Over why apple wont fix her broken ipad. Its a rich story, folks. Apple fighting back, but dont worry, we have the perfect person to fix your pad for your. Sue, meanwhile is at the nyse. How are you . Hi, ty. Im good. As you mentioned two brands in trouble, jc penney stock hitting Single Digits on concerns that retailer doesnt have enough cash to fund its operations into the Holiday Shopping season. It expects to raise 932 million in a stock sale. For blackberry it lost a billion dollars in its latest quarter paying out millions to executives. We have Courtney Reagan on the jc penney and seema mody on blackberry. Court, you go first on jc penneys attempts to turn things around or try to. Thats right. Good evening to you, sue. The retailer announcing it expects to end the year with liquidity in excess of 1. 3 billion, 200 million less than it expected at its Second Quarter earnings announcement. Jc penneys cash burn has been concern for a while. Its transformation isnt cheap. Its been a considerable amount of money building out its new shops. Two more are launching, here at this store behind me in new york city, the company held a media event showing off its two new shops, giggle and disney. It will be 565 of them in Jc Penney Stores throughout the country. Others lines, ted baker and flowers by zoe. The Senior Vice President in charge of kids had to clear the floor of some of the, quote, unproductive brands to make way for the new labels. Kids represents about 12 of jc penney sales. We were able to speaks to the founder of giggle inside and how she feels launching 565 new shops in jc penney as concerns continue to swirl about the companys Financial Condition and vendor confidence. This what is she had to say. We can already see early numbers online and some of their online, quick rebound in having online perform is really encouraging to me for what they can do as a brand and absolutely theyre talking to us about this all the time. Theyve been great partners. And so jc penney soldiers on with a basic tenant of retailing selling merchandise as long as the vendors remain committed they will be able to continue on for some time more. That is what everyone is going to be watching the sales as we move into the second half of the year and the Holiday Quarter is just around the corner. Sue and tyler. Court, thank you very much. Lets drill down on at future of jc penney. Can that retailer be revitalized. Stacy is a cnbc contributor and joins us on the newsline right now. Stacy, youve been critical of this company but i also have to add youve been right on in terms of how you see this story unfolding. Look into the future for me were going into the Holiday Shopping season, what do you see for jc penney . Now heres a whole new problem. I think if you search on google under [ inaudible ] credibility a picture of jc penney will pop up. Now you have a Management Team that basically yesterday, they came out with this press release saying the reports are wrong, sales are fine. They even said they expect positive comps in q4. Why would you put that out there . Not only that but they came out after the bell with the Share Offering. Right now if you take a look at the future, first of all now you have a management credibility problem. You have to bring in a new team. On top of that, sorry, go ahead. Go ahead, stacy. Finish your thought. I was going to say, on top of that, you know, certainly now you scared the customer away. Thats not changing. Things are really not turning in the right direction. Youre going to have to keep couponing to get the consumer back in the store. What happens to margins in the long term some. Exactly. Online sales, i dont know if you were able it to hear the sound bite of the person that Courtney Reagan interviewed saying online sales have been strong, but you point out in a note you gave to us that online sales were negative 37. 3 last year. So, what do you anticipate in terms of any potential growth for online sales . Yeah. I mean, last year online sales were a complete disaster. I mean, in a time where all most companies are growing double digits, you know, jc penney was down 30 plus percent online. Now theyre up double digits. Im not ready to throw a party yet. Yes, that is will be a focus for them. That will help. But again, the real problem here is the real estate. The problem is getting the foot traffic back in the stores. I think online is great that its improving, but it is so not the First Priority that should be out there. Its getting those consumers back in the store. All right. Stacy, thank you very much. Ty, up to you . Folks, thank you. Blackberry down 20 in just the past month. What a dive this stock has seen over the past couple years. Seema mody here, blackberry lost a billion dollars, but it is in the latest quarter but its the executive compensate for the ceo. Does a ceo deserve a package when the company theyre leading is suffering. According to reports blackberrys ceo could rake in 55 million if the company is sold or his job is terminated. This cushy golden parachute said to have been secured by three Board Members including prima watson of fairfax. A professor at yale school of management said heins was the wrong guy for the job and now his compensation package is calling into question whether ceos deserve such high payouts when the companies they are leading are under performing. Other highprofile exit pay packages include carry fiorina paid 21 million even though shares of hewlettpackard fell during her reign. Bob nardeli of home depot paid a serve ran package of 210 million. Henry mckinle of pfizer received 196 million even though shares while he was ceo dropped 30 . William mcgwire got 1. 