don't forget to catch more "fast money," 5:00 p.m. tonight. also tune in to "street signs" which is at 2:00 p.m. eastern time. should be a good show given my jet lag. i'm going to wake words up. "power lunch" begins right now. we don't have the excuse of jet lag. three hours to go in the trading day. investors waiting for the first presidential news conference of the year. it's scheduled to start just minutes from now. mr. obama expected to take tough questions on iran, gasoline prices and jobs. we will, of course, carry it live. meanwhile, the bulls are taking a beating today. the worst day in three months. worries about greece and global growth weighing on the markets. we've had a pretty big run-up this year. the chief strategist at ubs will tell you if you should buy on this dip. >> i'm tyler mathisen with sue herera. brian shactman is at the realtime exchange. this is "power lunch." brian, take it away. >> i think i live at the realtime exchange, pay rent here.

if you close these levels, it would be the biggest drop for the major averages. today's biggest concern, greece. thursday, another key deadline for a bond swap with creditors. down 200 points on the dow. below 12,800. the s&p, 1.5%. and the nasdaq composite down 43.5 points. the pulse of the markets, check out the vix, rising above 20 for the first time since february the 16th. it is up 14%, almost 15%. crude oil down 2% and below $105 a barrel. look at the selloff in gold. down $37. midday movers, morgan stanley lower on the heels of course of a selloff in european financials. good for 5.25% to the downside. peabody energy down. the lowest since july of 2009. nutrisystem reporting a worse-than-expected fourth-quarter loss. we have a few winners to show you. monster worldwide reviewing

strategic alternatives. dick's sporting goods, solid outlook. and supervalu up 3%. we start with bob pisani at the nyse. >> the important thing here is, i know greece is getting a good part of the blame today and it deserves it. but the other major part of the story is about slowing global growth. put up the major headlines we've dealt with today. the important thing, when you see brazil with declines here of 2.7% or 2.7% gdp growth, that wasn't supposed to happen. all the brazilian stocks are down today. that's not just on greece. that's on concerns of global slowdowns. q4 gdp is down in europe. parts of it in a recession. we talked china cutting its growth target yesterday. and anemic growth here in the united states. take a look at the s&p 500. what do you do here with the s&p 500? you pull back and wait, maybe you wait for a better level. 1,325 perhaps instead of 1,343.

maybe 1,300 would be a better level. you wait to see where you get buying interest. a lot of people are waiting for a pullback. we're only down 2.5% from the recent highs. that's not a correction. that's not anything right now. that's just a minor retreat for the overall markets. take a look at the vix. we got some put buying very early on. it stabilized very quickly. we're not seeing any big, big moves up in the vix. modestly at 20.75. watch the vix curve. that's what you want to look at. are things getting much, much steeper going further out? look at the vix futures. this is october. we noted a week ago that it was at 29. it hasn't changed. in other words, this curve is not steepening at all. if it was, i'd get a lot more worried about the markets. finally take a look at the major sectors. you can see the predictable concerns here. there's the group that drops immediately on concerns about slowing global growth. that's your key, again, tyler, it's about global growth. back to you. >> bob, thank you very much. let's know drill down a little

bit more on the latest in energy. for that, we go down to the nymex and bertha coombs. >> today, tyler, slower global growth is the theme with the concerns about the iran nuclear confrontation taking a bit of a backseat with the u.n. security council saying it will resume talks with iran over the nuclear issues. we are seeing oil right now near the lows of the session as the dow is down 200 points. right now, overall you're seeing commodities take their cue from the rest of the overall markets. interestingly, nat gas has been the outlier today after that huge drop yesterday. the eia revising its outlook for 2012, production, a little lower than their previous outlook. and consumption, a little higher than their previous outlook. that's helping nat gas. and the metals just getting crushed, particularly the industrial metals in the platinum group, palladium, the biggest decliner today. not as big as gold and silver and copper in terms of how it's traded. nonetheless, remarkable decline

today. >> indeed they are. thank you very much. stocks on track for the biggest loss of the year as we said. in fact, the dow hasn't closed with a 100-point-plus decline in 45 sessions. so are we seeing a longer-term correction in the market? let's bring in our power player, jonathan golub. good to see you again. >> hi, sue. >> ironically on a day when we're down triple digits, you've become slightly more bullish raising your s&p target to 1,475. >> correct. right now it's a little less than 10% upside from here. when you consider over the next ten months, i don't think it's particularly heroic. but yet on a day like this, obviously optimism compared to what the markets say. >> why did you become more bu bullish? what were the underpinnings to that call? >> over the last few months, we've had a huge flood of liquidity coming from central banks, not only the ecb, it's the fed, the bank of china, the bank of japan. it's very much exactly the theme we're seeing today. we are in a slow-growth

