After the bell is happening right now, everybody. Cheryl lets look at todays market action. Ill tell you we have a lot going on. Lets bring in yudee change. Mark newton on the floor of the new york stock exchange. Alan nubbing man down on the nyse. Were watching volatility david was speaking about. You have at least on the equity side we didnt react there was no positive reaction on the equity side to this news report, that they are reporting that the husband republicans will take a deal to the floor tonight . Well it may be the sell the fact type action. We moved up 4 over last couple days. You have to remember, s p yesterday was only 1 of alltime highs. Nasdaq made new decade highs. You might see people taking chips off the table just in case there are last minute hiccups. People seem more confident. Were down only hal on the day the vix has a little bit of action in it but it is still significantly lower than it was last week. Last week we had a reversal where it made new highs and closed lower on the week that was a sign things are coming together. David yudee chang, are you a buyer or seller in this market and why . At this very second, im not doing anything but im a buyer this is all drama. Myself saying this shall pass. They will come to a resolution whether temporary or not. The market will move higher based on current Economic Conditions and based on favorable fed support of the market. Cheryl mark, i want to bring you in. Were actually, here we go again, as numbers settle, it always take as few moments, were down 133 points. Were closing at session lows. Why are we not seeing the reverse of this, mark, asking there was movement in washington the last 30 minutes . What is going on . You know the markets have been up four out of the last five days. It is natural to give a little back. Bottom line you see intraday swings on hopes deal will get done and on failure to get done we see a bit of a selloff. The market is acting pretty resiliently. Last 30 years when we had government shut downs lasted 10 days or greater, average pullback is 4 or 5 . If annthing were seeing reverse of that. The dow is up 4 or 500 points last few days. David mark, we do have intels numbers. Jo, what is it . Hey, david, thats right, intel numbers are in. Its a beat on eps and revenue coming in at 13. 5 billion, beating the 13. 6 billion that was estimated. Eps coming in at 58 cents a share which is a beat of 53 cents a share. Right now trading half a percent up in late trading. Looking a little more at the numbers, Third Quarter outlook is 13. 7 billion which would be increase on the Third Quarter result we have right now. Were also looking at net income, david, of 3 billion. David i want to go back to yudee chang, because yudee, youve done something interesting. You looked at earnings in the past and you found an interesting correlation between earnings and what happens with the stock price later on. It might be better if they missed expectations right . No doubt about it, dave, especially on intel. They have have an inverse relationship, believe it or not out of past 32 earnings beats of intel. That is eight years of it. The stock falling the next 30 days, tend to be down. 7 of a percent. But over the past 23 earnings misses over next 30 days, intel on average was up about david fine point on that. Innel the stock actually does better when it misses expectations, correct . Over the next 30day basis, yes. Cheryl at least for now the bid and ask, it is trending up a little bit in the aftermarket. Well have the chief Financial Officer coming up later on in the show. Alan, well go back to you on something else. Were waiting for yahoo earnings and we may have to interrupt. For the s p 500, more than 60 were looking outlooks for the Third Quarter numbers revised lower. Of course they are going to beat. Well, that is what weve been doing every quarter after quarter. We talk so much about all these criseses and all these selfinflicted crises in washington and politics, but look at the tape. You have to understand the resiliency of the market. We do this every quarter with lowered expectations we overachieve and make new highs. Im not smart enough to be the guy that picks that is not going to happen. I look markets continue. I like yahoo to hold the 30 level, that is the target between 10 and 20 for four years. Look at intel, you can lien on 22. 5, that is Halfway Point of this year. Look for buying against serious support levels for trend that continue to the upside. Cheryl yudee, i want to go back intel numbers. Investors are settling looking at numbers and intel at this point is popping up. Were seeing a little bit of a boost on it. It is at 23. 90. That is the ask. The bid, 23. 