at apple last year had incomes each of between 68 to $85 million. >> we're taking a look at the podium on the senate side where we expect the senate leadership to speak at some point. and we will bring that to you as we continue to watch this ongoing drama down there. that will do it for "power lunch." >> oh, yes. "street signs" begins right now. >> it is now 2:00 p.m. on wall street and in washington, t-minus 34 hours until america cannot pay all of its bills. a live look at the white house where president obama is expected and that's key to meet with house democrats at 3:15 p.m. eastern time today. >> in the meantime we are waiting for senate members to break from lunch. they are expected to make some comments. we'll bring them to you if and when they happen. in the meantime the markets you can safely say are fed up right now you can see on the board behind us, they are retreating

moderately to the downside. >> fed down. might need the fed to come in and raise the markets. more money for everybody. another fluid news day today. let's get to washington for the latest back and forth. john harwood, there's a policy lunch that mandy referred to going on right now. it was supposed to break up some time ago. is this a sign that we may have a deal brewing or perhaps the senators are simply napping after a big lunch? >> no. they come out usually about 2:15 to the microphones there and so we will hear both from the democrats and the republicans and the critical thing is going to be the status of reid/mckuj negotiations. it appeared reid/mcconnell were close to an agreement to reopen the government and raise the debt ceiling, one that they hoped the house would simply accept. that plan was up ended this morning when house republicans met, john boehner came to the microphones afterwards and said his caucus, which was badly divided hadn't figured out who

they were going to do. >> there are a lot of opinions about what directions to go. no decisions about what exactly we will do. but we're going to continue to work with our members on both sides of the aisle to try to make sure there is no issue of default and to get our government reopened. >> now that's a problem for mitch mcconnell because a competing republican plan diminishes his freedom of maneuver to make a deal with harry reid which is why harry reid went to the senate floor after that boehner press conference and lit into the speaker. >> we felt blindsided by the news from the house. extremist republicans and house representatives are attempting to torpedo bipartisan progress. let's be clear the house legislation will not pass a senate. >> we're waiting to see, of course, is whether reid and mcconnell restart those talks, how quickly, how quickly could the senate act after that and then would the house, which does not have the votes to pass its

own leadership plan at the moment, would they take it up and pass it still a chance to get it done, but time is getting short, brian. >> it is, john. listen, i don't want to be critical of senator reid here, not picking on either party, but i will say if you listen to what the senator said, extremist, blind sided, torpedoed. that type of language gets people angry. we've heard it on both sides. why don't they simply tone down the rhetoric. fighting this out in the media is likely making everything much worse? >> what i concluded was that reid's language reflected his angst that the deal that he was cutting with mcconnell was going to get blown up. if he didn't think boehner and house republican strategy was much of a threat, if it was just a gesture to playcate the hard right, i would assume he would pass it off without much of a comment. the fact that he felt the need or the impulse to go so hard after boehner makes me think he's pretty worried which made me in turn concerned that there was more of a threat to the

senate plan than i had perceived and, of course, on your point, john mccain went to the senate floor after the leader spoke and lit into reid for lighting into boehner. it is a very, very difficult situation in washington right now. >> indeed, it is. thank you very much, john harwood. to reiterate we're seeing live pictures of a podium where hopefully we will get comments from senate members who should be breaking from their closed door lunch any minute now and we'll bring you their comments. i would like to get down to the new york stock exchange where bob pisani is on his own podium and what are the traders saying about this? >> it's very simple, put up the dow, see what's been going on. there is a concern this is going to drag on for several more days. the anticipation is a deal would be made today basically. we were waiting. so you can see just slowly you drifting lower. the volume isn't heavy. the concerns this may not happen today, not even tomorrow even. we could drag into the weekend. that's what's going to happen if that continues to go on and no real deal or conclusion. take a look at the sectors.

