Say could make the funds riskier, not safer. All that and more tonight on nightly Business Report for friday, september 20th. Good evening, everybody, im tyler mathisen. And im sue herera in tonight for susie gharib. You can call it fallout friday. A litany of events converged on wall street today, sending stocks sharply lower. First, the rebalancing of the dow and the s p 500 caused volatility as Money Managers had to adjust their portfolios. Second, it was quadruple witching, which is the expiration of certain options and futures contracts. Third, the growing fear that the government may be hurtling toward a shutdown at the end of the month. Well have more on that in just a moment. And lastly, officials making comments today about when the Federal Reserve will start pulling back on its bond buying program. Spooking the markets early on was st. Louis president james bullard, who said next month isnt out of the question. I do think october is a live meeting. We have we have had press conferences at certain meetings, and not at other meetings, but the chairman did say that we could, if we wanted to, arrange a press conference for the october meeting. As to whether well take action there or not, i dont know. But it is a live meeting and it is possible that we would move. All in all the dow fell 185 points on heavy volume. The nasdaq was off by 14. And the s p was down by 12. And more now on the collision course lawmakers are currently on in washington this morning the republican controlled house passed a bill that will keep the federal government up and running. Past the september 30th deadline. But it wipes out funding for the Affordable Care act. President obamas signature legislation. House Speaker John Boehner surrounded by supporters at the capitol implored the Democrat Controlled Senate to support the house bill. Our message to the United States senate is real simple, the American People dont want the government shutdown, and they dont want obama care. Senate majority leader harry reid called the house bill dead, adding a second dead for emphasis. Meantime, president obama was in missouri, blaming what he called a faction of the far right for trying to undermine the health care law. He said some gop lawmakers are trying to derail him. And are not focused on american needs. John harwood joins us now from washington with more on todays vote in the house, and what it means, and whats ahead for congress. So, john, did the vote today, in the house, make things better, or worse . And can lawmakers ever hope in reaching a deal on these very tough issues like the budget . Well, i dont think it changed anything that we thought going in to the vote today, sue. This may be the last time that those members are going to have an opportunity to cheer like they did today, because harry reid is right, that bill is dead in the senate. You could say dead three times if you wanted to. The president would veto it even if it passed. Now what were going to do is have the senate act. Theyre going to extend government funding and it will be on the shoulders of john boehner to convince those members who were cheering today to pass a extension of government funding without the obama care provision, which he tried last week to do. Couldnt do it. You described this earlier today john as kabuki theater. It certainly seemed like an apt description. Do these shutdowns if one does happen, do they ever save money or end up costing taxpayers . They cost money, tyler, because they generate costs that have to be recouped later. Weve seen this before, since 1976 weve had 17 different shutdowns of the government. The emblematic one that we all remember was from 1995 when bill clinton and Newt Gingrich faced off. Those shutdowns cost the government around 1. 4 billion, and we know that a shutdown now would be more expensive on a per day basis. Why is that . Because in 1995, half of the Government Spending bills had already been passed. So only half of the government was shut down. This would be all of the government, because not a single spending bill has passed both the house and senate and been signed into law by the president. So, john, youve been following this whole situation for so long, and youve been on the hill for so long, whats your best guess . Are we going to see a 12th hour negotiation that avoids a shutdown or do you think theyll let this shutdown go through . Still possible, but i think its unlikely, sue. I think the likeliest event is that we do have a shutdown of some duration. Now the shutdown itself would not be scatastrophic. What would be catastrophic is if that were not followed by a decision to raise the debt limit. What i would expect to happen is the shutdown for a few days or a week. There will be a lot of heat generated on the congress, markets will get nervous and that shutdown then will be brought to an end. Republicans will end up 2308ding on this and raise the debt limit at the same time. Thats my best guess at this moment but its a highly unpredictable situation. John harwood, thanks very much. Reporting from washington tonight. A problem with the Affordable Care acts rollout of its centerpiece Health Insurance marketplaces. With just ten days to go before those state and federally run exchanges are slated to open a computer glitch is causing some havoc in the federal program. The wall street journal reported today that the Government Software cant reliably determine how much people need to pay for coverage and are now scrambling to fix