Question of the bigger debt ceiling question. It is the fiveyear anniversary of t. A. R. P. 10year hasnt moved much, hovering around 2. 62. Europe showing more momentum over there as well. Our road map begins with the president telling cnbc this time the market should be concerned about the dysfunction in washington, but is the shutdown the biggest weight on stocks right now . Trouble for tesla, at least yesterday and again today the shares are falling after the video surfaced of a model s that caught on fire. Big win for bp. A federal court halting payouts in the oil spill. And some harsh words for samsung. Quote, nobody will buy this watch and nobody should. I stopped. Immediately i was going to buy one. I wonder what his opinion is on this. Hard to tell. Neutral. Day through of the partial Government Shutdown after a stalemate. A meeting resulted in no breakthrough to resolve the impasse. The debt ceiling is just two weeks ago. I think this times different. I think they should be concerned. You have a situation in which a faction is willing potentially to default on u. S. Government obligations, then we are in trouble and if theyre willing to do it now, theyll be willing to do it later. More and more people are beginning to say theyre not going to rule out a technical default, maybe not on treasury securities but something that does get peoples attention. In buffetts terms today, were going to go right up to the point of extreme idiocy. I think that redefined the issue. He said were going to go over that deadline. Stop thinking that deadline means the end of the world or theres money to be found. It cant go on too much longer than that. That changed my view. I came away from John Harwoods excellent interview thinking holy cow, maybe the markets totally wrong. Then i listen to Warren Buffett and i say split the difference here. The market is not as complacent as i thought. Warren buffett himself said the deadline is not hard and fast. Interesting. Goldman out with a note last night saying the september data has been Strong Enough and politicians have a history of solving these things eventually. I think in their words we see little cause for concern. You know, you go from thinking doomsday and dont forget, goldmans ceo, Lloyd Blankfein portrayed it as being a bit of a catastrophe. You go from at that and circle back and listen to Warren Buffett and you say, look, its going to get solved, maybe not in time but all the bills and interest will be paid and move on. You know what, im going with buffett. Im going with buffett. That was a significant interview. Do you believe that that was a change in some way . Well, i just felt that was the first big time money guy to come out and say, yes, we can go over. Listen to buffett on squaw earlier this morning. Well go right up to extreme idiocy but not beyond it. If it goes one second beyond the debt limit, that will not do us in. If it goes a year beyond, that would be unbelievable. There you go. Not do us in is the new quote im using. It wont do us in as opposed to catastrophe. Yesterday on squawk, Erskine Bowles used very catastrophic terms. I think there are a lot of people who may be overexaggerating what happened here. If Warren Buffett says its not going to do us in, am i going to tell you Warren Buffett doesnt know what hes talking about . They may be talking about different things. Buffett may be talking about the equity markets. I got to understand context. One second bir, by the year andn he said a year. Clearly if a year goes by, were going to have some real issues. A second is a so is do us in. I think erskine bowls is coming from a different perspective. I think youre right. Every day you say this is lunacy were not down big. And then you listen to Warren Buffett and he says this is not the end of the world, it wont do us in. I dont want to be complacent. If were where we are october 17th and were up big the next day, maybe thats lunacy. But the idea that were going to have the october well, lets just say i dont like to use a particular word associated with october big decline, that was somewhat taken off the table. Interesting. Washington post today looks at Government Contractors that are laying off workers, contracts arent being awarded fast enough, they raise the possibility that homes get taken off the market rather than people leaving their homes on and letting them get stale. Kelly evans is here at post 9 talking about some of the impact on earnings and the economy. Were heading into Third Quarter earning season and its interesting to know that viafax said we have a regular high number of preannouncements going into the quarter. Why is that interesting . Frankly not because its the length of time theyve been keeping track back to 2006, its higher than it was at the end of 2008. If you wonder whats going on with Corporate America that it sees earnings as materially weaker, 82 of the companies that have come out for the Third Quarter say that theyre going to are doing so and theyre taking down their guidance. So that number the 82 is the highest that its been yet. 89. Only 70 of comes back in 2008 were similarly coming out with a negative guidance. It kind of goes back to what we were just saying, which is we got the jobless claims figures out this morning. We know firing isnt necessarily picking up in a material way right now, but to the extent the Companies Remain nervous, unclear about what the trajectory of earnings and apparently top line growth is going to be into next year, dont expect some sudden pick up or acceleration in hiring. And that is what you might expect to happen. If you got a Goldman Sachs out there saying they think the economy is picking up momentum and its going to be at 3, 3. 