Transcripts For FBC Markets Now 20131008

This bartender in washington with a message for ouu government. Furloughed workers get a discount at the bar but congress and the president would have to pay up big time. And will ferrell helping dodge so if you during those. As Dagen Mcdowell joins me this hour on markets now. Dagen you will do that. Connell sent him out with a bunch of lacrosse sticks. The story was the middle school said you cant have Sports Equipment because they thought was too dangerous. I dont think he can do cartwheels. Running down the stretch. Dagen causing trouble at the middle school. Connell senator tom coburn later in the hour to get into the debt ceiling and talking about the hearing on it. That will be live later this hour. Dont miss it. Dagen stocks now top of the hour, session lows hitting the losses. Lauren simonetti with more. Lauren we do have stocks, 65 points, nasdaq the big loser today down a full percent. The s p 500 down by half of 1 . If you look at the dow 30, 26 stocks in the red. Yesterday we close with 27 of the dow components in the red. Looking at the advanced decline line, sharply lower market. Beating advancers by market of 21 . Jcpenney the standout, the stock is up nicely. Down 60 this year but getting a boost today despite a downgrade. They put out their september Sales Numbers and the sales in september much better than in august showing improvement particularly in some of the highvolume portions like womens apparel, which is their biggest segment. Investors are liking that, maybe some liquidity concerns are subsiding a little bit. Back to you. Dagen the shutdown in its eighth day. The headline on the New York Times will have you believe fiscal armageddon is coming. Look at this, default threats generates fear around the globe. A few sections in, doesnt seem so bad. Look at this. Little fear on wall street of default at the moment. Which is it . Global panic or fearless investors . Chief Equity Investor at the management. Is it possible t the other ladyt factored in right now . And you have these oneoff situations with a small probability of a big negative event coming never know what is in the market or not. If we default, the market going down, if we dont, the market goes nuts. It may be included. Most of us hope washington, d. C. , at the end of the day when the backs are to the wall and saner minds will prevail and we will resolve the problem. I think we have to be fully aware there are the ways, it is not as if october 17 comes and everything hits the skids. It is a gradual process, therein lies the labyrinth of all kinds of possibilities and rumors and who knows how this comes out. Dagen an article about that very thing, the discussion if you make Interest Payments on the debt and refer other payments, that will be okay, the article addresses the fact the u. S. Might not technically default on the debt missing any kind of payment would likely harm the economy. So you are disagreeing with that thought then. No, not necessarily. I would agree before we get there, the noise you and i are talking about now is causing damage to our economy. It looks like trade issues are already struggling. The imf downgraded growth because of this issue. Consumers are a bit scared, it is already impacting the economy which is why the sooner we can clean this political mess up, the better off we are going to be. Dagen what about in the way the market is reacting . Youre seeing money flowing back into longerterm treasuries. Cannot continue, wouldnt we see if we get closer to that date, wouldnt you say longerterm Interest Rates going up, do you think . I dont disagree with that possibility. The bond market will see the volatility because there are some things about all of this, some things on market negative. A surprise stocks down and bonds up didnt start sooner. We went all last week hohum, now getting hit a little bit. Until the market sends a message to washington, d. C. , we are not likely to get a lot of action. Dagen you are fully invested at this point, but how are you allocated in your portfolio . Significantly underweight for whatever reason. My view is planning for these sort of things is very difficult so i am trying to look through the haze and the fog earning free cash flow, industrial stocks, elected technology places we still find interesting bargains recognizing those stocks are unlikely to have big upside to what the fog is over us but we think it will be okay again. Dagen great to see you, be well. Connell back to this picture we talked about at the top. Having a little fun with it, it is interesting, new so happens when the president doesnt show up for a Major Economic summit you have in the front people like chinese president and our old friend the russian president , vladimir putin. Dagen standing in front, shoulders back. If you look at the far right, president obama stand in for the summit, there he is, john kerry÷ canceling his trip due to the government shut down, so is this what the washington stalemate is doing for our country on a global stage . Fox news contributor joining us now with a loselose. John kerry standing in for him, but if he went he would be raked over the coals he left the country when we are in a shutdown. Connell the policy was leading from behind. This is leading from behind and on the sidelines. I dont have his editing do with the shutdown per se, but this picture and the shutdown, all reinforce the notion this is not a very serious country, dealing with one crisis, one challenge. It is dysfunction. Connell a way to have a little bit of fun with the story, john kerry in from the back. What do you think the effect, if any, has been on other matters . Certainly you can see in the center of this picture, the idea he is the great peacemaker, but after the syria crisis he came in with the olive branch in his mouth and it underscored the underlining problem which was a lack of leadership from obama. We had hesitation and perpetuation and then the shutdown. What others have done is they come into the conference on capitol hill, figure a way out of this and instead what obama has done is done the trench even deeper. I dont want to deal with anybody, i will not negotiate yet these incredibly childish responses such as shutting down the amber alert website yesterday. Putting missing children at risk to make republicans look bad. Ive never seen anything as appalling. Dagen it is filthy politics. Filthy politics. Dagen who gives . Excluding the amber alert website, republicans do not look good. One consider g. O. P. Precipitated the shutdown, but 12 votes since the original shutdown backing up the defined of obamacare. They have in passing bills to say we will reopen the government but we want you to get rid of the medical device tax or these medical exemptions. Connell some republicans including peter king said they would pass it. The republicans were elected to control the house of representatives, the white house controlled by the democrats and America Public voted for split government and you end up with compromises and a decent compromise is we will fund the government. Congressional staff, the white house staff are treated like every other americans and the rest of us. If that happened, the government