Transcripts For CNBC Closing Bell With Maria Bartiromo 20131

Nasdaq was strong. Technology, one of the better performers on the day. Investors betting lawmakers will reach a deal on the debt ceiling and avoid default dont. John harwood with the latest developments out of washington. Down to the wire, what can you tell us . It is down to the wire, but they are going to reach a deal. The senate expects to vote within the next few hours on that deal. Expect an overwhelming bipartisan vote in favor of the deal struck between harry reid, democratic leader, mitch mcconnell, that would reopen the government, extend funding through january 15th, lift the debt ceiling through february 7th. And that deal is expected, as i said, to go some time between 5 00 and 8 00. The house will take it up. They could be done in the range of 10 00 to 11 00. The bill would then go to the president. I just spoke to a House Republican who said that the at the Leadership Meeting just concluded. Speaker boehner, entire leadership indicated they were supporting this deal. They said blocking this deal will not be a tactic. They believe an overwhelming bipartisan vote in the house as well. People who have been concerned we would breach that debt limit on october 17th, believe this is the moment to breathe a sigh of relief. Thank you so much. John harwood will keep watching washington. Stocks having a big day on Hopes Congress is in works to get a deal done. Joining me is Keith Fitzgerald from money map press, nathan backrack, frank braddock, and our own mandy drury. Thank you for joining us. I guess, let me kick this off with you, keith, in terms of the rally today. Would you buy into it . Do you think this is sustainable . I want to see what happens on the open. Theres a lot of earnings coming out. Volume wasnt i would have wanted to see. We might get sell the news phenomenon in the mortgage so im cautious coming into today. Nathan, deal could be close. Well know tonight. Will you buy into the rally . I wouldnt put any more in the u. S. Than what im committed. What i know for sure is i can put away my rise above pin until the middle of january. Other than that, i dont know whats been accomplished. I like europe. I like vgk, i believe the party has just gotten started. And were not too late. Im worried about the bond market. Were keeping Interest Rates up because we dont care what you say in the short term, rates are going up in the long term. Rates have room to grow. Im optimistic but we have to see big date that that tells us were actually doing better. Yeah. Were just getting American Express earnings out, mandy. 8. 3 0 billion. What are you seeing in terms of the Earnings Period so far . Thats a really good point. Once this deal is rubber stamped, and its assumed it is rubber stamped, people are saying, what do we focus on . You have to focus on earnings and also like to focus on economic data, which we havent had much of recently. The problem is with earnings here. I think bob was pounding the table all day. That is, a lot of companies are going to be able to hide behind the shutdown. We saw Stanley Black decker and a couple other Companies Start to blame the shutdown and blame the guidance as a result of that. I think we need to focus very much over the next few weeks on earnings stimgestimates, start lower and Companies May be hiding, perhaps they would have hid behind bad weather, now they can hide behind the shutdown. Because, you know, its certainly a good excuse that theyve been sitting on their hands because of the shutdown. Let me get to dominic chu. He has more on the American Express result thats just out. Like you said, the sales number, revenue come in for amex at 8. 3 billion,eati average of 8. 2 billion. Earnings per share coming in at 1. 25, three cents better than average analyst estimate. Comments from ceo about current credit conditions. He said, quote, credit quality indicators remained at historically strong levels and year to date were delivering on the annual targets we are set to contain operating costs. Again, the stock up modestly, about a percent in the aftermarket session. Well keep those shares on moderate. Frank braddock, would you put money to work in this market in terms of the broad indices, up 205 on the dow . Any thoughts on American Express . Well, not so much on American Express. Have i to tell you, maria, investors have been sanguin going through this discussion, i dont want to get ahead of congress, but if we get a deal, i think we could see a sharp move on the s p in the next few weeks. You think well see an upside. Whats going to be behind that . Well, ive got to tell you, some is just investors and psychology right now. Momentum is moving in the right direction. Frankly, if you look at thinks like biomed stocks, drug stocks, retail stocks, Sector Performance has been really very good. So im actually very excited now. Ive been cautious going into this whole thing but now im more excited than have i been in the last few months. But consumer discretionary, eight stocks are driving that index. Every other stock in that index hasnt kept up with it. Best buy up 250 . Thats whats driving it. Its not broad based. Thats why i like etfs. I want to ask you about etfs in a second. Imbm is out with earnings. Better than expected. Revenue, once again, looks like a disappointment. 23. 7 billion versus estimate of 24. 5. Jon fortt all over the numbers. Maria, what you said, absolutely correct. I wanted to dive in and look at a couple of numbers specifically. Hardware came in at 3. 2 billion. In revenue. That looks a little light of what the street was looking for. Hardwarewise. Software at 5. 8 billion, just shy of around the 6 billion level the street was looking for. That probably accounts for eps being where it is. I want to get into this and figure out what the Services Backlog looks like. Last quarter it was 141 billion. That was up about 3 . Thats an important number because it shows what kind of new signings theyre having. Governments can be a big part of that. Gwynn all the turmoil weve seen globally and here in the u. S. , that would be an important sign of stability. Thats a number i want to dig out. But the stock trading down, a little over 3 right now. That revenue shortfall can be a reason why. Probably. Stock down 3. 5 . Back with our guests here. I want to bring into the conversation, dan morgan with reaction to ibm. Senior Vice President , portfolio manager. What can you tell us from the numbers you see at ibm . Initially, that software number, you know, 5. 8 versus 5. 