interest rates have been moving up. one month high on the ten-year. interest rate sensitive sectors getting hit. utility down, housing stocks down, modest declines in the other groups, material industrials and consumer staples on t weak side because a lot of the individual names of consumer staples are on the weak side and some of the retail stocks are weak as well. speaking reef tail, walmart, i'm waiting to hear from guidance. we want 2014 guidance. the cfo is supposed to speak shortly. haven't gotten any numbers. the stock is moving to the downside. guys, back to you. >> thank you very much, bob pisani. so what could washington do to win investors back? let's go a little further than that. win america back? bring in russ, chief investment strategist at black rock. what advice do you have for congress? >> the first is do no harm. the same pledge that physicians take -- >> might be a little too late for that. what's the damage control. >> probably right. >> i mean look, obviously the first thing that needs to happen

is we need to get an extension of the debt ceiling, government needs to be reopened, the longer this drags on the more you risk unnerving not only investors but consumers and businesses. this needs to get settled the quicker the better. >> well, let's assume it will. russ, i know that is a dangerous assumption at this 11th hour of the game. what then? word bill vns been sold out of stock mutual funds over the last two weeks or so. do people come flooding back into the market? >> well, you know, this is very interesting. so look, i think what has to happen is the government needs to provide clarity, not just in the next month or two but longer term. getting some longer term plans on fiscal reform, on the regulatory structure. these are the things that are undermining business confidence and to some extent consumer confidence. your point about where the money is going was to me fascinating about the fun flows last week, was that all of the flows were out of the united states. we continued to see buying of

european equities, for example. this is a flip of what happened earlier in the year. in other words, investors are starting to question the notion is the u.s. the safe haven and they're beginning to look at other destinations. >> you make a very good point here. if you're a fed up consumer, consumers fed up with the uncertainty, it's easy to move your money offshore if you're an investor. where else in the world do you think looks like a good opportunity? >> i ronically, particularly after the last two decades we've looked at japan as a basket case for a long time, japan actually had a very good first half of the year, we're seeing some very aggressive monetary policy from the bank of japan. the market looks cheap. we actually think there are opportunities -- >> still cheap with the big run this year, still looks good to you? >> even with the big run. for example, if you look at a sicklically adjusted for the japanese market, assuming some nor mallization of markets, japanese equities still look

fairly reasonable and the one advantage japan will have is likely to be an aggressive central bank for the foreseeable future. >> i always knew russ was a genius. the nikkei last year, my prediction the best performing developed market in the world this year, but -- >> your new favorite guest. you have favored guest status. >> he has a relation that went to virginia tech. that's fantastic. >> my wife went to virginia tech. >> i didn't want to say who it was, but yes, go hokies, fantastic. all right. japan's looking good. we talked about europe and the inflows there. where did you avoid? >> i would be cautious about some of the merging markets. generally we think that over the long term there are good opportunities in the short term, i would be nervous about some of the emerging markets that are going to be very dependent upon foreign flows. places like south africa, for example, you know, these are places i would be more cautious on. but honestly in the near term i have to be cautious on the u.s.

not because i think we're going to recession or market is going to implode but if we see a slowdown in q4 because of the budget shenanigans this is going to be a drag on the economy, it's going to affect the market. >> mind you, here's the silver lining and brian made a little pun joke at the top of the show but it's not such a joke when you think about it being true and is that the silver lining is the fed is going to be increasingly or maybe even longer in play, no? >> i think that is true. this is one reason you haven't seen the backup in volatility as you have in the summer of 2011. we think volatility will be higher but you raise a great point, as long as the fed stays low for longer, continue quantitative easing this is dampens the volatility and helping to put a floor under u.s. stocks. doesn't mean they will be the best place to be but does help mitigate the downside. >> russ? >> real pleasure. thank you very much. we appreciate that. calling the nikkei, calling europe and excellent choice? spousal education. >> all right. she'll appreciate that.