would reopen. Dagen to have the white house the senate. To them it is two versus one. We live in separated powers. The house controls the purse strings. Everybody walks away not thrilled but willing to do something they can say we will go from there. Connell good to see you again. Another glitch with ios 7. Hackers can block the track your phone app a lot of people count on. So we will talk about that. Dagen a heavy tax on lawmakers and government officials. Connell producers to let this guy sell you a car . Dodge is banking on it. Coming up on markets now. Dagen another security flaw in ios 7 to tell you about. A German Security lab found a dog that allows you to bypass the find my iphone feature that allows users to wipe data. Put the device in airplane mode. It leaves them vulnerable. Here is how the apple stock is doing today. Dagen i use that all the time. Whatever. Just to track people, see where they are. Bartender at a popular bar at capitol hill changing the price of beer during the Government Shutdown. Get a beer for 2. That is a pretty good deal. If your member of congress they cost 5 is somehow president obama were to show up it would be 702 with the logic being the cost of the penalty plus 2. Pretty creative. Coming up with that the people legos would put them on tv. Dagen a couple of stocks where keeping our eye on. Lauren alcoa kicking off earnings season. We get the numbers after the bell. This is the first time alcoa reporting it is not a part of the dow. Reporting earnings of 0. 05 per share, but yesterday Morgan Stanley downgrading alcoa for lower aluminum prices. Year to date down more than 8 . The other company reporting is the parent of kfc, taco bell and pizza hut. Yum brands. It is expected to post earnings of 0. 93. Keep an eye on china. The biggest and most important market for yum brands. More as a cross on after the bell. Dagen these guys are not going to do it, the Federal Reserve. The data Charles Payne says there is little to get people caring again and that is why so much money is on the sidelines. Connell people dont care . That is the worst state of mind. The senator coming up on things we need to care about. The crisis in washington that continues and Social Security benefit story we talked about yesterday and if there is a path to a grand bargain. Senator tom coburn coming up. And a look at the world currencies and how everybody is faring against the dollar. 21 minutes past the hour, this is your fox news in it. Divers searching have found the remains of one of the two people still missing in the 2012 disaster. Remains believed to be that of an indian waiter. A new 100 bill makes its debut today after a two and half year delay. An array of hightech features designed to stop counterfeiters. A blue security strip woven into the paper and you can see a new watermark of Benjamin Franklins face on the right side of the bill. It was a big night for the new york jets and rookie quarterback smith. He threw for three touchdowns and set up the winning 43yard field goal on the final play of the game. The jets beat the Atlanta Falcons 3028. Those are your News Headlines on the Fox Business Network. Connell great news. Making money with charles here. Dagen the falcons 14 now . Connell outlook for smith for the rest of the year . Nobody cares anymore. Dagen about what charles does . Charles i think it goes way beyond that. Apathy is much more important with respect to the economy. A small little soap opera, but late in the day the Consumer Credit report. They beat the estimates 13 billion but when you dig in, you see the apathy i talk about. Credit card debt down in the last three months. Get people to go out and spend money they dont have. Also a noconfidence vote, revolving debt still down from the highs of 2008, and of course nonrevolving debt, those have gone through the roof but the money does not tend to cycle in the economy the same way as going to the mall and spending a ton of money. Dagen we learned our lessons for the financial crisis, individuals did. Charles as a percentage of income they have more Discretionary Spending than they have had in a couple of decades. They are afraid, a vote of noconfidence. Ultimately as much as i would love to go into the dave ramsey rant, we had to go out and spend money. We dont need people to run up 10,000 credit card bill without a job but people go out and the confidence creates a selffulfilling impact. Housing for the july number of firsttime buyers 9 down from 34 a year ago are not taking the date. Dagen people got thei there yow what handed to them during the housing boom. They got burned. Charles by the time they get around this, they could have saved a ton of money. Connell everybody was interested in the stock market in those days. Charles something has to happen that sparks some sort of belief in america. A lot of the subprime, lets not forget 11, 12, 13 years old for the average car. Connell i got it, geno smith. No interceptions from geno smith the rest of the year. Dagen that is my statement, always give me a reason to drive to new jersey. Connell better than the giants. Dagen who are they playing next . Connell the giants play thursday night i think the display doesnt even matter that much. Senator tom coburn is here. We will talk to senator tom coburn about the shutdown in washington and everything else. How do we move forward from here, see if he has any ideas. Connell Small Business ideas for reallife situations. The first smart phone breathalyzer and the company is getting a big investmeet from the shark investors. We will talk about that and isnt that a feelgood story . Here are some of the winners. Connell as we come up on the halfhour, here is what is coming up, we have the answers to the latest crisis in washington from coburg. We will talk a little anchorman, as well. Dagen karo icon making an announcement on two companies. It is moving the stock a little bit today. When karo icon tweets, stocks to move. It is a company that has been hit hard this year. Dagen thank you, lauren. We have not seen all that much reaction or anticipation in the markets just yet. Dagen things are really moving down here. When markets react, congress and the white house will act. They have been pleading with washington. Markets have the climbed gradually, though they are still around all time highs. They are no close to a resolution. There are no boundaries here. There is nothing on the table. There is nothing off the table. I am trying to do what i can. I do not know what else there is to talk about. House leadership sources tell fox that they are planning to create a negotiating team. Real discussions between Top Republicans and the white house are nonexistent. Back to you. Connell thank you, rich. The only thing i can think to ask is how do you see this ending at this point . It will end. It will end when the pressure builds. The president is not leaving right now. He is leading by saying here is how it has to be. Let me make one point. The American People understand we cannot keep borrowing. To say i am not negotiating on the debt limit is ludicrous. It has been negotiated with other things attached to it. It is about the future and it is about leadership and we are not seeing it. Connell the next day