2 billion. The shares of United Health gained roughly 5,000 while he was ceo. I spoke to one professor at the Columbia Business School and he told me it comes down to the boards putting together realistic payout schemes that are performance based that could potentially what is so curious here, mr. Heins pay package was revised upward, tripled back in what the spring in april, mr. Prem who is the guy now trying to take the company private, was part of the group as you said that boosted his pay package. Experts tell me thats probably because wassa wanted had imto stay there. It was going to be a tough road for blackberry es special list with the bb 10 launch in place. Thats not what happened. All right. Thanks very much. Seema mody reporting. Lets bring in brine, Senior Analyst with morning star. Is he making too much for a company thats done nothing but suffer . Sure. The easy answer yes. Hes getting paid as if hes in charge of a successful 15 billion company and the truth is hes in charge of an unsuccessful 6 billion company. The reason whe probably got the pay package, you alluded to, he needed to stay on through this transition. We can only imagine what would have happened to blackberry share price if there was another ceo. Im sure that went into the thinking at the time. I can well imagine if i was a share holder of blackberry, which im not, i would be ticked off. Talk about the future of blackberry. Can the company survive, brine brian . Its going to be difficult. This 9 takeout offer is the best and only offer. If that doesnt go through youre looking at a further floor. Theyre selling for cash plus patents on hand. Im skeptical theyre going to turn into any significant player in the smartphone pace. The private equity side is maybe they could sh rirng the business enough to be an enterprise only Company Selling to governments. Quite frankly we would take it at 9 and hope that the 9 goes through and thats the best deal for investors. The market doesnt seem to be saying the 9 will go through. When that offer came out i believe a week ago the stock blipped toward 9 but nothing but slide back around 8. We have a chart of blackberry we can throw up quickly. There you see it. 8. 12. Right now up 2 . 17 cents. Broin, thanks very much. Youre welcome. You bet. All right. There are stocks doing well. Call it the sneaker trade. Nike hitting a record high. Reporting better than expected quarterlies, boosted by big sales, gains in north america and over in europe surprisingly. Future orders rising 10 . Finish line reporting better than expected results on increased revenue and there you see finish lines stock up 27 year to date. Thats a nice one. Its benefiting also foot locker its rival higher as you see, only foot locker is failing to beat the s p 500 so far this year. Sue . We have more for you, ty. Facebook hitting another record high. While yahoo hitting multiyear highs. Yahoo at its highest level since october of 2007 over the excitement ability an alibaba ipo. All three having a great year. Easily beating the s p 500. All right. Wall street keeping a close eye on congress and that battle over the budget. Three days and counting now to a potential government shutdown. Chief washington correspondent john harwood here with the latest on the negotiation and the voting. Last i saw there was actually a vote taking place. John . Tyler, the senate has now voted to end debate on the underlying bill which would extend government funding through the middle of november. Now were in a voting process, just in the next few minutes, where harry reid is going to offer an amendment the democratic leader to strip out the provision the house had passed to defund obama care. So the senate is on the verge within the hour of passing a clean extension of government funding for a couple of months to permit negotiations over a longer term budget deal. Then the house of representatives is going to have to decide and thats a decision for speaker john boehner, how to proceed. For now harry reid was thankful that republicans, more han of that in the republican caucus, went against ted cruz and his filibuster and voted to move forward. Heres harry reid. Im confident many of my republican colleagues will vote with us to allow the government to perform its basic duties. Together well send a message to radical republicans that we will not allow the law of the land to be used as a hostage. Reporter but now the bill is going to go back later this afternoon into the hands of the House Republican caucus and Speaker Boehner is going to have to decide whether republicans are willing to avoid a shutdown and extend government funding, or whether hes going to have to turn to Democratic Leader Nancy Pelosi and get a significant number of votes from her and pass an extension of government funding with republican and democratic votes. If he doesnt do that, and the house cant pass the extension, were going to go into a shutdown while the who chambers continue to go back and forth. All right. John, thank you. Ill take it. Thats whats pressuring stocks today on wall street. Among other things, but washington really does loom large today. Were down 60 points on the Dow Jones Industrial average. The nasdaq is down almost 1. 