85. Were seeing a bit of a positive reaction of the looks like were getting more numbers come out as well . Yeah, on overall basis, intel is still behind the curve. The good news for intel the socalled contraction is slowing down. That is the Positive Side of it but theyre just behind of curve. Pc sales are just not that good. David i have to interrupt because we do have the yahoo numbers. Jo ling, go ahead. David, thats right, we have yahoo numbers. A beat on eps, 34 Cents Per Share for estimate the 33 Cents Per Share. The revenue came in at 1. 14 billion. 1. 08 billion is the extac number, which is beat on 1. 0billion. Shares are up 4 right now in late trading, david. David once again good numbers coming out on yahoo by the way a little later on well have specifics what is happening from yahoo from a top analyst who will look at alibaba and all nair numbers. Mark newton, take it back to washington, the question of a default, we heard the word default used so casually next couple days. U. S. Default only happens if the United States treasury stops paying bondholders. That is a default. No other definition of a default. Is there any expectation that that would happen . I dont really think its going to happen, honestly, david. I think the two siies both want to see things resolved. There is lot of theater that typically happens before these things. There are a lot of things fed can do, treasury to prevent default from haing. I dont think were quite there yet. If anybody they can prioritize different payments and makes sure everything gets resolves. Might be another couple days of drama. Everybody is questioning the 17th that is the true day or gets extended to end of the month that is the real key. You see continued strength . Technology, recent earnings, industrials, energy. These sectors simply havent broken whereas the defensive sectors are weak. That hurt some of the utilities and builders and this and that. Those continue to be sectors that avoid. Cheryl mark, thanks for bringing up technology. I want to two back to yudee on something as were parsing through yahoo numbers. Paid clicks up 3 . Yahoo is making inroads. Alibaba, which is crucial, yudee. Theyre seeing advancement when it comes to mobile and paid clicks. This seems to be a positive for yahoo but you tell me . Absolutely. That was the critical two things. One it is all about mobile ads, right . That is what people were looking at that will probably advance the stock. What is alibaba, they have a what, 28 stake in it. If they come out with ipo 6 billions that would will add a lot of valuation to the yahoo stock. Youre absolutely right. It is all about mobile ads and alibaba. Cheryl the stock is up 5 . Congratulations to yudee as he called that one. David alan what is happening with the cme as were es closing out there. It seems kind of quiet. Best thing to do is close risk. You dont know what will happen. Put in a stoploss and order execute your trading plans. Number one thing i recommend to people make ure youre in strategy you can execute your trading plan just in case a worstcase scenario happens and you can exit. David very good advice. Alan, thank you very much. Yudee chang, always a pleasure. Mark newton, thanks so much for stepping up. More on yahoo after ceo marisa mayer reveals the internet giant Third Quarter earnings. Well dig into all the numbers for you. Find out what they have planned besides alibaba. We know they have a big chunk of this company doing well that will go pub, give them more cash but what are they doing at home . Well find out. Cheryl yahoo and intel results coming out as well a few moments ago. They did beat. Well talk to the chipmakers cfo, stacey smith about the report. David really . Stacey will be here . Cheryl he will also talk about the outlook. This is crucial the outlook for the next quarter. They are trying to make some inroads and get out of regular pc market and get into mobile. David our facebook question about the dead look inside the deadlock inside the beltway. If you had the ear f one ever those people in white house or congress right now what would you say . This is your chance to sound off to the people inside the beltway, no matter what side talking to, what would you tell them . We want to know. Well share that with you coming up at the end. Show. [ bell ringing, applause ] five tecstocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market ca. Of at least 50 blion. Arup 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 trading floor. Get realtime market scanning wherever you are with the mobile trader app. From tdmeritrade. Wow. Look at y. Ive always trd to give it my best shot. Thesdayim living with a higher risk of stroke due to ib, a type of irregular heartbeat, not caused by a heart valve problem. 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[ male announcer ] ask your docr today if eliquis is right for you. Beat by a penny of 34 cents which is estimate of 33 cents. When you look at revenue here, you will see 1. 14 billion for the actual versus estimate of 1. 408 billion. When you look at numbers, extac, it right in line. Its a meet, not a beat, not a miss. Right in line for revenue. Overall well continue to follow yahoo obviously alibabas ipo is expected to bring in a huge amount of cash for yahoo well continue to follow what the valuation is for alibaba in particular. But as we noted were watching earnings alert here for yahoo , after the bell as we have so many names. Walmart is making news. Intel and yahoo now as well. Back to you. David yahoo owns 24 of alibaba. Just to put it into context, just in one quarter, yahoo took in 1. 38 billion from that stake. This is huge money from alibaba. Thank you, nicole. Yahoo reporting Third Quarter earnings just moments ago. To break down the report, aaron kessler, Raymond James senior internet analyst. We mentioned alibaba how significant it was in dollar terms. Ex, alibaba, take alibaba doing, how is the rest of the news today . Revenues 1. 08 billion, revenues extack basis. You look at segments. Net display revenues was down 7 that is improvement from 11 in q. 2. That beat our number. Search is versus up 3 yearoveryear. One is negative, ebitda is lower end of the guidance range. 331 million ebitda. That is below the range of 330 to 350. Eps came in line as well. Relatively in line quarter. Stocks move on reports of alibaba that yahoo will reduce amount of shares it will sell when there is alibaba offering. Cheryl kkeping revenue coming in the door. That will help the company. Aaron, mobile, i ask you about the fact that they did see mobile clicks and ad clickthroughs, both the size of that rose. That also means revenue for the company. How small, how large, you tell me . Yeah. I think were still early on the mobile side but i think yahoo is clearly making investments there to make mobile and social bigger initiatives for yahoo that is definitely something to watch. Well look for more on the call as well as any additional engagement metrics on the call as well. David let me talk about the big fear, which is facebook and all other social networks develop all of the devices that yahoo has. Therefore people dont have to move to yahoo they could spend all the day on facebook, whatever it is. Is that a legitimate fear, that people at yahoo might have . So i think we have seen yahoo lose share couple years like social players like facebook as well as mobile given yahoo lagged on the mobile side. That said wereesaying it is not a zerosum game in social or mobile. They use facebook, twitter, tumblr. There are a lot of social apps. We think social is gaining share of the market. Why this point yahoo lost some share on its display revenues. Cheryl aaron, do you think there will be questions about acquisitions . We talked in the last hour of fox business about the tumblr and some of the smaller acquisitions. Is that going to be a focus still for analysts do you think or are we kind of done with that section . I think there i will will be focus if there is any large acquisitions to do. The hires yahoo is doing, wont make a big difference, additional recruiting hires. For additional large acquisitions we look for any updates on that. How is the new leader doing . So far on the, i mean theyre continuing to make the right invests i think. It is probably a little early to judge in terms of performance for the core business since were still kind of seeing declines in the display. David she is buyiig a lot of stuff though, isnt she, aaron . Some of it as we said. A lot of act waa hires. Not a lot of integrating people into the yahoo platform. David hold on a second, aaron. Akwa hires, what is that again. When you acquire a company, typically small company. You want employee base. David i see. Cheryl what about, they do have mail which is feebased, can be a feebased. Mail plus they charge for that and yahoo sports. Those are two things within the regular website even on mobile that could be good revenue drivers. What about those pieces of the business, do you think that will be a piece of the call and did you see numbers in the earnings released you were interested in . I would say on the mail, for instance, theyre taking down some of the payrolls there giving features they were charging for now for free. I think they want to compete with, make it more like google i think and i will prove some of the products but not necessarily charge them and monetize at some point through advertising. First part is engagement on yahoo second part comes the monetizaton. I dont think weve seen the monetizaton engine turn on yet. Cheryl theyre doing great when it comes to search traffic. They have other devices at least for now. Aaron kessler, Raymond James senior analyst. David it has come down afterhours significantly, yahoo people are piecing over looking at all the details not quite as excited about yahoo as at the beginning. She is marisa mayer. She is a young gun. Doing video chat with the earnings call. So it is facetoface. Intel is the other big story here, in the crosshairs of investors after its earnings beat. Well ask intel cfo stacey smith what he is seeing in the chipmakers next quarter. David with republicans and democrats struggling to bridge their differences on capitol hill we hhve our own debate coming up. Democratic congresswoman, Sheila Jacksonlee, republican congressman, morgan griffin. They have everything to gain in talking to you. You dont want to miss them coming right up. Shes always been able to brighten your day. Its just her way but ur erectile dysfunction that cou be a question of blood flow. 