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Welcome to the closing bell. Im kelly evans in today for maria bartiromo. The shutdown showdown center stage down here at the new york stock exchange. Weve been equities all day down triple digits. Were down about 114 points right now on the Dow Jones Industrial average. Same thing, about half a percent on the s p, a level of 1682. The nasdaq weakening as well, although holding up a little better. The focus as well will be on the last hour of trade. This is the day where washington, wall street and main street all intersect. John harwood is in washington with the latest on this fight. Were now less than nine hours to go until the deadline. Recap where things stand for us right now. Reporter where things stand, kelly, is that the senate has now defeated on a partisan vote, the democratic majority has turned down the house proposal to condition the extension of government funding through november on a delay or defunding of obama care and a repeal of the medical devices tax, which is part of it. House members are now meeting on the house side of the capitol to try to figure out their next move. There is discussion within their caucus of throwing back to the Senate Another version of the continuing resolution that would extend government funding, delay the individual mandate, which is a central core element of obama care and also attach an amendment that would eliminate what they call subsidies to members of congress and staff for their health insurance. They think some republicans think this is a real Pressure Point for democrats. Harry reid was just asked about that at his press conference and he said that the senate would not pass that. When you look at all of these things, you think the odds have got to be very high that we have a shutdown tonight. But theres one person whos not persuaded of that yet, thats president obama. Heres the president speaking just a few minutes ago. I am not at all resigned. If you set aside the shortterm politics and you look at the long term here, what it simply requires is everybody to act responsibly and do whats right for the American People. The one real hope for averting a shutdown before midnight tonight is if in fact the senate kills that new House Republican position, as harry reid indicated, Speaker Boehner could make the decision to put a clean extension of government funding with no obama care provisions on the floor. It would pass if he did that but it would be risky for him because it would make some conservatives unhappy and threaten his speaker shship. John, how about this idea or this report that Mitch Mcconnell is floating something to certain folks up on the hill of a oneweek extension. Does that have any merit, does it have any hope . Reporter i dont think it has any hope. Harry reid has rejected it. He said the extension of government funding that i put on the floor is also short term but through november 15th and a oneweek delay wouldnt mean anything. Democrats are saying if were not negotiating now, why would we negotiate over the next several weeks. Also republican conservatives in the house have also rejected mcconnells proposal saying thats too weak for us, we need something stronger. We want to continue to go after obama care so it doesnt look at this stage that Mitch Mcconnells solution will be the way out. John, im sure its not the last well see of you this afternoon. Thank you so much. Is the market reading this right as were down triple digits or is this a buying opportunity. Joining us weve got david sourby, michael, mike thompson, hello, and our own Rick Santelli. That you all for joining us. Absolutely. I want to kick it off here, they have weakened a little bit but i wonder are people overlooking the fact that the big fight might be around the debt ceiling or do investors not think even the debt ceiling fight will be that damaging . I dont think it will be that damaging. I remember distinctly in 1995 when the government had a shutdown in novemberdecember of that year and yet in the Fourth Quarter and First Quarter of 1996, stock returns in those two quarters combined were up 11 . Bond returns were positive 2 to 3 . If youre taking the kids to Yellowstone National posh, its an inconvenience. If youre a stock investor, its going to come back to Interest Rates, corporate profits and inflation. Thats whats going to drive the market, not the government. Mike thompson sitting next to me. Do you think were going to look back at this whole episode and if we didnt buy on the dip kick ourselves . I think theres a chance of that, yeah. I think that the market is getting desensitized to these manufactured problems coming out of washington. To be honest with you, i think unless this goes on for a long, long time, i dont think it really impacts consumer psychology. Therefore, wont hurt retail sales and the underpinnings of an economy that continues to move forward. Michael, is all of this just whistling past the graveyard . Im not sure what that means. In other words, are people looking past this michael, just to be clear. Look, are people actually in danger of looking past what could potentially be an extremely serious event either tonight or later on in the month if we breach the debt ceiling . I dont think so. I think that most investors are desensitized to the ridiculousness that were seeing play out in washington. I dont think theres going to be a longterm impact on the equity markets. I think scott is right, this is a buy on a dip opportunity not just in the United States but also in europe because europe has been selling off based on this as well. I also think, and im sure rick has some insight on this, that it might actually be positive for