so we're watching the markets that are actually moving to the upside. we've had five straight days of selling which has not happened this year for the s&p 500, and now we're starting to snap that streak right now with the dow up about 49 points. you do you have the vixx to the upside and commodities are mixed. there's a lot of names we're watching closely, obviously the focus we keep on washington this time with the possibility of a government shutdown. let's look here at jcpenney. now, jcpenney, of course, has been the storied stock this whole year, but over the last 48 hours quite a wild one, hitting new lows and then earlier today it was looking down about 10% before the opening bell only for jcpenney to come out and say, listen, we don't need any financing this year, we are making a lot of progress, we are having a lot of vision, and the jcpenneysales.com are double-digit growth year-over-year. so they came out with full force and turned any worries around, and now you see the stock up 5%,

this after it hit a new 13-year low of $9.52. back to you. adam: thank you very much, nicole. and now the latest on jpmorgan chase. ceo jamie dimon met with u.s. attorney general eric holder on a reported $11 billion settlement over mortgage-backed securities. we're all over this story. rich edson is reporting from washington, d.c., elizabeth macdonald is working phones here in new york, but first let's get up to speed with rich. >> reporter: good afternoon. he walked through the front entrance, slipped out the side door in a black suv. jamie dimon spent about two hours at the justice department. attorney general eric holder says he met with dimon, this following reports jpmorgan and justice are discussing an $11 billion deal in connection with abuses in mortgage-backed securities. at an unrelated press conference, holder refused to comment on the specifics of his discussions with dimon, though acknowledged the department's focus on financial crimes.

>> this is something that is a priority for this justice department, to hold accountable people who would manipulate, companies that would manipulate our financial markets for their own customers' benefit, or for the benefit of the companies. we have, i think, brought a substantial number of those kinds of cases over the past be few years -- past few year, we have matters that are under investigation. >> reporter: holder, nor dimon would comment on the settlement talks. the "wall street journal" reports the government and jpmorgan were still billions apart before this meeting, with federal and state agencies pressing jpmorgan, the bank is trying to clear as many of these potential suits as possible and agreeing to terms with the federal government, making sure it doesn't open itself to other lawsuits. adam? lori: rich, please stay with us, we want to take it over to elizabeth macdonald there in the newsroom. >> reporter: good to be with you. remember a few weeks ago talks

had fallen through between jpmorgan chase & co. the fhfa over the mortgage-backed securities from bear stearns, wamu and jpmorgan. and what happened there was a number was leaked by the government to the press that six billion was floated, the talks then broke down. the talks then restarted over a global settlement anywhere, with the bank insiders are telling us anywhere from six to eight probes here over mortgage-backed securities. now the $11 billion figure that's being talked about here would represent half of the projected profits for jpmorgan chase this fiscal year. so what we're also hearing, too, is that it wouldn't settle the other probes that jpmorgan faces on unrelated, separate probes away from mortgage-backed security issues such as libor, other issues that the bank is facing. but i'll tell you something, what is a ticking point here -- and this is key -- the bank is saying they want to settle a

global settlement with all the state attorneys general as well as justice, and they also do not want to have an admission of guilt here because they face class action suits with about $166 billion many mortgage-backed securities at stake in these separate class action suits. if they are hit with having to admit quilt here, that could open the door wider to them having to settle when bigger amounts of these class action suits. so we're going to be tracking this developing story. the other thing, too, bank insiders are saying the government is putting the wedge to them by trying to hit them with criminal charges in order to get them to settle the civil, civil, civil allegations. and so the bank is also saying, listen, we provided the government cover by buying bear stearns and picking up withdraw knew during the financial collapse. adam: and, emac, you bring up a big question. does anyone in washington address what appears to be -- we spent billions of dollars as taxpayers in this country propping up banks like jpmorgan

chase, although they would say they didn't need it. at the end of day, does anyone in congress or the department of justice talk about the fact that you could weaken jpmorgan's capital position through the exposure to lawsuits down the road? >> reporter: you know, adam, that's a discussion they've been having for a while in washington when you look at some of the capital standards during the financial crisis, the banking regulators wanting the banks to both lend more and increase their capital cushion. so this is the same issue here. you have two different interests within the federal government pulling on different ends of the bank, so there really isn't that discussion of concern about the health of the bank, you just go out and raise more capital, you're profitable, that's something the justice department looking at would simply say we are trying to simply settle civil-criminal charges here, nothing beyond that. >> let me jump in here because the stock is under pressure. what the bank needs to do is clearly disclose to wall street the dollar amount in their reserves. at one time it was thought to be $18 billion, but if they have even more probes beyond the

mortgage-backed securities probes that they have to settle, you know, the sec is probing it, you know, libor problems, you know, hiring practices in china. what the bank needs to do is say, yes, we have reserves for all of these legal and regulatory matters and that -- in order to appease wall street. the bank stock is lagging in the kbw index, jpmorgan's stock is up around 21%, so it's hanging in nicely. lori: okay, rich, one more quick question. what is the logical step here? obviously, the government and jpmorgan far on the settlement figure, what's the next step if the negotiation to get a global settlement if that's the goal? >> reporter: good question, because you'd have to bring all the different stakeholders in. this is part of the mortgage-backed securities fraud working group that the justice department's working with and other state and federal agencies. and as liz pointed out, you've got to want to clear both the state and federal issues out of this not only within the justice d., but the other entities within the government, fhfa,

also looking sec, cftc also looking. so if they can clear this in one scoop, that would phenomenal for jpmorgan chase. i think jamie dimon coming down here himself to talk with eric holder is a big step. we don't know how much ground they might have covered there or if they did reach any differences, but it's a step. it's a big step. adam: rich edson and elizabeth macdonald, thank you very much. coming up, exclusive details from charlie gasparino on all of this. charlie is on the road right now, but we're going to keep with this story. >>king news today, the u.s. treasury says it will begin a third round of sales for its general motors commons stock, one step closer to its march 2014 deadline. as of september, u.s. taxpayers still own 7.3% of the company. shares of gm are taking some losses on that news. also blackberry is out at brick and mortar t-mobile stores.

t-mobile will continue to sell blackberry devices online but will not stock them, this as blackberry officially puts itself up for sale. verizon and at&t will continue to carry blackberries in their stores. lori: house speaker john boehner urging republicans to be flexible in order to avoid a government shutdown, but can he keep his caucus together among the demands to defund obamacare? if he can't, my next guest says, quote, all hell could break loose. brad blakeman is a former senior adviser to president bush, and we're so pleased he's made time to join us on the program. brad, thank you again. >> thank you. lori: the development of the moment here, yet another delay in obamacare. politico reporting that this time they're postponing online enrollment in some of the small business exchanges scheduled to open october 1st. the white house is denying this because really the delay looks like it's just to enroll online.

having said all that, though, this has to be a benefit for the republicans in their case and how they feel about obamacare even if they can't defund it, at least to delay it. where do we stand right now? >> absolutely. and i think you're going to see the next ramp-up of the defunding of obamacare, and we start talking about the concession that we're asking the president to do in a debt ceiling and the continuing resolution, and that is letting the individuals off the hook, mr. president, like you did the businesses. i think it's unfair for individuals to have that kind of obligation when businesses get a pass for a year, and in addition when the president admits that obamacare is not ready for prime time. now having said that, we have the immediate crisis of the continuing resolution on the budget that now looks like it's only going to be kicked down the road to october 17th, it may be married up with the debt increase legislation that needs to be passed. so we have a bump in the road, and there's a huge pothole coming. lori: so it's interesting, right, because republicans who were critical of senator cruz and his faux filibuster, if you

will, in terms of defunding obamacare as part of the continuing resolution are now going on with the debt ceiling debate. why not threaten default? and so now they're almost jumping on the bandwagon. is that going to be effective? >> to a point, because the drama keeps building. but as we've seen, so far our government has been the boy who cried wolf. we've always gone to that precipice of crisis, and then everybody's come to their senses, and there has not been a default. i think if there is a default, i think it'll catch the markets flat because they're expecting a resolution at the midnight hour like they've excepted and received time and time again. but if the government shuts down, if we default fault, i think then d default, i think the markets are going to go crazy because of the uncertainty in divided government as to how long it'll be. lori: so bernanke may have been on to something when he told us one of the reasons he didn't go ahead and taper was because of this concern over this once again spending battle.