that everyone keeps talking about is october 17. What is october 17 . What does it mean to you . First of all, i think that that date is movable. It does not mean anything to me because we do not have a debt limit under the republicans and democrats. We never make choices to quit going into debt. I do not to intend on voting for this one. We need to cut about 9 trillion out of our spending. We put out a plan. It is called back in black. Connell the reason is to say, hey, you have to make some kind of deal. The president does not want to make a deal because we are going to raise it. Connell what do you think would actually happen if we did not . We will not default on any of our obligations in terms of our debt. We might actually start living within our means. We just may do that. We just may perform medicare. We may do some of the things that the American People expect us to. You should not be a treasurer right now and once you a very sophisticated person. Most americans would like to see us trim this money from our expenditures. They all have to live within their means. Most of the states have to do it. It is time for the American People to decide. Connell . Your party, did the republicans make a mistake and taking the fight that was picked . I am not a good enough politician to know what mistakes are made. The American People know that the government makes way too many decisions in their lives. It does not matter if they are a liberal or conservative. They know we are out of control appear on spending. Connell Social Security abuses and the process and if you go through it line by line, you can find a lot in there. After having the hearing and the attention it has gotten in the talk that has come up, what can we do . The number one thing we need to remember is to make sure we are taking care of those that are truly disabled. This is a case where Congress Fails to do its job, fails to look at the management, fails to look to see what they are actually doing. This was our second hearing. There needs to be a whole new approach to where we make sure people who are truly disabled can get what we promised them. Connell senator, thank you. We will get this done. This is so outrageous that people will demand we fix this system. Connell thank you for coming on today. We appreciate it. Dagen a breathalyzer of sorts on your smart phone. Connell this is a great story coming up. Anchorman, ron burgundy, selling durangos fort dodge. Look at him go. We will talk about that coming up. Dagen applying warm buffets philosophy. I am adam shapiro with your fox business brief. The International Monetary fund is warning that not raising the debt ceiling good hurt the global economy. 2013 would be the slowest year of growth since 2009. Cutting 10 million jobs worldwide to reduce costs. The job cuts will occur mainly in europe, the middle east and africa. United Parcel Service plans to invest money and eight states. That is the latest from the Fox Business Network. Giving you the power to prosper. It raises the price of fishmeal, cattle feed and beef. Bny mellon turns insights like these into powerful investment strategies. For a university endowment. It funds a marine biologist. Who studies the peruvian anchovy. Invested in the world. Bny mellon. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Connell we are back on markets now. Drinking and driving is dangerous. Creating the first smart phone breathalyzer device. An interesting story. We have the chief executive officer and founder of a company that does this. I have watched the show a number of times. You get all five of these people to say, yeah, good idea with this company. Briefly tell us how this breathalyzer on your phone works. Sure. It is a combination between a hardware device and the mobile combination. You basically take the device, you plug it into the audio track of the smart phone. You blow into it like so. Within a few seconds, you will know what your blood alcohol level is. Connell lets hope that yours is at zero. [laughter] connell what about a Business Model . Currently right now we are selling through our site for 49. There are a few retailers that we are discussing agreements with. We will make that announcement when not time comes. Connell what is your pitch for people to buy this . Someone has to pay 50 to pay for this device that they attach to their phones. What do you say to someone . What is your sales pitch . It is more so just encouraging making smarter, safer decisions. We have created a device that is cost effective, affordable and easy to use. That an end of itself is it that an and of itself is pretty good. Connell especially if someone is not as educated on it. Before we let you go, or any other big ideas . Is this what you work on all of your time . I am a serial entrepreneur. This is technically the Third Company that i have found it. However, this one has a lot of meaning to me. This is something i have dedicated fulltime to. Connell you will keep the company . No plans to sell it. No. We definitely want to make this a success. Connell thanks a lot for coming on with us. We appreciate it. Thank you. Dagen could you come by and that it tells you your breath is bad . Is this going to be the trend . Is this the high for the vix, do you think . Probably the short run. We are not seeing a panic down here. Stocks going down on no volume. There really is no panic. People are not selling anything, there are just no buyers stepping up to buy. Dagen thank you very much. Connell ron burgundy is back. It is not just one or two commercials. They shot 70. Listen to a little bit of one of them. Dodge durango. She has it all. Including 25 Miles Per Hour highway. Twentyfive mpgs. I am saying it right, but it just does not sound familiar. Connell we talked about it earlier. Bernard brought up the fact that he does not think it is funny. I do not either. Dagen it is just too close to home. Doing stuff like that not even on purpose, when it happens, it is not even funny anymore. Dagen it is pretty funny. Connell all right. Dagen i am excit saw this is the only funny thing and it is danny met pride. Connell connections all over the place. Dagen okay. Getting fit and talking to some Small Business owners about exercising their right of Financial Game plans. Connell jeff flock will be up next. Five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. With the mobile trader app. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Dagen president obama will have some statements today at 2 00 p. M. Eastern time. You can catch it live right here on fox business. Connell how are Small Businesses feeling about the economy right now . Dagen jeff flock is getting a firsthand look with the owner of a Fitness Studio in chicago. Jeff this is what we do that maybe no one else does. This is maybe one of the most optimistic people in america. You founded to her Fitness Studio. We are staying positive. We are not leading the noise of the government shake us. We will do the best that we can. Jeff you specialize in . We specialize in group fitness. Our classes are always changing. Jeff franchises around the country. Now in expansion mode. Pretty flat in terms of optimism. Where do you stand on this. We are staying positive. We just signed our seventh location. We are not letting the government and what is going on shake us. Jeff calling this basically a game of thrones out there. Do you even care about this . Most people say they are busy running their business. Exactly that. Focus. We have a plan and we are executing it. Jeff i like that. We will keep an eye on this all day. Small business optimism. Connell absolutely. Dagen those ladies are overdressed. That is what i have to say. Connell do not get involved in this, please. Government gridlock. Speaking of wall street, why does wall street not seem to be batting down the hatches . Cheryl and dennis are coming up. Dagen new healthcare costs causing some Small Businesses to adopt the mr. Burns plan. That is coming up. Term goals, not their shortterm agenda. [ male announcer ] join the nearly 7 million investors who think like you do. Face time and think time make a difference. At edward jones, its how we make sense of investing. Losing thrusters. I need more power. Give me more power [ mainframe ] located. Ge deepsea fuel technology. A 50,000pound, ingeniously wired machine that optimizes raw data to help safely discover and maximize resources in extreme conditions. Our Current Situation seems rather extreme. Why cant we maximize our. Ready. Brilliant. Lets get out of here. Warp speed. Warp speed. Stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. That did not negotiate over the debt limit. Never. Not once. Were not going to negotiate under the threat of economic catastrophe that economists and ceos increasingly war would result if congress chose to default on americas obligations. Dennis both sides continue to play of the we said they said game over a who is willing to talk. I am dennis kneale. Cheryl casone and and i are here to take you through the next hour of markets now. D. C. Disconnect, catastrophic protection from capitol hill as we get close to hitting the debt limit. Wall street doesnt seem to care. Republican congressman Chris Collins of new york says thousands of government workers are not getting the he shouldnt get either. He is here to talk about that and chrysler, craig 70 new ads featuring the iconic but entirely fictional newsman, this and more in this hour of markets now. You got the dow down 85. Cheryl the president , is going to be speaking at 2 00 eastern time. He is going to take questions. That will be interesting. We will take on fox business and what is he going to say that he hasnt said . Dennis both sides say the same thing every time they get up there to speak. What will they do to get this moving . Cheryl is affecting market mullet coin. Marked down 86 points and since the top of the hour we will bring in Lauren Simonetti. The vix is pumping above 20. Markets are just starting to get sick of this. Nicole volatility is above 20 , 20. 32 at the moment. It is huge, the past three weeks by 50 and one of the reasons volatility is at a three month i, volume is so low. One trader was joking the wall street traders are being furloughed right now. We do have the volatility but look at the markets, the dow is down 10 points from session low down 1 2 , the nasdaq is the worst performer down 1. 5 . Csn b is 3 4 presented the downside, 26 dow component in the red, of ten s and the sectors that we like to watch are in the red. We want them in the green, utilities and staples, in the market trading at that. Dennis thanks very much. Take a look at this headline from the New York Times this morning, default threat generate fear around the globe. If you sessions in things dont seem bad. Little fear on wall street of default at the moment. Which is it . Global panic or fearless markets . Rich edson joins us with more. The president will be speaking this afternoon. Rich at 2 00 he will speak in the Briefing Room and a question. We will have that on fox business. Markets are not doing much to move d. C. Despite down markets the past couple weeks, volatility is up. They remain near alltime highs and theres a sense both parties in washington have time to play this out and extract a better deal. One veteran of washington budget fights says investors should be sending a stronger signal. It amazes me we have just come out of the situation five years ago where credit default swaps, derivatives and all these other instruments led to a very, very serious financial recession. Rich john boehner and president obama are talking to each other but not about much. In a statement the white house says the president telephoned, their word, Speaker John Boehner from the oval office and repeated what he told him when they met at the white house last week. The president is willing to negotiate with republicans after the threat of Government Shutdown and defaults have been removed. Republicans say that means democrats will only talk if they concede there only leverage. Dennis thank you very much. Cheryl for more on the shutdown and the showdown over, the looming debt ceiling deadline lets bring in congressman from new yorkers collins, good to have you on the show. What do you make of what our reporter said, speaking about the New York Times piece that said investors are worried washington doesnt realize the severity of the situation and politicians our you, congress, the senators are going to push us past the debt ceiling deadline and let us default. How do you respond . We understand the severity of what were talking about, the current showdown and potential default. What we need to do is sit down like we do in the private sector, i am a private sector guy, get all parties in a room and you talk. You dont lecture, you talk. What this president has been doing is lecturing john boehner, lecturing the conference. That is not the way democracy works. America needs to recall that in the constitution of the house of representatives that is responsible for taxes, responsible for spending, responsible for borrowing the debt limit. Cheryl president obama just told john boehner today in a phone call i will talk to you after we increase the debt ceiling limit, after october 17th. Are House Republicans willing to push this back beyond the seventeenth . Are you willing to take us into default . Is that on the table . What finally enters is up to the president. If he would come in the room by this afternoon we would have this resolved, and many grand bargain or whatever huge college talking about tax reform, entitlement reform, admitting we all know 30 hours doesnt define a fulltime job. Cheryl what if he doesnt . The president is standing strong, no one is blinking and that begs the question for the markets, we are a business network, markets are wondering what you are going to do. To the san idea what is going to happen here. The house of representatives will not give this president a blank check with a clean see our and clean increase in the debt ceiling without sitting down and talking about the fundamental reforms we need to deal with the financial deficits that are running up our debt and piling this on the backs of our children and grandchildren, the president needs to come in the room and negotiate and talk. That is one of the leader is supposed to do. This president s history is of lecturing and pontificating and what he calls talking does not mean we have any trust that