Held a News Conference just about an hour ago during which he promised the senate, regardless of the bickering going on in the house ors or would work on keeping the government open. Now, let me just pick this apart for you. The vix was waving the fear nag for the second straight day flag the but you can see it punch back into the red after having been up earlier. Weve got it at 18. 49. Yesterday e the volatility index closed at 18. 94, thats the highest in 4 months. Notwithstanding the momentary moderation of fear, can you blame investors for being jitteriesome we are now less than 3 days and 9 hours away from a government shutdown, and the house is nowhere near agreement on a plan to fund the government by saturday is deadline. Republican factions in the House Holding up a shortterm government funding bill, but we are learning a potential compromise involving southern Border Security and ukraine funding has begun to take shape, one thats getting consideration from a number of republicans including speaker kevin mccarthy. Coming up, republican congressman bill high zynga of michigan does not want to see a shutdown. Hes already got thousands of constituents on the uaw picket lines without paychecks. What kind of compromise is he willing to make, and are others following at this hour . Weve got representative the huizenga in just a few minutes. In the meantime, take a look at the dow, extending yesterdays 38ingpoint 388point loss. Earlier mt. Session it was down 312 points. Yesterday was the worst performance in six months, but if you look at the dow heat map now, fewer names in the red, more poking into the green including visa and honey welk. At the bottom, verizon, Procter Gamble and merck are the laggards, all down anywhere from 1 to 1. 5 president. 1. 5 . The nasdaq trying to lift off the lowest close since may, and right now its doing it. Its back up 38 points, had been down about 100 points, so really coming back a bit. The nasdaq is above 13,000 at the moment, but earlier and im talking maybe 38 minutes ag. Okay. Were back above it, 13,104. Treasury yields showing no mercy. The 10year yield hitting a fresh 16year high. We now have it at 4. 6 3 . Earlier when it hit the fresh 61year high, it was at 4. 593, so this is a fresh, fresh high. [laughter] and the 2year, yo guys, its holding at a 17year high, up 6 basis points to 5. 13 . The Energy Sector is gut punching the bears. Oil just got 3. 34 closer to 100 a barrel oil. West texas intermediate now trading in the aftermarket session at 9 if. 72 93. 72, and thats a gain of about 3. 33 . If you look at the whole Energy Complex, it is the hire, but the drillers and refiners are really gushing up, and that includes apache, neighbors industries up 6. 5 , hammer lick and pain up. High oil means high gasoline prices which have spiked 67 under president biden. That may have at least some voters on both sides of the aisle ready to consider the alternatives. In less than six hoursing, theyre going to hear from seven of them, seven gop contenders mt. Second Republican Debate right here on fox business. So Grady Trimble live at the Ronald Reagan library in simi valley, california, where it will all take place. Grady, were on the cusp of a government shutdown. Four of the seven on the stage tonight have served as state governors who, as we know unlike the federal government request, must balance their state budgets. Do you get the sense tata voters and viewers will be really looking to hear who has a better solution if they were in power . Reporter i think so, liz. And to your point, each of those four candidates, which is more than half of the candidates on the stage, like to tout their experience balancing their state budgets, so we could expect them to do that again and say that they could do it at the federal level with the mismatched spending in the federal government. We are here in the spin room at the ray reagan president ial library, but i want to give you a sneak peek of the debate stage because our crews here have been working really hard to transform the iconic air force one pavilion into a debate venue that is ready for prime time. Rnc chairwoman ron that if mcdaniel says these seven gop candidates hoping to be the 47th president of the United States could emulate the late 40th. The last time a republican beat a democrat incumbent president was Ronald Reagan in 1980, and it was jimmy carter. And i think theres a lot of similarities right now with the world as it is today with joe biden failing the American People and bidenomics and inflation. And its time for are republicans to take back the white house. Reporter the Biden Campaign has also been here in southern california. President biden himself will be many Northern California in Northern California for some Fund Raising Events today. He and his campaign have been trying to paint all of the gop hopefuls as too radical. Were going