This is small and midsized caps. We really struggle for the small and Midsize Companies that face all kinds of questions what their futures are like. They did well today. Cheryl lets get some headlines. We may see jay carney in the press Briefing Room any moment. President obama and House Speaker bone bone spoke on the phone. Were finding out they spoke on the phone about the budget and debt ceiling negotiation. Well go to the washington for latest details. At any moment we expect to see jay carney. David meanwhile there are effects to all of this people are five just nellies because of what happened. Consumer confidence fell to the lowest in nine months amid impact the ssutdown according to Thomson Reuters consumer survey. Cheryl jpmorgan, first ever quarterly loss under jamie dimon. Excluding litigation, onetime cost, jpmorgan made a profit of almost 6 billion. Stock not really performing today. David no. Another big bank, wells fargo said profit rose by 13 in its Third Quarter but its Mortgage Business did fall. Cheryl and we have some fed comments. Federal reserve governor Jerome Powell said the fed will maintain its ultraeasy Monetary Policy for quite a bit longer3 regardless what happens with the asset buying program and possible taper. David by the way, reuters is reporting right now that the Justice Department is making inquiries into allegations of Foreign Exchange rate manipulation centered on the swiss franc. European authorities are currently leading the investigation. After the bell starts right now. David we are going to toss immediately to jay carney in the white house Briefing Room. Were expecting some breaking news. Lets go. I just wanted to make sure that before i came out to you i could provide you with as much updated information as possible. I dont have an Opening Statement to make and, in the interests of moving this along i will go straight to questions. Well, i can anticipate some of your questions. So, it was, kind of information that hope will be responsive to your questions, at least in part that i sought and found. Julie . Thanks, jay. Can you tell us what the president and Speaker Boehner discussed in their phone call . Yes, i can. The president did call and speak with speaker of the house this afternoon, not long ago. Had a good conversation and the two of them agreed that all side snead to keep talking on the here, that are confronting us that have led to a shutdown of government and to the situation that put us on the precipice of, you know, potential default or at least reaching that line beyond which the United States government does not have borrowing authority. So the president believes that in his meetings yesterday with House Republican leaders and today with Senate Republicans as well as of course with house and Senate Democrats that weve had, there have been constructive talks. When it comes to the House Republicans in particular there is an indication anyway of a recognition that we need to remove default as a weapon in budget negotiations. That the threat of default should not be used and certainly default itself is never an option. And the president appreciates the constructive nature of the conversation and of the proposal that House Republicans put forward. He has some concerns with it. And ill simply say without reading anything, i will not read out details of conversations of the phone calls that our position, the president s position that, you know, we, the United States should not and the American People can not pay a ransom in exchange for congress doing its job remains as true today as it has been throughout this period. When you talk about House Republican proposal are you talking about the proposal that they presented in the meeting yesterday or are you talking about this new proposal from them that would increase the debt ceiling short term and also reopen the government and in exchange, increasing cuts in benefit programs . Im not aware of multiple proposals. I think there has been general discussion and im not going to get into details. I will simply say that the president has longbelieved and insisted we can not allow a situation one party in one house uses the threat of default to try to extract concessions through budget negotiations. And it is his position that the right thing to do is to remove that gun from the table. Extend the debt ceiling, in a way that insures that there is no suggestion or hint that default is an option. Because our economy cant endure that kind of approach to resolving our budget differences. A proposal that puts, debt ceiling increase at only six weeks tied to budget negotiations would put us right back where we are today in just six weeks on the verge of thanksgiving and the obviously important shopping season leading up to the holidays. An that we would create enormous uncertainty for our economy. The president speaking with Small Business owners, heard from them, that you know, continued threat of default into that season would be very damaging to them and we cant, we dont think that is the right way to go. You said yesterday though the president would likely sign a shortterm david we were expecting something special, nothing that special from jay carney. He of course the White House Press person. Peter barnes has been watching this or listening to it from right outside of the white house Briefing Room on the white house ground. We can coin it hear, peter, comments