Transcripts For FBC Markets Now 20131015

Rich edson, thank you. Adam Meridian Equity Partners on the floor of the New York Stock Exchange. Thank you for joining us. It is good to see you. How do you make heads and tails of this back and forth. Is this just posturing . It is this typical actions we see come out of washington and the market has the typical reaction to that kind of movement. We have two parties that are posturing as to how this is going to play out. It seems to us this is not going to get accomplished in time, this is going to go through the deadline. We are hoping soon after that there will be some sort of solution it in place. The big question is if we go through that timeline, what happened to the market . That has helped our market right now find where its range needs to be at this point. If we do go through this deadline at the market seem seeo take that as very negative news, we will see a retracement in this market but my standing as they built enough into this market so if we take a step back, over a period of time, it is still going to look okay. Usually it is the investors and the people who dont seem to be the most stable getting this kind of congress, and yet you are the ones acting rationally. Why is there this sense of rational calm amongst how to go forward with equities based on the craziness in d. C. . Even though we have not been through this specific instance before in history, this is the posturing we have seen in washington on other issues. We can go back to 2008 sitting here watching cspan, watching the votes come in the house. This type of movement we can anticipate innthe market and the effect they will have on the market. Adam does this kind of reaction from the market reinforce the hand of those within the government can prioritize its spending should we missed the deadline . My answer in one word if yes, i wish we had more time. Adam thank you. Lori with all the uncertainty in washington for Companies Looking to protect themselves against possible default meaning dumping shortterm bonds. Sandra smith has a trade from the cme. Sandra it is a developing story. We heard it from fidelity saying they were dumping all of their exposure to shortterm debt, and then jpmorgan jumped on board saying they were dumping all their shortterm Debt Securities and now in the latest, citigroup chief Financial Officer of citigroup said they no longer holding any more exposure to shortterm government securiti securities. Citigroup has dumped any that have payments due before octob october 31. In a case of fidelity and jpmorgan, with any due dates coming up october 16 through november 6. Talking very nea nearterm, very shortterm Government Debt they are taking off of their books altogether. These have been long considered the riskfree assets to own Government Debt. Not so the case right now managing a Money Market Fund you have to minimize exposure that investors have two possible default. We still continue to see that play out in the marketplace today. If you are looking longerterm in the 10year, 30year, we have not seen a real sign of panic or volatility. But we are seeing the yield hitting their highest level at about three weeks right now. Getting a look at the 10year yield, to. 726. Remember we had top 3 . Were still looking at the highest levels for yields that we have seen in several weeks now. Starting to see a bit more of a reaction, but nonetheless some big moves by some big firms to get rid of their exposure, their risk for possible government default getting rid of the shortterm Debt Securities. Interesting development, and well see if we hear from more firms as we get big headlines on the floor right now from the white house like we are far from ideal. Im looking at it up on the big board at the cme, the market still reacting. Lori it is telling, thank you for showing across the yield curve. But how to imagine your colleagues on the floor talking about the fed and no surprise, ben bernanke did not want to commence the paper keeping rates slightly higher today overall depressed considering all of the uncertainty in d. C. Sandra i am standing in front of the Interest Rates in chicago for trading yesterday, so this is really the first day they have een able to react to the fact we are going on another day with no deal getting done. Theyre trying to cram it into this one quick session. Everybody trying to get things done. Lori it is costing the u. S. Government more to borrow money as of today. He pointed out the shortterm options. We will see that gives them any traction. Thank you. Adam citigroup is the latest of the big banks report, and it wasnt pretty. Following the footsteps of jpmorgan and wells fargo with revenue expectations. Profit coming in below the streets estimate. Citigroup hurt by week income revenue. Now trading higher. Also a pair of dollar names, cocacola and Johnson Johnson. Coke profit jumped 6 from a year ago to 2. 5 billion on rising volume but revenue fell in the company is planning volatility and emerging market, shares are little changed on that report. Johnson johnson among the two gainers on the dow. Beating estimates on the top and bottom line. Prescription drugs led the gains. The company raise the fullyear earnings guidance. Lori washington dragging down stocks today. Where should you keep your focus . Bring in david joy. Always wonderful to see you, david. I want to start with this news on the shortterm treasury auction, three months, six months, 35 billion in volume. The government will have to pay more to borrow money. Will that send a message that we want a deal, w were done with e shutdown and the debt ceiling is drawing ever so close. I guess to some extent it will send a message, but this is a prudent response by those who have a fiduciary responsibility liquidity will become extremely important in the next few days, and so you just need to protect yourself, make sure you have got that liquidity should you need it even though it is a low ability event that we default, it is nice to have that protection for those who need money in the very shortterm. Lori what is your Overall Investment advice really in the short term as we navigate these next couple of days and weeks . As far as stocks go, if your investment ric rises longer than lets say the next few months, absolutely hold on to your equities, the Global Economy seems to be in the early stages of something of a synchronized upturn. Higher equity prices in the long run. However in the short run is a problem for the ugly market that isnt necessarily being talked about with all the focus on the standoff in washington. That is all of a sudden now a fourthquarter gdp estimate has been brought down from half of 1 and yet earnings forecast have not come down. I think they have to. The market is going to absorb that a little bit, so i wouldnt be committing money in the short term. Lori so no money. How much cash . We have heard as high as 50 . I would be maybe a little bit higher than normal if cash is maybe five or 10 of your portfolio typically raise it by a few percent. But i dont think you had to do anything drastic if you have that little bit of a cushion. Keep this in mind, if we get a deal and all it does is push the debt ceiling deadline out another three or four months that will have a Chilling Effect on the economy as well and that will pressure earnings in the short run. You need to make sure your liquidity meets the measure, but in the long run we will be fine. The next three months or so will be choppy for the market. They will trade off a little bit. Lori we have been down this road before. Even after congress got the deal that led to sequester. People continue to flood into u. S. Treasurys bringing Interest Rates even lower, so senator reed was saying he is hearing rumblings of another downgrade as soon as tonight, and yet the market shrugging that off. Is there a discontent that continues to grow . Because we have heard it before. Theres clearly a disconnect. We ran up to 1725 of the s p. The market is trading at alltime high right now. The fact the yield is moving up suggest the market is anticipating better Economic Times Going Forward, not worse. The market has clearly decided that it is probably not going to happen, a default. If it does come it will be shortlived and we have seen this movie before and typically resolve it at the 11th hour, that still seems to be the prevailing sentiment here. Lori thank you so much. My pleasure. Adam the highestpaid executive in the United Kingdom is going to apple hoping it will fit nicely. What will the small town innthe head of native bring to the tech giant . Details about that coming up. Lori the stakes are high as a closing arguments begin in the insidertrading case against mark cuban. Adam take a look at metals as we go into the break. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn 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. Weve added cuttingedge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling activitywentyfourseven. And were sharing what weve learned, so we can all oduce energy me safely. Adam news alert for you. Mark cuban is looking for a buzzer beater as closing arguments in the insidertrading case against him. Expected this afternoon after six days of testimony in a dallas federal courtroom. The sec closes case against the Dallas Mavericks owner alleging he sold his shares in a canadian Search Engine company after learning the ceo is planning an equity offer. The case will be decided by a jury and it may come down to who they believe more. Mark cuban or the ceo. We decided to not come to texas instead recorded his testimony played on video. Lori clearly being charming helps in court. Lets get you updated on the market as we do every 15 minutes. Nicole petallides on the New York Stock Exchange. The Dow Jones Industrial the downside nearly 50 points after the wild backandforth action at one point even moving into positive teeritory after John Boehner Boehner spoke you saw the market jump off the lows about 50 points moving to positive territory. Harry reid brought or concern and jitters to the market. As we continue to watch the dow snapping the recent winning streak keeping an eye on the vix sitting at the height of the days. It shows you that there is still concerns and jitters on wall street, some looking at october 17 saying it is likely the market will sell off as we get closer and closer to that date and even pass it. Shares at 52 week lows as the analyst are jumping on board downgrading it but it came out by 10 . Sharp sales declines in asia and the middle east and africa, we will report more at the end of this month but in the meantime it has been under significant pressure, a lot of the analyst cutting it or at least cutting the price target. Back to you. Adam shakeup at the brewery. Heading to apple. Jo ling kent has more. That is right, apple with the latest big hire. Joining us here in the newly created role of Senior Vice President of retail and Online Stores according to apple. She will report the ceo tim cook and the tasks are big. Turning around achieving higher Profit Growth up in the global appeal, especially in china. I have seven stores and shanghai alone. That is more than the apple stores all in china. Buying back franchises, reducing costs, doing a lot more. Known as a digital evangelist. She knows apple well. She loves the brand personally and has pushed it. The latest runway shows the use the apple 5s phones to advertise and they use the ipad to make instore sales. They had joined apple causing to become apples vp of special connections. Excited about her rival, citing concerns of timkos ability to steve jobs did with direct access to the ceo she can influence cook in a helpful direction. It would help with the new anticipated product like the watch. I look at apples hot chart right now. An integral part of their revenue as they estimate apple sales ringing in 13 million per quarter in revenue on average. Adam. Adam million or billion . The stores. 13 million. Adam okay. Jo ling kent. Great job talking what a promotion from a woman from indiana. Lori good for her. I am woman, hear me roar. In the newspaper has to be true, right . Assuring the world it is here to stay. Adam stocks trading sideways. Charles pan here to help you make some money. Lori and why bob shiller thinks now could be a good time to invest in real estate. Its a growing trend in business do more with less wi less energy. Hp is he. Soon, the worlds most intelligent servers, designed by , will give ups over twice the performance, using forty percent less energy. Multiply thaacross over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Amelia. Neil and bz for teaching us that you cant create the future. By clinginto the past. And with that youre htory instead of looking behind. Delta is looking beyond. 80 thousand of us investing billions. In everything from the best experiences below. To the finest comforts above. Were not simply saluting history. Were making it. You really love, what would you do . [ woman ] id be a writer. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. What if i told you someone could pay you and what if that person were you . En you think about it, isnt that what retirement should be, paying ourselves do what we love . Paying ourselves do what we love . Stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. 23 minutes past the hour, i am laura gree greene with your n it. Al qaeda suspect known as abu anas allibi has pleaded not guilty to charges in new york. He was apprehended the u. S. Special Operation Forces in the d october 5. The nsa collecting accounts including those of many americans. The quincy Washington Post, the information came from documents provided by nsa leak or edward snowden. They did not deny the claim but said they did not seek details for most americans. Second dry ice bomb exploded at l. A. International airport monday night. One day after similar incident at the airport. The bottle dry ice exploded at 8 30 p. M. And two similar bombs in the vicinity. No injuries reported and the messiness dont believe the incidents are linked to terrorism. Those are your News Headlines on the fox news network. Now back to lori and adam. Lori make some money with Charles Payne now. They stock pick being held the next tech company. Pick it up. Charles i Like Technology a lot and i like that working a lot. This company is ubiquity networks. They do a lot in that sphere. Video stuff, almost everything they do seems to be revolutionary. An amazing smart company. It was up nice earlier today. I was aware of told you 3. 80 instead of 38, but they beat the street, the peg ratio, dont talk with us a lot, he talks about the top line growth. A traditionalist will stay with the stock because of that. As a consequence 39 short position. It has the towers. Nevenew Video Surveillance stuf, antenna stuff. Europe has been the biggest market for a while. Regaining traction. North america, south america booming and that should carry today. Lori to be that specific that many years out, is that unusual . Charles a company like this when i see it, quarter over quarter revenues up. They sell a record. Generating so much cash, i think theyre going to be acquired one day, i really do. Adam if youre looking for another place to invest beside stocks, fox business has awardwinning advice for you. Nobel award winner bob shiller shared his advice a few moments ago on markets now where he says the best place is to invest now. For the short horizon it might be real estate, it has been shooting up, much more momentum than in the stock market. The stock market is a little overpriced, i think. The Real Estate Market is not overpriced. If i had to pick one, it would be for the short run. In the longer run i think it might be just reversed the stock market will resume in the next decade or so or 20 years will resume the peak performance. Adam professor shiller receive nobel prize along with eugene and lawrence from the university of chicago. Lori the struggling smartphone maker, blackberry, took out fullpage ads in Nine Countries today to convince you and carriers that library we all should not abandon blackberry just yet. Blackberry tells the public we have cash on hand and a Balance Sheet that is debt free. The unveiling of the new blackberry product earlier this year was the Biggest Marketing Campaign in the companys history and not successful. Shares of blackberry are trading higher. Still Walking Around with one. Adam the question is do they ork . Sabotage, that is what House Minority leader calls the republicans, and this is her words. Reckless, radical behavior. A live report next. Lori thi despite a thursday thursday destiny deadline the market staying fairly resilient. How much wiggle room to they have now . The biggest winners and losers of the dow. Take a look. Adam time to head back to the floor of the New York Stock Exchange and thats where we find Nicole Petallides. Nicole, whats happening right now . Weve seen back and forth action on the Dow Jones Industrials. Right now still in the red and down at this point about 64 points to the downside. We have some names that have been showing some gains. Microsoft on an analyst upgrade with good potential there. We have watched cocacola as well. So that is some good news. Everybody continues to watch washington. The vix, the fear index has been to the upside. There is still concern about what will or wont happen. Either way it seems like a real wildcard. That is why weve seen the back and forth action. It does feel that nervous weight and see type of feeling here on the floor of the xchange. Lets look at a mover. Looking here at fedex, up 4. 5 for fedex with new 52high. Announceing a buy back of 32 million shares. It had a smaller program in place but now adding to it. It is now moving to a high of 122. 50. The stock is up over 30 this year. They did have some cash. They were able to do this. Reaffirms their confidence. It just shows they are confident in the company for the longer term and upping the buyback is always good news. That is why you see shares jump 4. 