97 billion, thats what i was pretty much looking for, which would have been 3 increase from a year ago. Also hardware, down 11 , that was below estimates. Looks like the key numbers, other than services, which well learn a little more about beating software and hardware look below what the street was looking for. As you said, probably led to that top line number not coming into what people were hoping for. Would you put new money to work in ibm right here, dan . Give me the bottom line. Yeah, we own the stock. Id like to get a little more color in terms of services. But at this point, we would hold onto our shares. Stock trades about 11 times earnings. Its basically below the average, which is around 13. So, it is cheap compared to historically standards. So, its cheap but youre not going to buy any more right here, then . Well, i think, maria, for new accounts, where it makes sense, you know, the stock probably is going to be down on this news. Might be an opportunity from a longterm perspective. I would like to get more color, especially on the 2015 20 share estimate if theyre Still Holding onto that. Lets find out. Jon fortt has more. What do you have . Ive got that backlog number, Services Backlog number. Again, its 14 1 billion. Thats up 2 . It was up 3 compared with last quarter year before. I can look through to see if they give an update on 2015 because i know you were talking about that. I dont see that quite yet but give me a minute to dig it out. Thanks, jon. When you get it, well come back to you and find out more were done with ibm, okay. And im back with Keith Fitzgerald, nathan and amanda drury. Keith, you want to weigh in on ibm . Whats exciting is they have efficiency gains. Thats a confidence factor. If investors see that today thats a good thing coming into a yoelen fed, bernanke transition. Theres more liquidity, if they produce thesis kind of earnings, well come up to that beat. But the stock is trading down. I understand that. But you would buy it because of the efficiency gain . I think its significant. Ill wait until tomorrow and see what happens. But the buy on dip thing is very intact here. Nathan, buy on the dip, you said etfs, you like that over specific stock pickings. I do. When you look at the chart, the only sector thats underperforming in mid cap would be mid cap growth. Other than that, large cap growth, large cap value, large cap blend are all trading at a discount to their historical p. E. Ratios. Everywhere else, small caps, mid caps, trading at a premium. I dont like to buy things at a premium. Like to buy things at a discount. The last couple days we bought on fears instead of fundamentals. But it would tell me big companies, big ones are getting bigger, and thats where youre likely to see growth in earnings. How are you doing it, then . Are you buying mid cap growers . No. Im just buying the etfs that represent basically across the large cap spectrum. Maria, im going to jump in there for two seconds. I think something that will be interesting to watch in the next couple of weeks is postdeal, how much money will come back to the United States because i was looking at data from the ici today, money left u. S. Stock funds for a third week in the weekending october 9th. Where did they go . They went to Foreign International equities. They were the big beneficiaries of this uncertainty weve been seeing here and worries about a default, et cetera, et cetera. It will be interesting to see whether that reverses and whether or not the u. S. Will become more favored over International Equities all over again. You have to wonder if emerging markets have bottomed. For a long time, mandy, thats where the outflows were. We know people have been buying europe for a couple of months. You have to wonder if thats getting expensive at this point but emerging markets, big open question there. Yeah, i think so. Makes a great statement for the strong value, too. Im sorry . Mandy is making a great case for the strong dollar. Absolutely. Are you positive on the dollar on the back of that . That than, anene than, are you the i like the dollar. Im having trouble with the headset. I like dollar. Its going to kill gold for sure. I think its great for american corporations. Well leave it there. Thanks, everybody. Appreciate your time. Much more ahead on todays big rally in stocks. The possible end to the debt ceiling crisis as the clock winds down on the debt ceiling deadline. Were cohosting a ceo congressional summit. Ceos of honeywell and bmc duking it out with representative levin and kingston. General motors dan akerson. Hear about their big push to develop natural gas vehicles. Ebay out with results any moment. Well break down the numbers for you. Stock finishing up 53 and change today. Youre watching the closing bell on cnbc, first in business worldwide. The search is on for the new tech path. Are they winning the battle to innovate and boost . Welcome back. Stocks on a tear today due to hopes of a debt ceiling deal in washington. Bob pisani, pretty good enthusiasm today but is it premature . It may be. Earning are the big deal. Sell on the news ins middle of the day stocks drooped. Take a look at dow jones industrial. Dow is 2 from an historic high. Volatility collapsed today. The vix was almost 19 yesterday. Dow down below 15, thats a threeweek low. Interest rates also dropped, tenyear yield dropped to the downside. That helped interestrate sensitive stocks, Home Building stocks, for example, a lot were up 3 , 4 . Gold back to the bakes, less tapering. Some fear it could be inflationary. Gold moving to upside. Whats next . Thats what everybodys trying to figure out. How much damage has there been to Consumer Confidence . Well get q4 guidance. Were getting it now. Good news, nothing bad from ibm and nothing bad for American Express but concern other companies are lower their guidance and cite lower Consumer Confidence as a problem. This was not an imaginary issue. It happened today in black Decker Stanley works. They lowered Consumer Confidence, citing Government Shutdown effect on confidence. Stanley down 14 . Other big names in that group like masco were down, danaher were down on the day but ended on the upside. This is a real issue and i think youll see some numbers for Fourth Quarter come down. Right now theyre expecting 9 growth in Fourth Quarter. If that goes to zero, stocks will have a big problem. I think its fine if it goes to 4 or 5 . Heres a press release for you. Standard poors, impact of debt ceiling on u. S. Economy getting worse by the day. Standard poors coming out with this press release here, bisquically talking about the fact that to date the shutdown has shaved 0. 6 off annualized Fourth Quarter 2013 gdp growth, taken 24 billion out of the economy. Boom, just what you said. Earnings from ebay, josh lipton with that. How did the auction house do last quarter, josh . Ebay just reporting. Let me get you those numbers. The street was looking for eps of 63 cents on revenue of 3. 9 billion. Ebay reports 64 cents on 3. 89 billion. About in line. We get more insight into ebays two big business marketplaces including ebay. Com, reports 12 higher revenue to 2 billion, inline with what the street was looking for paypal reports 19 higher rove new. About what the street was looking for. As for the outlook, q4 analysts wanted to see epa of 3 on revenue of 4. 6 billion but ebay says theyre looking for eps of 79 to 81 cents. A bit light on revenue of 4. 5 to 4. 