environment. and the central banks around the world are committed to keeping things moving forward. what does that mean from a u.s. equity perspective? a lot of support for earnings. while we're seeing slower growth today in the incoming data from europe, in fact, the actual economic data coming in in the u.s., asia and europe is incrementally better than expected over the last couple of months, not worse. >> but china yesterday said they're going to lower their growth forecast. >> right. >> that's not better data from asia. today brazil's numbers were a little bit soggy. >> right. >> do you think in light of that that the earnings are as secure as you might have believed? >> you know, there's a couple of questions here. but the first is, we've seen a really interesting trend where the last couple of years, you've had teens earnings growth. the market basically said that's crazy. a lot of that was on weaker dollar, overseas growth, not domestic growth. oil prices which had really jumped up which were supporting

that. now you're starting to see growth expectations in the 5% to 7% range. and the market is going to be much more comfortable with the earnings expectation going forward than they were in the past. so no question we're seeing slower growth. but more consistent with the underlying economy -- >> they were skeptical of those earnings. >> they were more skeptical -- >> then than they are now and maybe we're getting paid now. >> that's correct. we've seen the estimates -- wall street analyst estimates have stopped falling over the last month where they had been coming down from these exceptionally strong levels. effectively the market is settling into what i would call the middle part of a normal cycle as opposed to something more frothy in terms of earnings growth. >> you were in consumer discretionary and a couple of other key sectors -- intl we like the stocks. there's a caveat. there's winners and losers within health care. we like the bioteches.

we would be overweigh that group. we like the farm sis, the drug distributors, we'd be overweight there. we'd be neutral on big pharma. certainly areas are leveraged to economic success or pricing pressures that we'd be underweight. >> how do you feel about the bond trade that everybody's hot on at this point in. >> it's a really interesting thing. one of the ways that we value equities based on our mod is also this relationship between high-yield stocks -- high-yield bonds and stocks. right now the high-yield market is actually more frothy than the equity market, which is one of the reasons why we think that multiples on stocks will tend to move up a little bit. so it's a good question. >> what is your view on -- bob pisani just pointed out that the global growth slowdown, if you can call it that, is affecting today industrials and materials. do you have any views on that? >> yeah, take a look -- one of

the sectors that are most sensitive to european macro concerns and economic weakness, it's the banks, materials, energy and the fourth one is industrials. we like technology and the american consumer which is still holding in surprisingly well. that's because the employment data is coming in okay. >> long live the american consumer, right? >> absolutely. >> thanks, jonathan. appreciate it very much. apple is expected to host -- or will host a highly anticipated event tomorrow with big bets on the announcement of a new ipad. our technology correspondent jon fortt joins us with what we could expect. jon? >> reporter: yeah, tyler, first let's take a look at the stakes for apple. we got our first glimpse of the ipad just two years ago. it's easy to lose sight of just how essential it is to apple's growth story. apple sold 15.4 million ipads last quarter alone for $9.2 billion in revenue.

it made up just a little less than 20% of apple's overall sales. even that stat is misleading. the number one product at apple last quarter was the iphone, of course, more than half of revenue. but the iphone is a subsidized product. the ipad is unsubsidized. it's the greatest share of revenue. what we don't know, what apple might not even know based on tim cook's recent comments is how fast the ipad can grow. if it can do 15 million units in its first quarter of sale, that would be $9 billion to $12 billion in sales. that would set up apple for a new iphone in the summer or fall. what to expect specifically in terms of features here? looking for a sharper screen, better camera, an a6 chip, probably siri integrated here. and do we get faster lte networking? perhaps. there's also the possibility that we get a new apple tv box.

back to you. >> jon, thank you very much. of course, the president expected to start taking questions at the white house any minute now basically in about five minutes. it is his first -- i was surprised to hear this. his first normal news conference of the year, first in five months, in fact. >> that's why we'll have it for you live as "power lunch" continues. [ male announcer ] let's level the playing field. take the privileged investing tools of wall street and make them simple, intuitive, and available to all. distill all that data. make information instinctual, visual. introducing trade architect, td ameritrade's empowering web-based trading platform. take control of your portfolio today. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.

