With rates moving higher. Elbattled new health care law, president due to give a speech defending the health care law, youll see it live in about an hour, and well have reaction from two people who had their insurance can delled due to the law. He can win them back . Starbucks Ceo Howard Schultz with be with us. Hes been a big supporter of obama care. Well get his take on the rollout problems. And then reports on their earnings in about an hour. Howard will break down those numbers for us. Lets not forget about facebook either. The social media giant will be reporting after the bell tonight. Well have those numbers. Instant analysis as only closing bell can do it. A very jampacked show today. Lets approach the markets in the final hour. Were well off the highs with a decline in the session of 67 points. Pushing the dow back from the records reached at 15,612. Onto the nasdaq, seeing selling in technology as well. Nasdaq lower at 26 points. It, too, coming off the highs which were down but we really worsened after the news from the fed. S p 500 looks like this. Similar chart pattern. You see exactly where the market really came undone after the fed minutes were released. Down 9. 5 points at 1762. Want to bring in our panel of experts and make sense of whats happened in the last hour. Joining us, crying from the economist, from the buttonwood gathering in new york, david kudla, bob kizer is joining us at the big board. Im going to start with mr. Rick santelli. What do you think of all the gyrations. Dollar dropped. Gold went up initially, then came down. Interest rates up, stocks lower. Whats the Market Reaction here all about, do you think . I think stocks dropping makes sense to me. I think the adrenaline of liquidity in terms of how it impacts stock prices to the upside, i think that phenomenon is running out of gas a bit. So, either they give it a bigger injection, more than 85 billion or get less and less mild out of it. Interest rates i think make a bit of sense but not necessarily in the context of the stock market. To see the stock market go down and rates go up is fascinating and maybe theres a control issue. Maybe many see that ultimately janet yellen has to make some very tough decisions. I think the most surprising of all to me is the dollar index. I wouldnt have suspected the dollar index to be higher. I would have thought it would be a bit lower and gold would be higher because i think qe on some level appeals to a crowd that, of course, is anticentral bank meddling. Great, what about you, did you learn anything from the federal reserve, any surprises coming out of that meeting . We know we were not expecting tapering but in terms of the language . Sometimes its the absence of something thats most telling. The absence of a more negative assessment of the economy is what was interesting to me. Weve had so many negative publicity about the impact on confidence, on jobs, of growth, the government shutdown. It was interesting the fed didnt see fit to make mention of any of those things. If anything, they were modestly optimistic if that they dropped the tightening, as being a negative. I think this tells us that the absence of good information about whats going on in the economy right now tells us we dont know which way the fed wants to go. Whether they keep up with this pace or whether they want to taper. Bottom line, we need three or four more weeks to get a good fix on that. Greg, come on. Janet yellen, if and when shes confirmed, no reason to believe she wont, maybe just in a timely manner, she doesnt start until march. Her meeting as chairperson. You dont think they would started tapering her first meeting, do you . Why not wait until june or later . I think theres a very good chance that they she will start tapering at her first meeting. You dont have a situation where its a brand new individual coming in who needs to learn the ropes, understand where other members of the committee sit on this issue. She has been integral to the whole policy choices bortl ben e and his colleagues have made. I dont see why she couldnt see the information she sees as vice chairman and see what she should do on her first day as chairman. Makes sense. Were you expecting anything different out of the fed today and in terms of the fundamentals, lets talk consumer and what youre seeing in terms of earnings . With the exchange i looked at the press release from the fmoc. It struck me with the least changes i can remember in quite some time. No new news in the market at l all. In terms of valuation, stocks are trading 15 times 12 months forward earning, fairly valued. They need good news if youre going to go up up from here. The bond, cpi came out today, core cpi is 1. 7. Wheres the bond market going from these levels unless they think theyll get a directional hint from the fed on tapering which we didnt get. We said these are extremely complicated times for the federal reserve. When you said were dependent on data, youre absolutely right. The average monthly rate of job creation in the First Quarter of this year was over 200,000. That pace slipped to 180,000 in the second quarter. Now were about 150,000. Wow. The trend is not moving in the direction that lets the fed out. The fed is caught between a rock and a hard place. They want to get out of tapering but the data doesnt support it. The s p for october is up 5. 