>> reminder a live shot of capitol hill. senators are expected to break from lunch. hopefully maybe make comments. nobody i don't think has asked the podium what he or she thinks. we're going to take it live when that happens. >> fairly -- >> let's bring in kate kelly. you've been working the phones you always do to figure out what hedge funds are thinking and/or hopefully doing during this uncertain time. what have you learned? >> interestingly i spoke to a number of hedge fund traders. they are not that worried. the fear trade is essentially not on. if you look at things like gold which could be expected to rally if your trade were more pervasive or the vix which has come off since last week, it reached a three-month high since the middle or late part of june, and it's come off since then, you can see that fear has died down. they seem to think we will have a deal some way somehow between now and the ceiling deadline. >> because they think it would be so catastrophic if it did happen no one could be that

crazy? >> they think nobody is that crazy. they think there's a less than 1% chance in the eyes of one person i spoke to that this will happen. however, they're hedging and doing it in a simple way, a couple things. one person i talked to, for example, is just pulled a lot of money out of the market, not today but over the last few weeks, thinks that valuations are too high to the point you were asking about japan and if the market is not taking a downturn based on the fears what is going to drive that, maybe a negative earnings season, hard to say. this person can't make heads or tails so they're looking at other things like a long aussie dollar versus the u.s. dollar or other opportunities like longer term materials, mining, energy. another person i spoke to said i'm shorting the market through put options essentially. if we see a leg down in the spx or the iwm, the russell or s&p, you know, we could make a lot of money on that. it's not our prevailing view. >> thank you very much. >> still ahead on "street signs," is america's image at stake if we hit that ceiling? has it been tarnished?

we're doing debt debate damage control coming up next. >> later on if you think apple is just a tech company, think again. a full-blown case why apple may be the biggest plluxury brand. so she could take her dream to the next level. so we talked about her options. her valuable assets were staying. and selling her car wouldn't fly. we helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today... and tomorrow. so let's see what we can do about that... remodel. motorcycle. [ female announcer ] some questions take more than a bank. they take a banker. make a my financial priorities appointment today. because when people talk, great things happen.

welcome back. i'm eamon javers in washington where we've got a fluid situation here at the united states house of representatives, speaker of the house john boehner presented a proposal

here this morning as membership did not appear to like that and i've been talking with aides and members of congress off the record here to try to figure out what's going on. what's happening right now is that leadership and rank and file members of congress have retreated back to their offices to try to work the phones and figure out what kind of a deal they can come together with. i'm told there are some members of the republican conference who want to make the proposal by speaker boehner tougher, they would like to move the date of the cr closer the continuing resolution closer to january 1st, closer to the implementation of the individual mandate. the thinking here if they revisit this fight in january there might be a different political landscape because obama care will have had several months to roll out and members of the public will have a sense of what's in there. republicans thinking maybe obama care will be more unpopular in january than it is now and might have better political luck then. talking to other members it seems wide open at this point, at least one member of congress saying that there's at least a possibility here that they go

with a clean cr vote as early as tonight. seems like they're moving toward voting on something tonight and alternating between whether it's going to be tougher or flat out clean cr and be done with it. that's where we are right now. a very, very fluid situation in the house. >> eamon jabsers, thank you very much. let's get to michele caruso cabrera, news on another debt crisis rocking the world that happens to be puerto rico. >> just under way right now, the government of puerto rico making what could be as long as a three-hour presentation to assuage investors about the concerns that have mounted about their $70 billion debt load at this point. kyle bass was on cnbc last week told david faber there's maybe as much as a 90% hair cut when it comes from debt from puerto rico. they put up 75 slides and web presentation and talking to a massive conference call. the governor was the first man up and said we are going to do everything to meet all of our commitments.

here's one of the slides as they try to overwhelm everyone with data that they say proves they can pay their bills. the debt of the country has sunk over the last several months as people have grown concerned about their recessionary state in the country. >> thank you very much. three hours potentially of damage control there. in the meantime here back at home is america's reputation at stake if we hit the debt ceiling? david tepper says yes. take a listen to what he said on squawk box this morning. >> when you lose your reputat n reputation, it's hard to get your reputation back. when you miss a treasury payment, that's not a one week or two-week deal. you don't get it back so fast. it will take years and years and years. okay. and we just can't afford, we can't take the chance, we can't be monkeying around, playing around. >> but is america's brand already tarnished? joins us from uray shah group, ian bremer and steve liesman.