get you up to date on the markets. it's been a down day. we are now down 203 points and change on the dow jones industrial average. the s&p is down 12.3, equivalent of 1.5%. almost off 1.5% on the nasdaq as well. worries about greece, worries about brazil and a lot of markets weighing on wall street today. the breaking news at this hour is president obama's news conference, which is imminent. his first of the year. there are some of the broadcasters getting ready for it. they're assuming the position there in front of the podium in the white house briefing room. john harwood is here, he's our chief washington correspondent. john, the cynic or maybe the skeptic in me sees a coincidence between the timing of this and superdelegate. >> superdelegate, isn't it? whoa! i guess it was an accident. >> it was an accident, right? >> look, this president has begun the process of actively trying to counterprogram from what republicans are doing.

you know he makes auto announcements and auto-related speeches. he speaks to the auto workers when the michigan primary is going on. now we've got super tuesday. mitt romney hoped to take a big step forward today toward the republican nomination. the president is dominating the news with this news conference. >> there are real issues to discuss, israel, iran, the middle east conflict -- oil prices. there are a number of economic issues. let's listen in to the president. >> good afternoon, everybody. now, i understand there are some political contests going on tonight. but i thought i'd start the day off by taking a few questions which i'm sure will not be political in nature. but before i do, i want to make a few announcements about some steps we're taking to help responsible homeowners who have been struggling through this housing crisis. now, we've clearly seen some positive economic news over the last few months. businesses have created about 3.7 million new jobs over the

last two years. manufacturers are hiring for the first time since the 1990s. the auto industry is back and hiring more than 200,000 people over the last few years. confidence is up and the economy is getting stronger. but there are still millions of americans who can't find a job. there are millions more who are having a tough time making the rent or the mortgage, paying for gas or groceries. so our job in washington isn't to sit back and do nothing, and it's certainly not to stand in the way of the recovery. right now, we've got to do everything we can to speed it up. now, congress did the right thing when they passed part of my jobs plan and prevented a tax hike on 160 million working americans this year. that was a good first step. but it's not enough. they can't just stop there and wait for the next election to come around. there are a few things they can do right now that could make a real difference in people's lives.

this congress should once and for all end tax breaks for companies shipping jobs overseas and use that money to reward companies creating jobs here in the united states. i've put forward a proposal that does just that. there's no reason why congress can't come together and start acting on it. this congress could hold a vote on the buffett rule so that we don't have billionaires paying a lower tax rate than their secretaries. that's just common sense. the vast majority of americans believe it's common sense. if we're serious about paying down our deficit, it's as good a place to start as any. and finally this congress should pass my proposal to give every responsible homeowner a chance to save an average of $3,000 a year by refinancing their mortgage at historically low rates, no red tape, no runaround from the banks. if you've been on time on your payments, if you've done the right thing, if you've acted responsibly, you should have a

chance to save that money on your home, perhaps to build up your equity or just add more money in your pocket that you could spend on businesses in your community. that would make a huge difference for millions of american families. now, if congress refuses to act, i've said that i'll continue to do everything in my power to act without them. last fall we announced an initiative that allows millions of responsible homeowners to refinance at low interest rates. today we're taking it a step further. we are cutting by more than half the refinancing fees that families pay for loans insured by the federal housing administration. that's going to save the typical family in that situation an extra $1,000 a year on top of the savings that they'd also receive from refinancing. that would make refinancing even more attractive to more families. it's like another tax cut that will put more money in people's pockets. we're going to do this on our own. we don't need congressional authorization to do it. we're also taking a series of

steps to help homeowners who have served our country. it is unconscionable that members of our armed forces and their families have been some of those who have been most susceptible to losing their homes due to the actions of unscrupulous banks and mortgage lenders. over the last few years, that happened, a lot. so as part of the landmark settlement we reached with some of the nation's largest banks a few weeks ago, here's what we're going to do. if you are a member of the armed forces whose home was wrongfully foreclosed, you will be substantially compensated for what the bank did to you and your family. if you are a member of the armed forces with a high interest rate who was wrongfully denied the chance to lower it while you were in active service, which banks are required to do by law, the banks will refund you the money you would have saved, along with a significant penalty.

