking down the street. adam: i own the streets of new york. you when you walk into new york you have to learn it is aggressive body slamming walking. >> right. adam: do you really think looking at phone you will get -- lori: look, i can't walk and chew gum simultaneously. that whole new skill. adam: drive something whole another -- lori: oh, yeah, forget it. adam: in other iphone news, be careful for bidding one. one typing error caused her to bid it 10,000 for a gold ios. seller canceled the transaction. it has been in heavy demand. a number of phones are selling on ebay more than $1,000. they know it is not real gold, we hope. senate just minutes away from getting back to business and killing the house's measure to keep the government running. former utah governor jon huntsman says the shutdown won't last long but the gop has to
realize they won't win the obamacare battle. he joins tracy byrnes and ashley webster next on fox business. don't miss it. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade-proud to be ranked "best overall client experience." help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven.
ashley: welcome back, everybody. i'm ashley webster. tracy: and i'm tracy byrnes. so we're less than 12 hours away from a government shutdown. lawmakers are digging and president obama says he will be meeting with congressional leaders later today. we have former utah governor and former republican presidential candidate jon huntsman. he says the gop has to face reality. he is our special guest next. ashley: well investors are bracing for the worse from washington as stocks continue to slide, coming off the first losing week in a month. is there more downside ahead? that is the big question and we'll have a big money strategist who will be weighing in just a few minutes. tracy: no matter what happens on the hill health care exchanges are set to open tomorrow and gerri willis is here with "what you need to know" about the next phase of obamacare. ashley: all right. we talked about those stocks
sliding at the top of the hour. let's go to nicole petallides down on the new york stock exchange. it's been a rough day for the market. ashley: nicole? >> it certainly has and we've been down triple digits the majority of this day. we're down 160 points. the dow is down 3/4 of 1%. majority of the dow components to the downside all day. this is not one sector, it is broad based selling. however what is interesting is trade remembers keeping an eye on washington. it doesn't seem that the markets are moving that dramatically, we're watching the vix, the fear index moving to one monthis is n the s&p 500 going forward. october is traditionally a tough month on wall street regardless. so that's another factor we'll continue to watch. will the jobs numbers come out on friday? all of these things are wildcards. today is the last day of the month, the last day of the quarter. sometimes it means volume or
volatility at the closing bell as well. so we have a lot of things we're following in addition to our storied stocks that we have different stories for each company. so there's a lot going on wall street but right now it is the washington showdown but we'll see not only today until the midnight hour plus october 17th, the debt ceiling. so a couple of things we're juggling here, just a few. back to you. ashley: isn't great. all that uncertainty too. nicole, thank you so much. tracy: speaking of, we have breaking news on capitol hill. the senate reconvening. senate majority leader harry reid about to open the session but soon the senate will take up the house's funding bill which is expected to be rejected pretty quickly. democrats have vowed to kill any legislation that includes a delay of obamacare. we're getting closer. >> quite a bow tie the gentleman is wearing. tracy: we have to head down back to capitol hill. rich edson with the latest from washington. rich, we're miles apart still,
aren't we? >> good afternoon. you're watching in the bow tie the senate chaplain. he is giving the morning prayer or now the afternoon prayer. last week he mentioned avoiding a government shutdown. seems as though that is the last resort here on capitol hill, prayer. that is what we're looking for now because when you look at what we're facing right now, a bill to pass the senate or house this past weekend funds the government for couple months, repeals the medical device tax, pays the troops, delays obamacare for one year. senate is about to send it back to the house and say, no thank you. so you have a number of different meetings with leadership right now. republicans are starting to meet on capitol hill on the house side. lawmakers say they will continue to try to find a way to avoid a government shut down. even the president says he is still working on a solution. >> i suspect i will be speaking to the leaders today, tomorrow and the next day. but there's a, there's a pretty straightforward solution to this. if you set aside the short-term
politics, and you look at the long term here, what it simply requires everybody to act responsibly and do what's right for the american people. >> now within the last hour we asked house speaker john boehner's office if he had yet to speak with president obama. they say no, not yet. the politics of this getting even more complicated however because what the senate wants to do is just extend government spending levels until the middle of november but those in the house are dead set on this fight over obamacare. >> the president has already agreed to a delay of a year for employers. why not for the american people in a train wreck that is about to happen to try to get our act together? >> the work that has to be done to pass the budget to keep the government open. the issue of obamacare is over. it was resolved in the last presidential election when the president was reelected and said
that he was going to continue with it. >> so we still have to figure out here on capitol hill something that can pass the u.s. senate and something to make it through the house conceivably with a majority of republicans on board. that is what house speaker john boehner is looking for. he could put something on the house floor that draws the attention of a number of democrats. could put a clean funding bill with no policies attached to it. like funding obamacare. that would likely pass the house though it doesn't spell all that good after future for house speaker john boehner's leadership. that is something the house speaker has to figure out next few hours as we get closer to a government shutdown. the senate is motioning to table, to kill that bill the house passed this weekend some back to the drawing board. back to you. ashley: you're absolutely right, rich. vote continues to as you say, effective kill the latest house riders attached to obamacare. tracy: we've been back to the drawing board so many times there are no more drawing boards left. rich edson, thank you very much.