is america's reputation ir represent paly damaged or can we recover? >> depends on what you mean by our reputation. look at whether or not chinese are still interested in sending their kids to american colleges or buying treasuries or new york real estate the answer is overwhelmingly u.s. the u.s. brand, u.s. dollar hasn't changed. but america's brand has been tarnished in terms of our commitment to our allies. in terms of the ability to promote american values internationally. the notion that america is going to play the kind of leadership role in the world and will be takep as seriously around the world by both american allies and american antagonists has take an hit and i think that the government shutdown is only the latest in a series of issues over the past month like the nsa snowden scandal. every time i talk to a foreign

minister from another country they're hedging. >> a number of black eyes recently. some of them on the screen. steve leaseman, what does it mean in terms of america's ability to push its international agenda? >> i think it's huge and i think the particular reputation of america that's been damaged is our democracy and that's a way -- >> explain that. >> run the world as we go around and rather than imposing our will through military might, effectively we've gone around and tried to foster democracy all over the world and a way that america has led the world. i think that leadership because of the outcomes from our brand of democracy, are like well wait a second, why is that such a good idea out there. it's better than some of the alternatives but i think these outcomes are things that raise questions in people's mind of whether or not they want to follow the american model. >> ian, let's back it up a little here. i fear because all of us are still relatively young folk, we have recentsy by us.

in the speakership of the legendary tip o'neill, the u.s. government shut down 12 times in his ten-year tenure as speaker of the house. are we overreacting to this? >> yes. yes, we are, we're overreacting to the government shutdown. we're not overreacting to the decades of the united states preaching exceptionalism around the world and not living up to those values. here we can talk about the perception of bush versus election and the decision by the supreme court, the financial crisis, you can talk about the enron scandal, you can talk about guantanamo and abu ghraib. there are a lot of things that make america the greatest country in the world. it's the largest economy where people want to come. they're not trying to swim from miami to cuba. they're coming the other way. that's still true. but america's ability to talk about its exceptional values, its indispensability is met with derision internationally and the chinese government is more than happy to write articles in their

state media in the last two days talking about deamericaization that is hurting america's value projection. >> i think we've taken a hit and that would cost us potentially in basis points of it interest, but the issue out there, which has been really true for the last several years, there is an alternative. europe really fumbled the ball when it came to the possibility of creating a global reserve alternative. china is nowhere close to having that level of trust. so i think we sneak by by default here and i don't mean that in the sense of default on the bonds. i think by default of not having a real competitor. >> ian? >> sure. again, the fact is that we have a lot of rope to hang ourselves with and we're intent on using it. that's where we are. there's no question that congress is getting away with acting incredibly dysfunctional in part because there aren't great models out there. there are no other challenge to the american dollar as the global reserve currency. >> china is uncharacteristically

happy to come out and rid dual america but how is it economic speaking capitalize on that. saying words is one thing but is it going to translate into them actioning this -- >> i think it does. it slows down, for example, and waters down american trade agreements like the it tpp and the t tip. that definitely affects capital flows over the long term. it affects american stands as global on things like internet and telecommunications where other companies will end up having more of a leg up domestically, more expensive for americans do do business. >> same countries that every time there's a problem in the world, where's the american military? why aren't the americans here? wait. we don't want to get involved. oh, but america please come help. sometimes we get a little overboard at that but the reality is that these countries, they love to pile on. >> if you're asking me is there

hypocrisy on both sides, the answer is yes. >> i don't care what the chinese state media says. >> mandy's question was more than that. >> the americans don't show up, when obama doesn't show up at the most important asian summit and the chinese are giving speeches and america's allies like the indonesians and the vietnamese are sitting there with domestic pressures thinking we shouldn't be following as much of the american model that has a long-term impact. >> i think -- >> you have to care what the chinese say. the days of us not caring we may be too big to fail, not too big to care. the days of our not caring about what the chinese va to be put behind us, steve. it's important. >> you made an excellent point about democracy and how america has tried to push democracy around the world and we've held up democracy as a positive thing and i can see -- >> still is. >> and i think it still is but how the chinese would see democracy is being bogging us down and unable to actually make decisions and implement those decisions. >> i'm sure any au crat or