5 points. The s p 500, is off almost 6 points. More on the trading action with Mary Thompson, on the nyse floor today. Hey, sue. Those concerns about washington, offsetting decent news on personal income and spending today. The markets lower throughout the session. Note they have come off the lows, though, in recent trading now the dow is off just about 60 points. We have seen a little strengthening in the drug sector and oil services looking healthier with the banks than they were earlier today. Lets take a look at dow movers today to the downside. Weakness in big tech names and telecom names. Verizon, cisco, ibm. Nike, the new dow component is the biggest winner among the 30 after reporting those strong results. Microsoft, getting a bid from the news that alan mulally the ceo of ford is reportedly the frontrunner for the ceo job. Couple of other stocks, the stock of the day is jc penney. Keeping watch on that. The Share Offering one which will increase the number of shares outstanding by about 38 and dilute its earnings by roughly 28 . Were seeing weakness in gaming stocks. Igt downgraded at deutsch from a hold to a buy. Citing an extended run on inline results and also concerns about the gaming, the Industry Fund mems in the gaming industry. Expecting them to become more challenged and thats keeping pressure on the stock today. Back to you. Mary, thank you very much. With that looming debt deadline dragging wall street lower. How do you play that uncertainty . Answers from katie, cio of Northern TrustWealth Management where she is responsible for 202 billion in assets under management. Good to see you. Nice to see you. You made changes to your tactical allocation just a short while ago. You overweighted some of the developed markets outside of the united states. Tell me about that. We did, sue. We see three key underpinnings to increasing our International Developed exposure. First and foremost, we see continued Central Bank Action being very, very positive. We have an accommodative bank of england, accommodative ecb and super accommodative bank of japan. Diversified International Development exposure thats a key benefit. Very attractive valuations particularly in europe, significantly below their longterm averages. The third thing are green chutes of economic recovery. In europe out of recession and starting to see impact in terms of Economic Growth and behavior in japan which will be positive for equity markets. What about the u. S. . Youve been saying for some time now that the economy is slowly improving. But yet, we have this situation in washington that seems to be weighing down stocks. Are you worried at all about the looming debate going on in washington . How are you handling that with your clients . We recognize that this is a very volatile time for stocks and bonds. The stock market has had a lot to guy guest over the last digest over the last week. Thinking about the taper and the market had come to peace with the taper as long as the fed was tapering for the right reason. If the fed tapered because it saw strong momentum in our economy that would be a good thing for stocks. The decision by bernanke not to taper calls into question the sustainability of recovery. Bernanke mentioned the dysfunction in washington as being potentially a negative for Economic Growth. So the markets digesting that as well. We see this period of volatility being continuing probably for the rest of the year. However, we think that the bottom line it comes down to earnings. And we do see the s p 500 earning about 111 on a 12month forward basis. We think theres room for the market to run here. Let me turn you to the credit markets. Blackstone, one of the big guys at blackstone thinks that we are in a credit bubble the likes of which he has never seen in his career. Are you seeing that kind of bubble formation in credit or not . We really dont see that in terms of credit spreads which look right around historical average. In terms of issuance, although issue anance has been high it ht been extraordinarily high. What we see Going Forward is a low return environment for fixed income investors. Go into equities, right . Finding value here in the u. S. Absolutely. The market is not undervalued the way it was in the fairly recent past. Weve come a long way and multiple expansion has done a lot of the heavy lifting for the market this year. But we certainly see the market fairly valued and see fundamentals super strong and earnings continuing to grow. All right. On that note, thank you, katie. Thank you. Nice to see you. Have a good weekend. You too. Ty, up to you. All right. Sue, home making guru Martha Stewart on a twitter rant about why apple wont fix her broken ipad. Apple is firing back. Dominic chu has been plumping the pillows all morning and following the feud. Tyler, martha wants doortodoor personalized repair service and even got some business suggestions for apple. All the details next. Keep it right here on power lunch. When does your work end . Does it end after youve expanded your business . After your companys gone public . And the capitals been invested . Or when your companys bought another . Is it over after youve given back . You never stop achieving. Thats why, at barclays, our ambition is to always realize yours. Lumber lick question daters getting stepped all over today, taking it down 9. 75 after the feds raided the companys headquarters looking for illegally Wood Flooring products. The company says it is cooperating with authorities. Despite the fall the stock is up 90 or thereabouts this year. Ty . Sue, Martha Stewart is unhappy with apple and dropped her ipad, cracked the screen and wants apple to fix it. Dominic chu has the details. This was a long twitter chain. Its become a kerfuffle. Its been interesting because Martha Stewart is a lady who often gets her way. When she doesnt really get her way she turns to twitter to rant about it. The blow by blow on what martha said on twitter. She goes, i just dropped by ipad on the ground and shattered two glass corners. What to do, does one call apple to come and pick it up or do i go and take it . She follows that up with i am still waiting for an apple rep to pick up my ipad. No action yet. And then she says, maybe ive had a Good Entrepreneurial idea. Apple now. Like same day delivery from amazon i think i am on to something. Same day fix it. Maybe advice for apple. She goes on, i cannot believe that apple Public Relations is mad at me for tweeting about my ipad and how to get it fixed. Steve jobs gave it to me and then you invite all kinds of haters. This came up from matthew, he tweets, i think apple pr is mad just because you keep spelling