treasuries. There might be some sort of sentiment that perhaps this will negatively impact gdp. You may see treasury yields fall a bit as investors are more concerned about what the psychological impact of a shutdown might be. Rick, chime in here. Whats your view on all thats taking place and the impact it could all have on the markets, whether its here in new york or up in chicago or wherever you happen to be trading . You know, i think the fixed income markets, lets just look. Right now whether youre looking at twos, fives, tens or 30s, each one is one basis point than it closed on friday. And remember, this is a somewhat important rebalancing day in terms of the last day of the quarter so the treasury market seems pretty focused. If you looked this morning when we had the better than expected chicago, the bond market reacted as one would expect, some sellings and treasury pushing up yields. Many of the dynamics in place for treasuries and the dollar index seem to be more tied to the first friday of every months employment report and fed meetings. No matter how this turns out in d. C. , no matter whose graveyard youre more concerned with whistling past, whether its the longterm fiscal situation, whether its onesixth of the economy in terms of the Affordable Care act, theres many points of view on this. I think the treasury has it right. These shortterm issues really are just little pieces of a bigger issue that will continue to gnaw at us and affect for the big novembers like 2014 and 2016. Lets say theres a 13th hour deal, the government shuts down a short period of time. What happens tomorrow if its only a short period of time . I dont suspect well see huge volatility no matter what the outcome is at this point, at this pointing. The debt ceiling issues may be bigger fish to fry. As one emailer sent me today, by shutting down the government, we will be pushing forward the amount of days before we touch the debt ceiling limit. Rick, thats a point a couple of people have tried to make but i dont think a couple billion makes too much difference on that front. I want to circle back, david, to you and remind people theres a lot of Different Things going on today. Weve had to digest european politics over the weekend, it is the last day. Quarter. Is this really all about whats happening in washington . Today it is. Unquestionably the issue with the debt ceiling is whats driving the market today but i think the market is smart enough to realize that 30 years of history says that 90 , 90 of stock returns have come over the last 30 to 40 years when congress is out of session. Thats a pretty big proof statement to me that says that this will eventually be a nonevent. Youre right, its whats going on with valuations, which are positive, Interest Rates are positive, fed policy is positive. The economy is not growing fast enough, but it is grudgingly improving. Those are all backdrops that i want to be net positive and overweighted in stocks. David, thanks so much. My pleasure. Also thanks to michael, mike and Rick Santelli today. 50 minutes to go before we close it up today. Dow jones down. Final trading day of this quarter. The backdrop going on in d. C. And whether well actually have a shutdown to this government or not. A lot of people waking up, realizing that theyre nonessential and staying home. Up next, we go live to the home state of one of the possible shutdowns most polarizing figures, senator ted cruz. We want to know what people in texas have to say about the impending shutdown and how one of their two senators is handling all of it. Cocacola is no longer considered the most valuable brand in the world. Stay tuned and well tell you which company knocked it out of the lead and why more changes could be in store, thanks to one rapidly growing sector. Customer erin swenson ordered shoes from us online but they didnt fit. Customers not happy, im not happy. Sales go down, im not happy. Merch comes back, im not happy. Use ups. They make returns easy. Unhappy customer becomes happy customer. Then, repeat customer. Easy returns, im happy. Repeat customers, im happy. Sales go up, im happy. I ordered another pair. Im happy. both im happy. Im happy. Happy. Happy. Happy. Happy. Happy happy. I love logistics. Plays a key role throughout our lives. One a day mens 50 is a complete multivitamin designed for mens Health Concerns as we age. With 7 antioxidants to support cell health. One a day mens 50 . With 7 antioxidants to support cell health. 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. Welcome back. Senator ted cruz becoming the face of the republicans position in the budget battle with his 21hour pseudofilibuster. So how are his actions playing in his home state of texas . Scott is there in dallas with that angle of the d. C. Drama. Scottie . Reporter hey, scott. As you know well, texas is an area with a lot of different cross currents. This is a state that has a great deal of federal money coming here, a lot of federal installations, but as you said its also the home state of senator ted cruz, who in many ways has become the public face of this battle over obama care, government funding and so on. And so a lot of people are saying more power to him. They like what hes doing. Theres no Empirical Data on that yet, but people are soon going to have the depth of their convictions tested. Because if you look at payments to federal contractors, right there at the top of the list, 41. 