do you agree with we bernanke's move in that respect? >> i do. and i think these are all self-created crises by the people we put in government who are supposed to prevent bad things from happening, not make things happen that cause the markets to go crazy. so, look, the ball is in the courts of republicans and democrats. we live in a system of divided government. there must be compromise. for republicans, our battle comes next year in 2014. feel-good candidates have good policy and get the numbers where then we can effectuate the kind of policy we're espousing. lori: so let me just get your last word on whether or not we will see a government shutdown. >> no. we will not see a government shutdown, i think we'll see what we've seen 30 times, it'll go right to the midnight hour. right now a continuing resolution that'll kick the can down the road to october 17th, and then i think both the continuing resolution and the debt ceiling will be tackled together. lori: brad blakeman, many thanks. adam: moving on five years since

bernie madoff's ponzi scheme unraveled, today there was an arrest from inside madoff'ser circle. lori: the marijuana commercial that would be a first. adam: but first, looking for a 6.5% return on your money in the next four months? why your best bet just may be the forever stamp. the united states postal service looking to raise prices again. ♪ measure. ♪ had been. ♪ [ male announcer ] imagine this cute blob is metamucil.

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lori: and as we do every 15 minutes, let's check the markets. nicole petallides is on the floor of the new york stock exchange. hi, nicole. you're watching facebook top $50 a share. >> reporter: such a big deal, right? when you saw facebook last year for the ipo, that $38 ipo and it went up to 45, then it went down to $18, and everybody said what happened to facebook? they were all left wondering if this thing would ever recover, in the meantime, it's up 90% this year. hit a new high today of $50.66 a share. the majority of analysts, 80% of the brokers now have a buy waiting and all those worries

about mobile ad revenue, that makes up 41% of their core numbers. there was a little bit of caution out of bernstein today, but they keep a price target that is pretty good. back to you. lori: thanks, nicole. adam: such a deal. speaking of deals, the u.s. postal service is calling for a three-cent hike in first class stamp, but it may not be enough. the postmaster general will go before congress to try and help solve its fiscal problems. peter barnes is live from washington, d.c. with more for us. peter, postal service doesn't have a good track record, do they? >> reporter: no, not in the last few years, adam. in fact, looking at its seventh year in a row of red ink, of losses, and that's why postmaster general patrick donahoe was up on capitol hill this morning pushing hard for a reform of his agency once again because of its deteriorating finances. the postal service yesterday proposed another increase in the price of a first class stamp to 49 cents after it increased the cost by a penny just this past

january to 46 cents. it says that the new increase would take effect this coming january and would raise $2 billion a year in new revenues. so far this fiscal year the postal service has lost $3.9 billion. it lost $15.9 billion in 2012. the biggest problem for the service is hefty payments to its retiree health care plan. in fact, the postal service will again miss an annual payment to that plan, $5.6 billion due on monday. donahoe said congress must pass needed reforms. >> if given flexibility and authority to adapt in a changing world, it can meet all of these goals without becoming a burden to the american taxpayer. the choice is simple; greater flexibility and authority now or massive taxpayer exposure and service degradation later. >> reporter: donahoe has previously proposed ending

saturday delivery and closing many rural post offices to help save money, but under pressure from congress and customers, he backed down. but committees in the senate and the house are considering legislation that would limit saturday mail delivery as well as reform the way the postal service funds its retiree benefits, and the obama administration has proposed these kinds of reforms as well. adam? adam: peter barnes, thank you very much. we're going to switch gears, want to bring you up-to-date with the investigation into the ponzi scheme of bernie madoff, and this morning there was an arrest. madoff's longtime accountant was arrested outside his lawyer's office in midtown manhattan and will appear later in court. lawyers tell fox business network, and this is a quote: 77-year-old accountant is an innocent victim of bernie madoff. he looks forward to clearing his good name at trial. koenigsburg prepared taxes for the madoff family foundation and was also a member of madoff's

inner circle for more than 25 years, also an investor in his london office, so it's going to be interesting to see what happens. we have a trial start anything october, several of the employees of the firm as well as the deadline for prosecutors to bring charges comes on the fifth anniversary. they've got to get them in. lori: what a saga. well, we've told you about the hedge fund and firms buying up homes just to flip them for profit. why now that's coming to a screeching halt. anthony sanders on the end of the home gold rush. adam: and later, the classic joke that wasn't too funny for one bartender. the real story of a bear walking into the bar. you don't know how this one ends. ♪ ♪

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>> 23 minutes past the hour, hi, everybody, i'm jamie colby. we have some new pictures to show you of the mall in kenya. there are floors blown out, some of them presumably by the authorities when they set up explosives on their way in. the death toll stands at 67, expected to go higher. meanwhile, divers have found human remains near the wreck of the costa concordia cruise ship. there were two passengers onboard that ship that were never found. the search resumed after the ship was brought upright last

week. 32 people died when the ship capsized in january of last year. and newark mayor and new jersey senatorial candidate cory booker the latest politician to be caught up in an online messaging scandal. he's been exchanging flirtatious messages online with a stripper. booker's campaign is down playing the scandal saying the mayor talks to people from all walks of life on twitter. and those are your news headlines on the fox business network. we cover it all. back to you, adam. a ad jamie colby, thank you very much. we've been talking about a housing gold rush for a lot of investors, but is that coming to an end? private equity firms and hedge funds were once buying homes en masse, but it seems ttose days are over. george mason professor of finance anthony mason is here to tell us why, and we appreciate your being back with us. we've seen cash purchases in large amounts for homes in a lot of hot cities like los angeles, miami, in fact, miami leads the

nation for the percentage of homes that are all cash deals. was that an indication of the rush, and were those purchases being done by hedge funds, or were there individuals doing that? >> well, the gold rush is, actually, a boon to investors both foreign and domestic. but we saw a lot of companies like carrington, chris williams' company, and we saw blackrock, we saw a lot of them flowing into california and arizona along with investors from overseas. now, what we've seen recently is that that's curtailed. now that prices down there are starting to boom up, we've seen what case shiller did in those areas that have gone way up, inventories are still pretty thin, so we're seeing the herd of investors moving elsewhere like to florida and even detroit. adam: okay. well, lethat. you've got, for instance, blackrock, i think, has over 16,000 properties, they're trying to create a business model in which they'll spin that off as a company that's in the

rental business, but the smaller players are now trying to sell -- they're done with this. they want to take their profits and go home. as these smaller players, what was it, oak tree capital management, carrington mortgage, when they start dumping en masse these homes they bought at very, very cheap, 40% off fees, isn't that going to depress prices in a lot of cities? >> well, i think both carrington and oak tree are going to actually, you know, have rather large, substantial profits from this. but on the other hand, yes. it signals a flight of capital going from california and arizona, nevada and other states. and so we should see those areas suffer a little bit because of this. adam: let's shift gears, let's talk about the fha facing a $943 million shortfall. when are they going to go knocking on the door of congress to say bail us out the way you bailed out fannie and freddie? >> well, they've been in a terrible fiscal position for, god, ever since 2009. they're serious delinquency