5 for the markets that are under pressure. Adam Nicole Petallides, thank you. Lori then there were two. Two debt plans. House republicans floating a plan of their own. The white house is calling it a ransom to pay the nations bills. Peter barnes at white house for the very latest. Peter, how you keep up with it all, were always impressed. Thanks, lori. The briefing from White House Press secretary jay carney is still going on. I just stepped out of it. In it he sad he hadnt, the white house has not seen any specific legislation from the House Republicans so it couldnt offer direct comment but it is said it is once again a product of the tea party and it as holdover, john boehner. It is trying to relitigate obamacare but it appears to have caught the white house a little bit by surprise. Carney acknowledging that this might be slowing things down in the senate and the talks for a bipartisan deal there between the democratic leader harry reid and republican Mitch Mcconnell. Take a listen. Were encouraged by the progress weve seen in the senate but were far from a deal at this point and so we hope that he, we hope that progress continues. Now mcconnell has reportedly stopped talking to harry reid right now because he wants to see if the house can actually pass this new proposal, this new legislation to try to open the government and raise the debt ceiling. And the speaker himself when he announced this morning kind of, wasnt clear that he has the votes to do that perhaps later today. Heres what he said. There are a lost opinions about what direction to go. There have been no decisions about what exactly we will do but were going to continue to work with our members on both sides of the aisle to try to make sure that theres no issue of default and to get our government reopened. Carney is being pounded with questions here what the drop dead rate really is for possible default by the federal government. The treasury secretary has said this thursday, october 17th, it will no longer be able to use extraordinary measures it has been using, like not paying into government pensions and such moves. Wont be able to use them anymore. Thus the risk of default is there and, however, there is push back on this question. He was asked specifically whether or not, in fact the treasury may have several more days at least to, before it has to really, before there is really xdate it cant pay its bills, particularly the bills on Government Debt and that by the way comes from no less a source than the Congressional Budget Office and here are some of the numbers. It says, it points out it actually could be the 22nd before the treasury is in trouble, maybe even longer than that, depending on its Cash Management and cash flow. It takes in 7 billion a day, spends about 10 billion but it does have some big payments coming up next week. On the 23rd, 12 billion in Social Security benefit payments. On the 31st, halloween, 6 billion on Government Debt and then november 1st, really, really big one, 67 billion to cover a number of entitlement programs benefits. So well see if exactly what this dropdead date is, particularly if we start to get down to the wire here on thursday with some kind of a deal. Lori. Back to you. Lori sorry, peter, how loud is the buzz on a potential downgrade . Well carney was asked about that. We know that fitch has suggested it might downgrade the governments aaa Credit Rating following the downgrade from, in 2011 but, no one here commenting on that today. Just kicking that to treasury. I asked to secretary lou. Declined to comment as well in the past. Lori thank you so much, peter barnes. You bet. Adam can Congress Actually do a deal . Lets bring in kevin hassett, aei senior fellow and former Federal Reserve economist and former workerred with the u. S. Treasury. Your credentials speak for themselves. You heard john boehner a few hours ago. Was that responsible thing for him to do. He is looking to get out ahead of the senate bill with couple things to add. This is normal in many debt limit debates before. Doesnt seem like theyre that far apart in the end if the gossip is right about what ultimately will pass the house. Think that is about what is going on. The house is taking that to use a framework to form its own bill and stick a couple more things in there. Thats again, that is what congress does. That is how they use the debt limit. How they done it 55 times in the past since 78. Adam i ask you question because i only imagine in the next few hours well hear the speaker refer to irresponsible, reckless, ridiculous. You just pointed out that both parties have used the debt limit for votes that are sometimes clean or dirty as i think it was you referenced in an article. In fact the democrats have done it more than republicans, havent they . Thats right. 60 of the dirty debt limit democratic congresses this is pretty normal. You have to understand that the house has been passing stuff that would keep the government open and would extend the debt limit. It just doesnt have all the things that the democrats want. They havent been moving forward with the houses ideas. Really this is a bilateral negotiation and it is symmetric. If they dont reach an agreement, then both sides are at fault. Now that is not the way the Mainstream Media is covering it but thats the truth. I think the house isnt going to let coverage on abc news determine their negotiating position. They will add couple more things they want to the bill. My guess they might get one of them by the time theyre done. Adam youre smiling and calm unlike a lot of my colleagues at other networks who are running around with their hair on fire. You think were close to a deal despite the white house statement that were far apart. Who is john boehner talking to at the senate . Is he . I think he s probably speaking to mcconnells people all the time but he see what is the senate is doing. My guess is that mcconnell had a couple of asks that the democrats in the senate didnt want to budge on. What theyre trying to do is get boehner to add those to a house bill, get it passed in the house because that will give mcconnell extra leverage. I would guess if mcconnell felt he was dealing with a honest negotiator making reasonable concessions on the democratic side we wouldnt see this new house play this morning this is clearly an attempt to begin a little bit of leverage for the Senate Republicans in their negotiations with the senate democrats. Adam do we get a deal before midnight on the 17th or do we go into the 18th without some kind of a deal . Peter always cover this stuff as good as anybody. I think he is exactly right. Im thinking the 23rd is the first day where we might not be able to make payments. 25th i think is a day where im pretty sure by then we wont make payments. If we go past the 17th the truth is there will be a few days where the government is probably going to be okay. And so the hard deadline of the 11th that the treasury secretary tried to give us is a false one. Im kind of hoping congress doesnt go past it. I think what might happen the negotiations drag on even as we get closer to the weekend. Adam that will weaken the democratic negotiating position, is it not, if calamity does not befall us on the 18th . The democrats are going to have to give, arent they . Yeah, i had a democratic friend tell me at dinner recently the thing they have been stunned about they thought market collapse would put a lot of pressure on republicans. Now the market did drop a lot. There probably is some negative consequences to this but it doesnt look like the kind of allout calaaity the democrats thought might happen in Financial Markets that happened. That is one reason why this dragged on. If all of sudden markets dropped would be racing to passbody legislation. That hasnt happened. I think in the end suppose your Interest Payment isnt one day and you hold a treasury. Are you going to go out and sell that for 80 cents on the dollar because they missed Interest Payment because of political impasse . You probably wouldnt do that. You or i wouldnt do that. We will get our money in the end. If that is what markets think the calamity is something a little ways off. That is probably i think it might well be well see us go past the 17th and not have a calamity that day. We dont know what will happen. Calamity would be response to irrational one true to default. If the market anticipates default at some point i think it would be catastrophic. Adam kevin, thanks for the calm words. We hear a lot of rhetoric which is anything but. Thank you. With washington know where closer to a deal on the debt ceiling deal, one big thing to watch, gold. Prices are down but well off session lows. The futures in the pits next. Lori we want to show you shortterm treasury bills, onemonth and sixmonth treasurys. Yields are much higher than average than the last couple months and that suggests to us that the Investment Community is growing a little more concerned that the u. S. Wont make good on its bills in the next couple weeks. This is where the nervousness is. Onemonth, 3month and 6month. Back in a moment. Im Dennis Kneale with your fox business brief. Of apple sent out invitations to a special event set for october 22nd in san francisco. All things d says apple is expected to unveil new versions of the ipad and ipad mini. The text of invitations beckons, we still have a lot to cover. The. Dallas fed president Richard Fisher sees no tapering in the fed bond purchases this month. Fisher a very critic of