Josh, or is there a timing element here because you wonder what is going on, why stocks are getting hit at this point . Its interesting. I was talking to traders today and some of them said listen, if you were concerned about this shutdown, if you were worried about the shutdown, if it had gone on longer than you anticipated, then why not trim some of those gains and some of these high flying stocks moved to the sideline until you see resolution or clarity about what will happen next inside the beltway. Josh, obviously, washington is the trump card but earnings are very poet tant, as well. Sure, alcoa informally kicking off the earning season. If youre a bull then youre wagering you will see, tyler, some resolution in d. C. And also, youll get a positive earning season, that you will get better than expected data points for traders, investors and analysts to look over and provide hopefully the next positive catalyst for the stock market, guys . Josh lipton reporting from Silicon Valley tonight, thanks, josh. The situation in washington, day nine of the partial Government Shutdown and just eight days to go before the government hits the Borrowing Limit but today, some signs of a possible fall in washington to end that political deadlock. President obama will meet with Republican Leaders at the white house as pressure builds on both sides to resolve the budget inpass and avert another financial crisis and a possible default on the debt obligations. Congressional leaders met and a charity called the Fisher House Foundation announced it would pick up the cost associated with the suspension of death benefits for fallen members of the military. Many on wall street are sure officials in washington will work out a deal to raise the nations Borrowing Limit and avert another financial disaster but one of the biggest Money Market Mutual Fund makers appears to be hedging. F fidelity is serving off the debt due around the nation will hit the credit limit next week. The Company Remains confident it says that the debt ceiling issue will be resolved but said its taking precautions to protect investors. For business leaders, the gridlock in washington cant end soon enough from wall street to the boardroom, they are calling for a resolution in washington. You were elected to lead the country in all issues, all of the people in country, not just your constituents. You need to basically listen to the will of the people. We need to stop fighting yesterdays elections and we need to move on to solving tomorrows problems on the longterm basis. Its anybody in business who has ever negotiated where you make mistakes, the end of the game where you put the whole institution at risk. Its just absurd and frankly, shame on congress. While the National Retail federation joined those voices today. The Organization Says the shutdown could hurt consumer spending. Here to discuss more the chief lobbyist david french. Welcome. Thanks, sue. As that begun to affect the consumer as we see the impasse in washington stretch on . Retailers are on the verge of a 600 billiondollar holiday sales season and we anticipate adding 720,000 or more seasonal jobs this fall and holiday season. Were very concerned the consumers are watching what is going on in washington and reconsidering whether or not they will be involved as aggressive siely as we were anticipati anticipating. The economic Consumer Index showed a 12 point drop, the largest one week drop since the collapse in september 2008. David, what are you telling your friends on capitol hill . Were telling both sides to put aside their differences and get back to work. There are serious issues at stake in washington. We have a tax code incompetitive globally and immigration system thats broken we need trade practices to help us compete around the world and these discussions arent happening while the shutdown is going on. How long does it take the consumer, once they do start to pull back, which apparently, it sounds like they are doing according to the latest poll, how long before they regroup and get back in the swing of feels or do you think well feel the effects for sometime to come. Well, its not too late and were encouraged both sides are starting to talk again and encouraging both sides to continue discussions and end the gridlock right now. You know, david, i noticed over the past couple weeks, a number of companies, walmart, amazon adding or intending to add tens of thousands of Seasonal Workers to the payrolls. The Government Shutdown must throw a wrench into that, both with respect to the paper work that you need to file for the irs but also to the extent that some individuals may have immigration issues involved in their hiring that you cant get that stuff done as easily with the Government Shutdown. Thats right. Many businesses use e verify to check immigration status, and you cant use the e verify system now. It doesnt mean you cant hire but makes it more complicated and costly to add additional jobs. The uncertainties weighing down on a number of different retail operations. If youre trying to bring products in from overseas, the Customs Service is