Closed with their highs of the day. Cnbcs bob pisani has all the details from wall street. And well be hearing live from several members of the senate and the house throughout this pivotal hour. Where do they stand on the budget negotiations that are about to begin as we get ready for the next deadline . The kudlow report begins right now. Good evening, everyone. Im larry kudlow. This is the kudlow report. We are live here at 7 00 p. M. Eastern and 4 00 p. M. Pacific. Breaking news tonight. The senate expected to vote this evening on a compromise deal to temporarily reopen the government and raise the debt limit. That sets the stage for broader budget negotiations later on. House leader have vowed not to block the bill. The chamber expected to vote later this evening. Were going to talk with members from both parties. Both houses of congress throughout the evening. But first lets get the very latest details from ace political reporter and cnbc contributor robert costa who joins us live from washington tonight. Robert, has the senate started voting yet . Not yet, larry, but they will start soon. And after that, boom . Right to the house. This impasse ends tonight. This thing will be over this evening. That possible finally . It is very much possible, because House Republicans decided this afternoon to not block it, theyre going to allow democrats to vote with republicans to pass it. So let me get this right. The gop wont block it. They decided to finally stop digging the ditch deeper and deeper and would not like to climb out of it. Can i assume that . Its not an assumption, larry, its the fact. Its what is happening and my reporting backs it up. Today ted cruz decided he wont block the vote in the senate. So did rand paul, marco rubio. And when Speaker Boehner met with his troops tonight, he said we fought a good fight been its time to move on. A lot of speculation about boehners road. How do you see boehners position right now . Boehner is safe, and i can back it up by talking to over 50 members of the house conference this afternoon right before i got here to the studio. They say boehner actually got a standing ovation today when he went before his conference because they believe though the strategy was ultimately flawed and didnt work, he fought the fight with them and he didnt break with the right. What happens now . Let me ask you this. Its a question im going to ask a lot of our guests this evening from the house in the senate. Will the republicans continue to go after obama care for a variety of reasons well discuss . Yes. But having not done the defunding, having a not won on the delay, where do they go, robert costa . What is the next tactic . The real hope is that this deal tonight reopens the government until january and it extends the debt ceiling until early february. They hope maybe not going to have such a dramatic standoff come january. But to reopen the government in january, they want some kind of concession. Thats why uthough they laid down their arms tonight, theyll pick them up again in december. We are in fact, or we may, i should say, go back and do this whole thing all over again in about 90 days . I mean, this is really a stopgap, shortterm solution. Yes and no. Yes, are we going to have a standoff in january, i predict we will. But a lot of House Republicans are very wary of the poll numbers. They see 74 of americans seemed to have turned against them. They dont want to feel that political pain there will be a different strategy, a different approach come december. We dont know what that will be yet do, we . Not yet. One big factor as part of the deal is a future budget conference later this year led by paul ryan and patty murray. They want to see what comes out of that before they start making plans for a december fight. What if nothing comes out of that . Right. Weve been here before. This is like two years ago. This is like 2011. This is like 2012. Am i to assume this is a little unfair, but youre a great reporter. Am i to assume that in three months, three months, patty murray and paul ryan are going to knock out a deal on entitlements, on the sequestration, and on tax reform. Am i to assume that in the next 90 days . No, you should not assume that i think any Great Expectations for tax reform are unrealistic. Anything that could happen will boil down to a small deal, and the most likely deal is trading some kind of sequestration changes for chained cpi or another type of entitlement. I hope they keep the sequester. The only reason i like this deal is they kept the sequestration in. The budget caps are in. In my humble opinion, thats good for the economy. Robert costa, thank you as always. Well see you later. The question now is this rally sustainable . Lets go down to the New York Stock Exchange where bob pisani joins us now with the details. Good evening, robert. Hello, robert. Were having a party down here right now, though its not to celebrate the shutdown. The stock market rally, a little sell on the news as the deal was announced midday. But stocks closed at their high. The Dow Jones Industrial average, you see that here, now only about 2 from the historic highs. It was a broad rally. Financials were strong. Health care, consumer discretionary, all of them up about 1 . The big issue, larry, is what is next for stocks . Traders are trying to assess how much damage has been done to Consumer Confidence by the shutdown, the concern is that Companies May use the shutdown as an excuse to lower Fourth Quarter earnings more aggressively than they might normally do. Now there is considerable concern that reliving the entire debt and Government Spending issue in january like we just talked about, thats in this deal, will cause some to hold back in christmas spending, for example, particularly those who might rely on tax refunds in january to pay those bills. And its already starting to show up in the earnings report, larry. Did you see ebay after the close . They said earnings would be