. this is "nightly business report" with tyler mathisen and susie gharib. interactive financial tools for an ever-changing financial world. our dividend stock adviser guides and helps to generate income during the period of low interest rates. >> stocks sink, as equities burn, how the budget standoff, the market and consumer confidence and your money. what should you do? or should you just sit this one out? >> open enrollment, tomorrow is the new day, so what does the individual health insurance mean for you, should you get it from

your company? and rising tide, insurance premiums are set to skyrocket, so will the very thing that is designed to protect business owners, and that and more on nightly business report. i'm sue herera filling in for susie gharib. there was a lot of fear on wall street, with a possible government shutdown, the stocks sank lower as the investors worried about the impact on the prolonged shutdown on the economy and the consumer confidence. that weighed heavily on the markets today, the dow closed off the lows on the session, but still lost 28 points, the nasdaq and s&p lost about 10 points. despite that the major markets close out september and the third quarter of the year with

solid gains, the dow up 1.4, the big point, nasdaq shooting up 10% in the past few months. more on the battle of the shutdown as we inch closer midnight, eastern time. the republicans sending a bill back to the senate delays the portions of the affordable care act for another year. earlier senate democrats killed a very similar proposal and are expected to do the same thing again. following a meeting with the president of israel, president obama made a statement in front of the white house. >> all of this is entirely preventible if the house chooses to do what the senate has already done. and that is the simple act of funding our government without making extraneous and controversial demands in the process. the same way other congresss have for more than 200 years. >> and earlier today asking

about whether a clean cr or a continuing resolution to fund the government with no exceptions would pass in the house, house speaker john boehner had this to say. >> with the clean cr off the table, is that not going to happen? >> that is not going to happen. >> that will not happen tonight before midnight, or it is not going to happen ever? >> the house will act this evening and we'll send it over to the united states senate. >> so with the deadline and a partial shutdown looming, you may wonder what stays open, what closes and what federal workers will be affected. >> reporter: the federal government will not completely shut down at midnight, but museums, national parkss like t liberty will be closed to the public almost immediately. that is what happened back in 1995 when the government was shut down for 12 days.

some will be closed, including 8,000 defense civilian employees. >> each agency has kind of had to go down its roster of people and decide who are the important people who still have to come to work and who are the lesser people that can be furloughed? >> once the shutdown starts, there is a question on what is viewed as nonessential to protect life and property. the financial markets could get a surprise, friday's release of the job labor statistics will be postponed if the shutdown lasts through friday. >> there are various administrative tasks, the latest periodic government reports that were not judged to be essential. so those are things that people will start to notice right away. >> congress and the white house do agree that it is essential that social security and medicare benefits will continue to be paid. and those checks delivered by the postal service. some 1.4 million active duty

military personnel will remain on duty worldwide with full pay. air traffic controllers and tsa screeners at airports will remain on the job for security and safety reasons and also not to harm a key sector of the economy. of course, the real harm to the economy depends on how long the government shutdown lasts. something lawmakers may want to think about between now and midnight. for nightly business report, i'm hampton pierson, in washington. and there are others that could be hit hard by the shutdown because they depend on it so crucially for their sales, take lockheed martin, and ratheon, and general dynamics, and life sciences, as are providers of care like molina and well care, which rely

heavily on government contracts. >> so joining us now to talk more about what a possible government shutdown could mean for the markets and how you should protect your investments, the chief investment strategist. thank you for joining us. >> thank you. >> how do you approach this possible government shutdown? do you, as an individual investor change your investment mix and how damaging do you think a shutdown would be? >> well, i think we're talking purely about a shutdown, and we're not addressing the larger issue, the debt ceiling in october. i think the affect on the economy is broader. it is not a good thing, coming when the economy is still trying to gather steam. but we're only talking about a modest hit to the economy assuming it only lasts a few weeks. some parts of the economy, arguably affected, another area

to watch for, consumption. we're at a point when the consumers are only beginning to get back on their feet. and the government shutdown, one of the risks you have is it will hurt the consumer confidence, which affects the markets, as well. >> and the volatility, is that a possible concern? >> yes, we have seen a rise in volatility, we have the implied volatility, which is below its long-term average, back when the close was 16 or 17, in the debate in 2011, the trade is as high as 40s. so we're a long way from that, but if the temperature rises in washington people worry about the debt ceiling and it is very likely that volatility will rise before it is all open. >> yes, the way it seems, the market will be affected by the

temporary shutdown, we did lose triple digits but it was much worse for the day. and they're focusing now on the debt ceiling, if congress takes this route what are the implications for the market? >> certainly, there will be an affect on the downside, the market can avoid a short-term shutdown, but if you get closer to october, the much larger issue of honoring the full faith and credit of the united states, if that starts to get called into question, that is a much bigger deal, and will have a much more volatile reaction. >> what should i do? if i have my equities at 40, 50% stocks and am relatively comfortable with it, is there anything i should do or just watch and see what happens? >> i think the short answer for most investors, you probably can't do a lot. we're continuing to believe it is a temporary phenomenon, we

have more patient investors. and this is not just tied to the continuing resolution, but also some of the broader trends. it probably is not a bad thing to consider international diversification. last week was the first time in a while that we saw flows out of funds while still seeing in-flows to markets. not that these areas wouldn't get hit by a more risk of aversion. but it does point out that there are parts of the world that despite the issue may offer some diversifications that are not seen in the u.s. >> thank you. we begin the focus tonight with the stock making new highs on a down day in the market. chipotle mexican grill, on the shares, increasing to $485 a share. the analyst says the company has the ability to continue raising prices and drive traffic.