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Well, i think you can see in the Third Quarter the results of the actions that were taking to broaden our product portfolio. We had a pretty good quarter in q3 from top line as expected. We had a little good news to the margin. Underneath that you see we launched 4220 nan mow meter products ex nano products. We have multiple price points and multiple operating systems and that is the process were driving. What are the positive poonts, stacey . Your data center group, this part sells chips to Cloud Computing companies, the sales gained 12 . So a strong gain there. Is that where you think there will be growth in the next quarter and the next year . Is that part of your forecast . Absolutely. That was what we had expected a quarter ago and youre right, we saw a 12 year on year growth in the data center. Its our best quarter ever in that business. It was almost 3 billion of revenue, very profitable. What youre seeing there is all of these device, computing and connecting to the internet are driving the buildout of the Cloud Infrastructure and that is really propelling our business and as i think about q4 i would expect the growth rate actually accelerates. So i think were in a good position and bidding on it from here. David stacey, lets pull back a little bit. Youve been with the Companies Since the 80s. You and i both remember when andy grove was a Vice President at intel. When it had this atmosphere of creativity. It was a real laboratory, an exciting laboratory. Has it become a little stale or does it still have that sense of dynamism it did in the 80s . It very muchs that that sense of dynamism. We brought out 40 new products in the Third Quarter. I havent looked at statistics back to the 80s but my guess is that the most extensive quarter in terms of Product Launch weve ever had and those products from highest end server to two in 1s to ultrabooks to tablets and smartphones to internet things. We never had this broad of a market before. What is interesting and exciting right now just about everything is computing and connecting to the internet. That gives us almost limitless market to ship into. Cheryl what is analyst are excited about, q box. This is first consumer Product Launch in a decade. New york times reported you were pushing this back into 2014. Can you give us clarity on a launch date for the product . Be. Yeah. Im not going into too much detail for competitive reasons about the launch date. I will say that ive been playing with the product now for a few months and i think it is going to actually revolutionize how people consume tv. Key for us is going to be the content deals and then, working with partners in the industry to get to scale really fast but beyond that im not going to get into the actual launch date. David are the only time i had a fight with andy grove when he was pushing for government controls to keep some of the japanese chips out of the u. S. Market. Im a big free trader. We conflicted over that. Right now you have kind of a fight like that with apple trying to keep out some of samsung products. Does that concern you that we may be getting into a little bit of trade war here . You know, compared to whats going on in our u. S. Congress that is pretty low on my list of worries. I believe over time innovation wins. If companies are innovating, theyre bringing new solution to the market, you overall win in the marketplace and that is our strategy. Cheryl stacey smith, of course the chief Financial Officer of intel. Analysts are ready for you im certainly sure of that. Thank you for coming here first. We certainly appreciate your time. David true to staceys concern, here are democrats leaving their meetings with the white house, with the president in particular. Lets listen in. There is steny hoyer. We think is very damage, damaging to the United States of america and that is taking away from the president and the secretary of treasury the ability to manage the payment of our debts so that we remain a zero risk creditor. And so with that, let me yield to my friend, jim clyburn, assistant leader. Thank you, mr. Whip. The last hour has been very, very productive. I would hope the next several hours would be as such. I find it kind of interesting that much of the discussion weve been hearing for the last several weeks has been the fact that we can maintain the full faith and credit of the United States of america by prioritizing. Exactly how we address the debt. Now all of a sudden from what we are hearing, legislation is now being brought forward to