those problems. Home depot now plans on using those public exchanges. The worlds biggest do it yourself chain announced that starting october 1st, it plans to shift medical coverage for 20,000 parttime employees to those public marketplaces so workers can shop for new health care plans. The Obama Administration announced some tough new limits on the amount of Carbon Pollution that can be generated by newly built u. S. Power plants. Those rules took a big toll on shares of coal stocks today. One of the biggest sources of carbon emissions. Take a look at alpha natural resources. Down 6 . Arch coal falling 5 . Really losses all the way across the sector. Hampton pearson takes a closer look at these new Climate Change requirements and why some Energy Producers see this as a white house war on coal. Power plants account for about a third of all Greenhouse Gas emissions. Over the next 12 months the Environmental Protection agency wants to mandate new rules using cuttingedge technology to dramatically reduce Carbon Dioxide emissions from new power plants. In a speech at the National Press club, epa Administrator Gina Mccarthy says the emission standards can be achieved with homegrown technology. We are very confident that the Carbon Pollution standards we are proposing today for new power plants are both flexible and achievable. They pave a path forward for the next generation of power plants in this country. The epa goal is to cap Carbon Dioxide emissions at 1100 pounds of co2 per mega wall street hour of power produced. Thats about 40 less on average than an existing coal fired plant. The Utility Industry says that standard cant be met without cost and technology to capture and store carbon emissions. They are trying to make standards based on highly Speculative Technology that would not even be applicable for the great majority of power plants in the u. S. Today. This coal fired power plant in kemper county, mississippi, due to go online next may, could be the first one worldwide to use Carbon Capture and storage technology. Cost overruns have pushed the price tag to 4. 7 billion, nearly 2 billion more than original projections. Its also been approved for 270 million in Energy Department grants and millions more in tax credits. You cant look at the results of one plant, which is only 70 , 75 done, and apply that to an entire industry. Environmental groups, however, say the epa standard will create demand for that new technology, a more likely scenario, lawsuits from the Utility Industry over the new epa proposed rule, as well as guidelines in the works for existing power plants a year from now. For nightly Business Report im Hampton Pearson in washington. And still ahead, could new rules make safe Money Market Funds more risky . But first a look at this weeks Top Performing stocks on the s p 500. Shares of blackberry tumbled today and thats putting it nicely. They were even halted from trading late in the session. Now thats because the company preannounced a massive Second Quarter loss of nearly a billion dollars. And that its revenue is about half of analyst estimates. The struggling company, which has put itself up for sale, also announced plans to cut 4500 employees. Thats about 40 of its total workforce. And its going to produce only four smartphones down from its current lineup of six. Those shares plunged after trading resumed. Look at that chart. It eventually fell 17 on the day. Well, if youre thinking of getting a new smartphone you probably know the newest iphones hit the stores today. Folks were lined up around the block outside apple Stores Across the u. S. , and the world, to get a hold of the new iphone 5s. The one with Fingerprint Recognition Software and the less expensive 5c which has a plastic backing and comes in five bright colors. So we asked some people why they felt the need to get the new device today . Todays the first day, i want to be the first first one to get the iphone 5s. When its apple people will stand on line for days and days and days and days no matter what it is. I had an upgrade available and figured might as well get it right away. Well, there was no problem generating sales for the newest and hottest musthave video game to enter the market in years. Take two interactives grand theft auto 5, with carjackings and scantily clad women sales topping a billion dollars in just the first three days in stores. Julia boorstin has more on the biggest entertainment debut, ever. This is business. 401 k tax. Since grand theft auto 5 went on sale tuesday, the game has been a record breaker selling 800 million worth in its first 24 hours, hitting a billion dollars in sales in its first three days. Yes whoo. The fiveyear gap since the last grand theft auto built anticipation drawing gamers out to the 4,000 Gamestop Stores that opened for midnight sales tuesday morning. This is the most anticipated release of the year by far. Im probably just going to go home and play it all night and go straight to school right after. Steal cars, run around, rob banks, do all the stuff you wish you could do and get away with in society. Reporter gta pa 5 as its called by fans beat previous record holder call of duty block ops two. The record breaking sale is great news for the Company Behind grand theft auto five take 2 interactive considering the game reportedly cost more than 260 million to produce. Making it not only one of the most expensive games ever made, but also pricier than nearly every movie. Take 2 interactive will more