the settlement will make sure that you aren't forced into foreclosure just because you have a permanent change in station but can't sell your home because you owe more than it's worth. some of the money will also go into a fund that guarantees loans on favorable terms to our veterans. and there will be more foreclosure protections for every man and woman who is currently serving this country in harm's way. as i said before, no amount of money is going to be enough to make it right for a family who has had their piece of the american dream wrongfully taken away from them. and no action, no matter how meaningful, will entirely heal our housing market on its own. this is not something the government by itself can solve. but i'm not one of those people who believe that we should just sit by and wait for the housing market to hit bottom. there are real things that we can do right now that would make a substantial difference in the lives of innocent, responsible

homeowners. that's true in housing and that's true in any number of different areas when it comes to ensuring that this recovery touches as many lives as possible. that's going to be my top priority as long as i hold this office and i will do everything i can to make that progress. so with that, i'm going to take some questions. i will start with mike viqueira. >> about the middle east, a little less than a year ago, moammar gadhafi said he was going to send his forces to benghazi, rout opponents from their bedrooms and shoot them. in syria, bashar al assad is killing people. there's a massacre under way. your critics here in the united states, most notingly john mccain, said you should start air strikes. mitt romney said if you are reelected, iran will get a bomb and the world will change.

how do you respond? >> a couple of questions there. let me -- let's start with the iran situation, since that's been a topic in the news the last few days. when i came into office, iran was unified, on the move, had made substantial progress on its nuclear program, and the world was divided in terms of how to deal with it. what we've been able to do over the last three years is mobilize unprecedented crippling sanctions on iran. iran is feeling the bite of these sanctions in a substantial way. the world is unified. iran is politically isolated. what i have said is that we will not countenance iran getting a nuclear weapon. my policy is not containment. my policy is to prevent them from getting a nuclear weapon because if they get a nuclear weapon, it could trigger an arms

race in the region. it could potentially fall into the hands of terrorists. we've been in close consultation with all our allies, including israel, in moving this strategy forward. at this stage, it is my belief that we have a window of opportunity where this can still be resolved diplomatically. that's not just my view. that's the view of our top intelligence officials. it's the view of top israeli intelligence officials. and as a consequence, we are going to continue to apply the pressure even as we provide a door for the iranian regime to walk through where they could rejoin the community of nations by giving assurances to the international community that they're meeting their obligations and they are not pursuing a nuclear weapon. that's my track record. now, what's said on the campaign tra trail, those folks don't have a lot of responsibilities.

they're not commander in chief. and when i see the casualness with which some of these folks talk about war, i'm reminded of the costs involved in war. i'm reminded the decision that i have to make, in terms of sending our young men and women into battle and the impacts that has on their lives, the impact it has on our national security, the impact it has on our economy. this is not a game. there's nothing casual about it. and when i see some of these folks who have a lot of bluster and a lot of big talk, but when you actually ask them specifically what they would do, it turns out they repeat the things that we've been doing over the last three years. it indicates to me that's more about politics than actually trying to solve a difficult

problem. now, the one thing that we have not done is we haven't launched a war. if some of these folks think that it's time to launch a war, they should say so and they should explain to the american people exactly why they would do that and what the consequences would be. everything else is just talk. >> that goes for syria as well? >> with respect to syria, what's happening in syria is heartbreaking and outrageous. and what you've seen is the international community mobilize against the assad regime. it's not a question of when assad leaves -- or if assad leaves, it's a question of when. he has lost the legitimacy of his people. and the actions that he is now taking against his own people is inexcusable and the world community has said so in a more or less unified voice.

on the other hand, for us to take military action unilaterally, as some have suggested or to think that somehow there is some simple solution, i think is a mistake. what happened in libya was we mobilized the international community, had a u.n. security council mandate, had the full cooperation of the region, arab states and we knew that we could execute very effectively in a relatively short period of time. this is a much more complicated situation. so what we've done is, to work with key arab states, key international partners, hillary clinton was in tunisia to come together and to mobilize and plan how do we support the opposition, how do we provide humanitarian assistance, how do we continue the political

isolation, how do we continue the economic isolation? and we are going to continue to work on this project with other countries. and it is my belief that ultimately this dictator will fall, as dictators in the past have fallen. but the notion that the way to solve every one of these problems is to deploy our military -- that hasn't been true in the past and it won't be true now. we've got to think through what we do through the lens of what's going to be effective but also what's critical for u.s. security interests. >> jake tabor? >> what kind of assurances did you give prime minister netanyahu about the role that the u.s. would play if diplomacy and economic sanctions fail to work to convince iran's leaders to change their behavior and

