Dropped out cattle. All that and much more at this hour of market now. All right. Good morning, everybody. I am connell mcshane. Dagen had to leave early today. I will take you through the hour. Nicole petallides imposition at the New York Stock Exchange to start us off. Nicole good morning. Three days last week that showed some stellar gains. Today, obviously, there are some frustrations. Last week what we saw was a winning week on wall street. We keep an eye on washington now as the october 17 date is looming. A lot of the traders i speak with think that they will somehow come to an agreement. Even this morning, that is what the traders were telling me. We will continue to watch the nasdaq. The only up arrow i see at the moment, other than the mix, is gold. Connell this kick the can seems like the best Case Scenario right now. Peter barnes is that the white house with the very latest. All eyes right now are over on the senate for a budget and debt ceiling deal after the white house rejected a deal from white House Republicans. Harry reid said he spoke with Mitch Mcconnell. About one dozen Senate Democrats or republicans are still trying to hold onto a proposal from Susan Collins to try to hold off on this proposal. It does require new obamacare antifraud verification measures. It would also jumpstart the budget negotiations with a deadline of january 15. This group of 12 includes democrats of west virginia. The mac when they come from different backgrounds, we are considering our friends are. Where our colleagues would be. Also, the good of the country. This is a good template. I think that it is the basis of what is going to happen. Harry reid has reject did this. The issue is it keeps the discretionary cuts going for too long. Republican senators said this morning, it will not fly with them. Take a listen. I do think that Senate Democratic leaders have realized that there is no way Senate Republicans will agree to that. I think they are now back into a place that may lead us to a conclusion of this in the senate anyway. Peter a spokesperson for senator reed says they do not have any problem with the cuts going to the end of the year, but they want to talk about wells for 2014. Connell peter, thanks. We were talking for so long about how the republicans are taking the blame for this. Are the Senate Democrats risking overplaying their hand a little bit. I think that it is the fault of the media. The president says i will not compromise. He is supposed to be a leader. Connell though polls have shown that the House Republicans shut the government down. They were taking the blame. That is perception. The fact that you are right and i am wrong or you are right and i am wrong does not necessarily matter. If somebody said, look, i am not going to compromise. Why is he not wrong . I do not know if we need to rehash the whole thing. Their argument is if you just brought it up for a vote, it may pass. It is incumbent among the press. They cannot just say, the republicans are to blame for this bid that is crazy. Connell let me ask you about the markets. The perception today is there will not be a deal in the market goes lower. October 17 is not an exact date. I do not think it is a problem. I do not think that the markets will go down 500 points or Something Like that. The government is us. We are the taxpayers. The first 250, well, we have taken 250 billion a month in tax revenue. We reach the crisis. The debt. Gets deeper. We will pay it. We went to detail explaining what may happen. Here is the point. There are bills that would not get paid. Is it not, potentially, a problem for the United States of america to not pay a bill. No matter what it is. The greater problem is when we go broke. We have been printing our own debt. The public does not understand that. I am not concerned. They will find a way. Even if the president hides in a closet. Somebody will come out and lead us through this thing. Connell one of our favorite guests. The nobel prize for economics science was announced this morning. Robert shiller was one of the winners. He is noted for his report on home prices. We have not been able to get in touch with professor shiller for whatever reason today. The story everybody around the office seems to be talking about today. Worker productivity is low in england today. It is low here in new york. Patriots one with a lastsecond toly. Look at that. David ortiz grand slam. Tied at one game a pieceewith detroit. This is a great stat for our business audience. The lowest point, the probability of both teams, red sox and patriots coming back to win those respective names is 0. 2 probability. They both wondered that is pretty cool. Say goodbye to wayne rogers. They were right to go for it on so forth down. That is my sports commentary. That has been all over the place. He was playing the odds. Coaches should go for more on for around, but they dont. Anyway, they won. You do not care. More devastation on the cattle market. This storm, it seemed like nobody reported on this storm last week. Cattle casualties are running close to the six digit mark. This town that facebook is building for its employees, and incredible lifestyle if you worked for facebook. Netflix and cable operators. They are usually at odds with each other. They could be working on a deal. We will talk about it with dennis knnale coming up on markets now. Stick with innovation. Stick with power. Stick with technology. Get the flexcare planum. New from philips sonicare. Connell we talk a little