share. michael kors gaining 1.6%. also a gainer in the handbag realm. [closing bell ringing] cheryl: michael kors, one of the darling retail ipos we had. as bells ring on tuesday. call this -- tuesday as we have. david: jobs tuesday. all of the indices are in the green. i guess above them all is the s&p but basically they're about the same percent. not a gangbuster day for all the indices but, to be expected a day when we get a sort of a mediocre, mediocre to negative jobs report which is exactly what the market was looking for, cheryl. cheryl: as you can see you go dow higher by 75. off session highs but still closing in green. s&p up 10 points and nasdaq up nine and new highs for s&p and russell 2000. headlines for you rye now. you have apple. big day for apple. unveil brand new flagship

ipad air which apple claims is faster than the previous ipad generation. announcing ipad mini with a sharper retina display. david: only four ounces lighter, isn't it? cheryl: 20% lighter. david: microsoft also stepping up its assault on the stablet market. the company began today selling its new surface 2 range of tablets. they're lighter and peaceter than the predecessors. cheryl: september jobs report finally out this morning, nearly three weeks late. the economy creating weaker-than-expected total of 140,000 new jobs. unemployment rate ticked down slightly. data doesn't really matter, 7.2%. david: u.s. construction spending hitting nearly a four 1/2-year high in august. this was boosted by increases in private and public outlays. economists say it's a hopeful sign for third quarter economic growth. cheryl: lockheed martin, maker of the f 35 fighter jet, reported higher than estimated third quarter profit despite

higher sales and. david: fedex, have you seen fedex? it is way up to $130 a share. the shipping giant got upgrade from jpmorgan. that helped quite a bit. bank raising company from overweight to neutral a busy day coming in the hour ahead. stay with us. "after the bell" starts right now. david: let's break down today's market action. which have tony from strategic wealth partners co-founder and vice president is here. he has three ways investors can play the market. lincoln ellis of green square capital is in the pits of the cme. lincoln, i want to start with you. let's start talking about treasury yields and its relationship not necessarily to the unemployment figures and so forth but the relationship to growth. i'm just wondering will the treasury, what the fed is about to do, which is to print even more money that it has been doing, will that actually help

company earnings? >> it doesn't really help company earnings but depressing bond yields really limits the choice of investors have in terms of where they're allocating capital and you're seeing that in the allocation of risk capital the moment. with yields coming down 10 basis points over the course of the last three sessions and a clear runaway through january into end of first quarter now, march, before we actually get taper talk in earn etf again, investors are seeing nothing but blue sky in terms of he can question marks kest and u.s. continues to be favored mark can he of them all particularly small caps as nicole was.ing out earlier and nasdaq makeing a 13-year high. it is blue skies out here. cheryl: blue skies. tony, that is a gray question for you. this is all seemed to be based on belief, and if you agree fed will no do any tapering are pull back a all until possibly march ming when we believe janet yellen will be chair. do you think stocks go through

march next year rocking higher? >> i think mark can he will medical up through end of year and even through four four. >> i like that medical-up. can i steal that? >> yeah. axe slewly. david: lincoln, there are contrarians out there. i hay to mention, i don't like to rain on any parade but we had a report by john hudson, he is person of importance in market. his analyses have been right quite oven of he says following which is no a hopeful sign. feel a child throwing something out and over edge of grand canyon, you get a general idea of mark can he trajectory over the completion of this cycle. he see as distored overvalued market. you can't totally discount that possibility. >> no, nor should investors discount that possibility. is absolutely the case that john is right. investors are making risk capital allocations based on what the federal reserve is

doing, not based on forward trajectory of corporate profits look like or underlying stability or growth of the economic factors. we saw that in the jobs number. we get very moderate types of growth, you're only getting 2% plus year-over-year gains in terms of wages. that kind of dispersion across the lower and middle income sectors is not enough to grow the consumptive pie. enough to get us back over 3% gdp rate. that is the trajectory john's talking about. investors should be very careful, particularly on back side of that march meeting, if you get taper talk you will see the downside of that trajectory in equities. >> tony, you mentioned you think we'll be melting-up, again i love that but you like, and i want you to explain this, expensive, defensive stocks. get into that for me. >> actually, you know like, what we've seen is that people are climbing up the risk ladder. so they started at cd. there is no value there.

