hour. even these guys in the state of wyoming have had it. by saying just north of wyoming. that is where we are. here is where we stand in d.c. we are hearing harry reid and mitch mcconnell do have a deal. senate leaders hope to have some sort of announcement before we hit the road eastern time. part of this deal would reopen the government through january january 15. a lot can happen. we will keep you up to the minute on all of this. there is much more in store as well including a nice stock market rallied on this hour of "markets now". here we go. dagen: here we go.

a triple digit loss yesterday. digit loss yesterday but all over the place, wild swings based on what washington wasn't was not getting done and now is getting done. connell: or may get done. tonight but now in a rally. nicole petallides at stock exchange talking about what? nicole: talking about washington, john boehner, lawmakers getting closer, you start to see the markets take off in a positive way. the sectors have up arrows whether it is drugs or banks or technology, nasdaq composite up 1%, the dow up 3% so you are seeing a great run end news across the board. bold is pulling back and the vix, the fear index is to the downside, nodding of nervousness. shares of bank of america

reporting third quarter profit. better loan quality, up 120% of $13.60. connell: the clock is ticking and news is breaking in washington. we heard from a senate aide in the last few minutes that a deal on the senate side is finalized. the nick peter barnes has the latest on what happens in the house as well. peter: we understand the text of legislation is done and we are waiting for an announcement from the democratic leader harry reid and senate republican leader mitch mcconnell on the deal and the way forward which may involve the house. let's talk about the deal points. this bill would reopen and fund the government through january 15th. it would extend the ddbt ceiling through feb. 7, would require incoming verification for

recipients, people who get subsidies for their health insurance in obamacare, this is an antifraud provision and would require a house and senate budget conference committee to work out a compromise on the 2014 budget and possible tax entitled reforms with a deadline in december. this hasn't been confirmed by john boehner's office but we are hearing from other sources that this may get started back in the house which as you know failed yesterday, house republicans in their effort to get something, legislation done to reopen the government can raise the debt ceiling crashed and burned. john boehner may actually do this first because if he does it allows the bill to proceed on a fast-track basis over in the senate and possibly it could get done tonight or by tomorrow so we are waiting for the senatorso to speak and we expect to hear something from john boehner.

dagen: we want to help vote? peter: it could be first. could be later today. the house is going to come in for legislative business at noon. the senate goes into shares session and nooo as well. we could see john boehner get this started after lunch time or sometime after. dagen: busy day, thank you for thatt the deadline to raise the debt ceiling is almost here, maybe tomorrow the treasury will pay -pall the bills that are due th day but that they will rise by november 1st and not enough cash on hand, it to pay what we know. and the economic policy project at a bipartisan policy center rejoins us. great to see you before, great to see you today. what do you make of the developments in washington so far? >> peter barnes had it exactly correct. the republicans in the senate

are being briefed on what the plan contains. after that, mr. mcconnell and mr. reed will announce the details of that agreement which are as peter outlined it. the third thing is the speaker will then go to his caucus and explain what the senate bill does. he knows he will not have all of his members voting for it but he has been pledged, it has been pledged to him by minority leader nancy pelosi and sidney lawyer, the minority whip the that they will provide enough democrats to make up for lost republicans and bill will pass, and this is important, if it passes in the house first, it does reduce the filibuster possibilities in the senate by about half. dagen: if a deal isn't signed, sealed and delivered and it arrives, has been given to us by the treasury department, as i

said maybe we can pay all of our bills tomorrow but what is the concern about this day if any? >> the concern is they hope to have a deal before the seventeenth because they have options this weekend wanted those treasury auctions to go well. the seventeenth is when jack lew says he has $30 billion on hand. the estimate is some place between the twenty-third and the first of november. he will not have enough cash on hand to pay the bills. it is impossible to really pin down that date because you have uneven cash flows in the treasury. dagen: we watched you talk about the short-term treasury debt. we watched the yield, the government has to pay a highest amount it has paid in four years just to get people to borrow from us in a very short run. what about the economic impact of just that? and all those businesses and

institutions that rely on short-term funding and keep short-term funding? >> like the real markettand money markets absolutely, interest rates are going to go up. they will go down on the short end but i doubt they will go down to where they were before this whole thing started and that is the keyy the last time we had this in 2011 interest rates were elevated enough that it cost the american taxpayer $1.3 billion in one year alone and approximately $19 million over a decade because we had a fiscal cciff frankly, not because anything happened. it is what didn't happen that caused rates to go up. dagen: i want you to answer this before we go. least teardown, stared at this debt ceiling deadline, we could pay the interest on the debt, everything else, and bills the leo, so what? what do you say? >> the economic impact of not paying our bills on time would

be enormous. it would probably be just as big as letting them go bankrupt. dagen: great to see you. thank you so much. come back anytime. even if we get this extension we are going to deal with this again next year unfortunately. thank you. connell: we are in market rally mode up 200 on the dow. the market betting this deal will get done before the deadline after reports in the last few minutes from the chief economist anthony chan joins us now. talking about what a day in d.c. and we are in new york dealing with what they are up to. two questions, one about what might happen to the economy in the future if something doesn't get done but first the current impact of what we have been throughh the political brinksmanship as they describe it, the nonsense in washington is the reason they warned us to get their act together in the united states.