take away the ability of the president and the secretary of treasury to manage our debt and deficits. That to us is just absolutely the worst possible thing that can be done. We are very interested in a clean, continuing resolution. A clean debt limit and we can supply a vast majority of democratic votes to get that done. Were hopeful that the speaker he will allow the legislation to come to the floor and we. We commit to him and American People, democrats will be solid with that effort. With that i on obamacare piece, how House Republicans are talking about consolidating the vitter amendment and including staff in that as well and something [inaudible] is this your statement about not having any democratic votes, does that stand if they shrink their demands to that vitter amendment, taking away Health Benefits of members, lawmakers and staff . What, let me just correct that. Let me reiterate. Were 48 hours, this is the 15th day of a shutdown where government workers have been precluded from serving those who are trying to get get veterans benefits, those who want to get on social security. Those who want tt go into our parks. We are two days from, according to the secretary of treasury not being able to manage our debt and stay a zero risk nation. Extraneous things the republicans are talking about do not serve our nation. What the leader and i are saying our members are prepared to cooperate fully and getting those two things done. Then we can talk about other things and but we need to move on those and we need to move on them now. Were hopeful that the speaker, were very pleased with what has happened in the Senate Working together nd in bipartisan way trying to work to an agreement. Im sorry that that bill hasnt been sent over to us but there will be time to talk about other matters once we get the government open, and pay our bills. Cheryl all right. So weve been listening of course to Democratic Leaders coming from the house. There is nancy pelosi as well. One other thing that steny hoyer did say i thought was interesting, david, these extraordinary measures, this is something that will not apppy with them but still up to Speaker Boehner to bring tonight to the house floor. They want a clean resolution but will they get it from Speaker Boehner. David you heard the term prioritizing payments in the Treasury Department. Treasury department in the capacity, the ability, the authority to prioritize payment. The question whether they would pay off bondholders so the market wouldnt go can bloom or whether they ould actually start to stiff some. Bondholders, for example the way gm bondholders were stiffed. That would be dangerous. Tensions rising on capitol hill as lawmakers go down to the right in the debt an budget showdown. Well bring in two reps, democratic congresswoman Sheila Jacksonlee and republican congressman. 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I use daily market commentary to improve my strategy. And every step of the way. E guides my learning i ke scottrades free, plus, their live webinars. Becaustheynow dont trade like everybody. Im with scottrade. announcer ranked highest in investor satisfactio with selfdirected services by j. D. Power and associates. David these debt and budget talks in the senate are on hold. You just heerd announcement from Democratic Leaders suggesting they may take extraordinary methods to allow the treasury secretary authority to prioritize the debt. Cheryl all of this is happening as we try to reach this deal on the debt ceiling. Now House Republicans are holding the cards. Lets bring in rich edson with the very latest. We just heard from pell pell and steny hoyer nancy pelosi. Rich, thoughts, feelings . Yeah, it is clear that3 democrats will not jump on board in the house with the latest plan republicans are pushing. That is why republicans need 211 members to get this through. Here is the latest proposal t would fund the government through december 16th. Would extend the debt limit to february 7th. February 7th would be the end end subsidies for obamacare for congressional staff, members of congress, some folks in the administration, president , Vice President , cabinet members and such. Does not include a repeal or delay of the medical device tax. This is an attempt by House Republicans to jam Senate Democrats as we get up to the december 11th deadline here or october 17th deadline here to accept this last final ditch effort theyre trying to get through the house. It is unclear if this will pass but they will try to get this on the house floor tonight and well follow it. David rich edson, thank you very much. Once again we have a couple of congresspeople coming in a minute or two to debate this. Cheryl a lot of questions on this one. With the debt ceiling deadline quickly approaching and partial Government Shutdown still on what is the impact on Investor Confidence . And also on Corporate America . David joining us in a fox business exclusive. We have, he