they have gone to investment grade stocks. there is no value there it is overbought. then you get into the high-yield bond and they're fairly valued. and then you have, people are going to continue to chase yield. so they're going to chase yield and they have to go up the ladder and the next position above high-yield bond are the defensive-paying stocks. cheryl: do you have a couple names? >> well, we actually like cyclicals over defensives at this moment. and the reason behind that is we see a lot of capital reinvestment going back into the infrastructure of big companies. so it is actually the cyclicals that we are keying in on. david: but hold on a second because, lincoln, i have to push back again here a little bit because a lot of folks say, look we have our gains over the past six months. what we're looking for right now is safety. we want to hold on to the gains that we got. we're not chasing yield as much as we are chasing just

maintaining our principal right now. we're pretty happy with that principal. what do those people do? >> well those people will look for very defensively-postured pitches. they look in the municipal bond space. it is decimated by news out of puerto rico and detroit. people will take money off the table to wait for fat pitches. if we go back to the conversation hussman is talking about, there will be fat pitches in 14 when volatility begins increase as the market anticipates that taper. whether you're in sickly defensive part of the yield-based defensive names or more staples oriented part of the defensive names, those yields should tick up as yields further out on the curve -- david: hold on a second. are you talking about getting into corporate bond here or what? >> no, no. into the more defensive part of the high-yield equity space.

david: gotcha. nobody's going for the bonds right now? >> not yet. cheryl: okay. tony, let me follow up on something, tony. we showed your picks to our viewers but i want to ask you about one in particular and it is seagate. this is a cloud story. talk about seagate in particular. that to me doesn't say defensive but it says expensive. >> right. what i said before i think a lot of, over the last decade a lot of these companies have been putting money into their war chest and holding on for, you know, the indecisiveness in the government and now that there will be a little bit more such any skies going forward i believe they will start putting money back into their infrastructure. so i believe the data storage is always been a discretionary spending type of item. now when they start investing into their infrastructure, it is going to be technology, and they're going from paper to paperless. and with paperless you need the data storage. with data storage, there is

cloud, you know, they will put it into the cloud. but that comes back down-to-earth and into hardware and i think seagate is a great hardware company to get into, they have a great yield. david: lincoln, let's talk about gold for a second. i'm mr. defense here. we see a lot of people are getting back into it now. it was up 2% today. is it time to get back into gold against a little bit of a hedge falling off a cliff? >> well it is against a falling dollar. it is certainly not a hedge against falling equity prices. we saw that in 2008, 2009, the correlation there is actually broken but fur worried about the dollar that is actually the play. that's why you've seen renewed interest in gold pushes it through the 1300 mark and through 1325. a lot of interest in the upside calls there over the course of the last three sessions. i suppose as we move, through the fed meeting this week you will probably see again, more interest in that 1400 call. david: great stuff, guys. lincoln ellis, we'll be back

with you in a couple minutes when the s&p closes. tony, great to see you. thank you very much. appreciate your picks. >> thank you. cheryl: today's jobs report raises new questions about fed policy. next we'll break down what the data means for the economy and the timing of the fed's tapering. david: also after apple's big reveal, even though it didn't excite investors much, we'll speak with former apple ceo john sully about what it will take to get investors excited about the tech giant again. cheryl: which brings us to today's facebook question, did apple release anything today that makes you want to buy an apple product or buy the stock? we'll bring those answers coming up later in the show. ♪ [ male announcer ] once, there was a man

who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. get live squawks right in your trading platform she's always been able it's just her way.day. but your erectile dysfunction -

that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden drease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.

at od, whatever business you're in, that's the business we're in with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises.

earnings per share, estimate of 135. that came in right in line. then the revenue, was light, 572.5 million. versus 582.4 million. the revenue came in light. they talked about operating margins they anticipate to be lower than originally expected so that is something that puts pressure on panera as well. year-to-date, panera is up 2%, year-to-date. so in positive territory, underperforming the overall market for sure. also underperforming some of the other fast-food type chains such as mcdonald's or burger king or wendy's which all cleary doing bet they're panera this year. we'll continue to follow the story. they did have bakery cafe sales that did well that were up 1.3% but the big picture here they are warning and anticipation here is a little less than what was originally expected from pa nair a that is why you're seeing the stock sell off pretty dramatically in the after-hours. back to you. david: by the way, let's not

