percent. we are bracing for gridlock. president obama claims another four years. europe also in play. decision day with protesters taking to the streets on the new morning about the euro zone debt crisis. tracy: despite the ballooning deficit, president obama winning a decisive electoral victory. any chance things in washington will actually change now? or does it give the president a big old mandate? lori: a record 20 million people taking to twitter to speak out about the election. coming up, the most popular tweet of all time. the new york stock exchange and nicole petallides. broad-based selloff, most sectors in the red today, what are the traders saying?

nicole: they're looking at the key levels, the s&p 500 below 1400, a very technical level that we have followed. traders say tha said that is nod sign. you think maybe this is a buying opportunity with the traders i have been talking to say it has further downside potential. sector after sector coming under pressure for the next four years. financials, energies and the likes. also a name making some headlines on their own. when you're looking at boeing, couple things to keep in mind, worked on the whole plan telling employees they aim to cut costs by $1.6 billion from 2013 through 2015. also eliminating jobs as well while they're doing that.

aerospace defense also coming under pressure. tracy: keeping an eye on all of these things for sure. not just the election rattling investors in the u.s. europe moving to the front burner once again. we talked about this yesterday being the cause of all this volatility in the u.s. market. warning the economic slowdown hitting germany, the euro's own partisan healthiest economy. investors wait for a vote on another unpopular austerity package,,deep spending cuts so they can get the next round of eight. the measures are expected to pass by a narrow marrin. already showing their anger, all shut down for a second day.

police using tear gas against the demonstrators. tracy: and clearly we are seeing that the market. rolling over when the market closed. part of it is down. now that the election day has ds come and gone and the government rings virtually unchanged, congress should be able to work with differences. peter barnes has brought himself back to washington. it is like déjà vu all over again, isn't it? >> yeah. we just heard from democratic leader harry reid in a press conference in the last hour. he was sounding conciliatory kind of. >> everything within my power to be as conciliatory as possible. i want to work together. but i want everyone to also understand you can't push us around.

>> the fact is the election did not change the balance of power in washington, so gridlock could easily continue. in fact he said tax revenue from wealthier taxpayers have to be part of a fix ffr the fiscal cliff. he also spoke to speaker boehner this morning will be making separate remarks on fiscal cliff later today and will call for common ground. last night boehner said the voter's decision to keep republicans in charge of the house made clear there is no mandate for raising tax rates. tracy: we shall see. you wake up this morning and feel like all that and we're exactly where we started. lori: with that president obama remains in the white house. senate controlled by democrats in the house by republicans, nothing changes in d.c. with $6 billion spent on campaigns this year, nearly $700 million

more than the previous record, so was it all a waste? former deputy assistant to president george w. bush, so welcome to you. what you think of his exorbitant campaign spending and was it all worth it? >> we're no different today than we were yesterday. one thing is for sure, this president is a president today and there is no honeymoon because they'll have to wait for new administration to get on its feet. how do we stop from going over it? the time is now, the president rules in 2009 out of ideology instead of reality and reality finally fit into republicans and democrats. lori: how come reality didn't

set in on the polls? the family financial situation is worse today than it was four years ago, that is pretty real to me, yet how come everybody has flipped the other switch? >> the president made a compelling argument that seem to stop with the american people, that is inherited a mess. but who's running for office he had the answer to everything that ails us did sadly as president he didn't have the answers he thought he had. he inherited a mess on the economy but he did not make it better. he doubled down on health care instead of fixing that which is broken. the american people sent a message yesterday, fix that which is broken, and they better do it. lori: why does the market rally today? we saw it, combined them with the fact taxes are going up in a sluggish economy because of the

obama victory, so again it seems like this major disconnect about the polls, people are so unhappy, why did they go this direction? >> the markets are not responding because the markets want results and are driven by confidencee that is why as though clinton pointed out early on there is a trillion dollars on the sidelines because people don't have the confidence to invest. i believe it is going to happen, a bipartisan agreement is made sooner rather than later. the president needs to go to work and roll up his sleeves if he acted in negotiations the market will respond they will not respond just because of the election, they want to see results. tracy: this election wasn't it a personality campaign at the end of the day? people like barack obama better

than mitt romney. >> i think they gave him the benefit of the doubt, that is what you saw yesterday. there's a lot of doubt in the numbers we have seen. barack obama won less of the vote than he won last time. this is not a mandate by any stretch, but it is a call for vice president ship and dealmaking. if the president can't make a deal here, he will have a terrible legacy and it will not improve. lori: had romney won wha when we the selloff today? speak i think the confidence would come back because romney is seen as a businessman and a man of results, he has been results in the government when he ran massachusetts. that would have been momentary if romney was not able in january we would have had to wait until january for those results to even manifest themselves.

speech were long road to the holidays regardless of who is in the office. though having the worst intraday drop in a year. we will go to the cme with more bad news. lori: and which tweet was top? it was not just in beaver.

tracy: welcome back. the dow down almost 262 points right now. ecb president earlier said he anticipates weakness in the european economy for the foreseeable future. europe basically rolls over their focus back on the fiscal cliff at home. president obama elected h you could see a lot of the sectors that have to do with policies. we will see a dividend tax now. new lows on many new stocks, consolidated edison, all unfortunately hitting new lows. people expecting lackluster economic growth to extend for a long time. what is the word at the cme group? >> not only from hurricane

sandy, but the potential demand coming from this nor'easter. add to that long-term policies and energy from president obama it'll make energy in interesting future. as you produce less and consume less, now the focus is on consumption. a look at oil today, slamming it today down three and a half dollars on a barrel of oil. that is an incredible move it even more incredible considering the fact oil rallied initially when the exit polls started to show traders might win the election. we are seeing prices get slammed. $0.10 per gallon, heating oil down 8.98. very interesting inventory report. huge demands, it sent lower on gasoline, 13% lower on diesel and that could get worse next week. back to you. lori: in the middle east more bullish for energy prices?

