Three major indices. The dow industrial down by about 1. 1 , the s p and the nasdaq down by about 1 1 2 . If you want to look at things month to date, we are on track for the worst month of the year, if youre looking at the s p, if youre looking at the nasdaq. If youre looking at the dow tr transports. The dow industrial is off by 3. 1 . S p down by close to 5. 2 , and the nasdaq is down by about 7 . The russell 2000 has fared much worse, down 7 1 4 . Dow transports are down by 5 1 4 . You got admit the irony of 90 of the people we talked to finally threw in the towel visiting the october lows, right when this was ready to head back down. Never mind. But they did. Its counter intuitive. Its uncanny. If you could figure out opposite day always. Always opposite day. You could do well. You give jason trainer props for sticking with it. Yes. Saying he thought things were going to come down. Because i was so obnoxious to him during the whole rally when he went nuts. Yes, you were. Treasury yields, this is a big part of the reason why treasury yields yesterday, the tenyear hit its highest yield since 2007. Once again, if you take a look this morning, its sitting just below 4 1 2 at 4. 49. The 30year was at its highest level since 2011, and this morning its sitting at 4. 63, and the twoyear at 5. 05. Lots of other things that were happening. The dollar is at its highest level since november of last year, and well continue to watch how this all plays out. Obviously a little bit of nerves, people on edge when we look at the markets. Lets go to washington right now because we are just days away now until the october 1st deadline. Still no deal in sight to avert a government shutdown, at least in the house of representatives. Theres a little bit of movement in the senate. I want to get over to Emily Wilkins who joins us with the latest. Where are we . Things arent looking great, but there is progress, the senate came out with the bipartisan plan to prevent a shutdown, but its not a guarantee that the shutdown is averted or the government is going to remain funded into the weekend. The senate plan would give lawmakers until november 17th for the stopgap funding so they could figure out a way to fund the government in the long term. It would continue current government funding and include 4. 5 billion in aid for ukraine. Last night we got a procedural vote on the bill, a bit of a test to see what the support is, and solid bipartisan backing. Most House Republicans said last night they just cant accept a bill that doesnt address the border. House speaker Kevin Mccarthy also told us last night that putting funding for ukraine in a stopgap bill was wrong. Listen to what he had to say. Theyre picking ukraine over americans. Look, i know theres problems out there. What russia has done is wrong. We can defend that. But we also watch whats happening right here in america right now. Why cant we deal with the border and our emergencies too. House republicans are planning to try once again this week to move their stopgap plan, but its not clear that theyll be successful. I spoke with several members yesterday who said that theres no circumstances in which theyre going to vote to support a continuation of funding. It doesnt matter how many conservative wins are going to be included in the bill. So, guys, as things stand, there doesnt seem to be a very clear path to keep the government funded past midnight on october 1st. Emily, mccarthy was able to get a cupouple of things passed late yesterday. Are you going to mention those . Werent there are four procedural votes . Sure. Yeah, he did get that procedural win. The one they failed twice last week. You didnt mention that. We have that, but that doesnt stop the shutdown. We arent going anywhere. Look, there is some more bipartisan agreement but at this point, how do you actually take that and translate that into something that can help fund the government before this sunday . I mean, what the house is focused on right now is the longterm bills, and their bet is if they focus on the longterm, they can get holdout members to buy in for the short term that they need to prevent the shutdown. The members i talked to yesterday said we need to fund the government. We cant to short term. It doesnt seem like the house is on track to pass any shortterm stopgap. Couldnt even get those through, and he finally did get those through, the only holdout was mtg. Thats a small win, and its going nowhere because it would die quickly in the senate. Thats fair, joe. We will give him that. He did get his entire conference together, moved forward on the process. But as you said, you know, its better than where we were last week. Its a shutdown coming. It really looks like it. I was amazed how many shutdowns we have had since 1981. 14 since 1981. No wonder. The longest one being more than a month long, costing the economy 11 billion, so real stakes on the table even if we dont necessarily see it in the stock market. A lot of concern here in d. C. Theyre starting to wonder, theyre starting to think. Yeah, it shows that you cant get, you know, this is you cant get things done in washington. Emily, thank you, were going to continue to talk about all of this as you might imagine. Well talk to congressman kelly armstrong, closely involved in the negotiations with leadership to fund the government, and well discuss it in just a little bit. Meantime, the ftc in 17 states suing amazon alleging that the online retailer illegally protects its monopoly by favoring its own services. The lawsuit says that keeps prices artificially higher, locks sellers into the platform and harms its rivals. Were going to dill into the suit with the person who braougt it. L lina khan is going to join. Well go through the entire case with her. When we come back, President Biden hittingthe picket lines with striking auto workers. We have that story next. Plus, a look inside the new contract for Hollywood Screen writers and the Las Vegas Union that just voted to