r needs to give his firebrands in his caucus -- >> hey, guys, we've got to let you go here. we expect the president in a couple of minutes. we just saw presumably his remarks put on that podium by a staffer. our friendsa at "fast money" are going to continue to cover the story along with the traders there. let's go to the nasdaq and melissa lee who takes over our coverage. >> thanks, scott. as you mentioned president obama will be speaking at any moment. we'll bring in those comments live as soon as they happen. in the meantime let's bring in cnbc's eamon javers and john harwood. john, i want to go to you first. please set the table for those of us tuning in right now. >> for those tuning in right now, what has happened today is that the senate has rejected the house extension of government funding, which included a delay in the implementation of obama care and also would have gotten rid of the so-called medical device tax, which raises $30 billion over ten years to help pay for obama care.

and that meant automatically that a clean extension of government funding went back to the house. the house had a meeting this afternoon. their members decided they were not going to extend government funding in a way that would avoid a shutdown. they're sending a new bill back. once they get it drawn up and passed on the floor of the house of representatives, that would delay the individual mandate, which is at the core of obama care and it would also repeal or get rid of what they call a special exemption for house members and their staffs in how obama care applies to them. and the senate's going to reject that. >> right. >> harry reid's already said that's a dead letter. the president, we expect him to come out and embrace that position. and that leaves us with just a few hours to go until midnight. if nothing changes in the house republicans' position, we're going to have a shutdown. >> i want to go to ed mills right now. ed, just about a minute ago -- actually, the president is at the podium. so let's listen in.

among the responsibilities the constitution endows to congress, two should be fairly simple -- pass a budget and pay america's bills. but if the united states congress does not fulfill its responsibility to pass a budget today, much of the united states government will be forced to shut down tomorrow. and i want to be very clear about what that shutdown would mean. what will remain open and what will not. with regard to operations that will continue, if you're on social security, you will keep receiving your checks. if you're on medicare your doctor will still see you. everyone's mail will still be delivered. and government operations related to national security or public safety will go on. our troops will continue to serve with skill honor, and courage. air traffic controllers, prison guards those who are with

border control -- border patrol will remain on their posts. but their paychecks will be delayed until the government reopens. nasa will shut down almost entirely, but mission control will remain open to support the astronauts serving on the space station. i also want to be very clear about what would change. office buildings would close. paychecks would be delayed. vital services that seniors and veterans women and children, businesses and our economy depend on would be hamstrung. business owners would see delays in raising capital, seeking infrastructure permits, or rebuilding after hurricane sandy. veterans whof sacrificed for their country will find their support centers unstaffed. tourists will find every one of america's national parks and monuments from yosemite to the

smithsonian to the statue of liberty immediately closed. and of course the communities and small businesses that rely on these national treasures for their livelihoods will be out of customers and out of luck. and in keeping with the broad ramifications of a shutdown i think it's important to remember the federal government is america's largest employer. more than 2 million civilian workers and 1.4 million active duty military serve in all 50 states and all around the world. in the event of a government shutdown, hundreds of thousands of these dedicated public servants who stay on the job will do so without pay, and several hundred thousand more will be immediately and indefinitely furloughed without pay. what of course will not be furloughed are the bills they have to pay. their mortgages their tuition payments, their car notes. these americans are our

neighbors. their kids go to our schools. they worship where we do. they serve their country with pride. they are the customers of every business in this country. and they would be hurt greatly. and as a consequence all of us would be hurt greatly should congress choose to shut the people's government down. so a shutdown will have a very real economic impact on real people. right away. past shutdowns have disrupted the economy significantly. this one would too. it would throw a wrench into the gears of our economy at a time when those gears have gained some traction. five years ago right now our economy was in meltdown. today our businesses have created 7.5 million new jobs. over the past 3 1/2 years. the housing market is healing, and our deficits are falling

fast. the idea of putting the american people's hard-earned progress at risk is the height of irresponsibility. and it doesn't have to happen. let me repeat this. it does not have to happen. all of this is entirely preventable if the house chooses to do what the senate has already done and that's the simple act of funding our government without making extraneous and controversial demands in the process. the same way other congresses have for more than 200 years. unfortunately, right now house republicans continue to tie funding of the government to ideological demands like limiting a woman's access to contraception or delaying the affordable care act, all to save face after making some impossible promises to the extreme right wing of their party. let me be clear about this.

