to get tough with the congress. the commomeantime a message in . telling us what is next. no incentive to improve. new york governor says the lack of competition in the utility industry led to a post sandy disaster. and when is all this going to end? frustrated drivers want some answers. we will see if they get any today. we have stocks every 15 minutes. sandra smith after new york stock exchange with a little bit of green today. sandra: a little bit of bounce back but not much of one after the selloff post election the last two days. the dow up about 17 points. green arrows across the board. gold is up, oil is up, getting a little bit of a bounce in the markets selling off after the

election. this stock not getting a bounce back. jcpenney down in today's sessions. a 3% loss for the company after a narrower than expected loss for the quarter. sales missed estimates getting hit hard today, the number for r worst performer in the s&p 500. that turnaround not working, still looking at the results. connell: as the market has told him, this fiscal cliff is a big deal. rich edson with what we can expect from their later. >> we can expect the president to address economic growth and the deficit. we have the fiscal cliff negotiations beginning on capitol hill. the congressional budget office

saying they will shave half a percentage point off of gdp next week if congress doesn't address the tax increases and spending cuts scheduled to hit the economy for this current fiscal year taking us all the way to september of next year. as for what the president's position will be, we're still waiting for word from the president. other democrats have been discussing where they are on this, the president won reelection, they expanded their majority in the senate, and therefore voters have token, they want tax increases on wealthier americans to pay for other priorities and reduce the deficit. hearing from some republicans as well, john boehner scheduled to speak a short while from now. he says he's open to discussing. you're seeing these decisions, is not unlike what we saw before the election. talking an overall rewrite of

the tax system, democrats looking for tax rate increases on families earning more than $250,000 per year. back to you. connell: fox news contributor and author of our favorite titled book. i guess we can modify it to say with what happened later today. do you think he goes to the middle or dig into the left? >> there were so many bizarre things that happened over the tuesday night election results by the american people chose non-satisfactory status quo. you will see those results going into another round of discussions over spending. connell: i was saying this fiscal cliff is a big deal and the ceo outlined it for us, to go off the cliff, this automatic

spending cuts, tax hikes go into effect, the economy essentially back in recession. the president has to know that, right? does he say let's try out something like simpson-bowls. and i said really? why wouldn't it be, we heard some of the quotes basically don't make a deal so quick. stand your ground, mr. president, don't give in to threats, no deal is better than a bad deal. >> that is pressure from the far left. that is who obama is, he is on the far left. i don't think he will come to the center, there's nothing in his background or history or character to suggest a compromise or conciliation or moderation. connell: you go to who you really are, you don't have to cater to the group. at the same time you will be

remembered for what you left behind, for the economy as it was. they won't remember the details, liberals don't remember bill clinton is moving to the center betraying them. these we're doing with a dit one. he is not bill clinton, not a trying day later, he is an ideologue. connell: one example would be to let those tax cuts, could have dug into that. >> that was two years ago, republicans gained control of congress and he had reelection hanging over his head. four years ago he told the american people the transformation of the nation. we are not saying conservative is what he means by fundamental transportation is moving the united states away from free-market capitalism toward a government, european type of

socialism. when you say why wouldn't he make a deal with someone, he has been in no interest for that. they are moving america and the middle class is so critical into more and more government dependency so they look at this and think this is a success. connell: i think you will see more simpson-bowls. >> what he will announce, no longer the millionaire cut off, we will be raising taxes on anybody who makes $200,000 or more. lowering the bar and moving further to the left. connell: this is a big deal for the markets as well. it could be bad news for stocks which have already had a rough week. s&p putting out investment saying there's a 50% chance the u.s. goes over this cliff.

enough to shake up the market, if that is what people are estimating. but chief investment strategist. up a little bit today. this whole idea of mixing politics and economics in the market and everything else, you have to try to put odds on this if you're an investor. are they going to come up with a deal. you think it is about right, or higher or lower than that? >> i think this is the problem. investors used to handicapping the economy, stocks, margins, it is very hard to second-guess what the people in washington are going to do. look at this uncertainty. what has come across is that they will eventually have a deal, but the risk going into the fiscal cliff are probably greater than the market has discounted. that is why you are seeing selling this week. connell: this interesting people got something wrong about the election this week.