has there been, the repo market and short-term yields has there been an economic impact already? >> there is no doubt we have seen economic impact. all we have to do is look at the daily consumer confidence readings and they have been coming down. we know that economic growth in the fourth quarter is going to be a little bit lower. perhaps 0.1% on an annualized basis for every week the government has been closed. some of that is ameliorated because the government workers have been somewhat promised that they will be paid when all of this is resolved and the workers that have been recall but the impact is not super but it is not minimal either. connell: might seem like a simplistic question before i ask about the future but why is there an impact? do you have a tangible example of how the shutdown or the debt ceiling hasn't been raised is hurting real people?

what is the impact that you can give us an example without going into economic statisti and what have you? >> the simplest way to answer is the way the gdp accounts are constructed when the government disclosed you are not creating government output so the gdp numbers have to come down and the level of uncertainty out there that is taking place, the higher rates, you saw the bill to the highest 35 basis, all of that has a cost. connell: the future, the probability has shifted more so in the last 15 minutes that something will get done today. you heard peter barnes reporting and that a moment ago reflected in the stock market rally of almost 200 points but we have seen deals that were almost done fall apart. what is the risk here economically if something were to fall through again today? >> believe it or not if you go

back historically of all the time the government has closed down, 17, 18, the negative impact on the equity market in the first five times compared to the last five times has come down so in the future there will be negative impact but you give people enough bad news they start getting used to. dennis: what about the debt ceiling? never happen that we reach the x date as it is called? >> that is new and uncharted territory. i hope we won't cross that but that will be another negative event if it were to occur but right now i think we have enough cash on hand to pay the queue upon payment that will be in the neighborhood of $6 billion. if we have $30 billion by october 17th don't lose sight of the fact that government revenuesswill be $100 billion between october 17th and october 31st. prioritization is challenging but not impossible. dennis: that is a good perspective that we could pay

the interest on the debt but other things might suffer. appreciate it. dagen: your final deadline of the year for filing your taxes was yesterday. there is some revenue coming. the irs not paying out the refunds that you get, extra cash may be. connell: it looks like we might not have to deal with this. dagen: if they get it done. twitter is ready to go public in the midst of all of this next month and that company picked the new york stock exchange. the latest on that decision. stuart: the furloughed fbi agents still on the job dealing with drug dealers and major blow in a big bust we will talk about coming up. dagen: how about more football on thursday night? the nfl not happy with ratings on its own network so another media outlet. first our cameras are asking what your message to congress is. >> the reality is both parties have been laying down on the

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connell: more news from washington d.c. in all speaker of the house john boehner. what are we hearing? peter: we just updated again, the senate does have a deal on ending the government shutdown, reopening the government, doing a budget resolution and raising the debt ceiling. we expect we will hear from the two senate leaders mitch mcconnell, republican leader and harry reid, the democratic leader, shortly here before noon but no decision has been made specifically on which house will do this first. there is speculation that they may have the house gophers, john boehner will put this to the floor. sorry, all this is happening so fast. i am looking at my blackberry. spokesperson for john boehner, mike deal says, quote, no decision has been made on how potential senate agreement could be voted on in the house.

in theory if the house does it first that would help make it go faster through the senate, limit the opportunities for a filibuster and in the house if john boehner brings it he will rely on democratic votes to get this done, since house republicans won't vote for this. that is where we stand. rich: that is new information because we are assuming the house would vote for a stand that could speed up the process of the point is let's be careful. we don't know. they haven't decided. we will be back to you. dagen: john boehner's spokesman, no decision which body goes first or the timing but the markets like what they see. 200 point gain on the dow moment ago and shares of apple and yahoo! are also in. wall street since the apple report cutting orders for the iphone 5 c, yahoo! banking on and colleague bob ipo. what is going on? nicole: imagine the 200 point

gain, looking at apple which cost $500 today on the news they are going to cut down the orders for the components that go into tte 5 see. that was the keeper of the two models. they have great demand for the 5s and apple holding the $500 market. that is good news you also have yahoo! on the move to the upside up 70%. a big stake in for -- users for a month are 15%, mobile users up 15% so good news for melissa meyer and there you have it, yahoo! up today on the news. connell: we will be back in a minute. speaking of tech, twitter, the stock exchange winning the coveted twitter listing as it broke with tradition and busted the trend of high-profile tech companies over the years, you think of them listing on the

nasdaq. dagen: after what facebook went through it would be taking the flyer if it did. what is going on? >> the stock exchange emerged victorious when listing their version of the nasdaq. sources say the road show will begin oct. 28 and analysts expect pricing on november 14th and big listing on november 15th. they told fox business, quote, this is a decisive win. we are grateful for twitter's confidence in our platform and look forward to partnering with them. you may remember the nasdaq, the ceo may last minute hitch a few weeks ago and twitter hq, they said all the nasdaq which twitter well as they pursue the initial public offering. nice words from them. any updated file and we learned two important things, twitter post a loss of $64.6 million in the third quarter, triple its loss year on year but good news, revenue was up $168,600,000 from

$82.3 million which was the same growth rate as the previous quarter and updated filings revealed exactly how much cheryl casone and risk-management 17.9%, jpmorgan 10.3, smart capital six.8, benchmark 6.6, union square ventures 5.9% and about 5% for global. other numbers jumped out at me, user growth increased by 6% but that is down 7% as a rate in the second quarter and ten% a quarter before. that ad revenue is up, down 75%. connell: tweeting about the sea and twitter in our life. dagen: the company still losing money and your e-mail under attack, the nsa snooping on your address book. can't make it up. judge andrew napolitano here to get fired up about that. dennis: better finger, dagen

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dagen: much has happened in the last 25 minutes in washington.

