connel: good morning, everyone. dagen: president says he's rich reach across the aisle and find the middle ground, but look at the stock market going down. connell: the market is down day today. more doom and gloom. some of the biggest names in the business coming up this hour. dagen: and fire them up, the judge on the economic benefits of the legalization of marijuana. connell: we are down more than 300 points in a market selloff pushed the dow below 13,000 for the first time since september. nicole petallides with the stocks every 15 minutes. nicole: connell and dagen, this is a rough day on wall street. down more than 2%. all 30 dow components in the red.

see how they're tough with financials, when you look at aerospace and defense, they are to the downside. how about health insurers, coal, this is not the romney administration. we are seeing from sector to sector the selloff in wall street. back to you. connell: thank you, now watch this. >> you elected us to focus on your job, not ours. in the coming weeks and months we're looking forward to reaching out and working with leaders of both parties to meet the challenges we can only solve together. reducing our deficit, reforming our tax code, fixing our immigration system, freeing ourselves from foreign oil. we have more work to do. dagen: that was president obama during his victory speech last

night stressed the need for bipartisanship. connell: former managing director at bain capital and author of unintended consequences. a friend of mitt romney's, the polls were right, your friend lost last night in the market down 300 points today, what do you make of it all? >> the online betting predicted 75% probability of an obama win so that means that 25% of the remaining uncertainty left prior to the election. it is really four times bigger if you think about it in terms of what was priced in. dagen: do you think it is part of what was maybe not getting done on time for the fiscal cliff, they are pricing in may with a greater likelihood of a recession, which everybody says it is not just the presidents fault, it is the president and congress getting together to do

something about the tax increases and spending cuts? >> they expect higher turning and higher taxes and slower growth. i think the market looks pretty far in advance and have priced in the probability of will we or won't they go up on the fiscal cliff. connell: since you are here, you know mitt romney personally, what do you think happened in the election? >> the first is i think president obama was very clever about running spending up to 24% gdp from the historical average, and convincing enough voters all we had to do was raise taxes on people over 250,000 in capital gains taxes and estate taxes and bring the whole thing back into balance but that only raises $100 billion per year. you can run the 200 billion per year and gdp will not grow. a hundred billion dollars gap to close.

dagen: in the overarching concern was about spending running at these high levels, if it was about borrowing even more money and not truly addressing the national debt, wouldn't you see interest rates going up and the yield on the 10-year rising them instead down and falling today, so it seems this is purely an economic trade. >> i think it had to do more with the rest of the world and where they will go. we are seeing where this ends up, but i don't think there is a shortage of risk capital in the world and government guaranteed debt. a surplus of capital coming out of financial crisis. connell: a former colleague of romney but he lost and the market is reacting as it is, are you optimistic about the future of the country, are you worried, what is the thought process?

>> i think this brings everybody back to the negotiating table and the democrats will have to step up and lead on the process of how to bring $900 billion gap in spending relative of tax revenues under control. they will not solve enough by taxing the people earning over $250,000. we need $900 billion per year of tax increases, we only collect $1.1 trillion per year in income taxes. the spending levels that we have our enormous increases in taxes and when people are confronted with that the president and the democratic party have to admit there needs to be enormous spending cuts. maybe we don't want to go off the cliff but they have to hold the spending and let the economy grow back. connell: a former colleague at bain capital, thank you for coming in today. dagen: we just talked about

bipartisanship and our next guest says when it comes to fixing the fiscal cliff kicking the can down the road is the best we can hope for? really? vice chairman and director of research a real investment, let's start with this major selloff, why is it happening? >> i think people were getting their hopes up, some of the polls yesterday looking like romney had a chance, there were some optimism and clear that optimism is misplaced so you have industries today that this administration has been hostile to that are taking it on the chin. financial services firm in particular getting hit very hard, other industries like education, defense, coal stocks obviously. this administration has not been particularly friendly. dagen: do you make portfolio changes on a day like today?

a close friend of the president and plays basketball with him on a regular basis, i believe. what do you do with your portfolio on a day like today? >> we think investors should be long-term. we think long-term. the next three months will be bumpy. we will have tough negotiations between the president and congress dealing with the fiscal cliff, some bad headlines about no agreement, people walking away from the table. investors ought to buckle up, it will be a wild ride for the next three months. dagen: would you add treasury? >> i personally wouldn't, i think treasuries are very high risk of longer-term, 1.6% you are getting less than inflation return, clearly a flight to safety and treasuries, but in the long run you're no you are g to make money in treasury. dagen: in terms of what happens with the automatic tax increases and how they are dressed in the

automatic spending cuts kicking in january 1, do you believe that taxes on wealthier americans will go higher? taxes on dividends and capital gains will go higher, is that something that you can start betting on now? >> people acting like it is a certainty, and this will be a very tough negotiation. i think frankly people would, republicans would tank a deal with higher taxes in exchange for cuts, a lot of optimism last night from the democrats, rightfully so. i think the real chance they will dig in their heels. there is a real danger we can't come up with an agreement and we get a bad outcome at least temporarily. there's a real chance to go over the fiscal cliff if only for a short period of time. dagen: if you don't like treasuries, what is safe?