ashley: with hope dimming that congress will indeed reach a deal to keep the government running past midnight what will the fallout be in the very first shutdown in nearly two decades? joining us former utah governor, jon huntsman and the chair of the group, no labels. thanks for joining us. i want to pick up on something you said yesterday on "meet the press." look, the be republican know they're on a loser. you can't have a all or nothing approach. so why is the gop taking this stand? >> well, ashley, let me just say that it is shocking to sit here and review the marketplace and to hear the reports from congress and to even think that the greatest nation on earth today, the largest economy in the world is being governed base on cliffhangers. that is total disservice to the american people. you have to admit it's a failure of leadership on both sides. the real losers are the job creators.
let's not forget we need to talk about jobs in an environment where job creation can take place. through all of this every boardroom across this great country, you have a lot of businesses figuring out how to deploy capital in the marketplace. capital expenditures expanding their base, hiring new people and an impossible environment which to do that. no labels which i'm apart, if you go to nolabels.org you will see a jobs first proposal. which i think at the end. day will be taken very, very seriously, it gives a pathway, a, for the political class to find an exit and b, find us time to cool down and get issues that will grow the economy and create jobs. in the run-up to the debt ceiling, says, let's standoff and push out the debt ceiling until unemployment hits 6.5% which the federal reserve says sometime next year. that is important because the federal reserve basically said they will keep interest rates at zero until that time. tracy: here is the problem,
governor, because i think i represent a lot of americans who say we're done with this. it is so frustrating and annoying to sit here and listen to the conversations over and over begin. supposed people we elected and can't make a decision what they will have for lunch and we're down to the deadline again and make decisions that don't count for anything except makeing a decisions for kicking the can down the road. >> how many decisions consequential for the great nation made at left ventth hour. tracy: they're the wrong ones. they're the wrong ones. >> we need a pathway going forward, we need to buy time for both sides to come together to talk about the issues that really do matter for this economy. tax reform, energy policy, education policy, all of that gets pushed way to the side when we have these kind of cliffhangers. what know labels is endeavoring to do is call a cease-fire. not a piece treaty. we'll not have a piece treaty anytime soon. but a cease-fire. let's step back from the precipice and buy some time until the unemployment rate gets
to 6.5%. mean sometime talk about the important issues this nation desperately needs to cover to create jobs and meet our competitive challenges going forward. that's what we're putting on the table. that is what is discussed increasingly by people on capitol hill today and presumably tomorrow and as we run up to the debt ceiling issue a couple weeks from now, you know, you think the government shutdown is a big deal? ashley: yeah. >> the debt ceiling issue is catastrophic if this thing isn't handled right because it is increase in the cost of capital for average americans, for bow owers, for small business people. what it does to the marketplace. the last time we talked about the debt ceiling discussion, i remember it well on the presidential debate stage, summer of 2011, job creation dropped by one-third during those weeks that is the price we pay for inability to get on the feet to talk about real issues. ashley: with that in mind, governor, should obamacare be tied to the debt ceiling debate which it probably will? >> listen, i think republicans i think if they were smart, they would say there is not much we
can do about obamacare but we can let it play out this first year and run on the consequences whatever they may be at the end of the year. now, former governor of a state that put a connector in place and exchange, which now has hundreds of different policies and hundreds of small business folks who are connecting to real policies, there are 17 other states going through the same thing. we'll know whether this is a good or bad thing in a year, not just hype and hyperbole but based on reality of the marketplace. i think the republican cost have the most powerful issue imaginable if they go to 2014 and let the thing play out and run on defects of obamacare. tracy: think how it falls on the back of american citizens. it plays out for a year. it could be horrible. could be horrible year medically for a lot of people. we spent tax dollars out the with zoo on a this all to find out a year from now it is horrible and using this as a political platform to get reelected. >> here is what will happen. we'll go from the political discourse now to the reef alty
