good friday morning. i'm sara eisen in pebble beach, california, with carl quintanilla back at post 9 of the new york stock exchange. big hour ahead for us. the ceo of arm joins me in california on whether he has a plan up his sleeves to reverse some of the stock losses post-ipo. >> also the ceo of carnival with us. choppy waters for the share post earnings. do they past expectation even though guidance disappoints. later nasdaq ceo edina friedman is here as well. what's in the pipeline for more public market debuts later this year. finally, we have some green

arrows on this final day of september trading and q3. obviously tons in the news flow this morning. a lot involving inflation as core pce comes in 3.9 year on year. that's the first 3 handle we've had in some time. we're watching washington and the potential for a government shutdown over the weekend. the uaw expanding their work stoppage to a couple of the big three. >> this is all par part of the story and how we view the fourth quarter and the economy into next year. are those shocks going to make an impact? you mentioned pce, the inflation number. that's obviously the talk of the day on wall street and somewhat encouraging we saw that core number go below 4% from last year. it's 3.9%. jane fraser, the ceo of citi says we're halfway there to getting inflation down. the second half can be challenging. we spoke to the white house, head of national economic council, lael brainard, and here's what she said about the

path to lower inflation. >> the main story of all the naysayers was that you couldn't get core inflation to come down without a big increase in job destruction. that is not what we've seen. we've seen continued job creation and inflation at the core has come down into the range that we saw pre-pandemic. >> clearly, the white house, carl, is happy about this number, as she said, back to pre-pandemic kind of ranges. she's looking at three-month averages there. but also at a time that we really have not seen a lot of stress in the jobs market. i think that's the question. as we look to some of the headwinds, including a potential government shutdown, which she squarely puts in the house republicans' hands, their fault. but that, the uaw strike, the student loan resumption. the fact that as fraser said, the soft landing.

it's quite a debate on wall street. it depends on who you talk to. >> and reflects an evolution of fraser's views, some interviews with you last december, she was in a recessionary camp. she talked with you this morning about a potential soft landing. we heard from blackrock's rick reiter, he thinks the fed should be done hiking but are they actually finished? take a listen. >> i've learned in my career invest relative to what you think they're going to do not what you think they should have done. i think the arthur burns' dynamic is important to them. i think the idea that, gosh, we need to make sure employment is not going to pressure service employment higher, we want to make sure wages aren't going to be excessive. i think they want to see time and watch the data for a period of time. >> on for more on what to expect from the fed and the barrage of ecodata, let's bring in omaring a gu lar. are you encouraged -- i guess,

do you trust the kinds of prints we've gotten not just with pce, german zone, eurozone, ppi, all these inflationary trends this week? >> it certainly feels very encouraging to actually see the trend towards lower inflation seems to be confirmed by all the data. i've got to believe people at the federal reserve and central banks around the world think in the same way. their job seems to be working in the way they want to. i do think going into the second part of getting close to the 2% target is their biggest concern and how they can get where from we are inflation wise, with these trends, especially when you have a significant amount of headwinds going into next year. >> isn't the more sinister story, though, the idea that these yields, especially long-term yields are rising not on inflation but on supply and japan and china cycling out fewer dollars with deficits and

downgrades, that idea that structurally you could wind up with higher rates even with the economy softening? >> well, that's the biggest discussion we have had over the last couple of weeks, which is precisely what is the driver of these yields going higher? clearly on the short end it's always driven and controlled by the fed and central banks. as we think about the ten-year yields and even longer duration, big parts of the way you describe it is you usually tend to deal with economic growth, which is not the case now, because we're decelerating globally, you don't think about inflation expectations. we just said it, no, that's actually going the opposite way. so, the only explanation of that extra increasing in volatility or yields has to do with supply/demand imbalance we see around the world. when you put all the three pieces together, our big thesis this year is we need to see some stability on the yields before we can see a little more clear path for the economy as well as for equity markets.

>> until then you stay defensive? how do you play it? >> yeah, well, we've been encouraging our clients to just be barbell. when you think about equities on its own, there's still risk around the potential disinflation and the effects of high yields. every single valuation today will point towards the change of the denominator for any valuation metrics that any fundamental analyst could have, given interest rates are still rising. when you think about that and the value you see in equities, relative to the risk premiums you can have, you have to still figure out if there's the potential the soft landing scenario may turn more negative than what most people think. in that sense, we continue to encourage clients to have a portion of their portfolios to be more high quality, a little more defensive, while at the same time start thinking if we are in the camp of these rolling recoveries, that they should be some portion of their portfolio that start to position themselves for recovery in more cyclical stocks, high quality

growth that could potentially take them to the next phase of the recovery into next year. >> omar, it's a good take as you wrap up the quarter. what a quarter it's been. have a good weekend. >> thank you. >> let's turn to the auto strikes, carl, because you mentioned last hour the uaw announced an expansion to that work stoppage. ford and gm are now the targets. phil lebeau with the latest. how widespread is this, phil? >> fairly widespread. you're talking about an additional 20% of the u.s. production for those two companies that is coming down. shawn fain said earlier this morning there was a flurry of interest from a number of the automakers. ultimately the union made the decision that it was time to expand the strike. here's fain a few minutes ago. >> sadly, despite our willingness to bargain, ford and gm have refused to make meaningful progress at the table. that's why at noon eastern time

today, we will expand our strike to these two companies. >> the so two additional strike locations that have been added, starting first with ford. it's the chicago assembly plant. about 4600 uaw members. that's where they build the explorer, the lincoln aviator. that's about 12% of ford's u.s. production. and gm's lansing delta township, 2300 uaw members. that's where they build the chevy traverse, gm enclave. if you look at the total number of strike locations for the uaw in the united states, it now is up to 43 locations across the country. five of them are final assembly plants. two for gm, two for ford, one for stellantis. let's take a look at shares of the automakers. let's talk about stellantis. shawn fain said they have seen some meaningful progress in terms of the discussions with stellantis. not enough at this point, guys,

to say, yeah, we think they'll get this resolved soon, but that is the way he characterized the fact that they are encouraged by the pace of discussions there and as a result, they did not call for new strikes at any stellantis facilities here in the u.s. again, the strikes that were announced, those start at noon eastern time. guys, back to you. >> phil, going back to well before the strike, there were those who argued they didn't think they would go against all three automakers, that they would do a pattern bargain starting with stellantis. is stellantis sort of going to be the pattern model? >> i don't think so. i don't think you can pick a pattern, carl. i think that, you know, for a while there was discussion or, you know, the suggestion that ford is further ahead than gm or stellantis. and now that you have stellantis not being included today, i think it's too far to say, yes, stellantis is ahead and it will be the pattern for gm and for ford. i think shawn fain and the uaw,

they want it this way. they want to keep all three automakers guessing. they believe this is the way to put the most pressure on each of those automakers so that nobody can say, okay, these guys have locked in, here's a general idea of what we think we can get. he wants, shawn fain wants, each of them almost bidding against each other. you want to get this wrapped up? you better come more to the table -- come to the table with more than what we -- you had last time and enough to get the deal done. >> a lot of high stakes standoffs we are following into this weekend. phil, thank you very much. we'll turn to you for the latest. we have a big hour still ahead on this show. ceos of arm, nasdaq and carnival. carnival with guidance coming in weak. we watch the markets on the final day of the quarter. s&p 500 and nasdaq on pace for the worst days of the month. the s&p close to session lows. up 18. ve hearing aids from another company...

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for the industry at large, which has become one of the most important and interesting industries. joining me at citigroup's conference for an exclusive interview is arm ceo rene haas. good to see you. >> thank you. >> good to see you after your stock opened, had a blockbuster debut and has kind of struggled since then. what's your reaction to the pr price? >> our advisers said if you can price at the high end of the range and go out at that number, it's a good thing. that's what we did. just really, really happy where things are at the moment. >> a lot of analysts have come out with reports. i know it's been a bit of a choppy environment overall in

the market. there are these lingering questions about where growth is going to come from for you, especially in a post-smartphone growth world. what are you telling investors about that? >> the arm of 2016, that's when we were last public before softbank bought us, was concentrated in the mobile market, as you mentioned. we're now a much more diversified company. we expanded into the data center, we're in the automotive, we're in iot. what's happening is more and more of these devices are essentially computers. the car is a computer on wheels. the data center doing more and more around a.i. smart devices that require security and artificial intelligence. for us, our diversification strategy, which we put in place a few years ago, really represents the arm of the 2023. >> still, what, 60% smartphones, right? >> no, no. we're about 40% on smartphones. >> how is the growth going in auto -- specifically in auto? >> the two highest growth markets for us are in the data center. where increasingly people have

to use much more power efficiency, which is the product arm does. we have a lot of growth in data center and automotive. the systems that control your antilock brakes and power wins are also arm-based. >> you helped power one of nvidia's new chips. are you struggling to convince investors that you're an a.i. play? >> no, because you know, a.i. has been around for a number of years. when you think about a robo taxi, that's a.i. that runs on arm. when you think about edge devices like the alexa or assistant, that's a.i., that runs on arm. what we're seeing now, sara, is an acceleration, if you will, of -- and i think the chatgpt is what accelerated it all in terms of the capability of what large language models could enable. now what we're seeing is a big jump up in terms of demand. as you mention, the grace hopper chip that nvidia builds which essentially an nvidia

accelerator with arm cpus. >> is there more to do there? >> a lot more. we just really scratched the surface in terms of how capable these devices can be. >> more to do specifically with nvidia, where everybody -- >> i think there's more to do in the data center certainly in terms of training. the other thing you think about is inference. inference is the devices that take all that training and put it to work. that can be a security camera, an automobile, a smartphone, your pc, all places arm plays. as large training models find their way into edge devices like phones and cameras, arm will have a huge role. >> so 45% is still a good chunk of revenue tied to smartphone. is is there any more growth left in that market or -- >> we think so. it's a mature market we think in terms of the amount of units per year. we're not seeing double digit growth any longer. at the same time, the devices are getting smarter. they're requiring more and more compute capability. we see a lot of demand for more and more power efficiency. we think there's a lot of room to growth in the smartphone

market. >> there's a lot of external factors affecting your industry as well. on the c.h.i.p.s. act in the u.s. as a chip designer, i mean, they wanted to leverage innovation in this country, r&d and design. how are you affected by it? >> we don't build anything. we license these cpus and gpus. one level we're not directly involved. another level we're extremely involved. i personally think the c.h.i.p.s. act is a great thing. i think it's a strong move in terms of getting supply chain resiliency, which is needed. right now it's concentrated in one part of the world. i think having more and more manufacturing across the united states and the c.h.i.p.s. act in europe is really important. most of the designs in the fabs, they use arm. >> are you seeing the talent that you need when it comes to design if the u.s. really is going to become -- i know it's largely about manufacturing, but you have worked before to try to upscale talent so that people can do this in this country. >> it's an industry wide problem

and a challenge. we need more and more engineers. it's funny, people talk about a.i. replacing jobs and jobs going away and they say, we need more and more engineers. i think that's the case for our industry. for the next decade, these chips are complex to design, which is what we do. they're complex to manufacture, which is what manufacturers do. we will need more people. >> does the u.s. have a problem on that front? >> i think it's a global issue and just having more and more engineers we can get into curriculums to learn semiconductors. you and i were chatting briefly before the break. semiconductors were want the kind of things people were going into ten years ago in universities. now with maybe all the renewed -- >> no one cared about us. >> no one cared. >> now we do. >> maybe the next wave of engineers will be in our industry. >> another reason we care and that's very important is that you find yourselves basically in the middle of a major technology conflict between the u.s. and china. if not all out war on semiconductors. and it's a quarter of your business. i know it's a separate entity.

how do you plan for worse case scenario? >> for us, china, like you said, is about 20% of our business. today it's mostly concentrated around the data center and automotive, which is where we're seeing the growth areas globally for the rest of our industries. i don't think the arm headaches or my headache about geopolitics are any different than my peer group. it's something we have to navigate through every day. it's a tricky thing to think about because there's a lot of unknowns. i don't think arm is unique in that case. >> well, it's unique in that the high exposure. are you affected by the export controls that the commerce department put on? >> we're affected. when we are impacted by it, and we definitely comply. we're a uk company, so most of our engineers sit in the uk versus the u.s. the rules are a little different. where there are export restrictions and they impact us, we absolutely do comply. >> uk company, why don't you go public in the uk? >> well, the u.s. market is a very, very large market. and as a result of just the exposure to investors and such, we chose -- >> they fought and fought hard.

because of brexit? >> i don't know. i don't know. but the nasdaq has been very good to us and it was a good outcome. >> thank you very much. it was good to catch up with you in pebble beach, rene haas, ceo of arm. rising fuel prices, big concern for carnival. posting a beat on the top and bottom line this morning. the ceo josh weinstein joins us next. nike on pace for the best day since december after q1 earnings. meantime, the dow heading towards the lows of the day, holding yonto 52 points.