6 billion. Well keep looking through the release and get back to you with more insight. Thank you. Joining me to break down ebay earning, dan morgan. We talked about ibm a moment ago. Whats your take on the ebay quarter . Well, looks a little better in terms of when you break out the two key segments, marketplace and payments. Those were pretty much in line. Thats better than we saw from hardware and software out of ibm. I think the guidance for the next quarter, were looking for 83 cents, and i think theyre coming in light on that. We know in the Second Quarter they warned there were problems in International Front with strength of the dollar in korea, uk and europe affecting them. Its now disturbing saying Fourth Quarter well be below that number they warned us on internationals. Thats a little disturbing. The stock is down about 4. 5 right now. What do you want to hear on that Conference Call with management . We want to hear about some of the new initiatives theyre working with. You mentioned paypal. Theyve got a new software or acquisition they did called brain tree, which is used in the payment on mobile devices. Obviously, you want to focus on operating margin, see what they have going on in items of that in the payment segment. So, i think the international, the paypal and new initiatives theyre doing to try to kind of streamline and become more efficient, those are the areas we want to focus in on the Conference Call. Real quick. Would you buy the stock or sell it . Again, maria, the stocks a little cheap on historical basis. Trades about 19 times trailing earnings. I would like to get more color on the guidance before you know, we dont have as big a position in ebay as we do ibm. Id like to get a little more color. At this point looks pretty good. At this point, would like to get more information for responding to that. Thank you for that, dan. Appreciate it. What will it be, natural gas or gasoline . General motors, the usas largest automaker, Just Announced plans to produce and sell a fuel car that can run on natural gas or regular gas. That will happen by next summer. Some believe such a vehicle could be a gamechanger for gm and the industry. A cnbc exclusive, dan akerson joining me from safe conference in washington, d. C. Thank you for joining us. Well, this is very exciting. The whole energy story is exciting in general. I want to hear more about this new vehicle. Before we get do that, let me get your take on the happenings in washington. What do you want to see congress do in the next 90 days to avoid an encore of this debt threat . Well, i think its fair to say that nature abhors a vacuum. Market and consumers hate uncertainty. Although this satisfying a shortterm default requirement to push the economy forward, its not a longterm solution. I think thats a problem. Yeah. So, has it impacted you in terms of, you know, your decision making, you know, sitting on cash, not moving forward on anything . Do you think there has already been damage done to the broad economy . How do you see it . I had some sense of an accommodation. I was hoping for longer term coming out of washington. That being said, General Motors will bill roughly 160 billion this year. Our Capital Program about 15 billion a year. We cant adjust or modify our plans for these political pertovasions ill call them. Its unsettling but were staying the course. I see. Do you expect it to have impacted Consumer Confidence . Consumer spending . Earlier we had larry fink on the show. He said hes expecting a House Republican<\/a> who said that the at the Leadership Meeting<\/a> just concluded. Speaker boehner, entire leadership indicated they were supporting this deal. They said blocking this deal will not be a tactic. They believe an overwhelming bipartisan vote in the house as well. People who have been concerned we would breach that debt limit on october 17th, believe this is the moment to breathe a sigh of relief. Thank you so much. John harwood will keep watching washington. Stocks having a big day on Hopes Congress<\/a> is in works to get a deal done. Joining me is Keith Fitzgerald<\/a> from money map press, nathan backrack, frank braddock, and our own mandy drury. Thank you for joining us. I guess, let me kick this off with you, keith, in terms of the rally today. Would you buy into it . Do you think this is sustainable . I want to see what happens on the open. Theres a lot of earnings coming out. Volume wasnt i would have wanted to see. We might get sell the news phenomenon in the mortgage so im cautious coming into today. Nathan, deal could be close. Well know tonight. Will you buy into the rally . I wouldnt put any more in the u. S. Than what im committed. What i know for sure is i can put away my rise above pin until the middle of january. Other than that, i dont know whats been accomplished. I like europe. I like vgk, i believe the party has just gotten started. And were not too late. Im worried about the bond market. Were keeping Interest Rates<\/a> up because we dont care what you say in the short term, rates are going up in the long term. Rates have room to grow. Im optimistic but we have to see big date that that tells us were actually doing better. Yeah. Were just getting American Express<\/a> earnings out, mandy. 8. 3 0 billion. What are you seeing in terms of the Earnings Period<\/a> so far . Thats a really good point. Once this deal is rubber stamped, and its assumed it is rubber stamped, people are saying, what do we focus on . You have to focus on earnings and also like to focus on economic data, which we havent had much of recently. The problem is with earnings here. I think bob was pounding the table all day. That is, a lot of companies are going to be able to hide behind the shutdown. We saw Stanley Black<\/a> decker and a couple other Companies Start<\/a> to blame the shutdown and blame the guidance as a result of that. I think we need to focus very much over the next few weeks on earnings stimgestimates, start lower and Companies May<\/a> be hiding, perhaps they would have hid behind bad weather, now they can hide behind the shutdown. Because, you know, its certainly a good excuse that theyve been sitting on their hands because of the shutdown. Let me get to dominic chu. He has more on the American Express<\/a> result thats just out. Like you said, the sales number, revenue come in for amex at 8. 3 billion,eati average of 8. 2 billion. Earnings per share coming in at 1. 25, three cents better than average analyst estimate. Comments from ceo about current credit conditions. He said, quote, credit quality indicators remained at historically strong levels and year to date were delivering on the annual targets we are set to contain operating costs. Again, the stock up modestly, about a percent in the aftermarket session. Well keep those shares on moderate. Frank braddock, would you put money to work in this market in terms of the broad indices, up 205 on the dow . Any thoughts on American Express<\/a> . Well, not so much on American Express<\/a>. Have i to tell you, maria, investors have been sanguin going through this discussion, i dont want to get ahead of congress, but if we get a deal, i think we could see a sharp move on the s p in the next few weeks. You think well see an upside. Whats going to be behind that . Well, ive got to tell you, some is just investors and psychology right now. Momentum is moving in the right direction. Frankly, if you look at thinks like biomed stocks, drug stocks, retail stocks, Sector Performance<\/a> has been really very good. So im actually very excited now. Ive been cautious going into this whole thing but now im more excited than have i been in the last few months. But consumer discretionary, eight stocks are driving that index. Every other stock in that index hasnt kept up with it. Best buy up 250 . Thats whats driving it. Its not broad based. Thats why i like etfs. I want to ask you about etfs in a second. Imbm is out with earnings. Better than expected. Revenue, once again, looks like a disappointment. 