is Janney Montgomery scott ceo and ppesident. Thanks very much for coming in, tim . I want to know first of all, what is the scariest thought in your mind that when you look at all this . What keeps you up at night about what is happening in the beltway . The scariest aspect of this is that our elected officials do not come together and find a solution to the debt ceiling problem the market has never seen us not raise the debt ceiling. So how the market will react and how the Market Participants will react to that is really the thing that keeps you up at night. I mean we had the scare in 2008 when Lehman Brothers failed. It was sort of a downstream effect of that including the failure of one of the money market funds that really sent people sort of running toward the exits. That is the concern we have that is out there. We never had a dress rehearsal for one of these. Cheryl sorry, tim. This is cheryl casone. Go ahead, cheryl. Cheryl fiscal restraint in washington still is not being seen or agreed upon. Sequester aside. That may be the next fight that the republicans find themselves in in the next year. Where would you like to see overall Government Spending . Do you have a number in your mind, a percentage of gdp that would let you sleep at night . Well i dont really have, i really havent thought about it in terms of that. What i would like to see is sort of a longterm solution to the, the debt ceiling and not just kick the can down the road until january or february. And i would like to see some real thoughtful conversations around how we solvetitlement is. Weve done a lot to reduce discretionary spending. You cant go much further. It is thoughtful discussion around some of the materials that president obama proposed during these last discussions about sort of curtailing the growth of enlightment spending. David tim, i talked to fed officials off the record, what they say is what keeps them up at night are Interest Rates. The idea somehow the fed cant control their rise. We saw that spike begin at the gypping of the summer. It kind of calmed down after the last fed meeting. Do you think there is a danger it could spark up again . I think theres always a risk that anytime you get a lot of market uncertainty people react in a negative fashion just like when they did in bernanke in june started talking about the end of qe. There is the concern that Interest Rates would rise. That is less of a concern to us at this point than just the fact of sort of the fear of the unknown what happens if Market Participants cant handle a default, even a temporary default of treasurys. Cheryl tim, really quick irk im assuming you are advising your clients to kind of stay the course . Were advising them to stay our clients very much pull backg from the markets and very much sit on the sidelines. I was in a meeting earlier today they described market activity as very muted. Were advising our clients to stay the course absolutely. Cheryl that is interesting. Tim sche have. E thank you for being here today. David thank you, tim. Is it fair to compare the debt ceiling talks to the American Revolution . Well joined by two congressman using pretty colorful language. Representative Sheila Jacksonlee and representative morgan griffeth will try to get past the name calling into Solutions Coming up. Bny mellon combines Investment Management investment servicing, giving us unus which help us attract the dustrys 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. David as we get closer the governments debt limit deadline, will lawmakers reach a deal before time runs out . Joining Us Democratic representative Sheila Jacksonlee of texas and republican representative Morgan Griffith of virginia. Good to see you both. Let me play a little sound for both of you. I hope you can hear us well. This is kind of loose talk that has been going around a default. Of course the word default is a loaded term up here in wall street area. Lets play the sound bites and get you to comment. We realize the potential damage to 300 million plus americans if we default on this debt for the first time in history. Time to avert a catastrophic default on the nations bills. Trying to make sure that there is no issue of default and to get our government reopened. We stand a good chance of defaulting and defaulting would have a, potentially devastating effect on our economy. David representative lee, i used to cover latin america. Country defaults dont happen very often. They only happen when countries refuse to pay bills to bondholders. Is there any sign you have seen or heard of that the Treasury Department is flapping to default on its treasury bond . Well you know as i do unfortunately bondholders stand first in line but i think the real issue is that we know in the last attempt to default two years ago again there was very difficult negotiating with House Republicans. Weewere downgraded by Standard Poors t make as great deal of business, to Women Business owners