focus on the negative. this is the fourth day in a row record returns on s&p. cheryl: s&p 500, futures, nicole, thank you. go back to lincoln ellis in the pits of the cme. there you go, lincoln, fourth straight record close for the s&p 500. nice. >> loving it for these guys behind me. last week they were trying to get options positions established for next expiration. flat line 1100 we're hearing bids out in the 1800 space. so a lot of positivity in the market in the pit behind me. david: we look positivity. cheryl: positive is good. >> i'm a positive guy. cheryl: thank you, lincoln. david: see you, lincoln. >> by, david. david: investors didn't certainly seem to impressed by the apple products rollout. details of new ipads and mac pros were announced. apple lost share to rivals like samsung. the event today not clearly helping. what does appeal need to do to

get investors and customers excited again? joining us, we he knows apple very well, headed the company for 10 years, john scully, former ceo of apple. thanks for coming in, appreciate. >> thanks. david: what did you see if anything that excited you? something transformational? >> well, before i talk about transformational let me just mention that apple is giving away its maverick operating system updates for free. it is giving away iworks applications that compete with microsoft office for free. so really kind of a shot across the bow to microsoft as they introduce two new surface products. david: no, that is absolutely true but in terms of product breakthroughs, something that steve jobs used to walk out and say this will absolutely change the market, everybody will chase this product, all of our competitors are caught flat-footed by it, we didn't see anything like that today, did

we? >> no, and i think what we saw today was exactly what tim cook set the expectations for last spring, which is, apple introduced ios 7. it turned out to be i think getting much better reviews than people thought when it was first announced. the a 7 processor is whole new level of capability for their i phone. it has been introduced in the ipad so these are little, probably more subtle than people might like. it is not steve jobs walking across the stage introduceing a device we've never seen before but they are significant, important steps along the way for apple to continue to build the best products and to raise the bar and i think it has accomplished that and apple is doing a lot better than people expected it would be doing six months ago. david: certainly and the stock has shown that. it was not impressed. it is clear investors were not impressed today. i don't want to focus on one day because what is important the trend overtime and the trend has

been apple's friend recently, however, this, john, i am not only an investor, i have apple shares but i'm also an apple user of the my whole family uses apple and we're very happy with the products and service but investorwise i'm less so. that is a problem with apple right now. >> well i think you've got to recognize that innovation doesn't occur on a regular basis. it occurs, kind of in a, you know, when things are possible and right now the focus is not on creating a brand new type of device. maybe that will happen when we see eventually what apple does with tv for example, but right now it's about improving the experience. apple has always been a company that wanted to have the best experience and the phase we're in now, better and better quality experience. the products are getting better and better. the company's doing well. it sales to people who loves it. the 5s is a huge success. so i think that is kind of the expectations that tim cook set

last spring. i think it is what we're going to see. maybe we won't see a big, leap, product creatively leap product as steve had for a while but i think to say that apple isn't doing well is really not -- david: no, no. john, i did not say that specifically because again, as an apple products user i think it is doing well but, again, the idea of, you right now are focusing on developing products and companies in companies that are transformational. that is what steve jobs did when he came out with new products. there never was a point where the time wasn't right for a transformational product for steve jobs. when are we going to see that? >> there is more time between these products than people might recall. remember the ipod came out in the late 1990s. it wasn't until eight years later we have the iphone. then several years after that he had the ipad. so you don't get a new creative,

break-through product every year, every two years. you get every four, five years. and i think that cycle is probably going to continue. i don't expect to see a creative leap product from apple or anyone else. david: we were told after steve jobs's death in the pipeline there were several transformational product. we haven't seep them yet. >> no. totally agree with you. we have not seen a transformational product yet but i think that, whether we see it in 2014 or 2015, i think apple still has the creative capacity. we heard they are building up strong team to wearable type products. i expect they will do something that could be a creative leap in that space over the next year to 18 months. we heard they may be working on something that would be a leap forward in television. i suspect we'll see that over the next year to 18 months. we don't necessarily have to see them every product cycle. david: but in the meantime the competition has become so tough.

samsung owns parts of asia. it is absolutely clear in similar type of products. that's the difference. that is why now more than ever is the need for these products that will blow the competition away. >> well, i think you're right. you know, apple would love to have a big creative leap product. i was disappointed how they priced iphone 5c. i don't think $100 cheaper than the 5s when the 5s is clearly better product with the a4 processor and other things was enough to make a difference. market didn't react well to the 5c. where they need a lower priced product probably in asia as you said. that is where samsung is making incredible headways as other android products are in those developing markets and that is where i think apple can still show more than they have shown to be more competitive. >> by the way i have to ask you quickly, i'm getting a wrap from the producers, what would you price the 5c at?