rates are three times that of fannie may and freddie mac, and look what happened to them, got put into conservatorship back in '08. adam: great times. i was there when they did it. >> so what are the odds fha could escape unscathed? the answer is zero. they've frantically tried raising insurance premiums, that hasn't helped. well, it's helped, but that shows you what deep trouble they're in. adam: so if they're in trouble and we see the hedge funds are going to start selling off some of the properties, what's going to happen to people that want to sell their homes and buy homes? fha's in trouble, so first-time home buyers are going to have more trouble getting a mortgage? what does the future hold? >> well, that's why i've never been overly optimistic about this big housing revival. it was an investor revival, not a traditional household revival. this could actually put really downward -- and if investors are pulling out, the problem is there's no back fill. mortgage purchase applications are still stuck at 1996 levels. we're just not seeing the

recovery from the consumer side. adam: all right. and we appreciate your being with us. there's so much more to discuss because housing effects all of us in so many ways. whether you own or not, you still bailed out -- >> absolutely. adam: anthony sanders, thanks so much. our charlie gasparino with some exclusive details as attorney general eric holder meets with jamie dimon. lori: and for 50 some years alcoa has been the official kickoff of the earnings season, but after the dow shakeup, which company should you now be watching? adam: it's that season, businesses are taking note as employees prep for the flu. dr. marc siegel will tell us just how bad this year's flu season could be. ♪ ♪ (vo) you are a business pro.

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lori: call it a quiet rally perhaps today. let's head back down to the floor of the new york stock exchange to check in with nicole petallides. and nicole you're watching hertz. what's the story? >> it is to the downside today, down dramatically. you can see a loss of about 13.5% at 22.28. the story today is that they're having to lower the guidance going forward because volumes of what they have been seeing today at the airports where people rent at airports, well, it hasn't just quite met their standards and their participation. a couple of things they had higher pricing which offset partially of the lower volume. big picture it will hit numbers going forward. it is up almost 90% in the last year. it has been a great performer but under pressure today. back to you. adam: thank you, nicole. first earnings report since joining the dow 30 nike will release the first quarter 2013 earnings after the bell leaving

long-time earnings season bellwether alcoa in the dust. so which company will investor actually turn to as the new benchmark kicking off earnings season? we want to bring in howard silverblatt of s&p dow jones industries. it is kind of confusing. you need a scorecard, don't you? >> you do. there are three issues that can lead it off. alcoa is traditional favorite and people will look to that however you said nike now is in the dow and they are the first one even though they were more fiscal. from investor side point it really starts friday with jpmorgan. i'm sorry today is jpmorgan actually. adam: right. >> they're the first major issue to report, then wells fargo. that will really start off the season. by tuesday you have citibank as well as j&j, coke, intel after the close and by month end you have when doing trick-or-treating you will have 70% of the earnings. lori: does the timing really matter, howard, if in terms it is official or under official

kickoff for earnings season? nike, obviously reporting performance numbers before joining the dow. >> right. lori: does it really matter what the timing in terms of numbers and what bottom line is? >> it is more psychological on there. just the mechanics that, that nike will be considered in the s&p, i'm sorry, within the dow, and for the september fiscal time period, because of the way the august fiscals go. it is more psychological. when we start looking into it. it gives us some kind of indication going forward. but again, we'll be at tuesday when citi comes in and financial are one of the keys to this quarter. no doubt about it. they and financial are the big payers but the financials are the key in this quarter. >> if the financials are the key, what, i mean we've had 54 years with alcoa leading us off. consumer retail, i mean consumer discretionary, and companies like nike, seems to me nike is just as important especially as we get ready to go towards the

holiday season. >> nike is definitely important. it is a consumer. and bellwether also how spending money, how consumers are going. you have how they're made up. most of the manufacturing abroad, china, indonesia, and vietnam arrest well as the fact that they get a lot from emerging countries and china that will be one of the big keys today on the earnings. how much is coming from the emerging markets. how much is coming from china. that is where the growth is expected to be. and much more international on there. and materials is, alcoa is much smaller segment of the economy. not a lot of aluminum companies out there. adam: right. lori: i think i was only one sad to see alcoa get kicked out of dow jones industrial average but i get why especially since nike is looking at third consecutive quarter of record earnings. it is a small bump up but a record nonetheless. what could this do to the dow about the valuation? >> we adjust by the mechanics in

there will make a difference especially with goldman sachs which is much higher as well as nike. the prices are much higher. they will have more of an impact. the growth rate actually took a tick down because of higher cap issues. it is harder for them to grow but in general the s&p and the dow do correlate together over time, but short-terp, they definitely get out of whack. and that is a traders -- adam: you told us we'll have volatility. i think in this environment right now nobody wants any volatility. >> you will have volatility in there. there is so much unknown. outside of all conditions we have in washington and the fed. companies themselves are concerned. you saw hertz this morning. you went through the decline. that talks to how much people may travel or spending over the holiday season. the fourth quarter is the big item. third quarter we're hoping to be 2% increase which will be a record. we won't be happy with the growth but a new record. fourth quarter is supposed to be a big improvement. that will come down to the

consumer. lori: getting back to the index, is there a formula, i know there's a formula that you use but how many tweaks do various issues get when you determine what weighting each one will have? >> weighting in the dow is very simple and very easy. you add up the issues okay. let's say the price, add them up, divide by about .15, that is the dow. do the earnings, do the dividends e it's a very simple formula. it is an average, compared to the s&p 500 where you have shares, index shares, float adjustment. lori: how do you determine when to shake it up to do the rebalancings? >> on the membership, the membership is always under review at any point in time with all the indices and can happen when there is event-driven, something causes it, a company merged or going out, or it could be a situation where you review something and you decide that these issues are not as reflective of where you want your indice to be today. that these reflect more, nike and goldman sachs makes more sense within this kind of a

context for this type of indice. adam: all right. howard silverblatt, great to have you here to explain some of this we'll be watching nike later today. keep it right here on fox business for complete coverage of nike's earnings on "after the bell" with liz claman and david asman, 4:00 p.m. eastern, new york time. lori: a deal for jpmorgan. charlie gasparino's exclusive reporting on jpmorgan's jamie dimon and his big trip to washington today. he met with attorney general eric holder. >> what do you think they talked about? the wife, the kids? a billion dollars? quick look at the 10-year yield. we'll be right back. ♪

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from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? >> i'm cheryl casone with your fox business brief. the average rate for a 30-year fixed mortgage dropped to a two-month low of 4.32% that is down from 4.5% last week, this according to freddie mac. it was just last month the average 30-year fixed-rate hit a two-year high of 4.58%. sales of existing homes dropped for the 30 straight month. national association of realtors index fell by 1.6% in august. the july rate was revised lower to 1.4%. the u.s. economy growing at 2.5%. annual rate in the second quarter the commerce department says. its final look at economic growth in the spring was unchanged from last month's estimate. economists were expecting 2.6%. that is it from the fox business

network. the dow is higher by 45 minutes. we're always giving you the power to prosper.