we had odds at minimum 60% or more. they came and shocked at the market sold off as if this is a big surprise the president was reelected. the market hadn't done a great job. it is now more of a guessing game, isn't it? >> i think it is. the election was not a surprise, completely in line with the polls. the challenge going forward is used up after yourself is all of this discounted them? i still can't find a single economist but expects the economy to contract in q1. you will probably have a negative print in q1. we will have a last-minute compromise.

connell: they are assuming people's actions are assuming they get it done, that is very interesting. give us one investment idea. >> i will give you one. one thing you want to worry about is economy. raise the recession. one way to fully inflate against that is with larger companies, medicare companies driving more earnings overseas hold up better in the domestic economy slows in small to mid-cap companies. connell: good stuff, as always. this has been a good week for data and analytics and all that. it has just been a bad week for people acting on it, but thanks a lot, good to see you. new york, new york city and long island rationing gasoline. right here in the northeast drivers want to know when this

madness will end. a live report on that. and the move to legalize pot, colorado and washington opened up new money for the tourism industry. we will get into that. "markets now," let's take a look at one of the big markets we're always monitoring. crude oil, mid-80s, stocks are coming back a little bit after that. and we will be coming back a little bit on "markets now." looking for a better place to put your ca? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank,

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connell: breaking news as we come back in the top story of the day. fox business has just learned the white house is reaching out to bank executives. charlie gasparino has the news calling in. >> the devil is always in the details. here's what we know after president obama reelected, it was definitely reaching out. white house officials and bank executives with the white house saying the president is serious about dealing with the deficit and the fiscal cliff and he sees it as a legacy issue. this was not, these were not acrimonious calls because banks leaned towards mitt romney in a big way.

maybe there is, but i am telling you replacing two bank executives and labor coming out of the white house. these were senior people inside obama's administration telling the bank executives yes, we are as you know, the devil is always in the details. who is going to be treasury secretary? that will go a long way determining how the fiscal cliff deficit issue is sorted out. odds-on favorite is the chief of staff, people say the simpson-bowls tax reform plan is still in the running. if he gets it, you will see an interesting negotiation. bowls is probably the most favored democrat in the house

and someone republicans feel is serious about a comprehensive tax reform. if the president goes bowls, two interesting. if he goes with jack lew, who is outside favorite, is much more partisan liberal. that adds another dynamic. the conversations that are going on right now. they are not acrimonious and the obama administration to say we are serious about dealing with the deficit and the fiscal cliff, we're not just talking about raising taxes, we're talking about it in the long-term. now we just have to wait for the details. connell: basically what you are saying, sounds like we will see a president that sounds more simpson-bowls like, moving more to the middle. >> i don't know. if you're asking me to get

inside barack obama's brain, that is another discussion. i am just telling you, one way to go like facebook is to report what he is saying and then look at the details like this. he is serious about the deficit. talking between bank executives and white house executives, these are not acrimonious talks going on. the banks are really worried about the fiscal cliff. obviously if you start massive spending, if you took out deficit, defense spending out of that, you only have 1.3%. for the third quarter. this is a big thing. corporate america is worried about it. the white house, i will tell you, they're not playing the

class warfare game in rhetoric. the devil is in the details. that will be a huge detail. connell: great reporting as always. later today from the white hou white house. they grossly outdated power grid. still pretty bad with the northeast in the dark again and the governor of new york is pointing the finger at competition making it a big business story. and the speaker of the house speaking out on the fiscal cliff. that is the story today. first, look at how currencies are faring against the dollar. continuing on "markets now."

>> 22 minutes past the hour. seven members of seal team six punished for allegedly releasing classified information via

giving secret videogame maker electronic arts to make the game "medal of honor: war fighter" realistic. syrian president assad denying the uprising against him as a civil war. he admitted that divisions exist within the country says he has the support of the syrian people and army. and the company at the center of the deadly u.s. and indicted outbreak is laying off about 90% of the workforce. the move comes after the company suspended operations amid concerns of drug mixing practices. those are your news headlines on the fox business network. connell: here we are 11 days plus, only hours ago new york city and long island began enforcing gas rationing in response to the ongoing gas crisis in new jersey.