>> it is, the focus is on the demand side of the equation. if europe is going to slow down, the u.s. will slow down, the middle east isn't going to pop up until something actually happens. a lot of supply even if we get a cut off of supply. lori: thank you. the dow down 270 points. we have to go to nicole petallides on the floor of the new york stock exchange. everything is taking a hit today. looking at apple in particular, but we are seeing it across the board everybody getting wiped out. speak out when you take a look across the board the dow, nasdaq and s&p are all selling off and these are losses we have been seeing a number of times. all 30 dow components are lower.

from sector to sector, energy, financial. look at apple, why they ha wideo many. in the bear market territory off of its highs back in september, everybody hoping for 800 or 900. today is traded at 561 and change. one of the manufacturers over in asia having a hard time keeping up with apple demand and quality. >> at the low end today we saw a deficit of 369 points, 2.79%. check the volatility index, the

vix up 5.18.5. a 100-point move that wil woulde you a lot of volatility. let's talk about election, tweets overtaking twitter. making it the most retreated political event in u.s. history. the president tweet of "four more years" was the most retweeted of all time. the list keeps growing. currently 700,000 retweeted. tracy: kim kardashian, a girl wanted to have a maximum number of followers, she was dying, only wanted to be followed on

twitter, kim kardashian said everybody should follow her. wall street told you so, and so did charlie gasparino. now, what are they saying about the fiscal cliff? lori: we saw the pictures of the civil unrest going on in greece. people are flocking out of the euro into the dollar, a separate trade from all the problems the u.s. equity markets. back with more after this.

>> 22 minutes past the hour, this is your fox news minutes. u.s. geological survey said a strong earthquake has hit the pacific coast of guatemala.

it rocked the capital and shook buildings as far away as mexico city and el salvador. airlines are taking no chances ahead of the second major storm in the new york area just over a week. already suspended most of the service in and out of the region. american airlines will shut down services at 3:00 p.m. today. other major airlines are asking passengers to rebuild their flights for a later day. and there is one more sign that new york is getting back to normal after hurricane sandy. the holland tunnel is now open to all traffic after being closed today due to super storm cindy. those are your news headlines at this hour. now back to tracy and lori. tracy: everybody can stay away and go through the holland tunnel.

the markets areepricing in an obama victory and they were right, charlie gasparino the first to report it, so where should you put your money now and what should you do with the fiscal cliff? >> i think people underestimate just how much smarts rs investment banks decide what you saw people trading on a romney victory. the analytics at the firms, what we were first reporting fox business on monday. they were predicting a huge electoral college and easy electoral college victory for obama and like goldman sachs, jpmorgan, they all have their own numbers crunchers and predicted it would be over early, which is kind of counter to a lot of stuff we were talking about around here. it sounded like i got it right.

you would not believe the comments i got on twitter, facebook. i am just a messenger here sometimes. here is the message now. going back two or three weeks ago, a market strategist over at new age, we constructed an obama portfolio, and we constructed a fiscal cliff or folio, which i think every investor has to think about now and prepare for. president obama wins, democrats pick up seats in the senate to embolden the democrats and republicans control the house and tea party guys breathing down their throat not to compromise. you can get that. i believe that is what happened last night. they picked up a seat in the senate, republicans held the health for president obama won a fairly easy electoral college victory. easier in the popular vote. we're going to get, there's a

good chance you get a fiscal cliff, so what do you do with this. you have clearly defensive. lori: look at the move on the 10-year period speak of this is what we said, buy treasuries because there's a flight to safety if you think there is a fiscal cliff. what else do you buy? resistance stocks like food, alcohol and guess what, guns. put up a chart of a gun manufacturer. i hear this talk of the gun manufacturers are up. these are extreme cases, this is what you buy in the extreme scenario. i should point out sometimes cooler heads to prevail. i would point out, guess who don't have a chart of the gun

manufacturers. there we go. tracy: ask and you shall receive. >> up 8%. lori: we have been getting threats of gun laws for four years, do you think he will do that now? >> why do you buy smith & wesson? people think it is armageddon, they buy guns. they buy gun stocks. these are extreme scenarios. i want to point out cooler heads could prevail, but our prediction is that obama wins candidly in the electoral college. the dems pick up seats, and you have an ornery republican conservative base which is what you have right now. i can tell you that by my twitter page. i wrote a column last night i said forget about what any

pundits are saying. just look at this logically, there is no way. very few paths that romney could win by. he would not believe the response i got from folks. republican base is energized. that is why you can get this, this is possible, so prepare, this is one way to do it. maybe you should short it. these are the things you probably should buy. tracy: all right, we have been talking about it, the dollar is lower. president obama wins, the key central banks. we are joined with your postelection investment plans. lori: voters approved legal recreational use of marijuana, charlie. is taxing weed the solution to

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>> i'm nicole petallides live on the floor of the new york stock exchange. we have you covered every 15 minutes on the fox business network we'll look at stocks now. look at the dow jones industrials. we have improved. we were down 369 points earlier today. still down arrows across the board. the dow jones losing just over 2%. we're seeing financials coming under pressure. energy coming under pressure. apple 20% off its all-time high. these are some factors coming in after the administration now takes another four years in office. we're seeing names on the move. hospital stocks, for example,

are doing very well under the next four years. more people will have insurance. we'll be able to pay at the hospitals. that's why you see the group doing very well, right? when you see community health up 7%, hca up 8%. on the other side of the coin health insurers are taking a hit. many are down three, 5%, whatever one you look at the back to you. tracy: nicole. we'll see you in 15 minutes. gold retreating after news of president obama's re-election and word on further monetary stimulus. sandra smith has detailed in today's trade. that is the upshot right, the money will keep flowing. >> that is what happened in the overnight. gold prices shot higher out of the gate this morning. prices skyrocketed. i pulled out my best artwork here. then we saw the big selloff and everybody scratched their head and said what is going on. i talked to rbc capital markets, because the stock

market plunges triple digits, people have to shore up their losses and sell the early gold trade. we're down to $714 a troy ounce. there is still belief if we have obama in for another term that means quantitative easing continues for another term. keep in mind, this is leading to selloff in silver. both those prices are coming down. i want to leave you off with this, tracy and lori. gold stock prices not falling -- following the overall trend. some up, some down. etfs are down. the market trying to find its way. inflation a concern as well. back to you guys. lori: thank you, sandra. if today's selloff is the beginning of something more, what should you do? perhaps is it a buying opportunity? joining me heritage capital president more where we should invest the next four years. welcome to you, paul. >> hi, lori. lori: listening to sandra's trade on gold and how people are trying to shore up profits and uncertainty in