this program told reuters, quote, my personal opinion it is not in play. In bankrupt detroit, emergency manager kevyn orr Cutting Health benefits for 2thousand retired city workers. Canceling city paid Health Coverage that costs 605 a month for each eretiree. They will pay 100 to 200 to the retirees who must find their own Health Insurance on state exchanges. That is the latest from fox biz, giving you the power to prosper. Adam time for stocks now. We do it every 15 minutes. Well head back to the floor of the New York Stock Exchange with our own Nicole Petallides. Youre looking at some big winners. I am indeed, adam and lori. Lets look at a couple names on the move. Lets start off with dow component microsoft leading the way on Dow Jones Industrials. Analyst upgrade today. Jeffries put a buy rating up from a hold. Up to 42 target from 33 bucks. This is because they see good news with riding faster growth and wider margins of windows operating system licenses. That is good news. They see them benefiting from patent license agreements for smartphones and tablets running on Google Android operating systems. We want to look at tesla, which has run up so far so fast, about 500 this year. Wedbush puts new price of 240 up from 180. One of many reasons, mainstream car buy are more receptive to electric vehicles among other things. That is one thing they noted. It is upp3 today. Back to you. Adam nicole, thank you. Lori from stockses to commodities, gold bouncing off the lowest level in three months as it looks like a debt ceiling deal may be further off than we first thought when we came into work this morning. Phil flynn from Price Futures Group is in the pits of the cme with the latest reaction from the. Looks like they have dueling plans. Yesterday, gold broke a fourday losing streak. They settled up pretty good even when we thought a deal was on the table then. Then when we really thought a deal was on the table the market tanked, both silver and gold. When we saw a new plan by the House Republicans the market came roaring back but couldnt close higher, down 2. 0. Industrials metals like copper closed higher despite a bad fed manufacturing number. The other market down today, not so much because of the government is the oil market right now. Oil is down over a buck. Theyre bouncing off the key support they cant seem to break, 101 a barrel. Right now 101. 47 just off that level. Isnt it disturbing the talks with iran and four member countries in geneva seem to go better than the talks between the white house and the house . I dont know. Right now the talks seem to be doing good. Were taking some risk premium out and slowing demand expectations off the manufacturing data. Back to you. Lori all good stuff. Thank you, phil. Thank you. Lori stuck in the middle, a medical devicemaker pulled in a tugofwar between leaders in washington. Republican vowing to repeal the taxes. The president maintains that he would veto a plan that included it. Adam first look at some winners and losers today on nasdaq. When we de our commitment to the gulf, bp had two big goals help the gulf recover and learn 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. Weve added cuttingedge tenology, i can tell you safety is at like a neweepwater well capdo. And a stateoftheart monitoring center, whe experts watch over a drilling activi twentyfourseven and were sharing what weve learned, soe can all produce energy more safely. Our commitment has never been stronger. Lori keeping you uptotheminute on the debt battle in washington, gop aides telling fox business it probably does not have the votes to pass the deal in the house which it unveiled this morning. That deal would put the president , Vice President , congressional lawmakers on obamacare. It would also delay tax on medical devices for two years. The white house expressing its doubt on a debt deal as well. Press secretary jay carney saying that were quote, far from a deal at this point in the debt talks. Adam so aside from some house gop members who really want the medical device tax gone our own jeff flock is actually standing by in the orthopedic device capital of the world with an answer on all of this for us. Jeff . I want to get instant reaction to the news you just mentioned right there. Im surrounded by orthopedic devices. This is warsaw, indiana. You are seeing some of the devices were talking about. These are particular devices used to expand the spine and scoliosis. I have two ceos in this industry right now. Your instant reaction to the that the house doesnt have votes to delay on the tax . That is great shame. Tax like this on Companies Like ours emerging companies and not profitable. This is pose as great hardship. This is tax on sales. It is not a tax on profits. Youre not making any profits yet. Right. Same thing with you, tom allen. What kind of an impact, how do you pay a tax when you dont have profit s . You. Borrow money to do it, you let people go. Its a job killer. This stuff youre looking at here, these are hundred of thousands of dollars worth of stuff. It take as lot of money to develop this. It does. How do you pay your tax . We have to delay other development programs. The cost of the tax this year is roughly equivalent to the payroll of all the engineers sitting around me now. So, if we were not having to pay that tax to washington, we could double our Product Development headcount. It is amazing. Some people hate this tax. A lost liberal people. Wall street journal just had, or you should say the Washington Post just had a column saying very, very liberal columnist saying this is a bad tax, despite that it doesnt seem it will get the traction it needs to be even delayed, much less repealed. Adam jeff flock, thank you very much. Live from warsaw, indiana. Lori the best we can hope for in d. C. Congress kicks the can on the budget and debt but is that good enough . That is our twitter question. Next hour we want to hear from you so tweet us. In our newest feature, tech minute, why supermarket shelves may be soon watching you. Of the tracy byrnes and Ashley Webster take you to the next hour of markets now. You cant afford to miss it. Who found a magic seashell. It told him what was happening on the tradg floor in real time. The shell brought him gre fame. But then, one day, he noted that everybody could have a agic seashell. [ indistinct talking ] [ male announcer ]ight there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim om td ameritrade. And this pk is the inside of your body. See, the special psyllm ber in metamucil actually gels. And that gelling hes to lower some cholesterol. Metacil. 3 azinbenefits in 1uper fiber. Metacil. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture portunities. We enable you to reach global marke and drive forward with broader possibilities. Cme group how the world advances. Ashley welcome back to markets now. Im Ashley Webster. Tracy im tracy byrnes. Markets in middle, huh . Solution to budget and debt mess in d. C. Now seem farther and farther away. Gop house members throwing a new plan in the ring and dems calling it, well, sabotage. Investors dont know what to make of it all. The dow is down 56 points. Ashley neither can any of us. The best is Congress Kicks the can on the debt and deficit. Is that good enough . Tweet us and your answers are straight ahead. Tracy a big earnings miss at citi. But we have an analyst ahead to still likes the stock and well find out why. Ashley our newest feature, tech minute, why supermarket shelves may soon be watching you. Tracy a little freaky. Depend where the camera is, what exactly are they watching . Ashley hopefully just, first stop of the hour, time for stocks. Lets go to Nicole Petallides on the floor of the New York Stock Exchange. Nicole. The people who taste the grapes will be in big trouble. Take a look here. The Dow Jones Industrials down 52 points right now. What is interesting to note we actually moved into positive territory shortly after john boehner spoke. It wasnt even one full point. The moral of the story here our range has been volatile and gone back and forth with comments from washington but it only has been an 85point swing. That is our most narrow range since the middle of september, september 19th. That shows you investors are wary, theyre nervous, theyre jittery. Were seeing headlines saying theyre not close to a deal yet. ere getting closer and closer to october 11th date. You know the vix, the fear index is to the upside. That is the latest on the floor of the exchange. Back to you. Tracy the latest or not the latest. So confusing. Well see ou in a bit. Breaking developments coming fast and furious from d. C. As nicole pointed out no deal in sight. Republicans introduced a plan of their on solve the crisis but democrats branded it as sabotage. Rich edson refereeing the battle on capitol hill. Gee, i dont know how youre keeping your head on straight, rich. Im not refereeing anything down here. Dont drag me into this. What we had today, first of all pause in talks between the top democrat and Top Republican in the senate. They tried to reach a bipartisan agreement. They put that on hold right now. Both democrats and republicans in the house are at the conference