of connecting real people with insurance policies an the whole trick here how do you take costs out of health care in merck which is $2.5 trillion in size, roughly the size of the gdp in france? you do that by connecting more people to affordable, portable, accessible insurance policies. that is what a lot of these, changes are endeavoring to do. in our very conservative state of utah we had a one year debate how to close health care and the gap. every other state will go to the same thing. push out the mandate. get red rid of that. that is onerous penalty for people to pay the first year. see what the, changes are able to accomplish with affordable, access ab, affordable health care policies f that breaks down and we have real problems, the republicans are in a very strong position to say, we warned the american public about this. we have to reopen it. we have to give it some time. that around 2014 would be a strong platform which to run. ashley: former governor jon huntsman, thank you so much for joining us. we really appreciate it.
>> thank you. tracy: he makes so much sense which is probably why he is not in washington. ashley: reality he is co-chairman of the no labels non-partisan group but its aim is to combat the polarization of politics. began in 2010. look where we are. i'm a impossible task. tracy: bipartisanship is dirty word. ashley: you're right. >> i could think of a few others but i won't say them. uncertainty is weighing on the market but doesn't mean you can't find value out there. russell investments steve wood is coming up with some ideas. ashley: what do you really know about signing up for these health exchangeses? gerri willis will break it down straight ahead. tracy: first as we do every day at this time of day let's see how oil is trading as we head out to break. slightly down, under $100. the oil is slightly down. we'll be right back. you make a great team.
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and this pk is the inside of your body. see, the special psyllium fiber in metamucil actually gels. and that gelling hes to lower some cholesterol. metacil. 3 amazing benefits in 1 super fiber. tracy: it's time to make some money. charles payne is here. this hour we're drilling for profits with withs weatherford international. >> guys i like weatherford a lot. [laughter]
anyway i like this weatherford a lot. i've been talking about it for a long time, all year long. it is makeing a pretty quiet, nice rally here, near the 52-week high. it used to be a lot higher. i think the company turned it around. they had some issues. they were concentrating on unconventional drilling, tar sands, fracking those kind of things i think that will be a great sweet spot for them. i like what management is doing. look for margins to be where they were. they used to be amazing in 2008. that is when the stock was $50 a share. the next leg up, i'm looking for the stock to go to 20 and 24. if you go in there i think it could be a bigger player this is all the drilling going. real, real deep observe shurn stuff. directional tar sands. ashley: you're jumping here at this price? >> director reported this morning buying $1.2 million of stock. we're seeing a lot of insider selling. rare to see a stock make a move in one year. they're continuing to buy a huge
sign of confidence. tracy: would you then sell it? >> i would not naturally sell it. if the fundamentals change and sell it. if long-awaited correction comes i would like to buy on weakness rather than sell it. ashley: with regard to the market is this correction we've been talking about for years? >> you know, i think, this is the stealthiest bull market i have ever seen. this could be the stealthiest pullback we've ever seen. right? ashley: right. >> with all the other things as excuses. whether it is continuing resolution or federal reserve. this could be that real stealthy pullback. if it is i think it is fantastic because it came without any panic. not a lot of volume and sort of natural. ashley: true. >> i dig it. let it pull back because i think the last two months of this year could be huge for the market. i hope everyone has got some cash. ashley: excellent. tracy: got to get in. charles payne, thank you. >> thank you. ashley: time to check the markets. not having a great day. hey it is a buying opportunity.
