the next few weeks. so shorter-term interest rates have been moving up. longer-term interest rates have been going down. >> and that has been the symptom all week. >> thank you all so very much. >> that has been the symptom all week. thanks, folks. we hope you enjoyed it at home. that does it for "power lunch." >> "street signs" begins right now. we'll see you tomorrow. and you are looking at live pictures of the white house where senate democrats, all 50 of them, plus of them, really, are heading to meet with the president. cnbc cameras are watching every move. there you go, folks. a lot going on right now in d.c. well, let's make a deal. stocks soaring as the gop gets set to put a short-term debt offer on the table. but is this just a good old-passioned, you know, can kicking that you need to sell? we're going to have your playbook ahead. the default risk to housing. what could really happen if rates spike? plus, the head of one of america's hottest biotechs tells us why he is up more than 250% this year.

and finally, mandy, a cure for hangovers may have been found, and it's from an everyday product of a well-known public company. we'll tell you what it is. i know you need to know. >>. [ no audio bei] >> we're going to get your microphone fixed in just a second. down to the market stats. quickly mandy was going to tell you the dow is up 243 points. the nasdaq and s&p are up high as well. it is a boom day all on expectations that a deal may be reached. let's go to bob and rick. and bob, i'm easily confused. i guess here's my confusion. is that yesterday we were doomed and now we're talking about a six-week solution. i mean, i've had gains of can kicking that have gone on for that. why in the world would the markets soar on a month and a half long patch on a broken leg? >> yeah. i'll tell you why. because the market has nothing but a very short-term fixation. they'll worry about that down the road. all they know about is what's

the next few days are looking like and the next few days are looking like there's going to be some kind of resolution. i know it drives everybody crazy, but that's the way the stock market is. we're having a rare day. a 90% day. this doesn't happen very often. 90% of the volume is to the up side and 90% of the stocks are higher. that doesn't happen very often. anywhere you throw a rock, you hit stuff up 2%. midcap stocks, small-cap stocks, even the big names, s&p 500. that whole sector is up 2%. put up the full screen. put up the board here. look. everything's up 2% today. finally i want to note, stocks like facebook, you're not getting the heavy volume selling we saw yesterday. 40 million shares in the first half hour. not getting that today. mandy, back to you. >> bob, thank you very much. i have liftoff on the microphone as well. rick santelli, walk us through briefly how this affects treasuries. when you take into account as brian just said, we could be looking at a temporary six-week

patch here. >> reporter: first of, when you look at a one-month bill which has had quite a bit of volatility, it was auctioned at 35 basis points, it's hovering around 25, it was in the teens earlier. and then you move out to the three-month bill which has been comatose at four basis points. i think that making a big deal about this, listen. i don't walk around worried i'm going to hit my meteor and i don't go out buying ferraris every time i buy a lotto ticket. so from my perspective, there's a certain market reality i think everybody is missing. i'd worry about the fat can we're kicking down the road. because if a six-week solution makes the dow go up 240 and makes investors happy, we shouldn't care what investors think because in the big picture, we're still looking at $17 trillion in debt. and even with a budget deficit at $670 billion which is the lowest it's been since president obama took office, but prior to that, it's still the largest ever just speaks volumes about how these solutions and the market's interpretation of them is ridiculous.

>> come on, rick santelli. you know that kicking the can down the road is washington's specialty. anyway, we'll look at more on the bond market impact in just a second. mean toil, as brian was saying, senate democrats heading to the white house, looks like they're inching closer and closer to a debt deal over in d.c. let's get straight to john harwood where things stand right now. john, what are we looking at? >> reporter: well, we're looking at the evolution of a solution. but it's going to come slowly. we've seen public officials bobbing and weaving on camera this morning about various contingency plans as they look for a solution. jay carney just finished a white house briefing in which he was getting questioned repeatedly on the republican offer for a short-term extension of the debt limit, but not a reopening of the government. and after evading the question for a while, he finally acknowledged that the government was -- that the president was, in fact, going to sign a short-term extension of the debt limit even without a reopening of the governm tinsist on reopening the

