i'm mary thompson, "nightly business report." >>> still ahead on "nightly business report", the health care industry is undergoing a ship and how it's impacting their business. >> first, here is a look how the international markets closed today. >>> some well-known individual retailers released september same store sales numbers today showing an overall increase of just 3% from the same month ayear ago. sales at its victoria secret stores rose a disappointing 1% from last year after marking down more items to get more traffic into its stores. the teen retailer zoomies, the buckle and american apparel reported sale declines and at the gap and old navy and banana republic were down 3%. >>> spending on health care is a major expense for many families and today some of the biggest names in health care gathered in new york sit toy to talk about the impact of the affordable care act and what the new law means for families, companies, and shareholders. bertha coombs has the story. >> reporter: executives at this year's forbes health care summit says the launch of open enrollment for the affor

mary thompson has more on merk's restructuring and what's next for the company. >> drug giant merk is slashing expenses to sharpen its focus. here's ceo kenneth fraser. >> this is not a change in our strategy. this is all about greater focus and about generating greater operational efficiencies. >> the changes betting merk's future on four areas, vaccines, diabetes, oncology, and acute care. to get there, it's cutting $2.5 billion in costs by 2015. it's trimming 8,500 jobs, on top of the 7,500 cuts already announced. shrinking its workforce by 20%. it's reducing its real estate footprint and abandoning research products with little promise. and while merk still expects to earn $3.45 and $3.55 a share this year, independent consultant barbara ryan says recent product delays and the failures from key drug trials forced merk to act now. >> clearly, that hasn't delivered results for shareholders that are competitive with their peers, so i think this represents the fact there's pressure for them to find ways to improve their return. >> the expense cuts seen helping merk's bottom line in th

mary thompson has more on which ceos have the biggest paychecks. >> reporter: it's a lot to like, mark zuckerberg taking home $2.3 billion in pay last year making him the highest paid ceo for 2012. pay for sucker burg and others driven by two key factors. >> the stock price in the number of stock options that these individuals are getting. >> reporter: when facebook went public he sold $1 billion in stock and the rest coming from perks like the use of the corporate jet and home securities. gmi ranking spiked total realize pay including salary bonus and perks sold out in 2012 plus gains from stock options, stock sales and increases of the value in pension and deferred compensation. the second ceo to earn more than a billion dollars is richard kinder. he netted $1.1 billion. though kinder says it wasn't all for him, part of it went to a limited partnership. he took the number three spot before leading serious xm radio he exercised tens of millions of options generating over $255 million in profits. exercising 3.1 million options put liberty media's greg mathay in fourth place and a payof

for "nightly business report", i'm mary thompson. >>> still ahead on "nightly business report", big blue reports a big revenue miss sending shares lower after hours. that's coming up next. first, how the international markets performed today. >>> the u.s. economy grew at a modest to moderate pace but job growth was subdued. a snapshot of business and economic conditions in the fed's 12 regional bank ris districts and growth slowed in richmond, chicago regions. many reported optimism about the future and expressed uncertainty about the government shutdown and looming debt ceiling crisis. >>> a banker's group says new mortgage applications were flat last week with lending rates leveling off, refinancing higher but requests for new home loans fell to a six-year low on worries about the government shutdown. >>> we begin market focus with a trio of earnings that came out after the market closed today. ibm and it wasn't good news. a revenue miss sent shares lower in after hours trading. the company blamed it on a sharp decline in hardware sales. but earnings beat analysts estimates and ibm rei

for "nightly business report", i'm mary thompson. >>> still ahead on "nightly business report", big blue reports a big revenue miss sending shares lower after hours. that's coming up next. first, how the international markets performed today. >>> the u.s. economy grew at a modest to moderate pace but job growth was subdued. a snapshot of business and economic conditions in the fed's 12 regional bank ris districts and growth slowed in richmond, chicago regions. many reported optimism about the future and expressed uncertainty about the government shutdown and looming debt ceiling crisis. >>> a banker's group says new mortgage applications were flat last week with lending rates leveling off, refinancing higher but requests for new home loans fell to a six-year low on worries about the government shutdown. >>> we begin market focus with a trio of earnings that came out after the market closed today. ibm and it wasn't good news. a revenue miss sent shares lower in after hours trading. the company blamed it on a sharp decline in hardware sales. but earnings beat analysts estimates and ibm rei

