Is about to bite us in the assets. Sues out, im in, tyler at the nyse. All right. Great to be with you. Futures, of course, this morning a bit of a bleak story, but its been a pretty good day frankly. Certainly for the s p 500, certainly for the nasdaq compass sit. Is wall street worried washington will not get itself together before the next set of deadlines. January 15th to fund the government. February 7th for the debt ceiling. What is the worry here . Theres not much if you look at the spx at 1729. I think thats an alltime high interday and the composite look at that, 3856 and that is, what, 140 some points away from 4,000. 90 days away from the Government Shutdown, maybe another one, 113 for the debt ceiling. The alltime high for the s p as we said, was 1729 and look, we dont have it on there, but well get to it. 1729. The industrials down just 33 points. But a large reason for that is ibms troubles. Its a highpriced stock and the dow, of course, as bob pointed out, price weighted index. Unh down and goldman having trouble. 3 m, boeing, American Express those hitting alltime american highs today. The dollar index, gold, take a look at those things and oil just to run you through them, the dollar index a little lower, but gold up 40 at 3 right now and theres volatility, way, way down, calming down big time. Lets bring in bob pisani and kenny and our guest from barcelona, ladies and gentlemen. Come on forward here. Folks from barcelona. A school group. Big fans of lie owe flel messy and of equities here. Welcome from barcelona. Glad to have you here. Bob, bring us color for today. Hang out. Dont go away. Dont go anywhere. This is where it gets good. Its a rare day when you see the s p 500 up a half a percent and the dow is down a quarter percent. This highlights one of the issue, the dow a price weighted index. When you have ibm down 11 or 12 points, you have 70 points in the dow by itself weighing on it, unh also down about 3 points. And newest member Goldman Sachs under pressure not adding to or sort of adding to negativity. The important thing is, its remarkable the market continues to move up. Weve had a lot of concerns about earnings warnings. We had ebay specifically coming out last night saying were seeing some concerns on the newspaper headlines, we saw a move down in the Third Quarter in their order they saw, so some of the concerns about the government slowdown are starting to show up in the earnings reports and the issue is, is this going to get to a Tipping Point where earnings are going to come down, we know theyre coming down in the Fourth Quarter, more than some anticipate. About 9 Earnings Growth for the Fourth Quarter. I think the street is fine if it goes to four or five. Whats been lost in this whole debate over the last couple weeks, the earnings reports weve gotten. Weve seen these companies that have missed on the top line, but no ones been paying attention because everyone was so caught up in what was going on in d. C. Now that thats over temporarily, people will start to refocus. I came in, thought what am i going to talk about. The politicians, the gifts that keep on going, theyre gone. What am i going to talk about . What should we focus on now that has at least temporarily receded or can we not be have the luxury of not focusing on washington . People will try to start to focus back on the fundamentals and micro data, the earnings reports but the fed is not going anywhere. They talked about october do that again. The fed is not going anywh e anywhere. They talked about october, not happening. Larry fink came out and said its at least until 2014, potentially the Second Quarter of 2014, and so therefore, you know, its going to be a party in the equities, party in the the dollar will get weaker, gold stronger, equities, where will people go. People are dying to buy the market but lower. I call around and say 2 to 5 they want to see it lower. Focus on this. Earnings guidance gets cautious in the next couple weeks. Market dips a little bit lower. Down 2, 3, 4 . And you buy. Stocks going to be higher at the end of the year or lower . Higher. Higher. Higher. Higher. Higher. They say higher. The bulls from barcelona. The bulls from barcelona say were going higher. Kenny, great to see you. Bob, you. And thank you our guests from barcelona. Welcome. Melissa . Tyler, three stocks waving red flags and investors based on quarterly reports released today and yesterday. Ibm a twoyear low after reporting a 4 drop amid a decline in hardware and emerging markets. Hardware hit in china which accounts for about 4 of big blues business. Ibm saying it will be dealing with the impact of chinas slowing growth over the next couple quarters. Ebay gave a disappointing holiday forecast blaming a weaker u. S. Economic environment, the cfo telling investors that ecommerce has softened and specialty mattress select comfort lowered guidance blaming the u. S. Economy. Shares of temper and Mattress Firm also sagging if you will. In sympathy. Speaking of waving red flags, china getting aggressive. Robert frank will have shocking numbers regarding global luxury goods and chinese buyers but first what does the u. S. s biggest foreign creditor think of the debt ceiling deal. Cnbcs chief International CorrespondentMichele Caruso cabrera has chinas reaction. The chinese are not impressed. Surprise surprise. Theres new commentary published by the government control news agency. It says one of many quotes. Politicians in washington have done nothing substantial but postponing once again and listen to the wording here, the final bankruptcy of Global Confidence in the u. S. Financial system. Additionally a Chinese Credit Rating Agency downgraded the u. S. From a my nous to a and the latest raise of the debt ceiling shows the incapability of improving its solvency improving the basic economic and fiscal elements. The chinese hold nearly 1. 