like, removing the gun from the table, weapon, ransom, kidnapping. These are pretty harsh terms coming from the white house still. Yeah and the white house is going after the tea party here and ted cruz in the senate and, importantly, ted cruz was one of the republican senator who is came over here this morning and met with the president for an hourr1 2, almoot all of them came. Pulled up in buses at the portico and they were in there and waiting to get a readout from the white house and from carney how they think the meeting went but we have been hearing from Senate Republicans including the number two republican in the Senate John Cornyn and he said, that the session could have been a productive one but instead he thought it was another lecture from the president and, he had even more to say about the meeting when he went to the senate floor. Take a listen. He himself sort of chuckled about the grand bargain that he had been pursuing than Speaker Boehner and others had been pursuing over the last few years and he likened it to a unicorn. In other words a mythical creature that no one has ever actually seen. Thats what the grand bargain is. At least under this administration. Also, we heard from senator Chuck Grassley of iowa who tweeted that he thought it was a very good discussion on the shutdown. Nothing obvious decided but, but hope, im surprised there will be progress. Also heard from senator Susan Collins who said she thouggt maybe a deal to keep the government running six more months, sixmonth continuing budget resolution might be a way to get a compromise that would reopen the government and get an increase in the debt ceiling. So we continue to get feedback from Senate Republicans, House Republicans. I will run in here to hear what else carney says. Cheryl peter, before you do, i want to get your opinion on something here. Were still monitoring what jay carney is saying inside the Briefing Room, what he is saying here, the white house, a proposal that put as sixweek debt ceiling increase tied to the budget is a nonstarter. That they will not agree to that House Republicans that would be kind of the deal that gets done this weekend. What do you make of that . The white house has been trying to argue, were hearing kind of mixed messages. Carney seemed to say yesterday the president would sign a debt ceiling increase in the debt ceiling, without opening the government first and start budget negotiations after that. So no contingencies. Now youre hearing that from carney as he is speaking right now, some perhaps a different position. Cheryl right. But, you know, i guess it comes down to what the definition of clean budget resolution or clean debt ceiling will be. And, whether or not they will consider, you know, having talks on the budget and reopening the government as conditions and, so, it is a moving target. Cheryl you know what . I will let you go inside to listen to the briefing. Peter barnes, thank you very much. David it is also raining. Good to get him out f the rain. What is extraordinary he despite of all the indesigh sieve elements of the story we still have a market gain of triple digits on the dow. Cheryl right. 11 to the upside. Monday morning could be a different story. David could be a lot of trading action throughout the weekend. Cheryl bond market closed on monday but stocks will be going. A few moments ago we got white house views of all the drama in washington. Were still getting comments from jay carney. Where do things stand in congress . Well head to the hill to find out what republicans are thinking. Whether both sides are closer to a deal. David by the way with all the political heat, finally will it force washington to tackle some way the explosion in entitlement spending . Were going to be asking steve forbes. A man who knows a lot about both money and politics and also greattlittle show over the weekend called forbes on fox. Cheryl ive seen that. I think you host that. In todays facebook question we want to know, do you think congress will reach a deal bit debt ceiling deadline on october 11th . Log on to facebook. Com afterthebell and let us know. Back in a moment. [ male announr ] once, there was a man who fnd a magic seashell. T told him what was happening on the tradfloor in real time. The shell brought him great fame. But then, one day, he noticed that evybody could have a magic seashell. [ indistin talking ] male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Sll. 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We, not having branches lets us givyou great rates and service. Id like that. New way to bank. Betally bank. Ave. Your money needs an ally. David shares of micron falling hard today following the companys Earnings Report yesterday. Lets head back to Nicole Petallides on the floor of the New York Stock Exchange as it is still going down, nicole . It was not a good day for micron shareholders or the company itself. It was down more than 8 . This as the dow moved to session highs at the closing bell. A lot of excitement to the upside on wall street but not for micron today. So this fellow is the number one loser in the s p 500. They did have late thursday, numbers there. Earnings results. They reported Fourth Quarter sales that exceeded the expectations. The sales were good but it was earnings numbers that really, they did have a onetime gain but really failed to meet the wall street