equities market, i'm actually thinking about gold here and feeling more bullish on it. what do you think? especially with lord knows what is come around the bend? >> if you look at obama-romney, obama is bullish gold and romney is bearish gold for the obvious reasons of spending and cutting but there are other things at play. i do think gold is going up. probably not going to $5,000 an ounce anytime soon. i think on balance, especially if you buy gold closer to 1600, 1625 i think it is a safer play. i think in the short term maybe we have more weakness. i think gold is a good piece of the portfolio, not for next year but the year after and year after that. lori: fair point. what is going on with the equities market? we're down 265 on the dow. we made up already 100 points. volatility back in play. where do you see the session short term here wrapping up? >> first, i thought, as they announced obama won the futures were down about a

percent and they rallied all the way, you know, to 5:00 in the morning. when i woke up at 6:00 we were up, you know, a little bit on the s&p futures. then when draghi came out shortly thereafter, that is when the markets really unraveled. i would attribute today's selloff more to draghi than obama because the bank stocks are being hit hard. and the discretionary stocks are, are on a relative basis pretty good. lori: i don't know, europe fear is getting old though. i have to be honest with you. this has been priced in for some years at this point. why is it rearing its ugly head today per your outlook right on the, in the wake of the aftermath of a disappointing presidential election at least by wall street's view? >> you know, it's amazing and this is such a trite comment but only matters when it matters and when it doesn't really matters. markets ebb and flow which niece is deemed real appropriate for the day. lori: good point.

>> that's where we are. i think on balance the s&p's probably going to pull back, i don't know, 1375, to 199 -- 1390 over next week to 10 days. i think we'll form a bottom there and begin the traditional year-end rally. short term we see some weakness. then i think you have an opportunity to rally for a few weeks to a few months. then i'm really, first i was concerned anyway no matter who is president. pick your pain. do you want austerity? do you want tax increases? do you want a little of both? i think we'll have recession in 13 or 14. it will be mild. really, have to thread the needle with your portfolio. it is not time to load the boat on any one outcome. you have to have a little gold. you have to have some treasurys and certainly equity sectors involved. lori: that is how people are playing the market today. thanks, paul. >> thank you. tracy: that is good news. president obama's second term promises now, he pledged to roll back the bush tax cuts. so what does that mean? another four years for you

and your tax bill? lori: right. we've got a sneak-peek at treasurys with charlie. they are piling in snapping up the security of government paper. look at 10-year note, the yield dropping back to 1.63% as people buy up the paper. out the curve the 30-year duration yielding 2.82%. down nine basis points. investors around the globe snapping up the perceived security of u.s. government debt. we're back with more after this.

>> falling the below the 13,000 level today, now down 261 points. well the focus has shifted to the looming fiscal cliff in the wake of president obama's re-election. moody's is again talking about a possible downgrade to the u.s. credit rating. moody's says it will wait until the 2013 budget negotiations are completed before taking a action. although the ratings firm says failure to reach an agreement will not mean an automatic downgrade. boeing is reportedly planning a major restructuring to the defense division. that includes cutting management jobs by 30% from 2010 levels. the report says the official word will come later today. that is the latest from the fox business network, giving you the power to prosper

tracy: it is not often a presidential candidate wins the white house by promising a big ol' tax increase, how about that a way to win votes. president obama's tax fairness seemed to be a crucial part of the campaign and helped him win a second term last night. what is the question for those of us not really keen on the tax hike? what will your taxes look like come april? we have the coleader of the national tax department for ernst & young, my former alma mater and former assistant secretary of the treasury department under president obama joins us now. the prospects for comprehensive tax reform with this divided congress are pretty much slim to none right now, right? >> i would say we have the elections now. we know who the players are going to be. we know the positions laid out in the campaign. there will be a process towards tax reform. i'm optimistic we'll see

some advance on this whether we have a deal we'll wait and see. tracy: the biggest part people are worried about the fiscal cliff. bush tax cuts. 100 million americans will be affected. estate tax. president obama wants to increase capital gains and there is $250,000 break point for families out there. are those concerns again? >> those are concerns. fiscal cliff, you're right, that is the big issue that has to be faced now. we have a very short period of time before we'll go over the cliff. there has to be compromise. there does have to be some coming together on these issues. tracy: do you think 250,000 could be one of compromises or is that a done deal? >> i don't think anything is done at this point. we have the elections. we have players now. the election will have consequences. i don't think any position is locked in. tracy: we're seeing dividend stocks sell off. we're talking about sending dividend tax to ordinary income tax rate. that affect as slew of people, seniors in particular. >> that's right. another thing to keep in mind, recall as part of the

health care act there is additional 3.8% tax on dividends for high earners. that looks like is coming into place no matter what happens with the fiscal cliff. tracy: high earners, estate tax coming back looking around 45%. what should people do now between basically and end of the year? >> you have to monitor what is happening. there will be fast moving developments the you have to stay on top of them. will you sell stocks to lock into gains with lower rates? dividends could be becoming. these are issues people look to. tracy: people are really concerned about april. april, though, really is, your 2011 rates. april is not our concern. our concern will be april 2014, really, right? >> one thing to keep in mind? that will be next year issue if not addressed, so-called alternative minimum tax patch expired. that is not in place this year. if that is not extended by end of the year or returns in april, that will hit

returns filed in april 201. tracy: one of the things we heard with the fiscal cliff dealing with spending and tax heights is too much, boggles their little brains. maybe they deal with spending first because the tax stuff they can always make retroactive to jan 1. do you seeing it like that happening? >> i see a two step process. i do think we'll get past the fiscal cliff, the consequences are so dire, people will come together. we'll get a temporary extension and see addressing of tax-and-spending issues. but i do think we'll see those together. i don't know that either side will move on either of those without part of that package addressing the other. tracy: yeah, could be, and could affect the payroll tax too. we could all see our payroll checks adjusted january and february as well. >> that's exactly right. that is part of the discussion but not necessarily going to be addressed. we have not seen a groundswell of support extending 2% cut. tracy: we have not seen a grounds swell of support for much. michael, thanks for being here. >> thanks for having me.