monarch would argue that point. >> absolutely. >> much better than 300 million people competing ideas -- >> whaem saying is that democracy has been tarnished -- >> america has -- >> no. >> a premier place in the world right now. america is the reserve currency. we get free loans from around the world. if we want in the next couple days we can snatch defeat from the jaws of victory, we can ruin what is and should be a very good thing for the american public if we want to mess around with this. and i think people need to understand what's at stake here as we get further out on the limb than we've ever gone. it's one thing to shut down the government. another thing to tell krets creditors you may or may not get your money on the first of the month. that's where we are and it's been the sanctity of the u.s. debt that has been the foundation of the global financial system that has effectively dominated by america. we mess with this at our own peril. >> guys, i need to jump in. excellent discussion and debate.

let's not forget the majority of the world right now is pushing toward democracy. we're seeing it all over the place like three times more democratic countries than 30 years ago. we have problems. no doubts that. if you're on the radio and can't watch cnbc the video, i want to describe what happened. harry reid walked down the capitol hill hallway toward the podium, the preppy guy at the podium alert, adjusts the microphones, nice hair, moved away. senator harry reid walked through toward the senate floor. if he makes comments from the senate floor we will certainly bring those to you right now we've got a hallway about a thousand members of the media a podium with a very nicely sort of brushed light blue velvet top. i want to throw that out there. >> let's take a look at what's happening with the markets in the meantime. a little on retreat today. the dow is currently down by about .6%, that translates to 85 points, the s&p off by 7 points there, the nasdaq is off by 10 points. we'll keep an eye on what the markets are up to.

certainly a little skepticism coming to the markets as we keep stretching out these negotiations and not coming to a deal just yet. in the meantime still ahead, the trains and tools of earning squad. >> ian bremer if you're still out there, thank you, by the way. >> sorry we got so -- >> it's very fluid. >> bogged down. >> why the street is really liking social media stocks right. >> and later on, luxury lust. why apple is now the world's top luxury brand. it tech brand but getting no long for it and how the luxury automakers are trying to woo the wannabep rich. i'm beth...

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welcome to the earnings squad where we dissect the stories everyone is talking about. i'm melissa lee. joining me is dominic chu and contributor stephanie link. let's start off with the score card about 7% of s&p 500

companies have reported so far 53% beat estimates earnings season kicks into high gear with a half dozen dow components and over 50 s&p 500 companies expected to report this week alone. start off with granger and the industrial sector, the company set to report earnings before the bell tomorrow and what are you watching for especially after they gave us a data point to work off of. >> that's why this is important. more so than the earnings numbers themselves is what this company is going to say about manufacturing. they're one of the largest industrial distributors in the country. 2 million customers, 1 million products. we'll get a good read not only on manufacturing but nonrise construction. i've been on a bull on nonrise construction recovering. listening to data points on that point. i would say they have 17% of their exposure is government. so we'll see if they start to blame the government. but down 6.8% last week, up 4.7 from lows. if this were to pull back it is

a buying opportunity. >> they announced restructuring in august where they're refocusing their businesses to the americas and also emerging markets. that could be an interesting story. >> they're taking market share. there's so many fragmented players in this space. they're going to grow earnings 15%, great return on capital. that's why i say on weakness it might be a buy. >> another read on the economy before the bell tomorrow, csx the railroad company having a solid year so far, having beat the street in the first as well as the second quarter and -- but the problem here is, coal, because the inventory across power plants et cetera a little too high here, got breaking news here, back to brian sullivan. brian? >> senate fiscal negotiations suspended until the house works out a plan. is that what i heard in my ear? fantastic. there you go. that's what we got in. sorry to cut off the earnings squad. good job by the way. so there you have it according to reuters senate fiscal negotiations suspended until the

