deal or no deal.... from wall street to main street.... citizens call on congress for a resolution to the debt crisis. in today's cover story....inside the fast food fight... the realities of low wages and the workers desperate for change. plus....in light of a shaky economy....the sector thats not sweating it.... and... manner-isms. an etiquette guru tells us if holding your tongue can payoff at work... first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's wednesday, october 16th. i'm angela miles. in today's first look: the u.s.on ratings watch. fitching ratings agency warns

the united states "triple a status" could be soon be downgraded because of the debt ceiling gridlock. stock were on a roll-- but stumbled yesterday after the house the dow fell 133 points, the nasdaq 21 and s&p slipped 12. gold edged up $3 and oil down a buck 49. in earnings after hours-- intel beat wall street estimates but failed to confirm growth in the 4th quarter. yahoo topped earnings by a penny on revenue that was just barely shy of expecations. a financial times report says amazon is creating a smartphone with htc. and twitter chooses the new york stock exchange over the nasdaq for its ipo. alan knuckman of trading advantage joins us now. alan, you are watching the d.c. drama. good morning to you. what does the market think? > >actually that's the only thing we want to focus on. focus on what the market's telling us. opinions and people's emotions don't matter. you don't make money predicting events. you make money predicting where you think the market's gonna go and

using good risk reward and going after the opportunities when they're there. so we have to learn to look through these kinds of crisis. obviously this is a big big issue but i think the market is really shaking it off. we made new 13 year highs in the nasdaq yesterday. and we saw the s &p come back where it was only down 1% from the all time highs even with this nonsense. > >we had some critical earnings come out after the close last night. intel and yahoo. let's start with intel. > >that's the great part of this time of the year. we 're looking at the fundamentals that are gonna slap us in the face with how well corporations are doing. again, corporations are different from the economy so they're doing fantastically well. intel blew out numbers as did yahoo. if you look at those stocks, especially yahoo, it's come a long way. it traded between $10 and $20 for 4 years which targeted a $10 move to 30. so 30 is the price of the lean on and it's blasted off above that once again. > >is this a time where traders want to be fighting the tape though alan? > >i think unfortunately that's human nature. people are trying to find a reason for this market to go down and they've been doing it for 4 years. a lot of casualties have occured because of that. you've gotta go with what the markets give you. buy good companies and good

support points and see how they hold from there. as opposed to what we've seen here recently when people sell into a hole thinking the market's gonna go down a lot further. the market comes rallying back as we've done 4 years in a row. the earnings numbers are exceptional and corporations are doing very well. > >always a pleasure alan. thank you. > >thank you. it's down to the wire for lawmakers. after midnight tomorrow, the government will reach the debt ceiling and be unable to pay down its bill. last night -- house republicans planned to vote on a revised budget proposal supported by house speaker john boehner. it included re-opening the government and averting a debt default-- but also tied in an obamacare provision. "this is so disappointing. on the eve of financial destruction for this great country -- and that's what it is is -- to apease a small group of people over there, it is so disappointing." democratic senate leaders were especially disappointed with the hous bill--after pounding

out a bi-partisan senate compromise budget deal that would fund the government until next year and avert a debt crisis-but was not tied to obamacare. according to fox news-- house leaders abrutply postponed the meeting last night that could have moved the gop proposal forward -- because it lacked the necessary votes. the president has said he is optimistic lawmakers will reach a last minute deal. across the nation, citizens are urging lawmakers to come to an agreement. veterans gathered yesterday at memorials in d.c. and indianapolis, calling on the government to end the shutdown. at an indianapolis rally -- protestors said the standstill in washington is putting added financial pressure on disabled veterans. "disabled veterans are rightfully worried. as they watch the days go by without progress towards a solution. all they have been told is at the end of this month, their disability and pension payments which are due under the law, could disappear. "

in chicago...federal workers also made their voices heard. "at this point, i'm holding them all accountable. the biggest obstructionist is the tea party. if speaker boehner would just hold a floor vote on a clean cr, it would pass." federal workers in chicago say they'll continue holding demonstrations until the impasse is resolved. as the u-s congress tries to find a way to avert defaulting on its debt -- the world's central banks are heatedly preparing for that possibility. if the u-s stops paying its bills it will thrust the world economy into uncharted territory -- specifically greatly devalued treasury bonds and delayed payments. analysts liken it to a much larger version of the government shutdown. many of the world's banks hold large sums of u-s dollars as reserve currencies -- china holds $1.3 trillion, more than any other country. the government impasse could stall car sales. a survey by kelley blue book is tracking the consumer's mood in the midst of the government shutdown. 18% of potential car buyers are waiting out congress. the majority say the shutdown is not effecting purchase plans.