23. 7 billion versus estimate of 24. 5. Jon fortt all over the numbers. Maria, what you said, absolutely correct. I wanted to dive in and look at a couple of numbers specifically. Hardware came in at 3. 2 billion. In revenue. That looks a little light of what the street was looking for. Hardwarewise. Software at 5. 8 billion, just shy of around the 6 billion level the street was looking for. That probably accounts for eps being where it is. I want to get into this and figure out what the Services Backlog<\/a> looks like. Last quarter it was 141 billion. That was up about 3 . Thats an important number because it shows what kind of new signings theyre having. Governments can be a big part of that. Gwynn all the turmoil weve seen globally and here in the u. S. , that would be an important sign of stability. Thats a number i want to dig out. But the stock trading down, a little over 3 right now. That revenue shortfall can be a reason why. Probably. Stock down 3. 5 . Back with our guests here. I want to bring into the conversation, dan morgan with reaction to ibm. Senior Vice President<\/a> , portfolio manager. What can you tell us from the numbers you see at ibm . Initially, that software number, you know, 5. 8 versus 5. 97 billion, thats what i was pretty much looking for, which would have been 3 increase from a year ago. Also hardware, down 11 , that was below estimates. Looks like the key numbers, other than services, which well learn a little more about beating software and hardware look below what the street was looking for. As you said, probably led to that top line number not coming into what people were hoping for. Would you put new money to work in ibm right here, dan . Give me the bottom line. Yeah, we own the stock. Id like to get a little more color in terms of services. But at this point, we would hold onto our shares. Stock trades about 11 times earnings. Its basically below the average, which is around 13. So, it is cheap compared to historically standards. So, its cheap but youre not going to buy any more right here, then . Well, i think, maria, for new accounts, where it makes sense, you know, the stock probably is going to be down on this news. Might be an opportunity from a longterm perspective. I would like to get more color, especially on the 2015 20 share estimate if theyre Still Holding<\/a> onto that. Lets find out. Jon fortt has more. What do you have . Ive got that backlog number, Services Backlog<\/a> number. Again, its 14 1 billion. Thats up 2 . It was up 3 compared with last quarter year before. I can look through to see if they give an update on 2015 because i know you were talking about that. I dont see that quite yet but give me a minute to dig it out. Thanks, jon. When you get it, well come back to you and find out more were done with ibm, okay. And im back with Keith Fitzgerald<\/a>, nathan and amanda drury. Keith, you want to weigh in on ibm . Whats exciting is they have efficiency gains. Thats a confidence factor. If investors see that today thats a good thing coming into a yoelen fed, bernanke transition. Theres more liquidity, if they produce thesis kind of earnings, well come up to that beat. But the stock is trading down. I understand that. But you would buy it because of the efficiency gain . I think its significant. Ill wait until tomorrow and see what happens. But the buy on dip thing is very intact here. Nathan, buy on the dip, you said etfs, you like that over specific stock pickings. I do. When you look at the chart, the only sector thats underperforming in mid cap would be mid cap growth. Other than that, large cap growth, large cap value, large cap blend are all trading at a discount to their historical p. E. Ratios. Everywhere else, small caps, mid caps, trading at a premium. I dont like to buy things at a premium. Like to buy things at a discount. The last couple days we bought on fears instead of fundamentals. But it would tell me big companies, big ones are getting bigger, and thats where youre likely to see growth in earnings. How are you doing it, then . Are you buying mid cap growers . No. Im just buying the etfs that represent basically across the large cap spectrum. Maria, im going to jump in there for two seconds. I think something that will be interesting to watch in the next couple of weeks is postdeal, how much money will come back to the United States<\/a> because i was looking at data from the ici today, money left u. S. Stock funds for a third week in the weekending october 9th. Where did they go . They went to Foreign International<\/a> equities. They were the big beneficiaries of this uncertainty weve been seeing here and worries about a default, et cetera, et cetera. It will be interesting to see whether that reverses and whether or not the u. S. Will become more favored over International Equities<\/a> all over again. You have to wonder if emerging markets have bottomed. For a long time, mandy, thats where the outflows were. We know people have been buying europe for a couple of months. You have to wonder if thats getting expensive at this point but emerging markets, big open question there. Yeah, i think so. Makes a great statement for the strong value, too. Im sorry . Mandy is making a great case for the strong dollar. Absolutely. Are you positive on the dollar on the back of that . That than, anene than, are you the i like the dollar. Im having trouble with the headset. I like dollar. Its going to kill gold for sure. I think its great for american corporations. Well leave it there. Thanks, everybody. Appreciate your time. Much more ahead on todays big rally in stocks. The possible end to the debt ceiling crisis as the clock winds down on the debt ceiling deadline. Were cohosting a ceo congressional summit. Ceos of honeywell and bmc duking it out with representative levin and kingston. General motors dan akerson. Hear about their big push to develop natural gas vehicles. Ebay out with results any moment. Well break down the numbers for you. Stock finishing up 53 and change today. Youre watching the closing bell on cnbc, first in business worldwide. The search is on for the new tech path. Are they winning the battle to innovate and boost . Welcome back. Stocks on a tear today due to hopes of a debt ceiling deal in washington. Bob pisani, pretty good enthusiasm today but is it premature . It may be. Earning are the big deal. Sell on the news ins middle of the day stocks drooped. Take a look at dow jones industrial. Dow is 2 from an historic high. Volatility