Transcripts For FBC Markets Now 20130102

Car, your taxes, the whole thing. The next big headline for market baby jobs friday. Where is the job creation coming from in this economy. Ad space is just about gone, apparently, for this years super bowl. You will not believe some of the money that companies are throwing around this year. Welcome, everybody. We have to start with the markets. At the top of the hour, we go to the New York Stock Exchange. Nicole we are seeing the markets with thing this morning. We have seen all the major averages over a 2 gain. A stellar day on wall street with the Dow Jones Industrials of 245 points. I just checked a moment ago. All 30 name remained in the green. Hewlettpackard really got beat up last year. It is a top performer today. Bank of america out which was up over 100 last year moved to a 52 week high. Gains across the board. Connell thank you. We will talk about the fiscal cliff deal in a few minutes. What does it really mean for you. What is in this thing for, peter barnes will be on it all day. We will be looking at the impact of all of it. Comparing what you paid in 2012 with what you will be paying in 2013. The big change this week, of course, was the restoration of the top marginal tax. It is for individuals making more than 400,000 families making more than 450,000. Unrelated to this weeks legislation is a new tax under the President Health care reform law. The tax increase that will hit all taxpayers, lower income as well as upper income is the expiration of the payroll tax cut. That you percentage point. Connell that is the story. Peter barnes is on it. We can talk about all the politics, which we will, but peter pulled the back in 30 minutes. Right now, lets bring byron york in. Lets talk about what is next. Good to see you. They created another cliff that we will all be able to do this all over again. Yes and two months from now. The big socalled sequester cuts were going to go into affect today. They put it off for two months. A lot of senators are concerned about these cuts because they were split halfway between Discretionary Spending and military. That is a huge hit. And then, there is the debt ceiling. We have already technically hit the debt ceiling. Republicans believe, i do not know if they are right but they believe they can win some spending discussions. There is this huge argument that there was a huge loss for republicans in this latest negotiation. They gave in way too much. I assume the republican argument is, hey, listen, taxes are off the table now. The president cannot hold that over our heads. I asked them about this a lot. They said basically we are holding a losing hand on taxes. The American People supported raising taxes on the highest bracket. 3 we are on the right side of spending. We will use our leverage to fight after we get past this death feeling thing. I do not know what will happen. They will be accusing republicans of being willing to take the country to the edge of default. Connell the higher stakes is what people will say. Literally cannot pay the bills and things start shutting down. Republicans have to be prepared. Connell at this point, you do not want to dig into the numbers too much, but at the same time, they are important. The president came out and said he wanted 1. 6 trillion. Everyone says that if the big model. That is well over 2 trillion revenue. Right after the election, republicans had said we could raise a lot of revenue simply by closing loopholes. They did not go that route. They will go back to the closing loopholes. What would you say to investors today that they should be careful. There is no reason that something that cannot happen in a couple of months. Connell thank you very much for that. You are probably right. [ laughter ] connell lets talk more about this huge market rally. We are definitely off to the races for the new year. David cho talk is next up. What do you make of this . Connell, we are clear. We have a three bladed stool. Monetary policy, we know what it will be for several years. Tax policy now resolved. We know what it will be for several years. The deficit is the missing piece. Then it is complete. They have 600 billion. All they did was create another cliff. In the next deal, they wont want more revenue. I am not so sure we have complete clarity. We know how to plan an estate and a trust. That will not change. Not going to change. Major rates are now known instead of an unknown question. We do not have those questions anymore. Clarity and predictability is the missing ingredient. We have talked about this. I have been fully invested here. Connell the thing that byron proud of, if they go through this nonsense again, and, they will, by the way, you are really playing a highstakes game there. Those pardoned you say, boy, i want to get a good path that the market. Let me sell it here just to be sure. I am not so quick to bail on this market. You take. Low Interest Rates and keep them low. You resolve the tax rates so people can plan on them. What do we know about the debt fight . It will be one that will compress that, not expand it. We have launched the Congressional Campaign of 2014. We have not even sworn and the new players yet. I think it is also worth pointing out that the markets did not really want a big deal. The shortterm deal, it is pretty good for stocks. Connell, we took the recession from the cliff off of the table now. No recession now. Connell there is your polish argument. It is always good to talk to you, david. Thank you. Connell high seas, strong wind off of alaska. Check for any damage. Look at the video of this thing. A large vessel came on ground. It is not there yet if any of the rigs fuel may have spilled. That is another big story today. Vehicle rental company avis buying zip car. In an effort to expand its presence. The acquisition is complementary. If we take a look at the stock price is involved there, that is another big piece of science. A not so happy new year for apples Flagship Paris store. The french press is reporting that four masked and individuals still over a Million Dollars of goods from the store. It all happened on new years eve. The theft occurred three hours after the store closed for the holiday. Local police had already been employed for the new years celebration. Apple says it is still fully evaluating the loss over in paris. We will have more on this big market runup. Charles payne is coming in. Look at the dow. 234 points higher. The judge will be here. Andrew napolitano not very happy about the deal. Surprise surprise. Had space. It is almost gone for the super bowl this year. Time is money. Talking about some sports business. Here is how it sounded at the white house last night. We will be right back. I want to thank all the leaders of the house and senate. In particular, i want to thank the work that was done by my extraordinary Vice President , joe biden. As well as, leader perry harry reid, nancy pelosi and mitch mcconnell. Joe, once again, i want to thank you for your great work. Connell a reminder that after this deal gets done, we have peter barnes all day long. He will be back in about 15 minutes. His next report looks at all of you that makes between 50 and 70,000 a year. He is back. Making a little money with charles payne. Charles it looks fantastic. At the end of the day, what will my check look like . On a different note, caterpillar , i keep hitting this one. I love that this is a bet on the Global Economy. I am looking around at all these different global estimates for gdp next year. I think they are extraordinarily low. Lets just take some things that have happened over the last couple weeks. Japan just elected a guy who is out of his mind. I am not very excited about his money printing policies. This guy is so serious about bringing back the Warrior Spirit of japan. Brazil is being underestimated. The Global Economy is what will drive caterpillar. I think this stock will be off to the races. Connell i am sure you do not like him out of this deal, but look at stocks. Charles i am making people a lot of money today. This is a kneejerk reaction. It is a good sign that a sigh of relief rally, but it does not mean much for our economy. It could also be much worse which is what the market is celebrating. Connell charles, next hour, we will see you. Time to go back to Nicole Petallides. Nicole we avoided a disaster. Lets celebrate. We are off of our earlier highs. All three had been above 2 each. We are still seeing a gain of the dow. The tech heavy nasdaq is up over 2 . Lets take a look at visa and mastercard. Barclays upgraded both of these names. I should note that both names actually hit 52 week highs. 170. That is up from 155. Mastercard, much of the same. The old target was 505. The new price target is 575. Certainly, some upside potential there. Back to you. Connell thank you. So much more to come here. One of the biggest headlines involves antilabor. We used to say he was the next warren buffett. It is important because it could be a sign that says by may soon be going private. We will get into that. And that ad sales for the super bowl next month are just about sold out. First, we talked about stocks so much. Here is a look at currently. At a dry cleaner, we replaced people with a machine. What . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. Maybe you want to incorporate a business. Orrotect your family with a will or living trust. And youd like the help of an attorney. At legalzoom a legal plan attorney is available in most states with every personalized document to answer questions. Get started at legalzoom. Com today. And now youre protected. Tdd 18003452550 tdd 180052550 and the streetsmart edge Trading Platform from charles scab. Tdd 18003452550 gives me tools that help me find opportunities more easily. Tdd 18003452550 i can even access it from the cloud and trade on any computer. Tdd 18003452550 and with schwab mobile, tdd 18003452550 i can focus on trading anyplace, anytime. Tdd 18003452550 until i choose to focus on Something Else. Tdd 18003452550 all this with no trade minimums. Tdd 18003452550 and only 8. 95 a trade. Tdd 18003452550 open an account with a 50,000 deposit, tdd 18003452550 and get 6 months commissionfree trades. Tdd 18003452550 call 18667513261. Hello, everybody. I have your fox news minute. Pennsylvania governor announced he is suing the ncaa over sanctions imposed over penn state university. Those sanctions which were agreed to by the university in july include a 60 million fine and a four year ballgame band. People have been killed in syria. The victims were among the more than 100 killed in todays violence. Students who attend Sandy Hook Elementary School in newtown, connecticut, will be heading back to school tomorrow. They will be using a school in a neighboring town where their old classrooms have been completely recreated. Back to connell. Connell thank you very much. We will go back to the markets here today. A big day for the markets. Oil has been up. Sandra smith is with us with more in the tray today from chicago. Sandra hey, connell. Oil is a point of focus right now. It is topping 93 a barrel. This as the stock market rallies and we get a very weak dollar. What do you do in this environment . Oil is above 93. I think it is a weak dollar. Europe, japan in the u. S. All have their issues. With the european union, the banks are still leveraged at 2007 levels. I do not think the story in europe is over. With the news coming out, the numbers are good. We see expansion coming in at the 95 level. When we look at things like oil, we also look at things like gold. What is the play following the fiscal cliff deal . I like gold. The liquidity is so huge. My rule of concern as a traitor is the fact that this is a liquidity issue. We are at historical highs right now with no real growth. We are going to really feel retraction in the s p. Sandra okay. As we close up, i want to point out out gold is up 13. We have a surging dow period of 233 points. Liquidity is back. Volatility is back. They are also hoping that volume is back in 2013. On the first trading day of the year, with a rally like this, you are definitely getting a lot more attention in the markets. Connell sandra smith, thank you very much. To best buy people resigning. He is leaving it would be investor of any lampert. Now, this other story about the super bowl ads. The new numbers have come in. This years lineup is almost full. 3. 8 million each. This, by the way is the first year that the big game will include ads that are over one minute. There will be some commercials that are more than an hour long. What the debt deal means for you and your company. You will get the politics and find out exactly what the deal means for you. Peter barnes will be on in a moment. Look at some of these winners on the s p 500. We will be right back on the market now. We are breaking down by a in come. How much more might you have to pay in taxes depending on how much you make. Relief for victims of hurricane sandy. Another big story, it is not coming at least not yet. That is creating a outrage on capitol hill. It has been a big rally, 234 points to the upside, certainly hammering out the fiscal cliff deal last night, helps in the short term and the dow is up 1. 8 and even more with the nasdaq, is indeed,. 8 , we will check the markets as we do every 15 minutes on markets now. Here is one of the big reports you will see throughout the day on the Fox Business Network that really matters. You know the fiscal cliff deal was hammered out last night and you heard about the politics but do you know your taxes are most likely going up anyway . Peter barnes is back with more details on what the deal means. How affects you few make 50 to 75,000 a year. Peter a bunch of taxes hitting taxpayers starting this year including from this weeks tax bill. 50 to 75,000. According to the Tax Policy Center taxpayers making this amount this year will pay an additional 822 in federal taxes than they paid last year. The main thing hitting this income group is expiration of the payroll tax cut that congress and the president read on for the last two years. It would not extend by congress, neither side wanted to do that. That means we will be paying an extra two Percentage Points for your Social Security taxes, it had been reduced from 6. 2 for each employee to 4. 2 but 1,000 in the pocket, an average middleclass family, average person making 50,000 a year or so, that has gone away. You will see taxes go up by that amount and according to Tax Policy Center is about that, a little over 800. Peter barnes is back on markets now, a little higher income, 75 to 100,000. You will see reports throughout the day from peter barnes. Lets go to Nicole Petallides at stock exchange. Stocks every 15 minutes or so and this rally keeps going. Nicole is going well. When you think of volume versus down volume is extremely positive. We are kicking up a new year. The two days a lot of traders know we saw selling, up to get out and take the profits and what taxes were going to be and we have seen that. Jason weinberg was saying exactly that and the january effect, we are seeing people jump back in. And we will see january effects here the we have not seen in five years and expecting it to continue to go to the upside for january and february. We still have a lot of issues, washington and unresolved issues and a tough economy. The nearterm, the anticipation is a lot of people will get back into the market and a lot of cash on the sidelines. We will get into this debate about hurricanes sandy relief in a while but more on the fiscal cliff as Congress Reached that deal last night. Our next guest says we cant keep punching the ball. Democratic congressman ron kline from wisconsin and new Democrat Coalition is with us now from capitol hill. That is what happened here, even though the deal was hammered out as we go through this whole thing again. Happy new year. Was an imperfect solution to an imperfect process and we stopped this 11thhour brinksmanship which isnt conducive to the type of certainty our economy needs right now to continue to grow and create the jobs we need and shortterm measures dont get it done. Connell what do we do . The idea of getting Something Big guns seems like everybody, there with the relative amount of optimism about a, quote, grand bargain or something that looked like simpsonbowles, mostly everyone has given up on that. From the democrats fought on revenue, simpsonbowles, 2. 6 trillion in revenue which some people forget that was a ton of revenue and this one is 600 billion so you are not on this side, for get spending, were nowhere close to a grand bargain. Everyone knows what needs to be done. Every bipartisan commission, they reach the same conclusion. We need additional revenue, major spending reforms where the big money is in the federal budget, that is out connell there is nothing in this deal. Than you do it again in a few months. The democrats have got more spending cuts and literally nothing. The automatic spending cuts take effect at the end of february so between now and then back to talking to each other, the largest spending categories, rising healthcare costs, if we are not serious about these programs, and connell it is frustrating, you are actually write about this, Everybody Knows what has to be done. We pretty much do. It is close to simpsonbowles. But getting from here to there is almost impossible. Next time, democrats will fight tooth and nail for spending cuts, we need more revenue, 600 billion and ask for more revenue. Fighting the political process and political will to get it done but lets be fair. We came off of a campaign where democrats were attacked by the other side of taking 800 billion out of medicare and republicans were promising to restore that funding. They were also promising to increase defense spending by 2 trillion over ten years so they have to be realistic and spending cuts that they are willing to offer, that we need to log onto and jump into and we need to go big. The economic certainty lacking right now, and to help the economic recovery and held the job creation with that we desperately need. That is the desperate thing we can do to get the fiscal house in order. Connell let me ask before i let you go because i will talk to congressman king about this coming up, we talk so much about spending cuts, the idea that the spending bill for hurricanes and the victims couldnt make it to the house floor last night. What is your view on that . We need to address it. Hopefully friday, later this week we will have a chance. The senate is waiting for the house but this was a major disaster, the worst disaster to hit the new england area in our lifetime, time for congress to step up and act as a community, as a nation to those in need. Connell thank you for coming on today. The judge is that coming up, and in the paul lozano, not happy about the deal for Different Reasons and he will talk about the tea party and how he thinks the Tea Party Got the short end of the stick and what it means for the future of those that have that point of view. More from the president last night after the fiscal cliff deal was cut. Im very open to compromise. I agree with democrats and republicans that the aging population and rising cost of Health Care Makes medicare the biggest contributor our deficit. I believe we have to find ways to reform that program without hurting seniors to count on it to survive and i believe it further unnecessary spending in government that we can eliminate. But we cant simply cut our way to prosperity. [ male announcer ] how could a luminous protein in jellyfish, impact Life Expectancy in the u. S. , real estate in hong kong, and the optics industry in germany . At t. Rowe price, we understand the connections of a complex, global econom its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Connell all day long peter barnes out of d. C. Breaks down the fiscal clip deal by income. His next report coming up at the top of the hour for people who make between 75 to 100,000 a year. The last report on people making 1050 and 75 is on the internet, foxbusiness. Com where all the reports will be, detailed reporting from peter barnes on what this means to you. Tea party backers wall in a bitter pill with the deal last night so says steve judicial analyst judge Andrew Napolitano is here with us. At the new year. Judge napolitano a dismal new year. Connell a huge loss for conservatives . Judge napolitano is a loss for fiscal conservatives, small government, people who believe in small government, members of the tea party, libertarians, people who believe the government should stay in a conference of the constitution and even for the Republican Party, what did they get in return raising taxes on the most productive, the most successful among us . Connell their argument is we have to do it again in two months and the president cant hold the fiscal cliff automatic increase in taxes from the bush tax cuts over hour heads anymore and now, republicans are saying, have the leverage on ridge spending argument. Judge napolitano having leverage in using leverage are vastly different things. I am fearful that the republicans will not use this leverage. The republicans believe the federal government is just one big cash machine and they can give it to people who didnt have their homes in short and suffered terribly because of sandy and let the president spend money doesnt have. In two months the president will ask for permission to raise the debt ceiling another 1 trillion. Will Republican Party say no . We let you raise taxes and wont let you spend money you dont have. At this rate, you know this better than i, the federal governments that will be 20 one trillion dollars at the end of the president s second term. The interest is 1 trillion a year. Taxpayers cant afford it. Connell many people in this area with the exception of that, say we need this money now. Judge napolitano they need the money and the money was given in new orleans within ten days of katrina being hit. They are not being treated the same way. The problem with sandys three infold. Senators from new york and new jersey filled legislation with pork that has nothing to do with sandy. They cant get the money overnight. The federal government going to be the source of last resort for every natural calamities that happened in the United States of america . It is we are going to change the constitution because the constitution does not authorize it. It has been in the past so i understand the argument. I have friends and relatives who suffered with sandy. I myself, my farm in new jersey suffered with sandy but when the government decides to give away tens of billions of dollars and to make it more palatable to those who represent people in district other than once hit by sandy, more important to, we are back to where we started. Spending money we dont have. Having no discipline. Operating the government outside the confines of the constitution. Republicans who voted in favor of this last night gave a green light to that kind of behavior. Sandy is a unique and discrete issue that involves a matter of life and death. Letting the president spend money that he doesnt have, raising taxes and getting spending concessions from him in return is another issue, one that will devour us in the future. Connell the next round on this if you had to predict, how do you think it will go . Will there be no spending cuts . There are obviously going to be spending cuts judge napolitano there are cuts and there are cuts. If they force the president to live within the confine the money he collects in taxes, that will gratify those of us who believe we have to stop the borrowing. But if they say just borrow a little less, not as much as you planned on but a little less, that wont satisfied those of us who know we cant afford any more borrowing. My prediction is the debt ceiling will go up, he will continue to borrow money, a few billion than he originally planned. Connell and about to say you wont be satisfied. The way it is going. Judge napolitano the way it is going will lead to bills that we cant pay for and we will look like greece in your lifetime and mine. Connell thanks, talk to you again soon. Judge napolitano i am happy beginning [talking over each other] judge napolitano the stock market likes catch a matter where it comes from. Connell another story. Insurance Companies Paying billions of dollars after natural disasters. We talk about sandy but just in general in 2012. Some claims went unpaid. People lacked proof of their belongings and companies all over the country are offering way to protect yourself from that. These are Home Inventory companies. They create lists of your valuables in the event that something goes terribly wrong. You can prove what is yours. Kerri michel bones together we stand Home Inventory in Colorado Springs and for an average of 549, places and serial numbers of your valuables. The list goes on a flasher drive or cd. Some Companies Keep things on their server or the cloud. Mitchell started her company after a waldo canyon fire hit Colorado Springs destroying nearly 350 homes. The flames moved so fast folks barely got out with their lives. Some people had 15 minutes to go through and click on their phone or whatever they could get that people had to grab a few things and they all say i would have given anything to do that. Now they are trying to recollect everything they have. It is hard to remember. Who can remember everything you are on . As many of you may know insurance co. Have forms to allow yourself to do this but a lot of folks dont take time to do this or they can miss things. Patio furniture, tools, sporting equipment. A lot of times the Insurance Companies would question what you did have and what the value was. If you have pictures of it, plus you have a serial number or whatever, then they can you can track down to cost at the time. It helps the Insurance Companies because it prevents fraud. Connell good story, thank you. Back to the markets, stocks every 15 minutes with a big rally underway today. We bring back Nicole Petallides from the New York Stock Exchange where we are up 200 points. Nicole the fear index moved to a five week low. You have seen bond yields moving hire. The ten year bond at 1. 3 . Not in too much worry about anything on wall street. On the contrary is just a day when everybody is buying everything. One of those 90 up days where every sector we follow closely has up arrows. There is a look at the Dow Jones Industrials up 2 is 30 points. The tech heavy nasdaq doing well at 2. 3 with tech names leading the way, intel and hewlettpackard, hewlettpackard was a name that was beaten down in 2012 but certainly a stellar performer. Names hitting new highs in the auto industry, a couple stories that are happening, ford and General Motors hit new 52 week highs. And good sales, pickup truck sales, improving demand in this economy. Then the hurts name writing the code waves, coattails of riding the wave, and you have a couple of stories there and all the names at new highs. Connell individual stories and overall market like the fiscal cliff deal, thank you. We move on to the deal that did not get done last night, a very emotional one for many people talking about relief for victims of hurricane sandy. This missive attitude was shown last night toward new york, new jersey and connecticut, a strain in the Republican Party. This is not the place to discuss politics but that politics seeped over into a government decision that was made. I cant imagine that type of in difference, that type of disregard, that cavalier attitude being shown in any other part of the country. Connell peter king in new york on the house floor. He will join us live from capitol hill on this important issue. Before we get to that, more winners in the market. Here they are at the nasdaq. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. Andrade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. Connell as we continue on markets now peter barnes reports all day long the fiscal cliff deal and is breaking down by income, detailed reporting. Next time he will be on at the top of the hour. Eight 49 minutes from now and looking at people who make 75 to 100,000 a year. Last time was between 50 to 75,000. We put on web site, foxbusiness. Com. As we talked about throughout the day and throughout this hour this fiscal cliff deal is the big story. The market rally associated with it but there is another huge story on capitol hill, about the bill that was not voted on. The bill for hurricanes and the relief. There was a vote expected last night that never made it to the house floor and president obama has come outer urging republicans in the house to have a vote today on a relief package for hurricanes and the. With us is congressman, republican peter king from capitol hill. Identify you that way in all seriousness, as a republican. Sure. I am republican, a real republican, National Security republican, homan security republican, someone who believes the federal government has that in the case of a natural disaster. My republican voting record is a lot more loyal than many other people and god save the Republican Party. At times the Republican Party has left me as happened last night. Connell to credible for the details you are not considering changing parties over this . Note. What i have said not at all. I have said anyone from new york or new jersey who contribute to the National Congressional republicans as happened last night is crazy. These guys are always coming raising money, people like Chris Christie going around raising money for them and we get treated like this. I am a republican but i will be looking at every vote on the basis not of party loyalty, the party was not there, i needed it for my constituents who are suffering, suffering is a measurable. Connell this is your caucus. Speaker of the house is republican john boehner, we thought there would be a vote. For what you have been told behindthescenes i am sure you ask the lot of questions. What happened . Still trying to figure out. Majority leader erich cantor doing in good faith all week but continues to deal with this in good faith, we have legislation drawn, supposed to come to a vote yesterday and told it was coming up this morning and was going to provide the full 60 billion. Two minutes, the 30 billion amendment will let up everything ready to go and we started hearing rumors that there wouldnt be votes and the vote was not going to come up and we asked eric and as far as he knew it was coming up but the speaker wouldnt give the green light and vote is over and we started hearing different things. The final vote comes and goes, the speaker is gone and told one of eric cantors aides that the bill was connell two part question to add it up because we have to go in a second. Do you think or do you know anything about a possible vote today and what do you say to the conservative argument that come of that say we voted on this fiscal cliff deal that didnt have any spending cuts and couldnt stomach another votes on spending and some members of the new york delegation brought up to me apparently loaded the bill up with pork. Any truth to that . Absolute lies. Whatever was in the bill that was considered pork was put in for other states, put in the senate, all taken out. Governor christie and Governor Cuomo and governor bloomberg give a breakdown of the republican leadership, we were told it was satisfactory. There was no pork. I wish they would tell the truth. Connell no vote you know of on the schedule today . No. 100 people are missing today. The house is not in session today. Connell congressman king from capitol hill, talk to you again soon. Back to the markets, big rally today with a deal on the fiscal cliff. Stuart hoffman from Pnc Financial services out of pittsburgh, peter barnes at the top of the hour on what this deal means to you individually but what does it mean to the economy as a whole . Stuart i think it is a good thing. We avoided the huge tax hikes that would have thrown the economy into recession. The disappointment is we kicked the can down the road on the spending side. The two month we gotta deal with the debt ceiling, we had assumed there would be 150 billion of tax hikes if you want to call it that and another 50 billion of spending cuts. That hasnt been determined. The unemployment would be extended. It really doesnt cause us to go back to the drawing board. The economy grows at a moderate 21 4 , two million jobs. Connell you could go back to the drawing board after the next deal. Could be for example more spending cuts . Could go back to the drawing board. Given how messy this does in the last couple days, the republican, House Republicans are back on their heels. I dont expect the same kind of drama we saw a yearago, august, when the debt ceiling bill, it will come out cleaner than that and we will get some spending cuts that we absolutely need but we are no longer more spending cuts than tax hikes so the balance really isnt there but it is, half a loaf is better than none. Connell they are not the most together bunch. Thank you very much. The back room wheeling and dealing that led up to the deal and the fight ahead over the debt ceiling. Cheryl casone coming up with adam shapiro talking with a democrat and republican as our coverage continues on markets now. [ male announcer ] where do you turn for legal matters . Maybe you want to incorporate a business. Orrotect your family with a will or living trust. And youd like the help of an attorney. At legalzoom a legal plan attorney is available in most states with every personalized document to answer questions. Get started at legalzoom. Com today. And now youre protected. But when i was in an accident. Today. I was worried the Health Care System spoke a language all its o with unitedhealthcare, i got help that fit my life. So i never missed a beat. Thats health in numbers. Unitedhealthcare. We asked total strangers to watch it for us. Thank you so much. I appreciate it. Ill be right back. They didnt take a dime. How much in fees does your bank take to watch your money . If your bank takes more money than a stranger, you need an ally. Ally bank. Your money needs an ally. Many hot dogs are within you. Try peptobismol togo, its the power of pepto, but it fits in your pocket. Now tell the world daniel. Of peptobismol togo. Welcome back to market now. I am adam shapiro. Cheryl and i am cheryl casone. We talk about the backroom wheeling and dealing that led to the fiscal cliff deal. Cheryl no matter what your income level, your taxes will be going up. Peter barnes will be continuing on this story. Why that big hdtv you just got for christmas may be outdated. Cheryl stocks now and every 15 minutes. Nicole petallides is on the floor of the New York Stock Exchange. Nicole the Dow Jones Industrials jumping 219 points right now. Still a stellar day on wall street. Almost every stock you check has an up arrow. A couple of things are behind. Obviously, number one, first and foremost, the sugar high coming off of what we have seen from washington. They made a decision at least here for the nearterm. And the fact that people are getting back in now that they know what is what. Back to you. Cheryl thank you very much. The dow up 200 points. Can i quote to you real quick, cheryl got a hold of a note from Jpmorgan Chase and they quote a resolution about nearterm resolutions and very little about fiscal sustainability issues. Taxes go up and we get real revenue. The real issues have not been solved. I think that is exactly right. What got done was the bare minimum. Really, it is complete insufficient to the real needs and things that need to be addressed. This seems to be a little overreaction to that which they should not be reacting to. There was some cleanup at the end of the year. I think that a state came in a little bit better than people had expected. There were a lot of things that were a better deal in terms of taxes and investments. On the other side, without any addressing of the spending cuts, that issue is on the table. Cheryl you have been talking about the fact that you expected him any deal by the end of the year. In a way, though, you got more deals than even you predicted. I think on the tax side it was more favorable to the equity markets and to a risk on environment and i think people had inspected. It is up to 450,000. Again, the dividend and Capital Gains are far less than it could have been. We will lose a percent of gdp. At what point do you look at this and say i have to get out of this now. Longterm is not looking good. This afternoon. [ laughter ] i am concerned that the debt ceiling will take control of this market. Memories from 2011 of just how dysfunctional it was caused the market to fall somewhere between 1520 . President obama does not want to negotiate these points. That is exactly what is about to happen. Cheryl we had some bright spots in the 2011 year. If we stay in that group for 2013, maybe that is the way to avoid the disaster that is washington. That is a great point. Only second to jobs. Housing is such a benefit in terms of people feeling better about things. I do think that there is a lot of good things. I think that we will see a fairly dysfunctional washington continue. I think the markets are getting somewhat numb to it. Ultimately, a deal does get reached. Since they cut it, my expectation is they are preparing for a fairly contentious january and starting right now. Cheryl we will ask a couple of those numbers right now. Good to see you. Thank you. Markets are celebrating on capitol hill. They are licking their wounds preparing for the next fight. Joining me now is and john garamendi. Welcome to both of you. Congressman garamendi, i want to start with you. You were sitting in the House Chamber last night. When he said this and all that is left is spending cuts. So my question we have to ask ourselves is what programs do we cut and how do we cut them. We will look back on this night and regret it. Notwithstanding the fact that 95 of us will vote for it. Cheryl congressman garamendi, what were you thinking when your fellow democrat made that speech on the floor last night . I think that he is right, but i think he is almost wrong. I am a half full kind of person. I feel the energy that exists in california. That energy has been at least partially released by what we did last night. That has been resolved. Now if we can just get this next piece done, this extraordinarily powerful economy that we have, i am a rancher, i bought this on a very powerful force waiting for me to tell the source which way we will go to get this cattle. Once i told the force, we were off. We need to get this sequestration and the debt limit done. Whatever way we do it. We know we have 900 billion of additional cuts that are there. Cheryl there will be an argument. They will do this for months. The American People will see another longterm fight happening. It does not have to be that way. Cheryl but it will be. I do not want to deny you the opportunity to have a crisis. We can work this out. We know that the cuts are there. 900 billion in the sequestration. Get it done. Figure out how to do it wisely and move on. Cheryl i do want to bring in the other congressmen. One thing i want to ask you about yesterday, were you in the gop caucus . I definitely was. Yes. Cheryl we saw that the deal would add 4 trillion to the deficit, was that where the contention started in that meeting behind closed doors or was it Something Else that kick things off yesterday . That was the main bone of contention. The College Bowl Season is sort of wrapping up in the most lopsided game was the one that we played here in washington. The fiscal insanity bowl, i call it. That is a concern that we have and the conservative part of the Republican Caucus in congress. We felt very strongly that, once again, the old expression kicking the can down the road on solving the tooth problem. That is excess spending, outofcontrol spending and that does not even address the issue of medicare, medicaid and Social Security. We need to fix the problem, longterm. Cheryl what about the long fight that we are all getting ready for when it comes to the dead ceiling and sequestration. Did you feel railroaded yesterday . I did not feel railroaded. I think boehner and paul ryan voted for the bill. That is the kind of issue that we were faced with. The president has said no more is he not for that we should never increase the debt ceiling in any fiscal year where we do not have a budget or the bills passed for that fiscal year. Cheryl we are expecting something on sandy. We are expecting a lot of great things from you both. Do not let us down. We will make it happen. Cheryl thank you very much. At the end of the day, what does the cliff agreement mean for you. Cheryl fox business is breaking it down for you by income all day today. Peter barnes is back on what it means if you make between 75 and 100,000. Peter we are looking at how a bunch of new taxes are hitting taxpayers starting this year. The big change this week, of course, was the restoration of the top marginal tax rate. Families making more than 450,000 a year. Those taxpayers will see it rise from 20 from 15 . Unrelated to this weeks tax regulation is a new one under the president s tax reform law. A surcharge on Investment Income for individuals making more than 200,000 a year and families making more than 250,000 a year. It will hit all taxpayers, that is the expiration of the payroll tax cut. That is the main thing increasing taxes for taxpayers. Their tax bill will go up by an average of 1200. Social security withholding rises from 6. 2 this year from 4. 2 last year. Cheryl and adam. Cheryl peter barnes, thank you very much. Next hour peter will be looking at how much the cliff deal will cost you if you make between 200,000. 250000. If you missed any part of this, you can find it on fox business. Com. How a 200 million tax break for rum makers got into the agreement. Plus, we will have the latest on an oil ship carrying fuel that is grounded off the coast of alaska. The weather is making things talk. As we do every day at this time, take a look at how oil is trading. We have breaking news. Ceo of Goldman Sachs is trading his thoughts on the fiscal cliff deal. This agreement is a step forward to injecting growth and Investor Confidence into the u. S. Economy. He goes on to talk about the need to find consensus in other areas. He does not say how he feels about the lack of any action on spending cuts. Cheryl i wonder how he feels about how his personal tax structure will look like. All day long, peter barnes will be breaking down last night fiscal cliff feels. If you missed his last reports, you can go to fox business. Com. All of it is there. It is great information for all of you. Stocks now as we do every 15 minutes. Cheryl first, to Nicole Petallides on the floor of the New York Stock Exchange. Nicole this is a great day on wall street. The market whipping across the board. Obviously a day where you are seeing up arrows across the screen. The nasdaq is the best of the bunch. The dow is up nearly 230 points. The s p 500 also jumping. You are seeing a lot of 52 week highs. I also wanted to take a look at hewlettpackard. Hewlettpackard which was beat up last year, today it is up 5 . It was the number one loser in the dow jones industrial. Sony things that affected hewlettpackard and pushed it to the downside. It is no surprise to see if bouncing back. Sometimes the ones that are the most beaten back are the ones to come back the fastest. That is the latest here at the New York Stock Exchange. Sandra the bullish bets are on the table today. Commodities are hot. Take a look at your biggest gainers. Silver is leading the way. This has much more of an industrial component then those gold. Silver is up by even a bigger percentage. Up by 2 on the day. Copper prices also getting a nice boost. Crude oil prices up. Gains a across the board. Maybe not for all the right reasons. After that deal was done last night, the u. S. Dollar extremely weak in todays session. The u. S. Dollar weakness, that props up the dollars and denominated commodities. That is what is giving us those green arrows. Crude oil hitting a threemonth high. 93. 87 a barrel. We are starting to look at triple digits again possibly. Cheryl we will see you again at the bottom of the hour. He is back to make you some money. Charles payne has a multitasking stock that could make you 800 some money and cleaner house at the same time. Charles you know the i robot products. This is a stock that is acting really well today. It will probably trade at least 50 of its average daily volume. The stock has been hit because they keep losing out on these defense contracts. Putting that aside, though, their home robot system is absolutely through the roof. In america it was up 8 in the last quarter. You have the floor cleaner. You have the whole thing. [talking over each other] [ laughter ] charles you have two schools of thought on this. I love the way it is acting. Maybe a 2. 5. It is a little bit higher risk than normal. Cheryl god, people are lazy. [ laughter ] who cleaned . Cheryl do you clean . No. Cheryl it is a good stock play. We are lazy, but you could make money on that. Thank you, charles. Happy new year. Hollywood producers getting some tax breaks. Cheryl why your new flatscreen tv they already be outdated. First, how the worlds currencies are faring against the u. S. Greenback. Droid dna augmentation initiated. Vision expanding to a 5inch 1080p hd display and camera. Touch acquiring nfc. Hearing evolving with b beats audio. Wireless charging activated. Introducing droid dna by htc. Its not an upgrade to your phone. Its an upgrade to yourself. At 23 minutes past the hour, i have your fox news minute. New figures from the United Nations says more than 60 people have been killed. Dozens were killed in an airstrike on a gas station in damascus. A warplane fired a missile into cars waiting in line. Students who attended Sandy Hook Elementary School will now be attending class tomorrow at a former middle school. The open house is being held for students today. The students have not attended class since the gunmen killed 20 students and six teachers last month. Suing the ncaa. The school is fined 60 million. Lawmakers are objecting to the money being used outside the state. That is your fox news minute. Back to you in the studio. Cheryl thank you very much. Nice to see you. If you are already upset with the fiscal cliff deal that was cut early this morning. Take a look at this. Hidden in the bill are these little goodies. 430 million for hollywood producers. 331 producers for railroads. Twentytwo for puerto rico and Virgin Islands rum producers. Seventy again for nascar. 4 million for electric motorcycle makers. If you like all of this, we will see what greg thinks about it. You say, greg, this is crazy. Happy new year. It is totally crazy. I do not know why you or i did not get any of that money. Look at this. It just reinforces why americans are so deeply cynical about congress. They wait until the last minute to do with taxes. Now you have a bill that creates virtually no spending cuts and all of this junk in it. Cheryl is one of the reasons the caucus went for two hours yesterday was the cbo score came out. It was 4 trillion to the deficit. We are going in the wrong direction with spending. As a market participant, what you say to all of our viewers out there . Well, first of all, it went way up because we got the tax cuts. There was no spending reduction. That was outrageous. It will come. I guess what i say to all the viewers and investors, we are not out of the woods yet. I think it will be a slow First Quarter because we do have some tax hikes, like the payroll taxes going up. It is a big deal. I think the republicans were so fumigated why this bargain that they will go overboard to provoke a fight on the debt ceiling. Cheryl you think they will go after the u. S. Government again . Well, that is the issue. If we continue to look this dysfunctional and we go cry to the edge of the cliff, once again, this time on the debt ceiling and pick fights on sequestration, then i think, yes, they will have to give us a very careful look again. Cheryl now, again, the debt ceiling issue, the debate has already started today. I have to go back to market reaction. We have had a great rally today. The dow is up more than 200 points. It is so volatile to what we are saying out of washington. Do you think Market Participants can safely believe that they will be able to agree and two months . To think we will Work Together . Yes. I think the new Congress Everyone is entitled to a breather. This tale guarantees at least modest growth. I guarantee you, over the next week or two, the focus will shift to late february. That is why it will make this last one look tame. Cheryl greg valliere, thank you for joining us. Happy new year. Same to you. Must be on an at t connection. That cut short their. 2012 a good year for car sales. This year will be better. Is it time to get into auto stock. Cheryl plus, the fiscal cliff relief rally. The time to get out of the market is actually now. Take your marbles and run today. First, as we go to break, take a look at s p winners and losers. First trading day of 2013 on markets now. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only 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. Like all standardized Medicare Supplement plans, they pick up some of what medicare doesnt pay. And save you up to thousands of dollars in outofpocket costs. Call today to request a free decision guide to help you better understand what medicare is all about. And which aarp Medicare Supplement plan works best for you. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and youll never need a referral to see a specialist. Theres a range of plans to choose from, too. And they all travel with you. Anywhere in the country. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. Call today. Remember, Medicare Supplement insurance helps cover some of what medicare doesnt pay expenses that could really add up. These kinds of plans could saveou up tohousands in outofpock costs. Youll be able choose any doctor who accepts medicare patients. And you never need referrals. So dont wait. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your. This easytounderstand guide will answer some of your questions, and help you find the aarp Medicare Supplement plan thats right for you. Cheryl stocks every 15 minutes, but, of course,ny colt, a nice rally. Names in there . A lot, you name it, whether its tech, banks, or retail, drugs, up arrows across the board. One of those days where you follow all ten sectors so closely, theres all up arrows. Market extremely positive on the heels of the lawmakers averting the fiscal cliff, kicking off 2013 in a nice fashion. The nasdaq composite up two and a quarter percent with a lot of winners. Dollar was lower today. I see it gaining ground. That could pressure things around here, and the tenyear bond at 1. 83 . We should look here at walgreens raised today to market pimple upgrading on evaluation just saying its a good buy here. The margins momentum, good news there, and accelerating growth. The price target is 45 so at 37. 97, theres potential. Back to you. Adam thank you very much. See you in 15 minutes. The next guest says we may have averted the cliff, but there is still a bumpy road ahead for stocks. Jeff, almanac editor chief joining us now. You are bearish, not convinced theres reality to the market. We got good indications from the rally. Posted back in the black, a couple months of potentially ugly negotiations for the spending cuts, the debt ceiling, and i think it was out on who said laws are like sausages, Better Seeing them being made. Adam let me ask you this. You know, ihs put out a note, i think, a week ago, they are not optimistic about where we are going, and bill gross said dont expect gains stocks or bonds more than 5 . Thats what im in print with. Three scenarios with the uncertainty, 5 10 , could be the new all time highs, plus or minus 5 with a mid year correction, and bad case, the deal means not a lot, and we ignite into a bear market. Adam igniting a new bear market, how quickly would it happen . Before we deal with the debt ceiling issue . How much of a correction . Bear market, 20 30 , doesnt have to happen this year, could have a flat year this year, see that typical Midterm Election bottom in 2014, not specific on when that happens. I say probably not before the end of the First Quarter if i have this. Adam anything historically to gauge or everything thrown out since 2007 . No, not everythings thrown a. The financial crisis trumped cycles, but they are been firing on all pistons sticking closely to historical precedence since 2009. The santa claus reality, the seven day period ends tomorrow, the first indication thats ulish, up a point, 5 on the s p since 1950. When it fails, bears come to broaden the wall, and weve seen that the past four times, 1994, 2005, and bears in 2000 and 2008. Adam a big if, but if Congress Gets together, avert a fight over the debt ceiling and spending cuts, what would it take to take the rally and push it further, maybe break out some of the Levels Holding us back . Really good economic numbers, real continuing decline of job markets, a big pickup in the housing market, increased, you know, growth over in china age the rest of the world, not this adam were getting it, but answering my own question, contraction in europe, and chinas the Biggest Party there. Doesnt look to happen. In addition to the four year cycle, post election, the worst of the four years, indication were in the bear market, that takes a lot to drive us to significantly alltime highs. Adam bear klausing are out, thank you. Thank you. Cheryl the next guest says we should have gone over the cliff to force congress to cut spending. President of pure center for urban renewal. What happened, though, to the markets, to the economy over the cliff . That would have been a big mess today. You still say we shouldnt have done it, why . It would have been a mess today, but not in six months. What we should be concerned about right now is the deficit, the debt, and entitlement reform. What weve seen happen is postponement of the enevidentble, a discussion we need today. If americans felt the pinch of what the government of what they insists they want costs, all americans, not just a few, we could get serious about the questions we need answers to. Cheryl star, what we have done continue continuously to fund the thirst for debt is with the chinese. You say the gravy train will end . Not just that, but look at entitlements, Social Security, medicare, medicaid in itself. Were collapsing internally, not just about borrowing money, but clamses internally because we spend too much. We have to take seriously the scope and the size of government, not just the size, but the scope of government, and people dont know what that means when they pass their bills on the wealth yi wealthy in the country. Cheryl you were on welfare, argued with oprah about welfare, and good for you. Overall, the economys not working, and many say medicare not medicare, but the welfare system has to be addressed. The most unpopular political things to say right now. Thats the problem. We need to say it. This is the problem. What were looking at, the democrats, thats turning Social Security and medicare into welfare programs. Any time you hear about means tests, look into every and inner city in the country and see where we go as a country. We dont have to go abroad or europe. We can look at what happens when democrats control blue cities and blue states so in order to avert that, we should have gone over the fiscal cliff. Cheryl sitting at 16. 4 trillion, the debt ceiling debate hits washington, hitting all of us, your Television Screens everywhere, star. Whats the first thing to cut if you were in congress right now . Id probably would have looked at absolutely every budget and 20 off the top. Families do it all the time. My concern was not whether the markets would rally. The biggest concern is that when you attack those who give money away, it hurts charities, and when i im looking out for the poor. You know, they want to say this discussions about the wealthy and the poor. Face it, its the wealthy who help the poor. When charities tighten belts, it puts pressure on government. I think that a 20 across the board in every single agency, department, and, come on, you talked about the waste. Theres things we spend money on that the American People dont know were spending money on. Just start there. Cheryl all right. Unemployment before i let you go unemployment extended for another year. Would you have discontinued the long term Unemployment Benefits . Let it all fall and let everybody who then was affected come to washington and talk themselves about how they were affected as opposed to having back deals cut to where hollywood lobbyists and others were able to get their way and the rest of us will suffer as a result because money moves. Money is going to go make more of it. Youre not going to tell people were going after 40 of your revenues and expect them to stay here. We cant tell businesses well cap you on production and expect them to stay in this country. Its just you know, yes, one of the Biggest Challenges is those that are on unemployment would have had hard decisions. Those looking at the taxes going up anyway because of payroll taxes just going up too will have hard decisions. Everybody should have had a hard decision today. Cheryl star parker, couldnt have said it belter at all. Thank you very much. Great to have you on the show. Youre welcome. Adam money moves, but not washington. All day long on Fox Business Network, peter barnes breaking down the deal by income. At the top of the hour, you heard from him on what the deal means for people who make between 75 ,000 and 100,000 a year. The next report is at 1 p. M. Eastern, and hes going to look at what it means for people who make between 100,000 and 200,000. If you missed the earlier report, see it here on fox business and foxbusiness. Com. A not so happy new year for apples flag ship paris. A Million Dollar heist. Cheryl the timing of it better. Why car sales are about to kick into high gear. Yep, getting numbers out today, but, first, take a look as we go to break at the tenyear treasury. [ male announcer ] where do you turn for legal matters . 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. Adam good news for the car industry. Sales break more than 12 million in the coming year. Joining me now, probably more than that, the outlook, mike ward. Im going it get the name wrong, mike. Stern, aj, and leech; right . Perfect. Adam i got it right. What do you expect with numbers and why good for car stocks . Close to 16 Million Units a year. We are. First of all, thank you for having me, and happy new year. The auto industry, i followed it now for 30 30 years, from a fundmental outlook, u. S. Auto industry in the best shape ive seen in that 30year period. Theres a rate somewhere in the 15 million to 15. 