i'm mary thompson, "nightly business report." >>> still ahead on "nightly business report", the health care industry is undergoing a ship and how it's impacting their business. >> first, here is a look how the international markets closed today. >>> some well-known individual retailers released september same store sales numbers today showing an overall increase of just 3% from the same month ayear ago. sales at its victoria secret stores rose a disappointing 1% from last year after marking down more items to get more traffic into its stores. the teen retailer zoomies, the buckle and american apparel reported sale declines and at the gap and old navy and banana republic were down 3%. >>> spending on health care is a major expense for many families and today some of the biggest names in health care gathered in new york sit toy to talk about the impact of the affordable care act and what the new law means for families, companies, and shareholders. bertha coombs has the story. >> reporter: executives at this year's forbes health care summit says the launch of open enrollment for the affor

. >> for nightly business report, i'm mary thompson. >>> encouraging words from j.c. penny chairman sent shares higher, allman reaffirmed that the retailer expects positive sales in the third quarter and says that sales trends are improving. penny is scheduled to announce third quarter results on november 15. the stock went up to almost 39. >>> the reports that drug maker dendrion is looking for a suitor, coming after the sales of the prostate cancer drug, the stocks went up to $2.81. >>> sales of biogen, the ms drug, topping analyst estimates, giving that drug a boost. they reported better than expected earnings and raised its four-year estimates. shares rose a fraction to $254.43. >>> and edward life sciences reporting earnings, investors were disappointed with the u.s. sales of the nonsurgical artificial heart valve and the week guidance. the stock plunged to 73.24. shares of cf industries climbing after mosaic announce they would buy the companies phosphate business, the deal sent the shares up to 1386. mosaic up about one and a half percent. >>> and liberty globa

joining me cnbc's mary thompson and the great and ever great herb greenberg here.pollo group, scheduled to release earnings after the bell today. the company reporting lower revenue over the past two quarters. herb, what can we expect? >> the first of all the for profits that will come out. this whole enrollment issue, what will enrollments be, turnover of students be. some people, my pal brad saflo of pa research talks about this being an inflection point that investors are looking for. some people think these are value stocks but the reality is, has this been a fundamental change in the industry. people want to take a close look at this one just to see what we can expect to see. >> sets the tone basically. >> absolutely. >> so let's talk about another one because caterpillar is expected to report its third quarter earnings tomorrow before the opening bell and mary thompson, you've been following this company for us, what can we expect to hear? >> obviously weaker results. back? july the company cut its full year estimates. the september numbers beforehand, these

mary thompson has been looking at icahn and his company. mary, what makes this guy tick?, i think making some money, that's what makes him tick, tyler. two years ago icahn shuddered returning money to outside investors but still people can get a piece of his activist action investing in icahn enterprise. icahn associates owns 88% of it. over the last year up over 147%, up over 800% over the last ten years. the easiest way to think of this mlp is seeing it split into two segments. first holding company with stakes in what icahn thinks are undervalued company like cvr, federal mogul, tropicana and american railcar. the second segment, these are the investments. they account for 30% of the mlp's assets. icahn funds these investments, chosen and managed by a group of professionals, including his son. here icahn takes big stakes in firmed where he can ung clog value, where eyre dividends, buy backs, restructuring or management changes. dell, apple, netflix among icahn's recent investments. others including chesapeake, the drug company first labs, rig operator transocean, mento