collapsed today. The vix was almost 19 yesterday. Dow down below 15, thats a threeweek low. Interest rates also dropped, tenyear yield dropped to the downside. That helped interestrate sensitive stocks, Home Building<\/a> stocks, for example, a lot were up 3 , 4 . Gold back to the bakes, less tapering. Some fear it could be inflationary. Gold moving to upside. Whats next . Thats what everybodys trying to figure out. How much damage has there been to Consumer Confidence<\/a> . Well get q4 guidance. Were getting it now. Good news, nothing bad from ibm and nothing bad for American Express<\/a> but concern other companies are lower their guidance and cite lower Consumer Confidence<\/a> as a problem. This was not an imaginary issue. It happened today in black Decker Stanley<\/a> works. They lowered Consumer Confidence<\/a>, citing Government Shutdown<\/a> effect on confidence. Stanley down 14 . Other big names in that group like masco were down, danaher were down on the day but ended on the upside. This is a real issue and i think youll see some numbers for Fourth Quarter<\/a> come down. Right now theyre expecting 9 growth in Fourth Quarter<\/a>. If that goes to zero, stocks will have a big problem. I think its fine if it goes to 4 or 5 . Heres a press release for you. Standard poors, impact of debt ceiling on u. S. Economy getting worse by the day. Standard poors coming out with this press release here, bisquically talking about the fact that to date the shutdown has shaved 0. 6 off annualized Fourth Quarter<\/a> 2013 gdp growth, taken 24 billion out of the economy. Boom, just what you said. Earnings from ebay, josh lipton with that. How did the auction house do last quarter, josh . Ebay just reporting. Let me get you those numbers. The street was looking for eps of 63 cents on revenue of 3. 9 billion. Ebay reports 64 cents on 3. 89 billion. About in line. We get more insight into ebays two big business marketplaces including ebay. Com, reports 12 higher revenue to 2 billion, inline with what the street was looking for paypal reports 19 higher rove new. About what the street was looking for. As for the outlook, q4 analysts wanted to see epa of 3 on revenue of 4. 6 billion but ebay says theyre looking for eps of 79 to 81 cents. A bit light on revenue of 4. 5 to 4. 6 billion. Well keep looking through the release and get back to you with more insight. Thank you. Joining me to break down ebay earning, dan morgan. We talked about ibm a moment ago. Whats your take on the ebay quarter . Well, looks a little better in terms of when you break out the two key segments, marketplace and payments. Those were pretty much in line. Thats better than we saw from hardware and software out of ibm. I think the guidance for the next quarter, were looking for 83 cents, and i think theyre coming in light on that. We know in the Second Quarter<\/a> they warned there were problems in International Front<\/a> with strength of the dollar in korea, uk and europe affecting them. Its now disturbing saying Fourth Quarter<\/a> well be below that number they warned us on internationals. Thats a little disturbing. The stock is down about 4. 5 right now. What do you want to hear on that Conference Call<\/a> with management . We want to hear about some of the new initiatives theyre working with. You mentioned paypal. Theyve got a new software or acquisition they did called brain tree, which is used in the payment on mobile devices. Obviously, you want to focus on operating margin, see what they have going on in items of that in the payment segment. So, i think the international, the paypal and new initiatives theyre doing to try to kind of streamline and become more efficient, those are the areas we want to focus in on the Conference Call<\/a>. Real quick. Would you buy the stock or sell it . Again, maria, the stocks a little cheap on historical basis. Trades about 19 times trailing earnings. I would like to get more color on the guidance before you know, we dont have as big a position in ebay as we do ibm. Id like to get a little more color. At this point looks pretty good. At this point, would like to get more information for responding to that. Thank you for that, dan. Appreciate it. What will it be, natural gas or gasoline . General motors, the usas largest automaker, Just Announced<\/a> plans to produce and sell a fuel car that can run on natural gas or regular gas. That will happen by next summer. Some believe such a vehicle could be a gamechanger for gm and the industry. A cnbc exclusive, dan akerson joining me from safe conference in washington, d. C. Thank you for joining us. Well, this is very exciting. The whole energy story is exciting in general. I want to hear more about this new vehicle. Before we get do that, let me get your take on the happenings in washington. What do you want to see congress do in the next 90 days to avoid an encore of this debt threat . Well, i think its fair to say that nature abhors a vacuum. Market and consumers hate uncertainty. Although this satisfying a shortterm default requirement to push the economy forward, its not a longterm solution. I think thats a problem. Yeah. So, has it impacted you in terms of, you know, your decision making, you know, sitting on cash, not moving forward on anything . Do you think there has already been damage done to the broad economy . How do you see it . I had some sense of an accommodation. I was hoping for longer term coming out of washington. That being said, General Motors<\/a> will bill roughly 160 billion this year. Our Capital Program<\/a> about 15 billion a year. We cant adjust or modify our plans for these political pertovasions ill call them. Its unsettling but were staying the course. I see. Do you expect it to have impacted Consumer Confidence<\/a> . Consumer spending . Earlier we had larry fink on the show. He said hes expecting a Fourth Quarter<\/a>. What about you . I think its too early. Were 15 days into the quarter. Were seeing growth similar to what we saw the last couple of months and all the way back into last october. Its too early to call. But uncertainty is not a good thing. Essential, our political processes have injected a high degree of uncertainty into the market. Dan, let me ask you about this new vehicle. A bifuel natural gas chevy impala. Talk about this concept and do you think it will gain traction with consumers . Well, we have a new car, the impala, which Consumer Reports<\/a> calls the best sedan in america. We invented an engine that will burn compressed natural gas or regular gasoline, liquid gasoline. Well have to put two energy reservoirs, known as tanks, one for gasoline, 3600 psi cng tank in the car. That will increase the cost of it. At the same time, it gives cleaner energy and compressed natural gas sells at about a third to half of what the equivalent btu count would be for gasoline. So, theres cost advantages. We dont think this will be a great seller in its first year. Maybe 1,000 or less. Simply because the infrastructure is not resident in the consumer space across this country. Most cng fleets are that, either commercial, for example, Waste Management<\/a> or federal