i got speaking to that is even a rumor of default. The real issue whether it is the perception of the world markets, if you will, wwll street that america will pay her bills. I think at this hour on a tuesday evening the only thing that we should do is vote to, put forward the compromise, the collaboration, the reasonable response to a solution problem that the senators offer and and vote on that and move forward. David representative griffith, there is question whether well have prioritization. If we do hit the debt limit the Treasury Department is going to have to decide who gets paid first. As representative lee just told us first in line, are the debt holders. Is that going to continue or is it conceivable there would be default . That the treasury secretary would decide bondholders come second, third or fourth . I dont know how they could make that decision. I think it is inconceivable that the secretary would make that decision. I think what youre going to see, hopefully well get a negotiated settlement worked out of this but i dont think even if we get past that deadline you would see bondholders not getting their money. David so you think there is zero chance of default . I think it is zero chance as long as everybody is doing what theyre supposed to. One of those things is to negotiate to make sure were all sitting around the table and were working it out. David well, representative lee, what happens on thursday if there is not an agreement . We just had a meeting of democratic lawmakers in the white house and coming out steny hoyer and others were suggesting that the treasury secretary may have to begin prioritization of bills going beyond that, the 14th amendment is nuclear option. I will read for viewers, im sure you know it. Section 4 of the 14th amendment, the validity of the public debt shall not be questioned. the question is whether the president would use the 14th amendment to prioritize himself and take congress out of the whole issue of debt limit . Raise the debt limit himself. Is that possible . You know im going to take a quote from the majority leader that really says this is absolutely awful and tte very fact that we are in a giveandtake, watch the house burn down and try to borrow your neighbors firehouse and it cant be borrowed is absolutely absurd and insane and American People should not tolerate it. Frankly there is a compromise. There is a solution, there is a reasonable solution we right now. It is proposal offered by a Bipartisan Group of senators led by a republican woman from the senate and a democratic woman from the senate. And i would hope that those reasonable minds could actually look at this solution and not be teetering with who gets paid or not. Frankly on october 17th im going to use the term, even though there is prioritization, we will be in default. When i say that david that is not true from the market perspective, congresswoman. You know that. That is not a default. If we hit the debt ceiling that is not definition after default. Default is not paying your bond holders. I am not going to quarrel with what fox business is saying about defaulting. David it is market. It is wall street. The American People david you may not like it that is their definition. The American People will perceive that were in a very dangerous zone and im well aware as you know, the well aware of that the market views it differently and it is not a default as relates to market. David okay. But fact were tilterring with. David nobody likes the dite aring. I get 100 . Specific answer to the question. Lets push to make a decision. David let me ask the question for a quick answer to this question, if i may, congresswoman. You may. David you would then not expect would you support the president using the 14th amendment to raise the debt ceiling limit himself . What i would support is that the president and legal team he has look at options that may be appropriate. We know full well in the very, how should i say it, difficult climate that were in, as a constitutional reader if you will, the 14th amendment lays the groundwork for options like that but im not going to put those words in the mouth of the president of the United States because as he has indicated, he wants to see us move forward to insure that there is no debt ceiling david i have to give mr. Griffith to respond to the same question. Would you support or expect in any way that the president use the 14th amendment to raise the debt ceiling himself . Absolutely not. I dont believe that is constitutionally sound. I think if the president does that he will have crossed a line should not be crossed, that is the bondholders will have to be paid, the money is there. We need to work this problem out. We need to sit down and negotiate with one another. We need to talk, sit around the conference table to make this thing happen. Every side will have to give some, some a lot but well have to work this thing out but i believe it would be unconstitutional