welcome back. people have spoke were and said pete the bull on j&j won that debate. final trade quickly. >> blackstone. >> murph. >> hertz. >> weiss. >> gilley ad. >> valero. >> have a great weekend. "pow "power" starts. >> "power lunch" and the second half of the trading day starts right now. >> indeed, it does. we have stocks in rally mode all the signs are pointing to a budget agreement. we don't have one yet. but how should investors position themselves heading into what could be a very interesting weekend. oil taking yet another hit. next year's supply expected to have its biggest growth dump since the 1970s and the u.s. set to overtake russia as the world's biggest oil producer. you have one headline that's relatively bearish for the oil market and the other bullish for oil stocks.

jpmorgan and wells fargo out with their earnings reports. they beat the estimates but there are worrisome signs. should investors bank on the banks or not. the top banking analyst on the street. ty is down on the nyse. >> sue, thank you very much. again, stocks as you point out in rally mode. the dow up about 97 points, 96 right now and the standard & poor's back above 1700 at 1702 on this day 11 of the government shutdown. five days and counting until the u.s. hits the debt ceiling. the house gop offering a debt limit hike and the shutdown. is it being played out behind closed doors right now? luke russert of nbc news live on capitol hill. luke, what is the latest state of play? >> the latest we can report is tomorrow morning at 9:00 a.m. the house gop conference is going to have a meeting where they will presumably leadership will present the plan forward in terms of the deal to raise the debt limit and possibly fund the

government. the offer that was put forward to the white house by the house gop staffers earlier this morning, does two things. one it would extend the debt limit for six weeks to about november 22nd. it would extend government funding until december 15th in exchange for doing this, the without would then agree to some sort of large-scale bipartisan budget negotiations as well as an exchange for opening the government. they would have to throw in some fig leaf sweetener in there. folks at the white house said if they were to agree it would be something they've already previously' agreed to that house gop leadership can take to their rank and file and say we extracted something in return for the shutdown. however, overall, there does seem to be progress moving towards some sort of deal to avoid default. so for all your viewers out there that may have been investing in guns, gasoline and gold, might want to take a little step back on that. we should have a world economy come thursday. >> luke russert, thank you very much. reporting from capitol hill. >> be well.

>> you too. >> so how should investors position themselves? let's bring in bob and ben, managing director with albert freed and company. my sense, this is a market that is captive to headlines and it is, therefore, vulnerable to headlines. >> absolutely. if we go right now we're fine. the headlines you heard mr. russert, that's what the market wants to hear. we're moving in the right direction. here's the problem. we get monday night, still nothing happening, the market is going to turn very, very quickly. so the headlines have to keep moving on. i think part of the problem is the president is insisting on the continuing resolution being resolved short-term as part of the deal with the debt ceiling negotiations. >> in other words, open the government and the ceiling. >> it takes time to craft. that complicates things. figure out a way to make both parties look good. >> that's not going to be easy. this is sending a clear signal to washington we traded on the rumor that you guys are actually going to do what you were sent to washington to do.

that was yesterday. today seeing a follow through because the rumor has not been disproved. over the weekend we're going to have to wait. my portfolio going home i am still excessively long equities, think the bull market is in place for a higher close but i want protection, i'm probably going to buy some sort of derivative coverage, straight put or buying the vix or something like that for some downside move. >> a lot of tv political talk shows this weekend. let me ask both of you quickly. you pointed out there was a lot going on, the rally on low volume. is today's rally any different? >> no. we basically are seeing moderate volume today. the two days we had heavy selling a lot of the hedge fund communities decided to lighten up, sold some of their winners, facebooks of the world, they covered some short positions. degrossing. >> you call it degrossing. >> taking down their positions. >> you have the same conclusion. >> the vix sold off on the move to the upside, no volume and anybody in a retail office will tell you this is not ininvester driven, this is professional

money manager. >> thank you very much. bob, great to see you. this what's next for the nation and your money, your weekend warrior battle plan to protect your investments from a worse case scenario tonight at 6:00 p.m., a cnbc special report, rise above the debt threat. that's at 6:00 p.m. tonight on cnbc. sue? we're going to focus on gold hitting a three-month low and prices are going to close in under 30 minutes. and, of course, it's a friday trading day and a dicey weekend ahead. sharon epperson at the nymex to handicap it all for us. >> it's a dicey weekend ahead but perhaps we'll see a deal getting done and that's what gold traders have been focusing on. a big reason we're seeing the sell-off in gold exacerbated by the fact that around 8:42 we saw a massive trade this morning. lot of traders saying perhaps one big seller, perhaps a numbers at same time but it caused the cme group to halt trading for ten seconds and that's something that they said