government, when you and your members go to the white house this afternoon, are you going to go along with that and reopen the government? here's what the speaker said. >> will you reopen the government if the president doesn't agree to do anything to change obama care? >> if ands and buts were candy and nuts, every day would be christmas. >> that's one of john boehner's favorite lines. ifs and buts were candy and nuts, every day would be christmas. he was not answering the question either. but i can tell you, brian and mandy, the pressure from the public is being felt by republicans. that's why they're crawling off this limb and beginning to make peace with the administration. and i would bet that by the 17th, both of these issues will be resolved, although we'll see when it actually happens. >> nice little moment of levity there. john harwood, thank you very much. let's do something right now that you may have previously considered impossible. talk about investing but not

lead with the showdown or fears of the debt default. instead, it is this incredible new report that is not getting a lot of play elsewhere. the imf saying that a reduction in bond buying by the fed too quickly could lead to 2.3 trillion in bond losses and yeah, that is trillion with a "t" if that's right. does that mean we could see a move into stocks or destruction of the financial system as we know it? jerry and your bond guy james cam from eagle asset management. jerry, two questions. is the imf right, and if so, would this bond slaughter be bullish for equities? >> again, it comes in the context. they're not going to taper unless there's evidence that the u.s. and for that matter the world economy issing do the things is needs to do, which is hanging around the 3% type of real growth rate levels that we need to see to get that escape velocity, what everyone calls it. if that happens and if the taper takes place, in fact, there will

be much less in dollars or euros going into fixed income in general and u.s. bonds specifically. that should be the kickoff point for what everyone's talking about is the big trade into stocks. it's overdue. it's been five years now, and all the market's been able to do is crawl back to its old high. when you look at underlying portfolios, a very large position is associated with fixed income. so it makes a lot of accepts that that type of move in a strong economy will bring people into equities again. and i don't think it's the end of the world for the fixed-income market. >> i mean, jim, obviously as a fixed-income guy, you're going to say this, but nonetheless, you don't think it's going to lead to a massive $2.3 trillion in bond losses, right? >> well, the interesting thing, mandy, is some of the losses have already occurred. if we go back to may/june of last year when the taper conversation began and rates went up about 100 base points, the losses aren't incurred by

intermediary retail investors. they've been incurred by the banks that have spent the last two or three years taking free fed funds at 0% and buying treasuries and mortgages. that's where the pain's been felt. and that continues to crimp credit creation, especially for housing. and i think that's perhaps the bigger picture that yellen bernanke were looking at in september. a 3% ten-year slows the economy dramatically. fiscal indecision slows the economy. disruptions in implementing obama care slow the economy. bonds are going to do fine here. >> in which case, you know, back in september when they decided to not taper, a lot of people around our table here said you know what? that's a very wimpy decision. they should have just bitten the bullet and gone ahead with the taper. when you look at it in retrospect, it actually seems kind kind of brilliant. >> and i think that there was more conversation. reading the fomc minutes now, there was more conversation specifically around that 3% ten-year, the effect in real estate and also a recognition that a fiscal showdown was

likely. look, congress has basically been scheduling crises for us two or three months in advance. we know they're coming. we know the drill. we've seen it before. markets generally are shrugging it off and almost ignoring the fiscal side of the debate and allowing the fed to continue to do heavy lifting which unfortunately is not transmitting to the real economy. financial markets -- >> james, we've got to go. i've got to get this to jerry because we have a lot of stuff going on this hour. why do the markets keep selling off every time we have these, to jerry's excellent point, sort of scheduled crises? the boy's been crying wolf for the better part of four years. >> think about this selloff. 3% or 4%, it was 10 prospe%. i think the markets are using these as a check. the market was overbought. this was the time, it's october. let it come in. what's interesting, though, is how many buyers there were down 3%, 4%, 5% in a lot of the leadership names. these are the stocks that have broken out this year, and we think as this gets resolved, those will go back to new highs. and that's what you have to

focus on. >> we said it yesterday. history says buy on these -- the next crisis we rally. jerry and james, thank you very much. >> greedy. >> that's right. warren buffett, excellent. let's toss now to dominic chu. you've got a market flash for us. >> we've got interesting news here with regards to blackberry because in a 13d, a regulatory filing, the co-founder of blackberry, of course, no longer managing the company now has filed with the s.e.c. that he now and entities close to him now own about 8% of the stock in blackberry shares. and during this process, they've also gone on to say that they are looking and considering it all available options with respect to their holdings of blackberry shares which could include, without limitation, a potential acquisition of all outstanding shares of blackberry. this is a regulatory filing. it's spiked toward session highs on that. a potential buyer is now in a mix in a regulatory filing.