>> well, probably less than what they're selling it at. david: okay. something less. significantly, $350? all right. >> i think significantly less. if you're playing in the price segment you can byproducts in, i just came back from indonesia. you can get a smartphone for $100. samsung phone for $250. apple has doubled that price in that part of the world. david: very interesting. john scully, former apple ceo. good to see you, john. thank you for coming in. appreciate it. >> thank you. cheryl: is the obama administration getting ready to delay one of the most crucial parts of the affordable care act? we'll head to the white house to find out how a deluge of technical glitches could slow doesn't president's plan. david: we'll look beyond today's disappointing jobs report to find out whether the weakness in the labor market will continue and how that could impact the fed's decision to taper all those bond purchases. ♪ when we made our commitment to the gulf, bp had two big goals:

help the gulf recover and learn from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.

cheryl: time for a quick speed read of some of the day's other headlines, five stories, one minute. first up is nokia unveiling six new gadgets at nokia world in abu dhabi. they include two 6-inch tablets, first lumia tablet. and budget hand-sets. vine is the fastest growing app in the world. according to global web index the app's popularity grew 403% between the first quarter and third quarter this year. twitter relaunched vine in january. a video sharing app. third month in a row, yahoo! websites had 197 million unique

visitors compared to google 191.4 million. coffee prices four-year low. weather improved in brazil which is the world's largest producer and exporter. ceo pay skyrockets, record payout of 10-pointbillion. ceos saw their total pay jump by average of.5% this year. that is the speed read. [buzzer] talked faster. david: good for you. millions of americans as we all know have been unable to sign up for obamacare because of problems plaguing the rollout of the government he's online health exchanges and as we learn more details about warning signs that could have been missed, while the white house be forced to delay the law's individual mandate? cheryl: rich edson standing by at the white house which is a great question to pose to you, rich. >> it's a great question and it has been posed to the white house and the white house isn't saying all that much about that for the technical difficulties, a the least specifics they're trying to fix here and what they're putting

behind it. what you look what possibly could be coming down the road here the administration does say if you are unable to sign up for insurance, if you do look at the law it would be unlikely you would face a penalty. however officially, delaying that individual mandate that requirement almost everybody have insurance next year, that is not something they are ready to say. they still want to work this out technically but not having the mandate, not having all the paying customers if you're a health care company, all those paying customers if you're a hospital, could create real problems and it also could create serious problems for the entire law. >> it makes it significantly worse. the law as i said is already a problem in that you have heavy insurance regulation, 3 to 1 age banding. so you will make young people pay more to subsidize old people. insurance is expensive. we don't know what the rates will be under the federal exchange yet because you can't sign on and look at rates and shop until you create an account. >> so while there are questions for the administration worker if they are going to delay the law, there are those in congress,

well, stated on wanting to delay this individual mandate. one of them senator marco rubio says he wants that individual mandate delayed until the government accountability office can confirm the website is actually working. senator lamar alexander coming out with a proposal calling for regular progress reports on that website. as they continue, at least administration to try to fix these what are calling glitches and what many others are calling a lot worse. back to you. david: delay is what the whole government shutdown is all about. that is what republicans wanted. jay carney, is only person in the administration is suggest they're thinking about delay of administering individual mandate, same delay insiders got, corporations and unions. anyone else beside tim carney expected to come out or confirm it or at least thinking about it. >> what the white house spokesperson said, they're not even talking about officially delaying the mandate. they're not really saying all that much these can conceive as

the law is written if you can't get physically health insurance they see you not having to face the penalty because of technical problems. they're saying we have months to work this out. they defer a lot of questions to health and human services hhs isn't providing all that much more information than the white house is. we'll have to wait for secretary kathleen sebelius who is expected to testify next week. david: he has a lot of explaining to do. rich edson, thank you very much. good to see. >> rich, thank you so much. we're getting breaking news on corning after the bell. want to bring this to you now. long-term lcd display glass agreement between corning and samsung has been signed, it has been inked. it will go through 2023. talking about apple with the former ceo. samsung, biggest competitor and threat to apple. corning is saying they have sign an agreement with samsung. this additional $400 million investment in corning by samsung. this is preferred shares. this is redemption of stake. samsung displays investment in