he would actually negotiate in good faith. Has come before to say he would talk to was and what he has done in the past is lectured us. Cheryl if you dont get concessions on spending which is the fair request. We had moodys and s p and ben bernanke has been critical of this the fiscal situation in washington. If you talk about an agreement when it comes to spending cuts then maybe we can improve the debt ceiling and move forward. Absolutely. What do we need to do to get the economy moving and that speaks to the issue of tax reform, what we need to get our deficit under control, entitlement reform, that needs to be the discussion ended is unbelievable that this president wont baggage into the room to talk to the branch of government that is in control by the constitution of spending, taxes and borrowing. It is a Small Business guy, i cant believe he has taken this tack. Cheryl i understand that. You are a mechanical engineer, you understand how the markets were. One thing we have seen is up prices of credit basically insurance on treasury, those prices are jumping. We have not seen a lot of headlines about nervousness in the market but the money is starting to show that the markets are nervous. Can you picture a scenario where we dont pay interest on treasury . Can you see that happening in this country . This would come to jack lew and the president of confect we did not increase the debt ceiling and they ran out of extraordinary measures what they might prioritize or not, what i would like to remind everyone is if we are going to worry about Interest Rates in the future are runaway deficit and everincreasing debt is going to put our longterm Interest Rates in an upward mode because the risk associated with a country where our debt to gdp is growing leaps and bounds is the bigger risk, frankly, than what i see this temporary situation. We have to get our deficit under control. We need to reduce the slope of those deficits related to gdp and to show when we are going to land in a balanced situation. Our children and grandchildren can star repaving this debt, not keep adding to it. Cheryl the deadline is approaching, we will be watching you and other House Republicans as well. Congressman collins, thank you for being here. Went to everybody know we mentioned at the top of the show we found out the president will be speaking and taking questions at 2 00 eastern time. We will bring all of that to you in its entire alive on fox business. Dennis has the Government Shutdown created a buying opportunity in stocks . Randy bateman joins us now. Thanks for being with us. Warren buffett says when everyone else is fearful you should get greedy. Is now the time to apply that mantra . Im not sure everybody is fearful. They should have been fearful in 2009 when the market was going to collapse. If you think about it the person who initiated that particular warning was baron von rothschild. The time to buy is when there is blood in the street and that can after he manipulated the london market following the battle of waterloo. He made more money than anybody in history at that time. 20082009 there was blood in the streets. We are coming off of a market that is up 20 . I dont see blood there. Dennis you dont think it is a great time to buy. You save the market is stronger than it should be. Please explain that. If you look at peer e. Multiples, where we have gone, if you are up 20 that means a fifth of the market has grown in the space of nine months. There needs to be some digestion of that. May be warren has fallen under the scope of what his cousin jimmy said when he said wasted away and margaritaville. We have a strong market here and a lot of things are going to be head winds. We have earnings that are going to be coming out this quarter that dont look particularly good and going into a fourth quarter, significant head wind as well and a big problem that will surface at some stage with regard to Puerto Ricans that ended seems the politicians in washington are doing the same thing for happened in detroit. We keep pushing problems away, keep spending and ultimately a reckoning. Dennis you talk about you have been trying to get your clients, bonds in their portfolio because you dont like the outlook, what are you replacing the income producing piece of paper with . Absolutely, good question. Bonds are not carrying the same characteristics they once had, giving you a good income and safety we found out after this summer, a lot of people with sticker shock with regards to fixedincome portfolio. We are looking at alternatives and the equity market is there and there are mold schools and capabilities to hedge those equity bets and be able to generate a higher level of income than you can receive from the bond market and even a higher level of market safety as well. Dennis i have been predicting we close at 16,000 before the recent shutdown turmoil, were at 148. Will we finish at 16,000 . Make a prediction . I hesitate to do that because anything can happen between then and now. I mentioned the Puerto Ricans scenario that is looming out there but i would be surprised if we exceed 16. Dennis looks like you and i have a bet. See you after the first. Cheryl new Health Care Costs causing Small Businesses to run their businesses like homer simpsons evil boss, mr. Burns. Dennis should the redskins before their name in the pursuit of Political Correctness or is this going too far . We want to hear from you. Tweet us. If youve got it, you know how hard it can be to breathe and man, you know how that feels. Copd includes emphysema and chronic bronchitis. Spiriva is a oncedaily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. You know, spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd. Spiriva helps me breathe better. Does breathing with copd weigh you down . Dont wait to ask your doctor about spiriva. Cheryl the dow down 87 points, markets are frankly losing steam, the dow and s p down two week 0. The nasdaq proving to the green. I want to show a couple sectors, one sector in particular you should be watching, the financial sector, earnings start this weekend we will be airing from Jpmorgan Chase and wells fargo on friday so these are the names you want to keep your eye on throughout the week, these Earnings Report tell us so much about the health of the u. S. Economy, the mortgage market, even trading revenues can be interesting, how many stocks being traded, so much in these reports. Take a look at those companies, watch them for the rest of the week, Cheryl Casone investing 101 but from the nyselisted and seminary and what she is watching. Since it is one time i have my eyes on shares that a selloff in a huge way right now down 18 , a 1103 is the level. Two analysts cutting price targets on the stock, 16. 50, and 1,015, a stock that year to date is down 2 but the reason they are getting a price target at today is they said they expect sales in the Current Quarter to fall by 3. 