5 billion in 2011 to Lockheed Martin, and a lot of Lockheed Martins work is in west ft. Worth, texas, not far from here where theyre building the f35 fighter and there are a lot of businesses who rely on those Lockheed Martin employees, including cals top shop, which is a small Metal Fabrication shop. They do some work for Lockheed Martin but also auto body work for Lockheed Martin employees. The owner of that business says that if this shutdown if there is a shutdown and it goes on for a while, hes definitely concerned. Im kind of fretful of the coming days and how long the government will be shut down. I know it will run by itself for a week or two, but will it be longer than that . If it is, then yeah, we could be affected real bad. Reporter but, cal dapper says he supports whats going on now on the republican side. He supports senator ted cruz because one thing that he does not like is obama care. Ted cruzs most recent Approval Rating was figured back in march, so before all of this came about. That was about 39 , not bad for a newly elected senator. Well see how things change as this all plays out. Scott, kelly. Scott, wonder if green eggs and ham will factor into the Approval Rating. I guess well have to wait and see. With us now two of the people who can avert a shutdown. Joining us from capitol hill, representative sandra levin, a democrat from michigan, and representative tim huelskamp, representative from kansas. You consider yourself a member of the tea party wing, no . I certainly do. Ive been a longtime conservative activist, long before i came to congress. In that case do you feel as though it is you and your colleagues who are driving the conversation here . Do you feel as though the weight of the nation is upon you to come to some agreement with the rest of the house to get the government up and running tomorrow . Well, theres a strong republican position in the house and almost as strong a republican position in the senate. It just reflects what were hearing from the American People. Its overwhelming, they dont like obama care. Were just doing what they are asking us to do to push back, keep the government open but stop obama care. I think with all due respect, congressman, they dislike the thought of a shutdown more so than they do disliking obama care. I think thats been clear from any of the polling. I think your leader in the house of representatives, would probably agree with that notion. Well, we have said for almost three to four years of how bad obama care is. Im not sure what the latest polls are showing, but the one that matters to most members of congress are what their constituents are saying. Theyre very clear. People are losing their jobs, they are not getting hired. Theyre going from full time to parttime. Plus its going to blow a hole in the deficit. We have to look at all of that when were looking at the crisis we have in washington. Representative levin, you have been through a shutdown before back in the 90s. How would you compare that experience with what is looming tonight . I think were at a very dangerous position. You know, its very clear, if the speaker puts the senate bill, a clean government funding bill up for a vote in the house, it will pass. It will pass. And thats why the republicans in the house so far have been afraid to put it up. So i say to the speaker and say to my colleague here, lets have a vote, bring it up before the house of representatives, the clean bill that came over from the senate, and lets see what happens. Thats the only way to avoid a shutdown. And if the speaker doesnt bring the bill up, a shutdown is going to result. I was looking at the figures, for example, as to day care. Two million kids are going to be in jeopardy of losing their day care if we shut down. Weve already seen some impact on the stock market. Youve reported it. Right. It could become worse. We should not have a shutdown. Let us vote on a bill that passed the senate. It will pass. You can vote against it but let us have a vote so i and some rips an democrats can vote for it. Congressman huelscamp, are you prepared to shut down the government if you cant get either a delay in the implementation of obama care, the medical device tax or anything of the like . Will you vote to shut down the government if thats what it takes to win your position, your point of view . Heres our position. Well Fund Everything but obama care. And harry reid with the vote he orchestrated today, they refused to allow amendments, they refused to allow an appropriations bill to the floor. Its been four year since harry reid let an appropriations bill come to the floor for a full debate. Its very clear he wants a shutdown. Were willing to send him everything except obama care, which is unpopular. Senator reid and mr. Obama, its not ready for primetime. So if a delay of obama care is not part of this, youre telling me and our viewers and all of the constituents out there who are watching this that you in fact are willing to vote to shut down the government . I believe well have another opportunity for harry reid to keep the government open. But when president obama refuses to even negotiate, he wont come off the golf course and join the debate, these are the things that might happen. The house is a very clear position. Let the Senate Debate and have a full accounting of the budget and the appropriations. We dont have to shut the government down. Youve been asked a straight question and the answer is . Answer it straight. If you dont get your way, if obama care isnt defunded, youre going to vote no, im going to vote yes. And my request is, and this is what the American People by a clear majority want, bring the senate bill up for a vote in the house today. Give us a chance to vote yes or no. You can vote no. The American People do object want obama care. But have a vote so you can vote no and i can vote yes with some republicans and with most democrats. Representative levin. Thats what democracy is all