authorize a strike. And later, dont miss our interview with minneapolis fed president Neel Kashkari. He will be joining us on set at u wchg quk stern time. Yoreatinsawbox on cnbc. [ Weather Report announcer ] all flights have been grounded. I had to escape, the city was sticky and cruel maybe i should have called you first but i was trying to get to you i was dreaming while i drove the long straight road ahead i drove all night to get to you the distance is nothing when home means everything. What do you see on the horizon . Uncertainty . Or opportunity. Whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined Risk Management are needed most. Drawing on deep expertise across the worlds public and private markets in pursuit of longterm returns. Pgim. Our investments shape tomorrow today. Welcome back to squawk box this morning. After 128 days on strike, hollywood writers can return to work this morning. Union leaders voting unanimously to end the strike after the contract language was finalized. The deal will last until may of, ready for this, only 2026. This could happen all over again. It includes a 5 minimum pay increase now. Another 4 bump in may of 2024, and a 3. 5 raise in may of 2025. Studios wont be allowed to use ai to write or rewrite literary material. And aigenerated content cant be considered source material. Writers will get residuals based on streaming viewership. That was a big key in those negotiations, and streamers are going to have to provide the Writers Guild the total number of hours streamed for selfproduced high Budget Programs like netflixs series the agreement. Like netflix, the agreement also approved writers minimums, also renewed show runner programs, and wga members will have until october 9th to cast votes on that contract. Its expected to pass in time. The next part of the whole thing is the screen actors guild, and they still have to go here. Theyre telling cnbc that they have no confirmed date for their next negotiations with studios, so even though this is done, the question is how long that takes, and how much of the language that was just negotiated by the writers either gets improved upon or becomes the boilerplate for the actors. I think it would get easier from here. Sag sent out a note to all members, dont believe it anywhere if you hear theres something going on because we dont have these confirmed dates. The big three is showing us, the uaw showing us how its done, and the writers and actors have been watching, minimum, baseline, 40 increase, less work. Thats my new mantra. 40 more, less work. I think you got that deal. I know. We said that yesterday. 32hour week, no way. In fairness, the uaw is coming back. They are actually making less money than they were ten years ago. Everybody is than they were two years ago. When you look at inflation. Uaw gave up a lot. The auto workers did make a lot of concessions, and then, i mean, really yesterday it was, i mean, it was really sort of a workers unite, ceos of the greedy corporations. This is all the stuff that President Biden actually was saying. All of those comments. Once again, bad optics that the ceos have made so much money, but the question, if you just look at the future and look at the reality of where we are, you know, 20 or 30 million. What barry said yesterday, the actors are bitching about the ceos when the highest paid actor, ten of them make more than the ceos theyre talking about. The ceo, 20 or 30 million is not going to sink the company. But its not helpful. I know its not helpful but its not the issue. The issue is whether these negotiations eventually put the company in a position where it cant compete two or three years from now and we go back in again and pick up the legacy costs that were negotiated. The government should be on the hook to have to be the ones to bail them out. The government is helping them get the deal, and then taxp taxpayers are the ones that have to bail them out. The ceos made big mistakes. Speaking of, why dont we show people this from yesterday. President biden visiting the you recollect aw picket line in michigan. This was the first time this has ever happened, a president going to the picket line, urging the union to stick with it. You deserve the significant raise you need and other benefits. Lets get it. Get back what we lost, okay. Step up for us. Joining us with more on the strike, tim higgins, wall street journal reporter and cnbc contributor. Unprecedented to see a sitting president who actually joins the picket line like this. What does this mean in terms of whether or not this is going to get negotiated sooner or later . This probably puts a lot more pressure in detroit but not sure if it actually gets a deal any quicker. It makes it harder in some ways for the auto makers to give a deal that the workers are going to be excited about. Theres a lot of pressure here for that 40 wage increase, that the uaw has been pushing for, and lots of other things. The Companies Say they cant afford that. Even elon musk weighing in yesterday on x saying that this was a recipe for trouble down the road. But right now, the work force is whipped into a fever about achieving these kinds of gains. Thats what we have heard from a lot of different places, including harry wilson who was at the negotiating table in 2007 trying to put things together. You can expect big raises, he thinks 20 isnt enough, that the auto makers should be giving 30 . You get into the structural changes, shortened workweek, returning health care for retirees and some of the programs that had billions of dollars in losses saddled for the auto makers last time around, thats the type of thing that really spells doom for some of these companies down the road. So where is the union on that front . Where is the negotiation on that front . Can they do this with a pay raise, without structural changes that make it too difficult for these companies to compete in the future . Shawn fain, the president of the uaw argues that these companies can afford