back to you. >> dom, thank you very much, buddy. appreciate it. right here on the big show, will this whole debt fear debacle take its toll on the mall rats? and we ask our newest contributor is he is now ready to do something that he's sworn that he will not do. later on, diamonds and chocolate, yep, two of my favorite things helping to move the market today. we're going to tell you why when "street signs" returns.

we are less than one week away now from hitting the debt ceiling. but as john harwood just reported, it appears that congress is inching closer to a deal. the bottom line, though, folks, let's be clear, we have nothing set in stone. so the unthinkable is still thinkable, or at least ponderable. let's hit it on two fronts, retail and housing. >> i am pondering. joining us now is cnbc jim. it's already been a pretty sketchy environment for retailers. and i understand that as a result of the shutdown, day ten now, we're already starting to see some retailers pulling back on autos. >> we, in fact, are. i described my last trip to the mall as a scene of "night of the comet" because nobody was there and i was expecting zombies. it was pretty slow last week. and i've heard just recently that order cancellations are happening particularly in denim. but in general across the board, people are pulling back. they're nervous about a couple of things. they think the shutdown will have an impact.

they've already seen difficult sales in august and september as we just saw today. the best retailers that reported today didn't have good nobodies. god saved the other people that are about to report we haven't seen yet, right? so things are difficult. they were difficult in august. they were difficult in september. people are extrapolating that forward and saying this can't be good on the shutdown front. so they're pulling back. >> what are you most worried about right now, jan? any particular retailer? any particular segment? >> yes, i'm very worried about apparel sellers, mall-based because i think -- >> the a&f, aeropostales, abercrombies. >> anybody with apparel accessories because at least they have a home business. mall-based apparel guys do not. and apparel is getting killed by everything going into housing and cars and tech and not sweaters and shoes and accessories. >> as our viewers know or may not know, that we have a bet about jc penney.

and i've been crushing you. let's be honest. i said that sales would not go up year over year four quarters in a row. i've won three quarters, thank you. i am presenting you now with a towel purchased at jc penney, i presume, and that i am -- i'm going to give this to you and would like to know, are you willing to throw that in on our bet? >> i am willing to double down. >> oh. >> here and now because the fourth quarter will be positive, store-for-store comps despite the environment. >> i am giving it to you. >> i will double down right now. >> you're not throwing it in. >> i'm willing to double down and throw in a ride on my ducati. >> there you go. jan refuses to throw in this towel or throw up on this towel. all right. topic number two. how would any default or fatheaf one impact the housing market? the reality of a default just to

guess because we've never had one, but let's to the worst-case scenario. we miss a debt payment. bonds sink. interest rates spike. i mean a big spike. what happens to housing? >> much bigger deal than the shutdown. now, the main effects of the shutdown on housing are first of all that it's interfering with the process of some people getting loans. it also could interfere with purchasing power and housing demand in the markets like d.c. and other places around the country that depend more on federal wages. a huge interest rate spike, though, of course makes housing much more expensive. but it also could push us back toward recession. which means that not only raises mortgage rates, it also kills purchasing power. in other words, it's like the housing crisis all over again. but this time without the silver lining of low interest rates. >> and of course, affordability is already not that great, but i want to ask you, a lot of doomsday scenarios are out there about this unthinkable scenario. for example, the president on tuesday was saying it could permanently increase borrowing

costs. you know, there are other people saying that a fast and furious rise in rates could bring on a depression and things like that. as an economist, as someone in housing, what is your real thinking on what could happen with mortgage rates? >> my first expectation, first of all, is that the worst-case scenario is so bad that, of course, it's unlikely it will get to that point. it's very hard to guess what could happen with mortgage rates. it would be a much bigger impact than what we've seen over the past few months with concerns about tapering. you know, we have seen mortgage rates, of course, in the past in double digits. how long would it take to get back there? would we stay there permanently? is it irreversible if we have a default? no one has any idea. but if you want to be kept up at night, those are the things you can use to keep yourself up at night. >> okay. >> jed, thank you very much. appreciate it. >> thank you. still ahead, we're going to be hearing from the ceo of one company whose stock is up a whopping 260% this year alone. and it's not all good news out there.