lori: some good news here. vaccination rates on the rise for the flu. the cdc still not satisfied with last season's 45% rate. today encouraging americans to bet vaccinated for the flu asap. joining us now is fox news's dr. marc siegel to discuss what is in store for us in the coming months. dr. siegel, thank you for joining us. what do you expect for the flu? will it be a bad season? >> lori, last year's flu season came very early and it was particularly bad and deadly, with 161 children killed, the highest number of elderly hospitalized since these regards began being kept almost a decade ago. this year, the national foundation for infectious

diseases is trying to stay ahead of the flu season. it's launching a campaign for vaccination. >> the vaccine that works is the vaccine that's delivered. i would like to paraphrase volatire, that old french philosopher, said waiting for perfection is the greatest enemy of the current good. >> vaccination rates are reaching unprecedented levels, the highest ever among children. of 57% last year. half of pregnant women are not getting their flu shots but numbers still need to be higher, lori. you may be young and healthy but flu can still get you. the fewer people that have it, the fewer who will get the flu. it's a concept we call herd immunity. >> you need to get vaccinated before you're exploded to -- exposed to innow wednesday is a for the vaccine to work. the first cough and fever is the not first time to think about influenza vaccination. >> the nfid is emphasizing need for health care workers like me to be vaccinated in order to

protect our patients. the percentage last year was up to keep in mind over 90% is ideal to have effect. new vaccine options are available this year. a stronger one for the elderly, one which covers more strains of the flu and one for those out there weeing allergies. lori? lori: technology is just chugging right along. thank you, dr. marc siegel. >> absolutely. adam: something else chugging along the issue with doj and jpmorgan chase. charlie gasparino has been all over the developments and jpmorgan, from the start he joins us on the telephone. he is on the latest what is negotiated what is on the table and whether a settlement could be finalized. charlie? >> i think the settlement will be finalized. if you look at that list of people that from jpmorgan that attended the meeting today with attorney general eric holder, you know, it is the top, it's the top of the top over there at jpmorgan. jamie dimon, ceo, cutler the general counsel. a guy named raj cohen, a super

lawyer from sullivan & cromwell. there are major issues affected banks for last 25, 30 years, cohen has been in the middle of it. they retained sullivan & cromwell to keep this thing moving along. my guess when the guys meet something is going to happen. i don't know timing. i spoke with some people at jpmorgan earlier today. they were sort of doubtful that, you know, would be some sort of a settlement here with this, with this, you know, irregularities. a lot of it inherited from companies that jpmorgan bought including bear stearns. adam: right. >> kind of an interesting little factoid. raj cohen was the lawyer i believe for bear stearns. when he was having its problems. he helped facilitate the deal with jpmorgan. adam: charlie? >> el tell them a lot about, you know what are the latest issues. the whole game here is essentially to limit the sort of damage to jpmorgan in terms of what they might have to admit to.

adam: charlie? >> but i'll tell you guys, saying this before, i toss it back to you twice, you know, there's till still a lost work to be done in terms of regulatory issues -- adam: of course theee is lot of work to be done but doj going after them for such a high amount, one you go after the shareholders when you do that. is it fair to go after them when it is parksly with the bear stearns acquisition and part of the stuff they got from wamu. >> i'm sure they're going to argue that and they will argue that when they bought bear stearns and particularly bear stearns, they met with, with the sec at the time. it was run by cross cox. i think there was a linda thompson was head of enforcement. adam: uh-huh. >> they basically gave some sort of a conditional waiver to, to bear stearns, to, jpmorgan. they, there was some sort of an agreement. i, language when i finally agreement was not all that binding but there was some sort

of a agreement that the justice department and fed were taking into account any irregularities that jpmorgan inherited from bear. jpmorgan didn't really want to buy it. they were asked to buy it. listen, they got a pretty good firm strip out the bad assets that caused bear's demise. they were in big, jamie dimon -- before doing it. they will argue that. adam: right. >> listen, as i said a million times on the air, this is more about politics i believe. jamie dimon is a staunch critic of dodd-frank and he is now paying the price. @here is nobody, call me a conspiracy theorist but there is nobody i know on wall street and inside that bank that thinks this is nothing but a political attack or at least a -- [inaudible] the administration can deny it but they will have a hard time convincing people some of this, some of it, i'm not saying all of it but a good degree of it is politically motivated. adam: charlie gasparino for us. have a safe trip, charlie.

>> okay. lori: direct your attention to the markets here. jason weisberg from the floor of the new york stock exchange. jason, our earlier gains are fading now because investors are watching washington and concern over this latest spending battle. >> yeah, unfortunately it is like a broken record. i think we did this a little while back and then i think people are just afraid we'll be playing the kicking the can down the road again and i think that is what investors are telling you right now. i've spoken to a few people today and a lot of them are closing their books for the year. they have great gains. no reason to leave risk on the table certainly in the hands of people in washington. lori: will we tread along like this for the balance of the year, is that what you're suggesting jason? because of headwinds of federal reserve you have to consider washington and economy. we learned 2.5%, that is the best we can do on the gdp. >> well i think until they get something, some form of resolution in washington i think there will be some sideline action. you know we'll just bounce back and forth in a very tight range. i think we're definitely

range-bound. once they get that resolved i think we'll push to higher levels. by the way at this point in the year it is okay for the market to take a pause. volumes are light and reflecting people's wait-and-see attitude what will happen in washington. lori: jason weisberg, thank you so much. adam: the nfl field may look greener than ever before at this year's super bowl. the marijuana ad could be the first-of-its-kind during the big game. lori: one bourbon and one scotch and one bear? the unbelievable story that played out in a bar in alaska. a bar in alaska that i've been to. we have video to prove it. adam: you worked in juneau. ♪ ♪ nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar

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adam: small businesses are getting a chance to go prime time in this year's super bowl. it is all the buzz into its contests narrowed down to 20 contestants. we had entrepreneur bill rancic on the show last month to discuss it. >> we've got a major advertising agency who have done a lot of super bowl commercials in the past. they will produce the commercial and it will be an amazing opportunity for what small business owner. adam: what bill didn't know, that lucky winner may be a pro-marijuana advocacy group. diane macedo joins us with more. >> that's right, adam. this may be the year we see a pro-pot ad in the super bowl. not only has the national organization for the reform of marijuana laws signed up for the big game contest, it was actually number one vote-getter in the first round. so now the question is, what happens if they win? well a normal spokesman told me the organization feels pleased and vindicated by results so far, going forward, we hope

intuit will give us same fair chance of anyone who enters the contest. interesting enough the intuit removed popularity after normal came in as top vote-getter. that is not clear if it was a ploy to draw less attention to the organization or if that was the plan for round two all along. intuit didn't respond to the request for comment. it is not just up to intuit. the commercial would have to be approved by our sister company fox sports will broadcast the super bowl. a fox sports spokesman wouldn't tell me whether or not the network would definitely block the pro-marijuana ad. but he said any advertising submitted to fox is subject to broadcast standards review before it can be aired. still, he says the spokesman for normal, that the contest ad which is posted online has no pot leaves, no smoking, no bongs nothing the organization thinks would be offensive to mainstream audience. they say it would be more controversial to deny the ad

than running it. normal is the one of the 10,000 contestants still in the running the next part narrows it down to 20. lori: that is work in the company's favor. meantime have you ever heard the joke that starts, a bear walked into a bar? check this out. that is a black bear walking into the alaska hotel bar in downtown juneau. the bartender yells no, bear, get out! you can't be in there. believe it or not the bear just turned around and left. wandering bears very common especially this time of year in juneau. i know for a fact. homeowners, businesses all very aware that this can happen. this can happen in he of september -- adam: you know this bar. lori: the salmon are swimming upstream and sadly die. the bears come in to where people live and work -- adam: the takeaway from this when you lived and worked in juneau went to that establishment for a drink and there were a lot of bears and you had to have them leave the bar?

lori: it is usual thing in juneau, alaska. they're used to seeing bears walking up and down the streets. it is all very monitored. adam: what is the bar like? you were there quite a bit, weren't you? lori: a lot of creative people. music is fantastic in alaska. a lot of great live music. adam: government shutdown looking more likely than ever with five days to bo. judge andrew napolitano looks what if anything can stop it. he is next with tracy byrnes and ashley webster on the fox business network. ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... 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.