lunches, caucus lunches trying to figure out a way forward. They were on hold here in the senate because they were waiting to see if the house could pass a proposal that the republicans put on the table this morning. That bill, by the, by a few hours after theyed proposed it basically was dead on arrival. Republicans couldnt get enough support. They couldnt get enough upport within their own conference. So here we are waiting for a next step. Waiting for democrats and republicans in the senate to looking for cameras to figure out what is going on. If you look at house proposal floating this morning, major problems within the republican conference in the house and strong opposition from democrats in the senate. We felt blindsided by the news from the house but this isnt the first time. Extremist republicans in the house of representatives are attempting to torpedo the senates bipartisan progress with a bill that cant pass the senate. So even if they do reach a deal were getting awfully close and procedurally it will be very difficult to get this done by october 17th, even if they reach a deal right now. I got to tell you, it only takes one senator in the u. S. Senate to raise his hand and gum up the works here that could take us well beyond the october 17th deadline. Back to you. Tracy rich evidence son, thank you very much. Weve been talking about the procedural nonsense of it all. It will take forever. Thanks, rich. Ashley so clearly the best we can hope for i think at this stage is a Congress Kicks the can on the budget and debt, putting off problems until february. Question is, is that good enough. It is our twitter question. We want to hear from you. Your answers are at the bottom of the scceen. So let us know, here with their akes on all of this is wall street journal senior economic writer and fox news kirsten powers, columnist for the daley beast and also a fox news contributor. Thank you both for being here. All right, kirsten, let me begin with you. All right, so we have a pause in the senate after all the excitement yesterday. The house is going nowhere fast. Are we going to hit thursday, the debt limit with no deal in place . Is that looking more likely now . Well i think the developments in the house probably are pointing, are not encouraging. Put it that way. Yesterday i was feeling more positive about the chances of reaching a deal because it seemed there was leadership in the senate where you have Mitch Mcconnell really engaged and harry reid engaged and they seem to come together with something that could potentially pass the house. So the question i guess is, are whether or not they can move forward with that and somehow get that brought up on the floor of the house because there are probably enough votes to pass it. It is a question whether boehner would actually bring it up which i think is a very open question. Ashley steve, we just heard from harry reid, the extremist republicans in the house again blowing up this all. To kirstens point can we get something in the house and can we get this all done before thursdays deadline . Well, look it takes two to tango and you know republicans are being obstinate, no question about it but so is harry reid. Im a little more optimistic than kirsten is getting this done. I do think it will get done before thursday. It will be ugly the next 48 hours, no question about it. Look, the house is saying right now, we can live with what the senate has sent over to us but we want those two conditions. Number one, we want to require congress to live under the obamacare law which is a 9010 issue with voters. And the other one is this medical device tax. Thats actually gotten a lot of votes from democrats too. So, yeah, i dont, personally, kirsten, i dont think theyre that far away. Ashley what do you say, kirsten . Can we deal with those points in place . Look, i was exactly where steve was last night probably and i just feel that the fact of the house is sort of come back and, rather than just taking something and moving forward, the fact theyre still willing to fight over stuff, lets say it not really going to change the world that much, that is what is concerning to me. The seems like the president rejected the house deal. So, you know, it is not, just, it is not confidenceinspiring. That said i have to believe they will reach a deal. Just i find this behavior so unsettling. Well, and again go ahead, jump, steve. Sorry. I was going to say, what the House Republicans are saying look we need something. We need something to reopen the government and extend the debt ceiling. Well not just give a blank check. The quite frankly tte only concession that was in the senate deal is basically that you will have Income Verification for people for the obamacare exchanges. Well that, even president obama said, that is just enforcing the current law. Not so sure that is enough for republicans. But kirsten raising an interesting point. The way this might get done is john boehner may just allow a vote in the house and have, you know, nancy pelosi provide the vast number of votes to extend the debt ceiling. That is always a tough vote under any circumstances that would be a violation what we call the hastert rule. Right. The normal, what john boehner normally done, i need to get majority of republicans to vote for anything before i bring it to the house floor. In this case that rule may be violated. That may be the way out of this. Yeah. Well, kirsten and both of you, well go to kirsten first, temporarily kicking it down the road and not very far by the way under the senate proposal, lifting the debt limit to february 7th, keeping the running of the government going through january 15th, were not talking away down the road, literally just around the corner. What will this achieve . This obviously this is no way to run a country. No question this is so dysfunctional. I will say the one area where the president has not really stepped up as much as he could on addressing the longerterm economic problems in this country, specifically the debt. So what is built into the senate deal is idea of appointing conferees to start looking at what are some entitlement cuts they can do and what are ways to rein in spending. In that sense, that would be a positive for this, that you have that built in. Something will force that conversation. Ashley all right. Steve, were almost out of time. You have the last word. Well, just you know, it is interesting that both parties want a shortterm extension of the debt ceiling in the budget. The republicans want a shortterm extension because they want to go through all this misery all over again in a few months the democrats dont want to live with those automatic spending cuts. That is why theyre thinking, but to revisit this in january is a way to maybe get some entitlement reforms and get rid of those cuts. Yeah, unfortunately, even if we resolve this by october 17th, well relive this again in january. Ashley for us in the news world it is the gift that keeps on giving i guess you could say. Kirsten, steve, thanks so much for joining us. Thank you. Thank you. Dont forget, for the very latest uptotheminute coverage of the d. C. , well, lets call it a mess. Its a mess. , visit foxbusiness. Com fiscalshowdown and twitter fiscalshowdown. Tracy hamster on a wheel. That is how it feels. Citigroup the latest bank hit by fewer mortgage originations missing estimates and earnings, revenue in the third quarter. Our next guest says the stock is still a buy. Joining us ubs manager derek devrie. Derek, thanks for being with us. Mortgage originations are down. Fixed income trade something down. You can blame the government on that. At one point it was used to offset the weak consumer. Where is this bank right now . Is it bettory be all brokenup into pieces than keep it together . No i, i wouldnt say that you look at the results. You mentioned there is a lot of headwind. Q3 was never going to be a great set of figures for this bank or many banks. If you want to take a glass halfempty approach. They are going for five 1 2 bucks. It will be a stretch to make it. I refer prefer to take a more glass halffull approach in general but on this stock in particular. If you look at bank, on returns in citi core, on regulatory capital are pretty consistently in the high teens. Despite that trading below tangible book. They print ad very good capital number which has take mao feel more comfortable about the ability to return capital starting next year than you were when you went to bed last night. You saw dta utilization. A lot of good things in the bank and the question is whether you have the patience to wait for those returns. Tracy dta, deferred tax assets, accounting dork with you there. You saying the market is not placing enough weight there will be a time where they use these deferred tax assets. You say youre glass halffull. Youre probably one of the bigger bulls on the street with citi right now. There are things coming down the pike, right . Regulatory issues. The housing market. There is a lot this bank is hinged on. Do you think it can surpass all that . Without a doubt. The question is not if it can surpass, the question is how long will it take and how much capital