lower than expected during the christmas season, citing in part anxiety around the newspaper headlines. Do you see that drop after the close . And earlier in the day, tool maker, black and stanley lowered, they cited the Government Shutdown as one of the factors for lowered sales. The biggest disappointment for me and everybody else down here is we have gone through all this drama to get a deal that essentially is the status quo. Something you were just talking about, larry. We would like to see a little more progress. Me too. Robert, one other stock. After the bell, ibm revenues down six straight quarters, if my memory serves me. The stock got hammered 6 . And after markettrading. Is that apocryphal . Ibm great company. A little different from the ones you mentioned before. What does that mean, the ibm story . There is two parts to ibm. Obviously they have two things like servers. Price competition very strong. Sales a little slower too. Even in the Software Area where they do services, sales are also a little bit slow there. I think thats indicative of a slight reticence on the part of people. Bob pisani, appreciate it very much. Now, folks, a new rasmussen poll shows 78 of those surveyed want to change all members of congress, ie, throw the bums out. So let me ask our two distinguished guests what they can do to redeem themselves. They are both good friends, and theyre not bums. Here now are house members peter welch. He is the chief deputy whip of the Democratic Caucus and brad winthrop, republican from ohio. What can you do now . The numbers are pretty bad. The wall street journal numbers were 60 . What can you do to redeem yourself . 90 days is not a lot of time to get through a lot of complex fiscal legislation. Well, i would agree with you there. Its not a whole lot of time. But it is some time. And im glad that were going to have opportunity to sit down and talk about things like budget. After any type of a fight, as you know, im a soldier, its time for an after action review. And its time to set what we want to do next. And i think were going continue have the same discussions, many of the same discussions we had through this period, but hopefully well be sitting down at a table. The president said he would sit down and negotiate after we passed Something Like this. After that happens tonight, i hope thats the case and we can move america forward. Peter welch, i think it was a huge mistake, by the way, to only lift the debt ceiling for a couple of months. I think that debt ceiling should have been raised at least a year because i worry than the most, frankly. I worry about the dollar. I worry about our sovereign currency and our debt rankings and all the rest. But that didnt happen. And the shutdown last now, that is deferred until january 15th. So thats coming right up. And you have this Budget Committee that is supposed to report this new fiscal commission, patty murray and paul ryan. What is seriously, do you believe that in the next three months, you are going to get all of this done . Its going to be really tough, because were now actually that weve got this fight behind us, starting to talk about the real legitimate policy differences of how much we should cut, how much revenues we should have. Thats been an ongoing debate. It was stalled when we got into really what i think was the lastditch effort to repeal the Obama Health Care bill. And then the use of these tactics that i think are really dangerous, whether theyre used as they were in this case by the antihealth care folks or theyre used in the future by say a democratic fashion, weve got to pay our bills, and we shouldnt be holding the government hostage and inflicting unnecessary pain on innocent people as a tactic, rather than have the real discussions where brad and i probably disagree. But were not going to get to yes unless we have a real conversation about it. Thats where were at now. Brad, these polls are bad enough. The fact that youve only got about three months makes it even worse. Let me just ask you this. Will the Republican Party continue to go after major changes in obama care . The defunding did not work. The delay did not work. Essentially, this was a clean bill. I think thats fair to say, with only some tiny, tiny modifications. Whats your next step on obama care . Well, i think were going to continue to make changes and gear towards patientcentered solution. Ive said all along ever since i decided to run for office, as a physician, that we address this whole process in the wrong way, we should have been addressing who is uncared for in this country, and the uninsured would fall under that. Thats what we have to look at. Were looking at a program that is still going have a large number of uninsured, and were also going to have a large number of people going to medicaid. And people under medicaid know today that they have a very difficult time getting access besides the emergency room. And we need more primary care doctors and more access. So the problems are still going to exist that we need to address if were serious about really getting care to the American People. And also, what youre seeing right now with the implementation and the effect on businesses, thats going to continue to loom as an issue for america. Well, guys like me think that whole story is bad for the economy. Not everybody agrees with me. I understand that. But peter welch, let me go back to you. Im getting emails and im getting tweets that basically say you know what . Leave obama care alone because its going to drop of its own weight, that the launch was so incredibly bad, it is in fact a train wreck and will never work. What is your reaction to that . Well, listening to brad, as long as were talking about improving it, and its going to need improvements, then were all ears. We want to sit down and do it. In fact, in my state, im going to go around and talk to providers and Business Companies how is this working . How is it not working how can eimprove