convertible shares with companies with aggregate face amount. this is worth about $1.9 billion, this extension through 2023. david: you can see with the stock price after-hours, it is jumping 10% the value of the stock. we'll see if that value remains tomorrow morning. 10% jump in corning share as a result of this news. cheryl: the latest jobs report showing america's job machine is slowing so when will it pick up speed again? we'll find out what you need to know about the labor market and its impact on fed policy. david: also we'll be speaking to the ceo and founder of lending club about his bold ambitions. he is trying to shake up the whole financial industry. you don't have to go to banks. go to the lending club. get a loan from them. people loaning and people taking loans together, and you have got magic. we'll talk to him coming up. ♪ ♪

nice car. sure is. make a deal with me, kid, and you can have the car

and everything that goes along with it. ♪ ♪ so, what do you say? thanks... but i think i got this. ♪ [ male announcer ] the all-new cla. set your soul free. david: it is time for a look at today's market drivers. stocks pushed higher as the s&p closed for a record high for the fourth day in a row. material and consumer staples were the top performing sectors. the euro surged to the highest level against the dollar in two years o following lackluster economic data. euro broke above $1.37s in intraday trading against the

greenback. u.s. economy added 14thousand jobs while the unemployment rate ticked down to 7.2%. this is the lowest level in nearly five years. cheryl? cheryl: postponed september jobs report finally came out today and it disappointed investors who were expecting strong jobs growth. i spoke with thomas perez and i asked him about the government shutdown and how to get the economy on track. >> this was a manufactured crisis and it had a horrific impact. we should be putting our foot on the accelerator of growth. we should be passing immigration reform, the bill, other initiatives that would get people to work. david: manufactured crises. how many times did he say that? cheryl: five times. turning it into a drinking game after the show today. david: what kind of lasting impact will the shutdown have on our economy, partial shutdown anyway? joining us is nariman behravesh, ihs chief economist.

nariman, i want to talk about one figure that really is striking when you look what happened to labor, to the unemployment rate in america since president obama took office. that is the labor force participation rate. look at this. this chart is extraordinary. real dramatic downturn in lable -- labor force participation as newcomers can't find jobs and folks bowing out all together. what does that say to you as you look at the labor force participation rate? >> i think you're right to flag this number. this is the most troubling aspect of the labor market. when you have essentially all these disgorged workers, people giving up looking, to put it in the perspective, if the labor force participation was at levels five years ago and generated the same number of jobs the unemployment rate could be closer to 10 or 11%. we've gotten a break, if you want to call it that because that participation rate has dropped.

so it's a sign of distress in the labor market. cheryl: nariman, i asked that to secretary perez, he thinks the labor participation rate was doing well. he felt it was strong. that is what the fed is going to look at when it comes to evaluating the bond buying program. if you were inside the fed's mind right now, what would you think about that rate in particular? >> good question. i mean clearly they're looking at that rate but they will also be looking what happens month to month in terms of the payroll employment which is independent of that participation rate. and there too there is a lot of confusion. as you said earlier, very mediocre number for september. the october number will be down quite substantially. then it will probably bounce back up in november. the question is, what is the fed looking at? what should it look at? i think it will give the fed a lot of pause here in terms of not really knowing what's going on in the economy. david: how does the fed continue a policy, all this money-printing, that will have a portfolio of $4 trillion pretty

soon, how does it continue, how does it justify continuing it when the unemployment rate, the really important parts of the unemployment rate are not that much better? >> well that's a good question. i think that's what they're struggling with. clearly some members of the fomc, the federal open market committee are very worried about the potential inflationary impact of all this bond buying, while others say, maybe, we're in this situation, maybe now is not the time to start tapering? so they're caught. they're basically stuck for the moment. cheryl: nariman, one of the things we're now focusing our attention on the november rate, that is when we get the october report. white house council economic advisors mr. fuhrman saying, it will be about 120,000 jobs missing that would have been there for october, if it weren't for the partial government shutdown. is he on to something, maybe higher? >> that is as good a guess as anybody's. it will be a big drop. it will be temporary but it will