3 trillion of u. S. Debt only ahead of japan. If they were to sell our debt in large amounts unlikely but not impossible it would cause a sharp rise in our Interest Rates. Another fallout from the debt impasse, president obama canceled remember a key trip to asia to discuss trade and engage directly with the chinese. A very regrettable situation says ian bremer of the uray shah group. When obama doesnt show up at the most important asian summit and the chinese are giving speeches and americas allies like the indonesian and vietnamese are sitting there with domestic pressures thinking wow, maybe we shouldnt be following as much of the american model that has a longterm impact. We may be too big to fail. Not too big to care. The days of our not caring about what the chinese say have to be put behind us. Of course what he means there about being too big to fail, if the chinese were theoretically to sell off our debt and cause a rise in Interest Rates it would hurt them too. The bottom line, no one really pays attention to dagong including the chinese. Right. Thank you. China tries to take political advantage of the mess in washington alarm bells are ringing about its economy and the impact on the luxury market. Wealth editor robert frank is here with very staggering stats. Robert . You know, we know that china is really important to luxury good sales but we didnt know just how important until now. A new report from at carney shows that just 2 of chinas population consumes one third of the luxury goods. Thats a lot of people, around 27 million people, but means that the 270 billion a year luxury industry is highly concentrated on a small segment of one country. Two reasons to worry about this 2 number. First, china is not creating wealthy consumers like it used to. The economy is slowing. Theyve produced 90,000 million airs over the past year, that compares with 1. 7 millionaires in the u. S. France created four times the number of millionaires as china as well as germany. The risk on the crackdown of corruption in china. Many gifts are used for politicians but the government is cracking down on officials with luxury lifestyles. One Government Official nicknamed brother watch because he was charged with bribery after web photos surfaced of him wearing a variety of luxury time pieces. A report saying today that the culture of gift giving which fueled so many much that purchases is probably not coming back soon. These risks are already showing up at some of the share price. Share prices of louie vuitton, down, due to slow growth in asia and seeing some pressure on tiffany, Michael Koors and other companies. Comparison should get easier as the guys are already facing this hit, next year will be easier in terms of the sales. Thats the big hope. Last year started the slowdown. So robert, thanks for that. To Bertha Coombs for market flash. Hey. Were watching gm which is near the highs of the session. Global sales rose 4. 6 in the first nine months of the year to more than 7. 25 million cars and trucks. Strong Third Quarter demand in the u. S. And china were helpful in offsetting declines in europe and south america according to the company. That included a 5. 5 increase in Third Quarter puts. Gm ahead of its german rival volkswagen. Sales in the first nine months were up about 4. 8 . We havent heard from toyota. Tyler . Thank you very much, bertha. Washington has a deal, only lasts about 90 days. About to see a repeat of the fight we just had . Well, anybodys guess here. American ceoss are getting a little bit grumpy about the d. C. Side show. Theyre weighing in, next, and were going to ask what washington has to do to win back Americans Trust and affection. And you think youve got problems. Check out this guy. Well you cant really see him but you can see his friend there. A great white. Is this a metaphor for the american investor. Something lurking below. Another look at the recordsetting s p index. More power in two. Another reason to thing twice before hitting the sun and the surf. Take a look at this surf board off the coast of Manhattan Beach a few miles south of downtown los angeles. That is a great white shark. Its a baby but already about 8 feet long. Sometimes when theres a baby theres a mom or dad shark not too far off as well. Watch out. Lets send it to Bertha Coombs for a market flash. Staying firmly on land at this point. Sab miller having a great day. Posted better than expected earnings driven by strength of the sales in africa and south america. Things are Getting Better in north america. It is giving a lot of boost to the rest of the brewers today. One of the busiest sectors of the day. Melissa. Bertha coombs, thanks. Our congressional leaders kicking the can down the road when it comes to the budget battle in america starting to sound off. Fed up . I am. We need to boot all of the people out and start over in washington. Theyre not alone. Ceos starting to sound off as well. Diana olick is live in washington. We spoke to willy walker, ceo based walker and dunlap, a finance company, theyve done 6 billion in loans this year but walker says last nights deal shows just how out of touch the government is with corporate america. At some point the government has got to figure out that all of this crisis to crisis is making it so that ceos of companies are not investing. Theyre hoarding cash. There is no longterm policy discussion going on whatsoever. So the issues that really need to be, tax reform, pick one, no real debate going on right now because were caught up in the funding to funding debate. Walker and dunlap contributed over 63,000 in the 2012 election cycle, the biggest chunk to the Republican National committee, if gave to candidate mitt romney, but also to a home state democrat congressman john delaney. So far walker doesnt see much for his money. Health care, tax