tracy: adds to the uncertainty. lori: figuring out taxes is already so difficult. doesn't seem like it will get anymore simplified. tracy: no, sorry. lori: on that upbeat note, stocks deep in selloff mode. more good news. we're off the lows of the day by 100 points. let's go to nicole petallides on the floor of the new york stock exchange. nicole, seems maybe too early to say. stocks are stablizing at these declines? what are you hearing? >> we've seen all down arrows across the board. traders saying we're in this trading range here. we've broken key support levels. the fact we were below the 1400 mark on the s&p 500, whether or not we were closing, below that level, if we were to close below that level, that certainly would not be good news traders said on wall street. also you see financials down. you've seen energy down. coal stocks. you've seen insurers coming under pressure. dividend-paying stocks. all this is obviously that we have taken out uncertainty past four years and we know what to expect. you are seeing reaction here

on wall street. i also want to look here at at&t which is on its own, on its own headlines today. just talking about a $14 billion infrastructure plan that they're putting in over the next few years. there will be some layoffs. there will be some consolidation. this is all to make at&t better and faster and high connection activity in a -- connectivity in a fast manner. that is why they are spending. that obviously will hit their books. back to you. lori: thank you so much, nicole. tracy: this is a good story. lori: all day for this story. tracy: just to say this, high times in colorado and washington. as the state's many about the first to legalize the recreational use of marijuana. this is where it gets good. washington residents over 21 will be allowed to have up to an ounce of weed on them if bought at a licensed retailer. lori: is that a lot? tracy: i don't know. either way they could have it on them. those in colorado can do the same and grow up to six plants. i didn't have a green thumb

but reconsider. colorado's mayor warning residents not to break out the cheetoes and the goldfish yet. swear. lori: he did not. tracy: i did. marijuana possession is still a federal offense. oregon has a similar measure on the ballot but it failed. lori: tax it. we need revenues, right? tracy: that's what i say. make it legal and tax the bejesus out of it. we're broke. everyone iser chooing. see? lori: live pictures from philadelphia right now. weather outside is frightful. headed toward hard hit new york and new jersey even as the area recover to struggle from hurricane sandy. if i lose my power again, watch out. tracy: you and me both. lori: hundreds of thousands without power. the latest forecast ahead. tracy: the rough day on wall street. there are a few winners. there are always in the market. news corporation, our fine parent, up 1.89%. netflix today because everyone is home renting

movies, up 1.4%. we'll be right back.

tracy: the northeast bracing for another storm. oh, it is here. actually wet snow in jersey i hear. this one brings high winds and we're already getting snow in some areas. fox news meteorologist janice dean, the weather machine has the latest on the track. janice, i really hope to say it will go ought to sea. >> i wish that was the case. all these areas are so vulnerable. vulnerable to storm surge. vulnerable to rain. vulnerable to snow. the coastal areas are weak right now with the battering storm sandy we saw a week and a half ago. this will add insult to injury. where we're seeing worst weather across the jersey

shore again. this is not only rain and wind. this is snow, accumulating snow that is moving in towards new york city, long island, up towards new england. some snow totals are quite impressive. one of our computer models indicating over six inches in some of these spots. impacts heading into the overnight, rain heavy at times. some will mix along the coastline. we could see freezing rain, sleet. it will be a nasty ride home, a nasty commute ride home. winds up to 65 miles an hour. heavy know in the interior mountains. we'll have to head in the forecast next several hours. it is now casting instead of forecasting. look at eight inches for trenton, new jersey. five inches for new york city. up towards connecticut, 4 1/2 inches. this is one of our computer models did. we could see impressive snow totals for this time of year. winter weather advisories up

along the coast battered by hurricane sandy up towards new england. unfortunately this is bad situation. if it was run of i will in northeaster without sandy yeah we could deal with it. we dealt with it with it before. everything is fragile. including people without homes, people without power. temperatures below freezing tonight. that is the other big problem people have been without power for a week and a half in some of these areas. tracy: janice dean. everyone's patience is thin. what happened with snow before christmas? this happened last year too? lori: economic bright spot for ski resorts. i'll trying. tracy: that is a reach. lori: a reach. lori: i said it was desperate. areas for east coast trying to recovery from hurricane sandy, that nor'easter is last thing they need according to janice's now cast. liz macdonald is live from staten island for us. give us a sense how people are feeling today, if relief and recovery is making any progress or they're just

battening down the hatches all over again? >> that's right, lori. we're a mile away from the ocean. we're in the heart of the business district on staten island. snow is coming down, big flakes. we're outside a small business that has been here since the 1980s for three decades. it is a family-owned business. tell you something, lori and tracy. look at this, you see here, a six foot wave took out the window of this is about. you will see a water mark right inside here right behind the door where the water stayed flooded in this business right up here about five feet. so what we're talking about here, is the pool and patio. we'll talk to kenny. his father, charlie is right back there too. kenny, how is it going for you? what is your reaction to the nor'easter? >> i'm concerned. we don't need anymore water now. poor people out there with no homes and they're out in the snow. >> kenny, what do you make of fema? >> so far fema is the passing the buck.

telling us to go to banks for small business loans. the banks are not giving any money. >> you've been here since last tuesday? >> i haven't seen my family, my wife, my children. i need a tetanus shot. >> sewage way came up here. fema has evacuated. neighborhood behind kenny's business has evacuated too. the businesses are rebuilding. working through the nor'easter to bring the communities back and nor'easter back. back to you, lori and tracy. tracy: god love them. >> good luck, everybody. tracy: coming up, stocks taking a beating on new economic fears. we have the biggest losers next. [ male announcer ] this is steve.