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ashley: welcome back, everybody, i'm ashley webster. tracy: i'm tracy byrnes. with two hours to go stocks off their highs but still on track to break a five-day losing streak which is the longest this year of the we've got good news in the job market and that's helping. we have the biggest movers coming up. ashley: summoned to the attorney general's office oops. jpmorgan chair jamie dimon talks

face-to-face with eric holder about how many billions of dollars it will take to settle the government's so many probes into the bank. we'll have the story ahead. tracy: while the government shutdown looms closer and closer, fox news judge andrew napolitano is a way fired up about this he actually went down to d.c. he joins us from there this hour. ashley: sort them out, judge. first stocks looking to snap the longest losing streak of the year. so far, so good thanks to some upbeat economic data. we're covering all the market action for you. nicole petallides, as always on the floor of the new york stock exchange. sandra smith in the pits of the cme. nicole, let's begin with you. while we are posting gains we're certainly off the highs of the day. >> right. you noted the highs of the day. the high of the day was 15,0037. we're about -- 15,387. we're about if i have teen points off the high. after five straight days of selling will we snap the losing

streak? everybody has a keen on what is going on in washington and whether we'll see a government shutdown. that brings jitters on wall street. looking at debt ratings of the united states of america. that is something else top. dow jones, microsoft and disney. and we got economic news pertaining to jobless claims and the like. i want to get to a mover. that is eli lilly. tough news pertaining to breast cancer. one of their drugs they have been trying out they had disappointing results from the study. now they will only use the drug for stomach cancer exclusively as opposed to breast cancer. we saw the stock dropped though it recovered some of the earlier losses we saw in the day. back to you. ashley: nicole, thanks very much. tracy: which go over to sandra now because she is watching the bond market yields edging higher today. of course thanks to the fed's no taper. but they actually pulled back from the recent highs. right, sandra? >> yaw but the bond market is interesting one right now.

we saw the 10-year yield peak above 3% leading up to the fed's announcement last wednesday. we have been in serious decline. had in fact we're on pace for the, bond prices to be up 11 out of the past 12 trading days. that is pushing the yield on the 10-year lower for 11 out of the past 12 trading days. right now the yield on the 10-year is at 2.65%. hsbc's global strategist came out with a note and said, that's nothing. they're predicting the yield on the 10-year will fall to 2.1% in just the next 12 months. they're predicting a rather rapid decline here. the reason for this is because the fed didn't taper. they continue to the bond buying program that boosts bond prices and lowering yields. they're talking about a significant decline. if you throw up a full screen of the 10-year, since last wednesday we've seen a very steady, sharp drop in those yields. by the way all of these analysts that are lowering their forecasts for yield on the

10-year, they're noting the budget battle in washington. that sort of gridlock is also leading to a rapid decline in yields. andrew wilkinson at miller tabak. is not calling for drop to 2.1. he is calling for yield drop to 2.5%. barclays lowered their forecast to 2.85% by the end of the year. if you're looking for a way to place this, hsbc says the times we see rapid declines in yields we see the u.s. dollar depreciate. play that in the etf perhaps. another thing to look at would be commodities. that tends to be a boon for commodities which many are up. oil in particular they say would be a buy on that, guys. back to you. tracy: good job, sandra smith. thank you, girl. >> thank you. ashley: well our next guest says the markets will look past any possible government shutdown and the economy will grow through the rest of the year. all very optimistic. joining me riverfront investment group cio, michael jones. michael, i like the way you think. what are you pacing all of this

on? >> well, yeah, the shutdown of the government as much as washington thinks that everything begins and ends inside the beltway that's actually not going to be that materially an event except insofar it raises fears of a default and a failure to raise the debt ceiling. it is the debt sealing that matters, not the government shutdown. ashley: all right, let's talk about the fed. we can talk about the budget battle and everything that is going on in washington you know, ad nauseum. as you say life goes on. the markets appear to be trying to snap this five-day losing streak although we seem to be loseing a lot of momentum. where do the markets go in your mind? do we still have room to the upside? >> sure. let's make one really important assumption. that the house republicans don't have a death wish and they will compromise and president obama doesn't want to go down in history as the president who defaulted on the u.s. debt. so they both have reasons for compromise.

let's assume for the moment that they do or make an agreement on raising the debt ceiling. with that as a backdrop, look what happened to jobless claims this morning. you have a real strengthening in the economy and there's a good reason for that. every quarter this year, the economy has had to absorb some bad news out of washington, whether it was big tax increase first quarter, big spending cuts in the second quarter and then obamacare in the third quarter. the fourth quarter is the first time this year if we can get the budget behind us where the economy gets to stand on its own without washington trying to push it down. we think we could accelerate past 3%. that's going to bring on a nice rally in the equity markets. ashley: that said you believe that europe is the most attractive place to invest followed by japan an then high volatility u.s. stocks. what do you like about europe? we haven't had all those dire headlines for some time now but i don't think it is exactly on the robust level, let's put it

that way? >> the main thing europe has going for it is valuation. the u.s. is rapidly approaching fair value on our long-term price matters framework whereas europe is still about 20, 25% undervalued. so your worst-case scenario in europe they're right now priced for a recession. no surprise, they're in a recession. your worse case they stay in recession and get, six, 7, 8% returns what you get similar in the u.s. your best case they emerge from recession and you have same kind of acceleration off depressed valuations you've enjoyed in the u.s. over the last two years. that is our scenario for europe. ashley: interesting. let's bring it back to the u.s. which sectors in particular do you like? >> you mentioned we like the high volatility, high beta sector. materials, consumer discretionary, some of the more volatile parts of the energy market and most importantly, cyclical industrials. and the reason for that is simple. where you find undervalued equities is where you find

people are afraid. people have been very comfortable buying the stable, consumer staples and dividend oriented utilities. what is more neglected is high volatility, morris can i parts of the market. if the economy accelerates as we anticipate, those are where the undervalued stocks are and we think they're going to catch up to the rest of the market. ashley: you know housing is such a big part of this economy and although certainly it has been recovering, we are seeing some mixed data, perhaps a sign that it is slowing down again as we've seen these interest rates move up. are you concerned that housing or a downturn in housing could really hurt the economic recovery? >> there's no doubt that housing would be a real headwind, if we saw interest rates rise another 150, 200 basis points. we see another 100 basis points easily in the 10-year as the fed tapers and we think they will taper in the fourth quarter if we get the acceleration we're looking for but that still leaves housing at near-record levels of affordability.

you would expect to see housing slow down given the interest rate increases we've seen. people have been trained when rates go up, let's wait and see if they come back down. but you've seen the mba data really take a pop in just the small decrease in interest rates we've seen in the last week. so i still think the underlying demand is there. people are just playing games with interest rates, trying to see if they can get a better deal. ashley: very good. lots of information. michael jones. thanks so much. >> my pleasure. ashley: there you go. tracy: all right. >> also says avoid emerging markets by the way. we have others that say go to them. go into them. tracy: all so confusing some days. the dow is up 17 points. that's not confusing. how many billions will it take to get the government off jpmorgan's back? jamie dimon hoping for answers in a closed-door meeting with the attorney general. our liz macdonald all over the story. ashley: keeping the government in business next week, fox

news's judge napolitano weighs in next. he is trying to sort them out there. take a look at oil. sliding for some time and continues to do that but only marginally. we'll be right back. ♪