reform, fannie, freddie reform, issues that need real focus and legislation and not getting it. All real estate comes down to confidence, both investor and consumer and it is sorely lacking right now. Tyler . All right. Diana olick reporting from washington for us. Also from washington, tucked inside that stop gap bill passed by Congress Last night, billions in spending including an almost 3 billion earmark for senator Mitch Mcconnells home state of kentucky. That earmark so incensed fellow senator john mccain he blasted the project as disgusting and ridiculous. Politicos ben white compiled a list of some of the items that crept their way in to that bill. Ben, welcome back. Good to have you with us. What did you find . Yeah, you mentioned the olmstead lock and dam project. Theres a lot of stuff in this bill. That in particular is the biggest one. Was at 700 million, somehow in this bill close to 3 billion for this project and the funny thing about it, nobody wants to claim ownership of how this got in there. The white house says it was congress who wanted it. Mcconnells office says it was the white house who put it in there omar alexander, also benefits tennessee, he says hes responsible for it but a huge boost in that program. Other stuff in there, that doesnt have numbers attached to it, but which got funded, joint polar satellite system is one, the geostationary operational environment satellite system, one for raytheon, one for lockheed martin. One thing i found that was hrg interesting is the tethered air row stat radar system, basically a border drone to monitor narco trafficking that was supposed to be unfunded, the Obama Administration said they didnt want those drones on the border. That came back. So its funny these things always at the last minute you tend to get a whole bunch of stuff in there that helps out certain members of congress and when they get asked about did they stick it in there, no, that wasnt me. That is what we did. We did call senator mcconnells office and they said that the senator did not ask for the money, specifically on that particular project we were talking about earlier and to contact senator Dianne Feinstein of california. Lamar alexander of tennessee. Senator alexander did send in a statement to us, quote, according to the army corps of engineer, 160 million taxpayer dollars will be wasted because of canceled contracts if this language is not included. Senator feinstein and i as chairman and Ranking Member of the energy and water appropriations subcommittee requested this provision. It has already been approved this year by the house and senate, so says senator Lamar Alexander in a statement to us. Whats not in there is any explanation of how we went from 700 million to close to 3 billion. Its one thing to say we got to keep this thing going so these existing contracts dont get canceled but and ive asked the white house this question too, why did the number jump three fold. There are a lot of folks who support the idea of this project thae its going to help Mississippi River traffic, right above the confluence of the ohio and Mississippi River but i think americans get frustrated when they see were raising the debt ceiling and do these things and then tripling spending on a program that nobody figures out exactly why it is were spending so much on it. We could probably get more answers on that. Well count on you to get them for us. Businesses did lose a lot of revenue during the shutdown, so what is it going to take for congress to win back the Business Leaders who have been really aggrieved through all of this . Susan is ceo of ridgewell, the exclusive cater for the house of representatives and it lost more than 200,000 in revenue since the shutdown. Susan was with us this week and welcome back. I assume youre relieved the Government Shutdown is over and some of the events that you might have had on your schedule during those 16, 17 days are going to be rescheduled. But my question, susan, that were asking during the day is, is there anything that washington, specifically congress, could do that would win back your admiration, affection, respect for them . Believe me, i am relieved. This was like a bad reality tv show, so much drama. Im glad i dont have to watch it anymore. Its really difficult for just kicking i hate to keep saying this, everybody is, kicking the can down the road and come january, you know, our clients are going to be saying, hey, i dont want to spend anything in the last quarter because who knows if this is going to happen again in january. So i think they need to get together, they need to do a bipartisan approach to this and get to the real issues and give the confidence back in the American People and Small Business owners like myself. What you would like to see if i can paraphrase and sort of put words in your mouth which im paid to do, of course. Of course. You would like some certai y certainty, the congress, republicans and democrats to come together and make a plan, even if its not the plan you would choose, having some plan for lets say the next five to ten years, is really what youre after . No question. A plan is definitely what we need. Its getting harder and harder for us to make a profit. All of our cost of goods are going up, Health Care Going up. Theres so much you can charge for a beef and chicken dinner. It gets out of control. Its just crazy the way our costs have gone up and the unsettlement of the government that we need to focus in on. All right. Susan thank you very much and continued good luck to you. Hope the business bounces back for you. Thanks, tyler, thanks for having me. Just in, one more note from washington, the senate clock experts restarting the big senate clock just a short time ago. It had not been maintenanced and wound since the government was shutdown more than two weeks ago. You cant just go in there and wind one