express, where they go back to a central fueling station every night. The reason im here is to kind of push the industry the Energy Industry<\/a> to look for more ubiquity getting natural gas at consumer stations. A lot of people say natural gas is the boom for the economy, were rich in natural gas. The u. S. Can become a natural gas exporter. Do you believe that . What can be done to capitalize on the natural gas richness that is, in fact, part of the u. S. Economys makeup . Going back to the time of president nixon and forward, we have every Political Party<\/a> and every political personality said we need a natural a National Energy<\/a> policy. And yet we dont have one. One that encompasses a manufacturing, energy, environmentalist, unions, and has a coming together so we can formulate a 30 or 40year plan whereby we would be, because we do have the natural resources, to be energy independent. To give you a perspective. There are more btus of energy represented in the form of gas than btus of energy in the form of oil in saudi arabia. We have this moment in time, its not going to last forever, where we need to formulate a crossindustry National Energy<\/a> plan that includes to a large degree cng and lng. There are many government policy issues is he greated into a National Energy<\/a> policy that need to be debated, argued out and decided upon. All right. Well leave it there. Good to have you on the program. Thanks very much. Well be watching the progress on this new vehicle, sir. We so appreciate you talking to us about it. Thank you. Daniel akerson joining us, ceo at General Motors<\/a>. Deja vu all over again. Two ceos in the same conversation with two members on fixing the debt mess and what its doing to Business Confidence<\/a> in the country. Thats next. Then jeff cox says tonights debt ceiling deadline is bogus, and so is the next one because we do have enough money to pay our bills. Cant avoid these next two segments. Customer erin swenson ordered shoes from us online but they didnt fit. Customers not happy, im not happy. Sales go down, im not happy. Merch comes back, im not happy. Use ups. They make returns easy. Unhappy customer becomes happy customer. Then, repeat customer. Easy returns, im happy. Repeat customers, im happy. Sales go up, im happy. I ordered another pair. Im happy. both im happy. Im happy. Happy. Happy. Happy. Happy. Happy happy. I love logistics. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Jbut when it comes to investing, things i prefer to do on my own. I just think its better to work with someone. Someone you feel you can really partner with. Unfortunately, ive found that some Brokerage Firms<\/a> dont always encourage that kind of relationship. Thats why i stopped working at the old brokerage, and started working for charles schwab. Avo what kind of Financial Consultant<\/a> are you looking for . Talk to us today. So you can get out of your element. So you can explore a new frontier and a different discipline. Get two times the points on travel and dining at restaurants from chase sapphire preferred. So you can be inspired by great food once again. Chase sapphire preferred. So you can. Welcome back. A debt ceiling deadline is on the table. A rote is on the table. Tminus seven hours, until that drop dead time when the government says, we wont have cash to pay the bills. Jeff cox says, dont panic. They wont go broke, whether the measure passes in the senate and house tonight. Jeff . The first thing to remember is the United States<\/a> was never going broke thursday. Now, the longterm picture was not very good if we had defaulted but the government has enough money on hand to continue operations for as much as maybe two more weeks. Lets look at a few numbers here. The treasury has 35 billion in cash reserves it can use to run the government. We spend about 13. 3 billion a day. We take in about 10. 8 billion a day. That leaves us with a 2. 5 billion a day gap that we need to reserve from the reserve we need to use from the reserve account. We do some basic math, that tells us there are about 14 days worth of funding to keep the government going even passed the day where it can no longer borrow. Whats beyond that point . Thats the scariest prospect, especially if you live in the United States<\/a>, because thats the point the government can only spend as much as it takes in each day, which is pretty scary if you live in the u. S. Absolutely. Even though, jeff, you probably dont want to even get in the neighborhood of i see what youre saying. We are okay until midnovember. More on the debt crisis and Government Shutdown<\/a> coming down. Thanks very much, jeff cox. Stick around for our first ceo congressional summit. Ceos of honeywell and bmc talk with representatives levin and kingston. Only on cnbc. Americans take care of business. They always have. They always will. Thats why you take charge of your future. Your retirement. Ameriprise advisors can help you like theyve helped millions of others. Listening, planning, working one on one. To help you retire your way. With confidence. Thats what Ameriprise Financial<\/a> does. Thats what they can do with you. Ameriprise financial. More within reach. Thats what they can do with you. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets<\/a> and drive forward with broader possibilities. Cme group how the world advances. Welcome back. A debt deal is getting put to a vote on capitol hill right now. The end of the Government Shutdown<\/a> is in sight but has the damage already been done . Yesterday on this program we heard from Dallas Federal Reserve<\/a> president richard fisher. This morning on squawk box billionaire Warren Buffett<\/a> talked about the countrys credibility. Take a listen. Well see what happens and what kind of deal is cut and what is promised. But, maria, i dont think the world believes us any more. Weve been building a reputation for proper fiscal behavior with our currency, at least, for 237 years. The United States<\/a>, weve become the reserve currency of the world in the process. People all over the world hold our paper. So, to give up dab or to do anything that damages a 237year period of Good Behavior<\/a> is idiocy. Okay. What can be done to win back trust . We put together a mini ceo congressional summit. From washington with us today, representative sander levin, ceo of honeywell. What do you want to see congress do in the next 90 days. David . I break this into two pieces. Its good we reopen the government and not breach the debt ceiling. That deserve applause. Thats something we should be doing anyway. The big thing we need to get done in the next 90 days is use this time to address our entitlements issue long term. I understand the price for that will be a tax increase, revenue increase, whatever they want to call, it but thats the dialogue. Weve had three or four years where there hasnt been any engage between house and senate and republican and democratic to get that started. This is an opportunity to get that dialogue done. Theres no reason they cant come up with a preliminary plan or draft plan in 90 days. I understand politically it might