is normal process with their technology but all trades will stand but it kind of kept the ball rolling here and we saw continued selling more sell stops being put into place. what are traders watching going into the weekend? they don't want to hold on to any positions, many of them, and looking to kind of unload and also keep in mind, what we're looking at in terms of managing their portfolios for the start of this quarter a lot want to be in equities like our previous guests. back to you. >> thank you so much. to dominic chu with a market flash on the fallout from gold. hey. >> sure. shares of the gold miners are getting hit today when gold prices slide, remember so, too, do the gold miners slide. check out some of the bigger names heading lower in today's trade. baric falling more than 3%, gold corp down around that same amount about that 3% mark for gold corp. yamana down around 2.5% and newmont mining is lower to the tune of 2%.

newmont is part of the s&p 500 materials index and making that sector one of today's big underperformers. it's also one of the biggest decliners in the s&p 500 overall on the day. back over to you. >> thanks so much. back to in a bit. another commodity hit and that is oil down 1.5% on west texas intermediate at 101.43. the iea says supply growth next year will be the biggest since the 1970s and the u.s. will soon overtake russia as the world's top oil producer. let's talk to kevin book about that, the managing director of research at clearview energy. and bill featherson, managing director at ubs. we'll get to you in a moment, but i want to start with kevin. give us the overarching theme here. obviously it's that oil production is up. how much of that has to do with shale and the fact that we now have different technologies than we had many years ig and it's changed the oil picture for this

country. >> everything has it to do with shale and the second item is rock. what you have is another 200,000 barrels per day in iraq coming from the field and another million that's realistically visible within a year and a half, two years ahead. two things happening that hadn't been happening before. one unconventional oil, the big story, and that's why the numbers go up so much but also, conventional oil that we couldn't get because of instability in iraq we're getting. >> what does that do to prices overall? is this fundamental change going to change for a longer period of time, the pricing point? >> well, let's talk a little bit about the number. 1.7 million barrels per day up against 1.1 million barrels of demand that's a weird thing to hear from iea. they try to paint the case for scarcity because they want to goad opec into producing more. seems like they're saying lower the price, produce more because you don't have the market power. actually that may be a high-end number and so you might want to take it with a grain of salt but

opec says 1.2 million barrels per day against 1.1 of demand growth. that's thinner over supply it's still oversupply so downward pressure on price. >> all right. kevin, thank you very much. ty, down to you. >> all right. to bill featherson now he covers the industry for ubs. bill, you know, when people say buy the energy sector like saying buy technology. there are a lot of subsectors and individual attributes you want to look for. what companies do you like and why right now? >> well, i cover the enp sector and integrated oils and we see the best opportunity within the enp space. they're the companies driving the heart of the shale oil growth we're seeing in the u.s. some of our top picks give you exposure to a number of different unconventional oil plays. top two picks are andarko and we like marathon oil and noble energy as well. >> ent space means what for people who aren't familiar with the acronym? >> it stands for exploration and

production. those are the companies going out, finding the oil and producing it. >> okay. and so you mentioned there andarko eog, marathon and noble energy. what areas in your coverage universe do you not favor now? >> we've been relatively bearish on the integrated oil companies. you're seeing them jack up their capital expenditure programs so free cash flow is getting squeezed and little production growth yet those companies trade at a healthy premium to the enp sector, enterprise value debt adjusted cash multiples and have big headwinds in the refining and marketing sector and when they report third-quarter results you'll see they're disappointing relative to market expectations. >> thank you very much. have a great weekend. >> thank you. sue? >> ty, jpmorgan and wells fargo beat earnings estimates but should ininvesters bank on the banks? kayla is diving deep near the numbers. >> jpmorgan posting its first loss under jamie dimon and wells

fargo posted record profits but the stock is down. we'll tell you why that is up next on "power lunch." bny mellon combines investment management & investment servicing, giving us unique insights which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds.