>> well, cash. in the long run we believe stocks are still cheap, stocks are earning yield over 7%. you have the market trading less than 13 times earnings but still cheap on an absolute basis and very cheap relative to bonds. in the short run it will be bumpy. so people should have exposure to the market, but if they're worried about things, they should not be afraid to keep money in cash. dagen: it was great to see you. be well, thank you for taking the time and what a night it was and what a day it is today. thank you again. connell: let's go back to the day to day of the market, no obama rally today. the opposite is happening, a big selloff in stocks. charles payne is ahead with ways to make you some money.

california voters giving the governor the go-ahead to raise taxes on families earning $250,000 per year or more. dagen: and the founder of paul mitchell hair care and petrone spirits. he tells us how both sides can come together down in d.c. connell: the judge, and a napolitano, have a lot to say about pot today. economic benefits and everything else on top of that. and talking about stocks and the big selloff, oil 3.5% lower today alone. we will be right back on "markets now."

dagen: we're putting this man's face to the fire with a market selling off big time down 300 points on the dow and he can tell you how to make money. connell: charles payne, this is one of those days tough to find

the stocks in the down market, but how do we do it? >> i will hedge right off the gate. this morning they were awarded the project for the $500 million project at chicago schools, another contract with them as well. i think if we get some things in a second term like another round of stimulus, this time maybe some of them will actually go to construction and this is a company that might be poised to do well. obviously the stock is down with the market and it is not a stock you have to own before the reporting but they report in a week or so. this might be one that investors want to take a look at. dagen: what are you talking about? we can afford that? >> see you guys later. connell: let's go back to nicole.

dagen: don't say where you pulled it out of. connell: way, apple will become a bigger and bigger story with these levels, nicole. nicole: there's a lot going on. let's talk about the fact the dow is down over 300 points, each major market average down 2%, so you are seeing selling across the board and no sector has come unscathed today. now let's focus on apple, the tech heavy nasdaq is the worst of the three averages, down 2.3% right now, apple very key. first of all you may remember apple $700 in the middle of september. now hovering around the bear market territory off the highs, and one of their producers over in a nation now saying they're not able to meet the demand, not

meet supply either. as a result it is a loser. back to you. connell: thank you, nicole. dagen: another nor'easter. we are bracing, not just about wind and rain, but snow as well. connell: just what we need. and i don't know if there's a transition into this. dagen: if you have to ride out the storm. connell: colorado, washington state to legalize marijuana for recreational use. the judge is thrilled about this. and we will stay on top of the market down 300 for the stocks. as we see a strength in the dollar, the weakness in the euro.

dagen: it is impossible to dress up this pig today. an ugly selloff across the board, every major market indicator. off by more than 2%, all of your

sectors in the s&p 500 are falling. gold is down. what is up? treasury, safety. is it safe? keep it in cash, keep your money in cash. connell: new york, new jersey still reeling from hurricane sandy. hundreds of thousands of people without power yet. dagen: janice dean has the very latest. how bad will it be. >> everything is vulnerable. because power lines are vulnerable and trees, the coastline and people vulnerable, it will just add insult to injury. getting reports of snow in atlantic city toward new york, jfk reporting snowflakes as well. into southern connecticut and new england. freezing rain or sleet, it'll be

dangerous in some cases, so just prepare, things are crippled in terms of getting home and getting to work. 65 miles per hour, heavy snow for the intersections and coastal flooding and erosion not good news unfortunately for this battered area. dagen: when will it be over? >> friday. everything is so vulnerable, we will see additional power lines down, additional power going out, roads closed off. a bad situation altogether for the very weak coastline. connell: these poor people have already been hit so hard already. what a day.

dagen: and here it is, colorado voting to legalize marijuana for recreational use. 53% of voters saying yes to this measure. we are right on. connell: state o the state of wn doing the same thing. judge andrew napolitano is here. this is our feel-good story of the day. >> a lot of interesting implications. one is political because the legislature in colorado turned ttem down so they went above the heads of their own government. people can't legislature and washington legislature declined to hear it and the people went above the heads. the most interesting thing talking about this is the federal government and the states. the use and possession of marijuana for all purposes, very minor uses, but it is a felony under federal law.

we don't know what they will do, but we know they have a weird, to say it best, track record with medicinal marijuana. you can only get it from a facility licensed by the state. for the california authorization of doctors, those places have been rated by the fed like they raid and opium den in a city where opium is illegal, which is everywhere in the world. they did that in california. in oakland, california. in new jersey they let it flourish and survive, the how to decide what to enforce and whatnot to enforce? connell: a lot of illegal angles are interesting. you are libertarian. last night turned out to be a tough night for republicans. this issue, and issues like if embraced by libertarians, deep

in the republican party on the republican party now maybe more toward these issues to get younger voters? >> if they recognized certain issues can appeal to areas we know that ou are weak, this woud attract young people to the republican party without impairing other values of the republican party spent half. i think it is an attraction. at the decide what is dance for and where it wants to go. the last time the republican party had a libertarian in the mainstream media thought was a little cuckoo, a successful republican candidate and president in era, governor

romney's message was fuddled. doing so many things to so many people that he ended up losing a lot of people. i tell you what, the price of marijuana will go down help and compare the business of the mexican gangs, and that is good. connell: there you go, another side of it. look at the market now. a good freefall. dagen: who better to talk to. connell: he is gloom, doom and gloom. more gloom than anything else from dr. father. dagen: his thoughts on the nexusw 4. is it worth your money?

and new 52-week lows. here are the most of them.

stocks tanking. stocks now kind every 15 minutes. nicole petallides is covering the sell-off. nicole: we have seen all 30 dow components in the red. banc of america, the financials, the energy stocks, everything related to the current administration selling of. bank of america down 5%. the dow jones industrials are

down 300 points and with that move, the sell-off, traders i have been speaking with see a further downside potential for these major averages. no one save in the ninth pullback, that is not the sentiment on wall street. they're seeing more selling below the 1400 mark on the s&p. a quick look at coal stocks. one of many sectors being affected with the election in place and you see names like peabody selling off. >> we talked about apple and google, not the stock about the products, the newest phone is equipped with wireless charging technology but walt mossburg comes on every week to talk about that as a new review of that and he will give it to you now. the net good thing he is here,