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with unlimited double miles from the capital one venture card. you're the world's best teacher. this is so unexpected. what's in your wallet? tracy: ah to be a fly on the wall in this meeting. jpmorgan chairman jamie dimon talking directly with attorney general eric holder at the justice department today over a slew of investigations against the company and what it is going to take to settle them all and we have the bottom line and bottom number with liz macdonald. >> the bottom number we should talk about is 7 billion. that is the cash part of this $11 billion figure being you talked about. $7 billion in cash is the what government is looking to get out of jpmorgan chase. 4 billion could be future from the mortgages down the road like interest write-downs or mortgage relief. we have even more mortgage relief out of the bank for you, the borrower. so it is political right now.

what we're also hearing according to d.c. bureau, that jamie dimon met with eric holder and top people there also from the sec and, and also jamie dimon went with stephen cutler, who is the general counsel for jpmorgan chase and raj cohen from sullivan & cromwell. the thing is this is all in realm of a putback fight between fannie and freddie and their overseer fhfa. $200 billion in securities that fannie and freddie had on the balance sheet. they want fannie and freddie take the bad, rotten securities off the balance sheet and get money out of the banks for them. jamie dimon and his squad is saying we want to settle everything. which want eric schneiderman, new york attorney general who lead's the white house task force on mortgage-backed securities fraud and all that we want him off our back. we want california off our back. we want pennsylvania off our back. this doesn't settle all the probes. mortgage related security probes we're talking about here. here is the sticking point this

is so key to this story. jamie dimon does not want the bank to admit to wrongdoing. non-admission of guilt anywhere in this settlement, any settlement with the department of justice because it would open the door wider to the class-action suits it still faces. $166 billion in mortgage-backed securities still at stake in those class-action suits that the bank has yell to settle. we're talking about a lot of money that the company is telling fox business that is at stake here because they're trying to protect their shareholders. that is what we're hearing from insiders at bank. they feel -- ashley: amount of money if you think about it could be at stake because of those class-action suits for jpmorgan if they do not admit any wrongdoing, so they don't open themselves up to that, it is actually a way out of this mess while getting all of these investigations off of their back? >> yeah, that's right. again, the number you want to look at is 7 billion. we're hearing the settlement could come in days. they want to look like victory on both side, both for the bank and for the administration.

tracy: dennis kneale made the point yesterday, so interesting, jpmorgan loses money and they have to pay more for the government. where is the $7 billion coming up at end of the day. inside the government coffers. >> insiders tell me they gave the government cover r cover when they picked up bear stearns and washington mutual. they picked up tax break with washington mutual, losses applied against profits. they want to put this part to rest. they still have probes over libor and other probes. tracy: thhnk you, girl. ashley: thank you, elizabeth. it is quarter past the hour. time to get a check on these markets again. let's go down to nicole petallides down on the nyse. nicole, looking at a couple of big gainers today. >> right. i'm looking at a name that is at a low and a high. i will start off, i see wall street winners. i was going to do jcpenney here for you but let's take a look because that has been back and forth. be careful to call it a big winner. here's the thing. earlier today it was down 10% in

the premarket. right now it is up 3%, at the moment off earlier highs of the day, and this week it is down nearly 20%. the question is, what is true and what is not? we heard jcpenney ceo talking about the fact they don't need to raise cash. that they have great terms with their suppliers and such. yet at the same time, we're starting to hear that some of the vendors, though they're supportive, there are still some worries about whether or not cit and others are looking closely about feeding jcpenney. that is something we'll watch. and they tried to raise money and it didn't go well for them and that's why they're saying they are not raising money. we'll see. how about facebook, $50.60 was all-time record high today. analysts upgrade. buy ratings many which have $55 targets, 65-dollar targets. mobile revenue helping facebook along up 1 1/2%. ashley: that is remarkable

story. that nicole, thanks so much. we'll be back to you in 15 minutes. tracy: four days and counting until the government actually shuts down. is it too late? what are they doing? fox news judge andrew napolitano is down there trying to figure it all out. we'll get some answers from him next. ashley: they should be shaking in their boots with the judge on them. tracy: i know. ashley: party people, listen up, a new college is topping the list for the best party school. i'm sure parents are thrilled. details are ahead. first look how the u.s. dollar is moving right now. this pretty much tells the story. the dollar stronger. all of these currencies moving lower, including the euro and the pound. we'll be right back. nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and miions

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>> it is 21 minutes past the hour right now. hi, everybody, i'm jamie colby. this is the fox news minute. the u.s. postal service is asking for permission to raise the cost of a first-class stamp. they want three more cents that will raise it to 49. postmaster general patrick donahoe says his agency is in the midst of a financial crisis. the post office lost $16 billion this year. they're expected to lose an additional 6 billion this year. meanwhile boeing announced that the engineers successfully modified a retired u.s. f-16

fighter to fly as unmanned drone. the modified jet is called the qf-16. it will be used by supersonic target practice by the air force. >> national foundation for infectious disease wants you to know it is time to start getting vaccinated for the upcoming flu season. the organization unveiling a on online mapping stool that will be used to track the flu. it is recommended that everybody above the age of 16 months be vaccinated. roll up the sleeves. that is the latest on fox business network. get your shot, ashley. ashley: i get keys system i'm a complete coward. >> i will hold your hand. ashley: hay hey, i will hold you to that. jamie, thank you very much. the clock is round running out on congress for an agreement to keep running the federal government past october 1st, otherwise known as tuesday. rich edson from washington, d.c. with the latest on all this mess. rich? >> this one will be close. the senate will likely pass a

bill to fund the government without a shutdown and without a provision to defund the president's health care law. all the house has to do is pass the funding bill and government would force a shut down. if the house would pass a bill fund the government and with no other cuts or provisions, house speaker john boehner says he didn't see that happen. it appears republicans will take it up to the tuesday deadline with policy on funding the government with little indication neither side is willing to back down. >> we have no interest in seeing a government shutdown but we've got to address the spending problems we have in this town. >> send us a clean cr, a clean debt ceiling. that is the path forward there is no need for conversations. >> even though they have yet to solve the government shutdown, house republicans are already moving on to their debt ceiling plan as first reported by fox business. includes a one year obamacare delay, tax reform, approval of the keystone pipeline and other

spending and regulatory proposals that would extend the debt ceiling until 2014, december 31st. back to you. ashley: oh, boy, rich edson keeping up with the latest developments. thanks so much. tracy: we have to talk more about this. if congress fails to reach a deal and no math to avoiding a government shutdown, what happens next? fox news senior judicial analyst drove all the way down there, judge andrew napolitano, flexing italians muscles to figure out what is heck is going on. honestly, what are they doing, judge? >> well they're actually engaged in a lot of political games manship as you know. many republicans want to fund the government and want too give government to fund the government because they believe in big government republican style just like democrats believe in big government democratic style. there is strong cohesive core in the house and strong but wally

smaller core in the senate that believes the time for borrowing has to stop. right now the federal debt is at $16.7 trillion. federal revenue is 2.5 trillion. of the 2.5 trillion, one trillion goes to paying the debt service. if they keep borrowing and borrowing and borrowing we'll reach a point where all the revenue comes in will just go to keeping debt service but next tuesday is about more than just borrowing because on next tuesday the government doesn't have the authority to spend any money whatsoever except debt service, social security and pay for the military. everything else has to stop because there is no budget. there is not been a budget in the five years of barack obama been in the white house. tracy: but what's the endgame here? because this is day ja view all over again, right? >> yes, yes. the reason it's day ja view all over again as our fellow italian-american from new jersey yogi berra once side, i know you