or book value will be destroyed in the process of that . Tracy right. So, you know, i get very little pushback when i visit investors, look in a decade this thing will be makeing a mid to high teens return on tangible book value. The question is what is going to happen between now and then. So, yeah, if you want to take a really negative view in the world and things youve been discussing on your show in d. C. , you think that will push us into a double or tripledip recession, book value will be destroyed in frankly banks everywhere. Tracy im with you 10 years out. I think whole sector, sun will be shining and fabulous. Between now and then, if i do have shortterm horse son and i have money today am i better putting in citi or better off putting it in the regionals . Look we have a positive view on regionals. Were above consensus on looking at regional banks. Were below consensus on city. That is not me but steeen. But we do have positive views there. He is a v constructive on key in particular. So it depends on your investment horizon. Tracy right. But i think on citigroup in particular, i think theres no doubt it is the cheapest bank in europe and provided we dont go into tripledip recession it will give you good returns both short term and medium term. Tracy you need a longterm horizon. Can we talk big bank, big picture, last few seconds. Jpmorgan, wells, they have all have the same issues. Do you feel all will follow the same path or will one come out ahead of the other . Our top pick is jpmorgan. The reason we like that because it has probably the biggest catalyst of all the banks. Theyre all relatively inexpensive in the money centers. Jpmorgan has 23 billion in litigation reserves and potential for a catalyst if ou get a settlement, global, farreaching settlement. That would be a positive catalyst for the shares f youre shortterm investor that would be our top pick at the moment. Tracy derek, good stuff. Thanks for being with us, sir. Thank you. Tracy keep it here on fox business for complete coverage of yahoo and intels earnings after the bell. 4 00 p. M. Eastern, david asman and Cheryl Casone. I want to point out on the call earlier the cfo on citi said they do not hold any treasury paper that comes due october 31st. Ashley kind of interesting because the debt debate going and yields are spiking on shortterm treasurys. Apple stores may be clad in played. Why they hired burberrys ceo. Tracy a look to drastic cuts that for insurance. Will other cities follow as well . Ashley oil trading down to 101. 42 a barrel. Suite be right back. 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[ male annouer ] join the nearly 7 million investors who ink like you do face time and think time make a difrence. Join us. [ ma announcer ] at edward jones, it how we make sense of investing. Tracy quarter past. Time to check on the markets. Nicole petallides on the floor of the stock exchange. Market down 54 points. What is going on nicole . Were watching molycorp very closely. This used to be a real wall street darling when you talk aboot rare earth. It is a different picture here. The cash cushion dwindled to insufficient levels. Announcing second major financing in less than a year of the could sell up to 230 million worth of common stock. Estimates negative cash flow for the third quarter. What happened rare either prices skyrocketed back in 2010 and 2011. China clamped down on exports of metals. Using alternatives as well for rare others. That hit not only molycorp but the whole group. As they note their cash positions this time, the stock is down dramaticclly over 21 right now. Back to you. Tracy thanks, nicole. See you in 15 minutes. Ashley time to make money with Charles Payne. Bucks right there, big elephant dollars. This hour he is blinded by the light with a major player in the solar industry. Solar, charles . Solar has been amazing. I dont think i made more money in any other segment of the market in year than solar. Up 100, 200 . Chinese solar stocks are through the roof and still going. But this is a domestic play. Solarcity. I think this could actually become one of these names that we all know, like a year ago, very few people ever heard of tesla. Now of course everyone knows it. Ashley wow. This could be the next tesla. By the way elon musk is involved. Chairman of the company. On friday they announced they would issue 3. 4 million shares. He says i will step up and buy a lot of those. Him and ceo bottom up 165,000 of them. Ashley what is so great about it . Their business is expanding. Their estimate for next year on solar panels that they would have installed were the equivalent of 278 megawatts. They hiked that to 525 megawatts. Ashley double. So to be able to double your projections for next years business is amazing. Solar stocks or Lottery Ticket money . Depend how you look at it. They have done extraordinarily well. What happened was, there was a lot of subsidies initially. Tracy right. Particularly germany, china, america. Spain and some other countries. Spain of course went broke. Germany is still providing subsidies. Prices come down to reasonable price. We went to a trade war with china over solar panels which i think was a stupid trade war and might come to an bankrupt end real soon. Well start seeing panels. People will see economic benefits without the government subsidies although the government subsidies wont go abay anytime soon particularly in places like california. Tracy where are you buying or looking to get out. Break ought at 52. Think it could be 75 stock. I think this could be the next tesla. When every win hears bit and start Earnings Report is blowing them away it might become turbocharged. Ashley turbocharged. Solarcity. Dont forget me next year. Ashley write the date down. Tracy so this slogan, orange juice, it is not for breakfast anymore. Well, believe it or not, oj is not for many meals anymore. Were live at cme next. Ashley blackberry is taking out fullpage newspaper ads to remind you, hey, theyre not dead yet. The details ahead in the tech minute. Dont go away. When we made our commitment to the gulf, bp had two big goals help the gulf recover and learn 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 added cuttingdge technology, like a new deepwater well cap and a stateoftheart monitoring center, whe experts watch over all drilling actity twentyfourseven. And were sharing what weve learned, so we can all produce energy more fely. Our commitment has nevebeen stronger. If you have business ia, we have a persalized legal solution thats right for you. With easy stepbystep guance, were here to he you turn your dream into a reality. Start your business toda with legalzoom. At 24 minutes past the hour im lauren green with your fox news minute. Al qaeda suspect known as anas alliby pleaded not guilty to u. S. Terrorism charges in a court in manhattan. He is charged with helping the plan the 1998 bombings in kenya and tanzania which killed 224 people. He was apprehended by u. S. Special Operations Forces in libya on october 5th. A second dry ice bomb exploded at l. A. International airport monday night, one day after similar incident in the airport. It exploded about 8 30 while another similar bomb was found in the vicinity. No injuries were reported. Investigators do not believe the incidents are linked to terrorism. Napa, california man is winner of this years annual World Championship pumpkin weighoff with an entry weighing 1985pound. His pumpkin is the heaviest the 40yearold contest has ever seen. Gary millers winning gourd earned him a prize of 6 a pound which earned him close to 12,000. Those are the headlines on fox business network. Back to ashley and tracy. I think he spent more than 12,000 to get the gourd that big. Tracy is it steroids. Im thinking. A lot of fertilizer. Tracy lauren green, thank you. Sure. Tracy orange juice, used to be the staple of the breakfast table. It is slowly falling out of flavor in American Homes . Retail sales of the juice have fallen to the lowest levels in 15 years. Fox business contributor phil flynn of Price Futures Group in the pits of the cme. I think it is the best thing to have when youre hungover the next day though. Depends how much vodka you add to it in the morning. That is the breakfast that i have. Used to be when we talked about orange juice a day without orange juice was like a day without sunshine, right . For americans that is not happening anymore. They have been in the dark for a long time the truth of the matter is this longterm demand decline in orange juice has been going on for some time. Part of it is because we used to think orange juice is healthy. Get a little vitamin c in the morning. Good all day and keeps the colds away. High sugar content turn a lot of people away from juice. When you look at the orange juice market it is one of the most elastic markets you will ever see. Even when we were consumeing a lot of orange juice, when prices started to spike on orange juice we would see demaad go down. Once more we have a lot more alternatives when it comes to juice in the morning. We have different types of juices, a lot more flavors. Weve also had a runup in the price of orange juice because of the Citrus Greening