expectations. So it was a big laggard today. Which should be noted though, it is a great performer this year, outperforming so many stocks, up 165 for the year 2013. So it really is a great performer but a tough quarter. Back to you. Cheryl Nicole Petallides, thanks, nicole. David lets get to todays Market Reaction with kim and daniel stesaich in the pitsp of the cme. ood to see you. Daniel, markets almost always overreact to things like politicians on the beltway. We had a relief rally, tripledigit gain on the dow. All indices were up. Is this relief rally also an overreaction . I think so, yesterday and today were both overreacting to both of the, half of d. C. Coming together and agree to taak. Cheryl all right. Dan, over to you. What weve seen in particular when it comee to the markets is volatility. Weve seen volatility again yesterday. Right. Cheryl seen volatility yesterday. If there is no deal monday, how high will the vix go and how volatile will the market be . If there is no deal you will see the vix in the 20s. After the announcement with the carney press conference somebody is going on back there. The market gain ad couple points and kept the bid. Doesnt mean there is a deal out there, the fact theyre being quiet about it, not seeing he said she said is encouraging to me and theyre talking behind closed doors and instead of playing to the public. David kim, i want to give you a little more chance. It was a short reaction not overreaction on wall street of any kind of deal being done. Do you think because perhaps the market overreacted, i know you dont play for the daytrader routine, if you think you are kind of rich right now based on what happened the last couple days, maybe you sell a little thinking the market overreacted . I think so. I think valuations just overall this year are way ahead of what earnings have done. So what i would do is go through my portfolio and look for things probably at their fair value or pretty darn close to it. Last couple days surely have given you some increases in your portfolio. It is never a bad thing to sell a little bit. Not the whole position but a little bit and, you know, go on from there. Cheryl well, kim, what does that mean for some of the stocks you like right now . I know you like intel for example . Yeah. Cheryl what kind of move would you make on a stock like intel . Intel has been beaten up, and probably unless you bought it last year when it was in the teens, or the year before, i would probably wouldnt take that money off the table. That actually, i think still is a buy. But looking at another company that we really love, honeywell, honeywell has performed unbelievably well. We think it is wellpositioned for the long haul but would probably take a look at that if our position has grown outside, outsized our portfolios. David dan, lets switch from equities for the moment to gold. Gold is dropping like a weighted stone right now. Right. David where does it end . And isnt it kind of a counter action to what a lot of people thought would happen as a result of janet yellen being nominated because she is easy money person . One would think you might have inflation and gold goes up. We havent seen the inflation coming through. I think the gold running through is primarily what is going on in washington. Im not a good fan of gold. If i thought the bottom would be going and i would short it. David hold on a second. You would be shorting it even now with a 12 handle . I had to have a position on in gold i would be short gold for the longterm. Im not talking about short term but for the long term i dont like gold. Cheryl you know, kim i do want to go back to something, here with me going equity again but i have to ask you about Health Care Sector overall. Now that republicans backed off any changes to obamacare, what do you make of the Health Care Sector . The exchanges were a bit of a disaster . Im an excomputer scientist and it is a travesty really to have let that out without as much testing as clearly was needed but that is neither here nor there. Looking at health care were underweight that sector and its because we think in the future that is going to be an area that is squeezed for profitability as more people come in to medicaid, and perhaps even medicare and the government is just going to start squeezing the Health Care Providers and the drug manufacturers for better prices. And that is not going to float through to the bottom line. David dan, let me stick with equities for a second here and leave on a little positive note which is alcoa. Sure. David alcoa, along with its earnings had a forward forecast which was very positive and bullish for the economy. Lot of people look at alcoa for a bellwether of economy because they sell durable goods. Are you encouraged by the statement they had . I was absolutely encouraged and heres why. Theyre still a bellwether in terms of the industrial sector, metals and materials. What they said not only do they feel decent about the u. S. But theyre feeling comfortable about europe and china. Those two areas have been depression on the markets. Get those solved in any sort of way it will be nothing but good for those type of companies. David there is a positive note here. Actually ending the day with a tripledigit gain on the dow is a pretty positive note. Kim caughey forester, dan, wonderful to see you as well. Happy to be here, thank you. David thanks. Cheryl