back to head quarter fos a quick flash and mary thompson. >> thank you. share shares of delta air lines are trading below the 52-week high of $49.50, and it has been on a nice run to the upside and the earlier this week, it reported passenger unit revenue of 5.5%, and at 5.5% inkris in the month of september, and people are betting it will bode well for the company. again, up 25.24. >> there are so many nonbelievers out there, and i am a believer in the usair and murph, you not a believer? >> well, it is more of a global sto story. but if you look at the railroads before they downsized the crews to make them more efficient, and it is the same story playing out, and much better the way it is playing out because of the control they have. >> and murph raises an important point to discuss, you are coming around to the airline story? anything to come around or the gains have been made as the stocks have not traded all that well that lakely. >> well, they have a huge run and all moved up dramatically and then a slight pullback when the whole american airlines m

mary thompson has more. >> reporter: as lawmakers battle over the budget, the corporations face a struggle of their own, how to plan for next year. here is the ceo trader bill gerber. >> i think people are just not able to assess because the markets are so uncertain, on where they should be the type of environment they should be in. so people get in a wait and see mode. >> reporter: for over a year, americans kept a tight grip on their cash a grip lightkely not to be loosened. if the deal is not reached, mandatory budget cuts known as sequestration could take everything. here is former city group chairman dick parsons. >> if they had confidence they knew what the landscape would be doing, they would start to invest again. >> reporter: given that washington kicked the can down the road, that is a big if. now, a director at sprint, honeywell and prudential said it is likely they don't know when to spend because they could step on a bomb. firms like the new jersey based flex line, a maker of metal hoses. in an e-mail, the president wrote, the temporary fixes don't allow us to plan it makes re

let's get more reaction, mary thompson at the nyk se, rick santelli at the cme. mary, what are traders saying? >> a couple things. what you take is the housing recovery has slowed a bit, the labor market continues to improve and qe remains in place until there is clarity on the budget in washington. as a result, we've seen the market chop around a little bit. the dow recovering now retreating to the levels before the statement was released. same with the s&p 500. which right now is sitting just above the session lows. let's take a look at a couple rate sensitive sectors. the yield on the ten year has continued to decline in the release of statement. we're going to start with the banking index where it was a little bit below where it was before the fed statement, though, real estate or ret index has come off a little bit and utilities too slightly lower as again the yield on the ten year which rick will talk about more has continued to sclim. the reaction on wall street fairly modest again to the fed statement today. back to you. >> okay. mary thompson thank you fo

mary thompson has more. >> reporter: as lawmakers battle over the budget, the corporations face a struggle of their own, how to plan for next year. here is the ceo trader, bill gerber. >> i think people are just not able to assess because the markets are so uncertain, on where they should be, the type of environment they should be in. so people get in a wait and see mode. >> reporter: for over a year, americans kept a tight grip on their cash, a grip ligkely not o be loosened. if the deal is not reached, mandatory budget cuts known as sequestration could take everything. here is former city group chairman dick parsons. >> if they had confidence they knew what the landscape would be doing, they would start to invest again. >> reporter: given that washington kicked the can down the road, that is a big if. now, a director at sprint, honeywell and prudential said it is likely they don't know when to spend because they could step on a bomb. firms like the new jersey based flex line, a maker of metal hoses. in an e-mail, the president wrote, the temporary fixes don't allow us to plan, it makes r

i'm mary thompson. its earnings of 25 cents a share on an adjusted basis and revenue of $2 billion both better than expected. as you can see it's fallen back to where it closed. the key to facebook's number its mobile ad revenue. it jumped to $800 million. as for today's session, the dow losing 61 points and the shares pulling back after the federal reserve left rates unchanged as expected. what spooked the markets was the fed statement that followed. while the central bank intends to continue the the easy money policy known as qe-3 the statement removed references found in earlier ones in threats to the economy and many saw this as a sign the fed thinks the economy is strengthening and might end qe sooner rather than later. larry, back to you. >> mary, why do you know more about this than i do? so facebook reports pretty good earnings and the stock jumps up big, but then the stock goes back down. is that just thin trading after hours or what? >> i think some people maybe were disappointed that the earn