walt mossburg of the wall street journal. you don't love it. >> good morning. this says romney won. >> he delivered it pretty well actually. >> i question the fox call according to this. but seriously, it is a good phone. generally this is called a nexus. obviously licenses android to hundreds of other companies. they don't make their own hardware yet although the alone motorola but they do make these very specific models called nexus that are now two tablets. this is the fourth funds they

have done and nexis means in google's world here is the best, purest version of android and everyone else started modeling. this is the nexus 4. when you think of it like that, i thought was a little disappointing. in the past when they have brought these devices out they tended to bring out a huge new release of android. this is just a minor -- it is new but it is a relatively evolutionary release and the hole phone is evolutionary. has a few nice features, but there are some missing things here and what will mention two of them. it does have not 4 g network capability but it is not ltte and that is what i think is the

future and the fastest one and in the united states, going to be dominant, and secondly it only goes up to 16 gigabytes which is where most of the other smart phones start. it cannot be expanded. it does not have like some of the android phone is due, a memory expansion card. >> a lot of people say why get an apple phone or android phone? you get an apples on -- if you are going to buy and android phone there are other options and better options. is that fair? >> that is right. this has some things other phones don't have. the introduce some new features so they have a 360 degree photo feature. the other really good thing is price. google sells these directly and the unlock prices viewers need to understand are typically much

higher than the 199 you usually pay because they don't have a subsidized contract. the unlocked price starts at 299, much lower than usual for an unlocked phone so there are some benefits here, but you are right. my sense of it is it you're going to look for and android phone even though i usually really like the nexus phone, this is ok but you want to look at samsung and some of the others. >> does the of the mark a 100? dagen: i will take that. thank you. great to see you. wall street journal. stocks selling off. sell-off isn't even a big enough for a describe what we are seeing. you can look right there at the loss on the dow. coming up, paul mitchell's founder on what needs to be done

to get back to business and resuscitate the economy. >> twenty-second coming for mother nature. the big story today, this area which has been so hard hit, another storm bursting the recovery efforts on the east coast. more on that. dagen mcdowell talked about treasuries. the yields down to 1.64%. and interesting twist for what is happening in the market. we are back with much more on fox business.

lori: i am lori rothman. wall street facing post-election balloons, stocks plunging in the wake of president obama's reelection as investors shift focus to the fiscal cliff. the dow seeing the biggest intraday drop since june 1st, down 334 points and below 13,000. shares of at&t slipping with the broader market, and to expand wireless broadband. and reducing quarterly dividend by 2.3%. adidas scored a winning a patent dispute with nike. german courts banning sales of the prime running shoe which was introduced in the london olympics.

it infringed the patent for the feature launched in february. that is a look at business from the fox business network giving you the power to prosper.

connell: markets of what is not getting better. obama sell-off, it may, but hard to talk about the market but when you look at particular sections of it, financials, energy stocks are getting hammered today, those could connect to political pressure from the obama administration in a second term. either way down big, across-the-board for stocks. dagen: for more years for president obama in the white house that this victory has less enthusiasm than in 2008. look no further than the stock market. co-founder and chairman of paul mitchell systems joins us from austin, texas. great to see you. do you think the road ahead for the economy and the country is

rough enough to justify this kind of sell-off in the stock market? >> oh boy. i love you out there. i'd just elected this morning 200 businesspeople in austin and one of the best questions i can answer with, the majority of business people voted for romney and now a close election but obama is in office. we will hold back hiring. what do we do now? things going to be totally screwed up. my answer was wait a minute. we the people of the united states of america. if you don't like what the president is doing, the guy you wanted wasn't elected, bombardon the white house with phone calls and letters, bombard his party with letters saying what you don't like about the president. we are still we the people of the united states of america. the reaction to the stock market is obama being elected. people don't have confidence he will reduce the deficit and put america in the right spot. they think we will go toward

socialist things that happen in europe and screwed up england or europe. he can't be that stupid. if he continues along this way he can't do that. he will alienate half of america about america could change. i don't think the president could be that stupid. he will reach across the aisle. people said we pushed obamacare deadlocked the doors at republicans couldn't help with that. what will happen is he has got to come to jesus, got to realize you got to work with the other side. my answer is don't give up on america. some saying we won't hire for while. don't give up on america yet. let's tell the president we the people -- we're still we the people, here is how we feel. we don't like this. dagen: what about your hiring plan with paul mitchell systems and petronis. do your plans and business outlook change for those

businesses based on the one yesterday? >> no they don't. not at all. in the last four years we have hired at paul mitchell, we are hiring and we will continue to hire because we look at it in a different way. we don't like who may army not be an office, not taking the political stance but we are americans and we find ways around things. i started john paul mitchell systems in 1980 with $700 and was very difficult than and we made it. regardless of the political search inflation we the people do things. if you don't agree with him let him know what he should do differently. do what other people don't do. don't give a. a lot of people that want to write a letter or wants to make telephone calls. if you believe this in strongly make a phone call every week to the white house. write a letter every week or e-mail to those you don't agree with and tell why you don't agree with that and want them to change. eventually they will get the message.