israel goes ahead andrepares to strike their nuclear facility? what kind of assurances did you tell him and shouldn't we -- i recognize the difference between debate and bluster. but shouldn't we be having in this country a vigorous debate about what could happen in the case of a middle east war in a way that sadly we did not do before going into iraq? >> i think there's no doubt that those who are suggesting or proposing or beating the drums of war should explain clearly to the american people what they think the costs and benefits would be. i'm not one of those people. because what i've said is that we have a window through which we can resolve this issue peacefully. we have put forward an international framework that is applying unprecedented pressure. the iranians just state that had they are willing to return to the negotiating table. and we've got the opportunity even as we maintain that

pressure to see how it plays out. i'm not going to go into the details of my conversation with prime minister netanyahu. but what i said publicly doesn't differ greatly from what i said privately. israel is a sovereign nation that has to make its own decisions about how best to preserve its security. and as i said over the last several days, i am deeply mindful of the historical precedence that weigh on any prime minister of israel when they think about the potential threats to israel and the jewish homeland. what i have also said is that because sanctions are starting to have significant effect inside of iran -- and that's not just my assessment. that's, i think, a uniform assessment. because the sanctions are going to be even tougher in the coming months, because they're now

starting to affect their oil industry, their central bank, and because we're now seeing noises about them returning to the negotiating table, that it is deeply in everybody's interests -- the united states, israel and the world's -- to see if this can be resolved in a peaceful fashion. so this notion that somehow we have a choice to make in the next week or two weeks or month or two months is not borne out by the facts. and the argument that we've made to the israelis is that we have made an unprecedented commitment to their security. there is an unbreakable bond between our two countries. but one of the functions of friends is to make sure that we provide honest and unvarnished advice in terms of what is the best approach to achieve a common goal. particularly one in which we have a stake. this is not just an issue of

israeli interest. this is an issue of u.s. interest. it's also not just an issue of consequences for israel if action is taken prematurely. there are consequences to the united states as well. and so i do think that anytime we consider military action, that the american people understand there's going to be a price to pay. sometimes it's necessary. but we don't do it casually. when i visit walter reed, when i sign letters to families whose loved ones have not come home, i'm reminded that there is a cost. sometimes we bear that cost, but we think it through. we don't play politics with it. when we have in the past, when we haven't thought it through and it gets wrapped up in

politics, we make mistakes. and typically it's not the folks who are popping off who pay the price. it's these incredible men and women in uniform and their families who pay the price. and as a consequence, i think it's very important for us to take a careful, thoughtful, sober approach to what is a real problem. that's what we've been doing over the last three years. that's what i intend to keep doing. >> if i could quickly follow up, you said we've got israel's back. what does that mean? >> what it means is historically we have always cooperated with israel with respect to the defense of israel, just like we do with a whole range of other allies. just like we do with great britain, just like we do with japan. and that broad statement, i think, is confirmed when you

look at what we've done over the last three years on things like iron dome that prevents missiles from raining down on their small towns along border regions of israelat potentially land on schools or children or families. and we're going to continue that unprecedented security -- security commitment. it was not a military doctrine that we were laying out for any particular military action. it was a restatement of our consistent position that the security of israel is something i deeply care about and that the deeds of my administration over the last three years confirms how deeply we care about them. that's a commitment we've made. jackie? where's jackie? >> with the news this morning that the u.s. and its allies are

returning to the table or taking up iran's offer to talk again more than a year after those talks broke up in frustration, is this israel's -- iran's last chance to negotiate and to this nuclear question -- you said nearly three years ago in a similar one-on-one meeting with prime minister netanyahu that the time for talk -- by the end of that year, 2009, you would be considering whether iran was negotiating in good faith. and you said at that time that, we're not going to have talks forever. so here we are nearly three years later. is this it? and did you think you would be here three years after those first talks? >> you know, there is no doubt that over the last three years when iran has engaged in negotiations, there has been hemming and hawing and stalling and avoiding the issues in ways

that the international community has concluded were not serious. and my expectations, given the consequences of inaction for them, the severe sanctions that are now being applied, the huge toll it's taking on their economy, the degree of isolation that they're feeling right now, which is unprecedented, they understand that the world community means business. to resolve this issue will require iran to come to the table and discuss in a clear and forthright way how to prove to the international community that the intentions of their nuclear program are peaceable. they know how to do that.