calhoun saying the travel has been more resilient saying order books has been as robust as he's ever seen in his career. september has been tough on the stock. it's gone from 230 to $190. let's get on a news update. >> carl, good morning. the senate honored the life and legacy of senator dianne feinstein this morning. a vase of roses sat in her vacant chair as they opened their session today. her colleagues were led in prayer by the senate chaplain and then held a moment of silence. feinstein, the longest serving female senator, passed away last night at the age of 90. a judge ruled today that the teenager convicted of killing

four students at oxford high school in michigan is eligible to spend life in prison without parole. that's the harshest possible punishment in the state. the teen who pleaded guilty to the charges stemming from the november 2021 shooting is not scheduled to be sentenced until december 8th. and 23 million people in new jersey, new york and connecticut are under flood watches as a storm dumps rain across the tri-state area. new york city subway system said every single line is affected and roads have been snarled by the rising waters. meteorologists say potentially historic amounts of rain could fall friday into saturday morning. sara, i'll send it back to you. >> what a mess. it has been raining for two weeks straight. thank you. >> you got it, sara. when we come back, nasdaq ceo edina friedman, her take on the fed, the state of the ipo market and her outlook for the fourth quarter. as cnbc celebrates hispanic

heritage, we're sharing stories of influential hispanic leaders like the cfo of carmax. >> immigrants, including my father, are pioneers. they go into the great unknown. he wasn't fully sure what to expect when he immigrated but he had hopes, aspiration, he had dreams. that's a lot of risks. it's a risk and reward mentality and you need to be clear what your long-term vision is when you take such a risk. i know my father did.

shares of carnival having a volatile morning. the company delivering a beat across the board in the q3 earnings this morning, but more cautious than expected guidance, sending investors fleeing to the life boats, if you will. the stock is down 5% right now. joining us to discuss is carnival ceo josh weinstein. welcome. it's good to have you. you finally turned a profit, first time since the pandemic, and sounds like you're pretty

bullish still on demand. what's happening? >> good morning. yeah, absolutely. the one word we could use to describe our third quarter is record. we had record revenues, record customer deposits, record booking levels for the future. all signs are incredibly positive and we are bullish. >> what about that outlook, which was disappointing? i know fuel cuts have been on the rise. is that it or is there something else happening here? >> well, i mean, i can tell you what we delivered, which was that record position for our third quarter. i can also tell you for the fourth quarter we're projecting continued strength in revenue. our deddeper diems will be up a effectively the third quarter. we're doing the job. we're delivering the performance we said we would deliver, despite the spike in fuel. absolutely, which is a big piece of our cost structure. despite that spike what we said

is we're going to raise our guidance for the year. we feel very, very good. and the consumer has shown absolutely no signs of slowing down with our business. >> no signs as far as forward bookings and spending patterns on board, you're not seeing a change? >> we're really not. what we said on our carl earlier today, when you look at onboard spend levels of our consumers, it's been consistent every single quarter. we're forecasting the same for the fourth quarter. so, there's been no slowdown in that immediate sense of gratification we can get from onboard spend levels. our yields were record high in third quart. we're booked ten points higher than ever in history, at higher prices. so, all signs for us are no slowdown. >> josh, you can't blame an investor or viewer from wondering what the difference is between your outlook and those of the major airlines where they have guided lower, they talked

about softer leisure bookings, they talked about oil and weather. why is that not a factor for cruise lines? >> well, you know, as you heard me say before, we are unprecedented and warrant gap. in this type of environment, that is a fantastic wind at our backs. why? because the consumer knows they'll get great value from us. and if they're looking to get more for their vacation dollar, they can take a cruise and have an amazing experience without having to worry about anything. that's exactly what cruising provides. >> what are you seeing in europe? you obviously have a lot of exposure there. you had talked about last quarter improvement. is that continuing? some of the macro data in europe specifically has really weakened. jane fraser of citi was talking

about that, too. >> i'm happy to say the strength we showed in our results and forward projections are, in large part, due to the strength of the recovery of our european brands. our two continental european brands this summer, both had higher yields in the third quarter of '23 than they did in 2019. that's a far cry from a year ago when i was talking about the concerns that we had about europe because of energy concerns, the ukraine geopolitical, state of the consumer. the fact s europe is now helping drive our results even further and i couldn't be prouder of the teams. >> what's happening with capacity, josh? i know it's about cost control and you're focused on profitability. some competitors have been adding capacity and ships. are you doing that? >> so, we've got about 5% capacity growth on tap for 2024. then we only have one more ship on order for 2025. i'm not really worried about

