tv Closing Bell With Maria Bartiromo CNBC December 27, 2012 4:00pm-5:00pm EST
should have dealt with literally months ago. make no mistake. the only reason democrats have been trying to deflect attention on to me and my colleagues over the past few weeks is that they don't have a plan of their own that could get bipartisan support. the so-called senate bill that the majority leader keeps referring to passed with only democratic votes and despite the deep calls for the house to pass it, he knows as well as i do that he himself is the reason it can't happen. the paperwork never left the senate. there's nothing for the house to vote on the as i pointed out before we took the vote back on july the 25th the democratic bill is, quote, a revenue measure that didn't originate in the house so it's got no chance whatsoever of becoming law, end quote. that's what i said back on july 25th.
the only reason we ever allowed that vote on that proposal, as i said at that time, was that we knew it didn't pass constitutional muster and that democrats were really serious they would proceed to a revenue bill that originated in the house, as the constitution requires, and as i called on them to do again last week. to repeat, the so-called senate bill is nothing more than a glorified sense of the senate resolution so let's put that convenient talking point aside from here on out. last night i told the president we'd be happy to look at whatever he proposes, but the truth is we're coming up against a hard deadline here, and as i said this is a conversation we should have had months ago. and republicans aren't about to write a blank check for anything senate democrats put forward just because we find ourselves
at the edge of the cliff. that wouldn't be fair to the american people. that having been said, we'll see what the president has to propose. members on both sides of the aisle will review it, and then we'll decide how best to proceed. hopefully there's time for an agreement of some kind that saves the taxpayers from a wholly, wholly preventable economic crisis. mr. president, i yield the floor. >> the majority leader. >> senate republican leader mitch mcconnell adding his voice to a day that has seen a number of people talking, including that man, harry reid, the majority leader of the senate. we've been getting mixed signals. the biggest signal we got was regarding the house which is coming back to -- reconvening sunday night, and that brought the market back in a big way, but now we're hearing from mitch
mcconnell and let's bring in eamon javers there on capitol hill, i mean, the rumor had been, a lot of traders talking here, eamon, that maybe there's a dell brewing between the president and the senate. that doesn't sound like anything is going on right now according to rich mcconnell. >> what we got was a facebook post from scott brown who said he was come back to washington and jumping on an airplane to review some new proposal from the president that they expected to get. the whole afternoon has been spent by reporters trying -- trying to figure out what was going on. now harry vaed responding to mcconnell so let's right to it. >> he's upset because, quote, the phone never rang. he complains i've not delivered solutions to the fiscal cliff. he's in error. we all know that in july of this year we passed in the senate the
relief that would give -- that it would give to middle class americans. that -- that passed the senate. now, we know the republicans have buried themselves in procedural roadblocks in everything we're trying to do out here and now they are saying, well, we can't do the 250 because it wasn't blue slipped, because it will be blue slipped. mr. president, how does the american people retook the that? there was a bill introduced by the ranking member of the ways and means committee in the house, sandy levin, that called for this legislation. the speaker was going to bring it up to kill it, but he couldn't kill it and then we moved to plan "b," the debacle of all debacles. it's the mother of all debacles. that was brought up in an effort to send us something. he couldn't even pass it among the republicans it was so absurd, he meaning the speaker, so it's very clear now, mr.