he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, ojumping 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 her 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. tracy: welcome back. i'm tracy byrnes. the dow is down 267 points. lori: that is 100 points better than it was. tracy: that's true. lori: volatility on the

rise. the dow was down 2%, a broad based selloff. good afternoon, once again. i'm lori rothman. stocks falling across the board because of new fears about the fiscal cliff, the economy rand europe. now of course the presidential election is behind us. it is the dow's worst day in 2012. in fact the worst day in about a year. tracy: as president obama wins another four years in the white house. what will it mean for you and economic recovery struggling to gain traction? lori: economic one-two punch in the northeast. nor'easter bringing out you toerful winds, rain and snow to an area still coping with the aftermath of superstorm sandy. tracy: some people still don't have power in our area. lori: thousands and thousands. tracy: get to the selloff. we go to nicole petallides on the floor of the new york stock exchange. as we do every 15 minutes, nicole we get an election and big european news they will not see any growth for a while, the market taking a

beating, right? >> that's right. the dollar is stronger today. markets are coming under pressure. i saw a headline going by about greece and calling for unit ahead of austerity vote. there are a lot of balls in the air. but the number one factor here on wall street today is clearly that the current administration stays in office for the next four years. what does that mean? pressure on the financials. more regulation and such. looking at energy and coal coming under pressure. looking at insurers that are getting hit hard. here is a look at at dow chart over time. but today, we were down nearly 370 points. we certainly will gain some of those loss, right? pare the losses. but at this point down nearly 265 points where you've seen all 10 sectors we follow so closely with down arrows. back to you. tracy: thanks, nicole. we'll certainly see you in 15 minutes. just as nicole was reporting europe's crisis rearing its ugly head. taking down one of the balls in the air as she put it so

eloquently. mario drawinggy says the economic slowdown is hurting germany which is the largest economy. this as the european commission slashed its forecast growth. and recession is deeper than estimated and growth will be slower than expected. on top of all that, greece's parliament is expected to pass another round of deep spending cuts so the country can get a new round of financial aid. but the cuts are not going over well as you can imagine. nationwide protests are in their second day. thousands of people are filling the streets. police have started to use their tear gas against protesters, civil unrest could be just a beat away. so election day for us here in the u.s. in the rear view mirror. our government is barely changed. will congress be able to work out the differences? let's go to peter barnes joining us in washington with the day after. peter? >> hey, lori. potential for gridlock remains a live and well in washington. the president staying in the white house. republicans keeping control of the house of representatives.

democrats keeping control of the senate. so on tackling the biggest issue facing washington right now, the looming fist call -- fiscal cliff, democratic leader harry reid was sinning -- singing familiar tunes for higher taxes on wealthy americans. >> well-have a surtax of people making more than one million dollars a year would have a pay a surtax of .3 of 1%. people who are making more than a million dollars a year, the vast, vast majority of them are happy to pay that. only place that people disagree are republicans in congress. >> but reid did try it sound conciliatory today. he pointed out he spoke to speaker boehner this morning trying to work better together. boehner will be making remarks on the fiscal cliff issue later today himself. he will call for common ground. but last night boehner said the voters decision to keep republicans in charge of the house made clear there is no

mandate for raising tax rates. lori? lori: thank you, peter barnes. we shall see. tracy: let's get more on the market and stocks. all 10 s&p sectors are down, snapping back that two-day rally for the major market guages. joining us brian belski, with bmo capital markets. brian, i thought your notes were really interesting. you basically said we'll see all the gains we'll see for the year in the s&p, already up almost 14% year-to-date. however you say the year after an election, generally a good year. is that true? >> yes it is, on average, you typically see a 7% return for plus one year after the election. unfortunately only see about a 3 1/2% return in the election year. given the fact that as of before today we were up 14%, we're clearly not up 14% anymore. tracy: right. >> that is one of the reason we fear the market was ahead of that self. all that great election analysis aside i for one

we're past the election. now we can get back to business. that is the whole structure of the note, from a fundamental perspective near term we feared the market was a bit ahead of itself. our target for the s&p is 1425. but 1575 next year. the bottom line is, that from an asset base, if you look at the united states stock market as an asset, we believe it is the strongest and most stable asset in the world, period. that's why you've seen european stocks underperform and, emerging market stocks underperform. and why u.s. stocks have outperformed the world this year. tracy: because we are the least bad in the room so to speak? >> you know, if europe and everything else wasn't dwog on, god we would look really horrible. >> think of this. because of stability and consistency of u.s. companies we believe that consternation going on in europe, say if germany really is slowing down,

where is that order flow going to come? it will come back to u.s. companies and north american companies in particular. so we're big believers in the whole theme of the manufacturing renaissance coming back to the u.s. it is not about a weak currency. it is about a more stable currency. we think that is a major theme that will help technology companies and industrial companies in particular for the next three to five years. tracy: is your theme reliant on bipartisan support in congress, or is it hoping we have this brick wall for the next four years? >> well the funny thing is, that i believe and we believe in our work that politicians are given way too much credit. the politicians are --. tracy: we don't give them that much credit, sir. >> politicians, as i said in the very first page of my note, very first page of the note last night was, politicians benefit and they get hurt by the cycle. and the cycle clearly has been improving. tough to kick out an incumbent president if stocks are up double-digit

percentages. tough to kick out an incumbent president if gdp is solidified. if you have to kick out a incumbent president if jobs are slowly starting to come back. it is nowhere near where the recovery should be based on where we are historically but positive is positive. so we think that train has left the station and will benefit u.s. stocks. with respect to the fiscal cliff --. tracy: but quickly, sir, we have to go. can we really thank ben bernanke because of this re-election? because of ben bernanke and his monetary policies and infusion of liquidity that is why the market is up? that's why you're saying then the president was reelected. >> ben bernanke in monetary policy can help for the wealth effect because stocks are up. but monetary policy has really done nothing to add jobs. tracy: no, agreed. >> to get things going. so you add jobs through tax incentives and through pure organic growth. not by keeping money cheap. this is wealth effect type of situation. at the end of the day, remember, we in america vote

our pocketbook and our pocketbook feel as little better with stocks being up 15%. tracy: i guess. i don't know, maybe that is the rationale for yesterday. brian bell city, thanks so much for bmo capital markets. lori: you can not credit the president with the market rally. tracy: ben bernanke. lori: your policy, wealth effect drove people to riskier assets and higher return equity markets. for the administration to take credit for it, brian's point, got to raise that issue. tracy: glad followed up with ben bernanke thank you party. lori: looks like at least he will keep his job for the time-being. we'll have much more market selloff, what is driving it, behind it, the dow down 252. about 100 points off the worst levels session. next how gold is trading with this economic fear. tracy: people in new york and new jersey having to flee their homes the second time in two weeks. we have another storm bearing down. the latest forecast we'll

have ahead. first as we do every day at this time of day, look how oil is trading as we head out to break. wow, phil flynn mentioned earlier, selling off, down $3.896. $84.86 a barrel. hopefully we see that at the pump. tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong.