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being the nasty people that we are, we found a disaster du jour. keep your on citrix. they're slashing their forecast both the top and bottom lines. full report on october 2rd. dominic chu has a market flash on another stock in the red in this otherwise big sea of green. dominic, bring us the bad news. >> well, mandy, the broader stock market, again, surging, but one stock being left behind is green mountain coffee. the company behind keurig's k-cups, whole foods will begin selling its own private label coffee pods and customers will be able to use whole foods coffee pods in their keurig machines. lower for the fifth day in a row. >> thank you very much. biotechs are back. the sector did hit a bump in the road earlier this week, falling about 10% in lee dthree days, i

worst losses in two years. but it's on the rebound. and remember, this is still the best subsector in the s&p 500. up about 50% this year. and one of the hottest of the hot, nps pharmaceutical, shares up 260 plus percent this year. joining us now, the ceo of nbs. doctor, thank you very much for joining us. another name we sort of dredged up in our "street talk" segment. your lead product is for something called short bowel syndrome. tell us what that is and how big the market is. >> well, short bowel syndrome is a condition, these are patients who for many reasons have a rejection of their gut and actually unfortunately then have to rely on artificial nutrition. that is given to them intravenously. think about it. intravenously anywhere between 10 to 12 hours every day. >> literally life changing for people. >> exactly. >> when you look at the share price, it's hard to imagine the

street hasn't already discounted not only the strength of gattex but also the potential commercial success of your other product. so tell us about what kind of potential you see. >> we believe it will have even a greater potential than gattex. and for both products, we're launching both products internationally. and this carries a lot of weight for us. >> it's not in approval stage, though, is it? >> we're filing it in the u.s. before the end of this year and in europe next year. >> when you're the ceo of a company and your stock goes up 266% as it is as i'm looking at the screen right now, it's a good feeling. employees are happy. do you feel an added pressure? do you feel like sometimes the markets get out of control? >> well, i don't know about that. but being in biotech is a lot of pressure in itself. we are in a very volatile market. we are in a very volatile sector, and we have to deliver value day in, day out. >> we saw ariad fall yesterday

70%. they had a disappointing trial. the investors in your space are used to a lot of volatility. do you not pay attention to the day-to-day machinings? >> it's a little bit of both. we are in a business where events are common. as a ceo, i look for the long-term strategy and this is what we did. solid strategy, good, talented people to actually implement the strategy and more importantly, delivering on every milestone we promise we'll deliver on. >> well, thank you so much for coming and talking to us about what you do and the products that you have. >> thank you for having me. >> thank you, doctor. on tonight's all-new "american greed," two fraudsters who made millions by scamming banks take big risks to flaunt their success. here's a sneak peek. >> and they enjoyed being wall street hot shots. >> there were people on wall street who wanted their business. and took them out for dinners and treated them very well, took them to the floor of the stock exchange.

>> they bought philip morris stock, texas instruments stock, and they bought netscape. >> problem is, they're not very good stock pickers. in the end, they lose an estimated $100 million in bad trades. but it doesn't seem to faze them. >> so the money is gone, the hunt is on. do not miss an all-new "american greed the funl tgitives." also join us on twitter if you like for a live chat during the premiere. it is #greedchat. still ahead, tiffany's shining today following a big upgrade. the analyst who made that call is going to be joining us. and one of the sweetest stocks on wall street doing something it has not done in 30 years. we're going to tell you what that is when "street signs" returns. just a couple months till his 78th birthday. pink floyd wrote this song about him. we're back after this. the cnbc realtime exchange