what our competitors are doing in the capacity space. i'm focused on our brands and driving more demand for the capacity that we have and deet manned has been improving incredibly well. we're focused on that. you don't need a new build to drive consumer sentiment your way. as a matter of fact, just yesterday we announced some details on celebration key, our new destination, which is going to be a game-changer for carnival cruise line, which is set to open in the second half of 2025. that will be going 18 ships in the carnival fleet will be stopping at celebration cay from eight different home ports. we're looking to leverage that just as well as we could with more capacity. >> the pricing power continues as you are seeing this stronger demand? how much room do you have? >> if you think about that 25 to 50% value gap to land, we have a tremendous amount of room to keep increasing pricing, while

still being a value to land-based alternatives. that's actually a sweet spot because we can play on both sides of that. >> so, if we do have a recession here in the u.s., josh, how do you think about the impact to the cruise industry? you sound -- you don't sound worried about demand or pricing or spending powers, and yet we do have an economy that is softening with something going into recession. >> we've been talking about that every quarter when i come on. it's going to happen sooner or later. but the fact is, we are well over 50% booked when you look out the next 12 months. we're getting 40% of on board spending made in advance. we have over 50% of guests that are repeaters, loyalists, they know what we do and they love what we do. we feel incredibly bullish about our opportunities, whether it's a recession or not. because of the value we've got. >> all right. message received, josh. thank you very much for joining us on the quarter. we appreciate it. >> take care. >> stock is down a little on the

outlook. josh weinstein, ceo of carnival. let's turn to the ipo market and a pick up of activity this september. arm and instacart going public in recent weeks at the nasdaq. is it a signal of more listings to come? joining me in pebble beach, california, for an exclusive is the ceo of nasdaq, also the chair, aden a friedman. great to see you. have to travel all the what i to california to talk to you. >> exactly. >> we have seen blockbuster debuts at the nasdaq, but the action after ipo day has stalled or lost momentum. is that a worrisome signal about more companies going public? >> first of all, we are proud of the fact we have arm, instacart and other great innovators come to market. great to see investors have demand for new issuances, ready to underwrite risk. the markets since the ipos have been a little more tumultuous. i think that's more of a macro issue more so than a company specific issue.

and as we look at going forward, we have -- are having more serious conversations with companies as they're thinking to tap the public markets. they're still a little trepidation based on the fact there is market volatility. so far this year we've won 85% of the ipos, four of the top five. i think as we go into the second half -- or the fourth quarter, really, we could see some interest companies come out but we also would expect more companies to be planning for the first half of next year. >> and even got a convert of doordash -- >> we have had three companies switch to nasdaq in the third quarter so we're really proud of that. >> what are you pitching and offering that's different? >> i think there are are a few things. first, we do a lot to help companies succeed in the public markets. it's one thing to go public. it's another to be public. we have a whole range of ir, investor relations and sustainability solutions as well as government solutions that help companies navigate the markets. that's part of the package we offer companies as we go public

and certainly when they switch for several years they get their services as part of the offering. the second is the bespoke marketing we do for our clients. we help them amplify their brand. that's part of the ipo discussion. for doordash, they have the opportunity over time to be welcomed into nasdaq 100. the nasdaq 100 is a big draw as well. >> i was looking at some of your financial statements because you've managed to grow even in this period where there haven't been a lot of ipos. it's been a sleepy period. double digit growth in the anti-crimes unit. a lot of people don't realize what you do. what is driving that business? >> we've done a lot to expand the business. we have this great core foundation as an exchange operator. over time we've said, what more impact can we have to help companies navigate the markets, to help financial institutions deal with the risk in the markets? we've become a very scaled software provider in antifinancial crime as well as in capital markets technology as we work with banks and brokers.

>> is it because crime is growing or companies are just getting it? >> i think two things. one, we're definitely growing and expanding our business and taking share from others and we're taking out some internal build from the big banks. at the same time, i think there's also the fact that fraud activity is growing. people are changing their behaviors. the banks are more concerned about it. money laundering is becoming a bigger and bigger problem for them. it's a $2 trillion issue in terms of money laundered through the financial system globally. our antifinancial crime technology is very advanced. we use cloud technology, we bring the data together, we use a.i. algorithms to root out criminal behavior. we can show the banks we have a more effective solution. more criminal behavior found than what they're using today. i think that's the winning proposition. >> so we veered away from the ipo market but there are still