>> senate republicans are actually meeting behind closed doors. and mitch mcconnell has cut with the democratic leader in the senate, harry reid, and this would reopen the government to keep it funded into january, raise the debt ceiling until february and require the house and senate to come together in a conference committee and hammer out some kind of compromise budget deal on the 2014 budget and other fiscal issues, entitlements and all that, and we expect to hear from mitch mcconnell and harry reid possibly in the next hour and we're also waiting for confirmation of who is going to go first. the house may go first. john boehner in the bring this

into his sugar first because it would allow the senate to consider the legislation on a lot more expedited basis, limit the filibuster opportunities but if john boehner does that, he would need a lot of democratic votes to get across the finish line in that house before sending it to the senate as a lot of his members are not going to vote for this piece of legislation. dagen: peter barnes. connell: charles payne is trying as we are to adjust all this. and perfect as we know them, we are hearing the went through everything we are eating in the last half hour or so. there is concern in the short-term debt markets, the repo markets, rates went a little bit, now we're betting on a deal. make the money on this? charles: we feel pretty good. a lot of stoccs at 52 week highs, the bias shifted to the upside but never collapsed.

maybe a little spike in the yield and all that if you pull at 50 chart and all these things it was a small blip on the screen. connell: nobody thought we would do that, not nobody but people were making bets they would not -- whatever the x date is. charles: big part of that the role as well. the interesting thing is we got a convenient excuse politically and economically, they griped about the fact that this two week drama might slow things down a little bit. we have the political excuse, we didn't have the jobs report number which would be 150,000, nothing to do with this at all so many weak data we get between now and the end of the year this is a convenient excuse like the weather. dagen: i saw the ceo of hyundai talking about car sales being hit, impacted by the shutdown put you did -- there will be economic impact.

you could use it as an excuse but you got short-term lending rates for the federal government that ought five your high and that means those are rates that some corporations would have to pay. you have hundreds of thousands of people have been furloughed. that will have an impact. charles: hundreds of thousandof. it will have some impact but also less government spending is one of the things a lot of people think is the most positive story in this economy. even the president continues to brag about how he lowered the deficit by a large percentage not saying exactly where the source of that is which is sequestration mostly. there are other economic positives. the next sequestration was a planned event. you could factor that in but when you are talking about things that happened at a moment's notice that people were not expecting to happen, bigger economic impact. charles: if you are investing, too weak economic impact, if you

are being that myopic about the investment you should be a dane traitor because ultimately all of these trends whether it is automobile sales, good comparison for those, will have a hard time having the same growth we had in the last year. connell: more deadlines. dagen: if you acts like this has no impact, the people in washington will do it again. charles: january or february. connell: that part -- hearing about this deal to get back to today. on the senate side with leaders of the senate coming to an agreement. we hope to hear from them harry reid and mitch mcconnell, before we get to the top of the next hour coming gibson. dagen: making nice maybe. we shall see. the nsa tapping into contact list.

they can even get your mother's address. judge andrew napolitano is with us to talk about a dangerous game the nsa is playing and hear our today's winners on the s&p.

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connell: we will go back to d.c. in a minute. nicole petallides joins us now. nicole: 204 points to the

upside. every dow component has an up air. from banks to drugs to the transports, oil services caught up arrows. the leaders reaching a deal to reopen the government. we are watching that as well. we will be hearing more from harry reid and mitch mcconnell. we are starting to hear that they are putting some final touches on this. they thought it was a lot of theatrics. they thought that these lawmakers would get it. we're closer to some sort of deal.

dagen: at the site coming to a deal. no decision has been made about how or when an agreement could be voted on in the house. here with reaction and much more is brett baer. this is a tick tock. just your reaction so far as to what has gotten done or has not gotten done in d.c. today. >> will take what they agree to originally. essentially, they will jam it down the house broke. we are at the back end of it deadline. speaker boehner said he will put it on the throat.

it will be much easier if it starts in the house. they take the senate bill, john boehner puts it on the floor, he passes it with majority democratic votes. if it starts in senate, it has to go through this whole archaic process where anyone could stand up and delay it five-six days. dagen: are you surprised, this is a date issued by the treasury department, october 7 team -- october 17. are you surprised we have gotten so close to this date? >> no. congress is in this mode where they have to have a backstop. they have to have something

where they will go up against christians or they will go act. this was it. evens is being questioned. there are many people out there that think with the tax reeeipts coming in that that would pay the bills they wanted to pay really up to november 21. dagen: let's just assume that something gets done and the government reopens. the debt ceiling now moves to february 7. is there any reason to believe that next time will be different?

>> no. i do not think that there is anything to indicate that things will be different. what i think we'll be telling is if they go into this conference committee and they really try to iron out big-ticket items. that is really the test for going forward. if they get it right innthat conference committee, may not have to have a battle over raising the debt limit. they will be able to draw down the numbers and they may not have to raise the limit. dagen: let's hope. it was great to see you. connell: we will be watching the house democrats. they will have a meeting at

2:00 p.m. there are other things happening, including this e-mail address books to buddy lists. the nsa has been dipping into your personal mail accounts. dagen: what your message to >> i would say go to work. do what they are supposed to do. get the job done. ♪ [ male announcer ] need help keeping your digestive balance in sync?