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welcome back to "power lunch." i'm dominic chu. yum shares are moving higher on insider buying in a filing with the s.e.c. they reveal on thursday director robert walter bought 20,000 shares of yum around 66 bucks each for a total investment of $1.3 million.

before this latest purchase, walter bought yum at two other times during the past 12 months for a total investment of around $2.25 million. sue, looks like somebody is bullish on yum. >> 1 2/3%. thanks. two banks out with earnings, jpmorgan posted its first quarterly loss under jamie diamond due to billions in regulatory expense but if you exclue those items if made a profit that beat the street expectations which is why you have the stock up a half a percent. walls fargo posting better than expected results but ises stock is down half a percent. why? kayla is here and knows why. >> no pressure, sue. >> none whatsoever. >> we'll start with jpmorgan and wall street at this point is happy to have a number for jpmorgan's losses. the bank paid $9.3 billion before taxes into its legal reserves which for the first time ever, it quantified, $23 billion. and knowing the bank has the money to pay for this giant settlement that's coming is a

good thing and that die mon said these costs will start to abate not to mention the fact that the underlying businesses at jpmorgan aren't doing well aside from mortgages. customer deposits rose 10% and the number of loans more than 30 days delinquent dipped below 2% for the first time since the financial crisis. wells fargo saw its customer credit improve so much so it released $900 million from its loan loss reserves. the cfo said that should continue next quarter. unfortunately that has to patch a gaping revenue hole from its mortgage business. origination fell by nearly half as did mortgage applications and with mortgage rates set to continue rising the cfo said it could get worse next quarter. this is wells fargo's core business. when you see something implode like that, that is why wall street is concerned. >> absolutely. hold that thought. we'll talk about this with kneale but we want to show you this live picture and senate democrats -- republicans i'm sorry, meeting at the white house in a very stormy

washington this morning. they went to the white house and met with the president, the vice president, and the treasury secretary. obviously trying to find some common ground on this impasse that continues in washington at this hour. they're expected to talk throughout the weekend and we'll see whether or not by monday we actually have a concrete deal. we certainly have had a little give and take now and a little bit of progress which is why we saw the absolutely phenomenal gain in the stock market yesterday and wall street seems to be pretty optimistic because we have had a triple digit advance on the dow at various times during today and we're holding on to the lion's share of our advances at this point. so there's going to be a lot of congressionals moving in and out of the white house to talk about this today and we'll watch every one of them. let's talk more about the banks right now and joining us to do that is kneale wine burg. >> nice to be back. >> it is interesting that jpmorgan did report its first loss under jamie dimon but if you x out those items the costs

they're putting away since litigation they're doing better than expected. i was stunned by the amount of money they are putting aside in anticipate of future litigation. >> right. and number for total of $23 billion i think between 2009 and 2012 represented about 12% of net income for these type of legal charges for jpmorgan. that's starting to be serious money there, sue. i think certainly shareholders are glad that there's a number on the table. it wasn't surprising per se but it does raise questions about whether regulators are going to back off or there's light at the end of the tunnel here. additionally certainly for the banking industry and jpmorgan sort of a a good news/bad news story in the businesses. >> you mentioned for wells fargo if we look at that particular case, their core business is the mortgages and we're seeing interest rates move, the government is shut down, we had a mortgage expert on yesterday he can't close some loans. that might have an impact on

their bottom line, might it, if this continues too much longer? >> it definitely will. if you're wells fargo you want to diversify as much as possible. the bank has taken strides to build up its credit card business, brokerage business and also its investment banking business. it had the heinz deal last quarter which boosted earnings there. we didn't see that this quarter. all investors really have to go on is the mortgage business. you can bet they're going to try to push a lot of new strategies in the other parts of its business when it doesn't have the clarity on where mortgages would go from here. >> would you agree with that? >> i would agree. the banks are running out of tricks here, cutting costs, releasing their loan loss reser reserves. they can only do that so far. they're going to scrape the bottom of the barrelp everyone is hoping at some point these ultralow interest rates kickstart the economy and a lot of demand but we've kind of seen the opposite of that. consumers are pulling back a little, the auto business is weakening and businesses are so concerned about regulation, about health care, about problems in washington, that unless they really have to hire