the stock up 12% of 428.80. uni-lever warns that sales won't be as strong as expected because of the emerging market. include items like dove and ice cream. the stock fell about 3% to $38.58. boeing is focused on making its 787 dreamliners more reliable. the plane has seen a rash of issues since its launch, but a senior executive at the company calling it a teaming problem, not systemic. and there is a problem with dreamliner demanding that boeing repair it. and shares on hold, leaving the future of its most promising product uncertain. the fda citing liver issues,

when they issue a hold, a drug developer must delay or suspend its investigation into the drug. shares craters dropping to 52 cents. and twitter planning to sell stock to the public, now we hear the company could reveal the size and value of that initial offering as soon as this week. that is according to the news website quartz, which also reports that the micro blogging service is expected to be valued at up to $15 billion and could begin trading by thanksgiving. still ahead, on the eve of open enrollment, what does the new health law mean for you, whether you buy individual insurance and get is from your company or are on medicare. a look at the third quarter and investors. just one day today before

state health run agencies are open. and the new health care plan, all part of the affordable care act, part of president obama's new signature legislation, finally, they ask americans what they know and don't know about the new law. >> i'm happy with it, because i don't have insurance right now. so it definitely give me the impetus to make sure i'm efficient. >> i think it will affect my husband's company, he may have to let people go. >> little tough on the

physicians' sides, it increases access for patients to get care. >> i'm going to have to pay more money and get less benefits. >> i think it is a good thing. >> we'll have to see. i like the idea. >> so how do those insurance exchan exchanges really work? who should sign up and how do you shop for a new plan? and what happens if you don't sign up for an individual health insurance plan tomorrow bertha coombs has more. >> reporter: if you buy insurance on your own, here are things the think about. open enrollment starts and will end in six months, insurance coverage doesn't actually start until january so you don't have to sign up until mid-december, the analysts say take time to familiarize yourself with options like subsidies. you can only get them on exchange-qualified plans.

how do you know if you qualify for subsidies? subsidies in the form of tax credit are on a sliding scale depending on your annual income. as an individual you will be eligible if you earn up to $49,000 a year, just over $90,000 for a family of four. when it comes to the plan there are four premium levels for most people, ranging from top tier platinum, which covers 90% of the cost, down to the lowest tier bronze covering 60%, meaning you will have to cover 40% of the costs out of your pocket. for those under 30, there is a plan, subsidies are calculated on a silver plan level but can also be used to lower your premium for a bronze plan. if your employer provides your insurance, many obama care insurance has already been in effect like being able to insure

your children until age 26. if you're a small company with fewer than 50 employees, you will have options that are different, if you offer the mini med plans they no longer comply with the affordable care act because plans can no longer have caps on spending plans. which means if you have cancer or other critical care you can no longer access out. and enrollment will be the same through the new health law does cut out out of pocket spending for health care patients. $200 lower than last year. well, the health insurance exchanges are opening tomorrow, but there are many questions as to whether or not this health care model will work. we have two different points of view on this topic, johnathan gruber, a key architect on the

effort, and ed hasselman, a senior research fellow. mr. gruber, let me begin with you. i have tried for weeks now to get my head around these insurance exchanges and how and if they will actually work. it feels to me like an awful lot has to go right. did it go right in massachusetts? did they work? >> they absolutely did. i urge your viewers to go on ma-melt connecter.org tomorrow and see how the exchange works. it worked very well, it was hard work in the beginning, there were glitches. but it provided an organized shopping experience, that provides favor. it is an introduction into the insurance market and prices have grown slowly on the connecter. so i think it worked well and is a good shopping experience for consumers. >> and many worry is it too good to be true? and if it saves businesses money

will it cost me money, can you say whether or not that is indeed the case? >> yes, well, massachusetts is a different example, it was a very different bipartisan piece of legislation. it was a market this that was very damaged. most states are nowhere near as bad off asth massachusetts in terms of the way the market was. the problem with this model, start with the 4 to 6 million people who are going to be the obama care uninsured. you mentioned the people in the segment, the people who have mini med or the benefits plan, the law throws them off in january. how many people will sign up in january or will they go uninsured? i don't know, the other thing people have not looked at, they lo looked a lot at the coverage subsidies for the premiums, but not the subsidies for the cost-sharing. and what that does is turn these plans really into something that have very low cost sharing, but the only way to control costs,

