Spotlight on lowest risk investments around. Money market mutual funds, we got answers to your questions. And healthy prognosis. Some of the most prominent leaders in health care from Drug Companies to insurers discuss the massive change the industry is going and what it means for their business. We have and that more on nightly Business Report for this thursday, october 10th. Good evening everyone and welcome. Stocks rose on hopes that a deal was within washingtons grasps, such a deal could be very elusive. More on that in a moment. For this day, at least, wall street set worry aside. The dow had the best point gain of the year, second best day in percentage terms all year long. The u. S. Dollar hit a twoweek high. Treasury Bond Yields Firm and Strong Demand at auction for 30year securities, this on hopes the white house will go for a gop proposal to extend the Borrowing Capacity for all of six weres. The dow soaring 323 points, erasing all of this weeks losses and closing back above 15,000. The nasdaq shooting up 8 three points, but still on track to break a fiveweek winning streak and the s p 500 rose 36 points with all ten of constituent sectors seeing gains. In washington tonight, a crucial meeting at the white house. Moments ago Republican House leaders wrapped up an hourlong meeting with president obama. On the agenda offering that temporary increase in the nations Borrowing Limit that tyler just told you about in exchange for a promise to negotiate over the longterm deficit reduction and a tax overhaul. But reopening the government is not part of that republican offer. John harwood has the latest on the white house. John, what are you hearing . I know youve been on the phone. Well, thats a reason that the president may have rejected the republican offer is because it doesnt reopen the government. The president s condition, remembers, have been both reopen the government, raise the debt limit, then well negotiate about the budget. The speaker was trying to walk a line today saying well do one and not the other. They have had this hemeeting. More talks will continue. The president feels enough confidence in his position and a new nbc wall street journal poll shows republicans are losing the fight for public opinion. That emboldened the president to say no, well not take the deal on your terms. Do the poll numbers indicate the gop is being blamed for both issues, the debt ceiling debate and Government Shutdown . Is that the reason that their positions seem to be softens just a bit and the whole discussion of obama care for now, at least, seems off the table. Yes, republicans are not process of giving in, of caving, surrendering, whatever you want to call it because they are getting pounded in public opinion. The wall street journal poll i mentioned, 53 of the American People blame the republicans and only 31 blame president obama. Thats a higher percent than when Newt Gingrich battled with president clinton in 1995. The president has the upper hand, and hes going to try to make sure he gets a resolution on his terms, and remember what his terms are are im not going to pay a ransom for the normal functioning of government, normal functioning of the treasury. I still think, though, that because republicans are moving, we are likely to get a resolution by october 17th, which is when the treasury says well hit the debt ceiling. That resolution, john, do you think president obama would be agreeable to this very temporary solution, a sixweek deal and then reopen everything again in november or is even that not for sure . No, i think he would accept a shortterm deal as long as it involves both things, the reopening the government and raising of the debt limit because the president said hes not going to engage in negotiations until both those things happen. They were testing, prodding, seeing what they can get out of this and it sounds like the initial gambit didnt work but they will talk through the night and i think they will find a way on a shortterm basis to take both of those actions by october 17th and then we will, in fact, have a i believe a budget negotiation over, you know, replacing some sequester cuts with longer term entitlement cuts. Busy day in washington. Earlier today, jack lu testified in front of the finance committee saying failing to raise the governments Borrowing Limit would be deeply damaging to financial markets, threatening americans jobs and savings. He urged congress to expand the debt ceiling as long as possible. This economy would benefit from more certainty so the longer the period of time is, the better for the economy. Its really Congress Decision how often it wants to vote on the debt limit. Our guest tonight is skeptical about a debt limit and the stock market rally. Hes chief u. S. Strategist. Hi, david, what is worrying you . Is it this shortterm sixweek deal or Something Else . I think the latest news suggestions we wont get a deal tomorrow or even by monday, so this is already disappointment to a market that got hopeful during the afternoon. I think the market sales off 30, 40 points on the s p 500 tomorrow. But the good news is investors didnt want the sixweek deal. They want a longerterm deal that