or really have to add capacity they're not doing it either. we need a strong economy for the strong -- for strong banks and vice versa. >> kayla, do you get the sense what we've seen with these two reports, does that indicate that we're going to see similar things for some of the other big financials as they continue to roll out? it seems to me they're all very individual stories? >> they're very different. citigroup what we're looking at is the first full year under its new ceo. he's slimmed down that business. he's really made it more efficient and reduced the drag from the bad bank on that bank. i think that citi has its individual problems and successes. bank of america, interestingly enough, an analyst on cnbc this morning who said jamie dimon should borrow a page from brian moynihan's playbook. you would never have heard that a couple years ago. now jamie dimon who has all these legal issues in front of him. brian moynihan has done his work to get them out of the way for bank of america. bank of america could be a winner this earnings season.

>> times have changed, right? thank you so much. neil, thank you. appreciate it. wells fargo's chief financial officer will be on "closing bell" at 4:00 p.m. eastern time. ty. >> let's talk more about the u.s. large cap banks. i'm joined here at the new york stock exchange by matt o'connor who covers the sector with deutsch bank the top-ranked u.s. banking analyst by the institutional investor for six years in a row. >> thank you for having me today. >> we're happy to have you here. >> before i get to the bigger question. we talked a lot about jpmorgan. do you like it, do you not like it? apart from their legal expenses they continue to make a lot of money. >> i think that's the key as we look out a little longer term than just earnings and get past what's happening in washington, we're really focused on names and companies that are making a lot of money right now where there's not expectations of rising interest rates, a pick-up in capital markets activity and loan growth. look at jpmorgan and the underlining earnings power the highest in the industry and i

don't think that's reflected in the evaluation, we think most of the earnings power will be sustainable with upside over time if it does play out better. >> if i don't want to trade the banks, i want to invest in them the next three years to 2016, what are the attributes of the banks i want to buy and the bad qualities of the banks i want to shun? >> a lot of the stocks that have worked so far this year have been the hope trade. hope that earnings will pick up looking out a couple years, their rates will rise and growth pick up and everything better. a lot of names right now that are trading at lower valuations on earnings and some of the higher quality names. you mentioned jpmorgan, that's certainly one we're positive on. u.s. bankcorp has one of the lowest on current earnings and out year and not factoring in any macro recovery from what we can tell which we think is a conservative, well-run bank and one of the better ways to play the industry. >> well run, very conservative.

in a low interest rate environment as i suspect that's what you anticipate over the next two to three years, what are the attributes of those you want low multiples, low pe, good valuation, you want what in terms of the business model? >> i think the key to find somebody a little more diversified not just spread lending. u.s. bank has a very big fee business. get a lot of their fee revenues from spending of consumers and corporates out there, not just borrowing, and it's one of the better balanced business mixes of the banks we cover. >> others you like beyond those two you mentioned, jpmorgan, you mentioned u.s. bank, are there others on your short list? >> i mean one name that we think is currently underearnings but does have a nice built-in earnings cushion is sun trust. they're from what we can tell the best name to play the housing recovery from here. there's a lot of legacy costs still going to come out of their expense base. there's some settlements announced yesterday that helped move that in the right direction. low multiple stock, leverage to housing. >> very quickly, wells fargo,

conspicuously not on the list of names you mentioned why some. >> i think wells is a well run bank. it will hang in there fairly well in the environment we're expecting but they have to go from an expense management story and that tends to take a little time for the market to adjust to. we think they will be successful. well run company. we prefer a u.s. bank that has a better revenue and earnings outlook in our view. >> number one bank analyst six years in a row. appreciate it. >> thank you. >> keep that streak going. sue, up to you. >> absolutely, thank you, guys. tales from the shutdown. we are going to speak with the ceo of a company who has had to lay off 80% of his staff because of that government shutdown. that's ahead. plus, domesday survivalists are gearing up for a possible u.s. debt default. what are they doing, josh? >> well, sue, this government shutdown has a lot of americans concerned including survivalists who are busy buying shelters and

bunkers. we'll talk to a man who is building those bunkers up next on "power lunch." people go to as people go to as store and essentially they