be tough but in terms of the data and decisions that need to be made, thats pretty well understood. Bob beauchamp youre next. Congressman has been joining us. Thank you. You just heard what david cote had to say, bob. What would you like to see from congress . Theres two parts to this. Theres the shortterm part where these manmade crisis have to stop. We have to get rid of the mentality that it makes headlines, but it causes us to stop and slow down spending. As we talk about sustainable energy, we need to talk about a sustainable Economic Policy<\/a> and get away from the extreme poe layer polarity in our politics and get to us a sustainable Economic Policy<\/a> in our country. Business will be productive if they just let us. Congressman sandy levin, jack kingston. This is not foreign to you. Youve heard this before. We hear it every day on cnbc. What are you going to do about it . Well, i think whats important is that you know, and i kind of live in the dream world, but i would love to have as much excitement about the debt as we have had about the shutdown, because the shutdown is really small potatoes opposed to going broke. Our National Debt<\/a> is 100 to the gdp. For every dollar we spend it costs 42 cent. I think we can get to longterm entitlement reform. We also have the sequestration thats going to be taking place january 1st. Thats the law of the land. And those of us who are close to it have concern that the sequestration cuts out the fat and the muscle without regard to either one. And i think we would like to direct the spending a little bit more towards the waste and the inefficiency. And i dont see any reason why democrats and republicans cant get together on these things. So let me go ahead, sandy. Let me add. I think what the two Business People<\/a> said is absolutely correct. We never should have gone through this. Theres a lesson to be learned. Dont hold the credit of this country hostage. Health care reform, thats part one. Part two, approach these issues that have to be balanced, there has to be a look at budget cuts, a look at revenues. Im concerned about what mcconnell said, the leader on the senate side, who seemed to be so hard line. We need to end that inflexibility, sit down, have an open mind and to some extent, an open stance. Essentially what we had from the republicans in the house and senator cruz was a very, very rigid stance. That led to these difficulties that never should have happened. Congressman kingston, what do you have to say for yourself . Let me say this. We have had a 600 billion tax increase that has gone into effect. That was the result of one of the last summits. What we did not get were the spending cuts, except for sequestration, sandy and i would agree, its not the most efficient way to reduce spending. In the long term you have to get to the real sensitive stuff. That means retirement. That Means Health Care<\/a> benefits. That means military spending. We both parties have been very guilty of not wanting to touch the sacred cows that are within there. But i think anything that can move those programs to more marketdriven approach is going to increase their efficiencies and cut down their waste. And theres a lot within those budgets that i think we can find agreement on. Yeah, i want to let the record i want the record to be clear. The budget cuts since 2011 have been twice the revenue increases. Thats the record. And so i think we need to get that straight. There has to be balance in our approa approach. We we have the rigidity that engulfs this institution, that consumes the House Republican<\/a>s, we wont get anywhere. Sandy levin, you keep blaming the House Republican<\/a>s. Everybody agrees that entitlements need to be changed. How come you havent done it yet . Because weve been at each others throats politically. Because weve had in House Republican<\/a> ranks extremism that is essentially hamstrung this place and almost imprisoned it from doing things that need to be done. I hope were now released from that imprisonment and we can proceed further. I like this perception of this having been a prison weve been in for three, four years. I agree with that. Your point is absolutely on the market. Entitlements are going to chew us up. We can make it through this decade. Its the second decade and third decade that already kill us, as my generation your grand kids. My retirement, as i start spending medical bills, medicare will skyrocket. If we make these changes now, theres time for the system and time for the people to react and to change and to adapt to it. If we wait until that moment comes and where now were starting to get 100 debt to gdp, now we have a huge problem. This three months is really an opportunity that has not existed up to this point for both sides, both houses to talk to each other. We shouldnt pass up this opportunity. I agree with that. I agree with that. If we learn the lesson from these couple of months, if we learn that lesson and proceed, then we can. Well, that lessons have we learned . My way or the highway, well get nowhere. Let me say this, sandy. As you know, we came together as parties in 1996 and reformed welfare. At that time there were 14 Million People<\/a> on it. The number dropped to 4 million. It was very positive. It was signed into law by bill clinton and it worked. I think we can use that as a model to come together again. But theres Something Else<\/a> ip want to say. We need regulatory stability. One thing thats kept Investment Capital<\/a> on the sideline is the changing regulatory environment. And if businesses know what the rules are, then theyll come off the sideline adjust to those rules. True. But what we keep seeing is too much fluctuation. I think thats hurting the growth element of that equation. Is that right, business guys . Dave, bob, weigh in here. Sure, sure. All Business People<\/a> have to look at the macro environment and decide, are we going for high growth environment, are we pulling back, are we going for a cautionary approach . When you dont know what youre facing, you have no option. You cant run the aggressive play. You cant hire a lot of people. You cant make all the investments in capital equipment. You have to run a more conservative play. This is holding back jobs, holding back growth. We need this stable platform. We need to see the spending and debt in the out years yes, we have the shortterm issue, but in the out years, if enfilgtsment enfilgtsmentes dont come back, when Interest Rates<\/a> rise, Central Banks<\/a> reverse course, well see the debt problem become a much worse problem and a much worse discussion in a few years. The mention of stability and then the other businessman should please, you participate fully because thats what you need. You talk about stability. Thats what we havent had these last couple of months. I would say get back to whats needed, Business People<\/a> very nervous about what governments going to do. The problem we run into globally is its not just the u. S. You take a look at the worlds big democracy, theyre all consumed over their debt. Japan, india, eu, u. S. , somebody needs to provide leadership