Today. After whats been a rough week, we are looking for a positive action. Lets take a look at the 10year yield. Are we around 2. 6, somewhere in there . 2. 64. And lets head to our road map now as well. Where does it start . Where would you expect . Twitter filing for 1 billion initial Public Offering. The Ticker Symbol twtr. The filing reveals the company not yet profitable. So is it worth an investment. And without job support today, markets will have to watch washington to see whether theres any end in sight for the Government Shutdown now in its fourth day. And look out apple. Samsung predicting a a record profit for the Fourth Quarter as it releases its new galaxy smartwatch in the u. S. And a massive spread in usa today, which well get to later. Lets start with twitter, of course, which has unveiled its highly anticipated initial Public Offering plan. Julia boorstin is outside twitter headquarters in San Francisco. Ooh, the wind is blowing, your hair looks very nice, julia. Take it away. Reporter twitter headquarters happens to be in the middle of a wind tunnel. Twit are filed to raise 1 billion with the ticker twtr. We dont know the valuation yet because the cant hasnt revealed how many shares it will off or price range. Its 2012 revenue grew by to 317 million but twitter is still not profitable. It did make progress as its net loss decreased by 38 but in the first half of this year, a number of acquisitions drove up its net losses 41 higher. Now, behind twitters growth is mobile. Thats really the key thing to stress here. Three quarters of twitters users access the service from a mobile device and that accounts for over 65 of twitters ad revenue. Thats what the Company Continues to grow and its also in sharp contrast to facebooks zero mobile revenue when it filed for its ipo back in the beginning of 2012. But twitters 215 million users are tiny compared to facebook. They disclosed 845 million active users. One key stock investors watch, revenue per users. Now twitter says it needs to grow internationally. Its just a quarter of its revenue but three quarters of its user base. It also wants to partner more with Traditional Media Companies to bring on more content and also to improve ad targeting and formats. Who will cash in on twitter ipo . Its bigger shareholder is evan williams, board member peter fenton himself a 6. 7 stake, jock dorsey 4. 9 and current ceo dicks cou dick costolo. And dst global also has a stake. Thank you, well be following this all day long and anxiously awaiting before the news goes public. And sothebys is really under attack by investor dan loeb. No big surprise there. The poison pill will expire in 12 months unless reapproved by shareholders. It kicks in at 10 . That would not leave a lot of room for mr. Loeb, who if memory serves is at 9. 3 . But the damage has been done perhaps for a company thats going to be under siege for these next few weeks and months. A proxy contest could loom down the road for sothebys but right now its just dealing with mr. Loeb, a fourpage letter that attacked the company and its management and suggested many things would could happen but would prevent him and others from buying more. The activist comes, in the Company Strikes back. As you point out, the damage largely done to sothebys at this point. If you wanted to be really be effective, you might have put it in before his ability to go from 5. 4 to 9. 3. Only about a 3. Lets go back to twitter. Who prints out an entire s1 . This has been a fascinating one to look through. We dont have the jobs report today so we have to have something to look through this morning. A lot of interesting little pieces in here. Julia hit on several of them. A lot of people focusing on the balance sheet. First of all, how much money are they making, are they profitable and, frankly, what is going to be the importance of mobile and the companys ability to monetize mobile as they hope to avoid a repeat of facebooks ipo. Thats the whole thing, the comparisons with facebook. You see them right from the outset in the amount of revenue theyre generating per user. Its at least 1 below what facebook is doing. Even the billion dollar raise compared to facebooks 16 billion, i think they are trying to get as far away from facebook as you can possibly get at this point. Some of the key growth metrics that investors will focus on may not look as good as you might hope for a company that is entering the Public Market in terms of adding new users or even revenue growth, though we dont have the comparisons there, not profitable obviously, spending a great deal on r d and sales and marking. More to your point, scott, percentagewise than phase certainly was it and had multiples of the revenues that twitter does when it went public. Its r d spend for a company with only 2,000 revenue, theyre spending 44 of that. Im not sure spending on research and development, especially in early stages, is all that severe. The platform is a very powerful one. No doubt about that. Its still a business in its relevant infancy. The street saying revenues were below expectations and expenses were higher than his expectations as well. Youre going to hear a lot of commentary coming from the sell side on the street about what this all means. It seems the way facebook has performed over the last quarter has changed fundamentally the view, i think, on some of these investments. If twitter had tried to do this in the First Quarter after facebook listed, my god, what a difference a year makes. Yeah. Well, lets talk about the Government Shutdown. Now in day four, still no solution in sight. President obama is calling on House Speaker john boehner to let a clean funding bill come to the floor for a vote. Chief washington correspondent