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about a new york based real estate swindeller, a high profile heist in the heart of paris and a follow-up to a story we brought you two weeks ago about a former nba player who ran a multimillion-dollar ponzi scheme. >> in just the past few months we've exposed $300 million of white collar fraud. we've spoken with u.s. attorneys, fbi agents and d.a.s and tracked down accused criminals. today we have much more from cnbc's "crime and punishment." let's start an old westberry new york. the man accused of stealing millions through shady real estate deese deals. >> i don't want to hide from what i've done or run from what i've done. i want to take responsibility. >> reporter: that's james. speaking exclusively with cnbc about his alleged crimes. according to the nasa county d.a. kathleen rice, the one-time attorney orchestrated an elaborate scheme, forging documents, selling properties he

didn't own. even coning his now ex-wife. >> he was a one-man financial crime wave. to the tune of almost $5 million. >> reporter: the 52-year-old admits he stole money and is now looking at spending up to ten years in prison. p. >> when did you finally come to terms with the fact that hey, i'm not doing the right thing here? >> i would say years ago. part of me psychologically wasn't able to snap out of it so to speak. >> reporter: he told us his life began spinning ot of control more than a decade ago when he started taking mun from his client's escrow accounts. >> he would dip in and say he would pay it back and had been reprimanded. >> reporter: he was suspended and later resigned from the bar but admits he kept working on as an attorney and stealing cash, even making an appearance in court without a license. >> he wanted to live in the million dollar home and so he found a way to do it. >> reporter: and sources tell cnbc that he even coned his

girlfriend in a bogus business deal. what happened to the money? >> if i had the money to give back to them, i certainly would have. if i have to work the rest of my life to make things right, i will do that. >> back in august we brought you the story of the pink panthers, the gang accused of stealing nearly half a billion dollars worth of jewels. now, another wild heist in paris that was done in just three minutes. check out this video of the thieves taking off after the raid. the getaway in broad daylight and the area loaded with surveillance cameras. police have at least two suspects in custody right now and are searching for the rest. investigators say it began when two well-dressed men were let into the store. the men apparently held the doors open for a gang of thieves. all wearing hoods and carrying sledge hammers. the crowd at least 15 strong. smashed open displays and grabbed the loot. and during the attack, smoke grenades were set off offside the show room to create mass

confusion. and back here to the u.s. for another crime and punishment update. remember tate george. >> lie to your friends, lie to your teammates. >> reporter: we told you about the former pro basketball player two weeks ago when he was on trial accused of running a multimillion-dollar ponzi scheme. prosecutors say he was brazen enough to swindell friends out of millions like the pistons charlie vil new way va and then blew the money on his own personal projects, including funding the tate george show. >> being an nba legend is what dreams are made of. >> reporter: that was then and now he's spending time behind bars. benched until his sentenced in january. >> jersey. jersey. in the house. >> reporter: george was convicted on all four counts of wire fraud and taken into custody after the verdict was read. if you would like more information about tate george or any of our other crime and punishment stories, just go to

investigationsinc.cnbc.com. back to you. >> thank you very much. gold prices closing right now, sharon epperson tracking the action at the nymex. >> hi, tyler. gold prices closing below the 1270 level. key level traders were watching. a lot of sell stops triggered, big fund trade and we talked about the fact that there was that brief halt early this morning here in trading with the heavy volume we saw. keep in mind as traders are watching what's happening next, they're watching the physical market and looking at the gld and gold etfs. we're seeing the holdings there decline significantly and that is putting more gold on the market. not seeing the physical buying coming out as well and that could continue to pressure gold prices. tyler, back to you. >> all right. sharon, thanks very much. trading action now, bob pisani, floor of the new york stock exchange. >> a look at the dow just off the highs. a simple story, as long as they're still talking, as long as we can hear from eamon and everybody over there that people are still yammering, market stays up. we get to monday night, no

talks, we're stalled, comments like that, market is going to drop. keep talking very good. let's take a look at stock stories. refiners have had a tough time this year because the input costs have been higher. look what's going on here. the last few days they've been going up. a lot of chatter, the refiners are exporting fuels at record levels, taking market share from european peers. $41 two or three days ago now $46. look at that. moving up here. i'll show you home builders. jack upgraded the group today. interesting point he brought out. we know about the best six months of the year about to start but jack pointed out this really applies to the home builders between thanksgiving and tax day, home building stocks have gained 22% on average each of the last six years and in four of the last six, interest rates have been moving up. so it's not just interest rates. a seasonally strong period for the home builders. retail stocks, gap had problems this morning. worse than expected same-store sales. fertilizers are down, potash

