shallow, and you recover fairly quickly. in fact, if you look at shutdowns ten days or more, you see a decline about 2%, that is comparable to what we see today. there is no question that fear is intensifying here. i would use that as an opportunity to buy, not an environment we should be selling. >> carmine, we are not getting government reports, obviously, because of the shutdown but we'll start to get earnings reports starting tomorrow with alcoa reporting. will the investors be paying attention to those reports or just will they keep their sights on washington and what is going on there? >> it is going to be hard to shift the earnings, but nonetheless, in this particular earnings season, what we've seen in the past couple of months, the expectations have been chopped in half, it is now expected to grow 3%. if you look at the overseas

companies that operate domestically, you see it changing, with companies reporting earnings, showing a big improvement in earnings. and i think that will continue through this year. >> bruce casman, you probably heard about the debt default or the failure to raise the debt ceiling as bringing about the possibility of economic catastrophe. his words. do you see it that way? and would the failure to make good on the federal government's obligations even for a couple of days or hours, produce the economic catastrophe that so many seem to fear? >> i think we have to consider what actually happens. i think if we stop paying our bills and stop paying social security, defense spending, all the things that we do, we would over a period of a few weeks create a fairly significant economic damage that would be far worse than anything we're seeing right now. a day or two itself probably won't be such a big deal.

i think we have to recognize that. it is 3 to 4% gdp, to increase our debt. if we mention the debt payment, the interest or principal, i wouldn't want to hurt the impact of that. that is unlikely but it would be a very scary thing to have to experience. >> what about what all of this does to fed policy? does any of this change the calculus, especially if they're working in a vacuum with all the reports. what is your thinking, bruce? >> we think the fed made a determination not to consider this fed calculus, we think the length of the shutdown, the uncertainties, could push them back into next year. the idea that they tactically wait, and if the debt problems are behind us and they can get

back on track looks less likely with the extent of the shutdown and the data and the risk still ahead. >> all right, we'll continue to watch this closely, as i am sure you will, too. bruce and carmine, thank you for joining us, thank you, gentlemen. and china, the largest foreign holder of debt looming in on the crisis urging the lawmakers to do what they can to avoid a default. they are asking for concrete measures to raise the u.s.'s borrowing limit before the deadline to protect the safety of chinese investments. meanwhile, the government shutdown and the worker furloughs appear to be causing a problem in the housing community. some lenders and business operators warn they may not be able to work with the tax documents to make the home loans, and some home loans have

stalled entirely leaving them out in the cold. >> reporter: a partial shutdown at the irs threatens to shut thousands of borrowers out. >> this is just one more market trying to get its legs. >> reporter: most of them require the irs verifications. the irs is not providing that. lenders announced they would suspend the requirement, but this year they're using words like short-term. a wells fargo spokesperson said that the government shutdown will continue to be lie the circumstances. >> it is changing dramatically with each lender, each day, so each lender has to take a stand on what they're going to handle in the way of credit risk. >> low down payment loans insured by the government's fha are still going through, thanks to a largely automated system,

but only about 2% of the fha's staff of 3,000 are currently on the job. hardest hit are rural borrowers depending on the government's program. that is shut down, no loans, it is less than 5% of the market but a lot of these are first-time buyers who have no lender option. one of them posted the problem on youtube. >> we have a situation with a buyer, five kids, they are homeless, we can't get back negotiation material because of the shutdown. >> reporter: and as negotiations stall in d.c., so too, does the local housing market. >> i have had buyers decide to take pause, even though they know they're going to be ultimately be paid. they're nervous, they don't know how long this is going to last, and they don't know the impact as they get out of the market. >> as the shutdown draws down,

they are essentially doing no dock loans, the ones that crashed the market. all the mortgage safeguards from federal regulators go out the window. and the federal work stoppage is forcing the furlough of 2400 private sector workers at the defense contractor, lockheed martin, that is fewer than we first reported and told you about last friday. that is because the pentagon decided to recall 350,000 of its civilian workers over the weekend, keeping the work orders for the company in effect over the weekend. and manufacturer was the first to announce plans to furlough thousands of its workers due to the government shutdown. but now those plans have been scrapped entirely, and that is thanks to the same recall of civilian workers by the pentagon. and there is another drunk related to the government

shutdown that won't make the farmers happy, they won't issue the key crop report because of the furlough of hundreds of usda workers, the employees missed out on daily reports of livestock, grain reports, milk production and other metrics used in the monthly crop report. it is the first monday in october, in the supreme court, hearings began today on a handful of cases watched closely by wall street and american businesses. hamton pierson has more. >> reporter: the supreme court is open in spite of the government shutdown, six cases on the calendar, mccutchin versus the federal election commission is at issue. the limit is over $123,000 in a

two-year federal cycle. if the challenger wins, individuals could contribute millions. meanwhile, the robert's court could venture into uncharted territory, when the justices take up the issue of resources. a lower court said president obama went too far when he named members of the national labor resolutions board,ñi a and installed richard cordray back in 2012. >> the practical effect is that the court has the opportunity to decide what the recess actually is, is it any break -- during a session of congress or is it only breaks that are between the enumerated sessions of congress, which are typically in december, january of each year. >> the power of the environmental protection agency to make rules governing greenhouse gas emission is on the radar screen.