to stay focused on getting that message and our accomplishments out and making sure that voters understand the extreme agenda that a were going to continue to see tomorrow night coming from that debate stage. Reporter all right. So the stage is set. Most notably, the podium positions tonight are a little bit different than just one month ago in milwaukee. Former u. N. Ambassador nikki haley moving up to the third position after a Strong Performance there in wisconsin, so she could have a target on her back tonight. As you know, liz, at these debates anything can happen, but the stakes are really high because weve only seen one candidate who didnt make debate stage who was on the last one. But after this one the field really could start to narrow. Liz . Liz oh, boy. Its going to be exciting to watch, certainly, but i think American Voters want answers to the real problems of this country. I know dana and stuart are going to crush it there. Its going to be terrific along with ilya, and ilia, and everybody should tune in for number two gop debate right here on fox business. To the markets where risks are brewing beyond government shutdowns. I mean, if you check the s p, it is looking at a gain of 10 points. Earlier though it was adding to yesterday s 63point loss after tuesdays 207point loss. The nasdaq is now back into the green here punching higher by 66 points. But with september ending this weekend, the nasdaq pretty much the ugliest, lacking to close out the month around 7 lighter than where it began. Now, some of that sparked by concerns the consumers buying power is starting to wane. Credit card stocks, they were pretty messy earlier. Lets check them right now. Moodys today says its seeing Consumer Debt continuing to the expand, and the quality of that debt is actually declining. Moodys also notes delinquencies outside of mortgages are now inching up. All of that not good, but Brian Moynihan, bank of americas ceo, in new york today. One of biggest card issuers telling the Economic Club of new york this afternoon he still sees Consumer Spending strength, that commercial credit quality is still very strong and that, quote, we wont have a recession. All right. Lets figure out how investors should see the picture. To the floor the show. Tom hayes and brent chutety. Tom, equities falling and now the russell 2000, actually earlier was the one area of the grain, i want to check it and, yes, its up about lets call it 1 , much more than the rest of them. So where are the flows . Right now, because when money comes out of the market, it has to go somewhere. Thats right. What a difference a headline makes. We were just talking, the whole market was red, moneys been flowing into energy, industrials, small caps. Its been flowing out of health care all day. Its been flowing a little bit out of tech, but thats starting to come back. So the fear, as soon as mcconnell came out, of the shutdown was serious liz so within the hour youre talking about. Within the hour mcconnell said were going to work to keep the government open, and as soon as that happened, the market completely rebounded which shows the amount of fear. Are. Liz so the green room is about, what, 50 feet out that way, and tom was there, im here, our producers in the booth and hes like, you have to look. This is what im seeing from the all of my traders is and everybody that im looking at when it comes to the flows. You say that the semiconductors started to come back. And the vix collapsed ors, which was very interesting as well. You have a number of fears. You have the vacuum going into earnings season, people have low expectations for that. You have the seasonality, the 10 worst days of the year ended yesterday, so were starting to move into a seasonably favorable period, but that was hindered by the potential threat of a shutdown. Liz brent, do you see that as part of the current bull market, a start of a bull market or maybe just a bear market rally . No, i think were headed towards more difficult times in the sewer mediate term intermediate the term. I thinks agree with brian monaghan, i do believe theres a registration likely in the next few months as the liquidity kind of continues to grind that spending to a halt. If you think about it, to me, the most important thing is inflation. That certainly has moved lower, but i think the final frontier for inflation for the fed is wage growth, and right now its too high. Too high or too tight, and unfortunately, the only way that the labor market has loosenedded in the past is through a recession that drives wage growth lower, and thats what i think youre going to see in the coming months. Liz one other comment that Brian Moynihan said was the fed has won the nearterm battle against inflation. Im not, im not an economist, but im not sure that anyone on the fed would say, oh, weve won, lets wave our flags and say we did it, right, brent . Lets just say that the truth is somewhere in between. Where are you investing . You have Something Like 265 billion in assets under management. Yeah. I think where its important is they won the current battle. The current battle is based upon covidimpacted inflation. So the economy was pushed out of equilibrium, and inflation went from goods to services with in between about based upon ukraine and russia pushing Commodity Prices higher. That bout is over. The bout that im worried about is a wage price spiral, and thats where i think the fed is worried, and thats the final frontier on inflation. They have to pull that down, and the only way to do so is through a recession. Look, i think the good news for investors is that bonds yield 5. 35 . I think inflation will falter, and i think that a gives you a real opportunity for real value in the bond market, so were tilting more towards that direction to prepare for any coming recession and the reality that along with that recession inflation is squashed and at 5. 35 versus a 2 inflation target, i think you have a real opportunity to add value in that manner. Liz if you see value as, and im not sure you do, brent, but i know tom does, as certain products that people will continue to buy no matter what the economy is doing, tom, you actually like generac. And i think you said this well before the open today, and its up 6. 5 right now. Yeah. So they came out at their investor day this morning and reaffirmed their guidance. This is one of those stocks that has collapsed, its down 80 off of its recent highs in 2021. Why . Because they overhered like many of the industrial overhired like many of the industrial companies. Theyre trading at 14 times next years earnings as opposed to the their average multiple of 29 times. Theyre basically the kleenex of home standby generators, and and as we move towards electrification, were seeing grids go down, unusual weather events, and that all helps generac. Theyre preparing for the future with the Battery Power walls and clean energy, and their industrial business is growing with the 55g rollout. Theres a lot of 5g rollout. Its exceptionally cheap, and we think this can be an easy double over the next 1236 months. Liz double. The pe is certainly palatable. Correct. Liz brent, when you hear names like that, what goes through your mind if i were to ask you how does an a investor remain tactically bullish e even if you believe, which you say you do, that we will dip into recession . Yeah. I think similar story but in a different context. I think for the intermediate term, i think there are pockets of the market that offer good value. So if you look at a small and mid cap which typically dont to do well during a recession because theyre economically sensitive, i think theyve already discounted some of that. Small cap stocks, the s p 600 raids at 12. 8 times earnings, and there is a margin of safety for those who want to invest with a longer her term focus liz okay, wait. So just could you buy the index . Would you say buy the index . Thats what buffett would say. Certainly you could buy the s p 600 index, but there are pockets of opportunity in the stock market. The s p 500 as tom mentioned, theres parts of that market that are cheap also, and i think value stocks in general are cheap on a historical basis. And i think on the opposite side of this which could be fairly sharp, i think theres good news for investors in those parts. Liz great to see you both. Senate and house leadership, because we just talked about this, it is a momentbymoment developing story. They are still struggling to craft a compromise to avert a government shutdown. Youre looking at a live picture of capitol hill right now where senator Chuck Schumer is speaking. Republican congressman Bill Huizenga of michiganen standing by live next with the latest chatter in the back halls of capitol hill and with his state the nerve center of the uaw strike, what are his best ideas to end the strike thats hurting his constituents . 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I want to deal with disaster, but i want to also deal with the border. We should never let 5 or 10 people push us around like this. The problem solvers has what i call a bipartisan bill that has a c. R. , what has Disaster Relief money, ukraine money and Border Security money. I think its a better, better fit. Liz that was congressman don bacon of nebraska. He is a republican. Congressman Bill Huizenga is now in front of our camera as live. He is on the House Financial Services committee. Congressman, what are you hearing in the back halls behind you about that . Is the number of House Republicans who maybe would agree to a deal like that growing . Yeah. Well, liz, first of all, thanks for having me on. But i like to refer to these as robust conversations, not arguments. Maybe a fine definition there. This is, this has been