i think sprint is a cautionary buy, it's not going to go right back up but i do like it. always moving somewhere. just be ready, i'm jim cramer. i'll see you tomorrow! i intend to speak in opposition to obama care. i intend to speak in support of defunding obama care until i am no longer able to stand. >> all right. that was senator ted cruz beginning his filibuster to buy time and support to de-fund obama care. but republicans are deserting him in droves, and right now it looks to me like a big victory for president obama and the senate democrats. meanwhile, nothing's been done about the mid-october debt ceiling limit. the house has no clear plan, the president won't negotiate and this could well be much more serious than any temporary

government shutdown threat. and in foreign policy today president obama talks tough on syria and dovish on iran and iran snubs him later on in the day. all those stories and more coming up in "the kudlow report" beginning right now. >> evening, everyone. i'm larry cuddly. we're here live at 7:00 p.m. eastern and 4:00 p.m. pacific. breaking news from washington tonight as texas republican senator ted cruz enters his fourth hour speaking out in protest against obama care funding despite his efforts this evening, senate leaders say it will delay a cloture vote. kelly o'donnell joins us live with all the details. >> what we have here is a

talk-a-thon trying to put pressure on fellow republicans, that coming from ted cruz who was sort of a man on an island because inside a private meeting other senators told him not to stake this step. what's on the world in real funding terms is funding the government behond the end of the fiscal year next week and paying for the new health care law. all republicans don't want to see the health care law funded. the real battle is over tactics. >> cruise is taking a stand popular with outside groups for sure and he said he'll talked all night and even brought special sneakers giving up his famous texas cowboy boots. why is that so critical? the vote will go forward, technically not a filibuster though it sure looks like one so what the risk is for the republicans is not giving enough to imto house republicans and

speaker john boehner there is a procedure that happens because the democrats control the senate, they are able to get something to pass something without the whole piece that deals with the health care law, a health care law that's become more unpopular, and that's what senator ted cruz was talking about on the floor today. >> millions of people are asking for accountability. >> so what he is saying is that the pluck wants to see this delayed if not permanently repealed and that's certainly the position of many republicans. other republicans say this isn't going to work tactically and what they hoped to do is give more time to house speaker john boehner to come up with alternative. let's say the process goes forward and if the senate can pass funding which keeps the government open which everybody says they want would there be an opportunity for house republicans to try a smaller goal of maybe getting some

pieces of the health care law taken away? one of the examles we hear often is the medical device tax and would that then put pressure on the senate? we know what the real world realities of this are. right now it's over who has the best message, the best tactics and how much time is left for the last person standing who might prevail in this. in just a moment i'll talk to senator ayotte but the last point you make is so crucial. i don't see anything the republicans are getting from this and it only takes 51 votes, not 60, and you've got half a dozen democrats running for the senate, running for re-election in states that mitt romney carried. i don't see what the gop gets out of this. it's all befuddling and republicans would agree saying it's better to put pressure on red state democrats to answer those questions if they aren't

happy with the health care law. so we'll have to see how it plays out. it's volatile certainly and certainly popular for the most conservative supporters of ted cruz who like to see him on the floor and hear him say shake up washington and others saying it won't be good for their party. >> nbc's kelly o'donnell, thanks very much. as senator cruz continues to speak on the senate floor at this hour it's clear he's facing a fractured gop when it comes to the strategy but the senator is continuing to challenge the republican colleagues. take a listen. anyone who votes yes for clowe su -- for cloture, anyone who gets to cut off debate for this bill is voting to allow senate majority leader harry reid to

fully fund obama care. that's a vote that i think is a profound mistake. it's a vote that i hope all 46 republicans will stand united against. >> all right. joining us now new hampshire senator and republican member senator ayotte. how will you vote tomorrow? will you vote to close down debate? i'll vote to proceed tomorrow and then the following vote will be to vote on whether to close down debate. i'll vote to proceed at this point because, larry, listen, what's happening right now is we would be voting against the bill which senator cruz wanted which defunds obama care and also keeps the government going so what he's asking is for us to filibuster the bill passed by the house, and i think at the end of the day the big winner from that, the government would