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we've got a fantastic rally going on. we've got the s&p and the dow up by about 1.5% right now. what you're looking at is the second best day of the year for stocks. the first best day, do you remember when that was, brian? the first trading day of the year. >> the day the dow went up the most? >> it was. god, you're a smart one. but mind you, all three indices are still negative for the week. just keep that in mind. let's look at "street talk stocks" for you. the bigger movers on our radar screen today. we have ruby tuesday, which we already had one disaster du jour. >> many are saying good-bye to this name. reports a first quarter loss. that was multiples wider than the 5 cent loss analysts were looking for. also an 11% drop in comparables. about 8% in franchise locations. downgraded by raymond james earlier today. the stock is down 17%. >> this is one that is close to

your heart for many different reasons. best buy flying high, very strong volume today. but not seeing a lot of recent news otherwise, but look that the. nearly 7%. >> ooh, the stock is up actually 6.66%. that is a bit ominous here. as you said, mandy, no real news. they did confirm $100 smartphone trade-in program. hard to imagine that's going to rise the stock 6.6%. the stock's up 117% over the past year. but a trader's favorite. it's a momentum name. it continues to be so. >> indeed it does. nu skin getting an upgrade. >> the always fiery tim ramey. tim upping this to a buy. third quarter estimates. target goes from 110 to 110 after shares dropped on no news. he also says this company does deserve somewhat of a premium valuation at least to the other mlms, the multilevel marketing names. >> this is our under-the-radar

pick. it is infoblox. it sees multiple paths to success and upside. price target was also boosted at ubs tuesday. the stock is up 125%. the average analyst rating remains overweight. this has been a hot, hot name. >> what do they do again? >> they provide automated data shors providers of solutions to the cloud-based cloud providers of solutions. >> just seeing if you were listening. tiffany's sparkling, moving up by about 2%. it got an upgrade. >> upgraded to a buy rating. they say they've got a good opportunity to recap taur higher margin profits. profit margins rather. they also think the luxury retailer will benefit from a growing international platform as well as an increase in the u.s. business. but let's find out more about the guy that actually made that call and bring in senior research director ike borashou.

we just top-lined about your upgrade. what's the main thesis behind it? >> i think you guys alluded to it on an earlier segment. you look at retail today, the margin of risk associated with a lot of these retailers in the mall, i mean, you can see it. it's pretty clear. and it's a little scary for investors. this is an interesting story because this is a story about margin inflection. and we lay out our case in our upgrade report that we see hundreds of basis points of potential gross margin expansion for tiffany over the next two years. and this is from price increases and more importantly lower commodity costs. fundamentally it's pretty sound. >> 201 has been an active year for luxury brand. to what degree could tiffany be in play for a potential takeout in >> that's a topic that comes up a lot when you talk about tiffany, what the end game could be for them. i would say when you look at luxury m&a the last five years, typical takeouts are around 14, 15 times ebitda. tiffany's trading nine or ten

times ebitda. if you wanted to be bullish you could use that as your third or fourth bullet to be bullish. it doesn't hurt. we think the international growth is also very relevant here, too. >> i love your point. you said lower commodity costs which i assume is cover for lower gold and silver. if gold continues its drop and silver, will the profit in gross margins at tiffany's just continue to grow? because i doubt they're going to cut -- hey, folks, 20% off because silver's down. >> correct. they don't typically do that. and the good news for investors in terms of the visibility of these gross margins is tiffany turns their inventory slowly. it's about one turn a year. they're just starting to turn the lower costs from last year. so as you alluded to, if those costs keep coming down, that's just going to mean the tail is even that much longer which, again, visibility on margins is obviously a good thing for retail right now which there's not many companies that have that. >> you have a price target of 86 bucks. thank you so much for joining us today, ike. >> thank you. carl icahn bought it.