at a hess station in midtown manhattan. >> things are going very smoothly. yowe take in consideration 750,0 people in the new jersey, new york metropolitan area that do not have power including the gas stations on long island, something like 80% of gas stations because they don't have electricity or aren't able to get gasoline to the station. these are people who have been waiting in line 10, 15 minutes. the rationing for new york city started this morning similar to what new jersey is doing is working. drivers say the line goes down to 42nd street, 10, 15 minute wait. they have no problem with the way this is going. if you have a license plate that and this in an odd number, you fill up on an odd day.

the taxis, deliveries, the doctors are allowed to fill up whenever. looking for gasoline for your generator and you have a can, you don't have to wait either. it seems to be alleviating the problem that led to the hour upon hour waits for lots of drivers. connell: a lot of people said why didn't they follow what governor chris christie has done in new jersey earlier so the lines would be shorter. i don't know if you can expand upon it, but getting the gasoline where it needs to be is not even power for a lot of the stations, but they don't have gas in new york, specially long island. >> a part of the problem is some of the terminals were the gasoline is brought in, stored and dispersed through tanker trucks, some of those terminals are still damaged. one of the key pipeline is back up and running according to mayor bloomberg but that is part of the infrastructure problem

they're having delivering gasoline to those stations on the island which are still shut down. governor cuomo says the economic impact of this hurricane and aftermath will be around $33 million, that is just new york. they're talking to the cost of hurricane sandy in the aftermath for everybody will be historic, historic bill. connell: it has already been a historic storm in a brutal one for so many people di. meantime getting shorted, northeast still no power. an aging power grid called into question. what is the future of utilities? a lot of people want to know right now. plus, colorado's newest measure. legalize marijuana. opening up new money for the tourism industry. we will get into that as well. and bouncing back a bit today, here are some of your winners on the s&p 500.

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watching today. sandra: it is down nearly 6%. we are up about 14% for the quarter. it had improved results. revenue mixed forecast. that is what investors are key in on right now leading to the big selloff of shares. danny capital also downgraded their shares from a neutral rating to a buy. that is not killing the dow. we are actually in the green by just a little bit. up about 25 points in the session. connell: we will take it after today. sandra, thank you. what is the business model for the utility companies? why is there more competition in the industry. the governor of new york is

blasting the long island power authority. the governor says lipa has failed and failed big-time. let's listen. >> these utilities are a monopoly. you know how people to scrutinize government, government is actually accountable. at least to this extent. you can fire the person who runs it. they run for reelection, you are unhappy, you fire them. you fire the mayor if you're not happy with the city government. if you are not happy with the utility company, who do you fire? connell: what about this business model in this country? many people like lipa do not have any incentive to do better. >> i think the governor is slightly off base.

if that were true, half the congress would be out. it is easy for him to, you know, criticized the utilities because they are there. they are controlled by the state commission. he has a voice and not. he can tell them to do certain things. he is just picking somebody that he can pick on that he knows the public will pick on so he will not be picked on. connell: yes. deflecting blame is the order of the day when a disaster like this happens. you want to find somebody else. longer-term, business model of utilities and the lack of competition in the industry, newsday which is a local newspaper here in new york, wrote a statement piece about lipa and that their infrastructure has not been updated since hurricane luria which was in the 1980 yes.

>> the government is just as equally to blame as they are. they brought in an extra 5000 workers from out of state to help them. i think they are probably doing as good of a job as they can given the restrictions. connell: what is the better system, or is there one? >> there is not one when you have a public utility. you cannot have five people trying to supply you with electricity because the grid does not work that way. you cannot have people going up and down where there is competition where somebody has

lights and 70 else does not have it. you have to have one person run not. they are under government that governs them. whether it is the city or state. it works. it works in a bout of cases. you have one disaster and it doesn't work, everyone eats them up. connell: up in connecticut, they lost power for days and days. according to this article today, they put money in and they improved their systems. this time they said we will have 98% of the power restored by monday or tuesday next week. they hit their goal of 98%. they have not made investments. how do you solve that problem? >> i think it comes down to the

