0. 4 for s p 500. 1410 is the level just reclaimed. Government shutdown now in day 14. Debt ceiling deadline one day closer. A meeting between the president , the Vice President , congressional leaders at the white house that was set for 3 p. M. Eastern has been postponed. John harwood is there at the white house. Any rumblings about when this meeting might happen now . Bill, dont know but the longer its postponed, the better, because its giving time for Senate Negotiators to wrap up a deal that they can then outline to members of the leadership bipartisan, pelosi, reid, as well as the president of the united states. Most people are bystanders at this point. President obama, the house of representatives, all attention is focused on two men harry reid and mitch mcconnell. Earlier this afternoon they both came out on the senate floor and said things were looking good. Constructive good faith negotiations continue between the republican leader and me. Im very optimistic that we will reach an agreement thats reasonable in nature this week. Weve had an opportunity over the last couple of days to have some very constructive exchanges of views about how to move forward. Those discussions continue. I share his optimism. So, here are the potential elements of the deal that they are discussing. They would involve republicans compromising on the length of the continuing resolution to reopen the government. It would just go to january instead of longer as republicans wanted. Democrats wanted it shorter to allow negotiation in rise spending levels of the sequester. The debt limit would go to february. Thats shorter than democrats wanted. They want to go deeper into the 2014 year. But republicans want to keep the pressure on. Now, on the obama care provisions that have been discussed, medical device tax, im told that there will not be a delay in the medical device tax, which republicans had been seek organize outright repeal of that tax. There may be a provision strengthening Income Verification for obama care subsidy recipients. Those are the elements we know about. Were all waiting for reid and mcconnell to come out and say, its buttoned up. And count on then the fact that the house of representatives would feel at the 11th hour needed to put this on the floor and it would likely pass, guys. You know, john, i cant help but wonder if theyre eating magic beens ans in washington because how did we go from no progress in washington to within inches of a deal today . Why should investors believe the hype . Well, it was never true that there was no progress on sunday. I talked to aides yesterday afternoon who said they had productive talks and that they expected to reach an agreement. So, this may be a surprise to some people, but not to everybody. There was an initial negotiation with house of representatives that fell apart because the president wasnt willing to sign onto the terms of house republicans. But the bipartisan leadership of the senate was talking, working together and they were coming up by late yesterday with the framework of this deal. John, thank you very much. I was saying earlier that wall street was acting like the kid sitting in the backseat saying, are we there yet . Are we there yet . Bob pisani we keep hearing from d. C. , were not there yet, hold on. Were acting like were there. Take a look at the dow jones industrial. The market acted like there was a deal, even when they announced the postponement of the meeting in the middle of the day. We took a brief sdpip then came back. Closed off the highs. Take a look at full screen. The important thing about today, the stocks are acting like a deal is near. Were at historic highs on the russell 2000, midcap and small cap. Not on the big caps, the s p and dow. The big worry over the weekend, how much damage has been done to Fourth Quarter earnings . We dont know. But they have High Expectations the numbers will come down. They better not go to zero. That would be a problem. All day long you should watch the ones that would go down, cyclical stocks, energy, footballs, material, all throughout the day. We started on the downside and immediately started moving up. Same thing with commodity groups. You would have seen all these groups, coal stocks and metal stocks move to the downside and stay down. They didnt. Down early and up throughout the day, ending near the highs. Same with emerging market stocks. These sell off when you get some big deal, like a deal wouldnt happen or, heaven forbid, a debt default. China, thailand, india, ending near the highs of the day. Back with us, sara hughes, craig from the economist, roger smith joins us at the New York Stock Exchange and Lance Roberts from street talk advisers. Rominus, grit to see you in person. Likewise. Hope springs eternal. We have a deal being discussed and markets sitting near the alltime highs. The market always has to try and anticipate these things. Whats been most encouraging throughout the whole shutdown debate process is that if you look at high yield spreads, credit and small midcaps those would be the most sensitive to any direct economic response. The fear for someone like myself, managing money is, do i need to go to cash because of the 2014 recession . Everything else is just theater. We made the judgment two weeks ago that we would not go to cash. We are a tactical manager. We can go to cash. Because we judged that in the end, politicians want to get reelected and a recession wont help that. So, we could be wrong. We have to have a contingency plan. The market keeps giving us reinforcing signals. Lance roberts, it makes me wonder, especially with regard to the conversation we had right before the close, is whether people not really having an opportunity to have bought any dips here will sell the news . Its very possible. You know, we raised a little cash back in august. We bought a little bit last week just on the dip. But i did speak to two congressmen on friday and one again this morning very early. And we might