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>> i am lori rothman with your fox business brief. in a settlement with the commodity futures trading commission jpmorgan admitted its traders act did recklessly put microsoft internet search sites are a distant second with 18% market share. retailers say they will be hiring more help this holiday season. 39% of retailers plan to hire seasonal workers this year. up from 36% last year. they say they will pay the holiday staff $10 or more per hour. that is the latest from the fox

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dagen: the nsa intercepts e-mail address books ambulance when you log on to write someone or link up your mobile device to a computer. connell: joe andrew napolitano joins us now. >> this is extremely troublesome. if you send and e-mail today

again in the nsa intercepted it and they wanted to go to your board against contact list, they will do it and they have done it. it is a violation and punishable by five years in prison. we do not know why they are doing it. we're not know know the name of the judge. we do not know the reasons for the war it. we have an absolute right to know what the government is doing. whatever judge authorized anybody to invade our contact list. our personal phone book is a candid for impeachment. if this was done without a warrant invaded our contact

books is warranted for a rest. i do not question the nobility of their goal. at some point, who will keep us safe from them. who will keep our freedom wednesday, the nsa, are invading it? connell: it is not us that they are looking at. it is the potential for terrorism. >> connell is talking to somebody other than dagen. we have to know who it is. we cannot figure out who it is unless we capture other phone calls at the same time. connell: is that legal?

>> no. a warrant by a judge would make it lawful, but still unconstitutional. the warrant itself would be unconstitutional. before if we are off to no good, why should we >> people who are under observation change when they are under observation. two, in the market, we have the right to be different and the right to be left alone. there are 4500 federal crimes. nobody knows all of them because they are so complicated. if they want to apply a crime to

a person, it will do so. connell: i will admit i thought of that question, but did not have the courage. i knew the judge would have reason number 54. [llughter] connell: the judge was ready for it. twitter choosing the new york stock exchange. choosing it over the nasdaq. what are the traders saying? alan galvez joins us. what are your thoughts on all of this? >> it is no surprise.

over the last seven years, we have had for better years than them. it is not surprising. connell: having fun down there today? >> oh, yes. we have been down this road before. it looks like this 11th hour deal is going to get done. connell: thank you, sir. dagen: we heard the judge laughing out in the hallway. how about adding more football to your thursday nights. we will tell you exactly why the nfl is looking to do this. connell: this was an easy list to put together. ♪ it's a growing trendn buness:

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dagen: you make even be able to get a bigger dose of football on thursday night. it is disappointed with the lack of viewers. they think that adding another game two thursday night good at to the viewers. the league is not only considering cable networks, but companies like netflix or google.

the games will likely come from the sunday afternoon schedule. connell: kind of interesting. with the data halted by this government shut down. we'll talk now about the ripple affect. a downtick in the index. we are in illinois. i am with the president. i have to ask you, that, what impact has this shutdown had on you? >> we have had a good amount of buyers. they are still coming out buying.

the chief economist had this to say. the paralysis in washington has caused builders and consumers to take pause. take a look at what that has met. you have had some experience with homebuilders. >> i was with faulty homes. jeff: nationwide, this does not helpp >> it is never a good thing. we rather not have that on there. for the most part, our housing market was pushed down quite a bit. jeff: let's cross our fingers and hope it goes away. >> we are feeling good.

we have a good backlog of buyers right now. very confident. jeff: okay. connell: keep fox business on all day. that is what's going on. dagen: butterfinger peanut butter cups coming in time for the super bowl. connell: you love that story. dagen: it does not get any better than that. the national homebuilders association ceo will be joining cheryl and dennis in the next hour. connell: strong snack sales. hugh johnson will be coming uu in the next hour as well. of course, the very latest out of capitol hill.

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>> republicans recognizing this was not a good strategy. i am pretty sure they will not run this play again. dennis: is president obama already taking a victory lap? i am dennis kneale here with cheryl casone. no word on when the house may vote. we are live on capitol hill with the very latest. the shutdown is having some kind of impact on the film industry. grab another bag of cheetos. pepsico beats the street. hugh johnson will join us. all that and more on the next hour of "markets now."

♪ dennis: it looks like they are already deciding on wall street. cheryl: market are rallying. up 193 points right now. we are expecting to see something from the senate at some point during the hour. the question is, who goes first? dennis: we thought the senate was ready and then the house kind of threw a curveball. markets are loving what we are seeing today. cheryl: let's bring in nicole petallides. nicole: it is what they expected. they really got closer than what they expected.

over the last month or so, every trader i spoke to talked about political theater and posturing. even yesterday, though, ted weisberg came onto our network and said they would figure it out. even at the point when it started to feel like they were not going to. he stood here and said they will figure it out. look at that. look at what is happening. once again, we are starting to believe that it will get on. it seems things are looking better. we are seeing the market jumping 200 points. every sector is in the green. back to you. cheryl: thank you very much. the breaking news that we are following for you is that today may be the day that we get this deal in washington. let's bring in rich edson from

washington. can you bring us up to date on the structure of the deal as it is in play right now from the senate. rich: absolutely. there is a deal between the top democrat and top republican in senate. this is what the two top senators have sketched out. basically, it continues government spending through january 15. it increases the debt ceiling through february 7. however, the administration will retain those measures. the treasury department could use it extraordinary measures to extend the debt ceiling date for month after that. also, there is no flexibility on the sequester.

it also requires stronger income verification. cheryl: we want to listen to comments from senator harry reid >> i will not give any longer marks here. in fact, i will not give longer marks at any time. while we are waiting for senator mcconnell, i have not had the opportunity to say this, admiral bloch has for me during this long period of crisis we have had in this country then a voice of stability, a voice of inspiration to me and i am being very selfish and saying me. that is meant for the entire senate and the country. the heart felt prayers are so sensitive to the needs of our country and the need that we all

have to call upon our spirituality to get us through periods of difficulty. i speak, i can't speak for the entire senate twos say how much we admire this good man who is a good counselor and leader in the senate as much as anyone that serves in this party. cheryl: we wanted to listen into any comments coming in from the floor. he was talking about the senate chaplain. once again, we are maturing what is happening on the senate floor. if we get any news coming out of the house, we do not know, it if

the senate or house will act first. we are watching and waiting. this is all about what is happening in washington, of course. dennis: this is really dramatic. i like it. it is the highest percentage in more than two decades. it goes along with the 74% of people that want to see most members of congress lose next fall. joining me now, we have former republican congressman from michigan and former democratic senator from arkansas. q for being with us today. do you think that the lasting damage to politicians from both parties will stay? >> i think people are definitely, they are upset.