even short seller jim chenos taking a bite out of apple. take a listen. >> where do you come out on apple, by the way? >> we're long apple and samsung. >> so you consider -- you're long on apple part of your -- >> short thesis. >> short thesis on hp. >> yeah, we think that the architecture right now is beating out the win tell architecture. >> if these major investors are long apple, should you, too? rich ross is global technical analyst. ju gina sanchez. let's start with fundamentals. 12 times trailing earnings. what is your view on apple? >> i agree. i think it's a buy. what we just had was a blowout sales weekend for the launch of the apple 5s, 5c. that really addresses some particularly difficult issues apple's been facing with gross margins. this will make their gross margins rise, they're down close

to 36%. i think estimates right now are at 37.4. by 2014. so this is very positive for apple. and quite frankly, they're continuing to show their continued dominance. they also have the china deal, the china mobile deal still percolating. but more importantly, if you look at how apple has responded during the shutdown, it's actually been quite a defensive stock compared to some other high flyers like, say, tesla or netflix or linkedin. money has been flowing out of those high pe stocks. but it has actually stayed with stocks like apple because apple has $140 billion of cash in marketable securities. they have a fortress of a balance sheet. i think at the end of the day, all of those factors make apple a really interesting buy. >> good case there on the fundamentals side. gina sanchez says it is a buy. rich, you're a gentleman who tends to be on the bearish side. what do the charts tell you? is this a buy from a technical ive? >> in fact, mandy, when it comes to apple, i'm actually bullish as well here. even though the stock has been a dra market underperformer this

year, down 8% year to date, not a lot to get excited about. when you're talking about technology, momentum is the strategy that's envogue, and apple clearly not a momentum stock. but i think all of that could change here. when we bring up that year-to-date chart, we all know about that 45% decline, down from that 700 level. but what i like about the stock is we're looking at a reversal in trend. you see that textbook double bottom. then late in the summer the stock reasserts itself. takes out that 200-day moving average before running into resistance around 510 and retesting the 200-day. but here's the kicker here. we've settled into what i would call a bullish coil or symmetrical triangle. that's a contraction of volatility. what we typically see is an expansion or explosion of volatility from a period of contraction like we're in now. i think that move is to the upside. we take out 510. that sets the stage for a move up to 630. i like the stock right here. i think a breakout is imminent. >> all right. two bullish views, a double bottom is very bullish when it comes to technical analysis. very bearish when it comes to discussing the nation's obesity

epidemic. rich and gina, thank you both very much. always be sure to check out the online edition of "talking numbers." >> and there's the fantastic picture once again. we keep on wheeling it out. okay. a sweet surprise. an iconic american brand doing something it has not done, brian, in three decades. >> and somebody call up mortimer and randolph duke. a big crop report is due out tomorrow which could help farmers price their products. wait a minute. the usda is mostly closed. the report's not going to happen, folks. and the farmers, they ain't happy about it. we'll tell you why. first, bill griffeth, what is coming up on "closing bell"? >> as you mentioned, jim may like apple, but he's reiterating his case for shorting hewlett-packard. we'll hear from somebody who says hewlett-packard's problems are your opportunity to buy that stock. we'll get his case on that. also, activist investor barry rosenstein makes big bets on safeway and outer wall, the company that owns redbox movie kiosk. what else he's got his eye on

these days. and are investors too optimistic about a deal ceiling deal in washington? we're all over this massive rally. maria and i will see you at the top of the hour. should be very interesting on "closing bell." first stay tuned for more "street signs" after this. i am today by luck. i put in the hours and built a strong reputation in the industry. i set goals and worked hard to meet them. i've made my success happen. so when it comes to my investments, i'm supposed to just hand it over to a broker and back away? that's not gonna happen. avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today. so i can reach ally bank 24/7, but there ar24/7.branches? i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum!

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here are speet food news for you for the first time in 30 years. hershey's is launching a new candy brand, a soft caramel line called lancaster. it will debut in january in the u.s. and china in the same time. caramel is, in fact, one of the fastest growing food categories globally. it is huge in china. they can't get enough of caramel over there. hershey's stock, by the way, has also been on a nice run over the past year, up just over 30%. pitchforks are out. the partial government shutdown has sparked outrage on america's farms because it's all about a big crop report that is supposed to come out tomorrow. jane wells, though, is live in colorado. she is in children of the corn-type territory with a lot of angry farmers. jane, what's going on here? >> reporter: brian, here's the deal. farmers can't access federal loans they need to pay their