4 . What is the reason . A slowdown in consumer spending, and of course another retailer blaming the weather. Bad weather is a key market for them. Cheryl thank you very much. Dennis what is bugging me . The washington redskins. Could did say the team should shed the redskins name because it is an inappropriate racist epithet that hurts native americans . President obama has weighed in saying if he was the redskins owner he would change the name because it upsets so many people. The president is busy with the government shut down and the debt ceiling debate, syria, the irs and nsa scandals but he takes time to weigh in on offensive football mascots. And worse, he is wrong to. A poll of all americans earlier this year found eight of ten had no problem with the name redskins and in 2004 a survey of native americans should nine of ten werent upset. These are people who supposedly were offended. Is this really is pressing the issue for our times . Uncontrived controversy . The redskins had than a for 80 years and for just as long a americans have struggled with higher alcoholism rates, a suicide rate two times as high as whites, party rate three times as high. Changing the redskinss name wont change any of those but it will make liberals feel better about themselves so tweet me. Is the redskins name change Political Correctness gone too far . Your turn to weigh in. Cheryl one thing i watch in arizona, i went to school in Northern Arizona Navajo Nation is right surrounding it and it is not marriage should be but so many points you make i had seen growing up in arizona and you are right, no name change. Cheryl if you want to help native americans tackle that. Cheryl agree with you. We will see what you say. Of you disagree tweet Cheryl Casone. You are killing him. Murdering my coanchor. The women behind last months sale of the famous this dodgy knee command of the recordsetting sales in miami. They are called the gel and theyre here to talk the state of luxury realestate. Markets in the red but not as bad as it could be 1 wall street that the panic button, Charles Payne going to be here and have his thoughts after the break. When does your work end . Does it end after youve expanded your business . After your companys gone public . And the capitals been invested . Or when your companys bought another . Is it over after youve given back . You never stop achieving. Thats why, at barclays, our ambition is to always realize yours. 23 minutes past the hour your fox news minute. The National Security centers, new data center in utah keep something from costa meltdowns in government officials not sure exactly why. That is according to the wall street journal which says there have been ten e electrical surges since august last year preventing the nsa from using computers with each meltdown cost 100,000. Secretary of state john kerry met with the leaders of russia and china to discuss the situation in syria and other world hot spots. He is standing in for president obamas and asian economic summit. In sports the l. A. Dodgers are heading to the National League championship series after beating the Atlanta Braves 43 in a dramatic home run, the dodgers are the winner of the st. Louis pittsburgh series. That is your fox news minute. Back to you. Cheryl time to make money with Charles Payne. Is talking the Downside Risk of the market but first and foremost charles has something to say on what is bugging me. Charles dennis was spot on. The redskins mascot is of fraud, brave, strong warrior type indian. 5 was in the and i would be proud to watch the redskin games and i never thought was so offensive that all and it reminds me in the 70s when they talk about black exploitation movies when they came out with black actors and as i got older everyone said it was bad for black people but the black male was the hero, he wore gray clothes, fought back the man, made love to a beautiful woman, where was the exploitation . People need to be careful about being manipulated the wrong way. To your point of the American Indians have more to worry about. The Cleveland Indian mascot is a little goofy but that is a different thing. Cheryl you are talking possible Downside Risk to the market. Charles the market has been complacent. We havent seen panic. The bias is to the downside the word is complacency turn into a panic . I want to share some parameters with the audience. We have broken the 50 Day Moving Average which is a red flag. I use the exponential numbers which put more waiting and the current activity. 1600 is the key number. E nasdaqe key number, for the dow, 14,776 so we are a ways from those numbers but not far away. Always remember this, selling began selling, wall street has been cool about this but it is the proverbial snowball that becomes a boulder and gained momentum. If we break down those numbers you might see wall street take a harsher reaction. Cheryl appreciate it. Dennis the movie speed staying above 50 miles an hour or risk catastrophe but now the Affordable Care act is having employers pay below 50 people and costing jobs coming. Cheryl these ladies sets a record in miami by selling a house for 50 million and now they have moved on to first sought a. They will be in the studio. They will be in the studio. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. Cheryl once again i want to let you know we have the dow down 89 points, 14,846. A couple things moving the markets, we are getting comments from fed president that are crossing the tape right now and we will be going through those talking about the Balance Sheet and the decision and things like that but lets bring in Lauren Simonetti from the floor of the Stock Exchange, some more color on the markets as the tape shows, more fed comments which is never boring. Especially when we are not getting Economic Data because of this shutdown of the government, the dow three points off session lows, 97 points. Philadelphia Federal Reserve Bank President is speaking in johnstown, pa. And he says the fomc missed an excellent opportunity to begin the capering process last month. In september the markets were ready, we were shocked when it didnt happen so the table is set so to speak for that which didnt happen and we all know eventually it does have to happen and also saying he expects gdp growth around 3 for next year and the Unemployment Rate to stay near 7 so that is still a high Unemployment Rate if you years into this recovery. The last thing he said because the fomc failed to adjust the pace of asset purchases at the meeting and we are getting this right now believe the fomc has undermined the credibility of its dont forward guidance. These are powerful comments. Cheryl thank you so much and we are looking at our studio as well as comments from the fed president and he talks about gdp, one of the biggest questions we have, where the growth is going to be and he says 3 growth and i cant help but wonder if the shutdown of the government is going to defer any growth we would see in the market. Dennis the movie economists said a one week shutdown would shave a full quarter point off of gdp growth which is a huge percentage reduction in gdp growth. But the thought that the government, every week the government is responsible for a quarter point of gdp growth, that would be a bad thing. Cheryl looking for growth, addressing the Unemployment Rate saying we are at 7 , that will go through the end of the year, we wont make a huge mistake by putting 6. 