i firmly believe so and we the people could still change things no matter who is elected. the axe thank you, always a pleasure. it is better when you hear but we will take you from texas any day of the week. >> america works, peace, love, happiness. connell: let's go back to nicole petallides on the floor of the exchange. nicole: i am not hearing the optimism here. [inaudible] >> up fullback and people think a great buying opportunity. maybe 10% or 20% of people save this is a great buying opportunity but not today. i walk the floor and talk to traders, they see more downside potential particularly since we have broken the 1400 mark on the isn't the 500 and them, the markets, the s&p 500 in particular closes below 1400, that is a bearish sign, talking

about the pressures that face so many industries like coal land energy and financials, these are many industries as the administration takes hold for the next four years. thereunder pressures here. the tech hundreds of thousands people without heat and power after superstores any mother nature bearing down again with another nor'easter set to hit the new york area later this afternoon. connell: we have liz macdonald in staten island, one of the hardest-hit areas, here comes the weather again. >> we are in the heart of the business district less than a mile away, the oceans it's beyond this neighborhood. they have evacuated this narrow road and you see fire department trucks worried about gas leaks. they don't want another breezy point situation with houses exploding. so we come here to joe's lobster which has been running for four

decades and continuing to rebuild even through the nor'easter. i will show you how hot the water came in this building, the water came through the sewage pipe in the plumbing system, up 5 feet. we will show you the watermarks. look at this water mark here. that is how high a water came in joe's lobster house. you can see in this building they have started rebuilding, putting in drywall and trying to get the business back up and running because what is going on is fema has evacuated, got 19,000 people without power in staten island and what the owners of joe's lobster tell me is the only way to get the community back up and running is get the businesses back up and running. we saw that after katrina and hurricane irene so we will give you live updates throughout the day about what is going on in staten island. coastal flood warning is in effect.

the glory evacuating this neighborhood. back to you. >> normally this wouldn't be such a big deal, got to get the work done. thank you. dagen: more on this brutal sell-off, the biggest sell-off we have seen since june. standing by to talk with us. connell: below 13,000. back in a moment on markets now.

connell: market sell-off post-election down 300 plus, the dow below 13,000. we want to bring in mark fatah

in, publisher of what is called the gloom, boom, and doom report. he calls in markets from overseas. he will be calling in from thailand today, but we are down 315 and we will reconnect the line because he is a good person to talk to while we wait and only take a second. here are the numbers for you down 2.4%. we were talking about the fiscal cliff, whether you would see many coming in and out of treasury and people buying treasuries, yields are down today, everything down. dagen: easy to argue the reason you are seeing selling it you look at from a broad market perspective is not because people saying the government won't get the debt under control, you would not seek treasury buying, it is the fact that maybe we go over the cliff little bit and get close, already see business pulling back and becoming self fulfilling, the economy slows and if you think the economy's going to slow down you sell

stocks. connell: mark bobbers with us. what about that idea, the economy slowing down dramatically and what you think of the market reaction to the day after u.s. presidential election? >> not surprise the market is selling off because the market was weak already for a couple of months and we are in a downtrend, mr. obama's economic policies are not very good for economic expansion. businesses, small business men en even medium-sized businesses will be reluctant to hire people. connell: the market is down a little. i didn't know what was going to happen but the reason i would

say we see -- surprise we're down the and the points and the market selling off like crazy is the obama victory shouldn't be a surprise to investors. wouldn't you think some of this would have been priced in. the polls pointed to him winning and he did but we are still seeing a big reaction in financial markets. does that tell you anything about the future? >> i think among people, the election victory or reelection victory of mr. obama, so many friends who are republican, but betting on mr. romney. for some people it is a surprise and people are concerned about increased in capital gain selling shares ahead of the implementation of these. connell: betting markets in

trade, 70% chance of obama victory but you are not the first guest today who said there is a portion of the investment community that was at least holding even though the numbers showed something different that ronny would pull out. he didn't. obama won. that brings us to the year end situation, no matter who was going to be president you have to deal with this fiscal cliff. because it is obama are you worried we go over the cliff? and what does that mean in terms of financial markets? >> in principle i think it makes obama not that bad for reducing the fiscal deficit and continued modernization of treasury bonds rallying, but not good for business so stocks are selling off because the stock market is expecting a hard time for corporate profit and is

essentially economic weakness which is reflected in a strong bond market. i think when i was interviewed two months ago, from the peak, the market will drop 20%. revisit the lows of the june, 1266. >> not optimistic at all but one of the best global investors calling in today from bangkok. we will stay on top of this market sell off. dagen: we sure will. markets now, more ahead. [ male announcer ] the markets keep moving. make sure the news keeps coming

with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it's an all-you-can-eat buffet for all things trading. thinkorswim by td ameritrade. it doesn't just deliver news. it's making news. trade commission free for 60 days, plus get up to $600 when you open an account.

lana look at the dow jones industrials the biggest losers are bank of america and j. p. morgan. they facing pressure from the administration when they are down 5% and they're all down 5%. where to run? we saw with treasurys, rally in treasurys for the ten year it is 1.64%. a deeper punch is likely and a ten year over 1.33%. back to you. dagen: cheryl: thank you. see you in 14 minutes. the dow down 300 points. wall street is showing its dissatisfaction with president

obama's reelection fearing four more years of gridlock and rising costs and more regulation. s&p capital chief equity strategist with me in new york and scott marden, united baez's chief market strategist joins me. i want to start with you because you are one of the people who came on to this program and predicted a ronny rally, buying into that tree rally. are you selling off right now? >> i am probably rebalancing more than anything. we would have a ronny rally that could have been sold. you would have seen them to present to the upside of romney had won but it seems odd to me that the sell-off being totally attributable to the election because to me it was a known thing. a lot polls show obama was going to win. a lot of things that work especially what is going on in your. ecb meeting tomorrow, likely cut rates because as mario draghi pointed out the slowdown is spreading. the election is a way to blame

it. cheryl: we didn't know until last night but we do know, want to look at the s&p and this is your area of expertise. if you look at the s&p 500 we have not seen levels like this since early june and we have to say at this point every sector of the s and p r down. what do you say? >> i agree. i think the market pretty much knew that obama was going to get reelected based on action leading up to in terms of high-yielding stocks being the not compared to low yielding stocks rising in five weeks ahead and we are going to test those levels we should have tested earlier in the sell-off we saw a few weeks and months ago so maybe the 1375 or 1370 level before the market recoups. cheryl: is this a situation we're looking at the next couple months and fearful more than we ever were about gridlock in washington? that goes to the fiscal cliff