house works out their plan. so to john harwood's point at the top of the show, here's where we stand if you've just come off a raft or out from under a rock. here you go. yesterday about this time we thought we would get a deal and might come during this hour. a 3:00 p.m. meeting scheduled for the white house. about 2:40, 24 hours ago, that meeting was postponed. seems like it has now devolved back into the house which was sort of off the able yesterday. the house maybe got upset and we see the house putting forth their own bill allegedly. last night and today, mandy. >> i think it's interesting how the market is a little bit manic depressive here. yesterday it was taking the postponement as a positive. we're watching during our hour the markets ticked up to session highs. but here, we're actually watching the markets tick down, down by 94 points on the dow. you know, look it's not a huge move, we're talking .6% to the downside but interesting the market is reacting a little

negatively to this suspension. >> well, that's coming by the way from as you see if you're listening illinois senator dick durbin here the one sort of leaking slash saying those comment about the suspension of the senate negotiations. to your point it cannot be viewed as a good thing. >> no. >> the senator considered the big boys right and the house sort of they fight amongst themselves because there's so many more representatives than there are senators and at this point looked like we had gotten through the house, the house gop sort of caved, we were in the senate, we thought this time yesterday we would have or at least be very, very close to a deal. talk about well by tonight we should have something. i don't want to say this puts us back to square one, certainly a lot has been worked out, but for the markets perspective got to view this as a negative. >> can't afford any more stalling as we're hurdling towards the deadline. >> the breaking news here. senate talks suspended until the house works out their plan. the dow down nearly 100 points right now. d.c. get your act together.

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show you what's happening with the markets. the dow down by 114 points, losing quite a bit of steam here, guys. this is despite the fact that

earlier on today things were not so bad. in fact, the nasdaq 100 was touching its highest since november 2000, the small caps, russell 2 k at all-time highs. as talks seem to be dragging out in washington, the market seems to be feeling a little bit more nervous about what's going on. >> more of a disaster. >> let's move on to coke until we get breaking news hopefully from capitol hill. coca-cola not getting any love today despite the fact that global volume grew about 2%. the market, though, was looking for more. stock barely positive for the year. hard to not call this a disappointing name. john is here now. did i get that right? >> you did. >> i didn't want to -- >> i get focker sometimes. >> you were on the show a couple weeks ago and raised a red flag about weak soda sales. what did you make of coke's

quarter? >> i thought coke's quarter was okay. the stock is basically flat year to date, disappointing name for a lot of my investors. expectations were pretty low. the north american volume actually came in better than what we thought. they did at lot of promotion towards the end of the quarter. it's a difficult macro environment out there globally. emerging markets are all over the place. europe is still weak. they're doing okay but that doesn't necessarily make it a compelling stock to own right now. >> absolutely. coke sodas are about 70% of its global sales. even though they have some diversification and nonsodas and whatever are doing well, they don't have enough revenue coming from that area to be able to move forward as much as you would like. you only got a neutral on the stock. >> that's correct. i think they do need to get more noncarbonated exposures. they're dealing with obesity head winds and concerns about aspar tame. their business is growing and will continue to grow globally but it's not going to reach the

type of volume growth they hoped for a couple years ago. they need a little more diversification, juices, waters, et cetera. >> got to leave it there. thank you very much. larry kudlow on the phone. we'll get you back on soon. larry kudlow joining us by phone. you heard the latest news and headlines. looks like it's falling apart. how do we view this some. >> i don't think it's falling apart but i think it's snagged because republicans in their conference meeting have to come up with a vote and they have to be specific and i think the issues are not so much dates as requirements regarding the affordable care act. i think that's -- that's the issue and a couple of sticking points. they're going to have to deal with this. number one, the house does not want congress exempted from obama care. very important point. the house does not want to give