5 rate out there. That is where we will begin to not take but at least address Interest Rates and watch inflation, a big gauges being hit and that is the scary thing about the u. S. Economy right now. Dennis if they settle the budget thing you could see stocks rocketed up because meanwhile the glitch is going to stop the fed from tightening up fast and a lot. If the markets become convinced of that stocks could rebound nicely. Cheryl i want to say as we are talking comments are coming from the fed president the dow is hitting session lows, we are a session lows for the Dow Jones Industrial 14,833 down 102. You saw the promo a moment ago peter barnes is going to be speaking with the fed president later today on fox business and also want to remind you the president will be making a statement of some sort and 2 00 eastern time and maybe a couple questions. Dennis this separate members say more things publicly than ever before it feels like and the more they talk more modeled the mess seems to get. Cheryl that is the fed. Something else for you you will like. The women behind last months sale of the famous for its sake mansion in florida and recordsetting sales in miami. There in studio. They will be talking the state of luxury realestate. Dennis what happens with a fake news anchor . Major automakers and big movie release . This little piece of brilliance. M p g . 25 infantry. You make a great team. 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That is the latest from the Fox Business Network giving you the power to prosper. Let twins. I didnt see them cing. I need a new investment pn. I need to rethink the core of my portfolio. Ishares core etfs are lowcost funds. So you can keep more of what you earn. Get started with the new ishares core builder. Design a personalized plan that can help you achieve your investment goals. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. Cheryl they a part behind the recent sale of the famous your sake nanjing and hold the record for selling the most expensive home in miami, three indian creek. They have their fingers on the pulse of luxury realestate market. Got to say we are the top team, the top realestate team in the entire country. What works about this partnership . I like to say we have magic. There is the synergy we have between the two of us that we bring together the knowledge of two s. It is like jill is equal to me and im equal to her and the knowledge and expertise we have in the market as well as how much we love the business, the passion we have. Cheryl you are both married but you are married to each other. This is a lifelong partnership. What do you think makes a Lasting Partnership . So many business partnerships dont stand the test of time, end up in Court Systems have the time. What is amazing is 25 years ago we worked at the same company and started doing business to get rid little by little build up a foundation of trust, the same work ethic where we work raised by the business and never could stop and continued that. It started on a handshake, our partnership. And now we have just reaped the rewards of hard work. Cheryl talk about of the rewards, you sold the mansion, he was murdered there, sat around for years and years and finally sold for close to 50 million but the original asking of 125, were you disappointed it didnt go for full value even though it did sell for 50 million . I would love it to sell for 125 million budget went into Bankruptcy Court so it took on a different aura and we had bidding that went on, very active auction and it sold for 41 million so we were pretty happy. Cheryl one of a things i found interesting was the resurgence of miami realestate and florida realestate. We were going down to buy a hundred condo flaps to make investments. Now miami is one of the top ten realestate markets in the nation especially south beach. What has changed in the last year . Our market was one of the first to have the rebound that it did. As far as coastal communities. Everything is water, the beaches, the ocean, the weather, the bay waters and the sun every day but what has also happened is we are seeing the capital flight, people from south america, europe, people who want to make their investments, they want their money to be safe as well as their wellbeing, they want to be safe so what do they do . They are coming to the most beautiful place and investing, they want to put their money in hard assets. We are not driving in bulletproof cars. Cheryl you are not but at the same time if you look at the miami byre, she is saying it is international. A lot of International Investors are parking money in miami which is not a bad thing. Is that the trend that is still happening with the luxury buyer . I do but i also think a lot of people forget people in this country, from new york, new jersey, philadelphia, the northeast corridor are coming to miami and buying those properties, buying all properties in all price range, not just a luxury properties. People are going theyre not just the south americans and europeans and russians. The third of our business is gold americans. Cheryl i want to say the buyer, came down to a bidding war, mr. Trump was one of the people bidding. It is going to be a hotel. It is kind of a hotel but kind about monument honoring johnny in the hotel. So we will stay there. Will be interesting. Congratulations on being the no. One team in realestate in the country. Thank you so much. Over to you. Dennis the new 50 healthcare law creating at headache for Small Business owners and keep in the payroll at fewer than 50 people exempt the offering obamacare but hurts job growth or does it . Joining us is dean martin, president of marks group, you consult smallbusiness is on this and other issues, thanks for being with us. So you argue no business that needs 51 employees will not hire that 50 first person because of the cost of obamacare but are by better off if i am a Small Business under keeping it at 49 . What is interesting is last week, hartford insurance came out with a big study, a couple thousand smallBusiness Owners, 38 of them said they would cut back on hiring to stay below 50 because of obamacare which is an interesting number. The legislation is affecting Small Business owners but i contend if you are running a Small Business like i am i dont think the benefit, the requirements will stop you from growing. I dont think you will hold yourself back from 60 or 70 employees because of Health Insurance. Some made that there are other ways to get around obamacare and deal with the law. About voters are considering. Dennis the cluster distribution of Small Businesses, what perce have fewer than 50 . Should have been 100 employees the the cut off . A great question. There are thirty million smallbusinesses in the u. S. Alone, 2 are the ones that have more than 100 employees. Abreast have less. It would have made a big difference if they would have expanded a little bit for employers or at least less than the one hundred employees if they had gotten a break but there are options and let me tell you what they are. If you have more than 50 you can always take the mr. Burns approach. The character from the simpsons, cut out Health Insurance altogether, and i will pay the penalty, it is only 2,000 and eliminate the first thirty employees from the calculations of paid the penalty and tell your employees to get their own insurance. I dont think a lot of employers will do that because it is a benefit to your employees and you care about your employees and want to stay competitive but it is an option. Dennis did they not set the fine high enough . 