Watch that. We seen that since september but the trend has been lower. We have 104 points, down 1 2 . Down 1 4 . Below is 15,082. Lets get to apple because that is a different era green on the screen. 6178. And did well to three orders and that was the beginning, they were buying a ipad. Lori the ink barely dry on the eligibility for bankruptcy, and filing an appeal to jeff flock outside the courthouse with the latest. This is just huge. Lets look at the judge who did it. Steven roads, and a bankruptcy attorney, this ruling could have huge implications down the road all over the country saying he sensually if you have a pension and a Municipal Worker in your city declares bankruptcy it is not necessarily protect. Kevin is the emergency manager who got everything he wanted in this judges ruling but very somber when he came out to talk to reporters. We were very pleased, we remain very concerned about the need to improve the level of services for citizens and also prepare for the city to exit this receivership in a fashion that restores democracy. To the city. That is what a lot of people are concerned about, the democracy being restored. Look at the pictures on the streets of the city, as soon as the ruling came trickling out people upset about it, specifically pensioners, retirees, union members, their attorney who represents them talked just after the ruling was shellshocked. This is a scary day because what the judge has done is set a state constitution specifically and expressly protects vested pension benefits can be taken away in bankruptcy and that is very scary. Sharon levine asks me as you point out, it is a huge ruling and this could have huge implications around the country. We will watch it throughout the day. Always appeals. Cheryl lets follow upon those implications, thank you very much. Adam we will bring in a panel of experts who will break down a ruling and what it means nationwide. Amy laskis managing director unfix ratings on municipalities across the country and their ability to borrow funds in the future and david howell is here with what impact this will have on investors. Let me start with you. Is this going to make it more difficult for municipalities . Talk about those that are in distress, is it going to drive up the cost of borrowing . For municipalities in distress is difficult to borrow money. If this makes it more difficult it is hard to say. It is already distressed situation they have a problem. Adam what do you think . You are potentially buying the debt of a municipality the judge is allowing this to go forward in a perverse way this is a good sign because the hair cut a bond holder might take wont be as great if the retirees have to take a cut. I think this is an isolated situation where the pensioners really had very good argument under state constitutional law that their pensions wouldnt otherwise be cut. They wont repeals that decision. This is an isolated situation where people thought pensions could have been sacrosanct. Adam this is what will go to the Supreme Court. When you look at whether a municipality will pay back the money it borrows does the constitutional protection only seven states in the United States have a constitutional guarantee of protecting the pension, michigan is one of them and that is on the chopping block. Do you look at that when creating the rating . More what we look at is the magnitude of those obligations and how they affect the debt overall, the governments ability to pay the debt including pensions. Adam because federal law from its state law could decision by the u. S. Supreme court to allow via cutting of pension guarantees despite the michigan constitution upset the ratings . Would you have to go back and read all kinds of bonds that have been sold . If that is the ruling that pensions can be cut in some ways that is positive for bondholders because it at the level of flexibility to the governments that would not be there if the Supreme Court says no you cannot absolutely under any circumstances change pensions. Adam how do you look at this . We heard the lawyer representing one of the unions say it is being appealed and it is expected to line up in the Supreme Court. What do you as an investor look at it regards to how this could play out . There are a number of moving parts and the litigation between here and resolution of the situation. The best thing the constituents could do is sit down with real sincerity and negotiate because there are a lot of unknown issues. One issue that hasnt been brought up is the corollary to the pension issue, whether the geo bonds are as senior as they think or subject that compromises as well. Adam we talk about the detroit debt, the pension, unfunded pension portion is 3. 5 billion but that is in dispute. Does is keep an investor away from municipalbond market until all of these municipalities, chicago, ill. This is played out should i stay away from this . I am a distressed fundamental investor. Theres not enough upside in the bonds in detroit or any municipality to go ahead and get invested in any particular way. There will be further distress in the municipal market. Our fund is up 50 which is an important number how we require from reinvestment. With respect to getting involved as a retailer on the retail level there are so many issues that need to be worked out. I would stay away from distressed municipal situations. Adam there is the need for municipalities, healthy, distressed, to have access to cash, you will be busy at fitch. Ratings will continue. You said this could have a potentially good outcome for borrower is Going Forward and bond holders. Is there something we are not looking at that upset the apple cart . We wouldnt equate detroit with chicago or most other municipalities. It is that broad brush to save they are all in similar circumstances. Detroit is an out liar, an isolated case. Municipalities in general are doing okay. They have been hurt by the recession but they are doing fine. What happens with detroit will be specific to the detroit. It may have other implications Going Forward but generally speaking before it is not symptomatic of the general state of municipal credit. Adam i was under the impression municipalities nationwide, a lot of municipalities are facing debt obligations that make it problematic to borrow and i will use san jose as an example. 