about. Representative, even if you vote no, youre in the minority on this. Im going to vote yes for the senate bill. Im not in the minority. No, no. I will vote yes on the senate bill and so it will bass. Are you willing to shut the government down for your position . My position is lets have a vote on the senate bill. Your position is to shut the government down unless you get obama care. Its the opposite. Obama care is going into effect tomorrow. Not for big businesses, not for labor unions. Congressman levin, thats where i wanted my next question to go. It does go into effect tomorrow, the exchanges are expected to open. What about the argument that maybe we should delay the kbli takes because the exchanges are not ready to open, theyre fraught with problems, whether its glitches trying to figure out exactly what the rates are going to be, thats an issue. How about that side of the argument . Ill tell you whats happening in michigan and in other states. It will open tomorrow. Its ready to be opened. There are some problems, there are usually with large new problems, but this is ready to be implemented and the people of this country want us not to shut down the government over this argument. Mr. Huelscamp will vote to shut down the government if he doesnt get his way on defunding obama care. I say lets proceed. Give us a vote on the floor of the house today, mr. Speaker. Give us a vote. If you bring it out, it will pass. An thats why there are many republicans essentially in the conference who are holding it over the head of the i just came from a conference and that was not the debate in the republican conference. Thats what we heard. The American People i dont think really care if washington slows down tomorrow. Most federal employees, 60 will still be on the job. What most people see is the federal government will still be working. I admit the panda cam will not be in action. Lois lernor will still get her pension. Dont change the subject. Its nod pandas. Maybe you can stop looking past one another and speak directly to each other. Maybe thats part of the problem. Id like to do that. And what i want to do on the floor of the house this afternoon is to bring up the bill so you and i can debate it and well have a yes or no vote. We will have a vote later today. The congressman will have his opportunity to vote to shut down the government unless he gets obama care. But until the president and harry reid actually say were willing to sit down and negotiate, when you hear the president of the United States accusing the political opponents of being suicide bombers, you know theyre not serious. When the president is out playing golf instead of coming to the table, that is ridiculous. Its time to negotiate and sit down like grownups. Were going to leave it there. Im sorry we still have ten hours to do it. I know we have time to get it done, scott, but it scedoesnt m all that promising. Congressman levin, thats indisputable, the markets are watching closely. Gentlemen, thanks to you both. We have a dow thats down nearly 130 points here with 35 minutes to go before we close it up. This shutdown is looming. Thats right. The Defense Industry in particular is bracing for the impact of a Government Shutdown. Coming up well hear from one leader with how this could impact his companies. Apple dethroned coke as the most valuable brand but which is the more valuable stock for your portfolio . Well debate that when the closing bell continues. The most Free Research reports, customizable charts, powerful screening tools, and guaranteed 1second trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. At bny mellon, our business is investments. Managing them, moving them, making them work. We oversee 20 of the worlds financial assets. And that gives us scale and insight no one else has. Investment management combined with investment servicing. Bringing the power of investments to peoples lives. Invested in the world. Bny mellon. Welcome back. Cocacolas reign as the worlds most valuable brand has finally come to an end. Dominic chu tells us who has dethroned coke. Cocacola is out. Soda is giving way to iphones and it pads. Thats what Brand Marketing experts at interbrand said in their latest study. The most valuable brand in the world is apple. Google is number two and cocacola slipped to the number three spot. We wanted to know who the biggest movers in brand value. So bad news first. The three biggest decliners in terms of brand value. Number three, nintendo, down 14 in value. Number two is a Financial Services giant, morgan stanley, down 21 in brand value from last year. And the biggest decline in brand value between last year and this year belongs to nokia, which just recently sold its hand set business to microsoft. Its brand value fell 65 . So what about the good news, which brands saw the biggest gains . Number three, prada, up 30 since last year. Number two is web giant google up 34 . And the number one spot goes to social networking giant facebook, whose brand value has increased by 43 just since last year. So those six stocks are where the momentum is. As for apple and cocacola, give interbrands 98 billion estimate of apples brand value, it would be about 23 of apples total market value in todays terms. Meanwhile, with cocacolas 79 billion brand value, it would be nearly half of cocacolas total value as a company in terms of market cap. So kelly, scott, a little food and drink, of course, for thought. Back over for you. Thank you very much for that. If apple is a more valuable brand as of now, fine. The question is which company could be the better investment. That is if you bought it right now. Joining us is peter sorentino, gary bradshaw. Gentlemen, thanks to you both. Peter, what do you think . Well, right now id have to be an apple buyer. The stock is trading at less than one times its pd to growth rate. They have enormous cash flow. And people line up around the block before dawn to buy their product. Thats the kind of company id like to own. Growth has been the step child this year while value took it to them. I think its time for that to reverse. Apple is down a third from its high, so to me it looks like a pretty decent entry point in here. Gary, why do you think cocacola is the better bet . Well, its hard to argue at the moment that coke is going to outperform apple in the short term. But at the hodges Equity Income fund, cocacola is still a core holding. And below 38, we like the stock. It has a 2. 