warned on third quarter earnings. all the controversy over one of the big potash cartels dissolving a lot of the people who went and were buying, said why should we buy now. prices could drop. that's what potash -- >> reflected in those. >> delayed orders for people who might be able to get lower prices. >> retailers down as you pointed out. very interesting. thanks. up to times square and check in with courtney reagan at nasdaq. >> hi, tyler. if you take a look at the various indices you know the nasdaq composite is the best performing of the three by a hair. we did start the day in the red so we've gotten progressively better as bob pisani said as lawmakers continue to talk. there are certainly laggards here. take a look at shares of my con, down 7.6%. the biggest laggard on the nasdaq 100 reversing the momentum we've seen all year, the name the third best performing stock in the nasdaq 100 this year. very heavy volume, 23 million shares trading hands in just the

first half an hour, the most heavily traded name at the nasdaq but it's not all bad. you can see shares of wynn trading higher by more than 2% here getting an upgrade from jpmorgan an increase in that price target as well. back to you. >> thank you very much. to the bond market in chicago. rick santelli tracking the action at the cme. hi. >> hi, tyler. everybody remember, we have bond market closures for columbus day holiday. many traders on this floor that service accounts for hedging or speculating told me early in the session that many came in looked at the market, looked at the news in d.c. and they were gone. it could be a thin day especially for market movement later in the session. as you look at a dollar index the time it started to move up just a little after 11:00 eastern. look at a ten-year the way its yield started to move up a little after 11:00 eastern. when you want to know what's going on it's more about stocks right now because stocks move to the upside as you see on this merge chart, a little before and everything is following volume

is light, supply is behind us and if you look at the last chart you can see we're hovering near a three-week high yield but the reigns to get there has been narrow. >> thank you so much, rick. tales from the shutdown. we are going to speak with the ceo of a company who has had to lay off almost his entire staff because of the government shutdown. and listen to this, if the u.s. defaults on its debt, it will slam your retirement savings. expect big double digit losses. sharon epperson mentioned that yesterday during our special "power lunch" show. more details on that story straight ahead.

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welcome back to "power lunch." i'm dominic chu. shares of aread pharmaceutical are larging after the fda said it was investigating reports of dangerous blood clots with the company's leukemia drug. they reported 11.8% of patients treated with the drug in a clinical study suffered from serious blood clots in an artery after two years of research. that's more than the company had previously reported so those shares again taking a huge beating for the second time this week. back over to you.

>> ha is a horrible chart for anybody who owns that stock. thank you very much. the shutdown has started crippling businesses. companies that deal with the government have been hit with massive revenue losses. forcing layoffs. john tucker is the ceo and founder of laser plus imaging, a los angeles based company that provides office supplies to nearly all federal agencies. he's also a member of cnbc's ypo network. a pleasure to have you with us. thank you for joining us today. >> thanks for having me, sue. i appreciate it. >> you've had to lay off the lion's share of your staff, some 80%, is that correct? >> well, yes, sue. we've been in business 20 years and we've got 25 employees, most of them have been with me for 10 to 20 years and we were awarded a government contract in 2009, so the federal government represents about 80% of our revenue so they're by far our largest customer. needless to say when i got the news a week ago tuesday on my

phone that the government was shutting down, i said, this is not going to be good for us. >> and not only do you not get new business, but you've billed for business you've done but to the getting paid for business that you've completed? >> that's exactly right, sue. came into the office the day after the shutdown was announced and you could hear crickets. phones weren't ringing. calling customers and they weren't there. 800,000 people had been sent home and many of them were our customers. so yeah, we came to a screeching halt unfortunately the day after the shutdown was announced. >> how are your employees doing because as you mentioned, they're long-time employees, you're a small company, so i'm assuming that you have deep relationships with those employees, how are they faring? >> yeah. this has been a tough time, sue. they're family to us, mo question about that. so i've got a husband and wife that worked for me, they have four children. he's driving around on a car with a spare tire because he can't afford to buy another tire on unemployment benefits. i've got a woman who works for