shut down would be president obama and let's face t.things have not been going well for him lately with what happened in syria, with many of his priorities that he's not able to push forward and why would we give him a lifeline at this point on a law that's falling on its own weight? in my own state of new hampshire it's a disaster right now with only one provider on the exchange and ten of -- 10 out of 26 hospitals aren't even in the exchange. >> well, those are all great reasons to repeal obama care or do something, delay obama care. i'm just curious, why is everybody pick on senator ted cruz. he's doing his job. he ran to repeal obama care. he's doing the best he can. these legislative tactics notwithstanding. isn't he just trying to do his job? >> i think we can always disagree or tactics so i just simply disagree with him. i don't think that shutting the

government down will allow us to succeed here. when we have one-third of the government. i'm all for de-funding obama care and for repealing this law but as the end of the day as charles krauthammer rightly said i don't support suicide because it's permanent, and we know who will win if the government gets shut down and it's not republicans. it's not a matter of anything regarding senator cruz. i respect senator cruz, just a disagreement on strategy and i believe we should be doing things like trying to delay the individual mandate and repeal the medical device attack, things that will put democrats in a really tough spot. >> where are those? i happen to agree with you there. my first choice was to delay the individual mandate, absolutely. what i'm asking you is where are those things because as i see it you're going to close down debate and make these procedural votes and on friday you vote, 51 votes and senator reid is

allowed to get what he wanted. what's the gop gaining from all of this? >> that's why when you have a strategy you need a good end game. wasn't a good end game from this at the beginning. what we need to do is get the vote done, get it back to the house, let them attach something like the delay of the individual mandate so then it comes back to the senate and let democrats vote on that or the repeal of the medical device tax, an issue that they have been on the record on already. imagine voting against that? that puts them in a very different position than where we are now. >> they could send the bill back. the house could send a bill back, it could be done this weekend. monday is the end game. you'd still have time to do a

deal. >> well, absolutely the problem where we are right now all the time that's being extended in the senate right now, you know, i think that we should get the votes down and let the house work and make their decisions and at the end of the day. this thing is falling of its own weight, obama care. look what's happening around the country. premiums are going through the roof, can't afford it. the whole notion that you can keep your doctor, it's not true so actually within the public sphere we're winning this argument. the one thing that could really hurt it for us is to shut the government down so i think we continue this fight but continue it in a way that we can win and a strategy that will be successful. >> you've got days, today is tuesday. you've got days. you're going to take ted cruz out of play tomorrow, whether that's right or wrong. >> actually it can be expended into saturday the way the timing of the senate works right now,

larry, unfortunately, where we're going. >> no matter what you do, if the house puts something back, no assurances that the house will accept the new bill. what if they say we want to -- >> we want to delay the personal mandate for a year, what if they say we don't want congress to be exempt from obama care? what if they say we will not do this without verification of the subsidies, things that matter to the voters, what if they come back and say it, they will say it, i don't know, friday afternoon. >> we need to focus on things that the american people do support. to the extent that we can do that we should do that in the senate to give the house the opportunity, but at the end of the day i think you and i both agree that who rins if the

government shuts down? i don't think it's republicans. i think it's president obama, whether we like it or not, and we all know that this law is flawed. it's a much tougher vote for the democrats on a delay for a year. i think it's much tougher vote for the medical tax rereal and right now the debate has been focused on the gop. why aren't we focusing it on the people who actually voted for this law and that's why i still don't understand what the republicans are going to get from this thing except no shutdown but you've got days not to shut down. i mean, for example, what if you put in, even go back to december 15 on the cr, why is that being taken out, put in one of the things that you mentioned, let's say the individual mandate. the individual mandate pass to get 51 votes, a lot of senators running, democratic senators as you well know, people like begich and pryor and miss landrieu from louisiana, you

know, they are in red states, aren't they in trouble? 51 votes isn't that much. you could win something. >> i agree. i think this is a tough vote for the democrats at end of the day because they have to reaffirm their support for obama care at a time when it's falling on its owen weight. it's not going well out there in the states and i do think we'll attempt to amend this so any attempts we can make, yes, we should do that in the interim, but where we're left at the end of the day we have to make sure that we continue to keep the government going and i agree, larry. i don't want to support a cr that only goes until november. that's absurd. the short-term funding is not a way to run anything. >> i agree. we'll leave it there. i just fret, all right, i look at this, to me this is a democratic victory and you're backing off and whether it's ted cruz's fault or whose fault it is. >> we're not backing off. i just want to make clear, larry, we're not backing off. >> there's not a single republican initiative in this