president, that the speakers's number one goal is to get elected speaker on january 3rd. the house is not even here. he's told me it will give him two days to get back here, not two days, 48 hours. they don't even have enough of the leadership here to meet to talk about it. they have done it with conference calls. people are spread all over the country because the speaker is basically waiting for january aboutrd. now, the president campaigned on raising taxes on people making more than $250,000 a year. the bush era tax cuts will expire at the end of this year. obama was elected with a surplus of about 3 million votes. he won the election. he campaigned on this issue. again, the speaker can't take
yes for an answer. the president has presented to him something that would prevent us from going over the cliff. it was in response to something the speaker gave to the president himself, but, again, i guess with the dysfunctional republican caucus in the house even the speaker can't tell what he's going to do because he backed off even his own proposal. mr. president, the house, we hear this so often, is controlled by the reap warnings and we acknowledge that. i would be most happy to move forward on something that senator mcconnell said they wouldn't filibuster over here that he would support and that boehner would support, if it were reasonable, but right now we haven't heard anything. i don't know, and it's none of my business, i guess, although i
am very serious, if the speaker and the majority leader, the republican leader over here are even talking. i mean, what's going on here? mr. president, you can't legislate with yourself. we have nobody to work with, to compromise. that's what legislation is all about, is the ability to compromise. the republicans in the house have left town. the negotiations between the president and the speaker have fallen apart as they have for the last three and a half years. we've tried mightily to get something done. just go over what the little drill here, mr. president, to remind everyone how unreasonable the republicans have been. senator conrad and judd gregg came up with a proposal to pattern what they wanted to do after the base closing commission. commission would be appointed and they would appoint back to
us, no flust years, no amendment, yes or no like we did with the base closings and we did a great job, closed bases over two different cycles, saving the country hundreds of billions of dollars so we brought that up here. i brought it up. we had plenty of votes to do it, except republican co-sponsored walk away and wouldn't vote it. that's wheres simpson came in. people talk with what don't we do bowles/simpson and then we went through the months and months of talks between the president and boehner and boehner could not deliver because they refused because of grover norquist not to allow any tax revenues whatsoever. meetings with vice president biden and cantor. cantor walked out of those meetings. he's the majority leader in the house. the gang of six, the gang of eight. we had this super committee, and they were doing good things, good things, dealing with
entitlements and revenues, and a week before they would report by virtue of statute i get a letter signed by every republican too, bad about the super committee, we're not going to do anything with revenues, so this is not a capsule of a couple of days. this has been going on for years. they cannot cross over the threshold that has been built by grover for vist. people who are rich who make a lot of money, her not opposing raising taxes on them. the only people in america who don't think taxes should be raised on the rich are the republicans who work in this building. any time bhth speaker and the republican leader come to the president and say we've got a deal for you. the president's door is always own, and mine is, too. >> the senate is back in session
today and a lot of looking backwards, not necessarily looking forwards. certainly not so concise recap of harry reid of where we've been on the negotiations and the lack thereof. spinning going on in washington and not the kind done on an exercise bicycle. eamon. >> not the senate's job to be concise, let alone the senate majority leader. never been known for that. that's not going to change, but what harry reid is saying it's their fault. we already heard from mitch mcconnell, the republican leader, it's their fault, it's the democrats. finger-pointing in washing,ton, but what i heard from speaker bain e. he said we's expecting a new proposal by the president. swu the communication is off on the capitol hill switchboard but mcconnell sounds an awful like a guy that the president will make
him a new proposal based on what he and the president discuss the laughed night. the real condition here is will president obama make a new deal for any deal that could be gotten done. >> i just tweeted that out, you nailed, it eamon. lots of finger-pointing an complaining and sour grapes going on and very little in the way of compromise talk. thanks very much. continue to monitor the situation and get back to you, if we need to. >> in the meantime, what does all this wringling. >> and harry reid going at it with senator mcmcconnell. we'll talk to outgoing kay bailey hutchison and get her take. what is she hearing? will we get a deal or not.
>> also ahead, does the tax code untearily penalize investors over borrowers. someone here says absolutely, and he warned it's going to get worse once we go over the clip. [ male announcer ] you are a business pro. executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national
let's get more reaction to what we've been hearing from the floor of the senate. senators reid and mcconnell talking past each other. sounds like we're not exactly close to a fiscal cliff resolution at this point. >> yeah. what does it all mean for wall street? will it be an ugly day? michael guyette from pension partners and michael farr from farr miller in washington and our very own rick santelli. michael, i'll get to you in a minute. the markets moved up and closed marginally in the red on the news the house will reconvene on sunday night. i get the feeling that all of that back and forth between senators reid and mcconnell, had that come out during market hours, the market would have reacted very differently. so far apart. i didn't hear anything in the way of compromise there. >> even before of the house
meeting, marks were down 1.2%. that's noise but not really a panic. the result of the fiscal cliff here is not risk off. it's risk protation into those areas of the investable landscape. look at emerging markets, lock at europe. they are decoupling. if anything, price is still very bull ir. i would rather listen to price. >> why do you say it's still very bullish? >> they recovered almost completely the loss which means the markets thinks tax puts will still be in play. the market is saying it's okay, you know, we've had an increase in market cap this year in the s&p 500 over $1 trillion. >> right. >> that's more than the cliff. >> let me go to my facebook friend michael carr. you speak washington ese. the house is convening. the president is -- >> doesn't it just make you
sick? >> the were inthing you want to watch is eachon javers. i thought it was a perfect graphic. it's fabulous. you can't make it up. >> what do you do when you don't know what's going to happen, and you really don't. if you can get the debt limit thing right and guess how it's going to turn out or guess that it's actually going to do something, all evidence to the contrary, how would you invest, and when you recognize that none of us probably know and got it wrong the last time the debt ceiling came around. still be conservative and get some great balance sheet, but some names like john ehrlichman. could go savnlt these are names with big balance sheets will last you through to the.
>> rick santelli, we spoke to you earlier on the show, did i get the impression that you're feeling a little more helpful? are you feelingmore so after speaking with the senators. >> i think the party will be with the parties doing the right place to actually do something. whether you believe scott brown or not, i personally think that somebody told him not to say anything, but that's just my opinion. all other facts seem to refute it. yes, i thinking is is going to be lick enough. it's a lot more of what the stock market goes up or dunn for a did i, hour and for to 13. it's going to be a sflipive type of discussion but no fess hick expiration. >> you've to done the spending and get this thick back nag.
all i know is when i wassing in -- the party in power always has a certain view and it's always different when not in power, that in 2006 it was a big discussion about raising the debt ceiling under w. from 8.2 to 9 trillion. to think right now that 16.4 is in the rear view mirror with 22 trillion most likely the next stop, this is heart attack type information. >> it is shameful and unforgivable, rick, i couldn't agree with you more. >> i was going to say, keith springer, do you invest on headlines or look longer term, and how in the world can you look longer term with all the noise going on right now? >> hit it right on the head. right now we're only setting ourselves up for pain for two reasons. one is the market has been incredibly resilient, going up with bad news. if there was any good news, we'd hear about it. wouldn't keep good news a secret. i think people are buying ahead and bight rumor and selling the news if we have a deal and if we
don't have a deal we fall off and the market falls even further. the average investor has to be very careful. always invest for need, not for greemptd don't simply roll the dice in the market. th invest for what they are looking for, income, dividend, be very, very cautious going forward. >> very, very quickly, keith, fall off the cliff and would you be a buyer? >> no, not right away. will continue through the beginning of the year. they can vote retroactively and most likely would but i think it would cause such a panic that the market will fall, not just for the investment but for the slap on the face for politicians because the market has a tendency to do that, sending a message to the politicians when they are asleep. got to wake this up. >> can't decide who won the tie derby. see you later. >> speaking of waking up, alarm
clocks,tic-tock,tic-tock. we'll speak with outcoming cutcheon for a deal. all that and more. >> will going over the cliff help the recovery in its tracks? more on that. >> and hear what this small business owner in new york city, where we are right now, thinks about the cliff crisis. >> i'm annoyed. i'm annoyed with the fiscal cliff. we're looking at not knowing what's going to happen. we fall off this cliff, an everyone gets affected. there's no trickle-down effect. it's more like a slush.