me with an autistic child. she's asking me how much longer can this go? i don't know if i can care for my child on part-time wages. so it's just been heartbreaking for us. something's got to change. >> you know, how do you plan as a business person it's great to have a long-term government contract like the one that you had when all things are working normally, but how do you as a business person plan for or can you plan for this type of an event? >> well, in the 20 years i've been in business, sue, i thought the government would be our best customer and they have been historically a terrific partner for us. they pay their bills, they buy product, they're constantly working, so we never ever thought that we would see this kind of a day coming where they would shut down. it's interesting because i was listening to the radio on the way in and i heard one of our elected officials talking about 83% of the government is open and trying to minimize what's going on to the american public. i want to set the record

straight. the government is closed. they are not doing business. no transactions being done with the government right now. so it's been a very challenging time for us. >> there seems to be some progress on the hill, not a lot yet, but some. would you rather see a stop gap measure that extends -- that opens up the government say for six weeks and we have to deal with the debt threat again or would you rather stick it out and have them tackle the debt threat once and for all? >> well, ideally, of course, we would like to see them resolve this once and for all. my concerns are they knew this was coming for months and months and months before september 30th so this is not anything that came out of nowhere and surprised anybody. they chose to let this come to this event as opposed to settling it then. my concern is, if we do settle a six-month stop gap issue, what's to say this isn't going to happen again six weeks from now,

excuse me? >> that is the issue i think. thank you for joining us. and we wish the best to your employees. certainly hope that it gets cleared up soon and you're back in business. thanks for joining us. >> thank you. i appreciate it. >> up next, retirement and the shutdown. sharon epperson takes a look at how the default might impact your nest egg and it's a big impact. we're back in two minutes.

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debt default could impact your retirement savings. sharon with the numbers. >> tyler, during these debt negotiations, even if it goes down to the wire, it could still have a devastating impact on retirement savings. a new report out from the american society of pension professionals and actuaries find retirement funds could see losses in excess of 20%. we're talking $2.4 trillion. now this is based on what researchers are looking at back in 2011. the last time the debt ceiling negotiations went to the 11th hour and the united states credit was downgraded. back then, we did see the s&p 500 decline 17% that summer and it took nearly 7 months for stocks to recover. now, the average investor really just focuses on the stock portion of their portfolio but it could be fixed income holdings that also are impacted and looking at the mix of assets in most retirement accounts, this could have a devastating

impact. and particularly for older americans. of course they have the more conservative portfolios and they could see a significant impact on their retirement savings. tyler? >> all right. sharon, thank you very much. you know, survivalists like to be prepared for just about anything, nuclear, fallout, zombie apocalypse, sharknados, even the debt ceiling. josh lipton reports from california on domesday preparations. josh? >> yeah. tyler, up next we'll take you inside one of these bomb shelters. it's a home away from home. for survivalists worried about a government shutdown. that's coming up next on "power lunch."

coming up on "street signs," the top of this hour, herb greenberg has been kind of commujly. he's got a bee in his bonnet and we'll try to get to the bottom of it. also, what's the casual dining sector been up to during all of this? we have the stocks and actionable advice for you and three outrageous headlines from this week with an outrageous panel. comedian adam and mr. must bey or maybe call him mr. funny robert into the mix as well. all those things and lot more serious stuff at 2:00 p.m. eastern on "street signs." back to you on "power lunch." >> see you at 2:00. thanks. doom day preppers have something else to worry about this time around. an economic armageddon. josh lipton talked to some of the doom sayers and who's

cashing in. he's live in california for us. hey, josh. >> hey, sue. set aside food, gold and learn how to use a firearm, that's how preppers are telling you to get ready for the government shutdown. they're also fans of underground shelters, bomb shelters. we spoke to ron hubbard of atlas survivor shelters in los angeles. he said business is booming, up 400% in just the past month. i asked him what happens if there isn't a financial apocalypse, do you get a refund? here's his answer? >> there's no refunds. you got a cool man cave after that. let's hope they never to be used for what they're intended for. i mean, just like [ inaudible ] you don't want to use them but you peace of mind. >> the most popular shelter is called the hillside retreat. that fits six people, 510 square feet, full bathroom, kitchen,

den, dining room, the price $85,000. there are some 2 million preppers right now, multimillion-dollar industry that caters to these preppers according to different reports. there are worries about the government, and shutdown default boosting business like mre star the maker of prepackaged meals ready to eat saying orders in september shot up double any month from january to august. buying a shelter or a gun doesn't interest you, hubbard says at least have food on hand, some water, purification devices and just stay alert he says. guys, back to you. >> all right. josh, i'm staying alert. thank you. the masked avengers of comic-con the only place where batman and robin rob shoulders with ordinary folks. holy smokes. what's the strange odor from the convention center? the answer when "power lunch" returns after this break. i am today by luck. i put in the hours