be a little bit ahead of anticipating a deal out of washington. They are really dead set against not giving an extension to this debt ceiling without substantive cuts to match dollar for dollar. You know, we might be in a little of a position in the next day or on so, like on friday, a deal doesnt actually materialize. Thats always a possibility. You know, greg, i keep thinking that ben bernanke when they didnt taper, caught everybody offguard. Anymore hes looking like a genius because his fear was exactly whats going on right now with all the debt ceiling wrangling, right . Yeah. He cited a couple reasons why they didnt taper. Number one, the latest Economic Data hadnt looked very good. Number two, they were worried about the rise in bond yields that unfolded over the summer. Number three, precisely this. The wrangling going on in washington. The interesting thing is if you clear out this underbrush from the political theater in the next few days, youre basically back to fundamentals. The question facing the fed when they get together at the end of this month, enough change they feel comfortable enough to go ahead . I think theyll look at it and say the answer is no. Who knows if well even have the september jobs data by then. And then an air pocket in the month of october because of the shutdown. Looks like december at the earliest before we get any tapering news from the fed. He was saying, he and other Money Managers are looking at this saying, we price in a recession, go to cash, or we look and hope and think that the outcome will be avoided and so we stay fully basically, fully exposed here. Is that the same way youve been looking at the situation . I think advisers that work with us, two things, the buy on the sddip mentality has worked. I think from a responsibility standpoint it would be prudent for investors to also have some sort of cash as a hedge on the sidelines to wait to deploy or some sort of insurance. No ones saying the likelihood of a default happening is great, but we dont yet have a resolution. I do think the government can have an impact on the markets, as the Federal Reserve has, and hopefully going forward, as greg mention the, it will be more fundamentally driven by earnings, but were not seeing that. Greg, you wonder whether some ceos, and we wont name names, would use this as an opportunity to bring down some of their forecasts if they can say, well, you know, the uncertainty about the debt ceiling crisis lowered first lowered bill, so cynical for i know, dont i sound cynical . But actually, i do not to actually sound an optimistic note here. Lets say we get through this process and theres actually a discussion about lifting the sequester, you know, as a consequence of the negotiations that unfold. We could be looking at 2014 being the first year in a while there is no new austerity. 2013, the whole year, we labored under the cutback from higher taxes and lower government spending. If we actually hang on a bit. Lift the shadow from the economy next year, it could be very positive for growth and for stocks. As rod eluded, the year is dif visible by two so they dont want us to go through austerity. A grood point greg makes because theres been a major drag on the economy. What we have to judge is what the houses reaction is going to be to what the senate sends over. And i had the opportunity to hear mr. Boehner in person and his number one goal is that republicans dont lose the house in 12 months. I think at the end of the day, its right that the markets are focusing that well get to a positive result. Yeah, theres thank you. Go ahead, lance, finish it up. I was going to say, have you to be careful. Next year we have a big increase coming in taxes from the Affordable Care act which will act as a drag on consumer spending. You cant say that next years scotfree just yet. Thank you all. Still no word on a meeting at the white house, so were still waiting here. Much more coming on the debt ceiling crisis, the Government Shutdown and how d. C. Mess is affecting businesses across the country. The worlds most powerful bankers warning of dire consequences if the u. S. Defaults on its debt. Well have full Team Coverage of what could happen on friday, the day treasury says well run out of money to pay our bills. Plus, republican senator John Barrasso speaks with us about what the holdup is on this meeting between the president and congressional leaders and if we should be optimistic about some sort of a deal tonight. Also ahead, prolonged wait times and error messages, what the government is doing to fix annoying glitches in the Online Health exchanges. Wait until you hear how obama care is going down with millenials. The basics, you know. I got this. [thinking] is it that time . The son picks up the check . [thinking] im still working. Hes retired. I hope hes saving. I hope he saved enough. Who matters most to you says the most about you. At massmutual were owned by our policyowners, and they matter most to us. Whether youre just starting your 401 k or you are ready for retirement, well help you get there. announcer at scottrade, our cexactly how they want. T with scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everybody. I trade like me. Im with scottrade. announcer scottradeproud to be ranked best overall client experience. Welcome back. Markets hopeful as we wait on word from washington about a debt deal sooner rather than later. Dominic chu has been monitoring markets and brings us this breakdown. Lets talk about netflix, soaring after it announced it was in talks with several Cable Companies to offer Video Streaming Service through top boxeses. And offering 13series psychological thriller through sony in exclusive con tend dealer. Blackberry set to reassure customers and partners it was financially stable in an open letter published in 13 countries. Blackberry said it was here to stay. Watch those shares. Also facebook moving higher. Its buying israeli app maker for reported 200 million. Then merck