has more compromise and structure reform to it, so disappointment to the short term but we think we get a better deal by late next week or it could even take longer than that. We think ultimately, a deal is reached, Interest Payments are not missed and the market climbs higher by the end of the year. So david, i hear you say that 320 odd some point gain today on the dow could be a 320 some odd point loss tomorrow. Thats precisely right. There was ah lot of high hopes today what could happen and i think were getting a dose of reality this isnt over yet. I think secretary lew did a great job of reiterating the 17th as an important deadline and the increasing risks after that and i think that will focus minds for next week, late next week. But the reality is, the government is likely to stay shut for longer and there will be more volatility in markets. We think this is an attractive entry but there will probably be a better opportunity next week. So are you saying investors should sell into the rallies, buy into the rallies or sit tight . I think investors will make money by the end of the year and more money if they wait until next week. How tactical they want to be. Im constructive on the market. Equity markets still attractive versus other asset classes, thirdquarter earnings, which will pick up steam in the next couple weeks will be healthy and i think what well get is a glimpse of how good earnings can be, corporate confidence on investment spending without disruptions coming from politics. I presume you just heard john harwood who is reporting and instants indicate to him some sort of deal reopening the government and raising at least temporary the debt ceiling will get done by that october 17th date. I hear you a little more skeptical of that, that it might slip beyond that date and maybe into the week after next. What would that mean in practical terms, both to the markets and to the functioning of the federal system, which is roughly 80 open as it is today. Right, we do think a deal is likely achieved by the end of next week, the 18th, kind of last minute, one minute past midnight, if you will, that type of deal. We think thats the most likely scenario and we have to acknowledge that that date is not necessarily a very hard deadline. This could easily go on for the rest of the month, and i dont think the equity market suffers a 10 corporation. The s p is 1690, it got as low as 1648 just yesterday. I think it would take a lot more rattling of investors nerves, which have been there so far to breach anything like 1620. But yes, youre right, the longer this goes on, the more of a risk to investor, Business Manager and Consumer Confidence and in the end it should be resolved but it could do lasting damage. Were certainly seeing some of that already. Thank you. Thank you. Chief u. S. Equity strategist. First Fidelity Investments and now jp morgan chase, the biggest bank hedging bets and selling off the holding of u. S. Government bonds scheduled to come due between october 17th and november 6th, around the time of that threat and debt ceiling limit about one week from today. Tentative the signs of progress that the white house and congress may be near a deal of raising the debt limit and averting a government default. Yields on treasury bills tumbled today. Until today, rising yields signalled fears that uncle sam might not pay shortterm obligations. One reason we reported yesterday the big fund company fidel did said its not holding u. S. Government debting set to come due. Thats what you find in money market funds. So how safe are the funds that most americans consider as rock solid as cash . Sharon epperson takes a look. Reporter the on going debt ceiling debate has many investors concerned about what a government default would mean for their money. Im worried about Interest Rates for the Real Estate Market and what would happen to my 401 k. Im worried. Im on Social Security and its starting to threaten that, also. I have to pay my bills and likewise, the government has to pay their bills. Reporter some are even worried about investments like money market mutual funds that are typically considered very safe. Money market funds invest in ultra shortterm debt including u. S. Treasuries and generate more interest than a money market deposit account. That makes these funds attractive to many investors who invested nearly 2. 7 trillion in these funds. But if Congress Fails to reach a deal and the Treasury Department faces a technical default or worse, runs out of money some Fund Managers dont want to hold on Government Debt that cant be repaid. They would rather say we dont have any of that, that certain date that may come under question or may have a delay in payments. Reporter the nations largest manager of money market mutual funds, Fidelity Investments is taking precautionary steps by not owning treasuries that mature in late october or early november. To be safe it increased the amount of cash in u. S. Treasury funds. Today jp morgan followed suit. Another big money market manager says it continues to hold treasury securities that will mature in the coming weeks. Its confident they represent no threat to the liquidity or stability. Fed