why not? nicolenicole pet at the nyse. we've been down pretty much all day at haven't we? >> we have. that has been the tone on wall street, vix is near one-month highs today. i want to look at chipolte and panera. that is because morgan stanley came out and made some coals upgrading chipolte and downgrading pa nair a the chipolte upgrade they say has in class value scores. you know what that is an indicator of? future traffic. they think it is looking good and looks good they will have more traffic at chipolte mexican grill franchises and like in the future. in addition, pricing there is room for it to be even higher. maybe 5% lower than their peers on the core. so the pricing is good. they will have a lot of traffic. so far so good. on the other hand they downgraded panera and that is
because they think the shares there suggest consumers have a low value perception and are not pleased with the pricing at panera. back to you. ashley: all right. nicole, thanks very much. we'll be back with you at the bottom of the hour. tracy: you know i have never eaten at chipolte? ashley: you never have? tracy: rumor is there is one across the street. ashley: there is. it's good. tracy: have you? >> i'm sure i have. ashley: come on, nat. tracy: so these markets not liking all the drama in washington but we have an investment strategist here. he see as silver lining in the selloff. he will tell us where the opportunities are. ashley: but let's take a look where the u.s. dollar is moving right now. we see the markets move lower. the u.s. dollar generally weaker today against the euro, pound, canadian dollar. ing in much changing against the pace see but the japanese yen, we'll be right back.nst the u.s.
past today but would delay obamacare by a year. the senate has just defeated the house bill. israeli prime minister benjamin netanyahu is meeting with president obama is discuss an apparent break through in relations between the u.s. and iran. the israeli leader is concerned about the outreach of iran's new president rouhani is a ploy to ease international sanctions and provide time to develop iran's nuclear program. the second appeal trial has begun of amanda knox. they required a new trial over her acquittal. she did not return to italy for the trial and isn't required by law to do so. those are the news headlines on the fox business network. now back to ashley. ashley: lauren green, thank you very much. appreciate that. it is a congressional game of chicken on capitol hill and stocks taking a hit with the s&p seeing its biggest drop since august but my next guest says, hey, the shutdown selloff is a
great chance to buy and especially among mid-caps might be the place to be. steve wood, chief market strategist at russell investments. we just had the news, here we go. the senate voting down the latest house bill. this will go down to the wire. there is grow being expectations now that come one second past midnight the government will be shut down. as an investor, we can see what it is doing to the markets. what are you doing? >> well, we knew this brinkmanship would happen. there is a lot of political definition taking place here. so from our perspective we try to avoid politics and we often talk about policy. what are impacts of policy on economy and portfolios? this has been, as charles said, a great stealth market. ashley: yeah. >> if you look back to march of 2009 this has been one of the better bull markets since world war ii. in that environment -- ashley: is this a correction we're seeing though? >> it's a small pullback at present though and one of the issues this year is the market has been so strong there haven't been a lot of pullbacks so when they do present themselves you
have your laundry list ready, you've done your research and you know what you're looking at and you know that will be globally defined research. so when we look at multiasset strategies of stocks but it is also bonds and infrastructure. looking broadly across asset classes what is it you want to buy when the pullbacks happen and what you are like hi 20 do. ashley: volume is very low right now. you can't blame an investor who is very uncertain what happens next who is just watching but you think it is time if you've got, you know, the heart for it get in there and get these stocks at these prices. >> yeah i think so. as i said you don't want to be reckless and do anything. ashley: no, no. >> if you're strategic, stock picking will be a lot more important. ashley: which area do you like the most? >> i think right now we look at the u.s. the u.s. right now will have a little bit of a pull back we see happening in front of not only of the shenanigans in washington but also what the federal reserve did with the taper. there will be accommodative federal reserve.