disease, were wiping out a large part of crop. That has driven up prices. Higher prices go the lower demand comes in. Tracy holy, that is impressive information on orange juice. There you go, im telling you. I could give you recipes on hangovers too. Tracy youre great. Ashley or gray goose. Smile, youre on candid camera. Ahead in tech minute, why the latest assault on your privacy may come at the supermarket. Tracy no more madness. Why one stockpicker says, stay away from the Consumer Staples shares. Thats next. Dont go anywhere. [ male announcer ] need help keeping your digestive balance in sync . Try align. Its the number one ge recommendedrobiotic that helps maintain digestive bance. Stay in the groove with align. Cheryl take a look at your dow 30. At session lows, only have Johnson Johnson, microsoft and chevron in the green. Raisinanything else in the red including walmart. Customers were feeling the nonsense down in d. C. Your pedal ladies, what is going on . Nicole a few names Holding Onto Gains have reasons to be there. For example Johnson Johnson came up with quarterly numbers that looks pretty good and microsoft has a nice upgrade from jefferies. The big picture as everybody continues to focus on washington. Despite all of the debt ceiling turbulence, and there certainly is plenty of it, major market averages actually remain in positive territory since the start of the shutdown. The preshutdown levels is 15,129. But we are still up about three quarters of 1 what it is worth noting the markets are getting nervous with the dow at session lows right now approaching triple digits a moment ago to the downside i should say. Cheryl they take it all away from us. 45 minutes away from the present meeting with house members, as will go to the white house. Peter barnes is down there. What are you hearing down there . Peter were kind of doing a reset as you know House Republicans this morning dropped this kind of surprise or postal to increase the debt ceiling and reopen the government. Harry reid said it blindsided him as he said he was making continued progress with the republican leader in the senate, Mitch Mcconnell, with a deal over there. The House Republican and the Bipartisan Senate plan would reopen the government and fund it into january. Both would increase the debt ceiling into february but the House Republicans added obamacare provisions that they pushed before including a twoyear delay in the medical device tax which is not in the senate plan. The white house is back in the Senate Efforts and accusing john boehner of risking default for the country to cater to his Tea Party Members in his caucus. This proposal made vote on this tonight in the house. But when boehner announced this new effort this morning it is not clear that he has the votes to do it, so we are all watching tonight on the house floor. Tracy thank you, sir. Some breaking news for you. Oil closing down 1. 20 per gallon. Per barrel i should say. Over 1 raises yesterdays games heading toward 100 mark. As we just heard, equity market influx as we wait for a word from d. C. Fears that shoppers are pulling back as our next guest warrants to stay away from Consumer Staples. Joining me now is Wells Fargo Securities institutional equity strategist. Quite a title. Gina, thank you so much for being here. Before we get to the Consumer Staples and your reasoning for that, should investors look througg all of this loud noise from d. C. . Certainly the market, cannot blame anybody for city underhanded right now until this gets sorted out. It is difficult to trade on the policy uncertainties. I understand why investors would be completely influx. We are watching earnings trends and finding a lot of reasons to be fairly cautious. Ashley what are they going to find, do you think . They will find expectations are too high Going Forward. This is where you get the consolidation of what is happening in washington and what may or may not happen in the next several quarters. The more it weighs on Economic Growth prospects the more it filters through to equity prices through the earnings stream. What were seeing now is still very limited Earnings Growth with lack of any upside momentum filtering through. Only 30 some odd names to the upside. Of those, theyre still suggesting very limited earning growth prospects, companies guiding us to expect very little Going Forward and there is some concern. There is some concern that what is happening in washington will further throwaway earnings. Ashley for the consumers a different environment right now bringing us to Consumer Staples. What are your voiding, which investors stay away from in that regard . We are most worried about the commodity play. The Food Companies and the Beverage Companies have been Consumer Staples looks like the areas at most risk of Going Forward. These are companies that tend to thrive when Commodity Prices are rising. What we are seeing instead is some of the leading indicators suggest food prices are going to fall moving forward, consumers are cutting back on expenditure of food and beverages as it is so the consumer crunch is hitting these companies from both angles. Ashley is it a blanket dont go there, or is it some companies within that segment you do like . We do think you can hide in tobacco. And in food. Ashley they still smoke. Food and stable retails, the walmart on the one and of the spectrum talking about some risk but other opportunities where they appeal to the higherend consumer. Ashley whole foods. Go exactly. A greater income from which to draw, they specialize, kind of targeted toward those consumers. There are opportunities if you pick those spots within staples, but as a whole we are focused on that sector. Ashley nicole pointed out since the shutdown began, these markets have been remarkably bra,< through all of this, do we see a lot of the cash on the sidelines coming back in . What do you think . It depends on how we get through it. I would talk about a six weeks delay, six months delay, are we coming to any resolutions . I dont know that we can say with any certainty what will happen until we get that. Ashley very honest answer. Thank you for being here. Thank you. Ashley appreciate it. Tracy it is time for your tech minute. Shares of apple flirting with 500 per share as apple takes a bite out. Hiring the ceo. Stepping down from the fashion house to report directly to tim cook as Senior Vice President. With Online Stores. At the british house, the stock soared 250 and she was a highestpaid ceo male or female in all of the uk last year. And talk about all the news fit to print, blackberry has taken out a fullpage ad in newspapers all over the globe just to calm customers and partners. It reminds readers the company is financially stable with substantial cash on hand and a Balance Sheet that is debt free. Nonaturally didnt send an ema. What is missing in this old ad . No mention the smartphone makers up for sale with the idea it could be broken up and sold into pieces. We wont mention that newspaper reader just sit down. Tracking your snacking. The makers of chip ahoy, oreo, trident gum looks to take it to stores in 2015. Using Sensor Technology to identify the age and of a wouldbe purchaser. Analytics will determine what kind of customer advertisements should appear on a video display screen attached to the shelf. Like space age for cookies. Looking for a deeper understanding of its customer. It is a little 12yearold boy. At least that is what it is in my house. Ashley that is just me going for oreos every day. There he is again. Going for the oreos. The insidertrading case against billionaire Dallas Mavericks owner mark cuban heading into the final quarter. The playbyplay straightahead. And detroit on the brink. Why bankruptcy may be the best bet for motown. Stick with us. My mantra . Trust your instincts make the call. To treat my lotestosterone, my doctor and i went with axiron, the only underarm low t treatment. Axiron c restore t levels to normal bout 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or m with prostate or breast cancer. Women, especially the who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or chang ibody hair or increased acne in women may occ. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Seous side effects could include increased risk of prostate cancer; worsening prostate symptoms; decrsed sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Skinedness or irritation where applied,de increased d blood cell cnt, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. I am Melissa Francis with your fox business reef. Opposing arguments in the government insidertrading case against mark cuban. Sec accusing mark cuban of using Insider Information to dump his stock of an internet Search Company in 2004. Avoiding 715,000 in losses. Given dispute the claim. Jcpenney decline in market Rumor Department store chain hired bankruptcy counsel as shares slid as much as 8. 