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special tech edition of the power rundown. joining us, cnbc's john fortt and dominic chu. start with foxconn admitting some interns had to work nights and overtime at a plant in china. john, is this another black eye for apple and other companies with foxconn contracts? >> i hope not because it was a sony project that they were working on. it seems like every time china manufacturing and foxconn come up everybody assumes apple which is a bummer for them. >> this is -- this is interesting, right. doesn't the company say they were actually paying these interns the standard wage for entry level employees, so they kind of were getting paid anyway. i guess maybe there's controversy. i'm not sure how deep it goes,

guys. >> let's move on -- >> the issue. >> go ahead. >> the issue is they were having them doing grunt work, not learning experience if you're supposed to be in school. >> all right. move on to a second one closer to home. mark zuckerberg is now a landlord after learning that a developer wanted to build a large house next to his home and akorgz to the san jose mercury news the facebook founder has paid more than $30 million to buy up four properties around his palo alto house so that nobody else can get the land and build there. he's leasing back the homes to the families that live there. is this anything we should be concerned about, dom, or just a smart guy moving smartly? >> this was known as a sale lease back back in the days how companies got buildings off their balance sheets so they sold them to another company and rented it back from them. what's interesting zuckerberg has total creel of the immediate vicinity. talk about having personal space. when you spend $30 million and being a northern california native myself, i know just how expensive palo alto real estate

is, and goodness gracious a lot of money to spend to make sure you have privacy. >> a lot of power elite live in palo alto and zuckerberg who lived modestly for some years now apparently living a little less modestly. >> still living modestly by the standards here. a shame he had to go to this exit tent to market a property being next to him. he could have moved to his own private island. he has the money. he got married in his backyard. seems like he's trying to remain a neighborhood guy. very excited fans heading to new york for the biggest costume party of the year. let's watch. >> you can be somebody else and it's cool. it's neat. >> nothing is more fun than going around and having people realize what character you are. >> but new york comic-con is advertia advising attendees i am not kidding about this to take a shower before arriving at the event. we're not suggesting these people need to take a shower,

no, no, no. i guess it can get hot and muggy in the tights and capes. john, you've been to comic-con, haven't you? >> no, i have not. now i'm going to have nightmares about raggedy ann and andy. the site where they advise people to shower, also advise on what types of fake weapons you can bring, foam and wood, no real weapons here and the bows and air ross like the arrows have to be soft tipped. >> number three on the survival list is things to get tend to get hot in new york comic-con. do everyone a favor and shower before you wear clean clothes. have to leave it there. thanks very much. when we come back the biggest stock winners today. asional have constipation,

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wall street is holdingen to its gains up 93 points on the dow jones industrial average. the s&p is up 8. that's a half a percent. and the nasdaq trying to regain strength, had a good day yesterday for those long in that market and up three quarters of a percent right now. biggest winners johnson & johnson up 1.5%, safeway up almost 7% on the trading session, home depot up 1.3% and

tesoro up 5%. we'll see how it goes, they seem to be making progress in washington. >> absolutely. i was noticing the s&p 500 has basically been sitting right there at 1700 for the last hour. folks, that will do it for another week of "power lunch." thanks for watching. >> have a great weekend. see you when you get back, ty. "street signs" begins now. ♪ ♪ wishing and hoping and thinking and praying ♪ ♪ planning and dreaming each night ♪ >> happy friday. the song seems appropriate because d.c. is in wait and see mode as we await a deal, stocks aren't waiting around. they are higher again. gold continuing its epic slide. big show again. we'll hit our picks for stocks of the week. why retail is stinking up the joint. we'll ask herb greenberg why he's crouchy because he came after you on twitter this morning. >> he really did. i told him to wash his mouth out and he told me to, quote, shut up old lady. >> only half right.