we'll lose income. the question is how much income are we going to lose? if we fall off the cliff, the fear is that we fall off the cliff, not slowly glide down the cliffch the government at this point needs to understand that we should be able to trust you to do the right thing, put politics aside and think about us, the people that's why we have government. fix it. [ male announcer ] at scottrade,
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no deal yet but we're getting lots of mixed messages. >> that's a good way to put it. >> mixed messages around washington today with some animosi animosity, but here's what senate majority leader harry reid had to say just a little while ago. listen. >> i say to the speaker take the escape hatch that we've left you. put the economic fate of the nation ahead of your own fate as speaker of the house. millions of middle class families are nervously watching, waiting and counting down the moment until our taxes go up. >> well, senator kay bailey hutchison is republican from texas, first elected back in 1993 and served in leadership positions and been an outspoken nor to the budget and defense. senator, great to have you with us here. >> we sure are going to miss you, one of the great group of moderates. >> maybe you're relieved to be
leaving at this point. >> thinking of new year's eve here in washington and thinking, you know, this is the time to exit. >> go out while things get a little mess over there. how will you feeling after the variousade lines toit about getting things done. >> i really am optimistic and people are getting entrenched, and we're seeing it on the senate floor and in the end we're not going to let this happen. now, it will take give on those sides and, of course, there's posturing and not any of i believe there's a bipartisan solution that will give each side something they want but not something that they will love. >> assuming we have to have a deal by december 31, and there's
every dean to believe you guys can stop -- an if down the path -- we're not going to get a brand bargain, there eat is not enough time for that? >> 40 years about that. i do think thatworking marc people are not going to have a big tax increase. some of the things that the president has talked about, a $400,000, $500,000 threshold is much more palatable than to say 250. i'd like to see no threshold. i'd like to see no taxes on anybody, but i think we have passed that time and we're not going to win on that issue so
let's set a reasonable amount including all people over the area including high expensivias. i'm hoping there's something enentitlement reform, something the republicans have been looking for from the ing thing cuts that we can see. i hope that we can be doing that but that may be getting too far down the road. we've got to do a patch. >> it's got to be dealt with at some point down the road though. do you feel critical of speaker boehner? do you feel he's eshausted his options, at this point? >> i thought speaker boehner made a very good effort. i think his proposal was very, very good. it did walk away from not taxing anyone, which was our position and is our position, but he gave on that, and kept all the other
things in place which people aren't talking about. it could have kept the marriage tax rent relieve, the tax credit, all those things becoming permanent law and that was in the plan "b" that john boehner was trying to get the members to vote for. i think we need to get democratic votes on the senate side and republican votes on the house side. >> the game plan is to get some sort of comprehensive tax reform next year, hearing that in the is not and house. moderates like yourself, like olimpia snowe and joe lieberman and dig lugar, and on and, is it possible with the new conditioning next year to get some sort of tax reform when
it's been impossible for the last year and a half. >> i hope so. we don't control but one house, and the democrats control one house and the presidency. we can't get everything we want. i am a don't raise taxes on anybody republican. >> but you're willing to compromise on that though, right? >> i certainly would rather have something somewhat lower than anything and try to see if we can get the development come up from 250. to be able to give the amt relief and the marriage penalty, child tax credit, even state tax relief for farmers and ranchers, those are all things that affect everyone in this country and i hope they will do the real
reforms including entitlement reforms. if you don't do entitlement reforms, no conclusion. >> thank you for your thoughts. >> thank you, mandy and bill. thank you very much. >> will going over the so-called his call i? take the housing recovery with us? stays around for his horse iing investors over borrowers. big surprise. stay us for the ugly details. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello?
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very much a tale of two markets. sharp selloff in the markets all to see it wiped away in the following hour of trading finding out that the house reconvenience on sunday meaning. mary thompson is at the big doi. the dow staged and pulled lower today by u.s. senator harry reid and the idea that the markets would send the markets higher in
late trading and even though the gains latt in the kay were trimmed. mitch wok nell tock to the fleb vp strategy. the weaker performers were financial, materials as well as utilities among the sectors offsetting late-day games we saw in discretionary and staple stocks low on initial consumer sentiment and the cliff. home builders today finished something very good. november home sales for strong continue once again. of course, now all eyes to this weekend to see what hang will done about the cliff. back to you. >> if, at all. thank you, mary. housing is clicking on all cylinders right now. home prices up nearly 7 boston this year making it the first yearly gain we've seen in housing six 2006. that's unbelievable. >> it is unbelievable. >> look the november numbers.