john harwood in the stations capital with the very latest. Good morning, john. Reporter good morning, scott. Im having a series of conversations with people trying to figure out what a potential area of compromise of agreement moving forward. Based on a conversation i had with a veteran member of congress yesterday. With one of them is potential escape hatches. Focus on budget issues, which is the core what government funding and the debt limit are related to. The second thing is theyre not going to have substantive negotiations and they couldnt possibly make a substantive agreement between now and october 17th when were going to hit the debt limit, but they could agree on a process for negotiating, target and timeline for negotiating. All those things are possible. How do you get around government funding and debt limit . On government funding, you could simply reopen the government and on debt limit republicans set a precedent earlier this year of just saying were not going to enforce the debt limit. Were not going to raise it but were not going to enforce it. Weve been operating and that for more than six months now to get to this point. So, kelly, that is a series of ways in which they could come to some sort of agreement given the line the president has drawn saying no negotiations until you do both the things that we have to do, reopen the government and raise the debt limit and republicans saying we need to get something. These are ways they might be able to get there, kelly. And, john, just a quick question. Yesterday evening in particular we started to hear more people talking about the prospect for looping all of this into some grand bargain, which while it sounds great, has been one of the most difficult things for washington to do. Are you hearing the same thing, to raise the debt limit, open the government, it will have to be part of some grand bargain . Well, grand bargain means Different Things to different people. It would be a grand bargain at this point just to reopen the government and raise the debt limit. Is it possible to have the originally conceived grand bargain, long, large entitlement cuts, revenue increases, all of the things you would need to really bring these two Major National parties together on a longterm Fiscal Foundation . No. But could you do a mini version of that . Paul ryan has been talking for months about a down payment deal. Even though republicans have resisted a formal negotiating process with the senate on their rival budgets, palm ryan and patty murray, the chair of the Senate Budget committee have been having some discussions not too serious but ryans talking about a down payment. Thats the kind of thing they could do before the end of the year. All right. We will hold our breath, john. Thank you very much, john harwood, this morning. Some of washingtons heavy hitters have been weighing in on the gridlock. Black rock Ceo Larry Fink expressed optimism washington lawmakers will get their act together before the debt ceiling deadline. It will be resolved very rapidly. But i think the most important thing that we must understand, the United States is a standard bearer of the world. People look to the United States as a country that lives by principles. And just the notion and just the conversation of a potential default is just unacceptable. On that note lets bring in john manley and john hogan with lazard capital markets. Good morning. Good morning. Are you as sanguin as larry is . I certainly hope larrys right. The middle ground seems to be opening up to, as you pointed out, a larger deal, wrapping both the debt ceiling and continuing resolution together. But talking about things that have to do about the budget and walking away from the debate over obama care. If theres going to be a middle ground, its going to have to be struck next week. Theyre going to have to talk about some things that are substantive to the budget and have nothing to do with obama care. The clock is running out on that. Well have to see some action next week. The dow is down, weve given up 15,000. Would you be a buyer here or a waiter, thinking you could buy lower if the gridlock goes on in d. C. And the dow keeps falling . I would be a buyer here. I think its important to distinguish between a lot of risk to the market and a little sk tmarket. Theres no question theres risk to the market. We have to feel some pain and that pain has to be transmuted to congress and then theyll fix it. But i think the process is working as it should work, believe it or not, and i think we come out of this probably with more agreements and the parties knowing exactly what they can get away with and what they cant. John, what do you mean working as it should . You said the process is working as it should. What do you mean by that . This is supposed to be an adversarial process. People are supposed to disagree. At least theyre not beating people up in the Senate Ante Chamber these days or having duels across the hudson. I think they will come to an agreement. Theyre very much aware of the fact they have to be reelected and dont want to conflict harm on their constituents. At the end of the day before it causes a lot of damage to the stock market, i think they reach an agreement. I dont know, john. The Founding Fathers may be turning in their graves looking at whats happening down in d. C. Well, a few of them shot each other. Mr. Hamilton was lying on the ground not too far from here because of disagreements. Weve become a little more civilized. Yes, there are disagreements and they really believe in these things and theyre fighting for what they believe in, both sides. But at the end of the day they know the majority, the constituents, the people who send them back to washington or dont, doesnnt want to be hurt this and theyll find a way through it. We ended the third quarries e quarter recently. What are your expectations . As we look at this the start of earnings season is going to be happening hopefully at the same time weve come to some resolve in washington, at least in the near term. If not, we wont focus on the fact that the s p 500 is probably going to see 3. 