earnings look okay. ashley: that is true around the world. >> we're to some degree the central banker of world. providing liquidity in the u.s. and earnings story looks good. what companies can look into the revenue story and have pricing power. you brought up mid-caps. small caps, look at russell 2,000 that is up 27% year-to-date. look at dynamically, cyclically exposed small caps is up 30%. valuations if they get more attractive would be one area we look. europe, also, we think the fat tale tail, of that european risk, structural risk is diminished significantly. ashley: despite what is going on in italy? italian business is normal for italy. >> government instability in the italy is not a news break. that is just the way it works but the economy snapped out of a recession. looking in europe for long-term investor makes sense. also asia. you were talking about japan earlier in the day. ashley: yeah. >> japan, abe-nomics, the
quantitative easing they're doing is tremendous -- ashley: despite the big sales tax that he might be putting in? >> correct. they're trying to figure out what is the best way to get the pro-growth policies with the tax revision but also japan became interesting. so if you look at japan it has got volatility, positive and negative but looking at ways to understand the currency, japanese investments. so i think china, stablizing japan -- ashley: pmi number in china was a little disappointing. >> correct. that is the landing process. so we'll get lumpiness in the data. china has engineered a slowdown. they're growing too fast. too much credit. so interest trying to grow like more in the 7.5, a lot less than like 10 or 12%. it will be lumpy but they're engineering a landing in china. we think they will be by and large successful. ashley: very good. lots of information as always. steve wood, thank you for being here. happy birthday to your mom. we have said we would get that in there. >> happy birthday, mom. ashley: in green bay. hello cheesehead. tracy: do you brag about that?
ashley: in certain places, not everywhere. i have a cheesehead. it looks very fetching. tracy: here's a big question, how will obamacare affect you? well ahead we'll take a closer look what you need to know to be prepared for those exchanges when they open tomorrow. ashley: let's take a look at some of today's winners and losers on the s&p. there are some winners out there. tenet health care up 2.56%. chipolte, tracy hasn't been there but other people have. it is up nine bucks at 2.25% gain today. pretty impressive. we'll be right back. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪
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the senate rejecting the house funding measure which included a one-year delay of obamacare. that got shot down, so this goes back to the house. political ping-pong game going nowhere as the clock ticks toward midnight. tracy: all right. on to better news, the market is down. ashley: better news. tracy: we will go down to nicole petallides on the floor of the new york stock exchange. can we turn it around? nicole: let's see. we are off of the lows. there are some winners on wall street that have hit new highs. but i'm here to bring you jcpenney down 2.5%. not such great news. a 27 year low for jcpenney as they issued shares raising a billion dollars, obviously that is to try and keep their venues and associates happy.
the ceo noting that was the purpose of this move. however the ceo has been under a lot of pressure because everybody was wondering what he was talking about when he said we don't have to raise capital. he has so many companies those who wanted to open a store within a store, he is being sued. we will see what happens when jcpenney under intense pressure. that tells you something. back to you. tracy: jcpenney disciples, god bless their souls. may not be the sharpest tools in the shed, but they are loyal. ashley: talking with the sharpest tools in the shed. it is a government shutdown, obama cares rollout expected to carry on tomorrow so what does that mean for you? is your insurance plan going to look a whole lot different? gerri willis here to explain. >> i wanted to talk about the
individual mandate. tomorrow is the day you have to have coverage, your wife, your kids, everybody has to have some kind of coverage. you can get it through your employer, a number of the federal plans will qualify for this. as to some of the private exchanges. you have to go to the obamacare exchanges which open tomorrow, but after talking to people, interviewing people, it is clear these exchanges are not ready for prime time. you would be better off waiting a week, a month, two months until they get their act in shape. you don't have to have insurance until january 1 of 2014. ashley: even then, they would rather take the fine then sign-up. >> those numbers ramp-up in coming years. this is on a curve going up,
some point you're going to have to participate. >> we are almost at that amount to work out the kinks. >> you can sign on by march of 2014 and it will be okay, but i think a lot of people will stay out of the market, particularly young people. ashley: that is the whole thing. >> i agree. the devil is in the details. rules and regulations saying they don't know what is in it. let me tell you, one of the biggest threats to the system as we alluded to it in the intro is that the private market, corporate market where we all get our coverage or companies give it to us will start looking more and more like the obamacare exchanges because they don't want to offer 15,000 different plans, they want to offer one. not good news.