labor unions a separate break, a big issue, when labor started revolving against obama. they do not want a separate tax break for labor unions that would give them their cadillac plans back and number three, they want to get -- they want to cut the medical device tax. they believe, you know, hearing aids and pacemakers and things of that sort. number four, they do want more specific income verification for the subsidies. okay. that would go to people who go into the video mandate. those obama care requirements are the sticking points inside the gop conference there's still discussions about the merits, the conference itself is not unified. it has not voted yet. but they want those on the top of the dates we talked about yesterday and the dates are okay. so far as i know, the dates to

extend the cr and the debt limit and the dates to get a new budget are all okay. >> larry, you mentioned a whole lot of sticking points. we are october 15th today. october 17th is the dead line. i'm going to ask you to be a betting man. do you think we're going to go over with no deal? >> it's a tough question and you're asking the right question as you always do. i don't know. the truth of the matter is, i don't know. i think they can get this done in the next two days, okay. i think they can get this done in the next two days. because the negotiations on the hill are feverish. okay. it's intense. there's no question. much different than it was a week ago. having said that, i can give you no assurances. believe me, i talked to people, i have contacts, i talked to members. i talked to staff. they don't know yet. and you could slip the thursday

debt ceiling, you could slip that a day or two. add that is not catastrophic. the treasury has cash on hand and tricks up its sleeve to get us through the next several days to be honest. they can go past october 17th. i want to say what i said yesterday in our carl kints nia special report, the usa will never default on its treasuries. i know the bond market is worried about 30 day paper and i get that. but i will say to you, the revenues are there to cover the interest expense on all treasury debt and that will forever remain so. >> t bill yields doubled from front to back. one of the points you brought up was a sticking point. on obama care.

make sure people don't cheat the system. the democrats seem to be pushing back against that but isn't that something that the white house initially put into obama care but later waved? george will in "the washington post" said as much. isn't this something that was in some ways a democrat idea to begin with they're fighting about? >> yes, it was. it was absolutely. yes, it was part of it. you're going to have -- you're right. there's a rolling subsidy process here for people who sign up for obama care. you may be right going up to 400 percent. for a family of four the income level peak was about 85 or $90,000. you're right. what happened was, the computer glitches and the software glitches which were never tested properly before the october 1st

start date, caused the white house to delay verification, i believe for one year. that was one of the delay issues. and so what happens is, tare' going to sign -- they're going to sign up people but will not have the wherewithal to check and verify their income. it's like in the housing market, five or six or seven years ago. remember the wire loans, you had no income documents, you had no job documents, that's what this is all about. and republicans and everybody else objected to it. they said well, we're just going to have an open-ended entitlement with no idea -- >> larry. sorry, there's a lot of news coming out of d.c. we have to try to get to all of it. thank you so much for jumping in there. >> my pleasure. >> a hundred cents worth from larry kudlow. we're going to be following the stories. jared bernstein on the other side of the break as with the markets they're reacting as well. moving to the upside here. what are we off now, triple

digits on the dow. we'll bring up the numbers in a second. >> gold is up only 9 bucks an ounce. hasn't caught maybe as much of a bid as one might think. >> bill griffeth what have you lined up? >> we'll pick up the ball you're handing to us at the top of the hour, the clock is still ticking and we hear maybe things are falling apart in d.c. and you're seeing that in the stock market. we'll have a member of congress from both sides of the aisle trying to help us make sense of all this. the always outspoken donald trump weighs in on who holds the upper hands on these negotiations and could the government shutdown and debt ceiling fight do enough harm to the economy that the fed needs to increase its system plus, not taper. we have dallas fed president richard fisher here with us exclusively and he's against any kind of quantitative easing as you know. maria and i look forward to seeing you at the top of the hour. it's going to be a rough one. we'll see you then. stay tuned. (vo) you are a business pro.