issue and many on the street say we need to pay attention and cannot guarantee there will be a deal next year. >> i think fluffier is alive and well today but tomorrow it may not be. we will see a period of significant volatility at the end of the year but volatility is good too because of chances to buy on the dips and that is what people should be doing because gridlock sounds pretty good. the scary thing would be fixing the fiscal cliff right away because that is what is out of the banks. look at goldman sachs cutting gdp. that is where you will be concerned going forward. cheryl: one interesting point, what history teaches about this debate, look at what happened in 2011, the supercommittee failed and when the failure happened we

saw the s&p down 17% in 25 trading days, a huge hit to the s&p. are we facing that again? >> a possibility we could see more of a sell-off. i am calling this the truman/do we redo. in 1948 we saw the s&p decline 10% in the month of november. we ended up recovering a little in december and were up 10% -- cheryl: cold comfort. >> we have to play it out and see whether congress does what logic dictates and if they come to compromise. cheryl: i am curious how you are feeling about financials, biggest losing sectors we are seeing, taking the dow down, going to stick with your financial picks? >> you are still my friend, you tried to get me on this show and i do not like financials and the model is busted. i would run for the hills.

cheryl: i like trying to trick you. that is the fun of having you on the show. what about you? what do you like right now? particularly health care. that was one of the big sectors. >> healthcare doing well. we are seeing the big pharma companies and most people breathing a sigh of relief that president romney will not try to unscramble the health care egg. it is undervalued compared history. cheryl: nice to see you in new york. we welcome you with the nor'easter later this afternoon and scott martin, unbreakable scott martin, see you soon. dennis: mitt romney is sticking with his republican ideals despite the loss. >> the election is over but our principles in door. i believe the principles upon which this nation was founded are the only sure guide to a

resurgent economy and new greatness. like so many of you, paul and i have left everything on the field. we have given our all to this campaign. but our next -- dennis: our next guest says republicans must change. the executive washington editor of the wall street journal, thank you for being with us. we thought the campaign was all about the economy but was the actual outcome about race? >> there will be a lot of discussion among republicans and democrats about what was about and clearly it was about the economy first and foremost but it was also about an obama/democratic coalition that probably proved more durable than people thought. almost certainly proved more durable than some republicans thought which is to save the young voters, hispanics, asians have not gone enough attention, and single women, pretty durable. they all turned out in the same numbers as 2008 and in almost

the same proportion of voting for barack obama. that made the difference. some because of the economy but not enough to make a difference. dennis: romney lost hispanics by 40 points and asians by 50% and blacks by 80%. how much of that because of the job democrats did on message and how much because of the wrong message republicans put out or maybe no message? >> i quote newt gingrich deuce that we have to do a better job talking to minorities. if we were delivering the economic message to minorities in an effective way we would be a 65% majority party. that is not happening. it is not just a message but lack of delivery and messengers that work. that will be the real reconsideration. people will look to people like marco rubio from florida and jeb bush and say give us some instructions. tell us what we're doing wrong because republicans are not going to change what they

relieve. they're republicans for reason the same way democrats are democrats for a reason. should those principles be of greater appeal to hispanics? the answer is probably guess. somehow that is being lost in the debate among other things about immigration. dennis: did mitt romney get hurt by taking a hard line on immigration which does not play well with hispanic voters? >> no doubt that happened. the got pushed to the right or allow himself to get pushed on to the right on emigration and wasn't able to take the lifeline that marco rubio threw him in the general election when he said here is a dream act, a way for young children of illegal immigrants who have gone to school and played by the rules or maybe even in the military to get legal status. couldn't embrace that because he had been pushed too far to the right. those of the issues that will be read debated within the republican party starting today. >> black unemployment rose to 12% to 14%. is this a matter of republican

message or republicans need candidates of color in front of minority voters? >> they have done that and part of this is probably identity politics but part of it is not just the race of the candidate but ability to reach out to people of different ethnic backgrounds and smart republicans are saying to themselves we need to do a better job of that. we don't have to change our message but we need to change our messengers that more than that we need to change the way we are delivering our message. dennis: 90% of the vote in '92, 70% this year. thank you for being with us. nicole: i want to point your attention back to the big board. we have a major sell-off on our hands at this hour. hospital shares are jumping, big insurance names falling. we will be following this throughout the afternoon and also a name being floated as a possible member of mitt romney's

cabinet. what douglas holtz-eakin says the head for the budget battle in the looming fiscal cliff. dennis: colorado and washington state voters approve legal recreational use of marijuana. is taxing part of the solution to fixing the fiscal mess? take a look at oil in the meantime. i put away money. i was 21, so iaid, "hmm, i want to retire at 55." and before you know it, i'm 58 years old. time went by very fast. it goes by too, too fast. ♪ but i would do it again in a heartbeat. [ laughs ] ♪

♪ so, which supeast 4g lte service would yochoose, based on this chart ? don't rush into it, i'm not looking for the fastest answer. obviously verizon. okay, i have a different chart. going that way, does that make a difference ? look at verizon. it's so much more an the oth ones. so what if we just changed the format altogether ? isn't that the exact same thing ? it's pretty clear. still sticking with verizon. verizon. more 4g lte coverage than all other networks combined.