5 up to today. But you still dont think that stock valuations are all that stretched, do you . No, i dont. Ive heard a couple people refer to today were near or in an asset bubble in stocks. I dont believe that. We have valuations around 15, just under 15. Pe ratio under 15, which is about the longterm average for stocks. We have an accommodative fed. We think with nowhere else to go, stocks remain in the asset class of choice. We go higher from here. These dips like today are buying opportunities for those on the sidelines waiting to come in. But bob just said the markets fully valued. Putting this whole bubble idea aside, do you agree its fully valued . I would agree its fairly valued but we know stocks can move to an overvalued range for quite a while before they correct. Were nowhere near the pe multiples in the 20s at 2007 or 2000, so and we can also have, you know, multiple expansion. Were in a decent earning season. We continue to do well. Peter anderson, we havent forgotten about you. Where do you stand on this issue of valuations . I mean, you youre in that camp where bad news still can be good news for the stock market, right . Absolutely. I mean, listening to all the other comments, it is very hard as a listener to make sense of all this data coming in. Look at this calculus going on. Now we have the bad news like the adp Employment Data but that is good news in the sense that it might impact the feds decision to taper, which is kind of backwards thinking. If you try to connect two plates. A connecting to b. Theres a lot of jagged path as long that a to b. Now youve got you invest in the stock market as long as the feds out of the way, is that the idea . Well, not necessarily. I mean, the fed can be in the way, too. And they can start tapering. Ive said in the past i think thats a good thing because that shows the economy is growing. I think were looking at the data so minutely. We have to. We have no choice. Sometimes at a turning point, the picture gets pretty foggy. I think thats what were seeing. On top of that, we have Nobel Laureates opining on the valuation of the markets and on a pe basis on their own special metrics. Theyre saying, sure, the market might be highly valued but its not highest value and there is still a run for this. I think there is good news for the market. Coming in were expecting 3 growth. Now were at 5 . We could end up at 5. 5 . I think that lends optimism. 70 of the s p 500 stocks have beaten expectations. Thank you all for your thoughts today. Appreciate it very much. Stocks are coming back a bit. Seema mody, lets go to you at the nasdaq. That index has taken it on the chin since the fed statement, too, right . Thats right. Were trading around session lows right now. Nasdaq down 20 points. Bill, with over 80 of stocks on the nasdaq, 100 up can double digits this year, some say this market is getting frothy. Out of these big gainers, only three stocks are up triple digits this year. Up more than 100 year to date. Tesla, netflix, micron tech. These three stocks are now trading lower today as we see some money being taken off the table. Now, in terms of bright spots, gillead sciences, the best performing nasdaq 100 stock after posting another Strong Quarter with help from its hiv franchise which continues to grow. On this down day, apple shares bucking the trend, up 2 . Lastly, three ipos at the nasdaq. A strong debut for all three but especially for criteo, french advertising firm. French ipo on the nasdaq in over ten years. You can see shares up better than 20 . We have breaking news on the fall of former brazilian billionaire eike batistbatista. Lets go to michele for this. Ogx filing for bankruptcy in rio. Reuters cites sources in brazil. Ogx is the oil and Gas Exploration company run by former still flamboyant eike batista. This is a big downfall for him. The largest bankruptcy in latin american corporate history when this procedure begins. If you take a list, we have a look at biggest creditors for bonds if this company. Pimco, blackrock, ashror, lord abbott, and more, but this was the ad hoc group trying to Reach Agreement with mr. Batista. But ogx filing for bankruptcy in brazil, reuters citing. Bankruptcy code is only ten years old. Theres not a lot of press dented. How will creditors be treated . Future investment in brazil is dependent on how this bankruptcy proceeding moves forward. Back to you. This has so many ramifications. Its an extraordinary story. Lets not forget the ram fix for the workers in brazil. Because hes had all these companies, largely commodities companies, hes always employed so many brazilians, locals, who are out of work. Were really seeing impact. Breathtaking, 18 months from 34 billion to less than and add to that the debt he faces. 50 minutes left in the trading session here. We have come off the lows. Any positive close for the dow and s p 500 would be new alltime high. Its not looking good now. The dow is down 58 points. Meanwhile, the president is making a speech in less than an hour, defending his much maligned Health Care Plan on the heels of a morning apology from health and Human Services secretary Kathleen Sebelius. Let me say directly to these americans, you deserve better. I apologize. Im accountable to you for fixing these problems. And im committed to earning your confidence back by fixing the site. Up next, more on sebelius congressional appearance. And the ceo of chealth whos offering to take over the mess at zero cost to taxpayers. After the bell, plenty of earnings brewing including starbucks. The coffee maker Ceo Howard Schultz joins us to grind up the number. Yeah, now i see why you gave this to me. Well talk about the companys new twitter tiein as well when Howard Schultz joins us coming up. Youre watching cnbc, first in business worldwide. Clients are always learning more to make their money do more. ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides my learning every step of the way. 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. Ido more with less with buless energy. Hp is helping ups do just that. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. In less than 45 minutes the president is expected to speak out in defense of his health care law. Well provide that live. This on a day that the from us frag frustrations of the obama care web glitches front and center on capitol hill with the appearance of health and Human Services secretary Kathleen Sebelius. Bertha coombs joins us. 3 1 2 hours, thats how long the hearing went on. Usually members of congress are determine shall to a sitting cabinet member. They were but they didnt pull any punches. The secretary came on the offense, starting with an apology, saying shes accountable for the website is not working but assuring shes working hard to win back americas confidence and it will be working by november 30 th. One of the most remarkable admissions she made when pressed by Republican Congress members about why she is not giving out enrollment numbers because right now she admitted she just doesnt trust the sites data. That data out there exists and sir, i will tell you right now, it is not reliable data. According to the Insurance Companies who are eager to have customers accident customers, they are not reliable. With contractors saying they raised red flags prior to the launch of the site, sebelius said whatever they waved, it was not prior to the rollout. No one told her it was going to be that bad. She admitted at one point it was a debacle and shes responsible. When one member of congress trying to pin her saying, isnt the president ultimately responsible . She says, no, he runs the sxunt shes ultimately responsible for this rollout. She defended the president when it came to the issue of plans that canceled. President was right, people could keep their plans if they were grandfathered and it was unto the insurers to make sure those plans were grandfathered. Back to you. Thank you. Our next guest is offering to the president to allow the government to move the enrollment process to his website while they fix healthcare. Gov and offering to do it for free. The letter to the president makes that offer very clear. There it is. Joining us is gary lauer. Good to have you on the program. Great to be here. Are they taking you up on your offer . What response have you gotten . None so far. Seems theyre busy today. Why do you think can you do this . Weve been doing this for years and years, ecommerce, this is what we do, amazon. Com of Health Insurance. We understand how to deal with these kind of volumes. We know what Consumers Want in terms of interaction and we know how to make this daunting, complex decision. You do precisely what they want healthcare. Gov to do. Before the words Health Insurance and exchange were in the same sentence, weve been doing that. Do you understand what the problem is with the website . What exactly happened . They were overloaded . I suspect its plural, problems. Not just problem. There are obviously fundamental issues under way. We saw that piece where secretary sebelius said she doesnt have access to the data or its unreliable. A lot of people are piling on. Ive taken a different view, lets move forward, get this thing going. What ive suggested to the president is just turn the enrollment over to us, let the contractors take healthcare. Gov aside and see if they can fix that. In the meantime, well get a lot of people enrolled who are waiting to sign up, we believe. Do you think the administration should have waited to roll this out . . I way to know we would see these kind of glitches . I dont know. I can only tell you in the world i come from, ecommerce world, something wouldnt afford to see the light of date. Consumers vote with their feet. They rely on you. If it doesnt work, they go elsewhere. Government gets a bit of an out here. We have to get this working. Another thing thats more important is leaving this all to government is a big mistake. It just wont work. I believe thats a fact. Im not being critical of government. Theres a lot of smart people there. But theres a lot of smart people in the private sector and a lot thats worked really wellbeing like mine and others, why dont we bring this together to make this legislation work, work well and help people. Thats a great point. Not just your company. You have competitors that do the same thing. Of course. Who could pick up some of the slack here. Of course. Do you sense thats whats going to happen . Theyve already said they said they can have this thing up and running, fixed by the end of next month wouithout farming it out otherwise. Does that make sense to you . Is that feasible . I dont know. The question is, what is the fix and how well does it work . We were talking earlier, a lot of young people have to get enrolled. We grew up using a telephone. My kids grew up using a keyboard. Theyre very demanding when it comes to online. We dont know how well it will work. We hope it works well but i know my companys site works well and others also. Lets use all of these things. You could handle the load . Absolutely. Theres no ifs, ands or buts about it. We saw 20 million americans come to emehealth. We have 200 brand carriers, 30,000 contractors. Its all there. Its all there. Let us know if you hear back. Im sure you will let us know. Youll be the next to know after me. Gary lauer, ehealth. 40 minutes in the trading session. It was down 58 ten minutes ago. Is it working . Founder of great Profit Partners will join us. Well find out where he sees opportunity in the market today. Up next, though, the man himself, john bogle from vanguard joins us for his take on the markets, if he thinks things are frothy or not. Hell discuss a new report that americans are not saving enough for retirement. [ male announcer ] you know that family . The one whose eye for design is apparent in every detail. Whose refined taste is best characterized by the company they keep. Well. Say hello to the newest member of the family. The cadillac srx, awarded best interior design of any luxury brand. Take advantage of this exceptional offer on the 2013 cadillac srx, with premium Care Maintenance included. [ laughter ] [ female announcer ] each one of us is our own boss. And no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose an