Transcripts For FBC Markets Now 20121126

Talking about wider markets. Nicole some of the traders, do not forget, last week we were gaining 3. 3 on the dow jones industrials. Right at that 1400 mark. Hitting some key resistant levels. Likely to see a little bit of a pullback. The trend is still to the upside. As far as the major market average, you are seeing the dow and s p down a half of a percent each. I want to take a look at abercrombie and fitch. , that insiders, they talk about the fact that abercrombie was the clear winner of the weekend stops. Connell Grover Norquist. Here is what he said this morning. Supposed an investor that you admire and trust comes to you saying this is a good idea i think you should think about it. It all depends on what my tax rate will be on the game that we will make. Only in grovers imagination does such a response exist. It is quite another when republicans talk like this. I am not obligated on the pledge. The only thing i am honoring is the oath that i take when i am sworn in this january. The only pledge we should be making to each other is to avoid the coming brief. Republicans should put revenue on the table. I would have signed i will not attack japan today. The world has changed. The Economic Situation is different. Connell the man behind this pledge, it sounds like, at least the storyline is, that you are losing your considerable influence within the republican party. Well, first of all, our friend Warren Buffett a to get a confident ghostwriter. It is counterfactual and it is counter historical. In his imagination, Warren Buffett goes to talk to people to invest with him. You have money. You have earned money. If the federal government takes it away, they do not have money to invest with Warren Buffett. There is a warm buffet line that has been introduced. It has introduced legislation. If you think you are undertaxed like Warren Buffett, connell we have had that discussion about buffet before. What about the republicans. What about the idea that your influence, people signing pledges are now on the record. I may break that pledge. Well, several things. The pledge is not to me. It is to the American People. The people you just mentioned, said the same thing four years ago. There is some republicans willing to raise taxes on the American People so obama can spend more of their money. They are kind of turning in last years homework again. Connell what would you say to another republican who is watching. Whether it is lindsey graham, peter king, john mccain, on and on, similar comment over the weekend. If another republican is watching that, what would you say to them if they areethinking about breaking this pledge . Lets distinguish with what boehner have said. I certainly agree, if the economy grew at 4 instead of 2 for the next decade, the federal government would net an additional 5 trillion. You could pay all of obamas death down. Connell that is not what he is talking about. Okay. I am sorry. What he said is what i said. What obama claims he said is a separate matter. Boehner was very clear. Obama said, oh, you have agreed to tax increases. The talks collapsed because obama misstated. Connell what you say to republicans who are thinking about breaking the pledge . Look, most republicans have signed the pledge. Even the ones who have not have made it very clear even when they ran for office, higher taxes have hurt the economy. They have spent too much money. The entitlements are looking to break the economy. We need to spend less. Raising taxes to get the politicians more money to continue spending, does not solve any problems. Connell i know you think this is the narratives being pushed by the media and all of that, if they do break it, that does speak to your own influence. For the last 20 years, they have all kept the pledge. The pledge, however, in the tax issue are very, very powerful. Connell do you think they will keep it again . I think they will keep it again. Because he raised taxes, because he did not be honest with the American People. He promised he would not raise taxes and he did. What happened, they spent our money. The democrats who promised they would save it and put it in a box box and reduce the deficit, they spent it. He has no savings in his budget. He wants to count savings because he is not in iraq anymore. They threw him out. That is why he is not in iraq anymore. Connell we will obviously come back to this over and over again. Grover norquist, thank you. Dagen we will stay on the topic of Warren Buffett and taxes. Should the cut off the 500,000 not 250,000 as the president wants. Would that ease some of the burden and pain of higher taxes . On one level it would, of course. Raising that threshold from 250,000 to 500,000. The buffet idea maybe release a little bit of pain, but does nothing to address the extortions that he is talking about. Huge distortions. 160,000 pages of distortions in the tax code. You were talking about a tiny, tiny improvement. I will take it, sure. We are getting distracted on this one. Dagen connell was talking about a minimum tax on the wealthy. He starts out 1 billion a year. 30 . A good idea in the abstract . Then he starts talking about his brother in. Those are multi billionaires, dude. I mean, i think these are all legitimate questions. We have this great opportunity to do tax reform. To clean up the tax code. Get rid of some of the provisions. Should we give tax rates for second homes, for vacation homes . Probably not. The reality is a lot of things like that that make no sense. Lets not get hung up about 250,000, 500,000, 1 million. What is the threshold . If that will distract us between who is rich and who is not, i think this is a big mistake. Dagen already a big bowl of brunswick stew that is unappetizing. Will it become even more inedible kraft do you think they can get tax reform done maybe within the next year . I think it is possible. When it comes out, it will be even more complicated. That is the real risk here. Simplifying the tax code, keeping those marginal tax rates low. Lets not create a worse in the distortions that already exist in the tax code. Dagen great to see you. Take care. We will see you soon. Connell there it is. Closing loopholes with norquist. We consider that a tax hike. Dagen lindsey graham. You made the point. Loud and clear. A lot of people backing off. Connell backing off the pledge. People will be losing their benefits at the end of the year if congress does not act now. Dagen the money game for the holidays. Americans are sitting at their computer screens, not working, looking for the perfect gift. Take a look at oil. See where it is trading today. Oil is at 87 a barrel. Connell eight quarter past the hour. We will have stocks now as we do every 15 minutes. Nicole we are at our session lows of the day. We certainly had a nice run up last week. Over a 100point game. We are losing about 100 points. I just checked on the dow jones industrials. Twentyeight of the names out of 30 were in the red. Intel and caterpillar were trying to give it a go. Microsoft, at t, verizon and bank of america are dropping 1 each. Lets take a look at a name that is a clear winner. That is facebook. Getting an upgrade today. Even though it is down about 25 over the last 26 weeks, the last three months have been a nice run. Back to you. Connell thank you. Dagen time to make some money with charles payne. Connell charles, we are waiting to make a little bit of money. Charles is heated up about all the issues today. Charles i like this company verifone. You have seen it. Nevertheless, this was a hot stock for a long time. Recently, it has been derailed. They fell asleep at the wheel. This is one of the lumbering giant that did get caught a little flat footed. Dagen or like we like to say, with its pants down. Connell or like you like to say. Charles [ laughter ] i think they will rebound. They have a base of 23 million users. This tree will say, okay, you know what, they will become a real competitor and realplayer. Connell he agrees 100 with Warren Buffett. Charles he is moving in the right direction. At least the move from 250,000 to 500,000. You cannot keep intermingling the same people. By the way, this is what he wrote already. This is from the white house. The bottom line, you cannot keep doing that. You cannot talk about the richest 400 people at in this country and then say that some successful couple in long island should pay more taxes. Dagen preventing kids like paris hilton for being wealthy down the road so we do not have to look at them. Charles nobody cares about taxes when they are making investments. Dagen number one read story is tax moves you need to make right now before the end of the year. Connell there you go. Thank you, charles. Dagen america and record numbers now going online to buy holiday gifts. Connell this tax battle on capitol hill that we have been talking about. The judge says there should be no discussion on taxes at all. We will get to the judge. First of all, lets take a look at the markets. Lets take a look at currency. [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of the countrys largest petchemical operation. When emerson takes up the challenge, its nev been done before simply bemes consider it solved. Emerson. Emerson. [ camera flash ] great. Were you profitable last month . How much money is in your Checking Account . Have the browns paid you for their addition yet . Your finances are scattereall over the place. What are your Monthly Expenses . You keep your receipts in plastic baggies . Seriously . [ announcer ] get it done and get it off your mind. With quickbooks. Organize your Small Business finances. All in one place. Quickbooks pulls in information from other sources. Even Online Banking and customer information. Visit tryquibooksfree. Com today to start for free. And now your business can be at your fingertips, anywhere, with the convenient mobile app. From creating customized invoices, to tracking sales and expenses, quickbooks can help you manage. Every detail of your business. And at tax time, all your records. Will be automatically organized and ready to go, saving you time on prep work. Quickbooks, guaranteed easy or your money back. Learn more and start for free. At tryquickbooksfree. Com. At 23 minutes past the hour, i am lauren green with your fox news minute. University says the law mandates individuals and employers requiring Health Insurance is unconstitutional. Depending on the outcome, the Supreme Court can eventually choose to hear the case. The december for hearing has been set by cairo. He issued the degree late thursday temporarily widening his powers blocking his decision from judicial review. Israel defense manager says he is stepping down from the ranks. Just weeks ahead of the general election. The former general and onetime Prime Minister said he will stay at his post until a new government is formed. Those are your headlines. Back to dagen and connell. Dagen online black friday sales topping a record. 1 billion. Connell we want to know about today. Supposed to be this big day online. We have sent adam shapiro out there. 1. 2 million square feet. They have 40 of these centers throughout the united states. This is the largest. We are on a 15 minute rate. They will come back at 11 30 a. M. They have been going 247. Anybody who is selling online. At amazon. Com, they will sell more than 200 items per second. Last year it was 204 items per second. They expect revenue in the Fourth Quarter to be 16 to possibly 30 higher. I want to give you a quick shot of that area i am in. They take them out and put them in the yellow fins. They are said further down the line to the pickers. Then they package it. Then it is sent to your house. We will talk to an exeeutive about the numbers and billion dollars at stake. I was brought back to you, dagen and connell. Dagen thank you very much, adam. It really is incredible how efficient it is. Connell this is their big day. Dagen will not be shopping online today. Which is unfortunate for all of us expecting a present from her this Holiday Season. 47 of americans receiving Unemployment Benefits. Dagen for those that do have jobs, your work, you either need to get a flu shot or you lose it. That is that one firm. Here are some winners on the s p 500. Dagen breaking news to bring you. The wall street journal reporting the president obama and House Speaker john boehner were talking over the weekend. Connell rich edson is on the story in d. C. Rich congressional and white house staff are still meeting. They last got together two weeks ago. Congressional aide say they are still waiting for another invitation from the white house for the second meeting. Two sources close to negotiations confirmed that tim geithner is the point man. He has been arguing there is too little revenue from simply closing tax reductions. Republicans refused that approach. If you can simplify this tax code and make it more flat, eliminate all kinds of loopholes and gimmicks and actually increase revenue without raising the top marginal rate which most economists say would hurt this economy if we were to do it. Rich there is some discussion in washington about increasing it for a higher rate than what the president wants. The president wants it for 250,000 a year. A threshold will not make that much of a difference. Raising the threshold to a halfmillion would mean 7 billion was to the treasury over the next decade. Bump it up to a Million Dollars, it is even less. Congress returns from thanksgiving recess this week dagen thank you. Rich edson down in washington. More than 40 of the nearly 5 million americans that receive Unemployment Insurance and benefits are set to lose those in federal programs expire as scheduled at the end of the year. We have the Editorial Page Editor for the Washington Examiner joining us now from the nations capital. Is now a good time to let them expire . There really is no good solution now. This has been handled so poorly since the beginning of the obama stimulus package. When benefits were extended, and this was 99 weeks, that is such a long time to lengthen benefits. You put people in a position where they will keep looking and hold out for jobs that are way better than anything that is available. In this economy right now, there is nothing decent available. Especially people in the age 25 to 54 age bracket. They are not getting any jobs back that they lost in the crash. Although growth is an old people. So, you know, you put a whole generation of peoples careers on hold. They think they can hold out. They do not have to move to another town to find a job. They do not have to settle for a job that is worse than it is. Two years of Unemployment Benefits, you are giving people too much time. Dagen at these benefits you mentioned the 99 weeks, they have been shrinking. The longest benefits are now in new york state. They have been slowly lessening. Is that the right way to go instead of letting these disappear for these millions of americans . You know, it is marginally better. You do not want it all to happen at once. You throw 40 of the people out. That is a disaster. This has been handled so badly from the beginning. You have all of these people who are already forced to take parttime jobs. The job market is just terrible. You cannot throw everyone out there at once. We got into this mess by creating it for ourselves once again. By making the benefits to long to begin with. We have created a situation where now everyone is suddenly being weaned off of them or just ripped off of them or you will have this huge falloff over time. Dagen do you think the economy, if these Unemployment Benefits expire, given what we are dealing with, the automatic tax increases and spending cuts, you have the alternative minimum tax that could hit minimum household for 2012, that is for this current tax year that congress has not fixed. Given the state of the tax code and Unemployment Benefits, you name it, are we doomed to have a very slow economy is not a recession next year . I am not an economic forecaster. It really all sounds bad. Every trend we are seeing right now looks pretty bad to me. We have this oil and gas bill. It is basically keeping the economy on right now. Absent that, i do not know where we would be. Maybe it has a few extra magic tricks for us. Nothing else seems to be going right. Dagen david, thank you very much. Hope you had a Great Holiday. Thank you. Connell the judge is coming in. We talk to Grover Norquist earlier. The judge will address this new by some republicans to abandon their no tax pledge. Dagen apple and samsung continue to do battle over patent rights. Connell get the shot or lose your job. This company requiring workers to get the flu vaccine. We will have that all straightahead on markets now. Here is a yield on ten year treasuries. We will be right back. [ male announcer ] this is steve. He loves risk. But whether hes climbing everest, scuba diving the Great Barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and being ready, no matter what happens, which isnt rocket science. Its just common sense, from td ameritrade. Hi, everyone. I have your fox business brief. After nearly four years, Mary Schapiro is stepping down as chairman of the Agency Effective december 14. Charlie gasparino first reported shapiros up archer. President obama intends to have step in when shapiro steps down next month. Unauthorized trading by u. S. Customers. Customers were allowed to trade on the future prices of commodities of other items. Macgraw hill is planning to sell its education business to Apollo Management for 2. 5 billion. That is the latest from the Fox Business Network. Giving you the power to prosper. Dagen president obama and House Speaker john boehner talking about a solution to the fiscal cliff. This coming to us from our partners at the wall street journal this hour. Connell the discussion about whether or not to raise taxes. Some talking about abandoning their pledge. We spoke earlier with Grover Norquist. For the last 20 years, they have all kept the pledge. Just me, the pledge, however, in the tax issue are very, very powerful. Connell do you think they will keep it again . I think they will keep it again. Connell that brings us to the judge. Judge andrew napolitano. My thoughts are that some republicans will cave and break their vow not to raise taxes and they will suffer the fate of george bush that did not have a second term because he broke his vow. They may think they may get reelected without the republican base, they can probably not get renominated without the republican base. They will be inviting primary challenges. In terms of the lawfulness, this is a public pledge. It is political not legal. The people who work for the government are permitted to do so in the government name. I am laughing as i say it. It is true. I am laughing because we accept it. We should condemn it. Dagen if you get rid of some tax breaks, even if it is able to write off the interest on 1 million home that. Do you consider that a tax increase . Sure. Anything that requires individuals to send more tax to the government. Not only is it disruptive to the economy, but it steals what they have. Whether you call it what we are not going to raise the rates, were going to to raise the deductions. If more cash goes to the government and what it is right now, it is an increase. I think that the mortgage deduction will damage even the president. A lot of democrats rely on that. They plan their lives, as well as, their monthly budgets on having that deduction. Will the country fall back no. The slow march towards socialism , that will become a faster march. Connell it looks like closing loopholes is on the table. One is suggesting there is Human Behavior immune from federal taxation. Since it came about in 1913. Connell but doing away with some of them is on the table. You can tell by just listening to what they are saying. Yes. Republicans have fallen for this grace that they will get reelected if they take more money. Connell the idea of going back to the clinton rates of 2 , some have argued that is not the end of the world. It will cause unemployment. People have less money to invest. More money will go to the government. It is a march towards the Central Control of the economy. Dagen if we raise more revenue, there will not be a turnaround and they will cut spending. The democrats. Yes, i am saying it. This is economics 101. More money the government takes from us, the less money we have to invest. The less money we have to invest, the less jobs that will be produced. How do you think we got to the point where half the country is dependent on the government already. Dagen you do not think the proportionally . Cut spending no. Grover norquist has worked towards this and my hat is off to him, i think it is a losing cause. So long as republicans fall for the same nonsense that the democrats have given us. Give away money and return for votes. Connell we will run to the markets. We could go all afternoon with this. Dagen just me and the judge. Connell look at this. Dagen take a look at the dow industrials now. We also want to take a look at apple stock, do we not . Connell of 1 today. Almost out 580 on the apple stock price. Dagen shibani joshi. You look fantastic. What is wrong with these guys . They are still fighting. Connell welcome back, shibani. I am back. Happy to say that apple and samsung are still fighting. They are escalating things. A lot of titfortat going on the past couple days. A lot of apple products have been coming out. Apple is doing a little bit of a titfortat regarding samsungs products. Physically six new products that the company came out with. They are refreshing their complaints. On december 6, which is in a few days, samsung will repeal the decision that was awarded against it in august. We will be looking forward to that. On march 14, this Patent Infringement trial will begin. That is what all of this is about. They are trying to get all of the products that these Companies Make into the court documents. Connell great to see you back. Dagen you grew a baby and gave birth. What is their problem. Connell dagen has not lost her touch. Dagen what was not. Connell grew a baby. That is a different way of putting it. Dagen no flu shot, no job. One of cincinnatis largest employers give them the walking play for refusing to get a flu shot. Connell the nasdaq winners today. Tough to find with the market down. There are some individual stocks that are doing pretty well. Looking for a better place to put your cash . Heres one you may not have thought of fidelity. Now you dont have to go to a bank to get the things you want from a bank, like nofee atms, all over the world. Free checkwriting and mobile deposits. Now depositing a check is as easy as taking a picture. Free online bill payments. A highly acclaimed credit card with 2 cash back into your fidelity account. Open a fidelity Cash Management account today and discover another reason serious investors are choosing fidelity. [ engine revs ] [ male announcer ] the mercedesbenz winter event is back, no matter which list youre on. [ santa ] ho, ho, ho, ho [ male announcer ] lease a 2013 ml350 for 599 a month at your local mercedesbenz dealer. Dagen talk about raining on the parade. Thousands of pieces of confetti that rained down on the macys thanksgiving day parade on thursday. The confetti not provided by macys, by the way. Some of it contained readable information. Bank account details, Social Security numbers and even information about mitt romneys motorcade. It was from the Nassau County Police Department. An investigation is underway. Macys says it uses multicolored confetti. Where did it come from . You can take a look at macys stock today. Connell how about this story. No flu shot, no job. That is the message from one company. After they failed to get a required flu shot, they were out. That was it. They were given termination notices the day before thanksgiving. They had until december 3 to get the shot or get out. We have a doctor with us. The ceo of vital springs technology. What you think of this . Welcome to obamacare. Faced with the challenge of meeting to deal with all of the new expenses. What they have to weigh is, do they force their employees to pay 20 or 25 to get the flu shot or do they end up, you know, eating the expense of all of these people out with the flu and the loss of productivity expense. Connell obamacare does not mandate you get a flu shot. If it is in the plan, then you have to get it for free. The employer then must make the choice. Yes, i think you will see more of this. You will cover some of these fulltime employees to parttime employees. Employers can pay and really and force employees to engage in more kinds of wellness efforts. Flu shots being one of them. Connell on the issue of Preventative Care and specifically flu shots, from a medical perspective, is it a good idea to get a flu shot or is it something you should required yourself to do . Yes, you know, it is a great question. Yes, it absolutely is a great idea. Especially those that are elderly or at risk of getting infections or those that work with small children. Absolutely. The other important point is that from an employers perspective, as i said earlier, the cost of having somebody out from work is, you know, significant. Especially if you are solid and manufacturing. Connell if i am healthy, why put the virus in my system. You said, no, it is a good idea. Thank you very much. Dagen some of the biggest Retail Stocks are in the red today despite really good sales over the weekend. Sales up 30 from a year ago. Connell with that, we have sandra smith with the trade. Sandra take a look at aeropostale. Down 7 today. Downgrading the stock following the weekend. Stiff competition from some of its main competitors like abercrombie. There were lines around the block. Up about 1 . Foot traffic was really lagging is where some of the stores really hyping the promotions the most. Ann Taylor Stores really a disappointment today. Reporting or foot traffic at limited brands, American Eagle outfitters. The gap that the big turnaround. The stock doubling in 2012. More foot traffic in Coldwater Creek and she goes. Some of those stores are far more mature women. They shop later on. Dagen more mature women. Thank you, sandra. Connell i am just getting. I will totally leave that one alone. We are talking Small Business next. Cheryl casone and Dennis Kneale will ask him or tell the president. Dagen a fiscal cliff survival kit. What you need to know. Straightahead. I always wait until the last minute. Can i still ship a gift in time r christmas . Yeah, sure you can. Great. Wheres your gift . Uh. Whew. [ male announcer ] break from the holiday stress. Ship Fedex Express by december 22nd for christmas delivery. Tdd 18003452550 after that, its on to germany. Tdd 18003452550 then tonight, im trading 9500 miles away in japan. Tdd 18003452550 with the new global account from schwab, tdd 18003452550 i hunt down opportunities around the world tdd 18003452550 as if im right there. 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That meeting is happening today. First, he will be here ahead of his white house visit later this afternoon. Cheryl investors may be running from stocks that were going to kick off our special series, how you wis should be investigated d portfolio changes before the end of the year. Dennis alternative investing, would you pay half a Million Dollars for this Norman Rockwell . A great story behind it. Cheryl top of the hour right now, stocks every 15 minutes on this back to work monday. Hope everybodhope everybody hady over the weekend. Nicole petallides on the floor the New York Stock Exchange. Nicole i am still smiling from a Norman Rockwell painting. It really warms your heart. Getting 3. 3 last week on the major average, the dow in particular. Today selling off some and even some of it back. Little bit of worry. It is interesting something very telling. They are a safe hittin haven gr. Dennis thank you, nicole. Some of the top ceos on november 14. If he raises the taxes and the burden on american entrepreneurs and american job creators, what will happen is we will not be able to be competitive. We will not be able to hire locals. Dennis maybe he was watching because this afternoon that same group will be among the Small Business leaders meeting with the president. Welcome back. The biggest question i have is giving the president is having you there today to listen to what you had to say, or is he there to preach to you about what he had to say . I hope we take the opportunity to have a dialogue so americans can have a plan so we can get out of this recession. We have to increase job creation fast. This recession has gone on for too long and now is i the time o turn it around. We have a wonderful opportunity to turn this economy around and get everybody focus on growing the businesses in hiring people as opposed to washington mudslinging. Dennis president obama wants to raise taxes on people over 200,000 per year. What will you say to them about that idea . The challenges this. They pay on a personal level. So when you increase already high rate from lets say 35 or 40 to a higher rate, what happens is tha it makes it lessd less competitive for the economic adversaries like canada and germany. Right now american factories are paying much more money in taxes than german and canadian rivals. If were more competitive, we will have more jobs, more competitive we will hire more locals, and the recession will quickly end. Dennis were spending more in a year and the government collects in taxes. What do we do about that . It is unsustainable. We have to cut spending aggressively because that is in a sense a hidden tax on the future. Ultimately we have to raise taxes to get the money back later. That is a failed strategy and a failed policy. What we need to do is have a competitive economic environment and have growth in the country, and then we will pay more money in taxes because we will all be making more money. If the pie is bigger, it is easier to grow out of this terrible recession. Dennis if obama doesnt raise tax rates, but they kept adoptions so you end up paying more taxes anyway, is that okay with you . I think if you are taking away money from job creators, that is not a good thing. People out there every day putting we have mortgages on our equipment, our buildings, and what happens is we are already strained because of the recession. So we need relief so that we are more competitive. We have to be in a position so that we have the flexibility, the nimbleness to create a marketing campaign. Build more equipment, hire more employees. Dennis i hope you get the chance to get your message the president today, thank you for being with us. Come back tomorrow and let us know how it went. I will keep you posted. Cheryl time for our fiscal cliff survival kit series. We will bring you the tools you need to prepare for the changes that could be ahead. Joining us now, we have the philips, spectrum managing principal. And portfolio manager. I want to start with you because you are telling your clients to reduce stocks exposure. Yes, as we work toward the end of the year the fiscal cliff what is congress and the president going to do . Taxes are going up. You look at the spending problem, you let taxes go back to people making over 250,000 per year. Much of its revenue, still leaving it short of closing the deficit by close to a trillion dollars. It is all about tax rates. Cheryl it is about tax rates, but youre telling your clients stay focused, stay balanced in your portfolio, dont make any big changes but you also said in the last four months while a toady is in the market and also the gdp will shrink no matter what happens in washington with the fiscal cliff. I dont think we will have gdp, not part of our assessment. We see a very significant drag for all the right reasons. If youre fiscally conservative for example and you look at what has to happen here, were spending and the deficit has to be reined in. You might look at stocks and say after 10 years or 12 years, a very inexpensive stock market compared too many other asset prices, you have to have a bullish longerterm point of view. This is a significant change in terms of the fiscal policy, biggest change in the last three or four years and it is a transition raising volatility. Cheryl he did not say there was a small deal in place of effect gdp. Many dont want tax rates touched. Exactly. Essentially what were looking at is a situation where you have had a trillion dollars plus deficit in the last four years. Cheryl that will affect gdp. The deficits affect gdp, but it is altogether. All in our expectation is that there will be some deficit. Cheryl lets talk about some things you do like. You say gold. Gold is very volatile depending on what the fed does, so what do you say about gold that you like so much . If you look at the banks around the world, the Federal Reserve and the European Central bank, everybody is printing money. That goes for japan and england. It is vastly increasing. You need some way to protect your purchases. You have to look at longerterm trend. As long as Interest Rates are effectively negative an in the money supply is being increased, we think the odds are quite high. People should own some goo. Cheryl give me her best sector right now that you think will perform in 2013 despite what happens in washington. I would take a barbell approach looking at companies for example Consumer Staples a number of names with great balances. A little bit pricey, but given the volatility we expect to see in the months ahead, there is still value to be had. The clean balance sheet, a tremendous amount of earning power coming out of technology. I would say so, yes. Cheryl thank you to both of you, appreciate it. Dennis coming up in moments, cyber monday. Did it siphon off sales so todays traffic will disappoint . Cheryl confetti makers have some explaining to do. Investigation by confidential information appeared on those pretty papers raining down on the macys thanksgiving state rate. Dennis no privacy anywhere. And a look at oil. Twins. I didnt see them coming. I have obligations. Cute obligations, but obligatio. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. At legalzoom, weve created a better place to handle your legal needs. Maybe you have questions about incorporating a business youd like to start. Or questions about protecting your family with a will or living trust. And youd like to find the right attorney to help guide you along, answer any questions and offer advice. With an a rating from the Better Business bureau legalzoom helps you get personalized and affordable legal protection. In most states, a legal plan attorney is available with every personalized document to answer any questions. Get started at legalzoom. Com today. And now youre protected. Now is a good time to think about your options. Are you looking for a plan that really meets your needs and your budget . As you probably know, medicare only covers about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. 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These kinds of plans could save you in outofpocket medical costs. Youll be able to choose any doctor who accepts medicare patients. And you never need referrals. If youre thinking about your options, call today. When you call, request your free decision guide. And find the aarp Medicare Supplement plan that may be right for you. Dennis time to make money with charles payne. It is cyber monday, but charles has a brick and mortar portfolio. Cheryl anybody considering jc penney should consider this company. Not sure if you are familiar with it. They were started in 1898. It is an old store, every store brand they own, management knows this. Listen, we have to attract younger customers. They are printing coupons. Understand has to be a destination for things like shoes, cosmetics, apparel. They lost 0. 52, that was good news. The stocks had a huge move this year. Recently pulled back a good chance to get in for people looking for a trade, something underdeveloped, a turnaround play. Giving an example the most recent sales october 03 , the monthly for only six tenths of a percent. Higher risk play, looking for at least 15 . Cheryl they are more of a mallbased play, right . Charles there in the great plains i and upper northeast. I think they will make the turnaround. Cheryl thank you, charles. 15 past the hour, stocks every 15 minutes. Volumes better than it was friday. Nicole friday is somewhat anemic. Week after thanksgiving. The little slow out of the gate this morning. The fear index to the upside. There is concerns about greece once again, finance ministers are meeting, that is the third time this month. Rescue greece, rescue greece. And you have the fiscal cliff weighing on it. The gains last week, there was a little bit back. Back to you. Dennis thank you, nicole. Cyber shop until your fingers stop. Orders are coming in 200 per second. Cheryl lets stay on the cyber monday theme because a lot of retail winners and losers are out there. I look at the stocks, we have an analyst coming up. Dennis heres ho here is how ty is faring against the u. S. Dollar. The red arrows are up. 20 minutes past the hour, this is your fox news minute. Supreme court dividing a challenge to obamacare. The school argued the law mandated that individuals and employers purchase Health Insurance is unconstitutional. The case will be reheard. According to the outcome, they can choose to hear the case. Saudi arabia news agency reporting the prince reassured saudis about his Brothers Health in a cabinet meeting. This following 11 hours background raid. No word on when the monarch will be released from the hospital. He is believed to be in his late 80s. New york mayor Michael Bloomberg releasing aid super storm sandy devastation. The city estimates total public and private losses to be 90 billion. The net cost just south of 10 billion. Those are your headlines. Dr. Dennis. Dennis thank you very much. It is cyber monday, and was expecting you to rack up 1. 5liter dollars of online shopping. Adam shapiro at one of the busiest places on earth. The Fulfillment Center in phoenix, arizona, where 200 orders are being fulfilled every single second. That is right. I want you to meet a spokesperson for amazon. Com, thank you for having us. Their revenue is predicted to beat last year. They were from 1630 . How crucial is today for that . Today is an important part of the season and the entire quarter. It is our biggest quarter. This is a big part of that, for sure. I was curious, as we come over here, if you talk about quarter being important, and obviously for the success. 200 orders per second, this facility alone or throughout the entire area . Cheryl that was worldwide on cyber monday. That was 17. 7 million items ordered on that single day. We do think we are hopeful we will exceed that today. When you talk about that volume of shipping, and i heard somebody makes a joke on one of my previous reports, they can automate everything. You can see people ordering, you could not do this totally automated, you need them to sort each item individually. Its a way to make it more efficient . What we do is we work with our associates quite often to go process by process, to tear that apart, look for places we are wasting time or wasting movement to streamline that to make it more efficient for associates and make the whole building more efficient saving us money, which we did not have. Dennis this legislation pending in congress that would streamline the sales tax protest for those who sell online. 23 billion in revenue theyre trying to get. We see that happening this year, do you think . We are working with capitol hill to make that happen. We will have much more from phoenix, 2000 people packing holiday gifts. Dennis thank you very much, adam shapiro. Cheryl 50 shopped online, that is actually a new record. Shoppers spent 59 billion over the fourday holiday weekend. Winners and losers from the stocks perspective. You were worried about walmart going into black friday, how big of a deal . They did extremely well, they were the best prepared of anybody in my opinion. They got everything down to where they wanted it to be. They had layaway working, promotions going to bring people in the door, opened at 8 00, the protest did not seem to hurt them at all. They were the best prepared of anybody i looked at. Cheryl walmart despite the protests number two website to walmart. Com number two. The sets a price to . Online 20 , the guys who do brick and mortar sales up 40 , 50 online sales. If your macys or walmart or target or kohls, their online sales are increasing faster than online sales in total. Cheryl you are happy with macys and the gap. I thought the gap was great. I was really happy with them. Macys i thought was a big winner, the go to place. They did a fabulous job, they stole business from other people in the mall, in my opinion. I thought kohls struggled, target struggled, but in general it was a darn good black friday. Cheryl target was actually the number for most visited website on black friday. We dont have them yet, once we get the online sales numbers, the revenue anyway out of it, what do you think we will see from target . Everybodys numbers will be better for people to play. Macys numbers will get better, target, walmart, not a dig player online relatively speaking will get better. Cheryl the average amount was 398, mr. 423, the overall revenue up by 7 billion for the entire weekend. That tells me the consumer is willing to spend overall read november, december for the retailers 30 of the annual revenue. When you turn a 20 hour day for 28 hour day, you can do a lot of business. The real question is what do we steal from this week . Black friday will be a Great Holiday weekend. The question is does that tell you about the rest of the season . The best predictor of the Holiday Season is back to school, the good news is back to school is really good, so i think we will see a very solid finish i dont think lik black friday tells you that. Cheryl thanksgiving night was very strong. As much as we talk about it, the salespeople, it is worth their while. Thank you very much. Dennis, over to you. Dennis Warren Buffett lays into Grover Norquist making the argument for the president s tax hike. Isnt that nice of him . Will even more abandon th that o tax hike pledge . A look at the winners on the s p. [ engine revs ] [ male announcer ] the mercedesbenz winter event is back, with the perfect vehicle thats just right for you, no matter which list youre on. [ santa ] ho, ho, ho, ho [ male announcer ] lease a 2013 c250 for 349 a month at your local mercedesbenz dealer. Nicole i am Nicole Petallides live on the floor of the New York Stock Exchange. Every 15 minutes here on the Fox Business Network we have stocks now, stocks on the move. Taking a look at knight capital. The trading firm on the floor of the marketmaking unit. On the floor of the New York Stock Exchange. Now we have some of the other trading firms, looking at maybe making an offer tonight when they remember back in august, the heavy trading glitch launching new software and had to take a loss on that one. Today the stock is up about 10 , and so theres a look at the stock right now on a day the dow down 93 points after gaining over 3 last week. Norquist fighting back on markets now in the last hour. Warren buffett has a confident ghostwriter, the idea that taxes dont affect Economic Growth is an interesting one. But it is counterfactual. Dennis joining us with his take on this controversy wall street journal, washington journal. Warren buffett, a guy worth 36 alien dollars says he can speak for people who earn 500,000 per year and tax increases are just fine. Will this weigh heavily on congress . The battle is underway. It is a gray area in which everybody is moving around including Warren Buffett, Grover Norquist. Republicans have said yes, we recognize the need for more tax revenues. Does that mean tax rates go up or others found revenues . We move beyond the tax pledge to what do people mean when they say increased revenues . Dennis would president obama, in your view, be willing to a deal that does not raise the highest tax rate to 39. 6 from 35 . Yes and no. I think the democrats are basically going to insist on some decoupling of the highend tax rate from everything else. Raise something on the top end. This does not mean raising it to 39. 6 . I suspect the democrats in the white house will live with that because it established the principle we can raise the top tax rate. Will republicans live with that . I am not sure. Some would, some probably wont. Theres a more artful compromise, just dont know what it is. Dennis Small Businesses joining us. Tax hikes on the actual rate orr revenue hikes will hurt him either way. Take a listen. I think if you are taking away money from job creators, that is not a good thing. People that are out there every day, we have mortgages and our equipment, or buildings, what happens is we are already strained because of the recession. So we need relief so that we are more competitive. Dennis do you think president obama is hosting the Small Business events today to hear views like that or is he hoping to preach to them to why they should accept tax increases . Im not sure, but would president obama would say to such a comment is likely Something Like this. 97 of the Small Businesses are not going to be affected if you raise the top tax rate. That is a point of dispute. That is the area of disagreement. I would say one of the disagreements is smallbusiness people are being let into the conversation. That is a significant change from a year ago on business in general and Small Business in particular seems to be on the outside of his argument looking in. At least at this point there is an intent on the democratic side which could lead to a outcome. Dennis he said at a lower Government Spending as a total of the gdp to 21 . If you look at Government Spending last year, 1. 5 is basically closed 250 billion per year. I dont see that on any side of the aisle, do you . At that point the Vice President biden and number two republican in the house agreed on the 800 billion in spending cuts. That is before anybody got medicare and medicaid. I am not sure the quantity is something anybody is suggesting, but the concept you have to have substantial spending inductions longer lines were talking about is understood by both sides. We agree to spending cuts and are not sure the revenue increases, reached the river increases but are not sure you will get the spending cuts. Not so much a disagreement that both elements are necessary. Dennis thank you for being with us. Cheryl talk about raining on your parade, literally. Thousands of pieces of confetti rained down on the thanksgiving day parade. But the confetti contained confidential information disclosing bank details, Social Security numbers, even information about mitt romneys motorcade. As the documents originated from the Police Department in long island, investigation is currently underway. I was at the parade, with all colored parade. Dennis thank you very much. There is no privacy anywhere. My goodness. Cheryl have already said we buy from an outside vendor, but nevertheless we did not put that out there on purpose. I do not think it was macys behind that. Nassau county, some explaining to do. Dennis a record thanksgiving box office. Winners and losers are coming up. Cheryl we will have the state that leads the pack coming up in the west coast minute. And a look at the 10year treasury. [ male announcer ] this is karen anjeremiah. They dont know it yet, but they gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, theyll find some retirement people who are paid on salary, not commission. Theyll get straightforward guidance and be able to focus on other thgs, like each other, which isnt rocket science. Its just common sense. From td ameritrade. I am tracy byrnes with your fox business brief. The bearish tumble street continues in afternoon trading. Right now the dow was down about 94 points. President obama has looked to replace the head of the Security Exchange commission. She led the sec through Major Overhaul in the wake of a financial crisis. Our very own fox business Senior Correspondent Charlie Gasparino first reported the looming departure. Conoco phillips is selling the 8. 4 stake in the sea production agreement for roughly 5 billion. The oil giant said that already knows the sources and has extended national arm of the oil and natural gas in india. That is the Fox Business Network, giving you the power to prosper. Dennis a vampire, secret agent and a dead president with a new record of the Film Box Office over the weekend. 288 million, better than the record set in 09. Sucking up 64 million. The first bond film to cross the 209 mark in the west and lincoln. And Charlie Sheen knows Lindsay Lohans pain. So the star of anger management which let charlie strike it rich is handing 100,000 to help back taxes. She will probably have to pay more taxes on the gift. And now this, abctv station, the two going to surprise viewers and their bosses at the end of their show quitting on air. Any thoughts on that strategy . Cheryl elected the opportunity to lets you know that Dennis Kneale and i have had a good run. None of them will ever work in television. Ever. I tell you, theres no better way than to do something so public. Nobody will hire them ever again. White house economists are warning retailers can take a hit of the u. S. Was only fiscal cliff. Sandra smith has the trade today. Sandra you want to do your homework, go and see what people are buying. They do a lot of footwear including og ugg boots. Dont leave retailers altogether, check out the online retailers. Really interesting, the orange e line is the online retailer. Names like amazon, ebay, overstock a few that make up the line. The blue line is the etf weeding out amazon. Your brickandmortar stores. This is the 2012 performance. Up 46 this year. A lot more people shopping online so keep that in mind taking your Retail Stocks. I will use best buy as an example. A lot are going online selling a lot more. Best buy is one of them really ramping up. A stock taking more than half of the value. Deftly going to be one to watch. Hiring more employees. Ecommerce site going very well. Amazon. Com is heads to match. Keep in mind taking her stocks over the holidays. They also say this weekend not indicative. Keep in mind. Go to the stars and see what people are buying. Cheryl walmart, target, these guys were big winners in the online stocks on friday. It is positive. Dennis stocks every 15 minutes, nicole at the New York Stock Exchange watching facebook. Nicole this whole weekend cyber monday, forget it. I miss all the sales. Take a look at facebook up over 7 today down 76 points on wall street, as we got an upgrade today over at bernsteins. It is interesting because over the last 26 weeks weve seen facebook up 25 , the last three months have been pretty good on the rise, that is some good news. As we noted the dow last week gained over 400 points. Down now, up off of the earlier lows but still concerned about greece and the dollar has been higher for most of the day although not too high, coming off of the highs. Something factoring in. The fear index to the upside. That is the latest here on the noisy floor of the New York Stock Exchange. Cheryl nicole, thank you. We will see you at the top of the hour. Santa is worth how much . We have the rockwell painting in our studio ahead. Dennis some of the winners on the nasdaq. Whats next . Hes going to apply testosterone to his underm. Axiron, the only underarm treatment for low t, can restore testosterone levels back to normal in most men. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others through direct contact. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these signs and symptoms to your doctor if they occur. Tell your doctor about all medical conditions and medications. Do not use if you have prostate or breast cancer. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. See your doctor, and for a 30day free trial, go to axiron. Com. Cheryl it is time for your west coast minute. According to really keep track, flipping is up 25 since last year, and phoenix is the number one market for it with 9182 homes flipped in the first half of 2012. A typical flip is with a home is bought, they fix it up and sell it within a few months time. The bay area, Technology Companies scouring the country for app designers. One ceo said he had 100 employees but 50 jobs open because the demand is greater than the supply. One in four jobs are in california. Washington state governor is leaving office in two months but still pushing for congress to approve the right for states to improve online sales taxes from outofstate companies. Willing to fly to washington to get an online tax passed. That is your west coas your wet minute. Dennis in investors jump out of the stock market. Christie saw the secondhighest sale on record a recent postwar art auction bringing 412 million in this week and other south american art featuring this Norman Rockwell piece. The auction in todays bringing tha total of 33 million sales. This is one of the prized pieces. How much will it go for, do you figure . Speak we understand 300,000 a reasonable estimate. Dennis in september he had another rockwell auction that went especially low. Art has been selling for more than you had expected recently. Sales have been at their highest. Over 770 million of art and were hoping to continue with the american art sale november 28. Dennis 124 nations. With rockwell, not a lot of foreign demand. Will that keep it down . Since it is our hometown hero, is prominently driven american collectors and wellknown collectors such as Steven Spielberg held an exhibition of the collections telling stories of the smithsonian in 2010 and had a tremendous impact on the market. The top 10 highest prices for his work have been achieved over the last 10 years. Dennis and they will be bidding in this auction, you can figure . We can only hope. Dennis we can see monet, is there something tacky about Norman Rockwell art that art collectors would look down on, or is it classic . In the past people have taken a few of it as a mere illustration, that is why youll see a lot of rockwell paintings. At the time they were painted with giving them out to those who posed for him, family friends, considering the value and reproduction, but now were seeing a much greater appreciation for rockwells works on the market. Dennis tell us about this particular painting. Commissioned in 1921 for the western Newspaper Union in and then it was lost for over 80 years, how so . We dont know the exact history, but it seems rockwell has given it to an employe empls who admired it and then passed away and went to an estate sale in california. The grandmother of the current owner actually ran the estate sale and a click of this object to take for herself. She hid it in her closet and only in the past may that they discovered it, read the signature and found people had been looking for painting for quite some time. Dennis the back story can help, right . Absolutely. The record price for a rockwell was 15. 4 million wit was a simr story of discovery. Hidden behind a trap door. These sort of stories while they arent factored into the estimates, they do have the appeal. Dennis thank you for being with us. Cheryl that painting would make a great christmas present. If the items on the 12 days of christmas are unde or on your sg list this year, get ready to dig deep. The price over 107,000 actually 6 increase from last years cost. Some items that went up, a pear tree jumped 12 from last year. Five gold rings jumped over 16 . Every year we track the 12 days of christmas, it is what we like to do because it is fun. Dennis a really good buy on lords leaping. Cheryl the bird, the partridge prices, they are up because of the drought. More expensive to feed them. More useless information. Dennis with a promise worth in washington these days . Cheryl the growing number of leaders adding on to the pledge to not raise taxes. But can you believe them . The coming up next. Re. [ male announcer ] at humna, we understand the value of quality time and personal attention. Which is why we are proud to partner with Health Care Professionals who understand the difference that quality time with our members can make. Thats a very nice cake ohh [ giggles ] [ male announcer ] humana thanks the physicians, nurses, hospitals, pharmacists and other Health Professionals who helped us achieve the highest average star rating among National Medicare companies. And become the first and only National Medicare Advantage Company to achieve a 5star rating for a medicare plan. Your efforts result in the quality ofare and service were able to provide. Which means Better Health outcomes. 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And now youre protected. We heard a Small Business ceo say on air even attacks hike increase or deduction, either one will hurt, and yet it seems that is the Direction Congress is headed. The dow down, but it would be happy. There will be a bunch of ceos and Small Businesses there, a this is onerous, if you will. Your question was perfect, do you think the president will be listening or more heres what i think and i will lecture you for the next three and a half hours. We will see. But at least for the next hour, somebody has the joy of bliss of frances and markets now. Melissa thank you. Betty the market is