know that, is because, no large enough a group, republicans, democrats, liberals, conservatives, progressives, libertarians, congress, white house, has the ability to put together a coalition that can authorize spending for more than a couple months. we bent o went through this in june. before that we went through it in january. here it is end of september, beginning of october, we'll go through it again on christmas eve. in the real world the house of representatives comes up with a budget. it is debated, it is passed, sent on the senate. the senate debates it, pass as version and put their heads together. the continuing resolution allows the government to spend two or three or four months. it is not a year-long budget. we'll keep going through this every three or four months until there is some kind of a consensus. we'll keep choking ourselves and children and grandchildren with debt if we keep borrowing to spend more than we collect in revenue. tracy: let's talk about the debt because october 17th is now

the deadline for the debt ceiling. many will argue that is way worse for the marketer and what could happen to your 401(k) than all this political posturing with the cr and the budget. >> your 401(k), in fact the stock market will go way down on october 17th in the government is not authorized to spend more money because all of our friend and colleagues on wall street love free money. and when the government starts borrowing and spending they start investing and the price of stocks go up. but when the government loses the power to spend that which it doesn't have, stocks go down. so, look something is going to happen between now and october 17th. you want a prediction? they will cave. they always cliff! they always give in. barack obama has added $6 trillion to the debt of the federal government in the five years he has been in office. he wants to add another six. guess what, the republicans will let him do it because they lack the ted cruz, mike lie, rand

paul-like personal courage it takes to say to the government, stop. tracy: no mas. that's why judge andrew napolitano for president? i will lead the campaign, sir. >> tracy you will get me in trouble by saying that on air. tracy: come on. come on. break some news here. judge, thank you for taking the time to be with us. >> pleasure, guys. ashley: love the judge. all right, coming up, emerging markets, well, you know, losing some mojo no doubt. former world bank president robert zoellick will tell us how they can get it back. that's coming up. tracy: another head-scratcher out in detroit. a billion dollars in bonuses was actually paid as the city was going bankrupt. gerri willis is on the story next. as we head out to break, look at winners and losers on the s&p 500. best buy and ebay up top today. the dow is up 30 points. we'll be right back. when does your work end?

does it end after you've expanded your business? after your company's gone public? and the capital's been invested?

or when your company's bought another? is it over after you've given back? you never stop achieving. that's why, at barclays, our ambiti is to always realize yours. tracy: 90 minutes till the close. will stocks break their five-day losing streak? nicole petallides on the floor of the exchange with that answer. >> that's tough answer. we're not too far off the unchained line. s&p 500 is up just two points, .1 of 1%, much like the dow jones industrials up 23 points. looks like nasdaq is holding strong up half a percent. the truth is we have had five straight days of selling and no one knows where the arrows will go in the last hour 1/2. you have to stick with fox business. the uncertainty we've been watching throughout this week concerning washington and the government shutdown. i also wanted to take a look at nike reporting after the bell

today but watching nike's numbers very closely. the stock not too far off the all-time high. the all-time hi is 70.56. shares are higher going into earnings. this name is a great indication of spending. no the only here in north america but abroad in asia which has had on again off again type spending. we want to see whether or not that will hold true and if it does well over there we want to see if revenue beats the street. the one to watch, "after the bell" at 4:00 p.m. keep an eye on it. back to you. tracy: i'm telling you there are more pairs of nike sneakers in my house. this stock has to do well, nicole. >> i second that. tracy: i know. we have got boys. we have breaking news. oil snapping a five-day losing streak and closing up 37 cents at $103.03 a barrel. ashley: all right, well, this is a great story. new reports finding that detroit's municipal pension fund paid out some big money bonuses

for years while the city of course went bankrupt. gerri willis has the details and she sits here shaking her head. >> i am shaking my head because i've never seen anything like this before. so about $2 billion that went out the door from the pension fund. ashley: yep. >> to current workers to, retirees, to people whose family head had died and was not eligible for a pension, they gave those folks cash. i mean, every rule of running a pension ignored here according to story from the "new york times." it is really shocking. i want to read a quote to you. you will get a kick out of it. here is the what the spokesman of pension trustees had to say. people were having a hard time living hand to mouth. we thought we would give them extra money. >> money they didn't have. >> money they didn't have. they had to get the city to give them more money. they floated bonds which they could not pay. this is why the detroit became the first municipal bankruptcy.

tracy: who did this. >> why did this get through. the head of the trustee, the trustee, the board was stacked with people from labor. if you wanted to complain what was going on you got voted out, all right? and those folks said in a public statement in the story that, you know, we had the okay from city council. so that is what which did. we knew the money was there. we knew if we ran out of money that the city would give us more money to play with. ashley: no one raised a red flag until someone said wait a minute? >> there were auditors along the way. but some auditors were answering to the pension board. so they did not make their findings public. i have never seen anything like this before. you know, there are rules because it is not that you're just funding current retirees. ashley: right. >> you're not just funding current work is. it is the future workers you have to worry about, right? tracy: well, one fire the auditors. two, fire the council. >> right. tracy: everyone has got to go. ashley: the horse already bolted though.

the city is bankrupt. that's the problem. tracy: gerri willis, talking about this later? >> we're not doing this. we're talking obamacare tonight. we're talking to dan henninger with op-ed in the journal. he said we should let obamacare fall apart under its own weight. we'll talk about that and host of obamacare deadlines. we'll cover this all next week as well. ashley: great stuff, gerri, as always. tracy: coming up, emerging markets once mighty growth engine, kind of sputtering. so what do they need to do to jump-start their economies? former world bank president robert zoellick will weigh in next. ashley: he is indeed. as we do this time every day let's take a look at the 10 and 30-year treasurys. the 10-year dropping two basis points yesterday. giving them back today at 2.65%. same story on the 30-year. 6.29%. we'll be right back. if -- 2.65%. u know "hidden thin"

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on "money," opening a business in volatile countries. we'll talk to fat burger ceo who is local partner in kenya who was on his way to the mall the day of the shooting. they were considering the mall as a new location. what do you need to know about doing business in dangerous places? that is latest from the fox business network, giving you the power to prosper.

ashley: many emerging markets have taken a beating as fed tapering speculation has boosted u.s. treasury yields and sparked an exodus of investors looking for higher returns. so how can they get their economic mojo back? our next guest has some ideas. joining us now, former world bank president bob zoellick, now at the petersen institute. bob, thanks so much for joining us. there was a time when we couldn't literally go through a

business newscast without talking about the "bric" countries, brazil, russia, india, china. did that hype lead to a little bit of overconfidence do you think? >> well i think it did. i think, you know, you really have to differentiate among markets but you know part of what i've seen is that some of them had a lot of big capital flows, about a trillion dollars a year. part of that just changed asset prices. some slowed down on reforms they need to make and that is the key to getting their mojo back. ashley: there is huge out flow of money from the emerging markets. how do you turn the tide and get that reinvestment money back? >> well, you've already seen some adjustment and it really, it's focused on a few markets that were more vulnerable, either because they had large current account, large deficits. sort of less dependent on domestic finance. you've seen it with india, brazil, turkey, south africa, indonesia but ultimately think for the developing countries