an important part of the affordable care act takes effect tomorrow. no matter what congress decides to do today. the affordable care act is moving forward. that funding is already in place. you can't shut it down. this is a law that passed both houses of congress a law that bears my signature, a law that the supreme court upheld as constitutional, a law that voters chose not to repeal last november, a law that is already providing benefits to millions of americans in the form of young people staying on their parents' plan until they're 26, seniors getting cheaper prescription drugs, making sure that insurance companies aren't imposing lifetime limits when you already have health insurance, providing rebates for consumers when insurance companies are spending too much money on overhead instead of health care. those things are already happening. starting tomorrow, tens of

millions of americans will be able to visit healthcare.gov to shop for affordable healthcare coverage. so americans who've lived for years in some cases with the fear that one illness could send them into bankruptcy, americans who have been priced out of the market just because they've been sick once, they'll finally be able to afford coverage. quality coverage. many of them for the first time in their lives. someone may be sick as we speak. and this is their best opportunity to get some security and relief. tens of thousands of americans die every single year because they don't have access to affordable health care. despite this republicans have said that if we lock these americans out of affordable health care for one more year if we sacrifice the health care

of millions of americans, then they'll fund the government for a couple more months. does anybody truly believe that we won't have this fight again in a couple more months? even at christmas? so here's the bottom line. i'm always willing to work with anyone of either party to make sure the affordable care act works better. to make sure our government works better. i'm always willing to work with anyone to grow our economy faster. or to create new jobs faster. to get our fiscal house in order for the long run. i've demonstrated this time and time again. oftentimes to the consternation of my own party. but one faction of one party in one house of congress in one branch of government doesn't get to shut down the entire government just to refight the results of an election.

keeping the people's government open is not a concession to me. keeping vital services running and hundreds of thousands of americans on the job is not something you give to the other side. it's our basic responsibility. it's something that we're doing for our military. and our businesses. and our economy. and all the hard-working people out there, the person working for the agricultural department out in some rural community who's out there helping some farmers make sure that they're making some modest profit for all the hard work they're putting in. the person working for hud who's helping somebody buy a house for the first time. there's somebody in a va office who's counseling one of our vets who's got ptsd.

that's would we're here to serve. that's why we're supposed to be carrying out these responsibilities. that's why we should be avoiding this kind of constant brinksmanship. it's something that we do in the ordinary process of this extraordinary system of government that we have. you don't get to extract a ransom for doing your job for doing what you're supposed to be doing anyway, or just because there's a law there that you don't like. the american people sent us here to govern. they sent us here to make sure that we're doing everything we can to make their lives a little bit better. to create new jobs, to restore economic security, to rebuild the prospects of upward mobility. that's what they expect. and they understand that there are differences between the parties. and we're going to be having some tough fights around those differences.

and i respect the fact that the other party's not supposed to agree with me 100% of the time just like i don't agree with them. but they do also expect that we don't bring the entire government to a halt or the entire economy to a halt just because of those differences. and that's what they deserve. they've worked too hard for too long to recover from previous crises just to have folks here in washington manufacture yet another one that they have to dig themselves out of. so congress needs to keep our government open. needs to pay our bills on time. and never, ever threaten the full faith and credit of the united states of america. and time's running out. my hope and expectation is that in the 11th hour once again that congress will choose to do the right thing and that the house of representatives in particular will choose the right thing.

thank you very much. >> we've been listening to president obama make comments on a potential government shutdown and the potential impact on the u.s. economy. just about ten minutes of comments there. outlining what will and won't be open tomorrow, should the government shut down. but also really making some sharp political jabs saying that house republicans are continuing to tie funding to the government to social issues including the affordable care act and funding for that in order to save face. he said that one faction of the party doesn't get to shut down the entire government just to refight an election, pointing to the tea party. want to go back down to d.c. to our political team john harwood and eamon javers joins us. john, want to go to you. what did you make of the comments? >> nothing surprising in what the president had to say. he was trying to put the pressure on republicans, as you mentioned, melissa. he tried to do it in a tone of sadness rather than anger. we'll see whether that has any effect on public opinion.