two cases focusing on pollution across state lines are on the december calendar. meanwhile, billions are at stake regarding the clean air act. thomas lorenzen says it is the environmental issue of our time with more cases to come. >> epa has been trying to deal with how do you assess the state's fair share with other contributions to the state's pollution and how far can you go to make the states address that? >> other high profile cases are michigan and a ban at universities, buffer zones for protesters outside abortion clinics are all on the calendar. >> the supreme court is open for business this week, despite the partial government shutdown. but what happens to the court calendar next week is still very much in the air. for nightly business report, i'm

hampton pearson in washington. and first time the international markets close. t . j.p. morgan chase is still fighting from the fallout from last week's so-called london. they denied information that they manipulated the creditor's markets, by responding, the commodity's trading market can either sue j.p. morgan or try to settle with the bank.

and in 2014, united health care is adding walmart to the sam's club warehouse to the preferred pharmacy network that begins next year. and it has been one year since the marketplaces, all part of the affordable care act, the planning and preparation, they're still working through glitches and error messages. >> reporter: josh and emily ostein have been trying to create an account. >> we have been trying to create an account, they say the user word is incorrect, the pass word is incorrect. >> they both work in the health care industry but will lose their health care in january, they're anxious to get their plan resolved.

>> this reminds you of different things our clients go through daily in applying for different types of services they want. >> new jersey is one of three different states on the federal exchange, after taking parts down over the weekend, officials say wait times were cut by 50%, but they still have more to do. >> folks are working on it 24/7, tomorrow will be better, next week will be better. >> i.t. says there are flaws in the code system. >> they didn't have an adequate plan for the people trying to get in, we have a capacity issue, that makes the codes inefficient, it makes things slower. apparently there could be parts of the site that just don't work yet. >> federal officials say the site will be taken down to add more hardware, and software, but experts say it is no easy fix. >> the front end, they are sort

of aesthicits. >> reporter: emily and josh are trying to be patient for now, hoping at some point they will get through. >> it is a big program, there are complications in the beginning, i'm anxious to see what is out there and if it could help us. >> bertha coombs, new jersey. and a major deal in japan. the european aircraft maker air bus secured their first order from japan earliy airlines toda, they will design their models worth 9.5 billi$9.5 billion, th competitor to boeing, boeing

shares are down to 116.69. and cooper tire and rubber falling sharply and more uncertainty surrounds the deal with india's apollo tires. they agreed to purchase it for 2 billion, now they are seeking a price reduction because of labor relations in the u.s. and china, cooper says make good on the contract. shares are down to 25.72. shares on blackberry rose as talks happen with google and sep for a possible sale. this could be an alternative for the potential agreement between blackberry and financial, the report shows shares up to $7.97. shares up for pacific, after the company agreed to sale its juicy couture brand. the sales have plummeted in recent years, the plans to sell

them to focus on growing. shares are up to $25.71. decker tumbling on a warning about sales trends for the company's ug brand. the stock ended in session lows on more than double the volume. deckers tumbled to 53.07. and hedge fund manager carl icahn tweets he may have conversations with management regarding strategic alternative and board seats. the stock rose sharply after hours of closed regular session, up 4.5%. and stocks already getting their first buy rating. the analyst robert peck from sun trust robinson humphrey recommended his clients buy shares from twitter, saying they will trade at 50 apiece next

year. why the rosy outlook from a stock that has not been priced yet. >> you got into double margins. they have invested heavily. i think you will see more of the profitability come out now over the coming years. and sun trust bank is not involved in twitter's initial stock offering. if you're looking to trade in your older iphone for a new one, two major stores made it easier, walmart and iphone, this is the one with the plastic backing that comes in five bright colors there. starting saturday, radio shack customers buying a 5 c will receive a $50 gift card used for their $90 phone. walmart is lowering its price to $40's saying the discount will last through the holiday season.