they are seeing their leaders in washington, they are stuck. instead of doing the kinds of things that they need. it is probably very similar to something that they talked about for-five weeks ago. it will help our economy to have some certainty up until then. they need more certainty. there is so much more that they can be doing. the markets do build in a certain amount of faith into what they do. seeing them react today, i think, you see it does matter what happened in washington. i hope that the budget committees will do a conference. dennis: .is kind of a filibuster answer. thank you, senator.

have you ever seen it as bad? within the own republican party. >> i have never seen it that that. the important thing now is will this be a learning experience for the president, house republicans and democrats? we reformed welfare. we cut taxes. we restrained spending. most importantly, the american people that it'd and we balanced the budget. dennis: how much of the blame here go on the actual president himself?

>> i think that there is plenty of blame to go around for everybody. we work together. what happened was after that we came together. we figured things out. we really worked to solve a problem. dennis: do you think that the outlook now is for that to happen? they will have the people understanding that at some point you do not get everything you want. you just have to work with each other be five does it get even worse from here on or have both parties learned their lesson? >> i hope that they have learned their lesson. republicans will hopefully

learn, if we do not have a fit position and we are divided, we will get nothing. maybe we will get 50-60% of what we want. dennis: for now, we are getting kind of sick of all of this. thank you for being with us. cheryl: markets are also focused on earnings. it looks like americans like their snacks. pepsico beat the street with third-quarter earnings. i will go behind with hugh johnson. dennis: twitter bombshell. we will get more on the impact and implications coming up. we are taking to the streets asking for your message to congress. what some of you had to say. >> i think that wasting.

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♪ dennis: looked all about green. the dow up 200. nicole: we have the senate meeting right now. we continue to what headlines from washington. we are waiting for more, of course. it seems that deals are getting closer, rather than farther away. i wanted to also take a look at some of the financials. bank of america out with its quarterly reports. citigroup up 30.25%.

dave morgan with all pharaohs. do not forget we got in our bank of america numbers over the last 24 hours. you can see that this is really flying higher. back to you. cheryl: nothing says love like a good bit of chips. joining me now is huge on. good to see you. welcome back. >> thank you, cheryl. good to see you as well.

cheryl: i want to ask you about your thoughts about what we are seeing in washington today. i am assuming you are a little concerned about the debt ceiling deadline. >> ultimately, we do worry about the consumer. in certain pockets where federal workers have been furloughed, that will ultimately have an affect. the reality of it is, i think the parties have got and down and the in the business of getting a deal done. >> certainly, business has been strong. on the other side of this,

seeing a little bit of a drop when it comes to u.s. consumption of soda is. i know you are going more into water. how much further will be safe all when it comes to u.s. beverages. >> i think it has had a tough couple quarters. the reality is, it may not be a big growth category. globally, both of our businesses, they are obviously quite related to each other. both of our businesses globally are performing well. combine that with the fact we have been driving a terrific amount of product committee. it has delivered us to have good earnings.

pepsico is performing well. investors seem to appreciate that. cheryl: the competitor told analysts that the diet beverage products is under pressure. people are questioning artificial sweeteners. you also have the sugar police. how do you respond to what coca-cola president said about artificial sweeteners? >> one of the advantages that pepsico has was to build a great portfolio for carbonated beverages and noncarbonated beverages. we have gatorade and tropicana, all of which are doing extremely well. as carbonated soft drinks come under pressure, the others do

more strongly. we certainly feel good about that. cheryl: you, i am so sorry, i have to interrupt you. thank you. >> the compromise we reach will provide our economy with the stability it desperately needs. it is never easy for two sides to reach consensus. this time was lay hard. after weeks spent facing off partisan divide, our country came to the brink of disaster. in the end, political adversaries set aside their differences and disagreements to prevent that disaster. i think the republican leader for reaching this important

agreement. it was essential to pass both tours of congress. as part of our agreement, this legislation strikes leaders to a budget conference committee. it will set our country on a long-term path to fiscal sustainability. i know that some say that will be hard. i think we can get it dooe. the committee members had open minds. we are considering every option known or how. this conference committee, led by chairman murray is discussing

different views this fund the government through january 15. during which time, we can work towards a longtime budget agreement that prevents these frequent crises. fingers or blame. this is a time of reconciliation. i look for to working with my colleagues on both sides is. what we have done is send a message to americans the united

states was up to its obligations. congress must return to its most important job. i appreciate all of this. i am optimistic that the spirit of compromise has taken root in the senate over the last few days and will indoor. i do know that senator mcconnell and i have sought in very serious discussions. we will do everything we can. >> the republican leader. challenging few weeks for congress and the country. it is my hope that today we can put some of those most urgent

issuee behind us. we began a series of conversations about a way to get the government reopened and prevent the fall. i am god that we will be able to do both of those things later today. crucially, i am also confident that we will be able to announce we are capping the government's budget. it has been a top priority for me and my colleagues throughout this debate. it has been worth the effort. some have suggested that we break that promise. some say washington need to spend more. we need to raise taxes. we need to tax our way to prosperity and balance.