than recoup its investment. Not just from game sales, but also from ongoing revenue, from digital addons and content. You may buy new cars. New weapons. You know, and stuff like that. That you pay for, and thats very profitable. You know, buying content for take 2 the margin should be higher on digital content. So it also keeps the game fresh. Theuestion now, how sales will hold up over the crucial holiday season. And whether grand theft auto 5 will eat in ubisofts new creed game which debuts in october and to activisions call of duty ghosts in november. For nightly Business Report im Julia Boorstin in los angeles. We begin tonights market focus with a trio of stocks making their wall street debut. First up, rocket fuel, those shares lived up to the name soaring on the first day of trading. The company which places Digital Advertising for clients priced 4 million shares at 29 apiece. The higher end of its range. Now, watch this. The stock gained 93 to close at 56. 10. Fire eye also having a advantage debut. The Company Provides protection for corporations against cyber attacks. It uses modern cloudbased technology to help businesses fight computer viruses, demand for the offering was strong with more shares pricing than expected, and above the price range. The shares rose 80 to 36 a share. And club corp also gained on its first day but just not as much as the others. The largest owner and operator of private golf and country clubs priced 18 million shares at 14 apiece. That was bloes the expected range. The stock did close at 14. 50, up more than 3 . And now to earnings. Darden reporting a drop in profits. And its weakest sales at established restaurants in more than three years. The owner of the olive garden and red lobster also lowered its Sales Forecast for the full year blaming an uneven recovery, higher taxes, and some tough competition. The shares fell 7 , 45. 78. Ak steel also issuing weak guidance. The steelmaker warning that falling prices could lead to a larger than expected loss this quarter. Additionally, the company said it had to reduce its steel shipments because of a mechanical failure at one of its facilities. The stock dropped 8 to finish at 4. 09. The New York Times will pay a Quarterly Dividend for the first time in five years. Shareholders of record as of october 9th will receive 4 cents a share. The company is using cash raised through a number of recent investitures to fund that dividend. New york times closed 1 higher to 11. 66. And Goodyear Tire will reinstate its Quarterly Dividend payment of 5 cents a share. The tiremaker suspended its dividend about a decade ago in order to preserve cash. It also plans on spending up to 100 million to buy back shares of its stock. Shares of Goodyear Tire closed fractionally lower to 22. 22. Well, tens of millions of americans keep more than 2. 6 trillion in money market mutual funds. And yesterday the securities and Exchange Commission closed the Comment Period for proposed new rules aimed at making the funds safer. Rules the Fund Industry opposes. Today in the New York Times. Financial writer floyd norris says the rules dont go far enough calling them pitifully weak and inadequate. Mr. Norris joins us now as does brian reed chief economist at the Investment Company institute, the mutual Fund Industrys chief trade group. Floyd, welcome. Brian, welcome to you, as well. Inadequate and weak. Why do you say that, floyd . Well, originally the regulators wanted to do one of two things, basically. One was to force them to admit their normal mutual funds, and trade with fluctuating mav, mid asset values. The other alternative, which they considered, was to treat them like what they really want to be deemed to be which is real banks. A bank is something that takes deposits and promises to pay you the money, whatever happens to its investment. And banks, of course, have to have reserves. And around the world now, regulators are stiffening the reserve requirements for banks, because we learned five years ago they were too weak, and yet in this case, this is a huge banking industry, that is going to get away, it appears, without having to have any reserves at all. Brian what about that, though . There are a number of people who think given what we did go through a few years ago, that it cant hurt to toughen up the rules a little bit. What would be wrong with holding some reserves . You know, i think the important thing to keep in mind here is that the rules have been toughened. And weve been in a public dialogue for nearly five years to look at ways to further strengthen those rules to make Money Market Funds more resilient. In terms of reserves, im not really sure what that means, except that, you know, money funds right now hold in their portfolios 20 of their assets that can be liquidated in a single day. And 30 that can be illiquidated in a week. Those came about because of the terms which have been very effective. Floyd one of the things you point out is one of the proposed rules apart from requiring the funds to have a floating share price it could go above or below a dollar a share is the idea of putting up charges or gates for withdrawals. And you argue that it is possible that if you did that, that that could spawn sort of a runs on Money Market Funds. Explain that. The theory is this is an argument thats been made by the Federal ReserveBank President s that under some circumstances, we can see this put into effect and scare a lot of people. This proposal, what happened here, was