he tried to reassure -- and in the process of reassuring unsettle others. reassure people that your medicare benefits will still be there, your social security checks will still go out. but then he talked about all of the people who will be sharply impacted. the civilian government workers who will be furloughed, who won't get paid and some of the services that will not be available, all trying to create some heat on house republicans to give in and extend government funding. it does not appear that's going to happen tonight. but we don't know how long it's going to be before it does happen. >> and to that point, eamon the president was very clear saying there's going to be real economic impact on real people saying that these workers who will be furloughed, they are our neighbors, they are our friends and family the people around-u and that just because a park shuts down there will also be ancillary impacts on small businesses around there. by tying this fight to the u.s. economy and to the recovery that's under way, i mean that really hits home for most

americans. >> that's right, melissa. and i think john really nailed it just now. what the president was trying to do just here was two contradictory things at the same time. on the one hand he's trying to reassure americans that it's not going to be that bad if you're on social security, medicare, don't worry, your check's not going to be cut off starting tomorrow. on the other hand, he was saying it's going to be pretty bad nonetheless and there are a lot of consequences for lots of americans and that's a bad outcome and we shouldn't have that up on capitol hill. he said that remember that continuing to funds the government is not a concession to me, the president of the united states, president obama personally. i can tell you that the republicans here on capitol hill where i'm standing they don't see this that way. they see this as a situation where the president wants something from congress, they have the votes, or they control a bloc of votes and they can force the president they think to make some serious concessions. they've continued to offer opportunities for the president to make concessions and he's continued to reject those. so we're going into the night here, and it's going to be a long night because it's a real standoff. >> it will be.

ed mills of fbr also joins us from austin, texas i believe. ed, i want to go to you. can you put the president's speech into context? does it move the needle either way because he's saying one, like eamon said, it's going to be scary but not so scary and then he's saying let's get out of partisan politics but then points the finger at the republicans? >> yeah, i think whatith that speech it is fully clear he believes the government is going to shut down. that was getting the american people prepared for what we need to be looking for and trying to focus it away from a republican versus democrat fight, versus you're hurting average americans. and it's not just government workers, who have been much maligned in the last number of years. it's that small business owner. it is your neighbor. it is people you know and people who you want to succeed and having the republicans hold them hostage is unfair to them. >> i want to bring in our traders as we continue to

discuss this. it did sound like it was going to be a foregone conclusion, that in seven hours' time or less there will be a government shutdown. what's the take on the floor? is this priced into the market so to speak? >> i think it was a long way in being priced in today. and i think there could be some further room to the down side. but i would say that's buying opportunity just as i said last week. i don't think it's going to be a long-lived event. and i think it is going to be a buyable event. >> all right. want to go back to d.c. john, eamon, i know it's going to be a long night for you guys. want to let you go. thanks so much for analyzing the speech with us. ed mills you're going to stick around with us. at this point, ed does your view as to what goes on in washington not just in the next 24 hours but also when it comes to the debt ceiling debate change? >> not really. i actually think in a perverted way the market should almost be rooting for the shutdown. because what that does is it brings forward the debate over the debt and the kind of need to raise that ceiling. and if we are shutting it down

it makes it extremely likely that any deal to reopen the government includes the provision on raising that debt limit and we can solve this altogether rather than having it right on october 15th, 16th, and 17th we're having that fight on october 1st. so i think that ultimately i do agree it's probably a buying opportunity. a lot of opportunity but it's healthy because it draws this debate much closer to now. >> explain that. because a lot of people might say that actually cutting the debt limit would be very good for the economy too. there are of course a lot of attachments to a statement like that. but ultimately, if anything this to me puts the fed more in play doesn't it? this means that the fed, this means that monetary policy suddenly has to do what fiscal policy cannot. it means all the excitement we had ten days ago from the fed should be even more excited and more frothy. that to me is a better argument. >> i completely agree because what happens now is because the fed decided not to taper at their last meeting, now with the dysfunction in d.c. i think the