mary thompson is in portland, maine, with some of the reasons why. talking to a lot of small business owners, mary. >> reporter: i certainly have, sue. the survey used a number of factors to determine a state's ranking including the number of federal workers, the number of federal contracts a state might have. even the number of national parks that might be impacted by the shutdown. now, maine ranks high on the list because its largest city, portland, an above-average 4% plus of the population depends on federal contracts for income. mayor michael brennan telling cnbc the shutdown's impact has been minimal so far but will grow the longer it goes on. still some of the city's small businesses like the three-year-old rising tide brewery feeling it already. owner heather sanborn saying a planned expansion growing more costly because the brewery can't get a loan from the small business administration. >> we were hoping to use an sba program that would have been very inexpensive because of some new rules about waiving guarantee fees, and we're not going to

mary thompson reports. >> reporter: inspect last year, floo floods took homes from colorado to twin citiesshore. forging rare bipartisan support to delay rate hikes that will threaten these homes again. bob hmenendez. >> we have too manyç people ou of their homes and too many people afraid of losing their home. we suffered from a natural disaster. we need not create a man-made one. >> reporter: the bigger waters about. well intentioned legislation aimed at restoring the financial health of the insurance program, which is $26 billion in debt. the act saying refund the program by charging market rate premiums for hundreds of thousands of homes in flood zones. the problem, a lot of those previously subsidized homeowners can't afford the rates. >> nobody is arguing against reasonable rate increases but rate increases that could go to 20, $25,000 a year and push people out of the homes and out of the program. >> reporter: to counter it, louisiana senator and others introducing the homeowners insurance affordable act. the act saying rate hikes on insurance that covers homes in flood zones that

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

what we can expect to see from these we turn things over to mary thompson live at cnbc world headquarters. good morning. >> good morning to you. futures are mixed after a mixed close for the markets on monday. as you mentioned investors are waiting for the september jobs report. which was delayed 2 1/2 weeks by the government shutdown. forecasts call for 180,000 jobs added last month while the unemployment rate is expected to hold steady at 7.3%. but the numbers will not reflect the impact of the shutdown, furloughs and government contracts likely to show up in the october numbers due out in two weeks. on wall street monday the dow falling 8 points to 15,392, the nasdaq shed to 3920. apple isn't resting on its laurels, more than a month after launching the iphone 5s andc, holding an event where it's expected to show off the latest ipad. reports say the ipad 5 will run faster and redesigned to look like the mini. speaking of that apple is expected to unveil the ipad mini 2.0, which will be faster and may have that flaet display found on the bigger ipad. kohls is joining the holiday parade,

here's mary thompson with the details. mary? >> thank you, tyler. gmi ratings survey of over 2200 ceos show their median pay increase at 30% last year. among the highest paid ceos the top ten earnings more than $100 million each. for the first time ever two of them earned more than a billion dollars. keep in mind gmi ranks the ceo by total realized pay. this includes salary, bonus and perks given for 2012 plus any gains realized from options exercised stock sold and the increase in the value of their pensions and deferred compensation. let's count down the top five. number five apple's ceo tim cook, while he received a million restricted stock units when named to that post in 2011 most of the $143 million he earned last year from gains on stock grants given in 2008 and 2010. liberty media's greg maffei topping cook as he pocketed more than $250 million after exercising 3.1 million options a little more than half of an option grant in 2009. now maffei appears twice. he earned $136 million from options linked to the other firm liberty interactive. tha

mary thompson, let's talk about the word on the floor with a market down 64 on the dow. >> off the lowsday. the markets have been trading in a fairly narrow range until the fed released its statement at 2 p.m. basically what happened is initially the reaction was the market was not much of a change from the prior statement. but then traders took a closer look at it. essentially what they're focusing on is what isn't in this statement. one line in particular that's been pointsed out to me, this being a statement that was in the last -- or a sentence in the last statement reading the tightening of financial conditions could slow the pace of the improvement in the economy and the labor mrashgt. that was not in this statement. basically one risk the fed saw has been eliminated. that leads some to believe the fed is less dovish, meaning it will start to taper or qe will start to end sooner than some expected. where did you see it most as we mentioned the dow has come off the lows of the session. take a look at the yield on the ten-year. it was a big move there adds rates started to move high