5 into next year, great. But another trader put it to me economists are all trying to ascertain what the heck is happening in the second half of 2013 partly because of the shutdown and the sequester and lack of data unfortunately were going to have in the next month. Largest Payroll Processor is paychex, marty came on last night and said we have 14 straight months of more people being added. Ive interviewed this man every quarter and this is the most bullish hes ever been. He just said, look, government, see you later. He said because of the federal government creating a pall over everything, he does not expect even this head of steam to continue. I mean, how do you raise numbers, raise numbers sequester . Raise numbers debt ceiling . You have to have a reason you raise numbers. Time magazines puts it all in perspective. They still have a cover . Those are the words, majority rule crossed out with a red pen. I was walking in this morning. One of the security guards said lock them up in a room like the vatican until theres a deal. Smoke coming out of the top of the capital. When Companies Come out and issue guidance saying theyre going to be above and below so its only of those companies that issue guidance . Guidance is below what was previously their guidance . Theyre guiding below where at this point theyre guiding below what the market expectations. The net versus above . 89 total have issued negative guidance. 89 companies. 89 companies. And i believe 19 have issued positive guidance, that works out to about 82 . Both the number of companies which have issued negative guidance and the percentage is at its highest yet in terms of what the series has been tracking. Higher than it was at any point in 2008, which is interesting. I know Corporate America doesnt like anymore to preannounce the up side. Part it haof it is game. The Second Quarter was the previous record high. They had 88 companies coming out with negative guidance. Of those companies who issued guidance, 86 of them beat. In other words, its about bringing expectations down. On the other hand, is there a shorthand. And who has a massive hiring plan right now . Oil and gas. There seems to be a bias toward equities. Look, Interest Rates dropped during this period. Right. Thats another thing im listening to Warren Buffett and thinking interest when due and maturities when due, there will be no default. So what buffett i think is saying is, look, Interest Rates, theyre not going to skyrocket. I mean, the skyrocket thing versus coned, i got dominion on tonight, letter d. 3 yield. I dont know. Looked better. The cds, how can these banks get away with these cds being where they are . You make nothing. I look at buffetts comments which you picked up on a day after the president comes out and says wall street should be worried. Buffett takes 12 hours and goes, eh, maybe not. Warren buffett is hes the market. By the way, paulson said that warren he called warren five years ago and warren said were going to be okay. I mean, warren is the modern day jpmorgan. Do you remember jpmorgan stopped the panic . If the modern day jpmorgan says were going to be okay, im not going to go and say did you listen to what we had to say on squawk yesterday . No. Meantime, a fire that destroyed a tesla vehicle began in the cars battery pack. A metallic object made a direct hit on one of the cars module. Fire was related to the front of the car. There were no injuries. Weve been watching the video all night. Deutsche comes out and says after 83 million miles, this is the first, it was bound to happen. David knows the hedge fund world. Arson . Hedge fund arson . I mean, look, because did you watch i was transfixed by the film. It didnt sound like it. It sounded like a couple of guys, although it could have been well orchestrated. Thats a tesla thats a car fire. Car fires do occur. Thats good for 6 down on the stock, which i think goes to the lack of conviction, perhaps, that some of the holders have. It does hurt the momentum. Also on a day where it was cut to a neutral. And deutsche is saying its going to be under pressure. I like to watch usa today i read usa today online. Its like, ooh, click on that, ooh, car fire, tesla down 10 . Why . Because teslas only up here because of the handling of the screen, of the way it works. So suddenly if theres a fire remember, this is like a cool cars pe. As long as the cool cars stay cool, the pe is high. Remember nhtsa came out in august and gave it the highest safety rating. And they said its worth mentioning that no production tesla has caught fire. I think that sometimes a viral video can trump what people have to say. And the video is a little jarring. Its a jarring video. Its not a pinto. Remember the pinto . Yeah, i remember the pinto. Remember there was a network that kind of juiced up something . That was not a pinto. That was a pinto. And i dont remember the network. You dont, huh . No. Whats the movie where Somebody Just barely touches the pinto and it explodes . I love that. I love that. It should have been dumb and dumber, which remains my favorite movie. Coming up, a live interview with the golden bear, Jack Nicklaus, golfs alltime major winning is ringing the opening bell this morning, has some thoughts, too, on politics and the economy. We have claims up. More from post 9 in a moment. Youre the boss of your life. ] in charge of long weekends and longer retirements. Ask your financial professional how lincoln financial can help you take charge of your future. How lincoln financial can help you take charge of your future. 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 card. Whered you get that sweater vest . Your ford dealer. Nobody will buy this watch and nobody should. Thats what New York Times tech columnist is saying about Samsungs Galaxy gear. In a scathing review, pogue says the gear is a humaninterface train wreck, all of it. The software design, user guide, english translations and design consistency. By the way, he says be careful not to damage your finger nails when you release the buckle. My favorite line, just throwing a bunch of trees into a pit doesnt make it a log cabin. Why cant you drive and do this, onehanded driving . He says you have to put it to your ear. Whats the matter . People do that all the time. This was one of those reviews that said, okay, compare the apple, what he had to say about the 5s, which he just basically said these are the mona lisa. This is not even a paint by number. Its very clear he ended this. This is it. Remember the old days when the New York Times used to be able to close a play with a bad, you know, this is a disaster. Vincent camby. This is it. The curtain closed on this. The curtain closed on this device. But the curtain hasnt closed on wearables and that is an emerging area of Product Development for many companies. They may have shut the door on people buying this for a while. And it is expected apple will come with a more refined product if and where they do. You know who will have a product that is killer produ, r under armour. Youre not going to read a pogue review about under armour. You have the jaw bone product. I like the jaw bone product. You do . Yeah. Thankfully they dont get those reviews for their phones. No, they dont but dont you get that shift in favor of apple, kind of against samsung by the dissente . Its changed. Its changed. I think that samsung has suddenly become what we used to think of samsung and apple has become what we used to think of apple. We do have breaking news. A citigroup union the has been fined 30,000 by massachusetts. Research analyst kevin change provided institutional clients with indications of a cut of an iphone production by apple. Three clients sold apple stock after receiving that information before it was made public. Not the first time weve seen things like this, jim. Where did apple go after that . Was that like the 400 to 700 or the 700 to 400. Im glad to hear the Massachusetts Attorney general was in charge of the markets in the country. The State Government steps into the tvacuum. This is the tenth amendment taking over. You dont do something about it, i will. Take that. If Eliot Spitzer had won the controller, can you imagine how he would have filled in the vacuum at the s. E. C. . Im very thankful he didnt win. What do you mean . Did you just make a political statement . Yes, i did. Are you still able to go to restaurants . I dont know. Hes like the marathon man. Remember that scene . One more look at futures. Some moderate weakness here. The president talks more about the shutdown. A lot ahead when squawk on the street comes back. In todays markets, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. 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. [ bell ringing ] theres jim with the mad money team ringing the closing bell yesterday. Almost fell off the table, Regina Gillman grabbed it. We got about five minutes before the opening bell. Lets get to the mad dash. We have not talked about british petroleum. A huge victory. A victory by the fifth circuit, reigning in a Federal District judge, you and i should have filed a claim, i once flew over louisiana, my eyes hurt. This is one of these incredible renegade, runaway justice situations who is being reigned in. Louis freeh will be the monitor on a lot of these claims. The court ruled saying these claims cannot be part of the fund. In other words, ones where they cant actually prove damage of some kind. Now, this stock was going higher until we started seeing the claims. And the possibility of a 30 billion, 20 billion number got bandied around. Now the buyback will kick in. This stock should be at 45 to get to where chevron is. Theyve already paid 42 billion or so in cleanup efforts. I dont hate them. Say the company paid out 42 billion and theyre even still around is significant. And they havent cut back on their production. They are the number one Foreign Investors in america. And Jack Nicklaus getting ready to ring the opening bell ready to ring the opening bell [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. Youre watching cnbc squawk on the street live from the Financial Capital of the world. The opening bell set to ring in about 30 seconds. Obviously a lot of attention continues to be paid to washington but the nasdaq is still on track for five straight up weeks, jim. I just learned today the s p currently has the biggest point gain for a year ever still. Wow. The dow needs about 300 points to beat its record for 99 in points. Thats an amazing figure. We have positive comments on celgene, positive on b