what they showed is that washington actually can cut spending. because of this wall, that is just we have done. for the first time since the korean war, the first time since the korean war government spending has declined for two years in a row. the first time in 50 years. we are not going back on this agreement. there is a lot more we need to do to get this nation's fiscal house in order. hopefully once we have gone past the drama of the moment, can work on it. for now, let's not understate it. the largest reduction bill since 1981 that did not include a tax hike. preserving this law is

critically important to the future of our country. throughout this debate, the public has rightly been focused on obamacare, for good reason. this law is killing jobs and driving up premiums. it is a design of even worse things to come. the refusal to delay it reflects the stubborn obsession that will do untold damage to our country. republicans remain determined to appeal this terribbe law. for today, the release we hope for is to reopen the government. avoid default and protect the historic cuts we achieved under the budget control act. it is far better than what some had thought.

it is time for republicans to unite behind our crucial goals. cheryl: a bipartisan deal has been reached. what you saw on your screens senator ted cruz. i believe he is still speaking. >> i thought it was interesting reading in the papers much speculation about whether we may delay the vote. my focus is on the substance. what are we doing.

the united states senate and the washington establishment is doing nothing to provide relief. >> you have a lot of fellow republicans downright angry. here we are almost three weeks later. they never thought it would work. here we are reopening the government after a lot of losing political warfare internally. you got nothing for it. >> i disagree with the premise of that. months ago, when the effort to defined obamacare began, they scoffed that the american people. we saw first of all, millions upon millions of americans rising up across this country.

we saw the house of representatives taking courageous stance, listening to the american people. that was a remarkable victory to see the house engage in april -- unfortunately, the senate chose not to follow the house. in particular, we saw a real division among senate republicans. i would point out that had senate republicans united and supported house republicans, the outcome of this, i believe, would have been very, very different. it does give a path going forward. i believe the house will continue to listen to the american people. lots of people in washington love to focus on the politics.

it is unfortunately the game of this town. what matters more is all of the people across this country who are hurting right now. who are getting in the mail a notification that the healthcare they are known were lying on, that it is being canceled because of obamacare. president obama promised the american people that it would lower health care premiums. i would venture to say that every person across the country have seen the exact opposite beard everyone sees the premiums going up and up and up. if you like your health insurance, you can keep it. we now know that statement was flat-out categorically false. people all over this country are losing their health insurance.

people at ups, they were all losing the insurance. the focus in my view should not be on the politics of washington. the politics of washington at the end of the day does not matter. we should respond to the very real harms that obamacare is causing. thank you very much. cheryl: senator ted cruz. dennis: makes you wonder if they can deliver. cheryl: the story goes over to the house representatives.

what are they saying at this point? rich: we do not know who is going to vote. they are still deciding procedure in all of this. he says that he will not hold up this vote. what that does is open a path in the u.s. senate. they can actually get something out of the u.s. senate very quickly. if no other senators agree, which i am not sure if you could say that for certain, you could pass a bill out of the senate first, get it over to the house quickly. we do not know vote totals here in the house yet. happen once the bill gets over

here. if the house will start first there's a lot of different political angles at play. another one, you did mitch mcconnell trying to claim victory on this one. as the shutdown got longer. begin to see democrats demand things. what started to happen last few days is democrats' demand the sequester, automatic spending cuts, those spending cuts be increased, the spending be increased, mitch mcconnell saying defense of those spending cuts is a victory for republicans. cheryl: rich edson on capitol hill following the twists and turns in the pingpong between the senate and house. dennis: stocks dipping back public comments, stocks on the floor of the stock exchange, nicole petallides, doused a lot. nicole: some finger-pointing, to get this done ahead of the deadline. at the same time you can really feellthe tension is coming out

pf washington. we held on to a nice gain. the dow is up a full percentage point, up 1.1%. the nasdaq composite, all three major averages looking great, 170 for the dow, it was up 200 points earlier. you have a great guest coming up when talking about housing for the national associatton of homebuilders. and how they're bearing on a day when retailers, banks, transports, the oil service index have up arrows. and build a conference drop in the last month in october. and we have a lot of things happening, everything, inventory being available to a certain extent but some home buyers too word taken aback by higher prices they were faced with. we brought it up for you but they have up arrows much like this market overall and as we continue to watch the politics in washington, back to you. dennis: thanks very much.

cheryl: home builder drag joining us in a fox business exclusive is the ceo of the national association of homebuilders. coming out and talking about the shutdown your reaction to the news on the senate side, bipartisan compromise to end the shutdown, and pave the nation's bills. >> my reaction is like most americans we are watching more closely, the will industry, the whole country, drop high drama in washington, more like a comedy. we're glad they're taking an interim step. hopefully the spirit of bipartisanship which you never hear in this town anymore will take root and will solve the problem long term. it is the right baby step in the right direction. cheryl: one thing builders that in the report, there was a decline in a moment the fact

that there is a lack of housing starts, information, not getting the government data, the builders are not getting the data but you have done your own data, your own survey the best you can. where are we with housing starts? you all we have right now. >> i am sorry about the only thing we have but we are estimating 1,000 starts. is just an estimate. we annuity access to the totality of data that the government does so this is the best thing we can put out because all sectors of the economy are watching us and it is a conservative estimate but a solid and defensible one. cheryl: the question is after the shutdown are you concerned about our builders concerned about the consumer about home buying public? interest-rate elevated. those interest rates don't go down now we have to figure out what the fed is going to do, are builders nervous traffic will fall? >> we are always nervous about interest rates, we are the most

interest-rate sensitive sector of the economy but if you put it in perspective for the long term over historical averages interest rates are relatively low and if they settle lower than this and that is the new normal ultimately that will be ok but everything depends in the next three month. cheryl: we got the from the mortgage bankers association and purchase applications. that is no surprise to your members especially the -- your chief economist said mortgage rates heading higher plus the shutdown is still a major -- a major issue for builders. can we move past that or will we be feeling ill effects from the shutdown over the next several weeks as interest rates stay higher? >> i am afraid it -- the reopening of the government, the agreement to do negotiations put pressure on the economy and our sector in particular over the course of the next three months.