2,000 it costs 10,000 to cover each employee. Exactly right. It tells you the big decision lot of Business Owners have to make. You are paying 5 or 6,000 per employee for Health Insurance, the government is saying to you if you get rid of your Health Insurance you can penalty of 2,000 and dont have to pay the penalty for the first thirty employees so what would you do if you were running a business . Hard decision to make. Dennis people in your company, do you offer Health Coverage . We do. We have Health Coverage, only ten in my company and we offer Health Coverage and it is not a requirement for anybody to do and the reason we offer Health Care Insurance to our people is we want to stay competitive with the next guy. Other people in the industry i am competing with them for good people. Dennis so the of freemarket and he wants to hire the best people that you cover your employees even though they dont have the over 50 mark of obamacare. Theres a lesson somewhere in there. Thanks for being with us today. Cheryl time for stocks on the floor of the Stock Exchange and bring in alan alvarez. Volatility is the name of the game and over the last ten minutes we had an intense amount of volatility down 106 and now were down the on the dow. Is it more federal related or is this more of that kind of showdown over the shutdown we are so worried about . It is all about the shutdown, not the fed. Still hard line talk out of the white house and congress. We do get the president speaking at 2 00 but the vix over 20, the dow over 250 points though overall one month trading higher for the first time in ten years, operating out of londons of people are getting nervous and nervous people dont buy stocks. Cheryl thank you very much. From equities to oil, leila is making a come back after several sessions of oil being down, the trading pits of a cme, phil flynn waiting for the other comes up for what ever else you want to say. Dennis jeff will peg the prices are coming back because they realize this little Tropical Storm we had on the gulf of mexico really continues to shutdown production. One third of oil and Gas Production are still shut down. It is coming slower than anticipated bringing up oil as well and the historic change in the recent trend, the winter fuel the outlook for the Energy Information administration. For the first time in a long time people he their homes with natural gas and heating oil going to spend more to heat their home. People with heating oil will spend less. That is the opposite of the trend we have seen for a lot of years and a testament to the rising u. S. Oil production in the u. S. Back to you. Cheryl sums up. Dennis in the media minute a canadian theatre chain launched a new product called superticket. Pacific rim one of the first movies in the chain, bundles a theater ticket with the purchase of a digital copy of the film when it opens months later. Three films were sold this way,s pacific rim which rated 400 million at the box office, smirks sequel and universals kick ass equal. This gives the runners the Digital Sales for the first time but Hollywood Studios market dvd at once, cant figure out how it helps movie ends. There is this, funny man will ferrell, ron burgundy hired to do commercials for the dodge and recorded 70 different ads for dodge and the terrain go. Some funny stuff. Take a look. Precision, elegance, grace and form, truth and function. Sometimes the luxurious things in life what you doing . Get out of here get out of here hundred times they cant dance in here. I cannot wait for that movie. A surprising battleground taking root in the fight over genetically modified crops coming in the west coast minute. Dennis abiding and redskins to change their name going too far . Your response to what is bugging me coming the. Look at todays winners on a down day at the nasdaq. Cheryl time for your west coast manage the fight over genetically modified crops needed to the shores of hawaii. Over the past few years with sugar and pineapple fields disappearing many landowners turn to biocrops, state legislators are considering putting more restrictions on Agricultural Companies and farms using this technology, production contributes 264 million to hawaiis economy and supports 1400 jobs according to an industry report. Seattlebased, filed for 100 million ipo. The childrens and Womens Clothing site made a confidential filing with the fcc like twitter did that happened earlier this year. The valuation currently estimated at 1 billion. We will keep you posted. Finally, the Government Shutdown, will let her skis season . An Industry Trade group says no evidence the shutdown will hurt resorts, many of which sit on federal land. According to the National Ski Areas association most expansion project and construction requiring federal approval have been completed. And the ceo of bell resorts will be on the show. That is your west coast minute. Dennis changing the name of the redskins is going too far to be politically correct . Heres what some of you had to say. Harper jones says, quote, the whackos will be raising hell about the cardinals, the ravens, broncos, etc. Lisa schwartz says Political Correctness and puritanism went too far. Hello, first amendment, chris walker concludes why doesnt the entire country play the silent game so we dont offend anybody. And team brophy says two towns past Political Correctness. The Government Shutdown and unemployment are a hot mess and obama focuses on an nfl team named ridiculous. Cheryl in the gray area. Lets look at the dow down 92 points, picking up steam, barely off of the session lows. Heritage capital, coming up in the next hour. The real risk of the debt ceiling deadline and what he thinks about the default deniers as he calls them. Dennis the president set to speak at our from here, fox business bringing that live and the statements and questions that follow. announcer scottrade knows our clients trade and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. Do you mind grabbing my phone and opening the capital one purchase eraser . I need to redeem some venture miles before my demise. Okay. Its easy to erase any recent travel expense i want. Just pick that flight right there. Mmm hmmm. Give it a few taps, and. Its taken care of. This is pretty easy, and i see it works on hotels too. You bet. Now if you like that, press the red button on top. How did he not see that coming . Whats in your wallet . Cheryl is the market starting to sit up and take notice . I am lori rothman. Adam i am adam shapiro. Why this is just another case of washington crying wolf. Lori the president has reiterated he will not negotiate. Byron dorgan on why no one is coming out of this a winner. Adam the biggest weekly hit since the lehman crisis. Ceos are taking notice. Lori k. T. Mcfarland joins us about why is now the time to keep our eye on the middle east. Lets head to the floor of the new york Stock Exchange. We find Lauren Simonetti there. Down. Down about 220 points. Down 11 of the last 14