bit more about this, this catastrophic snowstorm came south dakota last week. It left nearly 100,000 cattle dead. Most ranchers in the state lost anywhere between 50 and 75 of their herds. This could mean higher beef prices. Phil flynn joins us right now. It has been devastating. You can feel the pain in their voices as these prices soared towards record highs. They set a record high on friday. They pulled back a little bit. Nobody really knows how bad this will eventually be. We are talking a lot about south dakota. That was not the only state that was hit. You have wyoming. You have parts of nebraska. This could become bigger as time goes on. I talked to 15 or 20. They just not know. They will not know the full extent until spring. Connell we did not get into it as much as we should have our first. Phil, we will check back in with you. Now we have facebook. Nicole petallides rejoins us with the story the 20 facebook has agreed to by a start up company. This is interesting. It is an app maker. On the website it says there was not too much details. Pay between 150200 million. This will make the biggest acquiiition in israel. It helps people cut their mobile costs through more efficient use of the data. You can see the Facebook Stock right there. Watching this one very closely. Connell thank you very much, nicole. We will talk about raising the white flag here in a moment. Why the republicans need to give in and cut a deal with the democrats. Jeff flock will have that. Why netflix may cut a deal to cable providers. We will get to all of that with Dennis Kneale. First, a look at world currencies today and how everyone else is faring against the u. S. Dollar. In todays markets, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route youorder 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. Amelia. 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Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioriti her goals, so she could really turnp the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a ba. They take banker. Make a my financial priorities appointment today. Becauswhen peopltalk, great things happen. 22 minutes past the hour. A volunteer taken hostage in syria are now safe. No word yet on the other three workers that were taken. Fights are back to normal in l. A. The fbi is investigating. Commuters in San Francisco did not have to find another way to get to work this morning. Tomorrow could be a different story. Those are your News Headlines on the fox business network. Connell frustration is building across the country. It is time to get serious. Jeff giving a voice to busiiesses. We always do. A company that has been around since 1905. Harold schafer, the latest in a long line of schaeffers to run this company. You did not vote for the president. You hate obamacare. You say wait a minute, we still have to make a deal. The time has come. I think it will have serious effects on our economy. It already is. Jeff there are some republicans that say we do not need to worry about this. It is a false deadline. I believe that it is critical. I think they should go ahead and vote, pass. It is all hinged on obamacare. I feel like obamacare will fail anyway. The repuulicans know this. It already is failing. Jeff you think obamacare will fail on its own . It already is failing. People cannot even get online. Jeff very much opposed to the administration. Listen, it is time we move on here. All day long here at the schaeffer broke company. Connell it is interesting. Thank you. The vix perspective is you and your 401 k . We will show you why that is the case. Why life is getting a lot better for facebook employees. First, the markets for today. S p winners, including netflix. We will talk about later this hour. [ bell ringing, applause ] five tech stocks th me than a 10 . Change in aftermarket trading all t tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your tradinfloor. Get realtime market scanning wherever you are with the mobile traderpp. From td ameritrade. Ido more with less with bu energy. With the mobile traderpp. Is helping ups do just that. Soon, the worlds most intelligent servers, designed by hp, will give ups using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Connell so were at the half hour, and heres a look at what is coming up on markets now oday. What the bears will be going after if washington doesnt get a deal done. Were talking about your 401 k . Then bank bashing, thats in these days. How it could hurt the entire economy. And longtime enemies of the marketplace, netflix soon may cut a deal with cable operators. So well have that. General motors today making a few headlines, opening up a new plant in texas, but also taking on its electric car rival, tesla motors, with a new plugin cadillac. A lot going on, nicole, how about the stock . Reporter well continue to follow this story from now straight through january when the new electric car will be available from general motors. Of course, tesla has outpaced just about every stock on wall street this year, teslas up over 400 this year, but gm is not too shabby itself, so the big news today is that gm will have an electric plugin car, and it will be the cadillac brand, and it will go on sale in january of 2014. Its a plugin coup, a starting price of about 76,000. Includes fees and the like. Of course, may be eligible for tax writeoffs or Tax Exemptions of about 7500, but going head to head against tesla in this market. Back to you. Connell here we are, day 14 of this government