and 7% said they are rushing to buy. toyota is forced to drop the price of its hybrid prius model to try and spur sales. the japanese car maker will trim almost $5-thousand from the sticker price of its advanced plug-in hybrid. toyota is not alone -- ford, general motors, honda and nissan have also dropped prices on hybrids. german chancellor angela merkel is in the hot seat over a donation from bmw shareholders. according to reports -- merkel halted new regulations on car emissions standards after the chancellor's political party was given a large donation from 3 bmw shareholders. the opposing party said halting the new emissons rules directly benefits german automakers like bmw and volkswagon. the german government contends there is no connection between the regulations and the political donation. onto the distressing story of cattle catostrophe in south dakota. an epic storm of rain and snow nearly 2 weeks ago killed tens of thousands of cattle. many of the cows grazing in summer pastures when the blizzard came out nowhere--

were trapped in mud, froze to death or suffocated under snow drifts. as the grim task burying the cattle gets underway. we turned to a cattle futures trader a who grew up on a farm. "we had a farm, we milked cows, we had a dairy farm as well as a beef cattle farm. these animals are all tagged and everybody knows what animal is which, the good producers, the bad producers and you can't help but get attached to some of 'em even though you know they're going to slaughter some day. so, can you imagine walking out in the field and finding 250 head of cattle, all dead?" "to compund it we have the government shutdown, so we don't really know how many cattle have been affected. we don't know what the losses will be and even if we did then we couldn't get these people any type of reimbursement if there is any type to be had." ranchers are out million of dollars because of the loss of livestock this year and won't have as many calves to sell next year.

more than half of fast food workers require help in the form of public assistance to get by -- this according to a new report. and as our cover story explains, that help, paid for by u-s taxpayers is in the billions. it did not take long for fast- food workers and supporters to embrace a study that found the 200-billion dollar a year fast- food industry pays poverty wages to its workers. "it's hard to make a living in chicago off $8.25." "it's a shame that i've got to live off public aid and medicaid." "this is an issue of humanity, morality and who we are as a society." the report by researchers at the universities of california and of illinois found fast food's median wage is 8.69 an hour. that only 13% of jobs provide health benefits. and that the public cost to taxpayers is seven billion

dollars a year---more than half of it for medicaid and children's health insurance. and an irony not lost on researcher---more than a billion dollars a year in food stamps go to people who prepare and sell fast-food. "if you have an economy that doesn't pay enough, somebody has to make up the difference. the report says low wages is the norm in our labor market." a companion study by the national employment law project found mcdonald's the most costly fast food company for taxpayers. low wages and lack of benefits leave taxpayers contributing 1.2 billion dollars a year in public assistance. we asked mcdonald's officials last month if there were plans to raise wages to anywhere near the 15 dollars an hour sought by workers. "we are in many cases, paying above minimum wage. our employees enjoy working for mcdonalds. (any plans to raise it to $15) thank you. thank you. ken jacobs, co author of the fast-food report said the affordable care act would help some of the current recipients of medicaid and children's health insurance but the conclusion is not that taxpayer assistance is too high but that

fast-food wages are too low. in earnings news, coca cola reported higher profits as the beverage maker saw sales increase, especially overseas. however, it did say current economic conditions are not so favorable right now. charles schwab soared yesterday to its highest level in five years, as the network said broker accounts were up 3% this year. at johnson and johnson, prescription drug sales helped outweigh lower sales of its medical devices. that stock hit a 52-week high of 94 dollars. public companies could soon become a little more private. mary jo white , head of the securities and exchange commission said in a speech tuesday that public companies are on "information overload." according to white, companies have been providing too many details about public offerings, and making it harder for investors to sort out the most relevent information. the s-e-c says changes to the process are expected soon. walgreens will soon offer a