this is not a mystery. and so it's going to be very important to make sure that on an issue like this, there are complexities. it obviously had to be methodical. i don't expect a breakthrough in a first meeting. but i think we will have a pretty good sense fairly quickly as to how serious they are about resolving the issue. and there are steps that they can take that would send a signal to the international community and that are verifiable. that would allow them to be in compliance with international norms, in compliance with international mandates, abiding by the nonproliferation treaty and provide the world an assurance that they're not pursuing a nuclear weapon. they know how to do it. and the question is going to be whether in these discussions they show themselves moving

clearly in that direction. ed henry. >> thank you, mr. president. i wanted to follow up on israel and iran because you have said repeatedly you have israel's back. i wonder why after three years in office you have not visited israel as president. as relating to iran and israel, you have talked about this possibility of war driving up gas prices further. you have said higher gas prices will wean the american people off fossil fuels on to renewable fuels. >> do you think a president going into an election year wants gas prices to go up higher? is there anybody here who think that is makes a lot of sense? look, here's the bottom line with respect to gas prices. i want gas prices lower because they hurt families, because i

meet folks every day who have to drive a long way to get to work and them filling up this gas tank gets more and more painful and it's a tax out of their pocketbooks, out of their paychecks. and a lot of folks are already operating on the margins right now. and it's not good for the overall economy because when gas prices go up, consumer spending oftentimes pulls back. and we're in the midst right now of a recovery that is starting to build up steam and we don't want to reverse it. what i have also said about gas prices is that there is no silver bullet. and the only way we are going to solve this problem over the medium and long term is with an "all of the above" strategy that says, we're going to increase production, which has happened, we are going to make sure that we are conserving energy.

that's why we doubled fuel efficiency standards on cars which will save consumers about $1.7 trillion and take about 12 billion barrels of oil offline, which will help to reduce prices. and we're going to develop clean energy technologies that allow us to continue to use less oil. and we've made progress. the good news is, 2010, first time in a decade that our oil imports were actually below 50%. and they have kept on going down. and we're going to keep on looking at every strategy we can to, yes, reduce the amount of oil that we use while maintaining our living standards and maintaining our productivity and maintaining our economic growth. and we're going to do everything we can to make sure that consumers aren't hurt by it. now, there are some short-term steps that we're looking at with respect to, for example -- there are certain potential

bottlenecks in refineries around the country that we've been concerned about. we're concerned about what's happening in terms of production around the world. it's not just what's happening in the gulf. you've had, for example, in sudan some oil that's been taken offline that's helping to restrict supply. so we're going to look at a whole range of measures, including, by the way, making sure that my attorney general is paying attention to potential speculation in the oil markets. i've asked him to reconstitute a task force that's examining that. but we go through this every year. we've gone through this for 30 years. and if we are going to be competitive, successful and make sure families are protected over the long term, then we've got to make sure that we've got a set of options that reduce our overall dependence on oil.

with respect to israel, i'm not the first president who has been unable because of a whole range of issues not to visit israel as president in their first term. i visited israel twice as senator, once right before i became president. the measure of my commitment to israel is not measured by a single visit. the measure of my commitment to israel is seen in the actions that i've taken as president of the united states. and it is indisputable that i have had israel's back over the last three years. >> do you believe rush limbaugh's apology to the georgetown law student was sufficient and heartfelt? do you agree with the decision of the growing number of sponsors that have decided to drop his show or stop supporting his show? and has there been a double standard on this issue, liberal commentators have made similarly

provocative or distasteful statements and there hasn't been such an outrage. >> you know, i'm not going to comment on what sponsors decide to do. i'm not going to comment on either the economics or the politics of it. i don't know what's in rush limbaugh's heart. so i'm not going to comment on the sincerity of his apology. what i can comment on is the fact that all decent folks can agree that the remarks that were made don't have any place in the public discourse. and the reason i called ms. fluke is because i thought about malia and sasha and one of the things i want them to do as they get older is to engage in issues they care about, even ones i may not agree with them on.

i want them to be able to speak their mind in a civil and thoughtful way. and i don't want them attacked or called horrible names because they're being good citizens. and i wanted sandra to know that i thought her parents should be proud of her, and that we want to send a message to all our young people that being part of a democracy involves argument and disagreements and debate. and we want you to be engaged. and there's a way to do it that doesn't involve you being demeaned and insulted, particularly when you're a private citizen.

all right. jessica yellen? jessica? >> thank you, mr. president. top democrats have said that republicans on a similar issue are engaged in a war on women. some top republicans say it's more like democrats are engaged in a war for the women's vote. as you talk about loose talk of war in another arena and women are -- this could raise concerns among women, do you agree with the chair of your democratic national committee that there is a war on women? >> here's what i think. women are going to make up their own mind in this election about who is advancing the issues that they care most deeply about.

one of the things i've learned being married to michelle is, i don't need to tell her what it is that she thinks is important. and there are millions of strong women around the country who are going to make their own determination about a whole range of issues. it's not going to be narrowly focused just on contraception. it's not going to be driven by one statement, by one radio announcer. it is going to be driven by their view of what's most likely to make sure they help support their families, make their mortgage payments, who's got a plan to ensure the middle class families are secure over the long term, what's most likely to result in their kids being able to get the education they need to compete. and i believe that democrats have a better story to tell to women about how we're going to

solidify the middle class and grow this economy, make sure everybody has a fair shot, everybody's doing their fair share and we have a fair set of rules of the road that everybody has to follow. so i'm not somebody who believes that women are going to be single-issue voters. they never have been. but i do think that we have a strong story to tell when it comes to women. >> would you prefer this language be changed? >> jessica, as you know, if i start being in the business of arbitrating -- >> you talk about civility -- >> right. and what i do is i practice it. i'm going to try to lead by example in this situation as opposed to commenting on every single comment that's made by either politicians or pundits. i would be very busy. i would not have time to do my job. that's your job to comment on what's said by politicians and pundits. >> all right.

lori montenegro? >> mr. president, thank you. >> there you are. >> mr. president, polls are showing that latino voters seem to be favoring your reelection over a republican alternative. yet some of them are still disappointed, others upset, about a promise that you made on immigration reform that has yet to come to pass. if you are reelected, what would be your strategy? what would you do different to get immigration reform passed with the congress, especially if both houses continue as they are right now, which is split? >> well, first of all, just substantively, every american should want immigration reform. we've got a system that's broken. we've got a system in which you have millions of families here in this country who are living in the shadows, worried about deportati

deportati deportation. you've got american workers that are being undercut because those undocumented workers can be hired and the minimum wage laws may not be observed, overtime laws may not be observed. you've got incredibly talented people who want to start businesses in this country or to work in this country, and we should want those folks here in the united states. but right now, the legal immigration system is so tangled up that it becomes very difficult for them to put down roots here. so we can be a nation of laws and a nation of immigrants. and it is not just a hispanic issue. this is an issue for everybody. this is an american issue that we need to fix. now, when i came into office, i said i am going to push to get this done. we didn't get it done. and the reason we haven't gotten it done is because what used to be a bipartisan agreement that

we should fix this ended up becoming a partisan issue. i give a lot of credit to my predecessor, george bush, and his political advisers who said, this should not be just something the democrats support. the republican party is invested in this as well. that was good advice then. it would be good advice now. and my hope is that after this election, the latino community will have sent a strong message that they want a bipartisan effort to pass comprehensive immigration reform that involves making sure we've got tough border security. and this administration has done more for border security than just about anybody, that we are making sure that companies aren't able to take advantage of undocumented workers, that we've got strong laws in place, and

that we've got a path so that all those folks whose kids often are u.s. citizens who are working with us and living with us and in our communities and not breaking the law and trying to do their best to raise their families, that they've got a chance to be a fuller part of our community. so what do i think will change? >> what would you do differently? >> what i will do -- look, we're going to be putting forward, as we have done before, a framework, a proposal, legislation, that can move it -- move the ball forward and actually get this thing done. but ultimately i can't vote for republicans. they're going to have to come to the conclusion that this is good for the country and that this is something that they themselves

think is important. and depending on how congress turns out, we'll see how many republican votes we need to get it done. nora o'donnell, how are you? >> thank you, mr. president. today is super tuesday. i wonder if you might weigh in on some of your potential republican opponents. mitt romney has criticized you on iran and said, hope is not a foreign policy. he also said that you are america's most feckless president since carter. what would you like to say to mr. romney? >> good luck tonight. >> no, really. >> really. lynn, since you've been hollering, make it a good one. >> my question is about the g-8 summit.

a reason given from the white house is that now you wanted a more intimate summit. people in chicago would like to know, what do you know know that you did not know when you booked hometown chicago for the g-8 that led to the switch and what role did security threats possibly play in the decision? >> well, keep in mind, lynn, we're still going to be showing up with a whole much of world leaders. we have this nato summit. we've tried to attach the g-8 summit to the nato summit so that the leaders in the g-8 summit don't have to travel twice to whatever location -- so last year in france, we combined a g-8 with a nato summit. we'll do so again. i have to say, this was an idea that was brought to me after the initial organizing of the nato summit. somebody pointed out that i hadn't had any of my

counterparts who i've worked with now for three years up to camp david. g-8 tends to be a more informal setting in which we talk about a wide range of issues in a pretty intimate way. and the thinking was that people would enjoy being in a more casual backdrop. i think the weather should be good that time of year. it will give me a chance to spend time with mr. putin, the new russian president. and from there, we will then fly to chicago. i always have confidence in chicago being able to handle security issues, whether it's taste of chicago or lapalooza or bulls championships, we don't how to deal with the crowds. and i'm sure that your new mayor

will be quite attentive to detail in making sure that everything goes off well. all right? go ahead. last question. >> thank you. mr. president, just to continue on that, when the nato leaders gather in chicago in may, do you expect that they'll be able to agree on a transition strategy? and are you concerned at all that the koran burning and the episodes that have followed since then threaten your ability to negotiate with the partners? >> well, keep in mind that the transition policy was in place and established at lisbon. and we've been following that strategy that calls for us turning over increasing responsibility to afghans and a full transition so that our combat role is over by the end of 2014. and our coalition partners have agreed to it. they are sticking with it. that continues to be the plan.

what we are now going to be doing over the next -- at this nato meeting and planning for the next two years is to make sure that that transition is not a cliff, but that there are benchmarks and steps that are taken along the way in the same way that we reduced our role in iraq so that it is gradual, afghan capacity is built, the partnering with afghan security forces is effective, that we are putting in place the kinds of support structures that are needed in order for the overall strategy to be effective. now, yes, the situation with the koran burning concerns me. i think that it is an indication

of the challenges in that environment, and it's an indication that now is the time for us to transition. obviously the violation directed at our people is unacceptable. and president karzai acknowledged that. but what is also true is president karzai, i think, is eager for more responsibility on the afghan side. we're going to be able to find a mechanism whereby afghans understand their sovereignty is being respected and that they're going to be taking a greater and greater role in their own security. that, i think, is in the interest of afghans. it's also in our interest. and i'm confident we can execute. but it's not going to be a smooth path. there are going to be bumps along the road just as there were in iraq. >> are these bumps along the road or are you seeing a deterioration in the relationship based upon the koran burning itself, the

violence that has followed, that inhibits your ability to work out things like how to hand off the detention center? >> no, none of this stuff is easy. and it never has been. and obviously the most recent riots or protests against the koran burning were tragic. but, remember, this happened a while back when a pastor in florida threatened to burn a kor koran. in iraq, as we were making this transition, there were constant crises that would pop up and tragic events that would take place. and there would be occasional setbacks. but what i've tried to do is to set a course, make sure that up and down the chain of command, everybody knows what our broader strategy is. and one of the incredible things about our military is that when they know what our objective is, what our goal is, regardless of

the obstacles that they meet along the way, they get the job done. and i think that president karzai understands that we are interested in a strategic partnership with the afghan people and the afghan government. we are not interested in staying there any longer than is necessary to assure that al qaeda is not operating there and that there is sufficient stability that it doesn't end up being a free-for-all after isaf has left. we share interest here. it will require negotiations and there will be time when things don't look as smooth as i'd like. that's kind of the deal internationally on a whole range of these issues. all right? thank you, guys. oh, can i just make one other

comment? i want to publicly express condolences to the family of donald payne, a congressman from new jersey. a wonderful man, did great work both domestically and internationally. he was a friend of mine and so my heart goes out to his family and to his colleagues. >> the president in his first news conference of this year, wide-ranging group of topics that we're going to talk about with john harwood in a moment. but first, let's reset the markets with you. we are down 200 points. we touched negative 212 on the dow jones industrial average just a short time ago. but we've bounced back up. off 21 points on the s&p 500. and the nasdaq is off 41 points on the trading session. john, your thoughts, your impressions? there was a lot about the middle east, the tensions there concerning various entities. the president seemed to once