working, but other u. S. Agencies that support imports arent working, so its much harder. You know, just the smaller Retail Outlet suffer more than the big Retail Outlet, or are those Small Businesses having gone through the 08 financial crisis better prepared this time around . Well, i think everybody is suffering and certainly, if the consumer pulls back, the suffering will be spread widely, but i think the i think the in previous in previous Consumer Confidence shocks, the customers come back reasonably quickly once the situation is resolved. All right. David, thank you very much. David french with the National Retail federation. Still ahead, we told you about hidden dangers of puerto ricos bonds and how they are tough to way on a large number of uni bond funds, maybe some you own. What is one politician is doing about it but first, how the International Markets closed today. Hewlett packard, one of three Companies Kicked out of the dow met with analyst to talk about the past year, one that Ceo Meg Whitman called a fix and rebuild year but whitman also told investors she expects revenue to stabilize next year and business to accelerate again in 2015. It sent shares of hp 9 higher. Also meeting with wall street analyst and investors, nike, one of three newly added to the industrial average. Jane wells got a firsthand peak of the Athletic Apparel and shoe outlook for growth. Reporter nike long ago raced past competitors but the ceo says this is a Growth Company because the world is a great company. Over the next decade, we will see the worlds middle Class Population grow by one billion consumers. Reporter thats a lot of feet to cover. Nike is projecting revenues will grow from 25 billion to last year to 36 billion by 2017 and niek cow. Com sales could quadruple and apparel sales should grow over 30 and a special emphasis on attracting more women. If you run a mile, run a race, you know what, run a marathon. Reporter the company is revamping the strategy in china hoping to entice shoppers to wear more than shoes and preparing to grow in brazil with the world cup and summer olympics. Womens is a fantastic opportunity and most people dont realize but we have a 4 billion Women Business today so the retail value of that is probably double. Reporter this could be a big part of nikes future but isnt yet. The top of this shoe is basically made of one piece and cuts down on materials and labor but cost 160. There is a less expensive version in april. Some analyst wonder how long it will take for a shoe without any visible bells and whistles to catch on. Consumers are smarter and realize more and more they can get a great product because when they put it on, the feel and experience of that product is far more innovative than just seeing technology that doesnt work. Reporter nike shares recently swooshed to an alltime high but so did under armor, a smaller but fastgrowing competitor with huge ambitions. Nike may have tiger woods but under armor has his girlfriend. Nike responds better when their competitors are doing better. They want to keep the distance they invite harder. Reporter in an economy where consumers seem hesitant to spend, analysts say Athletic Apparel is a standout. Can nike protect the lead . The pressure is on to just do it. For nightly Business Report, jane wells, beaver ton, oregon. Mens warehouse said to joseph a. Banks youre not going to like the way this looks. Mens warehouse rejected a takeover offer from joseph a. Bank that offered to buy the bigger rivals. Mens said the bid was under valued and shares of mens warehouse rose 27 to 45. 03 and joseph a. Bank to 44. 33. The Cloud Computing Software Maker citric systems says results will miss current estimates. The ceo is disappointed but remains confident. Shares fell sharply after the closing bell after the regular session at 66. 66. Costco missed its earnings estimates. The bulk sales and lower gas prices were to blame. They plan to open 36 new clubs this year. They slugged off the miss and ended the day 2 higher at 114. 59. 10 for the fourth quarter, the company paid a Cash Dividend every quarter since 1936. The stock rose fractionally to 10 2. 84 and the fda placed a partial hold on a drug trial after a number of patients involved in the study experienced blood clots and heart damage and sent it down 66 . Yesterday nbr told you about the Municipal Bond crisis in puerto rico. Today massachusetts secretary of state William Galvin is launching an investigation into the sale of those bonds to the residents of the bay state. His office sent letters to fidelity, and ubs inquiring what Fund Managers knew about safety of the islands bonds and when they knew it, whether before saling it to investors in the state. Joining us to talk more about puerto ricos looming debt crisis and how it could affect your investments is candice. Welcome. How many Municipal Bond funds have put ricken debt in them and how has the most . Well, thanks for having me. Based on the latest numbers available to morning star, we found there are more than 400 openend mutual funds with exposure to debt and the market value of that exposure is roughly 16 