some questions about what might bring it back in a more confident way. what do we need to see? >> it's a great question. and as we were going through the past year, it's been difficult for investors to have confidence in knowing what the future holds. if you cannot predict the future of a company's earnings, it's difficult to underwrite that risk. especially new issuance that doesn't have a track record. they've had an unknown cost to capital environment. that's becoming more known, which i think is why the green shoots in the i want po market are starting to come out. they have a better known cost of capital. you're seeing the fed saying, look, we might tighten a little more but we feel we're getting to a point of equilibrium. you see inflation come down so the cost of business is coming down a little bit. the big question is growth. so far, the economy has continued to grow. they're seeing there's more strength than they probably would have expected going from

zero percent interest rates to 5.5% interest rates. the consumer confidence is strong. you have to ask the question why. first of all, the u.s. is really fortunate. many of the americans have refinanced their mortgages so they have low interest rate fixed mortgages which creates an economic balance to their lives. the government has put out very large programs, infrastructure building, c.h.i.p.s. act, inflation reduction act spurring spending to the economy, to the job environment stays strong. they have confidence. when consumers have confidence, they spend. if they're spending, of course, businesses continue to thrive. if that can continue, but the question is, can it, then investors will get a lot more confident underwriting that risk even further. there are still questions whether that's sustainable. >> there are also questions whether it's technically possible to go public if we have a government shutdown. if we have a shutdown that lasts a few weeks, the s.e.c. can't process s-1s, can they? >> they go into a skeletal staff mode. that process definitely slows

down. if we have a protracted government shutdown, we will find the company is not able to get approvals from the s.e.c. that will slow down that -- at least early momentum we're seeing. i still would say, though, most companies are looking at the fourth quarter and saying maybe, but are definitely planning more for the first half of next year. if there's a government shutdown, i don't think it will be a sustainable problem. >> maybe fourth quarter next year. >> fourth quarter of this year or -- >> maybe they'll go public and sort of testing the water? >> a lot of companies are out there testing the waters right now. they're talking to us about planning. they're thinking about what would be the open windows in the fourth quarter, first or second quarter. they're trying to make sure they're planning getting their filings done, if they haven't already, all that good work. the fact is that it's still a trepidation environment so they want to come out when investors are ready for them. >> you're part of the new york fed and you talk to these companies and ceos. are you in the soft landing

camp? >> i'm in the camp that i've been empressed by the fact that the fed has navigated a very different term of environment in terms of cost of capital well. they've been able to tighten monetary policy successfully so far. at the same time, they're seeing -- they're watching the same signals everyone else is. ceo confidence, manufacturing put, all the great signals that give you a sense that the economy continues to be strong enough to withstand this increased cost of capital. >> that is the question. good to catch up with you. thank you so much. aden a friedman, ceo of nasdaq, from pebble beach. in the meantime, possible green shoots emerging in china. is now the time to add back exposure? we'll talk about that as the dow has gone red. down 44.

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news alert out of washington this morning. let's get to emily wilkins. >> hey, carl. cnbc learned the heads of eight

major banks will be headed to capitol hill to face questions from a panel of senators later this year. we've gotten a first look at this upcoming blockbuster hearing that will include the ceos of jpmorgan chase, goldman sachs, wells and others. chair brown said it was important to hear flt biggest banks. in his words, quote, hold too much power over the economy. chairman brown went on to say it was lawmakers' jobs to hold banks accountable to the workers, the customers and the american people. the hearing isn't scheduled for a while. it won't happen until december 6th. it is the third of its kind. sherrod brown has invited the heads of the u.s. largest banks to testify in front of the senate banking committee. earlier this year the banking committee passed legislation that would actually authorize the fdic to claw back compensation from senior executives that failed banks.

now, that legislation hasn't cleared the committee. we're still waiting to see if senator chuck schumer will actually bring it to the floor. but certainly sherrod brown striking a bit of a combative tone ahead of this big hearing. >> emily, it brings up the question of how much congressional work continues if, in fact, we are in the midst of a government shutdown. >> lawmakers always like to say they can walk and chew gum at the same time. the fact of the matter is that after sunday, when a shutdown does begin, the pressure begins to build on lawmakers. that can often change some political dynamics, move people in certain directions. i think it's going to be very interesting to see how the tech tonic plates in congress shift once a shutdown is in place and once americans feel the pain that results from the government not being up and running. >> coming on a week where at least one firm, goldman, talked about the prospect of maybe multiple shutdowns. we'll see. emily, thanks very much. losing some ground here. s&p trying to hold 4300 again.

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