5 million level, a lot of moe momentum. Adam average age of a car is 11 years, not just the demographic issues, but the age of the car. People need cars. Will that translate . Younger people in the 20s no longer want their own set of wheels. They dont know 20yearolds. I have two of them. The one thing you look at is the vehicle fleet right now is 11 years of age, and its older than its ever been. 37 of the vehicles are over the age of 12. The vehicle fleet is aging. Americans will not stop driving, and theres 2 million new drivers coming into the market each year. When you look at just the normal underlying demographic trends, they are positive. If the economic variables were better, wed see a year like 16 Million Units in the u. S. In 2013, not 15 Million Units. Adam good things for General Motors, and toyota will reclaim the spot as number one auto maker worldwide. Why will gm have a good year . General motors, you know, primarily, think back to the restructuring, theres two components, cost and revenue components. They did a lot to address the cost side of the restructuring, and now the revenue side is starting to kick in. The new trucks are a big plus. I think they will be highlighted at the detroit awe toe show. In addition, gm has now a broader spectrum of more profitable small vehicles to help them in a procht standpoint. Adam a friend thinks the spark is the greatest thing on four wheels. Ford was the first, had trouble as late with the escape fires as well as the new fusion. Will they get over that in the new year . That just avoid the headlines. Any time theres a product, most vehicles go through some sort of an issue, and its a small percentage. Ford in grate shape in the small vehicle side of the business. Theres a lot of new product, and across the global small car platforms with the fusion, foe cause, and escape, strong product throughout the lineup, and ford is profitable in all regions with small vehicles, north america, europe, south america, asia, they are on a global scale with anybody else in the Global Vehicle market. The japanese, based manufacturers, koreans, or europeans. Ford, from a product standpoint, in very good shape. Adam mike ward, thank you very much. Thanks for having me. Cheryl a quarter till, and every 15 minutes, stocks with nicole, and this rally, nicole, i mean, i hope that it makes it through the afternoon. Well, were holding on to a 200point gain. So far, so good if youre a bull in the market. Hoping for the ira or 401 k , a lot of up volume, banks, drugs, retailer, or oil, whatever, every sector with an up arrow. The markets incredibly positive. For example, 370 million shares changing hands so far. 326 of those are with up volume right now. We see the trend remaining to the upside here, and as we noted, all major averages with up arrows. Look at two hotel names in particular, both upgraded today. You see up arrows, saying that it is a buy, and marriot a four and quarter percent and same with starwood. Its hot as well. Back to you. Cheryl i like that ticker, that and hog, thats the other favorite. A not happy new year for apple. The flag ship paris store. The french press reports four individuals stole over a Million Dollars in goods from the store locatedded behind the oprah house new ears eve occurring three hours after the store closed for the day when police were deployed for the celebrations. Apple says its fully evaluating the loss. How smart were they . Adam i dont know. Apple tracks. I think you have to turn on the device if you have the hardware. Im wondering if apple can track it. Track whether you turn it on or not. Cheryl the fact that all the police were hanging out, you know, where was the theft near times square . There were not doing. What were the police doing . Adam enjoying champaigne because its france. Cheryl drink and work at france is that what you say . Adam no, work, drink, take an hour for lunch, and youre done. Cheryl i grew up in the wrong country. Adam fiscal cliff averted, but dont look now, its preparing for the next fight. The ugly battle over the debt ceiling. Cheryl oh, boy. San jose police in a standoff with a naked man brandishing a Samurai Sword. Only in the west coast minute will you have this story. Adam first a look at todays winners on the nasdaq. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. Adam a few minutes on the Fox Business Network. Peter barnes breaking down last nights fiscal cliff deal by income. Were hearing from a lot of you wondering whats the deal meaning for you . Peters next, the report coming up at the top of the hour. The next ones going to look at people who earn between 100 thorks and 200,000. 23 you missed previous reports, go to foxbusiness. Com. Its all this for you. Cheryl it is time for your west coast minute. High seas, strong winds from alaska preventing crews from boarding a ship to see damage after the vessel ran aground monday. No clear how much, if any of the rig, and oil might have spilled. The accident and struggled experience in saving the rig underscore how difficult and dangerous drilling in arctic waters will be. Amazing pictures. San fransisco has the highest minimum wage in the nation at 10. 55 per hour. Nationwide, its 7. 25. Ten states waged the way for the new year including arizona, colorado, oregon, and washington. Speaking of the bay area, San Jose Police in a three hhour standoff yesterday with a naked man brandishing a Samurai Sword responding to a 911 call, they pulled the man over, and a chase on foot ensued. According to the mercury news, the suspect shouted youre going to have to kill me over and over. Cocoa bennet was eventually arrested. That is your west coast minute. Adam you used to live there. Cheryl oh, yeah. Adam will they have the best Customer Service at places paying minimum wage . Cheryl always wooderful. Usually it is. The food, and my new york friends are angry if i say San Fransisco has better restaurants. Theres arguments about it. Adam this is new york city. Cheryl ill give you a list next time you are there. Just wait. Adam ill ask you. Cheryl im not paying for it. Adam just when you breathed a sigh of relief after Congress Passed the bill to avert the fiscal cliff, washington is preparing to take your breath away with the next battle. Cheryl extending the debt ceiling. Rich edson has the latest. Rich, they dont take a breath, but keep on trucking, huh . Its already started, cheryl. You know, theres 200 billion worth of deficit spending left before the country exceeds the debt ceiling, and treasury says it could be two months, waiting for an update from them, but after the fiscal cliff bill passed, president obama says congress, and then hementses an increase in the debt ceiling, no strings attached. While i will negotiate over many things, i will not have another debate with this congress over whether or not they should pay the bills that theyve already wracked up through the laws they passed. Let me repeat, we cant not pay bills that weve already incurred. If congress refuses to give the United States government the ability to pay these bills on time, the consequences for the entire Global Economy would be catastrophic. Adam president doesnt want another debate, having another debate, this from the House Speaker boehner after the bill passed, and now the focus is spending. That he reelected a republican majority in the house, using it in 2013 to hold the president accountable for the balanced approach promised, meaning significant spending cuts and reforms to the entitlement programs driving our country deeper and deeper into debt. Just earlier today, the Speakers Office confirmed any amount of cuts, any amount of increase to the debt ceiling has to be accompanied by cuts that exceed the amount the debt ceiling has been raised. Back to you. Adam rich, americans are upset with congress. We get that. The president seems, with what we just heard, its like a parent talking to a child. Could that backfire on him . Is he pouring salt into the wound saying i am not having another debate with the congress. Thats the purpose of congress. Takes two to tango, doesnt it . It does. The debt ceiling is something that congress passes, and hes asking congress to seed that authority. The point of view from democrats and the president is Congress Appropriates the spending, the president signs it into law, and then because of that spending, you have to raise the debt ceiling as a second maneuver, but you approved the spending, why not raise the debt ceiling . Last time democrats believed they won the pr debate on the debt ceiling, and going into this, i imagine they believe the same again. Adam rich edson in washington, thank you very much. Cheryl a lot to cover coming up for us. If you just got a flat screen hdtv for christmas, it could be outdated soon. The tv industry yeah, your tv gearing up to promote what they call ultrahigh definition televisions promising four times resolution of existing television. Heres the catch, though, the price, sonys 84 inch ultra sets priced at 25,000. Who needs a television adam has electrolytes. Got to have it. Cheryl makes you smarter, i dont know. Wasnt pretty, but congress got a deal to save us from the cliff. Stocks actually looking great on the news. Melissa and lori talking. Adam and peter barnes looking at incomes, people making 100,000 to 200,000 so dont go anywhere. At a dry cleaner, we replaced people with a machine. What . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. Cheryl if you thought the fiscal cliff debate was 2001, prepare for the debt ceiling debate, and the sequestering debate coming to a Television Screen now, today, to you. Adam yeah, lori and meless is a with the latest on what to