insulation that the market has is that if we actually go into a shutdown there's virtually no chance that they decide to taper in october. they might not even have the jobs numbers from bls in a shutdown. so that insulates it. but what we're seeing is that we always knew there was going to be brinksmanship. and this is kind of like a regular season game and we're having the brinksmanship in the real fight over the regular season game. and it's not the playoff or super bowl game that is the debt limit. and by kind of having it earlier, kind of what republicans think is if they cave now they know that democrats will always think they blink and if they're willing to shoot the hostage here that's about the only thing that gets democrats to the table where they might be able to win one or two things and they have a little bit of time to get that done. so i think that's a net positive for having it right now. >> all right, ed. so a lot of colorful metaphors. what's the bottom line? >> come on, ed. >> you are rooting -- you say we are better off as americans, we are better off shutting this

government down in order for the debt ceiling debate to be less acrimonious. >> yeah. i think everyone in d.c. has known that we're going to have a real battle royal either on funding the government or on the debt limit. if republicans caved on funding the government, that would have been a sign that the fight was going to get much harder on the debt limit. now that they have kept their fight on funding the government puts pressure on a deal that does both, reopen the government, raise the debt limit, the market rallies at that point. >> ed, thanks for breaking that down for us. appreciate it. ed mills with fbr joining us from texas. stay with us. more on the countdown to the shutdown. less than seven hours away. we'll get the traders' takes and what the shutdown will mean for your money. back in two. n two. you really love, what would you do?" ♪ ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told

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>> it's relatively low but we did spike over the 200-day moving average and we've been watching the volatility index steadily move to the up side. we were trading 13 or 14 now all of a sudden today we got over 17. maybe we'll even revisit those june levels when we had the spike before. i wouldn't be surprised. if the government does shut down, which obviously ed mills was talking about earlier, we will see that spike in my opinion. i also in my opinion think that's a great opportunity. i think we'll see some selling, see some pressure on the market. i love these financials. i've been talking about a sell-off, looking for a sell-off. i think names like jpmorgan, which is one of those outstanding names along with a wells fargo, i'd love to see people come in and start selling these financials because i think those are the best opportunities. >> it's interesting because s&p just cut the financial side down today saying earnings next year are going to be much slower than last. >> i'm right there with pete. i hope we'll see an opportunity in citibank. below 48. i'd love to add. i think this market is getting

inured to these sorts of crises with congress. we had them two summers ago in august. we had them in december. we had the sequestration in february. and now here we are again. so i think these congressional acts are sort of crying wolf and the market's not going to respond too much. >> at the same time we're watching very closely the economy. not that we know if we'll get any sort of economic data while the government's shut down. but in theory this would be a drag on gdp depending how long the shutdown is and mark zandi at moody's estimated if the shutdown three to four weeks that could actually shave off gdp as much as 1.4%. >> that's what i've heard. and it really depends, though, where you're looking. and to me i layer in this is quarter end after it was a fantastic september quarter. i think a lot of people going into this event felt no reason to be out over their skis, which they may have been two weeks ago after the fed when it seemed like there was no reason not to put the pedal to the metal. i think if you look at what's going on in the stock market consumer staples today sold off in a big way and there's a couple companies specific reasons but also valuations going into earnings season next week in a lot of these sectors look challenging.

the things that are going to continue to work to me are the things you were buying five days ago, which to me are commodities and places where you actually have very interesting valuation ppz china had a pmi number out last night, was not as good as expected. copper was up, crb up 4%. athis is a place where you're buying things that are interesting. nothing happened to global growth tonight. and this is a trade i've been in, i'll stay in. >> the healthcare space has taken it on the chin. united healthcare. i think that's obviously going to be a buy. i think they're going to wind up coming out of this a little better than most people think. also the medical device companies. i think bo sox actually looks pretty good -- >> boston scientific. >> you don't mean the boston red sox. >> no. i think bsx looks nice. >> jpmorgan had a note today saying if that tax repealed somehow the mac could boost bps by 3.4% for the large cap names for bo sox as you call it but boston scientific for the rest of us.