29 of the general fund goes to pension obligations. That is money the doesnt go to build schools for new infrastructure. That is a problem and would seem a problem if they want to borrow in the future if youre going to lend money. That is our high number and includes i dont know where the 20 comes from theegeneral fund has some employes or other funds that contribute so slightly inflated number but i get your point it is a significant obligation and one they are going to be challenged to face but on the other hand san jose is a major city with a diverse economy and a lot of resources to face the challenge with. Adam thank you very much. A reference on that is the morningstar report. That looked at municipal debt of cities throughout the country. Thank you for coming to talk about this. Wont end anytime soon. Lori detroit not alone working out the debt problems. Lawmakers in illinois gearing up for a vote to close the states 100 billion pension shortfall. The proposed plan includes raising the retirement age for workers younger than 45 and cutting retirement benefits. The plan is supportive of governor pat quinn and unions say they will sue if the legislation is passed. Automakers were thankful for thanksgiving weekend, the big three posting monthly gains in november compared to this time last year. Fords november sales jumped 7 . Gm notched 14 gain and big winner chrysler coming with a 16 sales increase. A slow month for auto sales manufacturers offer deals to capitalize on the Holiday Shopping season. Adam is now the time to get bullish . The biggest bears in retreat but wall following suit today. Lori he has been dancing with the stars. Just am nominated choreographer mark ballast on his push to get healthy after 11 years as a smoker. Adam recordbreaking night at the Seattle Seahawks century link stadium but it wasnt just the stadium rocking. We will explain. Every day were working to be an Even Better Company and to keep our commitments. And weve made a big commitment to america. Bp supports nearly 250,000 jobs here. Through all of our energy operations, we invest more in the u. S. Than any other place in the world. In fact, weve invested over 55 billion here in the last five years making bp americas Largest Energy investor. Our commitment has never been stronger. Mm. Mmhmm. [ enne revs ] [ male announcer ] oh what fun it is to ride. Get the mercedesbenz your wish list at the winter event going on now but hurry, the offers end december 31st. [ sant] ho, ho, ho [ male announcer ] lease the 2014 glk350 f 419 a month at your local mercedesbenz dealer. [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app from td ameritrade. Adam what goes up and down. A down day for markets, it has been quite the record run and that as the markets biggest bears in retreat for the first time, we are talking bigname investors. Liz macdonald, who is going liz jeremy grant and hugh henry, david rosenberg, we know how he is seeing the upward tilted market putting them in their back heels, and really somebody to watch, look at what he says, my personal guess is the market will work its way higher by 20 to 30 . But then it will take a severe economic shock with a relentless pushing of the market but what he is seeing is Greta Van Susteren two years there could be a market bust as you saw in 1999. Adam we had a discussion about schiller yesterday. It is not a bobble but close. Liz he is saying it is hard to outweigh the positives in the market. People are listening to Robert Schiller and coming behind Robert Schiller saying Robert Schiller is actually off, he is wrong when he is talking about a correction around the door or down the road, 2 to 3 years, roading correction so what they are saying is the operating profit margin, here is what is key, record highs of 1. 6 for the s and p 500. If you referred to the average you will see a 20 correction down. Profit margin will be back to where they were historically. To henry is a and i can no longer say i am bearish, willing to underperform when market crash but that could be in three years and he went through to and overweight into equities in his fund as of september, 64 failure of equities. Adam dont invite them to a party. Lori as we do every 15, lets get back to the floor of the Stock Exchange to hear what the buzz is all about today with the dow down 120 points, pharmaceutical companys new joint venture making news. A lot going on on wall street, looking at a calm but deal today and if you own these pharmaceutiials today you are doing some happy dance because the stock is up 110 , it is worth noting it is under 1 billion market cap but it is going to be investing in Clinical Trials as well and collaborating with them on several programs to fight cancer