dennis: 15 past the hour let's check stocks. nicole: stock slaughter is a good way to say it. it is all down arrows across the board. dow jones industrials down 314 points and down 300 all day and basically speaking at these levels. no one jumping in saying what a great buying opportunity. people i have been speaking with think it is further to the down side. i can tell you carnival down 1%. surely williams is one of the few with an up arrow. 4 down 3%, exxon down 3%. i can't leave out chevron, that is down almost 3%. just look around on the floor of

the exchange and see mostly down arrows. sherwin-williams is higher. let's look at another name, apple is the key component. everyone watching apple closely. support levels at a 5 month low and more room to the downside according to experts, next support level 528. back to you. cheryl: we will see you soon. the dow down 30 wait but off session lows. a piece of good news. another four years of president obama, democrat led senate and republican-led house. >> i'm looking forward to working with leaders of both parties to meet the challenges we can only solve together, reducing our deficit, reforming our tax code, fixing our immigration system, freeing ourselves from foreign oil. we have work to do. >> the nation is close to the

fiscal cliff. the president may be earnest in his remarks but can we expect congress to come together? joining me is douglas holtz-eakin, director of the congressional budget office. market participants, lot of analystss saying don't think they're going to come to deal so quickly. >> we have a clear set of circumstances. there is an imminent economic danger, raising taxes by $440 billion at the end of the years recipe for recession. and the same cast of characters who failed to come to agreement for quite some time and very little time. there is good reason to be nervous but we did see in 2010 similar circumstances the president said we are not growing very fast and should not be raising taxes and extend everything for two years. there should be a deal that gets us safely to spring of 2013 where they take on the big debt. cheryl: a big piece of it is the concern republicans voice that

they think the fed is soaking inflation that will come sooner rather than later and we will see the same policies under ben bernanke. what do you make of that? is that we are looking at? >> perfectly sensible forecast. the fed moves white coming out of recessions. the fed said clearly it is worried about downside risk. they have a hard job. unwinding what they have done is harder than things in the past and they can only do as fast as we get the fiscal house in order. cheryl: i want to show you the debt forecast. if you look at federal spending, look at the debt forecast in the fiscal cliff, two different ways for the economy, we can go into another recession, spending goes down or the other forecast is we had that higher and things are fixed. where is your take? >> the crucial thing about without a recession is we won't

do it real deficit reduction if we are recession. get to the spring save land and then there will have to be a big budget deal and we know what they look like. republicans have said we are not raising taxes unless you fix in thailand and democrats have said we are not touching entitlements into you raise taxes. now is the moment. the president said both sides have to give some and there has to be principled compromise to take a forward. cheryl: do you think in some way the president will take on some of the ideas that were put out by mitt romney during the election? >> if he wants to be successful he has to bend. he likes to blame republicans in the house but that is a look durrell politics. it is time to develop a legacy. what will be accomplished in a second term? needs republicans and democrats to pass legislation. you can do on one party's ideas. cheryl: gdp? what is your forecast? >> of don't go over the fiscal cliff and wander along at something like 2% rapid next year with a stronger housing market by the end of the year.

cheryl: good to see you. i know you have had as much sleep as i have so appreciate you coming on. you are still standing and doing great. dennis: what the post-election stock. the dow rising 130 points and plunging 300 today, dangerous nor'easter heading to the east coast. live at the weather center and a check on staten island, people getting their lives back and there sandy and bracing for more damage. first a look at currencies. de a♪

♪ you can help others along the way. ♪ ♪ a portion of every bottle that they sell goes to fight ♪

♪ breast cancer and i think that's swell. ♪ ♪ the more you take, the more they'll pay, ♪ ♪ so make them write a big check today. ♪ ♪ and if you're feeling a little slow, ♪ ♪ then 5-hour energy will help you go. ♪ ♪ so buy a bottle of pink lemonade and ♪ ♪ you can help fight breast cancer today. ♪ you have to dig a little. fidelity's etf market tracker shows you the big picture

on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend. i'm stephen hett of fidelity investments. the etf market tracker is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea.

dennis: the dow below the 13,000 mark. stocks down 295 points. the dow and the nasdaq below 3,000, the s&p below the 1400 support level. you can call this an obama sell-off, greek fear sell-off. any way you counted is the big selloff but someone not surprised by something that happened in the past 24 hours. cheryl: we will watch the markets but also watching this,

another round of wild weather, setting in sight on the ravaged northeast coast. here is the latest forecast. how is it looking? >> right now the storm is intensifying off the coast of new jersey. you see precipitation backing westward and that is where the system diverts from sandy. the storm system is still sitting offshore so it is cold enough to get some snow. it is the wind that will hold the key. the winds will turn orderly as the system progresses northward and we are looking at potential for more significant coastal flooding and beach erosion along the immediate coast, winds could test 50 to 60 miles per hour of a 50 mile per hour wind gusts are more likely. keep in mind water levels running two to three feet above normal. a lot across the coastal areas have been eroded due to sandy so that leaves extra accessible to the coastal flooding and beach

erosion. wind gusts 50 to 60 m.p.h. as winds turn more northerly. snow along the coast. accumulation looking very light for the big cities. not far inland looking at potential of three to six inches into parts of new england. cheryl: hank you very much. we will prepare. dennis: let head down to liz macdonald in staten island, new york, one of the areas hit hardest by hurricane sandy and prepping for a storm with no name. liz: that is right. we are in the heart of the business district of staten island less than a mile away sits the ocean and what happened here was a 6-foot wall of ocean waves came up and swamped the business, swamped hall houses, evacuation going, steady stream of traffic. let me set the scene. traffic lights are in to read we going now. they have fire trucks coming in. there is concern about gas leaks

in their houses. another breed the point situation where they lose their houses but are they taking into the businesses that are trying to do a rebuild of their businesses they known for decades. all about the reclamation of their most prized possession, the family business in their families -- joe has been around four decades. we will go in right now to talk to kenny and what you will see here is what up to the building you see a watermark that will show you how high the water came in the building and you can see and hear what happened as the water came through the plumbing and basically damaged the entire building. we will talk to kenny montalbano. look at that. how are you holding up? >> hope it doesn't make matters worse.