rated believes at the end of the day there will be a resolution and even if it takes a few weeks, the treasury will pay the debt. There may be a technical default or game of chicken played over the next week, two weeks, three weeks but investors in treasury money funds will get money and get 100 cents on the dollar. There is no doubt about that. Advice to anxious investors, sit tight, dont overreact to the headlines. Financial advisors say nine times out of ten, doing nothing is the best answer and this is one of those times. For nightly Business Report, im sharon epperson. Now, another casualty of the Government Shutdown, the national Highway Safety administration is part of the Transportation Department was forced to furlough the employees that investigate driver complaints and order vehicle recalls. The shutdown is being felt in all 50 states. A ranking by wallet hub has ranked maine as the states fifth most impacted by the work stop make. Mary thompson traveled to tell us. Reporter its anything but a state with strong ties to the federal government. Were in a state of anxiety at this point, to try to determine and try to monitor what is happening in washington and what the effect would be. Reporter Michael Brenham says maines largest city is seeing little impact from the shutdown so far but given an average 4 plus of the population depends on federal contract dollars for income, he knows that could change as the shutdown drags on. The shutdown on rising tide brewerys bottom line, the owner cant get a Small Business loan needed for expansion. So shes going to the banks and the state. It will be more expensive if we end up using the state of maine, for sure. Reporter a specialty brew she hoped to ship out of state at christmas may not leave maines borders because the federal office that approves labeling is closed. And rising tide supplies 2. 5 hours north of here, Arcadia National park, no no sells to tourist means no orders for beer. Some potential homeowners hoping to toast new homes, put on ice. They cant get the needed Rural Development loan. Its a Government Agency and they have completely closed dun so nobody is answering phones. The website is taken down. So basically, they are shut for business. Reporter washingtons gridlock slowly taking hold across the country. Im mary thompson, nightly Business Report. Still ahead on nightly Business Report, the Health Care Industry is undergoing a ship and how its impacting their business. First, here is a look how the International Markets closed today. Some wellknown individual retailers released september same store Sales Numbers today showing an overall increase of just 3 from the same month ayear ago. Sales at its Victoria Secret stores rose a disappointing 1 from last year after marking down more items to get more traffic into its stores. The teen retailer zoomies, the buckle and American Apparel reported sale declines and at the gap and old navy and Banana Republic were down 3 . Spending on health care is a major expense for many families and today some of the biggest names in health care gathered in new york sit toy to talk about the impact of the Affordable Care act and what the new law means for families, companies, and shareholders. Bertha coombs has the story. Reporter executives at this years Forbes Health care summit says the launch of open enrollment for the Affordable Care act is problematic. As a brand it certainly has not helped build brand credibility with the launch and execution. Longterm, i think its noise and will settle out. Reporter at cvs care mart that is taking a role to help customers, they are finding customers confused and frustrated. They are frustrated what are their options, how do they sign up . How do they find out information and heard about glitches early on. We try to reassure them the insurance doesnt take effect until january. Reporter its the continuing discord that concerns tony coles, especially funding for disease research. That 5 goes for that tomorrow. We have to unlock what we know about the genome and cancer and made such strides for hiv and aids. We have to invest in research for the next 30 or 40 years. Former aetna ceo sees it as a longterm problem. It was a complicated bargain, a bargain one side of the isle participated in and will hunt us for sometime. Reporter he says it will likely take a couple years of the Affordable Care act actually being in place and people being covered before both sides come together to try to form some agreement on how to move forward. Bertha coombs, nightly Business Report, new york. For more on this story and other Health Care Stories that weve covered on nightly Business Report, go to our website, nbr. Com. A major energy deal, reagain see Energy Partners will pie the rival gas pipeline operator pvr for 5. 6 billion including debt and gives it a foot hole into shale fields. It is at 25. 44 and pvr to 25. 75. Two of the smart phone makers cofounders are considering a bid to buy the company. According to a filing, mike and douglas have an 8 stake in blackberry and considering making a bit for the whole company. The stock up 1 to finish at 8. 