joining me is mary thompson and jackie deangelis.ff with mcdonald's set to release earnings on monday before the bell. keep in mind this is a stock that has fallen out of favor with investors up 8% this year, underperformer when you compare it with its peers. it is lagging. on the street analysts are also falling out of favor with the stock. goldman sachs recently issuing a report saying it appears mcdonald's is losing customers based on a survey of 2,000 customers out there and also concerns out there, i don't know if you tried mighty wings. >> evidently expensive but not a good product. >> they are a buck a wing which is surprised a little too high for their core customer. so, you know, that is going to be a question because that was a big push in the past quarter. want to see if those are going to gain traction. >> they struggle with product mix. trying to alter their menu to provide something a little more high end but also trying to attract that value customer and that is causing some problems as we've seen in the same-store sal

mary thompson has been taking the pulse of business executives. >> hey, tyler.mporary fix does great ongoing problems for firms putting together their plans for 2014 because the u.s. could still default and if there isn't a deal it could mean mandate the budget cuts that impact corporate america or if a deal is reached it might mean new taxes. the former citi chairman says this makes planning difficult and for conservative spending. >> if they had confidence if they knew the countries of the landscape they had to traverse were they would start investing again. >> most declining to comment on washington's action or inaction and how it would impact them. the former ceo of continental airlines and a director on the boards of sprint, honeywell and prudential told cnbcs for corporations washington's impasse makes planning treacherous because you don't know what next step is and you don't know if you're going to step on a bomb or if it's going to set you free. now even smaller companies like new jersey based flex line are being impacted. the maker of metal hoses used

mary thompson here now on conference call controversies. >> oh, these controversies, you know the conference calls typically are pretty mundane events, but once in a while an off-the-cuff can have an impact. about teen users last night. >> our best announcement on youth engagement in the u.s. reveals that usage of facebook among u.s. teens overall was stable from q2 to q3, but we did see a decrease in daily users specifically among younger teens. >> whoa, the stock taking a hit on those comments in the after-hours session yesterday. though it has come back in today's trade. now, keep in mind, tone in critical on these calls. so investors took ebay cfo's bob swan at his word. >> at the same time, the u.s. economy softened critically and we have a cautious outlook for the holiday season. >> a misperception claimed ceo john donahoo. he blame it had on a cold. swan referenced concerns about the holiday season twice on the call, saying later. so all of that and the anxiety we see when we pick up the newspaper every day makes us fairly cautious about how we look at the holiday season and its impac

check in with mary thompson for a market flash. >> taking a look at shares of jc penney. the company said that it has not hired a bankruptcy lawyer, actually come off the 30-year lows, i'm trimming some of its earlier losses. jpmorgan out with a note while it likes some of the moves the company has made it's a long-term work in progress. jc penney down about 4.5%. back to you. >> still a lot of money in the bank. thank you. looks like the nobel peace -- the nobel prize winning economist robert shiller is w k walking back on his warning of a housing bubble. recent months dramatic gains in markets like las vegas or san francisco looked bubbly as he put it. joining us now is cnbc's real estate reporter diana olick and sherry owe leafson, real estate attorney and ceo of the carnegie group. welcome both of you. sharon, kick off with you, do you think there are bubbles in the u.s. housing market? >> there's no question, be simon, that we are sort of becoming like robert shiller said, detached from the fundamentals. i think one of the big issues is that the tracks had been greas