for the president to use the 14th amendment to try to raise the debt ceiling on his own. David Sheila Jacksonlee, Morgan Griffith, thank you very much for coming in. Appreciate it. Good to see you both. Thank you. Cheryl were getting incredible breaking news into fox business. Here you go. Fitch has now placed, the placed the aaa Credit Rating of United States on ratings watch negative and theyre giving us the reasons why. In particular, what youve been seeing in washington of the they point to the fact theyre putting the, putting the United StatesCredit Rating on raid rating watch negative. U. S. Authorities have not raised the debt ceiling in a timely fashion. Also theyre talkiig about fullon negotiations following what they saw back in august 2011. Not only is fitch saying, what theyre saying eason in washington to put the countrys aaa negative rating on ratings watch negative. They will assess this, they will assess this, theyre telling markets, telling bond markets, telling treasury markets, you are now on notice. Theyre talking about the potential, the potential pressure on the u. S. Dollar and that is another reason why theyre saying that these risks to the United States economy, the risks to, again to the health. U. S. Dollar, all of this, potential, the potential of a default in the United States, the risk of a u. S. Default and lack of a deal being set in timely fashion, thats what theyre saying, timely fashion. This is why fitch is now putting this country david on notice. This is we had senator harry reid say this morning. He thought that tonight, tonight well hear something from the ratings agencies. We got a no comment, fox business earlier today. , from, from them and now theyre coming out with a release and telling us this is at your own watch. David this is one ratings agency. Be very interested to see what happens to s p particularly after what they went through after they downgraded as you couple years ago. Apple taps one of the leading luxury goods retailer for a huge hire. Well find out whether the retailing guru will put the shine back in apples retailing business. [ale announcer ] if you suffer from a dry mouth then youll know how uncomfortable it can be. [ crickets chirping ] but did you know that the lack of saliva can also lead to tooth decay and bad breath . [ exhales deeply ] [ male announcer ] wellhe. Specially formulated with moisturizers and lubricants, biotene can provide soothing relief and it helps keep your uth healthy, too. [ applause ] biotene for people who suffer from dry mouth. Biotene when you do what io, iyou think about risk. I dont like the ups and downs of the market, bui cant just sit on myash. I want to be prepared for the long haul. Ishares minimum votility etfs. Investments designed for a smoother ride. Find out why 9 out o10large ps choose ishares for their etf ishares by blackrock. Call800ishares for a prospectus, whh includes investment objectives, risks, crges and expens. Read and consider it carellbefore investing. Risk includes possible loss of principal. David just want to read one sentence from this fitch report. Again it is now a downgrade. It is a threatened downgrade. The threat of a downgrade. Says the treasury may be unable to prioritize debt service. Unclear whether it has the Legal Authority to do so. Exactly what were asking could on guess people. Cheryl this is coming from fitch. his morning senator reid made comments about the ratings agencies. Now we got the statement tonight. David we got word before it happened. Melissa and money is coming up. 3 this is a my mantra . 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Ask your doctor about the only underarm lot treatment, axiron. Amelia. Neil and buzz for teaching us that you cant create the future. By clinging to the past. And with that youre history. Instead of looking behind. 80 thousand of us investing billions. In everything from the best experiences below. To the finest comforts above. Were not simply saluting history. Were making it. Peace of mind is important whenl so we provide it services u can rely on. With centurylink as your trusted it partner, ull experience reliable uptime for the networknd rvices you depend on. Ltilayered Security Solutions keep your information safe, and secure. And responsive dedicated suprt meets your needs, and eases your mind. Centurylink. Your linto whats next. Melissa im Melissa Francis and heres what is money tonight. Remain calm. [shouting] all is well melissa are negotiations in Congress Falling apart or is there hope for a deal now before the deadline. One senator in the thick of it all joins us with the very latest. Plus, bringing manufacturing back to the u. S. , Martha Stewart launches a new campaign to bring made in america back to life. She is here to tell us all about it. Who made money today . An entire state is swimming in it after strikeing a historic record. Stay tuned for the answer. Even when they say it is not, it is always about