>> i think it's also been factored in. i think it's been factored in a lot on this tax already in the stock itself. >> that could really be a lift here. pete, in terms of -- you were mentioning the sell-off. will we see the sell-off in names that had been increasing much more than the rest of the market? like the internet technology names. >> we haven't been. you look at some of the chinese internet stocks we talk about all the time under the radar and nobody seems to be talking about. i know, tim, you've talked about some of these names. you look at the baidu, the sohu, and the solar space, they've had an incredible year -- >> you would still hold on through the shutdown. let's say we shut down seven hours from now, we're -- >> would i be holding those names? >> would you be holding thoelz names and would you continue to hold? >> the names i'd rather be holding -- i'd take off some of those names and stay with some other names or get in deeper to the energy space. i love that space. i love what i'm seeing on the energy space. some of these drillers, the shale area particularly seems to be where everybody's focused. i still think by the end of the year we will see m & a in that sector.

there's just too much activity there right now. >> what's on your shutdown shopping list? >> well, i like the space also. the drillers and energy space. like that as well. i was kind of surprised to see gold down today. i would have thought this maybe would have taken taper off the table a little bit and that would have been a lift for gold. but -- in fact it went the other way. >> i would echo what pete said. the chinese internet stocks are not playing on anything that's going on here. be clear. these are momentum plays. and if you look at across the sparks baidu is right up at five-year highs. i think this is a dangerous place to be buying a lot of these names if momentum falls out of this market. it has nothing to do with what's going on. these guys are monetizing the same way people are excited about google and facebook over here. i do think if you look at the solar space there are great things happening. a name i'm starting to get out of jail on. i owned it under $20. the stock's at 15 bucks today. it's down 2 1/2 dollars because what goes on in solar when it overshoots it overshoots hard and people worry about balance sheets and worry about overproduction which we had two years ago. i stay in that solar trade and i if i if you pick balance sheets

in the sector you can still win. >> that tax deal with the solarus. >> i'm joking about this but tesla on a day when you thought the market was under pressure this actually performed very well. but i do agree with pete when he started out banks america i think has got a huge potential to run from these levels. i bought more. it's been a long position for me for a while. i bought more today. >> got to take a break now. coming up next what history suggests about the market during past government shutdowns. you might be the market. much more "fast" straight ahead. >> "fast money" means trading. everybody's got to bring their best information each and every night. the entire trading day is the preparation for the show that night. >> it's idea generation. it's all about giving you a framework for how to look at the market. as the world has changed, our show has evolved. i am guy adami. i am "fast money." >> i am pete najarian. i am "fast money." pursuit of a better tomorrow is something we all share. but who can help you find your own

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♪ let's get back to what's going on in d.c. a potential shutdown. and this is, by the way, not the first time the u.s. government has been in this situation.

in fact, there have been 17 shutdowns in the past 37 years. john stoltzvis is chief market strategist at oppenheimer and joins us now with the historical impact on the markets. and of course history's a guide. but what happened in the past? >> well, in the past if we go back to the clinton administration, what happened in november of 1995 through january of '96, there were two sequential shutdowns. the first one was related to medicare. and the second was related to a budget proposal by the administration. the market actually moved up about 1.4% in the first one. in the second one it was essentially flat. and then after both of these periods passed the market went up 10.5%. >> at the same time there are people who are going to say you can bring up any chart, that's all great and fine but things are different this time around we do have a major showdown coming up potentially on the debt ceiling. so it is a little bit different in terms of the circumstance. is this the major reason why