14.5% jump in existing home sales. mary mentioned the 15% increase in new home sales. mortgage rates still close to all-time lows right now. >> with all that positive momentum and all the progress in the housing market come to a halt if we go over the cliff? joining us with the thoughts, managing director of marketing and a licensed real estate agent and mortgage broker and also president of u.s. home loans. what do you think. >> good afternoon, mandy and bill. great to be with you on the program. i think the housing recovery, both on the for sale side and rental side has so much legs and momentum that a temporary setback because of the fiscal cliff, going over the cliff on a temporary basis should not derail the recovery. if we get in a prolonged logjam over the political issues coming out of d.c. and we are in the
recessi recession, that's a different ball game. >> do you think though that this is a real recovery led by people essentially having more confidence that their home is going to be a good investment? i mean, the past few years have kind of shaken that belief, right? do you think this is a real recovery led by home buyers or the fed pushing the fed higher as they drop. >> it's sustainable because 2 million jobs being created, household form as i has outstripped new housing supply by a factor of two over the past four years. that's why the market has found its balance again and the low interest rates, of course, are very helpful you but it is a lifestyle issue as well. people are not looking at it as a speculative issue like before. >> what do you think, fred, especially when you consider the drop that we've seen the last few months in consumer confidence, and, you know, mentioning the job growth. it's still very anemic right now. >> yeah. it's the kind of thing, i mean, confidence is the key word and
it's going to be where the jobs are, you're going to sell the houses. i think people have, yes, seen the bottom is already kind so they kind of want to get on the commuter train, not the long distance train like they did a few years ago. you know, it's -- even block to block in different areas. some areas there's multiple bids and some areas things are just saying no. >> and people are renting a lot more than they were buying, right? >> yeah. absolutely. >> isn't that getting expensive getting buying? isn't renting getting expensive? >> depends where you are, obviously, but it is going up. i see the major cities, san francisco, los angeles, philadelphia, new york, rentals are getting much more expensive so you'll see people getting two bedrooms and sharing it with somebody instead of getting a one bedroom by themselves, that's a difference and still have the people living at home but the first-time buyers are
still having problems. still tough to get a mortgage, and it's going to stay that way. >> and we might also lose the deduction. what are clients saying to you guys about the potential loss or cut of the mortgage interest deduction. >> that would be stupid. >> i'm sorry, go ahead. >> hasiam? >> yeah, that seems to be very unlikely given the broad nature of that tax credit for the u.s. population. but i think to your point about the rental market, what's interesting about this recovery is that you have lifestyle choices being made. people wanting to rent, wanting to be near work and urban areas versus what we've seen in the past and that reduces the speculative buying on the foresale side of the equation which i think is actually very favorable for the long-term prospects of this recovery. it's not a speculative kind of a frenzy driven recovery. >> that's a very good point. >> that's for sure. >> to both of you, thank you
very much for joining us today. thanks a lot, uncle sam. someone here says the tax code favors borrowers over investors and not too happy about it either. we'll sift through his sticky situation next. >> and still to come, some of wall street's finest money pros will tell you what you need to know to keep your money safe and growing in these turbulent times. that's all coming up as you watch cnbc, first in business worldwide. [ 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. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.