what hes asking for. And thats kind of the challenge that all uaw president s have over the generations of negotiating these contracts. They always face pushback saying they cant afford what theyre asking for, and theres a balance striking between whats good for the members in the union and what companies probably can be pushed to afford ultimately, but theres Something Else going on here that is, you know, looming not only for the auto workers, but you saw in hollywood for the screen writers is that whether youre in the paragraph factory or the car factory, theres real concern about where these jobs are going to be in the future as Technology Changes these businesses to the very core. And thats what the uaw is worried about. Those members are worried about, as they transition into this ev future, will there be jobs there for them, and thats something that donald trump is really kind of putting his finger on and really getting his fingers into the vein of concern that the rank and file have about whats going on in the grander scheme of detroit. The rank and file also realized that while President Biden is there, its his policies that are pushing them more towards ev . Exactly right. You know, President Biden invoking kind of the work that was done in the Great Recession to save the Auto Industry has made him at times a hero among detroit, but hes also in more recent years pushing that ev transition, pushing these companies to make that transition at a time that not everybody is convinced that people actually want to buy electric cars. Theres a lot of skepticism and places around the country that ev is not the future and that puts the workers in concern. Theyre concerned about their place in that world. Any chance that President Biden looks at that and says, okay, we need to roll back some of the federal regulations were pushing on this front, or is that off the table because it would raise the environmentalist. Its a tricky position to be in. Part of his party in parts of the country, california or perhaps more liberal places really see this transition as being a key thing in their world whereas some places, theres a lot of skepticism in what donald trump, you know, perhaps, you know, the likely front runner for the republican party, 2024 is really doing speaking to that concern, you know, of the little guy, worried about where theyre going to be as kind of the Companies Make this transition. Evs need perhaps 40 less labor, and that is a concern not only for detroit but in stuttgart, places that are making cars in europe, concerns as we look to china, as they expand their ambitions with evs globally. Its a global concern. Tim, very quickly. You look at a situation like this, and the strike fund is a very rich strike fund, but theyre doing this in targeted ways so they can stretch it out, and not deplete as quickly. Not like they dwget a whole lot from the strike fund, not anywhere near what they would be making if they were working. How long before you really see some strain, and some pushback from the workers saying, hey, we cant keep doing this . The benefit of this targeted strike gives them a great deal of more length to do this. You remember the last time, 2019, gm went for Something Like 40 days before they got a deal. This conceivably kcould go for much longer as they hold back that powder, so to speak. All right. Tim, thank you very much. Tim higgins. Thank you. Coming up in the 7 00 hour, elon musk tweeting, xing that the auto workers demands we just referenced could drive the big three auto makers bankrupt. I figure he might like that. No, were going to talk to musk biographer, Walter Isaacson, but first, target is closing nine stores in major cities, krcitin retail theft and organized crime. Details after the break. [man struggles] i need some sleep. [man relieved] if you struggle with cpap, you should check out inspire. Inspire. Sleep apnea innovation. Learn more and view Important Safety Information at inspiresleep. Com rich, velvety. Coffee. Cafequality. Espresso. One highpressure system. That can do both. Brew to your hearts desire. With the lor barista system. Now brewing peets coffee. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Welcome back, everybody. Target says that it will close nine stores in major cities across the country citing violence, theft and organized retail crime. Its going to be closing one store in new york citys harlem neighborhood, two locations in seattle, three stores in San Francisco and the oakland area and three more in portland, oregon. What does this all have in co common . Yeah, the places where they have seen organized crime and places where you dont get prosecuted to the full extent of the law. D. A. S look the other way. Theft and organized retail crime are threatening the safety of our team and guests and contributing to unsustainable business performance. The company went on to say before they made the decision, they invested heavily in strategies to prevent and stop theft, things like adding more Security Team members, using third party guard services. Implementing theft deterrent tools across the business. The ceo said in may, they believe that theft and shrinkage, is what they call it, theft and shrinkage would be 500 million worse this year than last year. Half a billion dollars lost to theft and other issues like this. Shares of target are down more than 25 year to date. Organized crime doesnt it just has a connotation of, you know, you see like the guys over in brooklyn hanging out. Tony soprano. Thats not what were talking about, motorcycle accident, the cops, theres so many that the cops are overwhelmed. They know exactly what to walk in and get. Organized in that theres a lot of people. Not organized, theres not any capos there. Itst its not that. They know exactly what they can get the most money for. What target says theyre doing is hosting store walks with members of congress, state legislature, city officials, district attorneys, Law Enforcement and local Commun