you're saying we should buy the shutdown, what we did in the past? >> well i think if we think about what mark twain said, we always repeat this a lot-s mark twain said history may not repeat itself but it certainly does rhyme. and what we'd have to think here, especially if we look back over the last five years, how many times have we been hung over a virtual cliff? this reminds me a lot of -- i hope it's not like t.a.r.p. where we have to get some nasty action in the markets to get the politicians to move. but if it's like the cliff they'll get it together, they'll scare the daylights out of it for a day or two, then they'll realize their constituents -- >> although we don't seem scared. >> pardon? >> no one seems scared. pete talked about the vol -- >> one of the concerns i have is around the cliff you had a lot of business leaders absolutely lobby lobby politicians on what they really wanted to see happen and this time everybody's very laid back at it. now, what i think, though, what will happen is inevitably the constituencies will get on the

phone calling both sides of the aisle and they'll say listen, guys, let's get some action here, get this resolved. because the reality is we're very fortunate that fed chair bernanke did not begin the taper. we got plenty of liquidity rolling in here. and we have low interest rates. we have a market at very high levels. >> let's extrapolate here. if we do believe history will rhyme and that the market is a bye going into a shutdown, what sectors are poised to gain the most during a shutdown? >> i would say based on what we saw last week if that was going into this and we'd seen the market decline in about six of the last eight trading days, we would have to expect there would be consumer discretionary and industrials. a lot of people would say, well industries aren't they going to be impacted by a government shutdown? they've already been hit by sequestration. the industrials we would suggest would be more like honeywell boeing. both of those commercial

aerospace plays, secular trends out of asia that are really moving right now, and then eaton for something stateside related more to trucking. the thought is here then in terms of retail retail would be the other one, would be -- probably go for tiffany's, exposure to japan, and then we'd also say ford motor company. >> at what point does this thesis fall apart? it sounds like it's pred kaigsed on the notion the shutdown will be short-lived and not reach the point where it will shave the gdp by 1.4%. >> it would have to be a scenario in which these guys who are baby boomers, they are toward the end of their political career, would say the hell with our legacy they can say what we want but we're just going to do a clint eastwood here or worse we'll do a quentin tarantino hostage situation -- >> they already blew up their legacy though. it's scarier because they already blew up their legacy. these guys don't have a legacy at this point, or they shouldn't. >> i would think they actually redeemed themselves on the

fiscal cliff. they hung us over the cliff but they didn't take us over it. >> john thanks for stopping by. john stoltzfus of oppenheimer. let's switch gears and talk about facebook. it did finish the day in the red but briefly touched an all-time high earlier in the session. let's see how the options traders were playing this one. go to scott nations of nations shares in chicago. scott? >> melissa, down 2% today after an all-time high. but somebody thinks that 2% is just the beginning. one option trader was a big put buyer today, bought 6,000 of the january 44 strike puts in facebook. they paid $2.32. that means that they're protected with facebook below $41.68. but you know that's way below where we're at right now. facebook given the run-up that area's also no man's land technically. but somebody thinks this run-up is going to come a little unwound and they're looking for us to get back toward that ipo price of $38. >> thank you very much, scott nations. coming up next, house republicans going to war with the president and the senate

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welcome back to "fast." we're live at the nasdaq marketsite in new york city's times square. let's drill down on another sector affected by the shutdown. jane wells is monitoring how the defense industry could be impacted and which companies have the most exposure to a shutdown. jane? >> hey. well, if the government ran like defense contractors, melissa, we wouldn't be in this mess. despite sequestration, the stocks remain near all-time highs. i'm not talking 52-week highs. all-time highs. they've protected margins, in part unfortunately, though, by cutting jobs. ubs says while industry revenues are down 5% for the biggest players, head count is down 17% to a level last seen a decade ago but it estimates those job cuts slowed in the last quarter to only about 1%. does a shutdown speed them back up again? lockheed martin tells us that if there is a shutdown "unless we receive guidance from our customers," we know who the biggest customer is "our facilities will remain open and

our employees will continue to receive pay and benefits." the company recently increased its dividend and its share buyback authority by $3 billion. that's going to help the share price. and what sequester? just got another 3 billion plus dollar contract from the pentagon for a new batch of f-35s. also a nearly $4 billion contract for missile defendants part of that for the united arab emirates emirates. still the upcoming earnings reports will really be telling as the companies begin to feel the second year of sequestration and the pentagon runs out of what you might call spare change. key bank says "sequestration is here to stay, perhaps through 2016 which could create problems but mostly for smaller companies or those with shorter cycle contracts." key bank believes they'll be fine by cutting costs, doing more work in house and maintaining programs already in place. in fact, just about a half hour ago i got a news release from the department of defense. they gave pratt whitney $2.5 billion for spare parts. i mean we're only a few hours away from the government shutting down. things won't be as good as they used to be everyone believes,