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whi we go over the proverbial fiscal cliff and when dividend taxes go up it makes an already bad situation worse. >> right now the tax is 15%. by next tuesday, folks, wouts a deal from congress, they are going to more than double to 39.6%. now he wrote this opinion piece in "forbes" highlighting an unfair tax code that rewards debt and penalizes those dividend payments. joining us now here is the author of that, the ceo of otc markets group. you've got a real bone to pick over this. plain your special. thank you amanda and bill. have 16 under daying securities in the otc marketplaces. these companies attract dividend investors. keep them honest and great source of revenue. hour, dividend taxes are not taxed at 15% but are double
taxed. companies have to pay taxes on their profits before distributing them as dividends. dividends are double taxed and will almost be triple taxed unless we do something in washington. all those million of dividend investors should be really angry. bad for them but it's bad for the economy. >> realistically though could we really expect it to go to 39.6, there's got to be some compromise in there somewhere. i wouldn't think the republicans would let it go much higher. >> you look at it. i don't think washington guess what this does. look at the effective rate. right now if i pay $1 as a public or private company and pay $1 a earnings as interest, it's taxed 18% higher effectively. >> right. >> so what does that do?
that creates something called a debt bias. debt bias is bad for our economy. right now we have three things, too many debt in our economy, not enough job creation and need more income for retirees. tacking dividends is going to make all of those situations worse. >> to pare this down, the brass tacks, if you like the effects on this mark. i mean, what's going to happen to those sectors and stocks when and if those -- >> and a lot have already been sold off? >> already sold off and long-term the dynamic nature because short term really shouldn't matter to you as an investors. what you should worry about is showing 20 years of and for the first ten years that chart is going straight down by the number of companies paying dividends and increasing dividends.
that number is going down. we cut the rate. and we close do you know the gap and the number of diffident went up, great article on "forbes" talking about combining the new it had factioncates and california rates. if you live in california, effectively dividends of a california company with a california owner is going to be taxed 74%. that's crazy. >> better to see companies leaving california as their tax domicile? >> companies leaving, people leaving, but more importantly companies have a price of paying dividends? those making the checkses are all in the highest tax rate. you reduce the income in the equity markets. >> again, we're talking worst case scenarios in this point of these effective tax rates that are possible certainly. i'll give you that, but don't we really expect the rates
too-to-go up a lot less than that as congress comes together and compromises on these very consentious issues? >> right now congress, the 20% rate plus the 3.8% rate on -- on the health care reform, that's still widening the debt bias. what happens when you widen the debt bias? companies leverage more. companies that are leveraged companies they invest less and create less jobs. >> yeah, go ahead. >> finally, investors get hooked into debt securities. short term higher income and long term inflation kills you. >> but you know how debt works. i mean, that is a -- has been a growth engine in our economy for corporations and individuals. >> we live on debt. >> we borrow to pay for our homes, corporations borrow to pay for factories. >> debt is not terrible, but let's not tax debt -- let not tax borrowing less and let's have investing, and that's the part.
i don't think the administration that this is a giant gift for private equity. >> okay. >> because they use -- they use tax efficient debt to go leverage companies, pick them off. >> thank you so much for joining us today. >> making the case for the individual investor out there living on those dividends. how ugly will it get? we've got three market pros weighing in on that next. [ male announcer ] it's that time of year again. time for citi price rewind. because your daughter really wants that pink castle thing. and you really don't want to pay more than you have to.
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well, senate leaders harry reid and mitch mcconnell speaking earlier on in this hour and it does not appear there will be any resolution to averdict the looming fiscal cliff, at least based on what they were saying. still, with so much uncertainty in washington, what will the markets look like tomorrow? let's break it all down. so, lots of market expectations on a deal. some good, some bad. alan, why don't you give your expectations on how you think stocks are going to open up tomorrow, based on what we have heard so far today? >> well, i thought it was an amazing come back we saw today. we you have a the bonds up half a percent, so, the safety buying was not sustained. we saw the market come all the way back and apple moved
positive. i'm rather optimistic. we went up 5% in the s&p, going into this. going into this week. and i think that you've got to realize, this is the most analyzed fiscal situation in the history of the world. so, this is not a surprise. i'm still very positive. i'm looking for the s&p to rally, 130 points, which was the distance of that selloff that we saw to get up to 1600 once again and i look for it to go higher. >> jim, the house reconvenes sunday night. the senate squabbling right now. the president's back in town. how are you trading or investing in this market in the meantime? >> well, bill, i thought it was difficult to underestimate the ability for congress to underdeliver. but here we are again. >> yes. >> our best case is, we probably thought it was going to go into the, go past the new year and i think that's what we're going to see. so, we'll probably tech nick little go over the cliff but we won't stay over and it's probably maybe even better off that we get a new congress looking at the prospects of a deal. there is a deal out there as
opposed to the lame duck session. we'll probably have some volatile till but i think those are buying opportunities and we expect a better 2013. >> what kind of buying opportunities? what would you be looking to buy? >> well, certainly the sectors that have done well, i think, continue to be the financials. you look at consumer discretionary in here, which could take a hit and a down turn. near term down turn and health care would be opportunities. i think you set up in a portfolio. and again, looking for high quality stocks, dividend paying stocks in this environment, will, i think, be -- >> even with the, you know, our previous segment was talking about potential for big tax hikes on dividends. even with that, you'll still be going for dividend stocks? >> i think so. i heard that segment and i think we will be get an increase but we won't get that full effect going to the maximum tax rates. >> right. we can only hope there. >> looking in that 20% range. >> chad, what are your
expectations? >> well, i think you're going to go over the cliff, but you're going to get a mini bargain. any market dislocation you have over the next 15 trading days, i'd be a buyer. in the long run, we have the economy that's improving, stall speed, but that will gradually increase over the course of the year. once you have some more certainty. so, you'll get some capital spending, you'll get retail investors that will be a little bit more optimistic as well as institutional inves or thes will start to click and up their equity allocation. >> where does 2013 end up for the market? >> i'm looking very positive. i'm bullish in premise here based on the dollar turning lower. stock market moved up, with the dollar at two-year highs this summer. now, when the dollar breaks below 79, which is support from september and october. i think one thing you have to keep an eye on is crude oil is making a breakout here above the 91 level.
that's another positive sign that investors are traders, i put those two terms together are not as worried as this cliff that we talk about, you know, nonstop 24 hours a day. i think people are looking beyond that. i think gold, $17.50 call spread for june or the canadian dollar, those have not participated. >> three gentlemen with their fingers firmly crossed watching washington. thank you all, see you later. >> a few toes, as well. just two trading sessions left this year. >> we're going to tell you what will move your money first thing tomorrow morning. could be a very interesting day tomorrow. we'll talk about it, coming up.
oo well, if it isn't mr. margin. mr. margin? don't be modest, bob. you found a better way to pack a bowling ball. that was ups. and who called ups? you did, bob. i just asked a question. it takes a long time to pack a bowling ball. the last guy pitched more ball packers. but you... you consulted ups. you found a better way. that's logistics. that's margin. find out what else ups knows. i'll do that. you're on a roll. that's funny. i wasn't being funny, bob.
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usaa. we know what it means to serve. well, with 30 seconds on the clock, our next guests are going to tell you what could move the market tomorrow. >> and here they are. michael james, chris katerchak and brickland dyer. gentlemen, welcome. michael, 30 seconds. what do you expect tomorrow? >> well, away from the market, i'm hoping there's going to be a cage match between senators mcconnell and reid to try to get us a little closer to some answer for the fiscal cliff. absent that happening, paying close attention to the retail stocks. we remain favorable on a few
that had a nice bounce back in the last hour. deckers, michael kors and ab abercrombie & fitch. afterle looked like it was going to test $500 today. had a huge rally in the last hour with the rest of the market. got back to plus on the day. the direction of apple is going to be a major sentiment indicator, not only for the tech tape but for the tape in general. it closed pretty well today. we'll see how tomorrow opens. >> absolutely. chris, what about you? break it down. >> well, tomorrow i'm going to be focused on the vices. the fiscal cliff is weighing heavily and we saw that during the release of the consumer sentiment reading last week. that's why we saw the vices pop above 20 today. for a little white. so, in the resecent past, these have been great buying opportunities. i don't see a decision being made for the his calf cliff, i do see a deal made in 30 to 60 days, proving to be a better bullish indicator for