cr, not a single republican initiative in this cr, that's the way i see it, and i think a lot of people will see it that way. >> that's why we need to have a winning strategy. no way am i backing off on my fight against obama care because i've already seen what's happened in new hampshire and people are being dropped from hospitals that they want to go to, physicians that they want to go to if they have to get on next change and premiums are going up, so this thing is going to fall on its own weight but we need to be smarter on what we're doing on the issues that you raised and you hit on the right issues. >> i'm trying, senator kell ayotte, as always, great to see you. >> great to be with you. >> all right. be sure to tune in tomorrow night. i'm going to be joined by kentucky tea party senator rand paul. now coming up this evening what's the best strategy for both side in the debt battle? will president obama finally agree to negotiate on the debt ceiling? we'll debate that next up and later were some traders tipped off early to the fed's big no

taper decision last week? the answer could be worth $600 million and the fed is investigating. cnbc's eamon javers broke this story, and he has an update, and please don't forget free market capitalism is the best path to prosperity. i say that every night we cover it. this obama care bill has nothing to do with free market capitalism and choice. i'm kudlow. we'll be right back.

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welcome back to "the kudlow report" live from cnbc headquarters. now, the continuing resolution and fight to avoid a government shutdown is only part of washington's budget battles. the next critical hurdle facing lawmakers is to get a deal done on the debt ceiling but can they do? here now is former clinton white house aide and cnbc contributor keith boykin and welcome to nationally syndicated host mike ad medved and jonathan strong of "the national review." i don't know if you saw my interview with kelly ayotte. >> i did. i don't see what the republicans are getting out of this whole cr battle and now regarding the debt sealing, which i think is a

more serious issue. the president called up boehner last friday and said i'm not going to negotiate so what's going to happen here? >> what we're seeing in terms of republicans is chaos. they are completely divided in terms of which direction they want to go. one of the key things is a lot of the senior house leadership and paul ryan and some of the senior voices inside the house republican conference have all along planned to switch this obama care fight from the cr to the debt ceiling but from what i'm hearing, i'm talking to lawmakers that may not fly so everything is fluid right now and boehner had wanted to pass a debt ceiling bill friday on the house floor. i'm not sure if that's going to be able to happen right now. >> michael medved, i think they ought to put the individual mandate on the table. i think they should have put it on the table right now in terms of this so-called continuing resolution, but if they can't do that they should put it in the debt ceiling.

the country hates this thing, every part of it. hate the taxes and the mandate and the lack of verification, hate the fact that the congress is exempting itself from obama care and you can see today 500,000 kids won't on the government rolls because of a glitch in the thing. to me that's where the gop should have gone, and they are not doing, it michael medved. >> well, you're right, they are not, but it's partially because it's not their fault. it is president obama's fault. president obama has refused to negotiate on the debt ceiling, and you're absolutely right, larry. we heard today from secretary jacob lew that there's less cash on hand that they saw. the debt ceiling thing is going to hit before we think. we could have a perfect storm. we could have the government shutdown at the same time that we are facing a complete exhaustion and default and bank credit suisse said they were looking towards a market impact of the debt ceiling debacle as

early as october 10th. now, we're talking about two weeks, and they are doing nothing. the president needs to take control of this, get off his high horse and stop saying no negotiate and begin negotiation so they can end the washington exemption and the keystone pipeline is another thing the president can offer that would mean a lot. >> i think it's outrageous that the president doesn't want to participate in these negotiations. you worked for bill clinton who was, you know, he would roll up his sleeves and get involved in the major budget decisions. the major budget decisions in the clinton years were done during the debt ceiling negotiations, just like in 2011, done during the debt ceiling negotiation. who does mr. obama think he is not doing this, this is a crazy idea? >> we cannot continue, larry, to run and operate a government where every six months we have a new crisis because the gop decides that they are going to