we have a hole in the roof as a is. taking out 12 out of here already. down to the suds on walls, a lot of work. >> how long have you been here? >> sincerely 80s. >> since tuesday. >> water lines of a wall. >> the hasn't seen his wife. >> wife or children. one of my sons came to help. >> thank you for your time. we are going to give you live updates throughout the day. there is a coastal flood warning in effect and fema has evacuated. the neighborhood behind us has evacuated as well. dennis: thanks very much. cheryl: we continue to look at the sell-off. we are below the 300 mark but at one point we were down 2.9% on the dow, largest hindered a percentage drop we have seen since november 21st, 2011. big day for the dow. after the election can two parties get together to fix the

economy? doesn't look like investors are betting on that news. dennis: with sandy gone and another storm coming, gas lines, we are live at the cme with what it is costing you. take a look at the day's s&p losers, 52 week lows. it's a new day. if you're a man with low testosterone, you should know that axiron is here. the only underarm treatment for low t. that's right, the one you apply to the underarm. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acnen women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and meditions. do not use if you have prostate or breast cancer.

serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com.

nicole: i am nicole petallides live on the floor of the new york stock exchange. every 15 minutes with stocks now. take a look at the major market averages. dow jones industrial has been down over 300 points all day long. down 305 points. we had all 30 dow components the dow jones industrial with down arrows. that means everything from jobs to energy to financials all coming under pressure with names like bank of america, goldman sachs and jpmorgan.

down 5%. another dow component is at&t. this is not related to the election. they have unveiled $14 billion infrastructure plan over the next three years in order for customers to have higher speed connections. this is obviously some spending where you can see down arrows for at&t. dennis: thank you very much, nicole. john boehner says the message looks for a compromise. adding if there is a mandate, it is for both parties to find common ground and take steps together to help our economy grow and create jobs which is critical to solving our death. is congress up to the task? let's start with you, christian. the republicans realize the democrats have won two out of three, it is time to cave in and

give him? >> even though i support the democrats, i will not gloat. i support speaker boehner's message, but it will be prolonged, and not so certain things will change. the house is more conservative than it was in this past congress, so it is hard to see how they will be a path for compromise unless you are weiner leads in a very significant way. dennis: binky passerby mature without a single republican vote. if you think obama is in a mood to work with the other side? >> griswold want to say i agree with what christian said. obamacare was passed i believe with no votes from the republican side and i don't see an incentive for president obama to do anything because he has everything going his way now, he can push through whatever he wants. the parties are so divided on

these issues, i don't see it happening. dennis: christian, what is the one biggest concession republicans can make to move this thing forward? if republicans agreed to the tax hike on the rich, still spending the budget by more than a trillion dollars, would that be enough to get the democrats coming in any happier? >> it is not necessarily about tax increases on the rich, it is the whole idea of revenue raising needs to be a part of the dogs approached the deficit reduction and fixing our fiscal shift. the fact is not taken off the table by speaker john boehner makes it impossible to have any sort of a real approach to deficit reduction, let alone a bipartisan compound. >> i always felt it was more of a symbol than anything else.

you tell us, what is the one big concession democrats can make to get republicans moving forward? >> you're right, taxing the rich will hardly dent the problem. speaker john boehner, the republicans proposed won't go along with tax increases, you have to have some cuts in spending. what is going to have to have kids they will have to come to agreement, republicans will push for no tax increases unless there are cuts in spending. they will require cuts in spending for every tax dollar. dennis: how come we're spending $1.1 trillion more than we will take in this fiscal year? >> we have a lot to go on with that. we have produced significant cuts in spending. the fact of the matter is ways to increase revenue and to invest in job, that is why the

republicans have to move a little bit. cheryl: dreaming now from los angeles. 250 grand is not that much, voters decided to tax themselves even more. what happened last night. speak what was a big night for governor romney and a painful one for those who are already bearing the brunt of california's spending habits. about half of the voters do not pay state income taxes, raise taxes on those who already do. if we pay state bills and for

the teachers who unions bankroll prop 30 up to 30%. taxpayers earning $250,000 per year. dubbed the millionaire's tax by brown. telling voters he cut the school year by three weeks unless they pass the tax. 90% of the revenue of the $6 billion per year comes from those tax on the wealthy who claim they don't pay their fair share. they pay upwards of 70% of the state income tax representing 3% of the state population. cheryl: it is retroactive, so now those that will be tax in california is for this year, so now they have to all scramble with their accountants to figure out what they can buy and sell.

i am sorry, but you really want to give $50 billion bailout to the state legislature of california who have already spent way too much. >> will it hurt the state? only so people can move. people have said maybe they go to nevada or not. that may hold true for people in capital gains, but they will not go anywhere. the franchise will go back to them. $77,000 per year, by the way in new taxes for millionaires. cheryl: a fascinating story. governor brown did a victory lap. thank you. dennis: stocks are in a tailspin. the postelection selloff: many on wall street really continuing.

cheryl: and also, this is also hyped dreams coming true in colorado, washington. the controversial decision to legalize recreational marijuana. as we go to break, take a look at the 10-year treasury.