billion. Puerto rico had trouble for sometime now so why would the funds buy that debt . I assume they are reaching for a yield, for an Interest Rate that is higher than they can get elsewhere, is that correct . Thats right. Puerto rico is facing pretty severe fiscal strains for a number of years and the economy contracting since 2006 and unemployment high but at the same time despite the strains, they have been able to maintain an Investment Grade rating, but have traded at relatively attractive yields compared to other Municipal Bonds. In audition they offer triple tax exempt benefit, which has been very attractive to u. S. Investors in that the interest comes from puerto rico bonds is except from federal state and local income taxes where they exist. As i understand it, candice, a lot of the bonds that have large slugs of puerto rican debt in them are off and that presumes investors are marking down the prices on a possibility of a default. How do you handicap the possibility of a default and how should i, if i invest in a Municipal Bond fund, at what level does the exposure become trouble system . Yeah, so first i would pref face by saying there is a lot of different types of puerto rico debt. What is generally talked about is the commonwealth general obligation bonds, which actually have a constitutional guarantee on that debt repayment. So the puerto rico constitution stipulates that payment of that debt supersedes in priority the payment of current payroll expenditures and the flexibility to reclaim other revenue so its a general excuse me for interrupting, if its a general obligation bond, you get paid . Thats what the contusion is promising and the government made a number of statements, you know, confirming they are diligent about their commitment to repay that debt. This doesnt necessarily soften the severe amount of stress they are currently facing still, however. So as an investor, i would probably want if im invested in general obligation bonds, i probably want to hold shorterterm bonds than longer term because we dont know how the economy may or may not further deteruate into the future. If default is not the likely outcome, what about a daowngrad and what would that do to the value of the bonds and the portfolios and hold it . Yeah, so a downgrade is certainly something that we dont rule out the possibility of. To my knowledge right now all the Credit Rating agencies have negative outlooks on puerto rico siting concerns about the very weak economy and whether puerto rico will manage to bring in revenues they are budgeting for this year. Should a downgrade happen, i think this will exacerbate the sale off. Recently they downgraded, recently moodies downgraded sales tax bonds in puerto rico and we seen the yields for those bonds jumped up quite significantly. Certainly, i think that the market activity that we see now would be further exacerbated. This is helpful. The bottom line is even if you own a mutual fund, its a collection of individual securities and you better know what is in your fund, right, candice . Absolutely. We reiterate that Due Diligence is important. We seen there are a lot of single state muni funds from rodchester, single funds that have a significant exposure to puerto rico, suspects 20, 30 and suffered significant losses year to date because of that exposure. Thank you very much. Associate municipal credit analyst at morning star. Coming up, technology e education and business, what startups are doing to make learning more effective and more accessible. First, though, how commodities, treasuries and currencies performed today. There under score, may be a deal in the works to make federal charges against the hedge fund and the billionaire funder go away but it will cost him a ton of money if it happens. The securities and Exchange Commission is asking for 1. 8 billion to make a criminal Insider Trading case against steven acohen disappear. He agreed to pay 600 million to settle civil fcc charges and avoid a trial. At the annual Education Summit this week is combatting the skyrocketing cost of higher education. So some investors and entrepreneurs are jumping on a new opportunity, ed text startups, companies schools use new technology to bring Educational Opportunities to students almost everywhere. Julia boorstin has more. A hot top pick at nbcs education nation conference is ed tech. They use technology to make education effective and accessible. The internet mobile devices and social tools are giving students new potential, giving those thousands of miles away free access, the best educational institutions in the world. Anybody in the world should be able to take high quality courses whether at the College Level or high school. They should be able to take it freely. The amount of investment in ed tech quadrupled to 630 million in 2012. Over the same period, the number of companies funded quadrupled from 23 to 95. With tablets and open content we can have blended high schools that give hundreds of millions of kids a shot at college and the idea economies. One of the areas drawing the most attention is higher education. Startups offering