create some new crisis just to be able to gain some political advantage. we have elections to decide these things which is exactly the reason why the "wall street journal" wrote today, they were critical of ted cruz's approach on the whole continuing resolution because the fact is we do need to decide these questions via the electoral process and not through the brinksmanship that congress continues to do. when it comes to the debt ceiling in my lifetime alone we've approved an increase in the debt ceiling 70 or more times, 70 or more times, 49 times under republican presidents and 18 times under president ronald reagan so somehow approving the debt ceiling it should be a negotiation. >> you can go back -- you can go back. >> these are bills congress has already racked up. >> gramm/rudman to cut spending was done during the debt negotiations, when papa bush unfortunately raised taxes list

inge to george mitchell, that was done during the debt ceiling, reagan reforms were done during the debt ceiling and the bush reforms were done during the debt ceiling and the big battle in 2011. michael medved, the days -- what i want to say is the republican party here is being so cautious, they are so afraid, they don't want to shut down the government, that's an up popular position, but regarding shutting down the government and regarding the debt ceiling where is the republican backbone in congress? there are certain issues they are supposed to believe in and this guy cruz, he was elected to shake people up, to come to washington and stop obama care. i may not agree with his tactics. the guy is doing his job. why isn't the gop doing exactly the same thing? >> he's doing his job. the point is made and the discussion is healthy but now you do not want to shut down the government and there is no end

game by which the republicans with only 45 votes in the is not can prevail. we're talking about no negotiation about the debt ceiling. what politics is about is negotiation and ted cruz needs to get the message and barack obama needs to get the message. most of all, negotiation is what needs to happen now. leave aside the government shutdown, this debt ceiling thing is serious. we're talking about potentially thousands of points of losses on the markets, a crippled economy. it's a disaster. >> there is nothing to negotiate, michael. basically what the republicans are saying to the democrats and president obama is give up on your signature presidential achievement. >> i'm not talking -- >> you're right. i'm saying that ted cruz has to get off his high horse, too. we are not going to de-fund all of obama care. however, dealing with a delay in the individual mandate. >> but you could change it. >> you could delay it. you can delay obama care and change it and get the kinks out,

of course you could. >> that's not going to happen. that's unrealistic. >> jonathan, you're covering this bat. what is the house going to propose on the debt ceiling? let's leave the continuing resolution alone for a minute, will they stay with the keystone pipe lines, with the one-year delay on obama care or at least the personal mandate? are they going to stay with some instructions on tax reform? that's what i remembered recently, but i'm also hearing now that they don't know. >> well, they unveiled kind of the rough outline at a meeting last week to members but haven't released the actual bill but you're right, delay of obama care, instructions on tax reform, keystone pipeline. the kitchen sink approach and put everything in there and make this an easy vote. >> i love, that kitchen sink.

>> it's political suicide. >> kitchen sink. >> run the garbage disposal. >> a classy kid, this jonathan strong. he could have said toilet bowl. thanks all. >> president obama opened the door to more diplomacy with iran today but did iran respond in kind and did the president make any progress in his push for a military strike on syria? cnbc's michelle caruso-cabrera was at the u.n. and will join us next on "the kudlow report." (vo) you are a business pro.

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welcome back to "the kudlow report." i'm mary thompson. federal prosecutors are asking steve cohen for as much as $2 billion to settle criminal insider tradings against his hedge fund s.a.c. capital, this according to dow jones. cohen wants the $660 million he already paid in a civil settlement to count towards the tote a. cohen's lawyers are working on a counteroffer, but it's expected that the feds will insist on an admission of guilt to be part of any settlement. larry, back to you. >> mary thompson, thank very much, the big deal today over at the u.n. is whether or not president obama will shake hands with the new president of iran. michelle caruso-cabrera joins us now. michelle, you were there. i'm reading headlines that the new president of iran snubbed president obama. is that true? >> the handshake did not happen

larry, and the reason is according to our side of the story, the white house side of the story, it wasn't good enough for the iranians. they wanted a substantive meeting with president obama and the white house had made clear all along that there was not going to be any such high level meeting between the presidents, that if anything was going to happen it was going to be an orchestrated happenstance moment where they happened to pass in a hallway or see each other at a luncheon, maybe a handshake, many a photo and many people within the political world in the united states thought that that was even being generous but the iranians felt it wasn't good enough. what didn't happen. what did happen despite all of that is that the two presidents, president obama in his peach earlier in the morning and president rouhani very late in the day, early in the evening, both of them extended olive branches to each other. >> we are encouraged that