95 dividend that its grown for 51 straight years. They just raised it 10 . And cokes earnings around the globe continue to grow. Theyll earn 215 this year, 235 next week. We think you can put a 20 multiple on 2014 earnings and get coke back to 45, 46 a share. They just split their stock two for one earlier in the year. They continue to gain market share. And we look at coke as a core holding and slow growth for both income and total returns, so more of a total return vehicle than a real fast grower. But looking at it, we do like coke. All right, guys. Thanks so much. Peter and gary, thanks for being here. Thank you for having us. Coming up well have much more on apple. Ceo tim cook meeting with carl icahn today. But is icahns involvement with this company good or bad for the stock . You wont believe what he has to say on that very topic. And the dow, the s p 500 were keeping an eye on all the markets. Were looking at 139 points in this selloff. We have weakened a little bit as we continue to follow news out of washington this afternoon. Im not sure people took much encouragement from the back and forth we just heard. As the countdown to the shutdown grows closer, the stock market losses are getting a little bigger. Up next well hear from somebody who says a shutdown could end up being a great buying opportunity for investors. Hell explain why history is on his side when we come back. A nfident retirement. Those dreams, theres just no way were going to let them die. Like they helped millions of others. By listening. Planning. Working one on one. 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[ female announcer ] come in to find the right credit options for your needs. Because when people talk, great things happen. Welcome back. The drama continues to build on capitol hill as that march towards the Government Shutdown is ongoing. Right there behind that closed door, gop members are in conference. They have been there for about an hour. No doubt plotting strategy among their members. This comes after the Senate Approved that clean cr to keep the government operating, sends it back now to the house so its anybodys guess as to what is being discussed and what may happen, kelly, from here throughout the rest of the evening. All we can say is we started out with the dow down 90 points and now were down 150 points, so certain that no one down here expects much to come out of that conference. Although we dont know. Theres no staffers in the room. This is purely members who are discussing their strategy. Do they advance what bill do they eventually advance in the house. Thats where all the drama continues to build, right there behind that closed door that were seeing in the nations capital. We should mention as well its not just the attention of the u. S. Here, scott, its the worlds attention. Pretty much every note ive seen from everyone in london, and singapore and hong kong is much attuned to this process as we are here as well. So the countdown goes on. Also the countdown to the end of the quarter goes on. Bob, were less than a half hour away until the quarter ends on wall street. And still up for the quarter. Three to one declining to advancing stocks today. Look at the dow industrials. Were near the lows for the day but weve been down 100 to 150 points just about the entire day. Put up the Dow Jones Industrial average. Volume is still very much on the light side. I know theres still not a lot of panic down here. I want to put up the vicks. Thats whats going on. If you look at some of the sectors today, most of the bigger sectors are down. Heres a big question, guys. What happens to ipos if the government shuts down . This is a big week for ipos. Burlington stores is pricing tomorrow, remax is pricing tomorrow, empire realty, theyre pricing, potbelly pricing thursday. The s. E. C. Has to sign off on the price in terms of any ipo before they begin trading so what actually happens. I asked the s. E. C. And this is the response i got. If the s. E. C. Had to shut down, we would not be able to approve ipos. But per our website, we are remaining open because we have carryover funds. Its not clear, guys, how much carryover funds they have or for how long they might be able to stay open. Again, another issue is that twitter ipo. Not clear whether theyd get that out this week or get the s1 as well. Back to you guys. Bob, thank you much, sir. The market seems to be betting the shutdown might be something bigger, might lead to something bigger. Perhaps it will bleed into the debt ceiling fight. Joining us now Jenna Godfrey and jim mcdonald from new edge. Both are cnbc contributors. Nice to see you both. Thank you very much. Jemma, whats the view over in london about how this is playing out and what the Market Reaction may be and how we should maneuver it . Well, policy missteps are the biggest risk to markets at the moment and thats because of where we are economically, where the government is financially and also where markets are. So great is still fraji ii i fragile. Secondly if you look where we are financially, the debt ceiling is looming. This uncertainty, and this is the main crux of why people are worried, the uncertainty will restrain businesses investment and consumer spending. And finally, markets have already rallied quite far quite fast and the under the radar risk, which really hasnt got a lot of sorry to jump in just for one second if you could hold that thought. Weve got some breaking news out of washington. In fact at this moment we want to get straight out to john harwood. Reporter ive just communicated with a House Republican whos been in that meeting where republicans have been considering their next step on a continuing resolution and asked whether or not theres any chance that john boehner will put a clean cr on the floor of the house tonight to avert a shutdown. This has always been the possibility. Oneword answer i got from this member is no. If that is correct, that means that we are headed for a shutdown at midnight tonight. Again, weve got some hours to go, more than eight hours to go until then. This is a fastmoving situation but as of now it appears there is no chance john boehner will put a clean cr on the floor of the house tonight. John harwood, maybe thats why the markets i guess in the last 20 minutes have started to take a little bit more of a turn downward. Dow is down 150 so the markets are watching every move closely, john, to see how all of this is eventually going to play out. Reporter yes, and remember if we have a shutdown, that doesnt mean it will be a long shutdown. We dont know. And weve got the debt crisis coming up just two weeks after this one. But it does look more and more likely. I have been one of the last and most optimistic people that they would work it out since Republican Leaders have been wanting to avoid this. It does not appear at this stage as least as best as i can tell that they can do that. Thats significant news, john. Thank you very much as we keep an eye on the market here again at session lows. Larry, you raised this point earlier, that even as we look toward the Government Shutdown, perhaps this makes the debt ceiling on the 17th more doable. At least thats the view that some have taken here. Youre saying its going to be the opposite. Not only are we going to get a shutdown, but this will make the debt ceiling issue more of a problem . Well, no, i think its i think this creates more pressure to get something done on the debt ceiling. If you think over the last coming into september, the uncertainties, the yellin summer thing is gone, the fed meeting gone, german elections gone, so were coming up out of the five big uncertaintieuncertainties, o the last two. I think if we shut down tonight, which we probably will, that puts tremendous pressure over the next six days to get something done. If the market sells off into that and then rallies into the eventual deal, it will probably come around the 15th. Larry, are you telling our viewers that they should be buying this selloff, which does appear to be intensifying . It certainly seems as if were getting a shutdown barring a lastminute deal. Well, if you remember the market bottomed november 16th and then we rallied into a tede toward the year end. So theres no question the market rally will start before the deal. The only time were going to get the deal really, the big deal, and that is on the debt ceiling, that will be between the 15th and the 17th. So i think the market bottoms here sometime in the next two or three days. I think we may have 2 more down on the bottom so i think were down about 3 from the highs. And i think once you get down around 5 , i think you start you start to buy some fear here. Jemma, what do you think makes a bigger move once this thing is all said and done . Is there a bigger selloff in treasuries or a bigger buy in equities . The biggest risk is in equities as opposed to treasuries. What people are concerned about is a potential downgrade in u. S. Debt if there are troubles in negotiating the debt ceiling. The reason there was a downgrade last time was, first of all, because of the impasse and secondly the lack of a plan. If they pretend and extend and if they do get over this next hurdle, will there be a clear plan in place. The problem is with a lack of alternatives out there, treasuries are unlikely to be hit as much. Its the equity markets that will feel the bigger force. Its very hard to catch a falling knife. The way that were investing is by looking for companies that have purchasing power and, therefore, more protected from any feelings that you may get in terms of consumer sent meant and can protect their margins. Gemma, great point. John harwood, thank you so much for the reporting as we keep an eye on markets here, scott. One thing is clear, investors have seen this movie before. They dont like this one any better than the last one. Dow is down 150 with 15 minutes to go before we close it up. Could wall street force a d. C. Deal . Coming up if todays selloff gets worse, will lawmakers get nervous and come to their cen s senses. Well ask d. C. Insiders if theyre paying attention to whats going on at wall street. Protesters taking aim at jpmorgans jamie dimon. What should appear, he should go to jail, but hes not, we all know that. There they are. And believe it or not, they even attempted to make a citizens arrest of mr. Dimon. Coming up, one of the rallys organizers explains what they want and why theyre going to such extremes. Bny mellon combines Investment Management investment servicing, giving us unique insights which help us attract the industrys brightest minds who create powerful strategies for a countrys investments which are used to build new schools to build more bright minds. Invested in the world. Bny mellon. Speaker of the house john boehner has just stepped to the podium. We believe everyone should be treated fairly so were going to move here this the next several hours to take the senate bill, add to it a oneyear delay of the individual mandate on the American People and get rid of the exemption for members of congress. Its a matter of fairness for all americans. The house is going to take a position today reflecting one very fundamental principle that our country stands for. No special treatment for anyone. As the speaker indicated, this administration, this president has provided special treatment and carveouts and exceptions under obama care for big business, for special interests, and yes, it has provided a carveout for members of congress. Our position is very clear. No special treatment for anyone. We all live under the laws equally applied. Very short and simple today. Well pass a bill that funds government. So the question will rest with harry reid, just two questions. Before eric cantor was speaker of the house of representativ representatives, john boehner, asking that they will move ahead asking for a oneyear delay of obama care and remove exemptions of members of congress saying no one deserves special treatment. Digging in is what republicans are really doing because now the real showdown is going to begin. You can hear the rhetoric from both of those gentlemen there, not only the speaker but eric cantor as well. It certainly seems as if a Government Shutdown is well on its track some eight hours away and change. And it supports the reporting that we just heard from john harwood who said he did not hear there was going to be a vote on the clean cr continuing resolution bill tonight. It does not look like thats happening. Markets already priced in this news. Were bouncing a little off the lows. Lets look at what the nasdaq has been doing as well. Its far and away the best performer of the major averages this quarter. Sheila breaks it down for us. Hey, sheila. Today even the nasdaq has not been immune from some of the pressure the overall market is feeling but overall for the Third Quarter it is a feather in the cap for the tech heavy index. In fact the nasdaq is up 11 in the Third Quarter so handily outperforming the s p and Dow Jones Industrial average. Looking at some of the big winners, number one and number two, names we talk about all the time, facebook and tesla really leading the way this quarter. Facebook up over 100 . Both stocks in fact today even on a down day hitting new record highs. Yahoo is another big winner, up 30 , really on the back of this impending alibaba ipo. Biotech, again one of the big leaders leading the nasdaq to gains. In fact again two names hitting new highs today as well. I even have a retail name for you and that is sears. Sears is up 40 for the Third Quarter here at the nasdaq. Yes, theres a lot of technical issues with the stock. You can talk about its thin float, its high short sbrks but baker Street Capital did come out talking about the real estate value in sears. On the downside, on the losing end of this you have monster beverage. Expedia, which is interesting, because a lot of the Online Travel names have actually been performing quite well. Expedia has been left behind. Biggest losers in the nasdaq is barbie. Mattel is down 7 for the quarter, some weak earnings and concerns kids arent playing with dolls and toys anymore. There is perhaps a turnaround for mattel coming up this holiday season. Mattel has the most toys on the hottest toys for christmas list, so maybe thats going to help things out. I dont know about you, kelly, but i always loved my barbies so maybe kids will come back with them. I was never actually the biggest fan but im weird like that. Sheila, thanks very much as we head into the important holiday season. Back to important news. Just about ten minutes left to go before the closing bell. The dow is down 140 points. The s. E. C. Reiterating it can stay open for a couple of weeks in the case of a shutdown tonight. Fears of that shutdown certainly spooking investors, or is it just an excuse to take some profits . Chad morganlander says todays selling is just the start of a correcting stage. That bears call when we come back on the bell. S just thatt you know hidden things. Ok, whys that . Well uhhh. Hey daddy, whats your job . Daddys a uhh florist. Are you really a florist . Dad, why are there shovels in the trunk . Theres no shovels in my trunk. I see shovels. You dont see no shovels. Just am. Well, its true. At ally there are no hidden fees. Not one. Thats nice. No hidden fees, no worries. Ally bank. Your money needs an ally. Hard to believe were in the final stretch, the final ten minutes of trading for the month and the quarter. Joining us now, Michael Crofton and chad morganlander. Chad, to you first, buying opportunity. Is this a selloff . I think were in a shortterm trading correction here, maybe 3 to 5 on the downside and then well be looking for seams of opportunity. I think ultimately we have to focus our attention on earnings as well as what the Federal Reserve is going to do and when theyre going to do it. So what youre telling me is that this move in the market weve seen over the last several days is no different from any of those another mini corrections that weve seen in the last several months . Right. Youre getting a mini correction. I think people are a little jittery about the 17th going into october. But nonetheless, how is it going to affect the broader economy, and also what are the negotiations when they do pan ou, how is that going to be a drag on