bills. crop insurance isn't guaranteed. neither are their subsidy payments which are controversial. but as usda offices are closed down and so is the website, they can't get help for the recent storms and blizzards. by some reports over 20% of the cattle herds in south dakota have been wiped out. the lack of these reports which farmers use to try to get a pair price especially the one that was supposed to come out tomorrow because it would reflect the harvest. >> we could see a volatile swing either way, depending upon the will of the market. or we might just pass by with very little effect. but this is uncharted water for many of us who look to the government reports for our marketing entity. can washington do their job just like everyone else in the marketplace? everyone else in society? if we had this much adversity within agriculture, we'd have starvation. >> reporter: well, now, mark arnish can access private data and pay for it, but chris can't for his dairy farm. he says he doesn't know of any

private source that has the milk production he needs to stay competitive. >> the dairy runs 24/7, 365. we have animals that have to be fed and cared for every day. we work pretty hard. and it's very disconcerting when you have a bunch of people that are -- that you rely on for a government report or something else, to not be doing their job. >> reporter: well, hold on. one analyst says the shutdown and the lack of a report is a blessing. >> anymore, usda's role seems to be to provide fodder for the high-frequency trade algorithm and investment traders and commodity markets. and so without those, what we could see is a return to fundamentals. we could see, you know, what's the supply and demand actually doing. >> reporter: dara newsom says the markets, quote, basically go through a lobotomy every time

the report comes out. maybe without it we'll have more stability. >> and eventually realize, why do we need those crop reports in the first place? i'm joking but you get my point. thank you, jane. don't get lost. find your way home. the markets are in full rally mode right now. triple-digit losses -- sorry, triple-digit gains straight out of the gate. whoa! what am i saying? the second best day of the year, folks. let's bring in joe greco, managing director. please don't tell me this is just a head fake, joe. >> a head fake, i think your freudian slip may have been the only head fake here. it seems to me like, you know, there's some kind of deal clearly in the works. you know, leading indicators are, and we don't have any evidence -- we can't look at the staffers' trading accounts, but it seems like the market knows something and they're not just confident that janet yellen's going to continue the dovish tone. you know, seems to me like right now the market is anticipating that something gets hammered out sooner rather than later.

and the unfortunate childish behavior is going to end quickly. >> but what happens in six weeks' time? just say we get say a temporary delay, a temporary patch. the markets are yu forric that we're going to get a deal now, and then are we back to square one? >> if anything, it's going to be a mouted effect. we had three summers in a row where we had major trouble over in europe, right? and each time it was less and less impact on the market because we were more prepared. look, the country voted in a president with 52% of the popular vote versus 47% coincidentally to mr. romney. clearly the country is divided down the middle. we have one side that is not changing their rhetoric, that they want cuts. we have the other side saying i'm not going to debate this. you need to raise the ceiling because you already spent this money. if neither of them's going to move off, forget about six weeks down the road. we're going to have the same problem through '14 and '15 until we look at the next election. and it's going to be a platform issue at that point. >> but listen, joe, and i hate to be a broken record. i've said this 1,000 times.

all i care about is earnings because that's all stock is supposed to be. the idea is the shutdown slows things down. companies' earnings get crushed. is there any blessing that this is happening at the beginning of a quarter? because if i'm tech corp incorporated and i want to sell to the federal government, they're not there, i've got 2 1/2 months to make up those orders. >> right. i'll give you a little trick. and this is what i think some of the sharper people in the room are going to be doing. they're going to be listening to the calls. and when the cfos and ceos, you know, let their guard down a little bit and start to hint at, you know, the government shutdown impacting guidance, when really they shouldn't have that much impact on that particular company's stock, those are the stocks that are going to get pummeled. so i'd be really looking at the language that cfos and ceos use and how they try to lean on the government as a scapegoat to perhaps not meeting expectations or scaling back guidance. when it's not directly related. of course, you look at defense contractors and you're going to look at agribusiness. perhaps you'll see immediate

impact. financial companies if this prolongs, you'll see the financials being hurt because, of course, the whole fixed-income business is in a shambles. we'll get the first look with wells fargo and jpmorgan starting tomorrow. joe, great to see you. thank you very much for joining us. is tech corp incorporated going to be the name of the company when you leave cnbc, this illustrious career, eventually start up? >> sullivan's hair academy. an ear reduction clinic. next up we're going to take you inside the homes of the future. i want you to think geek chic. and could google become the next great american automaker? why that could be bad news for the oldies but the goodies like gm. and now we see an enlarged section of 1960s express motorway. safe distance between cars is maintained by automatic radio control. the keynote of this motorway,