it will level off a little bit but the american consumers and american business will be watching closely to see if indeed there will be a bipartisan compromise. cheryl: i mentioned perspective traffic, and the 50 number which is the negative positive ratio we look at your report but also what we are seeing cross the country. in the midwest and the south do you think that will continue because of the higher prices in the northeast and the situations we are seeing with prices in california? where are we geographically? >> the midwest and south are less susceptible to short-term blips on the radar screen either up or down. you watch them as the baseline and when things are going really well and really badly the northeast and west particclarly california and arizona are probably more dramatic indicators than steady indicators. cheryl: a lot of investment dollars. thank you for giving us the only

data we have today, we appreciate it, see you next month. dennis: permits to close parks the shutdown is having a big impact. i don't know if we will have those details. what have we got? cheryl: i want to hear about the film industry. also, more of what you had to say about congress. >> is really a drag. friends and family around the globe asking what is going on here and they are worried if it grabs on it will affect the economy.an lbur... ...amelia... neil and buzz: for teachi us that you can't create the future... by clinging the past. and with that: you're history. instead ofooking behind... delta is looking beyond. 80 thousand us investing billions... in everything from the bes ex. to the finest comforts above. we're not simply saluting history...

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tracy: i am tracy byrnes, night capital agreed to take million % dollars to fcc charges in connection with the trading glitch on august 1st, 2012. new trading software sent wrong quarters to 140 on the stock exchange disrupting the markets. more jpmorgan chase has agreed to take $100 million to settle regulatory charges to the bank's london whale trading scandal last year. the settlement with the commodity futures trading commission jpmorgan admitted its traders act aggressively. mortgage applications moved by 0.3% last week according to the mortgage bankers association. 1.3% the previous week.

that is the latest on the fox business network giving you the power to prosper. cmgroup can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader . cme group: how the world advances.

>> dirt deals struck in the senate, peter baring that the white house with latest. >> we are awaiting white house comment on the deal brokered in the senate between harry reid and republican end -- mitch mcconnell. the briefing at the bottom of the hour, 12:30 but obviously it appears they were waiting for these 4 statements that you aired. we are told that jay carney will address the bipartisan compromise at the top of his briefing, the white house has been behind this senate effort from the get o as house

republicans continue to fight for changing obamacarry as part of any legislation to reopen the government. look for jay carney to have an endorsement of the deal on the floor of the senate moments ago. dennis: thanks very much. cheryl: let's bring in phil flynn. what we are seeing in particular on the bond side of the trading and commodities of all this. >> it looks like they are worried about this deal when training for another deal with the months away. you would think golddmight continue the sell-off, a pop up in the gold, and in the bond market, to start to move, in the bonds and 10 years so we are

starting to see that start to come down a little bit. reaction on the floor lot of traders are tired of this. and we are not driving to these% higher levels. perhaps they want to wait to see the details of the deal, how long this is going to go and a lot of traders are saying once we get the initial relief that the deal is done markets may go the opposite way anyway. they are tired of this. one positive thing we are getting out of this deal from the bullish side is even with the deal right now we are going to see a lot of q e. cheryl: we got that right now definitely. let's bring in allen vowed as on the floor of the stock exchange. same question to you, we are seeing an equity rally. not much movement when we got the finality which was the statement from mitch mcconnell. we are up 187. is this as far as we go?

>> up 200 again. in this phase away, she is going to keep the tapering going, that is moving the market over the last four five years so i see no change in the momentum. the market can continue going up. cheryl: thanks to both of you. appreciate it. dennis: the ripple effect making it for the film industry. joining me with more is co-founder of the independent film company mouse roared in new york christian chaales. i will try not to chief call you charles for the rest of the interview. the mouse roared suing by disney with that name but there are some effects of the shutdown on film makers. tell us about a couple of them. >> it is ltd. but there are effected. it is mostly to do with permitting federal property. cheryl: many years ago i as involved with a little in the film maker saying you can shoot

at any basic public building in new york for good 30 minutes before anyone can round up -- and without a permit? >> you can do that and a small enough crew and you want to be adults about it. and there's cash exchanged in that and it is not happening. dennis: you need to bring the men on a film project. is that something? >> a cinematographer or somebody important to the production. and the productions by the way. >> the state had a better impact on film making. and 267 and 2012 from 488 and 2011. and to make your movies.