free online courses from top universities. Like corsara that raised more than 65 million. Already generating more than a Million Dollars in revenue and launching an alliance of educators and employers, nine mayor Companies Including google and at t to help them provide training for employees and offer online classes and curriculum to help students prepare for tech jobs. They helped schools like georgia tech offer a paid Masters Program for less than 7,000. But its not all for profit companies. Harvard and mit created a nonprofit. For students that get better education, they get more access. Reporter they partnered with a Corporate Giant google to launch what it is calling youtube for free online courses. To make a class as accessible as a funny video. For nightly Business Report, im Julia Boorstin from education nation in new york. And finally tonight, an unexpected consequence of the government shut down, no new kaft beers. The little known alcohol and tobacco tax and trade burro, part of the Treasury Department in charge of approving new kraft beers and recipes. There will be plenty of beer on shelves but the seasonable brews from small beer makers that may have to await the shut downs ending. Is nothing sacred . Nothing is sacred. Dont mess with my beer. Thats nightly Business Report for tonight. Im sue herrera, susie gharib is back tonight. Im tyler mathisen. Have a great evening everybody and we hope to see you back here tomorrow night. Nightly Business Report has been brought to you by the street. Com, interactive financial multi media tools for an ever changing financial world. Our dividend stock advisor guides and helps generate income during a period of low Interest Rates. We are thestreet. Com. Join us and see if the resurrected Jeep Cherokee is worth bringing back. Pat goss smokes out a few common problems down at goss garage. We celebrate two decades of doing whats right for all of us. And for th11th time, well see whats new with an allnew Toyota Corolla so come drive with us, next announcer motorweek , televisions original automotive magazine. Brought to you by. Goodbye, my dearest. Wait yes . When i buy new tires do i need allterrain . Isnt the road pretty much the only terrain ill be on . Announcer theres a better place to ask questions about your tires. Just been gnawing at me. Announcer tirerack. Com can help you get the answers you need, and help you find which tires are best for you. More information is available at tirerack. Com. Rockauto has auto parts from hundreds of manufacturers. No matter what customers drive, they can Purchase Online from a comprehensive selection of brands, prices, and specifications. Rockauto. Com. All the parts your car will ever need. 3m. Maker of 3m paint defender system. Helps protect your paint in three steps. Drying to a clear, removable film for protection. More Information Available at 3mauto. Com. Diehard. More Information Available at diehard. Com john when jeep said it was bringing the cherokee nameplate back to america, most of the response was positive. But when photos of the new utility were leaked, that response became an uproar. Jeep fans, it seemed, were less than thrilled with the slick new styling. Fortunately, it does look far better in person. Plus, theres a lot to like about the new cherokee beyond what meets the eye. For jeep purists, the 2014 cherokee is a hard pill to swallow. The squinty lights, fold over grille, and even a wedgey window profile. And then there is the matter of it being a crossover derived from a frontwheel drive car. Heresy granted, this cherokees new look may not be as macho as a sleeveless denim jacket; and its certainly doesnt look as purposeful as the original square jawed, 1980s vintage xj, but we dont agree that its been hit with an ugly stick. There are many reasons that a boxy shape was discarded in favor of a slicker design, but aerodynamics is certainly a key one. The new form cuts through the air far more effortlessly, enabling better fuel economy and a quieter ride. And despite the softer lines, the cherokee still has a nice stance to it. Its 182inch overall length puts it in between compact and midsize suvs, but the fact that it shares a platform with the dodge dart makes it a compact to us. Weve heard a lot of complaints about the front lighting, with its highmounted, nissan jukestyle, slanted daytime running lights drawing most of the ire. Headlights and fog lights are stacked below. Fortunately, a dedicated trailhawk model packs what should matter most to jeep fans; standard fourwheel drive with an off road kit that adds an inch of ground clearance, skid plates, red front tow hooks, and the biggie. A locking rear differential. Dodge dart influence extends to the standard tigershark 2. 4liter i4 engine. Ratings are 184horsepower and 171 poundfeet of torque. Available is an allnew 3. 2liter v6, the second member of the pentastar family. It cranks out 271horsepower and 239 poundfeet of torque. Another debut is chryslers new 9speed automatic transmission, and it seems to check all the boxes of fuel economy, acceleration,
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