be a big drop. the question is, will all the jobs come back in november or will only some of them come back in november as businesses sort of stay cautious? that to me is the more interesting number of the we know october is going to be down quite a it about. the question is, what's november going to do. david: finally growth. the fact is we'll not be employing anybody if we don't grow faster. when do we get a gdp growth of above 2%? >> the earliest i think we'll see that would be the first quarter of next year because the third quarter is going to be very weak. we'll get those numbers soon. the fourth quarter, one 1/2% is our estimate. so, second half of 2013, very weak as you're saying. so the earliest we can hope for over 2%, hopefully 2.5% is first quarter of next year. cheryl: fourth quarter will feel effects. you have a great point. nariman behravesh, thank you. david: thanks, nariman. >> thank you. david: he is a banking visionary on a mission to upend the entire

financial industry. the founder and ceo of lending club is here. he will tell us about his next big thing in just a moment. cheryl: call it the apple economy. we'll find out how the new ipad air and other gadgets will boost apple's suppliers. which companies will benefit the most. that is coming up. ♪

stick with innovation. stick with power. stick with technology. get the flexcare platinum. new from philips sonicare. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the

mid-size price. (aaron) purrrft. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. at od, whatever business you're in, that's the business we're in with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises.

cheryl: consumers struggle with high interest charges from banks and low earnings savings account many look for lower cost alternatives. one of the cost alternatives is pier to peer lending. david: interesting idea. lending club brings together borrowers and investors is expected to more than double its revenue from last year. could this threaten traditional banking? joining us now is renaud laplanche. lending club founding and ceo. i appreciate it.

when i described your idea, the idea of lending club to people, what they often say to me how do you insure the borrower's credit? what kind of process do you go to make sure you're not turning a lender on to somebody who is a deadbeat? >> now, really the borrowers who come to lending club do not come to us because they have been declined by the banks. so we're already providing a more mainstream alternative at a lower cost to consumers who have good credit and have banking relationships who could take a loan from their bank. we come to us because we're lower cost and can offer a lower interest rate than the banks do. cheryl: so, there is a screening process in place. i'm assuming there would have to be. after the first of the year you will start small business loans as well. is there, are there those though on the other side of this willing to loan to small businesss? that will be much more than say

a personal loan would be i assume? >> that's right. very stringent screening process right now on the consumer side. we'll talk that same process and adapt it to the business side when we haul our small business lending program next year. very, tremendous amount of interest from investors on both sides in the current very low yield environment, investors, have appetite for investing directly in consumer credit or commercial lending as an asset class in a way very transparent and very, very low-cost and really use lending club as a conduit to directly access consumer lending or commercial lending. david: right. since you charge interest rates at 6% or something like that, you can make money if you're investing your money, or loaning it out to people but again getting back to question of default and the possibility of

default, if a borrower does default, are you in any way liable? >> no, lending club is not liable for default. we're responsible for underwriting and prying loans. we make representations to investors that the screening process as described in our offering documents has been applied. but then, after that it varies. a percentage of default that we'll inevitably occur. so we are really responsible for screening borrowers, making sure the credit policy is applied in a disciplined and rigorous way. that being said, investors earn yield on loans but also take the risk of default. cheryl: renaud, i would have to think you have worked over the years, you launched in 2007, to establish good relationships with the fdic and the sec, but do you ever worry in the new

regulatory fire pit we're sitting in, especially of washington, that the government could change their mind about lending tree, that the consumer protection bureau could come after you? do you ever worry about that? >> i'm certainly vigilant about any change of heart in washington but so far the feedback we're getting, regulators love what we do. we make credit more affordable for consumers and do so in very transparent way, a way that is very responsible. it's a low rate and it's a fixed-rate that doesn't reset under any circumstances and with a straight line amortization of 36 equal payments over a three-year term loan. so it is very predictable, very easy to budget for. this is done in very transparent way. we're doing a lot of things regulators would like banks to do. david: renaud, very quickly, i know there is a lot of crony capitalism with the banking

industry inside the beltway. i'm just wondering you pose a threat to a lot of traditional bankers and their lending business. have you seen any signs they're trying to get you, trying to use their political cronies to go against you in any way? >> we haven't seen any sign of that. i mean really again those regulators are also very much in favor of what we do. at the end of the day we make credit more affordable and more available to small businesses in this country and, that is good for the economy. that is good for job creation. so it's, we're, we expect would continue to get the full support of the regulators and the public opinion. david: gotcha. cheryl: thank you very much. david: great concept. thanks, renaud. appreciate it. we already discussed what apple's new products could mean for the company and investors but what about the suppliers? we'll take a look at the likely winners and losers on that ground when we come back.