it becomes to limit the network. so that is what you're seeing, plans offering limited networks and doctors and hospitals. >> mr. gruber, why don't you respond and just lay out the deal. as i understand it, the individual mandate is aimed at doing principally one thing and that is at compelling healthy young individuals, maybe the young to buy insurance, a group that typically says, i don't get sick so i'm not buying. >> the individual mandate is designed to do one thing, but i would design it differently. it is designed to allow america to move to insurance that doesn't allow the sick not to get insured. we passed a law to get rid of it. it messed up our insurance markets, you can't have your cake, which is fair insurance pricing, unless you eat your spinach, which is the individual mandate that guarantees everybody participates. in terms of the other comments,

what critics are doing are finding small pieces to pick on. focus on the big picture, the congressional budget office says it will cover 30 million americans and lower the deficit. it will do that by insuring all, we know that employer insurance will go down slightly. it will basically be a system where most americans will not see a change on january one, and others will see a huge benefit. >> basically, there are valid points on that, people who didn't have insurance before because of pre-existing conditions. >> this is very important, i wrote a paper on this, massachusetts is an example of what not to do. we successfully solved this problem in the hippa bill in 1996 with the group insurance, and all you had to do was cover the other 10% of the market, you could have fixed it, put everybody on the e insurance and fixed it. the problem was in the individual market, easy to fix.

look at what is going on in this market and that is one of the things i'm working on, is to see who are the insurers going in, who is staying out? the big insurers are staying in, the ones going out are the big medicaid plans and blue cross, that is who is offering coverage, i'll come out with an analysis of that once i have the data in the next couple of weeks, what is see already, that is who is going in there, offering limited networks. that makes perfect sense, because this is a bill that was really written to be a welfare program. it is more about that, than it is health insurance. >> so for people 2%, the poverty, others, like walgreens will go to private insurers, big employers, they will of opt out of this whole thing. >> all right, gentlemen, we'll leave it there. i guess time will tell, we'll get an early window, very shortly. ed hasselmeier with the heritage

foundation, we appreciate it. for more stories, head to our website at nbr.com. and tomorrow, we'll speak with the ceo of well point, one of the big players in the exchanges about his new expectations for the new health law. from health insurance to flood insurance, coming up, why some home owners and business owners could see their health costs go up. first, a look at the third quarter. encouraging employment news today as we head to the holiday shopping season.

macy's plans to hire 3,000 temporary workers this season, and game stop says it will need 17,000 additional workers this year with the release of new gaming consoles, the x box and sony's play station 4, it is already on santa's list in my house. mine too, and lawmakers working hard to keep a company from moving out of state. state officials proposed a 10% break on utility taxes for up to 30 years and some credits on income taxes if agriculture products giant archer daniels stays. they are scouting for new offices in places outside of illinois as it develops a new global presence. and it was less than a year ago as we felt sandy's wrath going up and down the coast, and the huge floods affecting the country. now, this year and next, critics claim that sweeping new changes to the nation's flood insurance

program will bring fan devastation to many americans living in and near flood zones, mary thompson has more. >> reporter: on october 1st, over 280,000 businesses and homeowners will be affected. >> a lot of these are mom and pop businesses, as we are, and they are just -- there is just not that much profit in them, and they will not survive. >> reporter: this insurance agent is one of the policy-holders. flood insurance premiums on his office building in louisiana set to rise 25% a year for the next four. his payments going up to $13,000 by 2016 as he loses his grants provided in the flood zone, these changes are a part of the waters act, raising premiums to better reflect flood risk and

get the program out of a $24 billion hole, homeowners like dan at the rockaaways in new york, hard hit by sandy, the maps re-drawn by fema put his home and tens of thousands of others across the country in high risk zones requiring far higher premiums. the premiums will become an unaffordable $20,000 a year. >> obviously, we live on the water. we know it is a risk. but the rates that we're hearing almost 10 times what i'm paying now, it is just impossible for us to afford that. number one. and to resell this house is going to be impossible. >> proponents say the change is long overdue, and critics say it leaves the homeowners with terrible options, pay off the mortgage so you don't need flood insurance, sell it it at a discount or abandon it altogether. they are protesting by directing their anger at fema, the anger

that the spokesperson said is misdirected. >> i have found very little leeway as much as i have tried, on how to find affordability as enacted. >> reporter: they fear the law will turn them into ghost towns. after 13 years at the top, coca-cola is no longer considered the most valuable brand in the world, that is according to an annual study by the marketing firm interbrand which ranks companies based on brand value. here is the list, microsoft, number four, ibm, coca-cola slipped to third, google with a brand value of $93.3, and the new king, apple, valued at $98.3 billion, i think i might have gone for google, because it is

the only one there where you can say i'm going to google that. it is is a verb. >> really, i counted the number of apple products we have in the house, all the textbooks are on apple. i guess they deserve it. anyway, thank you for watching, i'm sue herera, susie is back tomorrow. >> and i'm tyler mathisen, have a great everything, everybody, and we'll see you back here on october first. nightly business report has been brought to you by. >> street.com, interactive multi-media tools for an ever changing world. our dividend stock adviser guides and helps generate during a period of low interest rates. we are the street.com.