apple getting the all-clear about the handling for billions of cash and related taxes overseas. four months after opening their books, the agency is takes no action against apple, finding that its disclosures are sufficient and in line with tax regulations. coming up on nightly business report, california's monterey shale is four times bigger, many hoped it would be the economic gusher, reaching the oil is tough and just got tougher. we'll explain in a moment. but first, how commodities and treasuries and currencies perform today. good news for drivers,

gasoline prices falling over four cents a gln over the last two weeks, in jersey, i saw it for 3.09. >> one reason why energy prices are lower than they were in the past is because the u.s. is now producing more energy than ever. but some of the nation's biggest underground reserves has gotten more costly and harder to get out of the ground. >> reporter: california is in the middle of an oil boom which could grow if wells can reach oil trapped thousands of feet below the surface in the monterey shale. >> well, we're looking at a typical drilli ining rig. his company searches for oil, thought to have four times more crude than elsewhere. they are using fracking, but it

has proven difficult and expensive. >> an operation a lilike this, depending on what they're doing at that particular point of the well can be at 2 or 300,000 a day. >> a day? >> a day. >> reporter: but while traditional pumping continues, the cost of fracking goes up california has just passed the strongest law in the country. which allows them to list the chemicals used, and monitoring the water and seismic activity. >> one thing we'll see is more extensive pre-and post testing of the water activity. >> they are trying to balance the minerals without killing the golden goose, although the new laws could slow it down and could make it too expensive to drill. >> we have the monterey shale, there are potentially 15 billion barrels of oil there. it is coming up with the

technology that we need to go and get the resource. >> in places like king's county, they're hoping for more jobs related to the shale. so far, not so much. environmentalalists say the new law doesn't go far enough, they wanted a moratorium on fracking, but the industry argues they have been fracking for many years without problems. now they have to decide if it is worth it to dig so deep in the earth which may not give up the oil so easily. finally tonight, if diamonds are a girl's best friend, this will get somebody a lot of friends, a flawless white diamond about the size of a small egg auctioned off in hong kong today for a record-breaking price of 36.6 million, which is on the low end of the estimated sale price. susie was not bidding, that is

the problem, we know that large collectible diamonds like this have seen big increases as some of the richest people in the world have turned to jewels as investments. >> not just investments, they're fun to have. >> that is a rock, when it is clear like that it goes with everything. >> you know, there is a pink diamond just in case you want to think about joanne in november -- >> 59 carats. >> let's get our money together. >> that is nightly business report, i'm susie gharib. >> nightly business report has been brought to you by street.com. interactive financial multi-media tools for an ever-changing financial world. our dividend stock adviser guides and helps to generate income during a period of low interest rates. we are the street.com.

>> closed captioning has been made possible by maryland relay, empowering those with hearing and speech loss to stay connected. >> hi, everybody. thanks for tuning in for "direct connection" tonight, and thanks as well to those of you streaming in for "direct connection." we're excited to announce that thanks to a partnership with the

"baltimore sun" we have the program live on "baltimore sun" and mpt.org. so whether over the air, cable or the web, we're glad you're with us tonight. our focus this evening is football, where the ratings are high and so is the risk for the athletes involved. tomorrow evening, a pbs documentary takes aim at the nfl and the question of whether the league knew more than it let on about the dangers of repeated concussions. in our studios tonight of baltimore football legend and the terps team together, we begin with a clip from the frontline program which is called "league of denial ." >> it wasn't until 2002 when my guys, for the first time, physical evidence. >> i was not out. i did not know what a super bowl

was. >> the inside story of a discovery that could change the game forever. >> these players come down with dementia and alzheimer's and then they're gone. ♪ >> the brain is riddled with disease. it's pretty ominous. >> frontline investigates what the nfl new and when they knew it. >> the nfl will squash you. ♪ >> i'm really wondering where this stops. i'm really wondering if every single football player doesn't have this. >> and joining us now by phone is jim gilmore, co-producer of

league of denial. jim, thanks for being with us. what was the goal of this program? >> hi, jeff. thanks for asking us. the goal, basically, was to put in perspective a debate that's been going on since the '80s about the danger of long-term damage from repetitive hits to the head in the game of football and what the nfl knew and when they knew it on this important subject. >> certainly plenty of coverage of football and concussions lately. why should people tune in for this program? what's new? >> i think, you know, it's amazing that there's not that much new, to tell you the truth. this has been a debate that's been going on in scientific journals and, you know, in the hallways of the nfl for decades, now. what the program does, i think, and does very well is it puts into perspective, you know, the

different sides of what the debate has been and why it's so utterly important. again, this is about the nfl, but it's also a film about the game of football that all our kids are playing at age 8, 9 years old these days, and lot of the major concerns about what the potential dangers are, are not really understood by the public. >> what happened to the partnership here between "front line" and espn? it was probably good for your ratings. when the espn pulled out, there were reports the network had gotten some pressure from the nfl. >> yeah. i don't know a lot, really, about what motivated the decision. we were surprised at "frontline," we were flabbergasted when the decision