cheryl: apple event in san francisco kicked off today with ceo tim cook announcing new mac books and ipads. how will apple major suppliers

benefit? david: jo ling kent with the numbers on that. jo? >> tim cook repeated number we've been reporting for a long time. iphone 5s, 5c sales were best ever, nine million units. suppliers are definitely enjoying a windfall. look at arm holdings which dominates the global processor market for tablets and iphones. net profit up 17% year on year and record order backlog up 3% from second quarter. revenue was up 27% year on year. other apple suppliers at the close today, qualcomm, broadcom, micron technology and sandisk a little bit mixed. companies in klein are certainly well. foxconn and pegatron which make the iphone, they log ad 20% year on year jump in sales in september. hand-sets exported from china rose 30%. these results loop back to help apple because of great numbers.

societe generale upgraded apple shares to buy from a hold. correlation between iphone sales and chinese export values bodes well for apple stock. cheryl, dave. david: thanks very much, jo. we're a week away from halloween but hardcore fans taken a passion to pumpkin down to entirely new level. cheryl: how is that even possible? >> we'll explain how. cheryl: facebook and twitter question, did apple release anything today to buy an apple product or stock? your answers are coming up. ♪ my mantra?

always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as uneected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and meditions. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarg or painful breasts; problems breathing while sleeping; and blood clots in the legs.

common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about e only underarm low t treatment, axiron. [ male announcer ] once in a while, everything falls into perfect harmony. [ engine revs ] and you find yourself in exactly the right place at the right time. just be sure you're in the right car when it happens. the 2014 c-class sports sedan. power, performance and style in total alignment. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.

ask me what it's likez to get your best night's sleep every night. [announcer] why not talk to someone who's sleeping on the most highly recommended d in america? ask me about my tempur-pedic. ask me how fast i fall asleep. ask me about staying asleep. [announcer] tempur-pedic owners are more satisfied than owners of any traditional mattress brand. tempur-pedic. the most highly recommended bed in america. now sleep cooler with extra cooling comfort on our bestselling tempur-breeze beds. visit tempurpedic.com to learn more, and find a retailer near you. help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap

and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger. >> let's go "off the desk." tucson-based world view enterprises is developing a balloon system that will transport eight people in pressurized capsule up to altitude of 19 miles. they could begin flights in 2015. will be 75,000 per person. david: what? why would you want to? >> i kind of do. david: you would pay 75 grand for that? >> somebody else would have to invite me. david: oh i see. you're an expensive date. >> sir richard branson virgin galactic markets will be a lot more. 250,000. david: so that is cheap. half the price.

"off the desk", divers get a head start on halloween by competing in the 16th annual underwater pumpkin-carving contest in the florida keys. it attracted 30 diverrers from all over country. 30 feet to the bottom of the sea. top heights to the low bottom. winning carving was pumpkin wearing sunglasses and retainer made by mother daughter team. >> will apple release anything today that makes you want to buy an apple product or the stock? jim said, on facebook, another boring apple release. david: ouch! >> no innovation. esoteric output. david: crude fell further below $100 per barrel for the second day in a row on speculation that supplies rose to 3-month high. the discount to brent was steepest since ape? how low will oil fall? we'll watching. >> number one thing to watch is earnings. three dow components will

release results which could be a primary factor in the index. dell and at&t will be after the bell tomorrow. we'll be here. david: we'll be watching rates by the way. mooney with melissa francis is next. melissa: i'm melissa francis and here's what is "money" tonight. when would you pull the plug on a big costly project? have we learned anything from the online health care exchange debacle? sometimes you have to just say stop and forget the time and money spent. this is a disaster. we'll tell you how to know when it is worth it and when to just wait. plus martha stewart make as deal with jcpenney and macy's and avoids the judge's ruling but has her brand paid too big of a price? it is all the word on wall street. we have background story. "who made money today"? they are cashing in and saving soldier's lives while they're at it. not sure who it is? even when they say it i