so a big deal here, year to date 100 but today as i noted up 110 as we speak. Back to you. Adam the 12 men really showed up without any delay at the seahawks saints game. It was so loud that century link field actually went seismic. Late in the First Quarter defensive linemen Michael Bennett returned a fumble 22 yards, the fans cheered so loud that theyre jumping up and down registered as out minor earthquake. If an earthquake wasnt enough, seahawks fans get in the guinness book of World Records for a lot of clout war with the reading of 127 decibels. Lori i wonder what that experience is like, the entire stadium shakes because of your performance. Adam on the subway, people say get this thing moving. Lori something just as loud. The top picks for names this year, we will tell you whos number one for girls and boys. Adam when you dont want anyone to know your name, the apps that in procured text, photos and videos. Walkers cofounder will tell us he doesnt want you to know what she looks like. Your fox news minute. The engineers of doubt before the fatal suburban new york train accident. Theyre trying to determine whether faulty brakes or human error caused the derailment. Four were killed and 60 injured when a train came off the tracks at a highspeed. Joe biden met with the japanese prime minister, continuing the to. Before the meeting, the u. S. Has an interest in lowering tensions in the region. The u. S. And japan refused to recognize chinas new zone over disputed islands in the east china sea. Joe biden is due to meet with chinas president thursday. A massive power outage plunged venezuelas capital and other major cities into darkness. The blackout began just after 8 00 p. M. When venezuelas president was addressing the nation on tv. He says the cause was sabotaged. Those are your News Headlines on the Fox Business Network. Lori thankkyou very much. Lets make some money with charles. A stock you have liked for some time. Charles alllover the place, we are in it and i still like it. You might remember this, under my plan of a cap and trade system electricity rates would skyrocket. That was barack obama in january of 2008. We have a chart of electricity prices right now if we can. They are right now believe it or not at all time highs. People and not talking about it but they will soon. Interestingly at the end of the day the epa a cash am out with an announcement that they will be flexible on these new rules and will give states greater with respect to this stuff. Going higher and higher and other things going on in the economy, maybe they will pull back a little bit and that will be good for these Coal Companies particularly natural resources, today it is a 75 even before this news i thought they were turning the corner, they weather the storm. Next year fiscal year the consensus is the will make 2. 03, two month ago the consensus was 1. 25, wall street is coming around to the idea that the bottom line which we know a lot of that was cost savings and things like that but maybe they weathered the storm. This stock is off to the races. Lori what about the fundamentals, the seasonality, the supply, the potential for further exploration of other Energy Sources . Charles that happens in a natural progression. China is ready to go to war with the world of the 200 billion of oil in the ocean. We will be on fossil fuels for a long time. Natural gas gets to a point they cant keep pumping it out because they will lose monny with the guys pumping it out so you got a certain buffer and global demand, it is sort of a contrarian play but this will be a grand slam. It has been volatile but north of 20 will take off. Adam more news on a topic we just talked to charles about, amazons rose. The Senate Committee on commerce, science and transportation decided to hold a hearinggnext year to discuss regulations and impact of private Companies Using drones. Senator rockefeller, chairman of the Committee Says the hearing is not a result of amazons announcement was planned earlier in the year. Rockefeller hopes the hearing will explore the potential economic benefit of the drones as well as potential dangers they could pose. This message will selfdestruct, not a problem, the promise of secure messaging promise, cofounder and ceo next. Connell obamacare offensive, the health of pushing ahead of the december 23rd deadline. So i can reach ally bank 24 7, but there are no branches . 24 7. Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Tdd 18888521342134 tjust waiting to be found. Es tdd 18888522134 at schwab, were here to help tdd 18888522134 bring what inspires you tdd 18888522134 out there. In here. Tdd 18888522134 out there, tdd 188822134 there are stocks on e move. Tdd 18888522134 in here, streetsmart edge has tdd 18888522134 chart pattern recognition tdd 18888522134 whicshows you which ones are bullish or bearish. Tdd 18888522134 now, earn 300 commissionfree online trades. Tdd 18888522134 call 18888522134 tdd 18888522134 or go to schwab. Cotrading to learn how. 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It is time for the ceo to be out. After 16 years, almost perceiving mr. Jeffries, Mike Jeffries as a roadblock to transactions in the future. Also you have abercrombie saying, look, were open to options, open to talking to shareholders, even a possible sale. Saying theyre open to many different ideas and you are seeing the stock reflecting that. Back to you. Lori thank you, nicole. Adam president obama is expected to take to the podium in the next hour to begin a new pr offensive for the A