president rouhani received from the iranian people a mandate to pursue a more moderate course and given his position i'm directing secretary kerry to work on an agreement. >> translator: it comes with the political will of the leadership in the united states and hoping that they will refrain from following the short-sighted interests of war mongering pressure groups. we can arrive at a framework to manage our differences. >> we can manage our differences. secretary kerry will try to begin that process on thursday when he meets with his counterpart to begin this entire process. again, that's going to continue. already off to a rocky start based on what happened. there was a luncheon scheduled

so the iranian delegation can go to t.normally it's purposefully scheduled so that they can't come. that was clue number one that then eventually it came out that there was going to be no such meeting happening, no handshake, to meet up in the hallway and it's because the iranians didn't want to participate. at the end. day it was a snub. >> a snub. >> that's incredible to me. the sanctions will remain in place. michelle caruso-cabrera, thank you so much. really appreciate t.sure looks like some traders in chicago got news of the fed's no samer decision earlier than everyone else did last week and now there's a federal investigation on to find out if somebody broke the rules and leaked the information too early. cnbc's eamon javers has that story next up on "kudlow.

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. just last week the federal reserve shocked financial markets with its decision not to taper down its bond purchases. cnbc's own eamon javers reports some traders may have been ahead of the fed decision. eamon joins us now with the details. good evening, eamon.

what can you tell us? >> good evening, larry. well, we learned today that the fed itself is contacting news organizations to review the procedures for securing information that's given to the news organizations in the fed's lockup room. that's the area inside the room where reporters get advance information on fed decisions so they can prepare stories for release, in this case exactly at 2:00 p.m. the question here is did anybody transmit any information out of that lockup room before the agreed upon 2:00 p.m. embargo time? the fed is investigating this based on an unusual pattern of trading that would suggest that some of this information would end up in chicago before it reasonably could have. let me show the charts that explains some of these patterns, starting with the e-mini futures trade in chicago on wednesday just in the wake of the fed announcement. the blue line you see there on the left side of your screen, that's 2:00 p.m. now because of the speed of light and telecommunications it takes about seven milliseconds

for data to leave d.c. and arrive in chicago so in theory we shouldn't see any reaction in the market until that yellow line, which is seven milliseconds later, and yet you see in the blue line and the yellow line, the market is already starting to skyrocket up in response presumably to the fed's decision. what is that trading all about and how did it happen, that's one of the things they will try to understand. similarly look at gold futures. same deal here. the blue line is 2:00 p.m. the yellow line is seven milliseconds. that's when our experts tell us that the data could possibly have been transmitted to chicago. why is there trading and an apparent market reaction inside the red circle between the two lines? this n that seven millisecond period of time there should be no reaction in the market if that information is leaving the federal reserve at 2:00 and traveling all the way to chicago. i can tell you, larry, as of tonight, we have received responses from a variety of news organizations that operate what are called low latency data feeds, basically super high fast

al grimmic trading feeds that plug directly into machines that automatically issue trades. i want to highlight for you two of those responses. we've talked to every firm in this lockup that kind of data. we asked dow jones whether or not they transmitted any data out of that room before 2:00 p.m. they did not answer that question. instead, they gave us this response. we will continue to work with the fed cooperatively to report in full accordance with their desires. similarly we talked to thompson reuters which operate in low latency speed. we asked them the question and did not provide us a direct answer to the question instead providing this statement saying we distributed the news per the fed's embargo process. we did not release prior to the 2:00 p.m. embargo and here, larry, is where things get very confusing because the federal reserve has not responded to our questions about whether or not it would violate their rules to send this information out of that lockup room to computers outside the room any time before