5 Earnings Growth on a year over year basis. Thats down from where we started the year. I think the market has successfully priced in that type of Earnings Growth. To the external earnings get any growth whatsoever, we can think if we can get this next hurdle behind us, i think the earnings season could act as a positive catalyst here. Art hogan and john manley this morning as we wait to see how markets open on day four of the shutdown. Can samsungs new watch overcome poor reviews. And also just ahead, potbelly going public. Well talk to the companys ipo and hearing from him directly. As we head to break, the dow is poised up 12 points. Samsung announcing it expects record Third Quarter earnings. That also their glassy gear smart watch, which has been panned by several tech reviewers, is going on sale today. It doesnt earn quite as much money as its chief competitor, that being apple. Samsung with a much longer share of the smartphone business. There is pressure building on samsung to return an evergrowing pile of cash and potentially to figure out a way to list here to access the u. S. Capital markets, at least give more exposure to u. S. Investors who might want to get involved in the name. Its fairly difficult to do so now. Speaking of piles of cash, theyre spending it because they took out a tenpage ad, ten full pages in usa today. Interestingly rates are higher on a friday and today is a friday. For color full page, 242,000. Were talking 2. 5 million for those ten pages. The bigger issue is what david said. Their smartphone growth is slowing. Talk about the chips, you can talk about the smartwatch. Who knows how thats going to sell. What about the tvs and laptops and whatever. Its really about mobile. Its about mobile as they compete with apple. And if thats slowing, thats a major problem. But the whole space is slowing. This has been consistently the case. Theres no winner here. Everyone is losing steam. They have to at least maintain their market share or guard profit margins. If they dont, whats the Investment Case in. Theyre having a decent time doing that, i think. The more production there is, the lower the margin costs. Whats the next iteration . It will be interesting to watch. Particularly Shareholder Activism in south korea, this is half the not half but an enormous part of the south korean economy. Wheres dan lobe wheb when y need him . Sony didnt go that well for him. In terms of pressuring other markets, its not the easiest thing to do. I think someone would have appreciated more pressure from blackberry to keep them from the collapse theyre seeing. Whats first and foremost on art cashins mind this morning . Hell be here at post 9 straight ahead as we await the opening bell. Take one more look at futures. The dow is losing steam. Can it still be a positive open . Up 6. 5 points. Well be right back. The ocean gets warmer. The peruvian anchovy harvest suffers. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. 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. Just got paid, its friday night, party hunter, feeling right welcome back. Were about five minutes away from the opening bell on this friday. Lets bring in art cashin, director of floor operations at ubs. Welcome as always. What are you going to be looking for in how the market trades . I think theyve been down as you pointed out earlier, 9 out of 11 sessions. Its time for a little rest and consolidate. Washington will remain the key. I think everyone will be looking at if they can firm up the boehner pledge of no default. The cynics here think were going to go through the weekend without resolution because the gossip is both sides are getting donations pouring through the window, as partisan this and partisan that. So why do the peoples business when moneys coming through the door . So we think it will last into next week. What about the boehner thing, art . If thats true, were arent we up more . I think people are hesitant. Yesterday when it came out, it was alleged to have come from only one source. I dont have to tell you, youre in the news business. Its usually the confirming second source that gets it on. The times did choose to go with it, big headline. The stock market bought it halfway and we came halfway back and said now lets wait for confirmation. Here we are 18 hours later anyway and we dont have any more flesh on the bone. So theyre going to wait and see. All right, art. Were going to wait and see for that opening bell here on a friday. Thanks for joining us. Wall street paying close attention to an election thats one month away. Well talk about the race for new york citys mayor. Well have a live interview with candidate joseph lhota. The opening bell on this nonemployment report friday just a few minutes away. vo you are a business pro. 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. [ 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 squawk on the street. The opening bell set to ring in about 40 seconds from now. Normally by now wed have the labor report. Wed have the secretary of labor. Were without that data. Important . Absolutely. Everybody is going to say its only one month. It doesnt matter. It will get interfered with for next month and it will be much more difficult at a time when the fed is thinking about paring back to figure out what the trend is. [ bell ringing ] thos