20. Cutting the work force by 5 , the move accelerates the Cost Reduction plans and comes as other Drug Companies downsize their operations. The stock gained 3. 5 to 40. 59. Gilliad shares rose thanks to successful results of a trial of a leukemia strong. They are stopping a latestage study because patients improved substantially. It will talk about getting approval. It closed at 62. 74. Shares of tiffany upgraded at stern ag. The firm says the luxury retailer will benefit from a rapidly growing International Business and rebound in the u. S. Operatio operations. The analyst reiterated his price target of 86 a share. That powered up the stock by 2 to 75. 38. China has over taken the United States in an important met trick but not something to be necessarily proud of. China is the Worlds Largest importer of oil passing the u. S. Just as this country produces more energy than ever before. Chinas energy appetite comes from the need to fuel and expand the sector and as the middle class grows, to fill up millions more gas tanks. Coming up, what will the home of the future look like . The cutting Edge Technologies that could one day power your house and the companies behind them but first, a look at commodities, currencies and treasuries today. If it feels like youre seeing more mobile ads before on your smart phone or tablet, its not just you. Spending on mobile advertising nearly doubles from last year to 3 billion in 2013 and that amount is just for the first half of this year. Shipments of personal computers sliding again last quarter. Gardener, an Industry Research firm reports shipments of new pcs in the just completed Third Quarter declined by 8. 5 . The back to School Season failed to deliver the usual boost in computer sales. Good news in housing, more homeowners are keeping up on loan payments. The number of u. S. Homes entering the foreclosure process during the Third Quarter of this year fell to a sevenyear low. The homes of the future are already here with rooms that move and roofs that melt. Those features and more on display at the socalled solar decathlon. Its a competition going on in irvine, california and hosted by the department of energy. Teams compete to construct and operate the most Energy Efficient home. Diana olick explains. Reporter beautifully designed, Energy Efficient, super high tech and conceived and build by students. Took a lot of mistakes. Reporter at stanfords house a unique room switch controls lights, fans, outlets with different motion sensors but the real seller is under the hood, so to speak. A selfcontained home enagain. It has major mechanical, electrical Plumbing Systems and the idea is this can be manufacturered in the factory and shipped on a standard trailer bet. Reporter 19 teams build a neighborhood in this irvine park after spending the past year designing them back on campus. This years competition added affordability to the mix. We used local source materials, research, appliances making sure they were high efficient and met the price point and quality because everything has to have longevity and last. Reporter the products the students are using are from Major Companies cashing in on energy efficiency. Full home automation, ge, bosh, frigid air and san owe, sun power and more. The ideas may seem futurelike like this home that opens on rails, but the nations big builders are watching and using what they see. Weve been working to be a part of future technologies, incorporating today the things youll see more and more as we go into the future. Reporter at a new lennar community a stones throw from the competition, solar is standard and home automation and drywall that absorbs toxins. You can even get a charger built in for your electric car. These technologies are evolving every year. The costs are coming down. Prices are coming down. Its becoming more and more affordable. Reporter and more durable. As natural disasters are common, homes of the future must with stand the weather of the future. This home has shatter proof windows, a collapsible roof and a bathroom that doubles as a safe room. Im diana olick in irvine, california. Fortune magazine is out with the list of most powerful women. The top three slots taken by leaders of some of the nations most established companies. Ellen coleman at due month, number two the chairman and ceo of pepsi and jenny the chief executive founded more than a century ago. In light of yellens nomination, i wonder where they would fit . Probably number one. Probably. Interesting the number of women from tech companies, cheryl sand burg and meg whitman of ebay. Hp. Hp, used to be ebay. A lot of powerful women on that list. Thats nightly Business Report. Im susie gharib, for more join us on our website at nbr. Com. Im Tyler Mathisen have a great evening everybody. See you back here tomorrow night. Nightly Business Report is brought to you by. Thestreet. Com, Financial Media tools for an ever changing financial world. The dividend stock advisor guides and helps generate income during a period of low Interest Rates. We are thestreet. Com. Announcer a kqed television production. Its like sort of old fishermens wharf. Like family discount. A little like jeangignon the calories its like an investment. Oatmeal with a touch of wet