the u. S. Economy. We expect perhaps a half a percentage point drag on the u. S. Economy. Michael, you seem to be in the camp its not insubstantial who actually seem to want a shutdown and think it will be a good thing. I think short term is probably is a good thing. Government has gotten way too big and somebody has to put their foot down at some point. Laying a lot of blame. What are you, 100 in cash . No, no, im fully invested and im going to use this as a buying opportunity. The three things in the markets favor, we have historically low Interest Rates, we have Balance Sheets that are in the best shape they have ever been in almost the history of Corporate America of the and three, europe, china, the middle east, maybe china this morning had a little hiccup. Do you want a shutdown because you can buy stocks more cheaply . I think its the right thing to do and you have to think about the skpconstituents forci these guys hands. The republicans are looking at a midterm election. They have got tea parties lined up to fight all the incumbents. I dont get it, though. Youre the first guy on wall street that ive heard say that a Government Shutdown is the right thing to do and its good. Its only going to be short term. The market will go through this like nothing. You probably have seen what the market will do if theres a shutdown for a day or two. Basically, the president has lost the leadership role here. He is supposed to be sitting down with congress and the senate to negotiate a settlement. Youre making a political speech here. Not at all. Youre supposed to be telling me what we should do in the market environment. You should be buying into this market. Any weakness you should buy. You should buy technology, industrials, financials and energy. I think the market is poised to go a lot higher for the reasons i mentioned. Low Interest Rates, strong Balance Sheets and the macro problems easing. Chad, i will say this, yes, were down 150 but its not worse. Is that because, a, people thinks this makes an agreement on the debt ceiling more likely or, b, they dont think the impact of breaching that would be that big of a deal . I think theyre going to come in with an agreement the next couple of days. We all know that. Theyll agree to some type of settlement. The real ultimate and important thing to focus your attention on is away from this and more towards earnings, the economy as well as the Federal Reserve. And that ultimately is whats going to drive the markets either higher or lower. Our expectations for 2014, gdp grows at 2 for s p earnings, 110. So were a little more cautious with valuation and growth. Nonetheless, you can find seams of opportunity to buy at this point. Chad, thanks. Michael thanks as well. Weve got a lot of news to get to on the other side of this quick break. Well have the countdown. Join us. Make a deal with me, kid, and you can have the car and everything that goes along with it. 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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. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. Breaking news. Lets go down to capitol hill and eamon. House republicans have emerged from their meeting up here on capitol hill. They say theyre going to send over a bill to the senate side which includes two obama care related changes. They say theyre going to dare the senate to not pass that bill and engage in a Government Shutdown. If they do that, the senate will be responsible for that government shut down the republicans say. They also say they think they might be able to get that done as soon as tonight. But one of the members of the Congress Told me tonight, he said take a nap. This is going to be a very late night, guys. No doubt about that. Thanks so much. Lets continue our conversation up here and whats happening in the market. We do have about 1. 5 minutes to go and clearly, kelly, wall street does not like whats taking place in washington, d. C. , as we march towards this shutdown. The selling pressure is coming off a little bit, thats echoed in what we see here. We were down about 150 points. Just as we were getting the news from our john harwood that there likely wouldnt be a bill to avert the shutdown, scott, now a little bit of a rebound. Again, though, jitters are the consistent theme of the day. Lets not forget this is the final trading day of what has been a really good quarter on wall street. Dont forget the nasdaq is up 11 this quarter, the s p 500 is up 5 . The best performer in the quarter is netflix helping out the nasdaq for certain. The worst, no big surprise given how its traded lately especially, and thats jcp, j. C. Penney. As we head into september all of the event on the horizon, from the german elections to what was happening in washington, weve not only navigated the month but the quarter through all of that. Well continue to follow the story of all of these latebreaking developments in washington, d. C. , as it relates to the market. What ultimately will happen in d. C. Throughout the wee hours of the morning, if the government does shut down at government, some eight hours from now. [ bell ringing ] all right. And with that, welcome to the closing bell. Im kelly evans in for maria bartiromo. And im scott wapner. We are eight hours away from whats looking like a Government Shutdown. Heres how were finishing a pretty bad day on the street. The dow closing off its lows but still a tripledigit loss, a nearly 1 decline for the dow, down 125. The nasdaq wrapping up a great quarter in which it rose 11 , giving just a smidge of that back today in a tenpoint decline. Theres the s p up 5 in the quarter, down about tw

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