3 . A spokesperson said there was no truth to the rumors. Shares hit an alltime low. At 5 00 p. M. Eastern, Martha Stuart, we will talk about her made about her maiden american initiatives and whether or not she is planning to take back the helm of Martha Stuart living. That is the latest in the fox business ductwork, giving you the power to prosper. Tracy welcome back. Negotiations are stalled down there, but as a country prepares for possible default, one city already in the midst of its own financial crisis. Detroit filed for bankruptcy in mid july. The first of a number of hearings to determine eligibility for chapter 9. Joining us now, senior fellow at the manhattan institute. Interesting need to prove his eligibility because detroit thinks it is eligible but according to certain bankruptcy laws, maybe not so much. The reason you have the hurdles the city has to leap over hard to qualify is the junk filings. In case of detroit, extremely desperate condition, it is probably not. He had to prove you are insolvent, none of them have proved it is insolvent. Detroit has a short made some sort of effort to reach an agreement outside of Bankruptcy Court before it filed for bankruptcy. To the extent there is any dispute it will focus on that. Tracy i thought one of the main concerns would be the dispute hired basically to get this together has cut pensions, right . Michigan law says you cannot do that, federal bank of the law says you can. Who is going to win here . The way the judge will treat this question is that is heard later. The unions are sort of getting hasty leaping to the pension issue already. Right now were just focusing on eligibility. Typically detroit has not proposed a plan claim it wants to cut pension debt, but that will come later. Tracy do you think detroit should sell some assets . Bankruptcy a city cannot be forced to sell, the city maintains complete control over how it brokers its debt agreement. The judge does have to sign off an agreement to say it is spared to all creditors. The city pursued negotiations with the Detroit Institute of art. It is monetizing the art institute. Tracy things like the detroit zoo. If you sell this stuff, what we come to detroit to see after a while. A whole idea is to secure a Better Future for detroit. It is an invaluable resource. It could be vital for detroits future. Tracy is detroit paving the way for other cities . Is her way to to make compare comparison . How well is detroit doing . Other cities are saying if detroit can manage it, abi could as well. I really dont like the idea of more federal involvement in local affairs. As much as possible these cases need to be kept at the state level, State Government is to think about doing more to help the distressed cities. I dont like the idea of a federal judge coming in at the last moment. Tracy i am with you. Thank you for being here and of course the story will continue and stephen will be back. Ashley all right, little after a quarter until the hour, time for a look at the stocks. Heading south as we do every 15 minutes, lets go back down to the New York Stock Exchange. Mark newton joining us. The dow at session lows as the talks in the senate over the debt have been put on hold for now, so i was in the market had cells . This included a volatility on hopes for conciliation and now disappointment on the debt ceiling debate and so a lot of intraday swings. Tough to see any real selloff gain traction with people knowing the debt ceiling resolution is probably a couple of days away. The stocks continuing to act pretty resilient over the last ffve days. This is on the first down day. Getting back most of what they lost in middecember. Up from the lows we saw last week so it is tough to make too much of this. A lot of people are confident eventually the two sides will come together and something will get done. Ashley lets play the game of what if. What if we get toward thursday in this whole thing collapses with regard to the negotiations, what does that o to the market, we have been told it is baked in, will they get a deal done . What if there isnt a deal . Speak a lot of people are questioning if the 17th is the right date. A lot of people say it probably wont happen as of the 17th at this point. A lot of it is a matter of what payments are going to prioritize and this and that. If we see a real default, the market would not look upon that favorably. Skull lot of skepticism Something Like that would occur. Both sides have come out and 70 said we want to get something done. Obviously still very far apart, but my thinking is at least short term it is good to buy the dip them a little bit of upside. Ashley we still have a ways to go before the 11th hour. Thank you so much. My pleasure. Tracy netflix thinking outside the cable box. Why the Movie Service may be far from deals with cable providers. Ashley all this Government Shutdown talk is good for one business. Why the people who sell fallout shelters are celebrating. We will be right back. Thank you orville and wiur. Amelia. Neil and buzz for teaching us thatou cant create the future. By clinging to the past. And with that youre hisry. Instead of looking behind. Delta is looking beyond. 80 thousand of us investing billions. In everythg from the bt experiences below. To the finest comforts above. Were not simply saluting history. Were making it. Tracy the dow down her six points but netflix stock up more than 12 in three days. Reports the giant comcast and others. Dennis kneale with a new wrinkle. Ashley stop stocks jumping up y on those reports. One source tells me comcast more likely to strike a deal first with a rival streamer such as itunes or youtube or amazon which means any netflix deal is an exclusive for comcast. The more the merrier. The big Sticking Point as netflix is insistent Cable Operators they want to offer netflix have to agree to a second unrelated issue. Have to let netflix install its own servers at their private networks. Something no other data network is allowed to do. Netflix and youtube together hawked Something Like half of all cable bandwidth in prime time netflix faces rising charges unless it finds some kind of a fix so why is the popup so high if this is so premature . The biggest market life are approaching 30 million subs here. Growing 7 in the Fourth Quarter last year compared with two and. 5 growth in the Second Quarter of this year. Kickstarting that growth but at a price. Netflix gets 8 a month for home. The allies with cable it will be less at the cable guys grab their share. Ashley thank you, dennis. This is interesting. One sect of the u. S. Economy thriving on the threat of a debt default. The survivalist industries, Technical Training schooos and doomsday bunker manufacturers recording and uptake in business in the past few days as u. S. Credit default inches closer, these companies are preparing families for the very worst teaching them how to start a fire, find clean water, build a shelter, combat zombies and use weapons for protection. The apocalypse. Tracy if we default, i need a bunker. Is it me what you are saying. Ashley somebody is making money, i guess. Tracy coming up on countdown to the closing bell. Moving closer to the deal on capitol hill bigtime namecalling between the senate and house members. The latest from the senate and the house. We will tell you how wall street is reacting to it all. Countdown to the closing bell is next. Dont go anywhere. [ indistinct shouting ] [ male announc ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dging ]. Youlbust your braibox. All on thinkorswim om td ameritrade. And this park is the inside of your body. See, the speci psyllium fir in metamucil tually gels to trap some carbs to help mainta healthy blood sugar leve. Metamucil. 3 amazing benefits in 1 super fiber. I need a newntt invement pn. G. I need to rethink the core of my portfolio. Ishares core etfs are lowcost funds. So you can keep more of what you earn. T started with the new isharere builder. Sign a personalized plan that can help you achieve your invesent goals. Ishas by blackrock. Sign a personalized plan call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. Cheryl hello, everyone, im Cheryl Casone in for liz claman, and just in the last few minutes stocks selling off after reports that senators have stalled their efforts to come up with a budget and a debt deal. Senate majority leader harry reid said an emerging House Republican plan will not, will not pass the senate. We are going to go live to capitol hill and the white house to get the latest details, and they are changing every moment. Were going to keep you uptodate, of course. Right now as were looking at the markets, you are seeing the pressure that theyre feeling, dow pushing session lows. Consumer staples, by the way, and Consumer Discretionary stocks long the biggest losers over on the s p 500. As you can see right now, the spider Consumer Staples discretionary, that is actually down and so is the xly spider as well. Arguably, the biggest news of the day happening right now is going to be after the close. Were going to be hearing from yahoo , theyre going to be giving us their earnings, investors and fans going to be able to ask Marissa Mayer questions via twitter which shes going to be asking during the companys call, and intel reporting after the bell, and were going to find out whether lagging pc sales are weiihing down that company. Were going to be talking to the cfo. A lot happening in minutes, you