>> i'm robert gray with a fox business brief. stocks firmly in the red. a day after president obama won reelection, the three major indices are sliding entrances of higher taxes and the fiscal cliff. euro zone debt crisis also in focus me more troubles for ford europe operations. the ceo says europe's fiscal situation means very volatile. they're looking to reduce capacity in the region. exxonmobil has informed the iraqi government it wants out of the west oil project according to a senior iraqi official. they're starting contracts with others to sell their oil. that is the latest from the fox business network to give you the power to prosper. i turned 65 last week. i'm getting married. planning a lif there are ris, sure. but, there's no reward without it.

i want to be prepared for the long haul. i see a world bursting with opportunities. india, china, brazil, ishares, small-caps, large-caps, ishares. industrials. low cost. every dollar counts. ishares. income. dividends. bonds. i like bonds. ishares. commodities. diversification. choices. my own ideas. ishares. i want to use the same stuff the big guys use. ishares. 9 out of 10 large, professional investors choose ishares for their etfs. introducinthe ishares core, etfs for the heart of your portfolio. taefficient and low cost building blocks to help you keep more of what you earn. call your advisor. visit ishares.com. ishares. yeah, ishares. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. cheryl: here is what we are seeing, calling it the morning and the afternoon after, the

market is selling off. every sector is to the downside. lot of big dividend paying stocks 52-week lows, princes of economic policies out of washington and also we were down 369 points. the nasdaq, s&p selling off as well. dennis: dividend tax rate goes up, and old is the song after early gains and president obama's reelection. here are the moves you should be making right now. sandra smith has the trade. cheryl: down goes stocks, up goes gold. a few dollars right now on the intraday basis quite volatile. going straight up the session, and then fell and went negative oon the session. i just got off the phone. everybody wondering why we get back into negative territory with the yellow metal. this was a lot of investors

trying to shore up the losses in the stock market as prices plunged. i wanted to do this for you, put up gola gold against the s&p 50n the session. how they tend to move in opposite directions of each other. here is a one-yea one year chart paints the picture for you. also says a lot of tax planning by folks expected going into gold and silver. if i go back to that screen, you will see it is not just gold, it is also silver prices. really interesting movement at gold. backing of the fact while we were higher with gold, it is now lower because of those losses in the stock market. investors have future of the losses somehow. they're going to gold to do that. cheryl: the board is acting much nicer to you today. somebody gave it a talking to you overnight.

sandra: we are best friends now. dennis: thank you, sandra. cheryl: every 15 minutes, stocks now. okay, nicole, looking at the stocks. nicole: dow jones industrials down 369 points. we're down just under the 300-point mark. i just checked all 30 names on the dow, all down arrows across the board whether it is energy or financials, all with down arrows. the fear index remains to the upside, but a slight improvement on the market. interesting as we take a look, the sector is coming under pressure. the ones doing well or the hospital care, stocks higher payment in the obama administration good news into office for the next four years, and you can see found a group for you here that was all other

rows really key. 1400 mark that these traders are watching. dennis: all right, thanks, nicole. the aftermath of sandy has a real effect on week gasoline prices. at the cme, phil. >> you bet they did. we had gasoline futures down 9.77. about $0.10 per gallon the fact gasoline demand fell a whopping 8% last week is not that much of a surprise. even more than some of the analysts expected. heating oil absolutely crushed down $0.09 per gallon as well. demand for heating oil was apparent. include jet fuel and heating oil didn't happen this way down 15%

from the same week a year ago. it is a significant amount of demand way in the marketplace. crude prices getting crushed as well. we had $8 range in oil prices. yesterday rallied on the rumors obama would win. everybody was excited and the reality started to set in maybe the command would not be as strong economic growth, fiscal cliff, even more pain. back to you. cheryl: we're getting breaking news. harry reid speaking this hour on what to do with the impending fiscal cliff fall investment election. peter barnes listening in safely back in washington right now. >> harry reid is talking about working to find solutions to big problems out there like a fiscae fiscal cliff trying to find common ground with republicans,

kind of. >> this is no time for excuse anyway. we can achieve really big things when we work together. that is what the american people said last night in a big way. i will do everything within my power to be as much as possible. >> gridlock could easily continue. speaker ben will be making remarks on the fiscal cliff later this afternoon. cheryl: already coming out today as well making lots of comments. thank you very much. plunging deeper and deeper, stocks continuing right now. postelection selloff down 290.

dennis: party on, dudes. legalizing the use of marijuana. we become a chronic. recreational. we have a guest who want tax the heck out of it and make a fortune and fix the fiscal mess at the same time.

cheryl: we're in the middle of a big selloff. the biggest sector right now, the weakest sector is a financial sector. wall street issue notes saying they are concerned about dodd-frank. that could be negative for the big banks. down 292.

we have not been below 13,000 like this since august 2. the nasdaq and s&p are lower as well. dennis: this is part of high noon, so let's light them up. joining us is founder of centennial marijuana with an advocate of the legalized pot initiative just passed in colorado. thank you for being with us. first from a consumer standpoint, what is the first time you can go to a denver broncos game and smoke in public without fear of the police? >> that will not happen, ever. you cannot smoke marijuana in public, that is part of the new law. this is a very private thing they're trying to discourage displays of it, encouraging kids to smoke by example. they want to keep this as low-key as possible. you cannot do this in public. dennis: from a business

standpoint. >> the first time you can legally consume, cultivate and possess them attend amounts of marijuana would be when the governor certifies the election, within 30 days of today. dennis: what do you think will be the first move by businesses that want to get legitimate sector here? >> have idled my business. as a conflict with federal tax law that prevents you from running these businesses without being dishonest. i simply can't go there, have other interests in life. it forces people out of the business. the federal laws will have to change. and maybe this is the beginning of some serious conversation on the way the laws are structured. you will have to ask. dennis: so you basically see this going nowhere because the federal government has to say you can't do this, colorado, they will intervene in washington, colorado.

>> the behavior will be legal right away within 30 days. we'll take another half a year or longer for us to implement the commercial side, that is when the feds become interested. they would have to arrest people. dennis: we will check back in with you later to see how it goes. >> thank you for thinking of me. dennis: okay. cheryl: the dow down around 13,000, first time since august 2. many managers predicting more doom and gloom. dennis: fox business has you covered. lori rothman and tracy byrnes are up next. [ male announcer ] this is steve.

he loves risk. but whether he's climbing everest, scubdiving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade. >> hi, everyone, i'm tracy byrnes. down on the dow right now. lori: a sharp selloff under way. looking