Meeting today with congressional leaders that ended with no deal. Ahead of that, investors lost hope lawmakers can come together in the time remaining. In the last few minutes of trading, stocks sold off. The dow tumbled 158 points, the nasdaq lost 25, and the s p fell over 15 points. Heres darren gersh with more on the critical work that has to get done in washington this weekend. Reporter the president declared himself modestly Optimistic Congress could still reach an agreement to head off huge tax hikes on january first but he also warned lawmakers to get their work done. The American People are not going to have patience with a selfinflicted wound on the economy. Reporter Senate Republican leader Mitch Mcconnell called the white house meeting a good one and he told his fellow republicans he hoped to have a fiscal cliff recommendation soon. We will be working hard to see if we can get there in next 24 hours and so i am hopeful and optimistic. Reporter but the Sticking Point remains
President warned congress that he wont negotiate on the debt limit. The one thing that i think hopefully in the new year we can focus on, is putting a package like this together with a little bit less drama, a little less, and not scare the heck out of folks quite as much. Reporter but, with the sequester and other big spending issues like medicare on the table, striking a deal this year wont be easy. This is the best opportunity that were going to have to save our nation and do those things that we have to put in play. Reporter but theres not much hope for a sweeping deal this year. My suspicion is that we will you know, kick the can down the road on whatever we do in february or march, and it may be for a year, it may be for two years, but well be coming back to deal with issues like this in the nearterm. Reporter the investment market isnt putting much pressure on lawmakers to forge a longterm solution for the nations fiscal troubles, and some fear that could mean a real fix is stil
He wont negotiate on the debt limit. The one thing that i think hopefully in the new year we can focus on, is putting a package like this together with a little bit less drama, a little less, and not scare the heck out of folks quite as much. Reporter but, with the sequester and other big spending issues like medicare on the table, striking a deal this year wont be easy. This is the best opportunity that were going to have to save our nation and do those things that we have to put in play. Reporter but theres not much hope for a sweeping deal this year. My suspicion is that we will you know, kick the can down the road on whatever we do in february or march, and it may be for a year, it may be for two years, but well be coming back to deal with issues like this in the nearterm. Reporter the investment market isnt putting much pressure on lawmakers to forge a longterm solution for the nations fiscal troubles, and some fear that could mean a real fix is still very far away. The good news
Rally to wall street. Awaiting president obamas signature tonight is an agreement not to raise taxes on most americans. Even though hard decisions on Government Spending cuts were put off, the deal over tax rates ushered in a 308 point rally for the Dow Jones Industrial average. But as sylvia hall reports, the new session of Congress Beginning tomorrow faces some Big Decisions very soon. Reporter as americans return to work from the holidays, they might breathe a little easier knowing the fiscal cliff isnt happening. But the deal on the president s te. In fact, it sets the stage for a bitter First Quarter fight. The bill does add some certainty to this years tax rates, by permanently extending bushera tax cuts for people making less than 400,000 per year and couples making less than 450,000. It also staves off the sequester that package of sharp federal spending cuts for two months. But lets look at what the deal doesnt do. It doesnt take the sequester off the table completely, and it
On wall street today, investors bought up stocks on high hopes of deal after president obama said this afternoon a deal is in sight, and positive comments from Republican Leaders in the senate. Heres how the major averages closed on this last trading day of 2012. The dow surged 166 points, the nasdaq jumped about 60, and the s p rose almost 24 points. While wall street has already closed the books on 2012, washington still has a few hours to go before its new years day fiscal cliff deadline. Darren gersh has the latest. Reporter after a weekend of latenight negotiations with the Vice President , Senate Republican leader Mitch Mcconnell said an agreement on the fiscal cliff was very, very close. Well continue to work on finding smarter ways to cut spending, but lets not let that hold up protecting americans from the tax hike that will take place in about 10 hours. Reporter the deal would raise the top tax rate for individuals making more than 400,000 and couples with more than 450,000 i