moving lower after it was downgraded by bernstein from market perform to outperform rating coming a week after the drugmaker announced it was cutting 8500 jobs or about 10 of its workforce. Also coach losing ground after canaccord downgraded the handbag maker as they expect sales to decline 6 when it reports Third Quarter results. Utility stocks taking a hit as Rising Interest Rates dampening enthusiasm. Kelly, bill, some real movers here today, despite the fact markets went up. Lots of ideas in there, too. Thanks. You can hear the talk almost everywhere from starbucks to the subway, at bars, bea. The shutdown is not abstract to more americans. Shes been to all of those places, by the way. We want to gauge, get a feel for some shutdowns unintended consequences around the country. Were joined by kayla, diana olick and julia with three of a beat check. Kay lash kayla, whats the status of the new financial regulations that were supposed to be kicking in next month . It was hard to get multiple agencies on the same page when government was opening leaving treasury jack lew to aim to speed up regulatory efforts. Much of our remaining work will be completed in the next five months. Let me repeat, by the end of this year, the core elements of the dodd frank act will be substantially in place. I want to mention the volcker rule is importantly, and ill move for swift completion now two senior regulators tell me the volcker rule will likely get pushed to 2014. Wall street is watching this closely as it strictly dwins how banks can trade but it requires coordination of the fed, the treasury, the s. E. C. , the cftc and fdic, half of which have been closed for business. The cftc has what one official called a skeleton staff. And in an email that got bounced back saying it would return when government reopened. Other areas of loose focus, new mortgage rules and strict guidelines for nonbank financials. Fed, treasury have been open but losing one agency for two weeks significantly sets back the clock on this. The treasury, ringleader, definitely has higher priorities. Wow. Thanks very much. Diana olick, a stones throw from capitol hill, but she found out the shutdown on home buyers reaches beyond the potomac. Its hitting rural home buyers hard. This is a relatively small group, its a big problem for them. Meet the malloy family. Five kids, they sold their too small home in baton rouge and qualified for usda rural home contract. Usda loans are no down payment, 30year fixed product designed for families like them. When the government shut down, so did the loan program. Last week with time running out, malloys had to act or risk being homeless. We had to do what we had to do. Thats the decision i have to make so my kid arent homeless. I cant give them everything i promised to give them now, but theyll have a home. They switched to an fha loan which required a 10,000 down payment and higher fees. Their Monthly Payment is 150 more than it would have been. My wife and i are both just middle class working americans. And to have a bickering match between congress and the senate and the white house cost my family their home and my family 10,000, thats a lot of money to us, we dont normally have that. Now, when we posted this story to the realty check on cnbc. Com, we got a message on the realty check Facebook Page from another homeowner, or wannabe homeowner with five kids in utah who says shes in the same boat but they cannot afford to switch to an fha home loan. Theyre now looking to move in with friends. Its hitting a lot of people hard. For sure. The real life drama in washington, d. C. May one day make for good hollywood yard but for now the Entertainment Industry is like many others, dealing with the impact of the shutdown. Julia has that part of the story for us. For many media executives and celebrities out here, it is business as usual. But the impact of the Government Shutdown is being felt in a range of different places. The fcc, for instance, is totally shuddered, which means no regulatory oversight, no broadcast Licensing Services and a potential delay of a broadcast spectrum auction. All m a pending fcc approved is on hold, including buying broadcast station companies. A tribune spokesperson telling us, like everyone else, weesh watching this play out, hoping it gets resolved. Film permitting by National Park service is also on hold. That means no shooting in locations like yosemite National Park, or even spots closer to hollywood like the l. A. River and the l. A. National forest. And the shutdown has also hurt hollywood fundraising. First Lady Michelle obama was supposed to come out here for a 32,000 a head fundraising event for the Democratic National committee. She couldnt make the trip. Bill and kelly, back over to you. July, yeah thank you very much. Heres the question everybody is asking, is friday, the day after the debt ceiling limit expires, is it going to look Something Like this . We certainly hope not. But thank you, hollywood. The president s meeting with congressional leaders has been postponed, at least for now. Is that a good sign . A bad sign . Well know soon enough as some see friday as dooms day if a debt deal is not reached. When we come back, well ask, what if a deal is not met by that time . Watch out for your cars, i guess. What happens when you take the actual voice of washington politicians taking the bickering of shutdown and put them in the mouths of puppets on a playground . Youre about to find out because the digital workshop puppets are back. I have to say i was disappointed that the president refuses to negotiate. My friend, john boehner, i repeat, cannot take yes for an answer. Do you like green eggs and ham . This isnt some damn game. Im ashamed. Im embarrassed. All of us should be. The president reiterated one more time that he will not negotiate. I am today by luck. I put in the hours and built a strong reputation in the industry. I set goals and worked hard to meet them. Ive made my success happen. So w