but they'll be better than the cuts and consolidation of the 1990s in what key bank calls the last supper. melissa? >> all right. jane wells thank you very much. pete grasso, these stocks have been on a tear. the thinking was there were a lot of contracts doled out prior to those cuts being actually implemented so they actually got the benefit of those contracts longer term because they were sort of pushing them down the pike. >> so when you look at these charts, she's spot on. all these charts look good. lockheed general dynamics looks great. northup looks great. lockheed's my favorite but i don't think you can go wrong in any one of these names. >> pete? >> of all the names i like boeing. >> boeing also great. >> airlines -- >> john marshall. >> yeah. he was just talking about that as well from oppenheimer. he said look for those -- >> how many times have we bet against boeing in boeing has had its own internal issues and every time they had a bad issue they bounced back incredibly well. twice as high as they fell. >> no issue for boeing. >> doesn't matter. >> let's look at shares of jcpenney.

we're watching them in the after-hours session. a filing just made by perry capital slashing its stake to 3.3% from 6.2%. that's the equivalent of a sale of about 9 million shares here. yet another big shareholder seeming to throw the towel out in terms of belief in jcpenney. that's what it looks like on the surface at least. this on a day when jcpenney shares hit the lowest levels they've seen since the first term of ronald reagan's presidency. >> maybe they should start making fighter jets. >> coming up next just in case you missed it we're bringing you today's top moments on cnbc. plus the key meeting between investing icahn inging carl icahn and tim cook. much more "fast" straight ahead. ead. who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world.

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ask your doctor if humira can work for you. this is humira at work. welcome back. in case you missed some of today's top moments on cnbc here's our rapid-fire recap with tonight's "executive edge." >> it's not okay with me if we shut down. we've been trying to solve the problem. we're not the ones that want to shut down. that's the thing that is so interesting. >> they are going to shut the government down, and in doing so really wreak havoc with our economy. i really fear even more what's going to happen in a few weeks' time when the debt limit issue comes to the fore.

>> you work for the greatest company in the world! soak it in. >> ballmer was certainly soaking it in, taking a lap around seattle's key arenaaronrena to the tune of "i've had the time of my life." yes, from "dirty dancing." >> i won't be bullied. that's the key element. and the thing i'm really looking forward to is shedding some sunlight on how the s.e.c. works. >> this is warren buffett off his twitter account. actually, his fourth tweet ever. he says, "not even oracle knows what will happen." >> the relationship started about ten years ago with a mentor of mine, jay-z. he actually had his own watch as well with the same company, aldemare. and the ceo of the company now, francois, i was able to get a relationship with them. >> the house is going to take a position today reflecting one

fundamental principle that our country stands for. no special treatment for anyone. >> let us discuss. >> pete was great at that microsoft event. sounded exactly like him. >> i love this company. >> buy here in. >> i love the company. >> if ballmer stayed would you say it's a buy? >> if ballmer stayed? probably not. >> it is the management change that makes you optimistic? >> i don't know necessarily. everybody's talking about ma inging about mullally. i'm not so sure he's willing to leave ford and take that job. you've got to give them credit for some of the decisions they've made, getting themselves more in the cloud. >> warren buffett's fourth tweet ever and it was about "breaking bad." by the way, more than 10 million viewers tuned in. >> is that a new show jut coming out? >> get with it grasso. what's the trade for amc