like the united states, the key is not just to rely on the macro, the stimulus policies but you've got to do the things that build productivity. for some that is infrastructure. for some that's more competition in the services. for some it's workforce development. and these are the microeconomic reforms that frankly are important for u.s. growth too. ashley: well the fed will eventually have to taper you got to believe, even though it didn't happen, you know, this time around. as everyone expected but these emerging nations should plan, should they not, for a lack of fed stimulus money here in the u.s.? >> definitely. and, indeed, some of them have been talking about this for well over a year. some of the authorities in singapore is usually ahead of the curve were already focusing on the need to try to make sure they keep up productivity but that is obviously a developing country with a developed country income levels but you're exactly right. i think some of them because the capital has flowed in with the

fed policies but also, sort of trying to chase some of the returns they got a little bit soft on the reform side and so now with the delay in fed tapering i think it's even more important that those that are more vulnerable take the steps so that they can generate growth. ashley: you mentioned singapore as being generally ahead of the curve. which other emerging markets do you think are particularly adept to anticipating and show signs of sustained growth? >> well it's varied and so, korea, the philippines, which is not at that level, those two countries had higher savings rates. they had more domestic capital, so they weren't hit as hard. mexico is obviously very influenced by the united states but it is by and large got a lost potential and the new president nieto is making reforms. i think what you will see ahead the emerging market growth story will be much more differentiated

based on ones making reforms. ashley: very good. we're out of time. bob zoellick, thank you so much as always for joining us. >> my pleasure. tracy: this is a good story. twitter and television are a match made in heaven. we need to monitor both at the same time. i see that actually in my own house. now twitter has another match, football. dennis kneale is here with the story. what is going on? >> tracy, big deal with the national football league, with timing it will go public. twitter will carry live in. fl football highlights in its live feed. they have already sold $10 million in ads "the wall street journal" says. that is vast expansion much nfl replace on smartphones and tablets. directv offers nfl to 14 million or so homes. verizon offers nfl downloads to a few hundred million customers. twitter instantly reaches 700 million people. a perfect alliance for twitter.

30 million people in the u.s. now watch some tv on smartphones. 55% of us watch regular tv with smartphone in hand. fully 53% never bothered to use the online tie-in the networks offer on air. nfl replays, likely to get far better pickup than voting for "dancing with the stars." twitter is also expanding its video offerings just as arch rival facebook backed off plans for embedding video ads. could be twitter is better technically at video bursts. this is part of twitter amplify program. they signed up a&e, cbs. espn signed on twitter last year. it wipes out replace from saturday college football games. maybe espn would like to do same thing with nfl "monday night football" game, right? the nfl says no. the league will control the feed in the new alliance with twitter. this is conflict for twitter, guys. it needs alliances with the big tv networks but now undercutting those networks as in the case of espn by signing deals directly

with the big ad brands that are the network's most important customers. watch for this clash. >> everything is so interconnected it is hard not to have the conflict. >> at some point you will have to, cooop -- competition and cooperation. ashley: that's a good word. tracy: did you make -- >> ibm guy in the '80s. tracy: dennis kneale. ashley: he is so honest. just after quarter till the hour. time for the stocks. head back down to the nyse. jason weisberg joining us now. jason it is interesting, we have had a losing streak going here. we're just above the unchanged line. we got a bigger than expected drop in jobless claims. we have the complete mess in washington, d.c. and here we are stuck in the middle of the market. >> yeah i blame it on the big mess you brought up. it really puts the qe program really on the backburner and if these guys want to play kick the can a little further, then, i

think we'll see the status quote until the very end of the year. most people are closing the books up now. so might get some action between now and end of the year. because of the stalemate in washington, people just don't want to risk it. for those people that already have big gains this year, they're just locking them up for the year and they will wait until next year. ashley: kind of makes sense, doesn't it? jason, thanks as always for joining us. tracy: like christmas is halloween now. call the year over come the end of the october. all right, coming up are the biggest corporate deals of 2013 still to come? we have top m&a attorney here who is here with his outlook. ashley: plus there's a new champ in the college party scene. this year college tuition being put to good use. "playboy's" annual list after this. ♪ nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions

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♪ tracy: of the return of the megadeal. buying at its highest level since 2008. that is largely due to the big transactions like horizon. the second largest deal ever. worked on the deal and joins us with insight and outlook. let's talk first big picture. second quarter disappointed you. how was the third quarter looking? >> you will see the numbers next week. the third quarter is backing up to be strong, even taking verizon out of it. tracy: right. >> much more active. the second corps was a little bit worrisome, not so much in the dollar amounts, but the number of deals was actually down 12% year-over-year.

tracy: starting to see the middle market deals pick up. >> everything is picking up. it is like all these guys of things. what is the real reason. i think what happened is that reality that interest rates is going up. lynyrd there are going to go up. they could not be sustainable. it was always off in the future. they are up and are going up further. tracy: it is starting to get people off of their butt and get these deals done before the rates it too high. >> and plus for the last for five months we have not had one of the external events that gets the financing markets destabilized. unfortunately i am a little bit -- that's an understatement. i'm worried about what is happening or not happening in washington. tracy: because it could destabilize a second. >> it will make the financing market back up. since the financial crisis the financing market has been completely by polling, thus leading from being nonexistent.

and if things are really only next week in washington acting people start backing a began. tracy: less deals and less money. interesting they are saying that they're worried about finance interest rates because an all-steel. >> a hundred basis points difference is what we're talking about since the taper tantrum. one hundred basis point difference. on a big deal that's a lot of money. yes, it's deductible and all that stuff. makes a difference. and i think what it has done, the reality that rates are going up has made people say better now than wait. tracy: are there certain industries a you're seeing more activity than others? >> certainly telecom is been on fire, not just horizon. tech in general which is an

active area and has been very active. energy, particularly on the oil side of it. it's sort of tracks with the big macro factors are in the economy. you think about what is going on tracy: the global volume has been up. are we seeing cross border deals? >> a lot more cross border deals globalization is the name of the game and almost everything in business. having an interesting sort of a side effect which is nationalism is starting to creep into the picture again. to me it was hard to imagine. the smithfield deal. people were talking about whether that was national-security. they make sausages. tracy: play it out for us. what happens? >> things will slow down a little bit until we see where it plays out. everyone assumes eventually even

washington will figure it out. if it drags down, if it took a 50. thing it's going to be a pause. tracy: a slow fourth quarter. thank you for being with us. >> to welcome. ashley: well usually when we talk about college rankings, playboy is out with its annual ranking. for some it is just as important as academics. the university of colorado. they don't call it a mile high for reason. rub, university of wisconsin. coming in first for the first time ever, west virginia university. how proud they must be. a 7-year plan with the possibility of parole. last year's number one, the university of virginia just failed to crack even the top-10. if you want to know where your hard earned college tuition money is going, there you go.

avoid the university's. tracy: i don't know if i would allow my children to cry. confirming that the mlb commissioner is resigning. i am sure we will have more and be talking about this for the rest of the day. confirming. and my children will not apply to west virginia ever. finish up the 2014 season. he will finish out 2014 and then he's done. again, no application to west virginia. coming out, meeting with the justice department officials in washington to try to sell a bunch of government investigations once and for all. it will be joined by bank analysts to tell us what he believes this means. that is straight ahead. the dow is up 25 points. the dow is up 25 points. don't go

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♪ liz: good afternoon, everybody. i'm liz claman. it is the last hour of trading. emergency press releases. this ceo get the ball on the stick up for his company and sure enough j.c. penney stock starting to show signs of life one day after goldman hoisted a neon gold flag. we find you on this yesterday. nicole petallides hit it hard. other business networks are talking about walmart. we knew j.c. penney would be the story. the retailer went into crisis mode and hit back. expecting positive sales and that we don't need to raise any cash. we are fine with liquidity. you can choose to believe them or not. right now the market believes it still only 31 points higher. you can see the