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the dow is down 255, off the worst levels of session which was about a decline of 69 points. -- 369 points. broad based decline. all 10 s&p sectors are in the red led by energy and cyclical financials. that is among the weakest shares today. so as investors are running for the exits from the stock market they're being flocking into the relative security of u.s. government debt. hopefully we can show you a 10-year note. people piling in, pushing down the 12 points on the 10-year down to 1.63%. interesting the sectors that were more favorable to mitt romney among also leading this decline but some of the sectors favorable to obama, health care, hospitals, just to name a few are among a couple of winners today. with that we go to nicole petallides live on the floor of the new york stock exchange, as we do every 15 minutes for more of the market update. nicole. >> that's right. as you look at the stocks, dow jones industrials are down 254 points.

at our low point we were down 369 poonts. as we should note right around this time, we look at volume, volume shows a lot of conviction to the selling. the volume in the 2:00 p.m. hour is basically 33% above the one-month average. it basically tells you that everybody, wants to sell, gotten in here. it shows conviction to this selloff. now we're looking at our key less, like 1400 on the s&p 500. this is what we're looking at. also as you noted we're seeing selloff from sector to sector. financials, energy, technology, industrials, inincluding aerospace and defense. that inbrings me to boeing which will consolidate defense units. closing some facilities over in california. we've seen the name coming under pressure. all the energy stocks that we follow closely, 43 of those are down. majority of the financial stocks have down arrows. bank of america, down 4.5%.

industrials coming under pressure and tech names coming under pressure. apple off the all-time high. we're seeing serious selling. and volume shows conviction with the selloff. back to you. lori: thank you, nicole. we'll check back with you as always in 15 minutes. tracy: we're keeping a close eye on the market losses all hour. we have coal stocks as everyone has been mentioning also getting hammered after president obama's re-election. one energy analyst will share his energy outlook next. lori: look how the dollar is faring right now. global news out of europe. you saw all the unrests and protests against renewed austerity measures in greece. you have much, much stronger dollar versus the euro today. despite a lack of conviction in u.s. markets. secular trade on the u.s. dollar. back with more after this [ male announcer ] do you have the legal protection you ed?

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>> 19 minutes past the hour i'm uma pemmaraju with your fox news minute. the head of iran's judiciary reacting to president obama's re-election condemning sanctions imposed. western nations imposed stiff sanctions against iran in an effort to curb its nuclear program. senate majority leader harry reid says he does not expect to raise the government's debt limit until 2013. lawmakers have less than two

months to save the country from the fiscal cliff. $600 billion hike in taxes and deep spending cuts set to go into effect at the end of the year. new hampshire is making history as the state's newly-elected representative, carol share shea-porter and senators kelly ayotte, to form the first-ever congressional delegation. the granite state elected a female governor last night. that is the fox news minute. back to tracy. tracy: uma pemmaraju, thank you very much. >> you're welcome. lori: speaking of all girls, here is three of us. you have got gold hovering near the flat line after hitting two week highs earlier today on news of course of president obama's re-election and expectations of more money, more money, more money. sandra smith with the details in today's trade. that is what it is all about, isn't it, sandra? >> that is what is was all about. you saw gold, back into positive territory. but we got huge surge in gold and precious metal prices overnight after the election was won by

president obama and into this morning. intraday chart. we saw it actually fall below. gold is back up a little bit. seeing volatility. and originally, based on expectations that with president obama serving another term, that we could possibly see more quantitative easing easing by the fed. that would be bad for the u.s. dollar. good for gold prices. then all the investors saw the plunge in the stock market, had to shore up losses and cash somehow. selling gold. that is why we have volatility today. tax planning purposes i'm hearing. this is reason why a lot of folks were buying gold early this morning. they were worried about their taxes going up. they were trying to hedge their bets that way. gold, remember it hit a 11-month high after the third round of quantitative easing. it sold off some. may return back to the 18, $1900 levels. one other area we're

watching, real interesting trade going on. folks trying to figure out what the general direction of gold stocks will be, if you see higher gold prices we wwuld see higher gold stock prices. not the case today. in fact we're looking at newmont mining, guys, hitting a nearly a 52-week low in today's session. so really a mixed up trade and one we'll see play out for the rest of the year. back to you guys. tracy: sandra smith, we'll certainly be watching this. thank you, girl. lori: well the selloff today, energy sector is among the biggest decline being sectors. coal stocks in particular, obviously romney was a proponent of the industry the check that out, peabody energy, alpha natural, all gapping way lower. you have arch coal, walter energy, down almost in double digits. arch coal for sure off 1%. what does four more years of president became mean? kevin book, clear view energy partners. thanks so much for joining us. >> good afternoon.

lori: is this right, romney didn't pick up coal states like ohio, virginia, pennsylvania? >> just what was going on in those states wasn't about energy. those states are big coal producers but the one most adversely affected by the obama administration policies is west virginia. romney did win it. look at history of democrats ere there is probably sentiment came across because of opposition to obama's policies. lori: what is the future for the coal industry now? >> boy, the problem with the coal industry they're getting it on the supply and demand side. on the supply side, you had direct impact to the mine mouth, eastern coals particularly face higher cost from regulation from epa now that is not going away. on the west coast you have a different problem. you're seeing it in some of those numbers. the future western coal market is exports to asia. 150 million tons a year export capacity is dependent on two things, local regulation and also federal support. obama administration, four more years, that means that could be slowed down a lot. lori: how is the rise of the natural gas industry and fracking, really explosion

of this industry impacting coal? >> it had a big impact on the demand side. i would caution here a little bit, the changes you get from regulation have mostly happened already because of price sensitivity on the part of generators. there is about 4 billion cubic feet of day of gas being used down in the power sector out offy would be used if you turned off all the coal plants you will turn off in 2016. we're 80% of the way to that switch. lori: given the steep declines today, do you see any buying opportunities? which coal stocks are healthiest? >> we don't pick stocks at our firm but i would say as a sector it is not the sector you want to pick. you have global economic headwinds. you have significant exposure on western and eastern, probably best to stay away from coal stocks for a little while. lori: what are your thoughts, since i have a little extra time with you, kevin the overall energy policy here going forward? >> perhaps underappreciated the fact there is administrative effort and regulatory effort that has been largely on hold. epa is coming out of its

cage. for the first two years of the administration especially. you expect to see a lot of activism, effort to move ahead with greenhouse gas raeglations of existing coal-fired power plants, ahead to move with potentially refinerry greenhouse gas emissions. you're looking resumption of 2009 agenda. i don't think a lot of people expect that because the administration is selling centrist position to try to get reelected. lori: kevin book, clear view energy partners, not a stock-picker but with the plays nonetheless. thank you, sir. >> thank you very much. tracy: here is news. gas prices fell again overnight. aaa national average for unleaded $3.46 a gallon. that is down 36 cents a month ago but up a nickel from this time last year. aaa predicts prices will fall to $3.10, no way, or $3.30 by the end of the year. we have in the seen that in what i feel like forever. lori: i was going to say forever.