mary thompson found out. >> hey, sue. data suggest the retail investor remains cautious with the markets at record highs. outflows continue while trading activity at discount brokerages is modest. investors began pulling money out of stock funds in may of 2011. since then, u.s. equity funds have seen net monthly outflows in 25 of the last 28 months through august. the september numbers aren't final but weekly figures suggest the exodus continued in the two weeks out of the three recorded so far for october. so recent data from discount brokerages suggest some re-engagement of the retail investor. charles schwab and e-trade seeing increases in average daily trades by their clients from last year's third quarter to this one. quarter over quarter basis both were down. in a recent interview with cnbc morgan stanley ceo james gorman who runs one of the largest retail brokerages in the country said his clients aren't running away but they're not jumping? >> retail investors haven't pulled money out of the market. they have been

mary thompson is live with an exclusive with morgan stanley ceo and chairman gorman.re sitting here with james gorman, ceo of morgan stanley. a very good quarter. tell us what your personal highlights were. >> firstly, thanks for doing this, mary. it's great to be back on cnbc. you know, for me, the long-term strategies is what really matters. it was a great quarter. we can talk about the bits of it. the long-term strategy, the resilience, the durability, the consistency, all of the things we've been putting in place for the last five years, since the crises, they've started to come through. >> let's talk about the bids. one of them, you got off the conference calls, and fixed income. revenue year-over-year down 40%. and you have a target r.o.e. on this. you can cut compensation. you can reduce risk assets, or decrease risk. what will we see? >> i'd add one fourth thing, which you can increase flow business with clients, which isn't necessarily increasing risk. we're doing a little of all of those. it's a less balance sheet, capital-intensive business. we're increasin

back to you. >> mary thompson, thank you very much. >> let's shift to rick santelli at the cme groupchicago. >> we basically held settlement and it has turned up a bit. once again, it seems as though normalcy is prevailing in the fixed income market. yesterday we dipped under 260, today we traded as high as 266, 267 and here it sits. if you open the chart up for a couple months, you can see why we're spending time at this zone and you can see at the right side of the chart how issues with the fed meeting and the reason i picked july, because the july employment report released right after the 4th of july had a big impact on many markets, whether it was a dollar index or treasuries. now, the vix is talked about a lot these days. take a step back, get a little perspective. i know everybody wants to rorschach these markets and try to see a political issue within the marketplace, but a two-year chart of the vix, really hard to pull that out, isn't it? now, if we look at the dollar more specifically, let's look at a two-day chart of the dollar index and you'll notice it did breach the 80

mary thompson has more on that. >> hey there, carl.'s largest asset manager reporting earnings in lo line with expectations. larry fink said the narrative in washington is hurting people's confidence and they're buying back shares as opposed to putting money in investments, which is hurting the economy. he sad the damage has already been done to the economy. he said he has dozens of people working on a default contingency plan and it goes well beyond the money market funds. it's also impacting their muni business, collateral and clearing as well. he said the federal reserve is not going to want to move on interest rates until the central bank sees what kind of damage is done to the economy by this narrative and impasse in washington, d.c. back to you. >> thanks very much, mary thompson. >> shares of yahoo! are up after yesterday. i've been talking a lot about yahoo! but primarily as it relates to alibaba.com. interesting journal piece today does a good job explaining much of its business, which is related to its tao-bao -- it's as if i

. >>> and now cnbc's mary thompson joins us. good morning. >> good morning. twitter is filing to go public in a $1 billion offering. it has yet to turn a profit but has over 200 million users that tweet more than 500 million times a day. >>> the longer you wait the more you pay for airfare. if you wait until the end of the month to make your reservations, budget an extra $140. >>> it's day four of the shutdown and on day three the markets tumbling with the dow at a month low. >>> thank you so much. things got squirrely at a golf event in ohio thursday as the day's competition at the president's cup was winding down. lindsey vonn borrowed a wild squirrel. aapparently the squirrel defriended him and she put the little critter on the back of tiger woods who didn't seem too amused right there. wasn't playing clearly but at first didn't look too happy about that but then later tiger looked like he was much more relaxed as the squirrel hung out there on his shoulder. became a little friendly. >> al has a serious question. >> what's the squirrel doing there? >> what