2:00. they will not give us or have not given us any answer to the question and that's the key question in that, larry. hang on. stay with me, eamon, the senior vp and art hogan managing director offy will sard capital markets. i'm not screenus about all this high-tech stuff and what i know is the speed of light is seven milliseconds and going to new york to chicago or washington to chicago is three milliseconds. i don't know how you get it there faster than a speed of light, unless, unless somebody either beat the clock, started earlier than 2:00 p.m. or there's a tip involved. >> right. i think that's exactly correct, larry, and the further we look into this, you'll find one of two things. obviously there is some sort of league of information allowing somebody to trade before anyone else could, or, you know, the bets that were being made at exactly 2:00 were shut off, you know, pre-ordained regardless of

what the decision was and that's the only other logical explanation. some would say i don't care how the news will come out. it's going to move markets. i'm going to buy at 2:00, the only other explanation so obviously there's some work to do, and as we look at this, this is a continuing conversation about equal dissemination of news and whether or not this embargo is the right thing to do and whether it should be released at the same time and not embargo it and let folks know ten minutes beforehand. >> i favor that last solution. i'll ask eamon about that. eamon, why do they? why don't everybody get the information at precisely the same time? >> well, i mean, the argument by the fed and a lot of supporters support this and we participate in that embargo, too, larry, they need to give the reporters some time to digest the document, to understand what it is that they are reporting on, to type up stories and-to-be to be prepared to go on television to talk about it, so they give the reporters about ten minutes head start inside that lockup room and in the case of tv

reporters they physically escort the reporters out of the lockup room to the tv cameras to make sure that they don't in any way signal what the decision was to anybody before they go on the air at exactly 2:00, so it's a tried and true method that's coming into conflict with millisecond twelve trading and speed of light telecommunications capabilities and the two things are at odds with each other. >> we've had problem here with other data points, not just the federal reserve. other data points have been leaked out earlier or transported earlier. up. add tis about this, einstein's law was beaten. the fact that markets, what exactly happened to the markets, stocks went up and gold futures went up. it was exactly the same. >> and in that way it didn't really hurt investors so much except they ended up paying higher prices than they otherwise would have because the prices had already run up. i don't really buy the theory

that these were pre-ordained trades so why not make them five minutes earlier if they were. if you're trying to outguess what the federal reserve will do, why don't you wait until exactly 2:00 and isn't there too much room for error? i think we've got too many problems between the university of michigan, the consumer confidence numbers, between this and the problems we've had with flash trading and crashes were starting to underconfidence in the system and even if it means reporters have to get their stories out ten minutes later, whatever they have to do to get confidence back in the system, that needs to be done. >> all right. we'll leave it there. >> go ahead, art, real fast. >> i was going to say real quickly is that if we know we have market-moving information come out, we can halt trading for a period of time, whether it's five minutes before or five minutes after. everybody gets the training at the same time and there's no way to gain the system.

>> maybe we bring back einstein. eamon javers, thanks very much for joining us. much more to today. got to tackle today's market action. i want to know why the dow and s&p is down four days in a real? it can't be the uper dovish fed, theien of dovishness is going to be the fed so what it is stay with us. "the kudlow report" continues. i was made to work.

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welcome back to "the kudlow report." i'm mary thompson. the dow closing lower for the fourth straight session. it's lost a total of 342 points over that time period. the s&p 500 falling in today's session dropping bloat 1700 level. the nasdaq did post a small gain, snapping its recent losing streak. larry, we keep hearing the same concerns, uncertainty about fed policy and about a government shutdown. those two things are weighing on the market. back to you. >> many thanks to cnbc's mary thompson as always. let's welcome become our guests. you know, art hogan, the federal reserve is probably not going to tighten in my lifetime, ever. i mean, that's janet yellen is going to be the queen dove.

we heard from bill dudley of the new york fed. earnings are probably going to go up. we won't have a double dip recession, so easy money and some with higher earnings. might this four-day selloff be a tremendous buying opportunity, i ask you art owingan. >> you set the question really well and another thing to add is europe is bottoming out and getting less worse and a pick up in in chinese activity and taking into account the things happening in washington with the debt ceiling you have a clear runway into early next year. earnings with reacceleration, partly due to economy growth, very lieb corporate america that can start putting some of that money to work, but i think we get through the dysfunctional issues that we've gotten used to around the government debate and

the we have a significant run-up from where we are now to the end of kump. >> we will senator kelly ayotte and everybody watching it is so afraid of government shutdowns and defaulting on the debt that i think any of these shenanigans will amount to anything, maybe a day or two on the shut don, they will never default on the debt. why not buy this market after this mini correct, what's that, 3%, 5%? >> not much of a connection. you haven't seen the transports breakdown or the mid or small caps and all you see a market correcting off of its highs because of the uncertainty. the booze is still in the bunch bowl. the problem is washington is trying to burn the room down so what we're seeing is not a lot of selling but right now an absence of buying. investors are collectively holding their breath while they see what washington is going to do. i do think it will be an