it will be a very hot topic tonight, we are talking all about it. tweet me at gerri willis. ashley: good stuff, do not miss "the willis report" tonight on fox business. tracy: we have to stick with this story. we're going to head out to jeff flock in illinois with an insurance broker all day helping businesses adapt to this upcoming reform requirements. jeff, what is going on? jeff: we are on main street in roselle, illinois. you deal with these businesses trying to have insurance. want to put the quote up, if you like the insurance, that you have got right now, don't worry about it. they will not take it away. you are getting letters like this one here that people are sending from blue cross blue
shield. because of the changes in the health care law, the plan youv . >> not just that we are doing away with it and fairly, they will give them a replacement plan. if you look at this letter, take a look at the out-of-pocket expenses earned. because of the changes, keeping the plan outlined. look at the replacement plan. this client had a central agents say total pocket expense $3000. the new plan because it has to comply with the bronze plan design and exchange, $12,700. >> we only have the top for a period >> 13 health insurance carriers. they pulled out the individual market, so we know longer offer products to people and individual family medical. these are the carriers that had
the good prices. this created an insurance monopoly. five or six big carriers left and in 90 days we become taxpayer subsidized utility. jeff: i tell you, come back here in the year, might be something like a travel agent. remember travel agents? there were a lot of them out there. insurance brokers may be like that. would you like fries with that will be his new job. tracy: i just used a travel agent on our recent trip. jeff: steven is a good one, he may keep his job. but if you are not good. tracy: thank you, jeff. ashley: and yes, i will have fries with that. the first time in history, the fha is getting a bailout to the tune of $2 billion. former fannie mae executive coming up with his take. tracy: let's take a look at how
remaining for load staff. marking the largest pilots hiring in more than a decade. the doj is opposing the planned merger with u.s. airways citing concerns. macy's will hire 83,000 seasonal workers. and yale university announced a record $250 million gift from an alumnus. from 1954 graduate charles b johnson. he retired as the chairman of resources. it will help fund to new colleges and allowing schools to admit 15% more students each year. at his latest from the fox business network giving you the power to prosper.
your tax dollars. how about them apples? $1.7 billion from the treasury. the first bailout in the fha 79 year history. joining us now, former fha manager. it is somewhat laughable $1.7 billion can go without approval, everybody seems to think it is okay. >> you are absolutely right, tracy. what is unfortunate is fha is woefully short of capital. if congress made it mandatory that it holds 2% of its outstanding insurance in capit capital, it has no capital. that's a shortfall of about 20 plus billion dollars. in addition, if it were looked at from generally accepted principles, it is $25 billion in solvent to the tune of negative $25 billion. total capital shortfall is
$35 billion. tracy: is this going to do it, is this enough to get it back on good graces, or will they come back to the bailout drawing table again? >> i think the way they calculate their capital is accounting principles, it's on mechanisms, but the real issue here is what is the next three or four years hold for the economy. we are four and half years into an expansion. the average expansion last about four years. if there is a recession anytime in the next three to four years, fha is in a world of hurt. tracy: you don't believe the recovery so to speak is actually going to help the balance sheet at the end of the day. >> i don't think so. it keeps putting on more business. now there's a push by the realtor group that always pushed the realtors and community groups for fha to do much more risky lending which will create
more problems for fha, so the future is not a good one. tracy: how do you get rid of it? politically, how can you get enough votes, enough backing to finally get rid of this thing altogether? >> it really is a great question because fha has made foreclosures commonplace. the first 30 years it had virtually none. 1975-2000 it had over 3 million. even worse for low income minority borrowers. so really getting rid of it is important. reforming it is important, very hard to reform, very hard to get rid of. the act that came out of the house financial services committee makes a good start at reform, more needs to be done. fha has been very resistant to reform. national association of realtors despite reform at every turn. tracy: what would your
suggestion be for this behemoth? >> my suggestion is they look back at what made them successful in the first 30 years, which was balancing risk and not putting people into homes they couldn't afford. they got off of that in the 60s and on the risky track ever since. they need to get back to that. or they need to get out of the business and tara leigh and if there's a group of people who need help, help them with down payment assistance, don't put them into more debt, allow them to build up equity over the long-term. fha has created more problems than it solves. tracy: i am not betting my kid's college fund on the fact they will not come back for another bailout. there will be another bailout, i am sure. we will have you back to talk about it. ashley: breaking news on capitol hill. rich edson with the very latest. rich: the senate has sent a
clean government funding bill with no other policies attached back to the house. we understand what a house republican counter offer is going to be. this counter offer increases the chances of a government shutdown. what house republicans are discussing to do is a one-year delay of the obamacare mandate, test that the government funding bill and cancel subsidies for members of congress so they cannot be health care exchanges and by their own health care. the one-year delay something the senate has explicitly said and democrats explicitly said they will not go for so we're just doing ping-pong in with no sign of progress on something that can actually pass the senate, passed the house and make it to the white house. ashley: rich edson, thank you so much. tracy: i like that. time for stocks as we do every 15 minutes before the new york stock exchange. joining us now. ashley mentioned political ping-pong. the market not liking it, is it?
>> it is kind of shrugging it off at this hour, but we are just going to haveeto move on. that is the way it is going to be down in washington. certainly it is a downward bias inside the stock market. tracy: we talked about how you're getting cash ready to jump in and buy it. this volatility will continue. >> it will continue. we had some momentum sucks out completely. once it gets down to the 1640 range, you're going to see the buyers step in to take advantage of the value prices. tracy: 1800 to watch out for? >> i believe i said 1600 on the s&p. tracy: on the downside, that is for sure. thank you very much.
likely soared to a new series record last night. but in their numbers are 10.3 million people tuned in. final numbers not out until tomorrow. winning an instant outpouring of rave reviews. most hyped finale since "the sopranos" six years ago. yet it was a slow build, took three seasons before "breaking bad" got even 2 million viewers per episode. by the first half of the fifth and final season viewers are almost tripled and the key at target adults under 50 had almost doubled. the real surge came this season. between the first half, fewer than 4 million viewers per show, and the second half when the audience up until last night doubled almost 8 million. how the series went from a narrow cable hit the mainstream breakout despite the violence premise talks about the tv business today. how powerful a marketing platform netflix really is.
it had the first four seasons online building the following for the show. binge of viewing. amc ran dozens of episodes leading up to the finale and viewers were converted into fans by binge viewing on netflix and after a decade or more of endless reality shows, fictional drama is back in time. you can get a good show and viewers will come to see it again and again. ashley: that is is the key. good writing and good acting, viewers will find it. tracy: i think people want to see you push the envelope a little bit. >> cable broadcasting is brought back a new age of viewing. lifting the bar for the broadcasters. ashley: very true. we know there was one high profile van who tuned into last night's "breaking bad" finale. the one and only warren buffett. the billionaire investor wrote
not even the oracle knows what will happen tonight. he even dressed up for the part wearing a black hat, the head piece of the main character walter white. this was his fourth tweet ever. >> that is when you know a show has truly gone mainstream because he is so far out of the demo, he is like 100. this shows the cool people. even warren buffett tuned in. he is not a violent guy that we know like walter white is. ashley: maybe there is another side to warren buffett. thank you. tracy: dennis, thank you. all right, coming up on "countdown to the closing bell." as the government prepares for a possible shutdown, one american icon is celebrating 125 years of being open for business.
the. ♪ liz: i am liz claman. is the last hour of trading. willet or won't it shut down? we are just hours away from a potential shutdown of the united states government. there is. lawmakers appearing to play a game of chicken on capitol hill while the rest of us simply wait and watch. kind of helpless actually. if that happens it would be the first fed set down in 17 years. as you might inspect investors are watching every single move out of d.c. like talks with all the major indices right now down off earlier lows. the dow jones industrials down about 172. right now we are not new that the moment. that is good news.
still down triple digits. the energy sector getting hit hard. names like bp, occidental, transition, all down on the belief that we will see a shutdown if the shutdown does, indeed happen. these are one and 2% drops, not huge, something to watch. consumer staples also getting waxed right now. we thought we would put up this spider xl peak. down about 1%. the names in here are names like coca-cola, monsanto, rentals american, pepsico, all leading the sector lower. in the thousand 2 million people have to stop going to their government jobs, you would stop spending too. this could be a blow to the economy. a huge loss of tourist dollars. if an agreement is not reached and that is what you will see. when non-essential workers are asked to stay home, here is what closes, landmarks including new york's statue of liberty, alcatraz and san francisco. national zoo in washington d.c. yes, the smithsonian museum will close