here. I think you could see change in the eu happen if the u. S. Ste tharted lead on ourwhere w youve a weak Fourth Quarter<\/a> because of this . Tough toknow. Bo st got backrom f seeing five cios, five major organizations, theyre invested pretty heavily in technology. Well leave it there. Congressman at the table, are you going to blow this opportunity or get something done . If you dont get anything done, should you be pushed out of your positions, i think . My sleeves are rolled up to get to work. I would start immediately with building the keystone pipeline. It would send a strong message for job creation and for energy independence. And i think that would be the just the beginning. Sandy levin, final word here. Yeah, we need to pitch in. We need to take advantage of these three months. We need to have a much broader discussion than, for example, bringing up keystone pipeline. Weve got a broader economic challenge ahead. We need to sit down and we need to promote Economic Growth<\/a> and jo jobs. And to do it together and not have one side hold up the credit of this country. No shortage of divergence of opinion but we need to get them in the same room at the same time. We appreciate it, gentlemen. Our viewers wish you well and well be watching. Its as simple as this. At bny mellon, our business is investments. Managing them, moving them, making them work. We oversee 20 of the worlds financial assets. And that gives us scale and insight no one else has. Investment management combined with investment servicing. Bringing the power of investments to peoples lives. Invested in the world. Bny mellon. [ male announcer ] eeny, meeny, miny, go. More adventures await in the new sevenpassenger lexus gx. Lease the 2014 gx 460 for 499 a month for 27 months. See your lexus dealer. With fidelitys options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Welcome back. This market gained a lot of altitude on hopes lawmakers will green light a budget deal. Dominic chu, movers and shakers right now. Earnings round up. Big tech, ibm, its a big drop for big blue. It reported earnings that beat wall street estimates but a drop in revenues that has investors scared. Those revenues fell 4 below analyst expectations. Ceo commented the company has aggressively pursued higher Growth Opportunities<\/a> in cloud computing, mobile and, of course, Business Analytics<\/a> and security. Also on the tech front, ebay, Online Auction<\/a> house, reported earnings. Also down big in the aftermarket. Auction house rort r reported earnings that slightly beat. The Fourth Quarter<\/a> is usually viewed as a critical quarter. Flipping the payments out of things, the credit card Payment Company<\/a> posted earnings and sales. Thats after its earnings missed estimates given the uncertain economy and all the other mattress makers are down in sympathy. Thank you so much. We have more breaking news now on the mark cuban trial. Reporter yeah, he said you know what . I spent much more money trying to fight this, paying my legal fees than had i just paid the 2. 5 million charge to the sec but he says it was well worth it. Here is what he told us just minutes ago. Im the luckiest guy in the world. Im glad this happened to me and im glad that i can afford to stand up to them. I dont want anything from them except for them to act like american citizens and treat other american citizens the way they deserve to be treated. The sec claimed he dumped his shares after he got a private call about a new offering but cuban has always said look, i did nothing wrong. I had information that was open defendants dont usually want to be spending money in court but he said he ha had something to prove and here is what he said. When you put someone on the stand, its personal. When you take all of these years in my life, its personal. The people in this case could have said something and didnt say anything and thats just wroung. Few so much. Appreciate that breaking story. Could we see a flood in tomorrow if we see that deal hit some glitches . Wall street money pros give you a leg up. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. Even when we cross our ts and dot our is, we still run into problems. Thats why Liberty Mutual<\/a> insurance offers accident forgiveness if you qualify, and new car replacement standard with our auto policies. So call Liberty Mutual<\/a> today. And if you switch, you could save up to 423. Liberty mutual insurance. Responsibility. Whats your policy . Welcome back. Breaking news out of washington. Hey, john. Maria, when things raising the debt limit should occur about 6 00 p. M. Just about an hour from now. Then it would go to the house. It seems like this will be done well before midnight. Do you think this deal is going to be enough to calm markets down . I would expect so. Were looking for votes in the senate based on what leadership aides tell me of more than 80 votes in the senate. It is likely to be pretty calming this evening. We were on a recap the huge day when we come back. Stay with us on closing bell. P. But when it comes to investing, i just think its better to work with someone. Someone you feel you can really partner with. Unfortunately, ive found that some Brokerage Firms<\/a> dont always encourage that kind of relationship. Thats why i stopped working at the old brokerage, and started working for charles schwab. Avo what kind of Financial Consultant<\/a> are you looking for . Talk to us today. Because what you dont know can hurt you. Urance, what if you didnt know that its smart to replace washingmachine hoses every five years . What if you didnt know that you might need extra coverage for more expensive items . And what if you didnt know that teen drivers are four times more likely to get into an accident . sup the more you know, the better you can plan for whats ahead. Talk to farmers and get smarter about your insurance. We are farmers bum pa dum, bum bum bum bum i have obligations. Cute tobligations, but obligations. G. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks<\/a> for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. 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. At a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit<\/a> card. Whered you get that sweater vest . Your ford dealer. Welcome back. Before we go, lets look at the day on wall street. 205 point rally. We finished at the highs of the day. 15,373 is where the dow finished out as investors are optimistic. Raising the debt ceiling and reopening the government. Also strong today, 45 points higher on the nasdaq. My observation returns tomorrow. I hope you will join me for that. Live from the new york market site, investors and Business Leaders<\/a> are looking for answers right now on capital hill where a vote could come at any moment. Republican oos","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800904.us.archive.org\/5\/items\/CNBC_20131016_200000_Closing_Bell_With_Maria_Bartiromo\/CNBC_20131016_200000_Closing_Bell_With_Maria_Bartiromo.thumbs\/CNBC_20131016_200000_Closing_Bell_With_Maria_Bartiromo_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240620T12:35:10+00:00"}