>> absolutely. and it is tremendous. a movie called love sec law. dennis: and a documentary on jerry seinfeld. did you get any state credit for that? >> it is long enough ago that i am not sure of the answer to that. it was mostly in the city but there are more in the production. dennis: he has that new show with comedians having coffee or something. what project in the middle of my get fouled up unless these politicians consider this thing? >> mostly developments, a couple of shoots that might involve paula the government, not while always other options., there are dennis: the film industry has been revolutionized by the web the past few years with small

film maker is going on to in the go-go.com or give a said the nation and give you a ball cap, you can't get a stake in the profits of that but you see all kinds of big names, big star is going on, does this bother little guys like you that big stars to the raise money in meetings all day long are now invading your space? >> euclid look at it that way. essentially it is all about the good idea and the people involved in it and it is tough business, no cover -- dennis: where do you raise your money? >> it might be private, might be studio. dennis: haven't done the pick starter? >> of not done the kickstart yet. ben 1/2 -- it seems to kind of go against what that was about. thanks for being with us. we appreciate it. christian charles of mouths to work, thank you so much.

cheryl: time for your west coast minute. an employee was arrested in connection with several dry ice explosion that occurred over the last few days. and taken into custody last night. took the dry ice from a plane inside a 20 of plastic bottle and left in the men's restroom where exploded sunday night. another explosion occurred monday. the former mayor of san diego pled guilty to felony charges, abusing female staffers, a peer in court a month after he publicly denied wrongdoing and accused political foes of going on on which hunt. the plea agreement includes a recommendation of a three month confinements followed by a couple years of probation. the federal shutdown has all but put a stop to alaska's king crest fishing industry. federal workers are needed to process those permits for every boat but not only restaurants around the world on standby but the weather is beautiful land

perfect for fishing. and is your west coast minute. dennis: parish the thought that a fishing boat will go on to the water to fish without a government permit, it floats without the government that. and they're in business for a few years. your west coast jet have been when is bugging you. i you ready for some football? and there are telling me that is not true. and where there's smoke there may be fire. cheryl: all three major averages are up, look at the names on the nasdaq. it's a growing trendn business:

do more with less with less energy. hp is lping ups do just that. soon, the world's most intelligt servers, designed by hp, will give ups over twice the pformance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind.

cheryl: the latest breaking news out of washington. senate leaders announced a debt deal on the senate floor earlier, looking at a press briefing room, and we are awaiting for reaction from jay carney. and we bring those comments with white house reaction to a bipartisan deal. and speaking at the same time as gop leader mitch mcconnell and put a no vote on a plan when he does. and house democrats, keep you up-to-date, planning meeting for 2:00 eastern time. and all the details cominggalex,

and we expect to see jay carney. dennis: the national football league looking at a second game on thursday night. and a new partner like netflix or google, a dean's on thursday night cat outrage that the nfl's biggest customer, espn and the network, looking at google's usetube for a possible bidder in the sunday night package. at $61 billion the you to get back and netflix may be unable to afford the nfl. google is a better bet, it is $10 billion a year but an nfl spokesman e-mail and a denial. i will put this in caps so there is no appearance of parsing words. no, we are not thinking about a doubleheader thursday night with any potential partner. that didn't stop me from doing

the story. disney's broadway production of the lion king is the first broadway show to reach the $1 billion mark in ticket sales. it took only 16 years. steady as she goes. the new release of grand theft auto hits the billion dollar mark in three days. cheryl: very busy hour of markets now. a bipartisan deal on the senate floor. one of the old you know. and white house reaction at any moment, jay carney expected to come out, reaching a bipartisan deal. now it is up to the house. as those numbers, you got to expect a vote this afternoon we'll. dennis: the dow still not 170, 15,346. a big the in hopes congress will finally do its job. adam shapiro and lori rothman a of the latest in washington next on fox business.

>> pretty much the entirety of the press office staff. welcome, thanks for being here as ever. we can go right to questions because i have no announcements to make although i am sure i know what you are going to ask. >> reaction to the senate deal that was set today? >> the president believes that the bipartisan agreement announced by the leaders of the united states senate will reopen the government and remove the threat of economic brinksmanship

that has already harmed middle-class families, american businesses and our country's economic standing in the world. the president applauds be peer read and minority leader mcconnell for working together to forge this compromise and encourages congress to act swiftly to end lists shutdown and protect the full faith and credit of the united states of america. >> that means he supports decisions that are included in that, opening the government? >> he does. he believes this agreement achieves what is necessary in terms of reopening the government and removing the threat of default and the brinksmanship we have seen, and again we haven't seen legislation moves through either house at this point so we're not issuing an official statement of administration policy but he lookssforward to congress acting

so that he can a sign legislation that will reopen the government and remove this threat from our economy. >> is he confident the senate and the house will vote on thii measure today? >> we leave parliamentary procedures to congress. we obviously hope that each house will be able to act swiftly because we are all ready on day 16 i think, correct me if i'm wrong, of a wholly unnecessary shutdown of government with real consequences for real people. and we are obviously very close to the point beyond which the united states treasury no longer has the authority to borrow new money to meet our obligations. as soon as possible is be essentially the recommendation we have from here. >> are there any operations or

procedures that are in place today to prepare for the possibility that congress cannot pass this measure today? >> the treasury is the place that would answer questions like that. what i can tell you is what jack lew has made clear in his testimony and his letter to congress, that the treasury department will exhaust borrowing authority at the end october 17th and beyond that point the treasury would have only cash on hand and would not be able to borrow new money to meet obligations. >> how confident that the house will pass this deal? >> we are not putting odds on anything? we are applauding leaders of the senate. and reaching the agreement they reached and houses of congress to act swiftly.

to take action to ensure that the government reopens and the threat of default is removed and continuing harm that these two situations have caused to our economy can stop. >> the president said from the beginning he would not negotiate on this now that it looks like there's a deal, deerfield the fulfill that pledge? >> what the president made clear what his position that he would not allow a situation to develop where he paid ransom to any party in congress that was trying to extract unilateral political concessions in return for congress fulfilling fundamental responsibilities, and he believes that is the right position for him to take, and it is the right position for presidents of the future