it. Pardon me for interrupting. What would you change . Number one, the computer system. I mean, weve got glitches. Its tough to get on. Its tough to get in. And this has got to be simple. And when were talking about how do we improve it, how do we make it work better, how do we get the costs down, thats where we can make some progress. Weve been having this endless battle through the house, the senate, the president ial elections, the Supreme Court about whether it would be the law or not. Thats established. So now when brad, whose got a lot of experience as a doctor, comes up with some suggestions and its about not repealing the Obama Health Care bill, but making it work, making it more affordab affordable, weve got to work with him. Were in a place where we can make progress rather than have this knife fight which has been going on the last couple of weeks. Just last one, brad. Ive only got 15 seconds. Have you and the Republican Caucus given up on repealing obama care . Well, it may be difficult to repeal it in its entirety, but we certainly want to implement things that we feel are Logical Solutions are going to provide care for the American People that are affordable and where they really have access. So you can call it what you want, but change needs to take place if were going to really accomplish our goal. Thank you, gentlemen. I appreciate it very much. Peter welch, brad whenstrup. Jared bernstein, cnbc contributor, he is a former chief economist to Vice President biden. Doug holtz aikin and former cbo director, and dan holler of Heritage Action for america. Dan, let me begin you. Neither of our representative representatives that we had on the show seem to be willing to go for a total repeal of obama care. What is your take on is that. The fight is going to continue. I think the American People kmpt expect their lawmakers to continue pushing this. We know its a bad law. We know its hurting people. The question is what do we do next . And i think from here over the next few months, youre going to see the people who are responsible for passing that law, theyre going to own this. And people like kay hagan and mark pryor and mark begich, theyre going to have to explain to their consistents why they stood in the way of efforts, legislative efforts that would have spared their constituents. And you advise you advise members this was a key tonight in the house. Probably in the senate too. But i know now, you advise them to vote no on this package, could you not . Could you tell us why . Yeah we did. Fundamentally this whole debate has been about obama care. Until you do something that addresses obama care in a way that protects the American People, thats not a solution there is no doubt this makes politicians in washington happy, and thats fine. It punts it down the road. This does nothing for the American People who are seeing their premiums go up. Is it helping the American People . And the answer definitively is no. Jared bernstein, time for your rebuttal. Well, first of all, i thought the republican representative we were just talking to gave a pretty good rebuttal. Because when you hit them right up, repeal, he didnt go there at all. And i would say with respect to our friend from Heritage Action, theyve really kind of got on the short end of the stick today. I wrote it down. Patientcentered solutions, covering the uninsured, more doctors. Thats all pretty consistent with what obama care is trying to accomplish. I will say one factual correction. In fact, premiums in many areas where these exchanges are being implemented, the growth in premiums has come down a lot. And, in fact, i always think of you in this case, larry, because its larry kudlow style competition. Well actually have much more transparent competition between insurers in these exchanges. And it is lowering price. But do you hear that . I hear this. Larry kudlow style competition. If premiums are coming down. Theyre grow mortgage slowly. What im reading about, most recently in the Chicago Tribune that premiums are blowing up skyhigh. Thats point number one. And point number two, deductibles are blowing up skyhigh. And in some cases now, the providers are going to want you to play the deductible upfront. The deductibles could run up to 12,500 for a family of four. That does not sound like the economies that jared is talking about. I think in terms of what were seeing the exchanges, number one, the deductibles are very high. Families of four were looking at 4,000 and 6,000 as the smallest deductible. Were looking at the key grouping, the young invincibles. And there 30yearold male nonsmoker, average increase before and after 260 . They dont show up, this doesnt function. Are you including the stubbs days . Yeah. Thats very surprising. Thats quite different than the numbers ive seen. A lot are going to have zeros. If the incomes are too high. This is an issue. And well see how it plays out. The second issue is the policy fight. The policy fight is a good policy fight. And if you have looked at any of the polling, lots of people have concerned about it. People dont like obama care. They dont. The polls show. They dont Like Congress either. And they dont like republicans the most. But they dont like obama care. They also dont like repeal and refund and all that. The tactics they dont like. Exactly. They dont want you to shut the government. In the polling before the shutdown said dont use it as a tactic. Its a policy fight. They want the fight, but dont shut the government. And the republicans are paying for using it as a tactic. Theyre right on the policy. The public disgrise with them on the tactic. Youre all going to come back in just a couple of minutes to continue this conversation. But now lets focus on your money. The market celebrated the budget deal in a big way today. The dow gaining 205 point. But the question is where do we go from here . Were going to ask two top investors who know wall street and washington. Folks, dont forget. Free marke