rates. these rates are all spelled out. there is a formula for them. it is not rocket science. a certain amount of that rate is to go to capital improvement. connell: they raise rates. we will have to pay more for electricity. that is only long-term answer. great to talk to you. the speaker of the house john banner roughing up a news conference at this hour. we wait for the president at the lot of the white house today. >> this is an opportunity for the president to lead. he wants tax reform, entitlement reform all in 2013. now is the time to do this. he points out any time that he has reached a deal with the president of the united states,

that it is something that has at least gotten to the house of representatives. there was also a bit of news on the debt ceiling. treasury can kind of play with the books a little bit. extend that into the end of next year. boehner says we should address this sooner than later. what he is discussing, what democrats are discussing, they are talking more about revenues, talking more about getting more revenue out of the tax system, they want to do it .republicans want to do it through an overhaul of the entire tax system. back to you. connell: rich, thank you. the president, as rich said, just after 1:00 o'clock live on

fox business. we will see if he has a similar tone to what the speaker of the house has just expressed. we will have john brown coming on. we will have his views on the fiscal cliff here in the united states and what it all means. then the pot decisions. colorado and mexico state. another market to look at today would be treasuries. 163. not much movement. stock markets up after a couple days of declines. we will be right back. ♪

spivak i have their fox business brief. a gloomy outlook in europe has germany's industry says they expect a noticeably weaker economic dynamic overwinter. they can be contributed to the ongoing of the european crisis.

meanwhile, u.s. consumer sentiment on the other hand came in better than expected in november. raising to its highest level in more than five years. 84.9. up from 82.6 in october. chrysler is recalling more than 919,000 jeep suvs worldwide. the air they can deflate while driving. that is the latest from the fox business network. giving you the power to prosper. ♪ [ male announcer ] do you have the legal protection you need? at legalzoom, we've created a better place to turn for your legal matters. maybe you want to incorporate a business you'd like to start. or protect your family with a will or living trust. legalzoom makes it easy withtep-by-step help when completing your personalized document -- or you can even access an attorneto guide you along. with an "a" rating from the better business bureau

legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected. and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restauran specializing in fish and me from the great northwest. he'll start investing early, he'll find some good people to help guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. connell: it has been breaking news. we have been reporting since the new fiscal cliff outlooks.

resources think the president is serious about dealing with the deficit. speaker of the house john banner speaking about his thoughts. >> we advert the fiscal cliff to gather that ensures 2013 is finally the year that our government comes to grip with the major problems that our facing us. connell: what do you think will have been here before the end of the year, john? >> i think a lot of talk of putting forward negotiating positions as both sides have to face reality. compromise is the only way a deal will get done. my big hope for the future is that president obama, that he is

reelected, does not have to appeal so much. i think he may be the person leading the compromise. it will be of two republicans to reflect that movement. i think they probably will. connell: the president will come out here at 1:00 o'clock. he will move more simpson told -- sending them a message in the last few days. what you think it all means for the financial market? >> people are bearish about reaching a compromise. i hear that there were 120,000 people affected by businesses just on wednesday by the fear of

increased cost of obamacare. i think you are absolutely right. the simpson whole thing was an exercise. a very good pilot scheme and compromise between the two parties. i hope sincerely that will be continued into the macro scale of the economy. connell: doom and gloom there. that is about the most optimistic i have heard you be about the future in a while. >> i think obama will change from extremely left to coming more towards the center. that has to be reflected by the republicans and moving to meet him. connell: john brown. they give very much, as always. time for stocks now. sandra is in for nicole.

sandra: airline deals that compare up against expedia and orbitz. priceline find kayak. this accounts to about $40 a share. kayak shares going up 27%. $39.50 a share. right about that $40 purchase level. a friendly deal. there is concern about what this will do to places like orbit and other. you will want to watch all of those other stocks that may be affected by that. a big deal. $1.8 billion. connell: sandra smith. thank you very much. legalizing pot in colorado and washington state.