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table their own negotiations until the house submits a plan. john harwood, i would imagine by this time you are dizzy because you are spinning round and round with all these negotiations. i thought the house was out of this already? >> yeah. a lot of people thought that, brian. this has been a crazy day. i just wanted to try to make some sense of these reports that we've been hearing as senators left their policy lunches about the status of negotiations. just got off the phone with a leadership aide in the senate on the democratic side who said the negotiations have not collapsed, but john boehner in effect hit the pause button by coming out with the idea that he was going to have a plan. they expect the negotiations to resume. if the house comes to a determination on the house gop plan, it either fails or they decide not to bring it up, john boehner did not commit to a course of action because he lacked the votes to do it. now as for the timing, this aide said there is still time if they can get consensus between

mcconnell and reid to pass a bill tomorrow, a debt limit -- lifting, reopening of the government tomorrow and have the house pass it as well before the october 17th deadline. however, if ted cruz and mike lee the choose to filibuster and deal. they already have the capacity right now to take us past the october 17th deadline. so we could breach that ceiling if they choose to slow down a potential senate deal. as for when those negotiations might reopen, could happen later this afternoon or evening. could happen tomorrow. they were very close between mitch mcconnell and harry reid yesterday. the question is does the house pull the plan on its own plan allowing negotiations to restart or does john boehner make

adjustments to the plan? there's been talk of extending subsidies to congressional staff. there's been discussion of taking away the conscience clause relating to the availability of abortion under obama care, adding that to get conservative support. all of those things affect the fate of the house republican bill, but its failure seems to be the key at the moment to the resumption of the reid/mcconnell negotiations. we're in limbo until we know whether it fails or succeeds. >> limbo is the word. they've got to get a deal done. thanks very much, john harwood. let's find out about the trader psychology here. bob pisani, i want to throw something out here. i was pondering the market's reaction to the negotiations being stalleded. we're down by triple digits but we were already down today. if you feel there's real

septemb skepticism, we would be tanking more than we already are? >> i think it is dawning on everyone that this process may be more dragged out that people had anticipated. i don't know if you all saw senator reid there, but i was just talking to art cashin, i said, that was quite a performance. he said, yes, spite is back in the game. reid looked absolutely furious that his plans to put together a grand deal were falling apart in front of his eyes, thanks to john boehner. that's the way all of us looked at it down here. i think that's the way the markets looked at it as for now, skepticism levels are high on this. rates moved up in the last day or so. we're at one-month high. interest rate sensitive groups are very much under pressure today. back to you, mandy. >> up next, jared bernstein on the other side of the break. the american dream is of a better future,

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let's bring in jared bernstein on the phone. i'm going to skew with the titles and get right to it. what do you make of what's happening? have we taken two steps back? >> yes, at least two steps. remember yesterday i was talking to the two of you and i suggested this is all up to john boehner. if he wanted to bring a clean senate bill to the floor, we'd be done with this by now. he didn't. there are obvious reasons why he didn'tment want to do that. certainly his caucus is pushing back hard against him. he couldn't have gotten the senate vote across the legislative goal line without a bunch of democrats. as long as he doesn't want to do that, we're numerous steps behind this. >> how do we get by this. >> the only way to get by this

is for john boehner to decide to break the hastert bill and i'll pass a relatively clean bill from the senate with mostly democratic votes. the only way this works. i think that's what we're looking at, i guess i hope that's -- i really hope that's what we're looking at, but not until the last minute probably. >> keep on hoping. a quick look at the markets. dow off by triple digits. like i was saying to bob, if the markets were really, really doubtful about a deal getting done, you could imagine they would be off a lot more. the vix is up about 11% but only at 17. historically speaking that's pretty low, folks. we were more than double that just two years ago. thanks for watching "street sig signs". >> could be a huge next hour. "closing bell" begins right now. or in two minutes. ♪ [ male announcer ] eeny, meeny, miny, go. ♪ ♪

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breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. good afternoon. welcome to the "closing bell." i'm maria bartiromo. stocks slumping after we heard house republicans broke out their own plan on proceeding to end the government shutdown and exceed that debt ceiling. >> we were so close. >> seems like it didn't miss that much. john harwood, let's recap. yesterday we had one deal they were working on. this morning they had two deals they were working on. now we've got nothing. >> it's very fast and fluid situation, bill. reid/mcconnell got close to