opportunity. now the other aspect of this is that ten-year treasury yields have been improving quite a bit and yet bonds have become a riskier investment than they were even six months ago so as we come out of this i think stocks are going to look even more attractive and bonds and you don't have to buy tomorrow. washington always waits till the very last second so there may be high anxiety and beyond that i think you can use the dip to buy equities. >> all right. art hogan, where would you go to buy equities? >> to tim's point, not only want to be away from the bond but also the bond surrogates so if you're wrapped up in the dividend darlings, if you've been in the safety staples, the utilities, et cetera, that itself is like the bond market where you want to lean more towards the cyclicals, things that will be better whether in the industrial space, things that that have exposure in it

and certainly one of our favorite stocks, dunk i don't know brand, competitor moving out to the west coast to the east coast, and we like oracle, lsi and the technology space and vana pharmaceuticals and jazz pharmaceuticals in the health care space, but focus on cyclicality and defensive plays are overdone, staples trading at 20 times and cyclicals trading at 12 times. >> we will leave it there. thank you, gentlemen, appreciate it. now the obama care effect is just starting across the country, but that effect is not small. the man who has been charting the job losses and other company responses to the new health care law better than anybody else is about to join us live. please, stick around. [ male announcer ] 1.21 gigawatts. today, that's easy. ge is revolutionizing power. supercharging turbines with advanced hardware and innovative software.

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welcome back to "the kudlow report." i'm mary thompson. a new found glitch in obama care could leave half a million children without insurance. get a little complicated but basically those people whose employers didn't provide affordable plans qualified for subsidized insurance through the exchanges but if the plan is only for the individual the employees wouldn't be able to get government subsidies to buy insurance on the exchanges for th of their family. mary, back to you. >> another reason to delay the individual mandate, or the whole thing, so let's talk. not only is obama care full of

glitches like this, a new report says that other 300 companies have cut hours or jobs because of obama care. joining us now is the author of that report jed graham of investors business daily. welcome, jed. >> thank you very much. >> so hours worked and jobs lost, hiring. tell us about this. >> well, our list has 301 employers. actually 250 of those almost are in the public sector, so that's not surprising because the public sector is a lot more transparent about workforce policies but because we don't have many in the private sector doesn't mean it's happening there and we have evidence that it is. >> is it picking up speed in terms of your investigations? i know not every private company, private sector wops to trade on stock exchanges want to tell you everything we're doing but as we move down the road towards this mandate that they are picking up a hiring less,

hours worked less? >> well, there is evidence actually that it is pick pentagon up or it was at least through the latest available industry work hours data through july. actually, if you look at the -- the industry sectors where wages are $14.50 or below, the workweek has fallen to a record low and tied for the record low with the very bottom of the recession, and that covers about $29 million workers. and over all i gather from the article you're at 28.8 hours worked, down from 30.7 hours work for the month of july. what happens in work in the snit in these numbers sound like france. >> if you look at the overall economy we're pretty much back to where it was at the start of the esession. may be the bottom third of the

workforce so it might not have a huge economic impact. there is an impact on xwurls and families. in several speeches president obama has gone out of his way to say, cricism about damaging jobs and the worked hours are gone and the white house is putting out studies about part-time workers. let talk about part-time workers. is the surge in part-time workers true? >> i don't actually think it's that true. one of the issues with obama care is that full-time is 30 hours but part-time for the bls is 35 hours, so if you have workers from 30 to 34 hours getting cut it wouldn't show up in a rise in part-time. the other issue is just that, again, it's the bottom third of the workforce that we should be most concerned about. if two-thirds of the work foxx

people earning $20 and $25 an up per hour are not getting affected, you wouldn't expect to see dramatic changes, you know, on a macro basis, but it is the others, and the wows is looking from way up above but the people down below are getting hurt. >> jim graham with investors business daily, thanks. >> thank you so much. >> that's it for to the eats show. tomorrow tune in my interview with my special guest, senator rand paul. we'll talk debt ceiling, government shutdown and much more. that's tomorrow night. see you tomorrow evening. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. [ male announcer ] staying warm and dry

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