Winners and losers. Sue is at the nyse as usual. Good to see you. Stoxx coming off of their lows on news of a meeting of key congressional leaders on both sides. Right now we are marginally positive by 4. 5 points on the Dow Jones Industrial average. The nasdaq continues to decline. It was the biggest percentage loser yesterday and its on pace for that same kind of record today. The s p is down. 2 of a percent. Amman javers has the latest on this marketmoving event. This is a possibly hopeful situation here on capitol hill. That has not seen a lot of hopeful situations in recent days. The news is that we had a bipartisan meeting of the top four leaders of the house of representatives just this morning, so thats nancy pelosi, steny hoyer on the democratic side with Speaker John Boehner and eric cantor, the republican leader. All four of them in a room at the same time talking to each other. What we dont know here is what was said in that room. Were trying to find out more information about whether theres some active negotiations going on or just Touching Base this morning. Guys, i also want to tell you a little bit of ground shifting here maybe politically as well. The coke brothers a Company Controlled by them, the billionaire conservative campaign donors, sent a letter to capitol hill in which they emphasized that they dont necessarily support using obama care to defund the government or defunding the government to defund obama care. They say they support shutting down obama care on its merits but not necessarily as a tactic here in terms of shutting down the government. Little wiggle room on the conservative side and this possibly encouraging meeting pfl well have to find out more detail about what was said. Tyler and sioue. Thank you very much, eamon reporting from the capitol with seven days, ten hours, 57 minutes until american will allegedly hit its debt limit. Can the white house and Congress Come together and get a deal done before them . A number of top leaders and ceos on cnbc saying to get it done now. You were elected to lead the country on all issues. All of the people in the country, not just your constituents. We need to basically listen to the will of the people, we need to stop fighting yesterdays elections, and we need to move on to solving tomorrows problems. Its an anathema to anybody in business where you make the stakes the end of the game. Where you put the whole institution at risk, its just absurd and frankly, shame on congress. Thank god i never got in politics. That is that is the worst business that you could possibly get involved in. All right. How can the democrats and republicans get a deal done . Joining us is Harvard BusinessSchool Professor and the renowned negotiator depak mallhowtra author of two books on dispute resolution. One is i moved your cheese and the other is negotiations genius. With us chris and republican strategist joe watkins. Lets do this exercise, depak, this way. Im going to ask chris and joe to tell you what they need in a deal and what it they might be willing to yield in a deal, and then you see how you can bridge the gap. Lets flip a coin. One or two is behind my back, chris, you call it. Is it a one or two. I say one. Its a two. Who would like to go first. Joe you have the choice. I would be delighted to go first. Go ahead. What do you need . A deal and be willing to yield . What i need in a deal is discussion. I need the chance to talk. I need to talk with democrats. I need to talk with the president of the united states. I need for the president to talk with me and with my colleagues to get this done. This is not rocket science. This is not a deal that cant get done. The president could very easily call together, call for a Super Committee made up of democrats and republicans, to help solve this issue and say that committee will deal with all the issues that were talking about, the republicans care about, whether entitlements, which comes under the broad framework of spending, or revenue or taxes in other words, or annual deficit. All those issue lumped in for the Super Committee to dial with. What would you be willing to yield . Lets talk. I would be willing to agree to a shortterm deal to open the government and likewise to raise the debt ceiling. All right. So that gives everybody wiggle room. Conversation and willingness to open the government and raise the debt ceiling. That sounds like some movement there. Chris, your turn, what do you feed in a deal and what do you say youre willing to give . What i think you need in a deal is the republicans to agree to the amount that they initially agreed to in terms of keeping the government open and funded which is actually the republican amount. Its the amount that the democrats actually compromised on. Democrats wanted over a trillion. Democrats republicans wanted 980. That was the greed aagreed amount until they added obama care as a stipulation to continuing to run the government. I think you need to take obama care off the table, on every notion, whether defunding, whether its delaying, that is not thats a nonstarter. I think at this point, considering how much time there is in terms of, you know, a big deal, listen, i think the president is open to some serious negotiations about dealing with the longterm debt and fiscal sheet. What you need is for the republicans to take the defunding or dismantling of obama care off the table as it regards the Government Shutdown and the debt limit. What would you be willing to yield . I think we would be willing to yield what we already yield, what we already yielded the amount to keep the government running. Now in terms of the debt ceiling negotiation, listen, i think the president and democrats are open to talking about it, but how do you talk about it when you have seven days to go . The reality here is, youve got to extend the game. If youre playing game teary and facing a suboptimal outcome the only outcome that makes sense is extend the game. You have three months maybe do an extension and negotiate during that interim. Depak, its over to you. Youve heard both sides say what they want, what they might be willing to yield, how would you bridge these gaps . Well, tyler, i think what weve heard from chris and joe is that the outlines of the deal is actually pretty clear. The problem right now isnt that we cant get a deal done. I agree with joe on that. I think this is not rocket science. Were at a point where a deal can and should get done. The problem the tactics used recently, although were seeing some change in that. Fundamentally whats going to get this deal done is president obama is going to have to give Speaker Boehner some facesaving way of backing down from the initial threats that were made against obama care and other things where the democrats and the president feel theres hostage taking going on. But the president does need to give some facesaving way for Speaker Boehner to back down. In the current conversations going on and what we heard from joe that facesaving tactic or concession may simply be some version of a Super Committee or the framework for talks or a negotiation about negotiations, et cetera. Tackically the problem is were having this conversation through the media. I think and what were doing right now adds to that in a sense. When the president offers a concession through the media, when thats the channel, Speaker Boehner has no choice but to reject that offering. It looks like Speaker Boehner is saying yes to something president obama said and is going to lose ledverage that wa. They need to stop talking through the media and get inside a room for one day, two days, three days and hash it out so when they emerge with an idea its an idea that president obama and Speaker Boehner jointly came up with. I think that the ideas that were talking about now are good ones but its not just a congressional leadership that needs to be in a room together. I think its going to have to be president obama and Speaker Boehner and president obama giving Speaker Boehner something he can take outside the room that allows Speaker Boehner to declare some level of victory when he offers a clean cr or when he offers to extend the debt ceiling for a certain amount of time. Im loving this conversation. We dont have more time, guys, to go into it. Depak, let me ask one other question to you. When i heard joe mention and ive seen in the papers the idea of a Super Committee, well raise the debt ceiling a little bit and reopen the government set up a Super Committee, we did that before and we didnt really get much progress as a result of that. It failed, the Super Committee. Why would you go back, depak, to that tactic in this context . Well, i think its very easy to criticize the Super Committee approach because it has failed in the past but the question always is what is the alternative . If somebody has a better idea i think everybody is all for it. Right now the only thing we can count on is to keep talking behind closed doors. So the two things that make it a little bit more hopeful are the following. One, is they can commit to some sort of a de tant so theyre having the conversation behind closed doors and the second piece now that republicans have tried this strategy of trying to defund obama care, trying to take it to the last minute, and have seen that this time president obama did not cave and did not make concessions on the basis of it, all of a sudden it makes it more likely people will negotiate on both sides in good faith because they now are even more clear that there are no other alternatives, these games and shen she nan begans that put the American People at risk are not going to work and not going to work politically hopefully as we go forward. I hope we can continue this, have the three of you back as we draw closer to the deadline because it really seems absolutely. Seems like a really fun and productive conversation. What i just heard you say, depak, is if the best you can do is kind of kick the ball down the road and set up a Super Committee, if the best you can do is buy time, buy time. I mean that seems to be what you said. Thats right. Thank you very much for coming on today. We appreciate your thoughts. Sure. Thank you. Sue . Good conversation, ty. Lets go to chicago now. Breaking news, the tenyear up for auction, how did they do this time around, rick . The great on the de mand at 1 00 eastern is a c, highly average. Talking about nineyear tenmonth securities auctioned on august 7th, the last reopening. The yield at auction, 2. 657. Which is right in between but leaning more towards the offer side. The one issue market which was 266. 5, offered at 265. 5. 258, 2. 58 bid to cover below 2. 75 and the directs and indirects were close to tenauction average. Tomorrow the 30 year e and were done for the supply for the week. Sue, all yours. Thanks, rick. Ill take it. What happened to stocks the last time there was almost a default . And more importantly, perhaps, what can you the investor learn from that. Dominic chu has answers. Some investors may have the summer of 2011 fresh in their memories. A lot of moving part, debt ceiling debate, eventual downgrade of americas credit rating, a spread of the european debt crisis, fed meeting, all kinds of things. On monday, august 8, 2011, the dow fell by 635 points or 5. 5 . That was the day after the debt got downgraded, a friday event to monday. Nearly 1800 points were shed from the dow, about 14 of its value in the two weeks leading up to that downgrade monday. Now heres where investors were creating the most action. In terms of the stock market, defensive stocks performed better on a relative basis. Theyre the ones that arent as depend on then the health of the economy. The best performing sectors in the s p 500 on a yeartodate basis utilities and consumer staples. Those were the only ones with gains on the year at that time. Really in the market. Now the single worst performing sector through midaugust 2011 the financials, down 24 . Worthy of note, one hot investment worth noting is gold trade. It was up 30 year to date through two weeks after the debt downgrade but for perspective, sioux, gold was 1850 back then. Today its only around 1300. Back over to you. Yeah. Thats very important point. Thank you very much. How do you play the debt limit deadline . Ken is here, cnbc contributors, jeff kill berg, jim are in chicago. Were talking putting in protection down here on the floor of the new york stock exchange. So put it in perspective for me, kenny, how do you protect yourself some. Depends on who you are. Longterm person the last thing you need to do is panic about it. We saw what happeneds last time. Yes, we sold off but rallied strongly. Typically what happens is when the retail public starts to panic they panic at the wrong time. So, i would sit tight, as long as you have the right portfolio on any weakness you have to add to it. Worried about it, look at the portfolio, take money out of some of the better performing names and keep it over here on the side waiting for the pullback. If you think its going to happen. Jeff killberg, what would you do in the instance that we run right up to that default deadline . Well, sue, we specialize in trading futures. When i was in engle cliffs we talked about shorting the market. That etf allows you to short the s p 500. We like being long. As you know theres no way to buy that spot volatilely index price. Jimmy explains why. Our model allows us to capture 30 spike in volatility allows us to deflect any downside. What i said before we were talking the vxx is the instrument i sometimes use. People complain about it because it has a decay element. Talking about a shortterm time period, matter of weeks here, its not a bad way to pro ekts it yourself. I also hold on. I dont think were going to default but take it right to the october 31st deadline, not the october 17th deadline. I should shock put him into the green room. No. Hes right about the default. This is the sequel, sue. It is what it is. It is what it is. It has decay and yes, its a sucker bet for the long term. Shortterm play its not awful. Sure. The strategies for traders kenny is talking about the investor. Thats the difference in this discussion. Listen thats great strategy if youre the trader actively. If youre the retail person you know, that stuff can get confusing as you are well aware, right. Sure. Trying to create not panic amongst the Retail Investor and the bigger view. Kenny, how about this, the market is starting to price in the potential for a default. And the stock market could fall precipitously. Im not ready to buy a break in the s p if im a longterm investor. If im a longterm investor i dont mind paying 30 ticks higher. Look at it as a compus, we saw 2020 right now nearly so we saw equities move up much higher. Use it as a compass and dont trade it like he does. Okay. You guys have got to get your own cable show. Well just go. I know you will. So will he. There you go. Thanks guys, very much. New dow member nike and former dow member hewlettpackard meeting with analysts today. Hp speaking to the upside by 5. 3 . Jane wells at nike headquarters and john fortt in san jose. You go first, john. No new bad news is good news when it comes to hp. Well tell you what meg whitman had it to say after the break. Jane . John, 220 soccer cheeks as nike goes after brazil in the world cup. Ceo mark parker calls this a growth company. He highlights one area of underperformance, lululemon youve been warned. Back after power lunch swooshes through a break. The Wright Brothers became the first in flight. [ goodall ] i think the most amazing thing is how like us these chimpanzees are. [ laughing ] [ woman ] can you hear me . And you hear your voice . Oh, its exciting [ man ] touchdown confirmed. Were safe on mars. [ cheers and applause ] hi. [ baby fussing ] like two ships passing in the night nike put into the dow and hewlettpackard kicked out meeting with wall street analysts today. Jane wells is in oregon at nikes today. But we begin with john forth in san jose at hewlettpackards Analyst Meeting. Tyler, hp stocks spiked during the Analyst Meeting today when slides from whitman and her Team Appeared to indicate 2013, plus or minus 10 cents versus the 363, the street was expecting. That seems like particularly good news given whitmans cautious tone lately. And the deterioration in the pc and enterprise business. Whitman said the business is stabilizing on multiple fronts and now has the right executive team in place to grow hp. Hp Services Software chiefs gave presentations where they emphasized gross margin stability and the idea that customers are behind hp. Putting an extra positive spin on things, whitman said to expect growth to accelerate in fiscal 2015 and for hp to be an Industry Leader two years from now. Shes certainly set the bar for herself now. Sue . Indeed she has, john. Thank you. To jane wells now whos in beaverton, oregon, at nikes investor day. Hey, jane. Hey, sue. Nike is now projecting 36 billion in revenues by fiscal year 17, that is 10 billion more than right now and see ven though it wants to reset in china and capture brazil, north america is the Fastest Growing market. The Ceo Mark Parker points out one area of underperformance, women. Weve been growing our business, our womens business, actually faster than we have our mens business. At the end of the fiscal year 13 our womens business was over 4 billion in total. Thats wholesale. Well reach nearly 7 billion by fiscal year 17. So big growth opportunity. Now, that is still going to be less than 25 of total revenues. Also the Company Plans to grow overall apparel revenues from about 7. 5 billion to 10 billion by fiscal year 2017. Talk about this new fly knit technology supposed to cut down on materials and labor, its 160 and some analysts question whether peop