shutdown, and you still have hundreds of thousands of workers furloughed, still do not have a deal. Mike emanuel joins us now from capitol hill. On monday it looks like its in the hands of the senate, right, mike . Where do we go from here . Reporter thats absolutely right. And the focus of the talks between Senate Majority leader harry reid, the democratic leader, and Mitch Mcconnell, the republican leader, is that reid would like a longerterm debt ceiling deal. He would like to run this through the next election, say, to the end of 2014 and a shorterterm government funding deal. Bottom line is he would like to fight over those cuts that were made in 2011s budget deal, so hed like to have a shortterm government funding plan to be able to fight on that and to raise the spending levels, if you will. Senator Mitch Mcconnell would like to raise the debt ceiling for a long period of time actually, forgive me, senator Mitch Mcconnell would like to fund the government for a long period of time but would like to fight over the debt ceiling again in short order. And so there you go. Each side trying to argue for what they think is the better argument they can make. Connell i guess we shouldnt be so surprised after all the optimism on friday that this s looking like its going to run out, you know, the clock right down to the end. Because we are running out of time if you believe the deadline the treasury departments set. Anything we should be optimistic about . Reporter i think everybodys going to be watching this afternoon about 2 00 to listen to the tone there reid and mcconnell to see if there is an update on their talks, if there have been more productive discussions again today. Talked to some leadership aides who say a deal is possible within the next 24 hours. Not a guarantee, for sure, but thats what theyre working toward. But the clock really becomes a factor, because procedurally things can take a long time in the senate, and then youve got to send it over to the house. And so they really are up against it, but thats quite often when some kind of deal comes together. Connell well, well see. Mike, hey, thanks for a few minutes today. Thank you, buddy. Obviously busy over on the fox news channel. Meantime, here at fox business you should be worried, and we are, about your 401 k and Mutual Fund Holdings that could get hit if there is no deal by later this week. Dan clifton joins us, head of policy research, hes also down in d. C. Should we this is kind of the discussion you have, as we said earlier in the hour, we got into this about, oh, the side that says, dont worry, if theres no deal, you can still make the payments. You know both sides, and others that say, no, you never know the market could really sell off. Should people who are just casual observers in a 401 k that have mutual funds, should they be worried this week . Well, we should always be worried about the direction of the country and whether were going to default on our debt or have a technical default on our debt, but if you look at 2011, the last time we went through this debt ceiling, there was a pretty big decline in the stock market, about 13. 5 . But were up 40 since that time. So if your time horizon for your 401 k is over a long period of time, particularly for young workers, this is just going to be a blip on your radar screen. As you get nearer retirement, you should be less affected by shortterm volatility thats going to happen. I would say that we saw a pretty Big Development last week when we saw both Speaker Boehner and the president of the United States say that if we need to, well do a shortterm increase in the debt ceiling to prevent any type of disruption, but you never know with these guys. The egos are pretty tough, the negotiatings pretty hard. Connell its your job to give these, you know, you give all of us advice on whats going on in washington that could affect our investments. Youre almost saying, and i could see it, and we havent talked enough about it, hey, listen, weve been through this before. And there will be a deal at some point, so thats a an argument for buying if theres a dip, isnt it . Thats correct. Were working with Institutional Investors who are managing pension money and mutual fund money for working americans. So we want to be able to manage risk and make sure theres not some major negative event that happens in washington that could really hurt their investments. And there is some risk going into this debt ceiling fight. But at the end of the day, if they dont act by october 17th, october 18th, you will start to see market pressure build in as the market questions whether congress can get this done. Connell right. Normally, we treat these situations as normal, but because weve had a government shutdown, there could be an extralation, and maybe that extrapolation and maybe that does create a buying opportunity. We have to evaluate on a day by day basis. Connell one political question before we let you go, you mentioned it already and mike emanuel reported on it for us and now that the senate seems to be controlling this and the talks didnt go anywhere over the weekend between the leaders there, do the democrats risk overplaying their hand even though it looked like they had a big advantage at the end of last week . Its a big theme thats emerging. That wall street journal poll that came out on friday was disastrous for the republicans, and over the weekend the democrats upped the ante. Ive got to tell you, this could all change if the House Republi