relief at gas prices at pump, heating i will especially with the northeast, pummeling with the storm. tracy: winter is coming. we'll need it. on deck the dow suffering worst intraday point and percentage loss in a year. we'll get trader reaction live from the new york stock exchange. lori: we've been talking about all day, seems like for weeks, mother nature punishing the new york region again today. another massive storm. look at the satellite. foreboding. latest forecast how hard hit staten island preparing for this blow. heavy, heavy volume. 20% more at this time of day than we usually see. tenet health care, no surprise as the obamacare lives on after the election. back with more after this.

lori: stocks stil stock still i, but off about 100 points off so session lows. nicole petallides at the floor of the new york stock exchange to check on stocks as the we do every 15 minutes. nicole: let's talk about the major market averages. up about 100 points off the lows. the truth is we're seeing serious selling with heavy volume. what do you think? >> i think the investment community sees europe part parto o. kohring here, notice was going on. nicole: we see a lot of energy

stocks, tech stocks, financials all coming under pressure. does this mean it is down for the next four years? where are the good points? >> i cannot point out the good points immediately. that dean said, listen, the index has been set obama in. we saw the momentum short covering and what we're seeing right now is the hangover of lake okay, spent $2 billion on an inevitable outcome in the economy is no better and we have seen no improvement. people talk about an agenda. every business is to see his economic agenda, but we have not even seen a budget. the wide sweeping changes from the current administration, i think that is a mistake.

nicole: we better lower our expectations, is what you are saying. not too much good news on wall street. tracy: keep them low enough, eventually somebody will jump on them. we will see you in 15 minutes. lori: we just can't get a break. a little over a week after super storm sandy, the northeast racing for a nor'easter. it is here. rain, snow, wind 60 miles per hour and a storm surge two to 3 feet of water could hit already battered coastal areas. mayor bloomberg has ordered all parks and beaches shut down for at least 24 hours. airlines aren't taking any chances, united suspended service at new york city three local airports and american airlines will join them in 30 minutes.

let's get more on how bad this could shape up to be. >> at this point it is just kind of winding up, we are not seeing the intent arm that we will see in the next several hours and the overnight. the commute for the battered regions will be really tough heading home this evening. a mix of rain, sleet, freezing rain and snow on top of the very battered jersey shoreline. unfortunately. that will continue throughout the next couple of hours and into the overnight and we could see easily 6 inches plus. forecasting snow was one of the hardest things to do. we will bring i you the very latest buttock but extending tod new york city. up toward new england where we are getting reports of over 2 inches in parts of connecticut still flying toward manchester. this will continue in the overnight as i mentioned should

be out of here by thursday, but in the meantime wind gusts 60 miles per hour. storm surge as well. the reason this is so important is this area is no fragile, trees, branches, powerline, people without power, they will remain without power and folks who just got their power back on could lose it. back to you. tracy: you're talking to me, i just got my power back. lori: how are the storm weary people in the northeas northeasg with the bad weather? >> the wind is picking up and so is the snow over the last 24 hours. in staten island, this is a business that has been in staten

island since the 1980s. you can see right here essentially the storm surge and ocean waves came up around the corner of this block, came around and hit this loathing and blew it out. a 6-foot storm surge wave blew out the front window of this building. right behind this business the neighborhood has evacuated, fema has evacuated, coastal flood warnings in effect, wind warnings in effect. dyou haven't evacuated yet, why? >> we have not been told to evacuate. >> you continue to build through the nor'easter. >> we have no option. if we don't open, nobody gets paid. >> what you think of seamless reaction? >> they're not helping the small

business. we're taking money out of our own pockets and hopefully the government will help. >> and you also sold christmas trees in front of the building? >> years aao. thank god we didn't do it this year, we would be wiped out. >> we will be bringing you live updates the rest of the afternoon, but it is getting pretty bad out here. lori: elizabeth macdonald, you and everybody else hang in there. oil closing for the day. what a move. down $84.44, that is a loss of about 5%. phil flynn at the cme, oil was too high to buy. fiscal policy: situation in europe continues to deteriorate. on the plus side prices at the pump continue to decline. coming up stocks under heavy pressure tracking the market's every move.

tracy: president obama's victory guarantee that nothing can stop the health care law from going into effect. fox news senior editing manager dr. manny alvarez is here. tracy: and let's take a look at how the 30-year treasuries are faring. still down, 12 basis points. 1.63%. in your 30-year down 10 basis points. the dow down 282 points. we will be right back.

>> i am robert gray wit robert r fox business brief. stocks were plunging in the wake of obama's reelection as they shift their focus to the looming fiscal cliff. with a focus on the fiscal cliff, moody's is talking about a possible downgrade to the u.s. credit rating. moody's will wait until he 2013 budget negotiations are completed before taking action. rating firms affiliates reach an agreement will not mean an automatic downgrade. the white house says president obama reached out to congressional leaders on both sides of the aisle after his reelection. the president reiterated his commitment to put the interest of the american people first. that is the latest from the fox business network giving you the power to prosper.