pre-paid credit card. the card is part of several new financial services the drug store chain will offer customers. 60 million adults in the u-s have no association with a bank -- and walgreen wants to assist those customers. pre-paid cards have been criticized because of fees-- a report says other retailers may also eventually come out with the cards. apple makes another big hire from the world of high fashion -- this time it's angela ahrendts, chief of britain's burberry. this comes at a time of speculation that apple is readying the launch of a smart watch. ms ahrendts new title is senior vice president of retail and online sales. she'll begin work in the spring of 20-14. apple stores are key to the company's success. it is estimated that each location brings in about $50-million per year. shares of diet drug maker arena pharmaceuticals are plumping up. the stock gained more than 5% yesterday on word arena will double its sales staff to 400 by december. beliviq hit the market in june after becoming

the first diet drug approved by the fda in more than a decade. airlines seats -- getting smaller yet again. newer, slimmer models are replacing older bulkier ones and that is allowing all the major u-s carriers to squeeze in more seats and passengers. the slimmed-down seats mean five or six more seats per plane. the seats are about an inch closer together (front to back) -- but because airlines are re- jiggering where tray tables and magazine pockets go, the claim is that passengers won't notice. still to come: is the world's largest retailer--preparing for the worst? plus...why being polite at

office could pay off. and forget the doomer gloomers-- the group of small business owners who are thriving in the current economy. details are -- next. for cleaner air and your right to breathe it. for those who want to quit smoking and for those who need them to. we're fighting for clear skies over every city and healthy lungs throughout the country. the american lung association isn't just fighting for air. we're fighting for all the things that make it worth breathing. join us in the fight at fightingforair.org. from coast to coast, cops are ccking down... on seat belt violations. buckle up, day and night, or expect a ticket.

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corporate america is very focused on the all important 4th quarter. the holiday season can bring a major boost to companies in several sectors- but it all hinges on the consumer. joining us now by skype--- kathryn petralia she is coo and

co-founder of kabbage. you're here with the results of what companies are telling you. what are you hearing? what are they saying about the consumer? > >are customers are expecting a very strong holiday season. all of our customers are small business and they depend on the holidays to make their numbers. 4 out of 10 of our customers are expecting their growth to be 20% higher than it was last year. > >why so optimistic? aren't they nervous? > >i think part of it is the strong season they've already had. the first 6 months of this year 70% of our customers said their sales were higher than they were the year before and they anticipate that to continue. > >there's many people out there that feel that the economy is struggling. how are they able to surpass that? > >i think a lot of it is that many of our customers are in retail. and our customers--- many of whom are e-commerce businesses. you're seeing a huge growth in e-commerce year over year so they're benefiting from that growth.

> >what about corporate spending? do they tend to do a lot of spending as more money is coming in to build up their companies? > >well, certainly and especially retailers. the number one use of proceeds that we provide is to buy inventory. then hiring seasonal staff and investing in marketing programs---are the key ways they spend their funds. > >as they invest more in their companies, what is that telling you about the economy overall? > >it's telling us in the segments that we serve that the economy's definetely growing and consumers are buying. > >and do you think this will continue beyond the 4th quarter? > >we anticipate that next year will be just like this year even though there were a lot of doom and gloomers in the beginning of 2013, we saw our customers businesses continue to grow and we anticipate that will happen in 2014 as well. > >a good area to be in. thank you for your time today kathryn. > >thank you. angie -- not everyone is as optimistic. wal mart has revealed it is lowering its full year sales outlook due to concerns of a slower holiday sales season. the ceo of the retailer cites "the tough and unpredictable global economy." wal mart is also unveiling a new strategy : shrink its stores. it will open a number of

smaller stores as it tries to grow its network. some walmart's larger stores will serve as warehouses. thanks chuck. coming up...how one trader is toying with mattel ahead of earnings. and-- office etiquette...are we losing our manners in the work place. miss manners joins bill moller to set us straight after the break.

th a deadly disease. i was one of them. i'm a nurse and i knew how damaging the disease was to my life. nothing i tried seemed to work. my brother died. from complications of the exact same preventable disease and i knew i had to do something to get healthy. my disease was obesity and after consulting with my doctor, i received the effective treatment i needed. obesity is a second leading cause of preventable death in the united states. but it's a treatable disease, and there's effective treatment options available.