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the house itself, the furnishings in it, offer a challenging new experience to stimulate your imagination towards newer and better ways of f furnishing and using our living space. >> i'm brian sullivan. you might remember me from such shows as this one. monsanto home of the future displayed at disneyland. displayed in 1957. set in 1986. plastics. all about plastics. >> always about plastics. >> they weren't talking about cosmetic surgery then. now they're right. >> yes. that was then. but this is now. there's a battle to build the most high-tech, most energy efficient and you know what? just plain cool house in america. everything. everything you could possibly think of. diana olick is live in

california with a tour of some new high-tech features that you never imagined. hit us up. >> reporter: well, mandy, leave it to the two teams from cy ark and cal tech to make a house that literally opens up and lets the sunshine in. we all know energy efficiency is all about keeping the house small and tight. you have a 600 square foot house here that opens up into an 1,800 square foot living space. everything in this house -- what do they say about cars? it corners on rails. the house itself is on rails. even when you go into the rooms. say you want your bedroom to be small because you're entertaining over there. then you want to go to sleep and you want it to be bigger? push it open and move it out. easy as that. everything in the house moves. take a look at the furniture here. all modularly designed so it stores up away here like a puzzle. when you want to take it out, perhaps you want to lounge out here with your friends. take it down. arrange your furniture in your much larger style house. now, as with all of the homes

here, the solar decathlon where they are 19 teams competing for the most energy efficient and might i say affordable house, they're all auto controlled. you can literally control anything in the house, including the solar panels, which move, by your ipad. now, what's so interesting about this home is the ipad actually suggests to you that the weather is nice outside. you might want to open up or, uh-oh, it's going to rain, you might want to bring it all inside. the appliances in here, you've got to name a couple of the companies they're using. bosch used in a lot of the houses. a lot of other companies here being represented. lg. solar tech. there's all kinds of, you know, potential for money making ideas in these houses. and, again, why not be out in the sunshine? i'm going to sign off from being outside. back to you guys. >> very cool. like a motor home that doesn't have a motor. but is a home. diana, thank you very much. from high-tech homes to the car of the future that you might actually never drive.

we're talking about driverless cars. phil lebeau, this can't be great news for gm. there's a new survey out i read in wired that says people would rather buy a driverless car. that's the key. driverless car from google than from gm. >> it's from kpmg. that's the study. we got a copy of that early this morning as well. it's not just general motors who should be concerned. it's all automakers. essentially what this survey finds, it's really not a survey, focus groups done in los angeles, new york, chicago. essentially they found the google car we have seen so much of, that is the preferred choice by those who have been surveyed in terms of an autonomous car in the future. they would rather have a tech firm build an autonomous car than they would have an automaker make an autonomous car. >> consumers apparently are willing to buy a self-driving car from leading technology companies even more so than your normal traditional automotive companies. it was a huge finding and quite

surprising from my perspective. >> couple other findings from this study. first of all, buyers are willing to pay up to a 20% premium for an autonomous drive vehicle compared to a standard drive vehicle. women are more interested in autonomous drive vehicles than men. they all want the option of turning it off. of being able to drive the vehicle, not have the vehicle drive you around. several automakers as we mentioned, they are developing autonomous drive vehicles. how far along they are really depends on which ones you're talking with. many of them are targeting having a fully autonomous drive vehicle by the end of the year. that video right there, brian, that's from me testing out the latest in gm technology on monday when we were at their test track in milford, michigan. >> very cool stuff. phil lebeau, thank you for bringing it to us. next up, a cure for the hated hangover may have been found. it may have been bubbling up right under all of our noses all along. coming up. [ indistinct shouting ] ♪ [ indistinct shouting ]

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dow. >> second best rally of the year only going back to january 2nd. the market's message seems to be, mr. president, take the deal. now, what deal is that? let's get right to our john harwood in washington as we get ready for a key meeting at the white house. john? >> no audio.