networks? >> this is a company who's gotten a lot of loyalty not only for the obvious reason that's they have the most successful show but the way they ended it last night -- we won't give away the ending. >> spoiler. >> come on. it was ultimately something that's going to leave viewers feeling even that much more loyal. but if you look at their kind of core trio of names, also what's going on in the industry, consolidation, these guys look ripe for a takeout. cablevision, which spun them off, owns a big part of this. there are a lot of people that have interest in this name. and at 28 29 times it looks expensive but i bet it goes higher. >> let's look at tomorrow now. now that we talked about what happened today. auto sales for the month of september. the auto sector has been a bright spot in the economic recovery. grasso. >> the trend is still moving higher. ford is up roughly 30% for the year. gm up roughly 24% for the year. i think you're still okay in the auto makers. you obviously know my auto trade. >> say it. >> which is? >> i don't know it. >> you say it for me. >> tesla. >> tesla. >> 200. >> sooner. and then higher from there. >> wow.

>> all right. we are going to talk apple and tim cook meeting with carl icahn. after the break. stay tuned. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account.

activist investor carl icahn and apple ceo tim cook sitting down together earlier today. could icahn's input be the boost apple investors have been waiting for? and you know we have a street fight on this. >> good luck. no. >> tim is the bear. pete is the bull. 90 seconds total to make the case. pete, go ahead. >> you don't even have to start here but i will anyway. you look at valuation. phenomenal. you look at their cash. 147 billion. phenomenal. you get a yield. forget all that. how about the record launch of the snoen how about the ios, the record launch of that new operating system? how about the deal, tim, back in your world, the emerging markets, take a look at what they've done in japan and what they could potentially do in china. and lastly look at the fact that when you selluyou sell an iphone today in that two years you will get $330 out of every single sold phone because people are going to go to itunes store, the imac everything else. >> you done? >> give me something. >> everything you just said i have the total opposite view. that 9 million in sales, first

of all most of that with the s which sold only about 5 million. the c, which is supposed to be where these guys are going to get into china, get into india, was woefully undersold. about 2.5 million went into inventory. you talk about that c, they're number four in china, number eight india and these are the markets that they need. that c unlocked costs $595. the cheap one costs $595 in india. they haven't done a deal with china mobile. and you know what? they probably won't do -- >> they will. they have to do one. >> they will. but it won't be the kind of deal. they're going to have to heavily subsidize. why do you think that deal hasn't gotten done? they need tone china. they're in fourth place. it's the most important market for them. not this one. and they're failing. >> we have battled in this name before. and i'm going to -- >> your range you haven't broken out of it with icahn and 9 million in sales. how are you going to break out of that now? bear. >> the stock initially had a boost on word that icahn took a large stake in the company but has since given that whole thing up. >> he gave it all back.

>> that's the beauty of this -- >> let's talk about reg fd. what is tim cook going to tell carl icahn that he can't tell everybody? you can't sit down with a guy at dinner and give him some inside stuff. it doesn't happen. happen'll would never do that. >> it might just be carl talking at tim saying you'd better buy back stock buy back stock. >> we love carl. carl ace carl's a shrewd investor. but i don't think he has the inside track -- >> unreal. >> i've got to blow the whistle. >> when the most bullish stat on the stock is a buyback and we're talking about that and it's a tech company, a growth company you're in trouble. and technically i think it's challenged with a $500 lid. >> i don't think that's the most bullish thing. >> tonight the bear case on apple wins. >> what? [ female announcer ] it's time for the annual shareholders meeting. ♪ ♪ there'll be the usual presentations

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time for the final trade. tim. >> emerging markets got knocked back by the china numbers and also the stalemate, buy the een at 39.50. >> steve grasso. >> bank of america technically 13.80-85 a big level. >> karen. >> along the same lines i like citibank if you can buy it tomorrow below 48. >> i've always liked pharmaceuticals, i like them even more now. bristol-myers is going to go higher. >> i'm melissa lee, thanks so much for watching.

catch more "fast money" tomorrow at 5:00. meantime, special edition of "the kudlow report" tonight at 7:00. i will see you there with larry. don't go anywhere. "mad money" with jim cramer starts right now. my mission is simple. to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want the make friends. i'm just trying to make you a little money. my job is not just to entertain but to educate and to teach you. so call me at 1-800-743-cnbc. why weren't we down even more than we were today? isn't that really the question you got to ask yourself now that we're staring down the