now is time to get help. please join the obesity action coalition and acknowledge obesity as a disease for acceptance, for access to all effective treatments, including diet and exercise, pharmacotherapy and weight-loss surgery for obese adults with at least one obesity related comorbid condition. visit obesity action dot org and sign an open letter pledging your support and for more information about how to talk to your doctor about your weight and your treatment options. together we can make a choice to end obesity now. a public service from the obesity action coalition. miss manners - hard to believe

she's just penned her 17th book. she did it with her son. it's a business book. "miss manners minds your business." judith and nicholas martin, welcome. > >thank you. > >this book to me reads like a comedy book. have you guys ever done standup? > >our lives are standup. you can hardly do this sort of thing straight. > >it's funny how little people

know and how important it is that you set them right. but in the business world, we have no idea about the proper etiquette for how to conduct business. > >not only that, but it's all been reversed. so people are using their social manners in the office and their business manners with their family and friends. and we're trying to move them back into the proper spheres. > >what are some of the errors that people commonly make in an office setting? > >with thanksgiving coming up, we're going to have i'm sure many questions about people who are texting and answering job emails at thanksgiving dinner. or who are absent because they claim they have to go to work that day. > >what is your advice? > >our advice is to make some time for family as well. > >and the peculiar thing is that at the office when people want to get out of these endless parties, the showers, the engagement parties for people they hardly know they ask us for an excuse and i say how about---i have to work. they

don't think of that. but that's the excuse they're using with families and friends. that's what i mean by the reversal. > >judith, are there any kind of universal truths about manners that we should consider to be a guide? > >i make a dinstinction between manners and etiquette. manners are the universal truths. that you should treat other people with consideration, you should get a grip on some of your more repulsive impulses so that we can live together peaceably. but etiquette is particular rules of a particular society or a segment of a society at a particular time. > >nicholas, when you grew up was she a pretty tough taskmaster around the house? > >not at all. manners is a language. one of the things we discovered with the business book is how many people don't speak the language. it's hard to communicate if you don't. but growing up i was used to it. it was how we conducted ourselves. > >it's very natural. well, here i am in my tennis shoes talking to you both. > >we're too polite to notice. > >thank you very much. again, it's miss manners minds her business. judith and nicholas, thank you so much.

thank you most kindly bill. still ahead in chart talk-- why traders are nervous about bank of america's earnings. that's next.

th a deadly disease. i was one of them. i'm a nurse and i knew how damaging the disease was to my life. nothing i tried seemed to work. my brother died. from complications of the exact same preventable disease and i knew i had to do something to get healthy.

my disease was obesity and after consulting with my doctor, i received the effective treatment i needed. obesity is a second leading cause of preventable death in the united states. but it's a treatable disease, and there's effective treatment options available. now is time to get help. please join the obesity action coalition and acknowledge obesity as a disease for acceptance, for access to all effective treatments, including diet and exercise, pharmacotherapy and weight-loss surgery for obese adults with at least one obesity related comorbid condition. visit obesity action dot org and sign an open letter pledging your support and for more information about how to talk to your doctor about your weight and your treatment options. together we can make a choice to end obesity now. a public service from the obesity action coalition. james ramelli of keene on the

market dot com joins us now for an early peek at a couple of earnings stories yet to come today. good morning. > >good morning. > >let's start with bank of america. the market appears to be nervous about these earnings. > >we are seeing a bit of put buying in bank of america ahead of their earnings report. that's normal. anyone who's long in the stock might be buying some protection against their long stock position. but why is it they are nervous? looking at historical movement in bank of america, it sold off five out of the past eight quarters with an averag move of around 3% and there is some recent weakness in the chart. i think on a risk vs. reward basis this one is setting up much better for me for a short better than a long going into earnings. we saw citigroup and jp morgan come in a little light. i have a measure move target down of around $14 looking at the 14 half 14 put spread for around 20 cents for this friday's expiration. i can double my money if the stock trades below 14 on friday. > >and no signs of a breakout then james?

> >i don't think so. we've had some pretty choppy trading in a lot of the financials due to this shutdown situation. i think that there will be pressure on the banks tomorrow if bank of america comes in light and especially if we still don't have a shutdown deal. > >and a quick peek at mattel. > >looking at mattel we see a completely opposite story from bank of america. the stock has rallied 5 out of the past 8 quarters with an average move of around 5%. i have a measure move target for this one above 44. so i want to look at the 43- 44 call spread in mattel. strong looking chart. i'm gonna buy this for this friday for 30 cents. the most it can be worth is a dollar so i can double my money if the stock trades above 44 on friday expiration. > >that would be a good rally for that stock. thank you so much james. > >thank you. as we fly out of here for today, be sure and join us tomorrow to find out why the gravity is turning into an out of this world experience at the box office. from all of us at first business, thank you for watching.

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