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tracy: president obama's health care law has survived two near-death experiences and there is little chance it will be appealed. what does it mean for the future of your health care cost? dr. manny alvarez joins us now with his medical dollars report. good to see you. really the only stocks are the health care stocks. >> stop talking about it, it is the new dawn, the way we will practice medicine for the future, don't want to hear about any more debates, that is it, we have to work with it. fundamentally what will happen is health care in five years from now will look a lot different. not right away because it has to

evolve, but 30, 40 million people are going to go to the 36 changes, they will be insured. our production is three fundamental ways things will be changed. access to care. in markets like new york you may not realize it but other markets whether or not a patient can get the doctor that they wanted when they want it, where they want it will be different, you won't be able to do that, you will be assigned to centers of excellence or clinics, and whoever happens to be working there because doctors are going to get out of private practices, it will be importan impossible n private practice. access to care will change. a big issue, right now we have at least 200,000 doctors in the u.s., lots of nurses,

technicians and we are not building any new hospitals. we have not been building hospitals lately so those things have to be addressed. lori: at what point in time you have to intersect the regular doctor bills will get hired? >> medical inflation will continue at the 10% range because it is impossible at the level we practice right now. the government wants us to practice preventative care, cut back on screening and things like that, which makes a lot of sense. they want an mri. they want a cat scan. now we have to reeducate the public so for the short-term one, two years out the cost of health care will increase and your bills will go higher.

tracy: that means more preventative care, right? that is a good thing. >> that is the european style, get prevention, get vaccinations and screening tools and hopefully less people will get sick. the market is people get sick, get treated, special services. that is why it is so costly, but at the end of the day we have to change the way people sort of think of their health care, they can't go to the er anymore just to get checked out and they have a headache because that will be impossible to maintain. lori: thank you, dr. manny. could one of the worlds leading business newspapers be up for sale for a bargain? 1.60 yen dollars. rumors are buzzing and dennis kneale has the story. >> a riddle, what is black and pink and red all over? it is the famed and beloved

financial times. now it is up for sale. at least that is what burke reports, and bloomberg says that lumbered itself may be one of the bidders. the owner, self rival of numbered says it ain't so. doesn't stop us from speculating on what they might fetch on the block. circulation of the print version down 31%. being offset by online subscribers, combined up 10% in readers since '08. 10 times operating earnings are higher, but that would be twice the value of a newspaper companies in the u.s. only 8% of revenue, the sale seems inevitable relying on educational businesses, online services, the economist magazine

going along with it and bloomberg figures maybe even an asian billionaire might bid for it. where is rupert murdoch when you need him? the latest story by the exit of the ceo and the arrival of her successor. every new ceo wants to put his own print on the company. but don't let on that. pearson is "not in the habit of responding to rumors, speculation or report, however this particular bloomberg story is wrong." tracy: dennis kneale, thank you very much. lori: we're just hearing barclays is downgrading the forecast to 1325 from 1395 because a political climate. that's the dumps nicole as we do every 15 minutes for more market update. nicole: i am surprised to hear that. the market selling off right on the heels of the election now

and president obama and his administration is staying on for another four years. there are lots of long faces in wall street. they were hoping it was better the other way. the big picture, concerned about taxes, concern about dividend paying stocks, the taxes they have to pay on that. you are seeing indices teen affected directly. financials and energy and health care. so many industries with down arrows based on this revelation. let's take a look at some names, names hitting 52-week lows including apollo, you traders ae looking at key technical questions as we are watching the s&p 500 below 1400, not a great sign. maybe a short-term negative, but if we stay below these levels it pushes up any kind of rally. seasonally we usually try to get

a pop. not to you. tracy: all right, coming up america votes for the status quo basically. it is déjà vu all over again. the all-star panel is here to dissect the results. all coming up next. lori: there are winners on the nasdaq. netflix. watching movies. up 2%. news corp. beating the earnings report. people snapping up shares. on the downside, many more losers than winners. the dow itself down 286, we're back after this. [ male announcer ] how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.?

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tracy: with president obama staying in the white house, republicans keeping control the houss, democrats onto the senate. just like yesterday, same as today. so what can we expect over the next four years, will lawmakers be able to reach across the aisle with an epiphany that happens between yesterday and today? or are we looking at a second term of the status quo? both fox news contributors join us, both have very distinct views of what happened last night, but i will tell you my theory. the president wants this election with welfare checks. and that is what people were thinking, they want the money to keep coming and so as a result keep the person that gives them out in. >> i wrote a whole book about this and laid ou i don't presida and the far left,

president obama, this is not your father or grandfather's democratic party. this is a different ball of wax, very radical branch of democratic party. mr. dealt with three main objectives. expand government as fast as possible, the objective was to expand government as fast as possible and the ultimate objective is to create a permanent democratic voting majority to get to your point. what we saw was president obama and the far left had enormous success getting us there and it almost looks like it were not already at that tipping point it almost looks like he has gotten us there. they're opposed to what it is all about. >> i am not surprised we have a different view. when they ask the exit polls if you want a smaller government for a bigger government, 53-41 they said they want a smaller government, they do. they don't want no government. that romney didn't have a

message, he did not have an inclusive message close to hispanics and blacks in a way to give them confidence there was something other than independence. tracy: there' that is a problemh the overall g.o.p. likability from hispanics, blacks and women in general. >> that is absolutely right. it is a specific attribute of the branch. what are they offering? the offer wasn't there, and that is the problem. >> look, it is a very tough thing to counter because i attribute so much of this to president obama for obvious reasons on the far left but it didn't originate with him. this has been going on for decades and the republicans didn't counter the very emotional left-wing argument. grandma being thrown off a cliff in a wheelchair, paul ryan look-alike and who wants grandpa to be eating dog food and the rest of it. republicans always argue with facts and statistics and the

debt and unemployment rate. what we need to do is talk to people more in terms of progrowth economic policies, about rectifying the situation. when you're going through demographic groups for so long for decades have bought into those emotional left-wing arguments, it is a challenge. tracy: will the president come to the center, do you think? >> i hope he will, i pray he will, i fear he will not. we needed on both sides, to think they look at it, certainly not in a lame duck. tracy: on that note, we love you anyway. come back. lori: look at the market reaction to the outcome of the election. a huge, sharp deep selloff. the dow down 283 points, both 100 points better than where we were earlier today. a broad-based selloff. the leading losers, energy, financials, nobody happy about

higher taxes and lackluster economy. that is the new normal. unbelievable that is where we are. more after this. male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couplof kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade.

liz: good afternoon everybody. i'm liz claman. it is the last hour of trading. this is countdown to the closing bell. we're beginning right now. what is this? is this an election hangover or fiscal cliff fear? either way markets are in pretty rough shape after last night's election. for the dow jones industrials first intraday dip below 13,000 since september 4th and at session lows the dow was down about 369 points. right now we can see we have come off that low. we're down about 265. not much. but a lot could happen in this next hour. at its lows of the session the s&p 500 was down 40 points. we're down about 28 points