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connell: back on "markets now." the voters have spoken in colorado. one of two states legalizing marijuana. it is still illegal according to federal law. what is the state going to do about passing a law that directly contradicts the federal government? >> it definitely presents a problem, connell.

they have a phone call scheduled with you as attorney general eric holder. under colorado law they are required to certify this ballot measure within 30 days of the election. at that point, they will no longer go after possession under 1 ounce. eventually after license are issued, there could be stores to sell it. the states general said they to hope the feds will provide guidance. >> will you criminally prosecute these operations and things like that because people that are contemplating going into business need to know that. >> now, they did adamantly opposed ultimate 64 as it is known here and colorado. it is his job to enforce laws.

connell: it is getting a lot of attention because, well, it is marijuana. what did the feds come back with? >> we have been getting tried to get an answer to that question. it has not been that easy. the doj is only releasing a statement. in enacting the controlled substance act could determine that marijuana is a scheduled one controlled substance. we are reviewing about initiative and have no additional comments at this time. it will be defined here in colorado on a day-to-day basis. perhaps this phone call that

they have, hopefully, something will come from that. in terms of retail stores, that is a big question here. we are not expecting to see them here for at least one year. we are hearing that they are already seeing folks light up in public. they are saying to other people around them that are looking at them what are you doing, they are saying it is already passed and i can do it. that is a big concern for people around here worried about the state's reputation. connell: thank you. alisha on the marijuana story. some quick sports headlines for you right now. last night for indianapolis, there was a little bit of luck. two touchdowns. running for two against jacksonville. fourth consecutive win now for the colts and their rookie

quarterback. the detroit lions -- the dirtiest nfl player the second year in a row. this is from a poll of the players. he received 32 votes including 133 players. that is down from the 136 votes last season. quite a reputation stew does. leg stopping, if you may remember against green bay last season. it was just an ugly incident. the dirtiest player in the league. there you have it. the market is actually rebounding a bit from where we were the last few days. we will take it. below 13,000 still. the big issue is what will the president say or what color will he closer president obama

talking to the nation the first time since he won the election. what will we do about the fiscal cliff. we have already heard from the speaker of the house. basically saying the ball is in the president court now. dennis kneale and cheryl casone are coming up next. that is all coming up. don't go away. ♪

dennis: dennis kneale. cheryl: i am cheryl casone. the worst week for stocks in half a year. the dow flatly positive, consumer sentiment rising to a more than five year high. dennis: washington obstinate over fixing the fiscal clip getting much of the blame. and we will hear from president obama in a little over an hour.

cheryl: gasoline rationing, 11 days after superstorm sandy and no end in sight at this point. sandra smith standing by on the floor. sandra: good afternoon. we are looking at the dow down 43 points. the nasdaq and s&p 500, on a higher percentage point. maybe you haven't heard of this, but the international game technology company that makes slot machines and based out of las vegas reported great profits, better than expected on strong sales of slot machines but they also put out a forecast above expectations. the stock has taken off.

it is of 6%, second best performer on the s and p 500 and it is a welcome boost for those who own the stock. it is down 21% this year. itt's one of the big movers of the s&p. dennis: thanks very much. despite the steep post-election sell-off our next guest says u.s. equities are the best place to be. at morganlander join this now. where is the money going?chad m. where is the money going? stock sesno cheap. >> investors should invest in the united states. if you look overseas you are getting a very lackluster growth trajectory of the emerging markets and you will see a

contraction in 2013. dennis: why are stocks so cheap? is the fiscal cliff phobia or tax rates going up on capital gains? >> it is the tax rate issue in global growth deceleration. what is going on here is earnings have been coming and then you are seeing this lackluster revenue trajectory. over the last three quarter's revenues on the s&p have been flat and you don't have the get up and go and you have this deleterious effect in the global economy and you are going to be more persuaded to take off risk at this point. dennis: we have been complaining about uncertainty for months. we now have certainty. why are stocks saying the economy six to 12 months out is worse, not better? >> you have the european markets which are the economy is 20% of global gdp.

that is going to contract in 2013. the euro zone is going to contract -- dennis: we know it is a problem. that is no reason for 434 point sell-off in two days. >> yes it is because expectations are for the global economy to grow 3.7% and its expectations don't come to fruition and the growth trajectory of global growth is 3%, that will have a massive impact on earnings. will have a massive impact on revenue growth which you are already seeing. what you are seeing is the multiple contraction here in the united states. dennis: if they work out this clip thing for a temporary kick it down the road to next year will stock stop on that? >> you will probably have a fiscal drag of 1% for 2013 and you may get a certain pot in the short run. what you're looking at is

lackluster growth in the united states between 1% and 2% and that is including in that scenario and improvement in the housing market and slow improvement within the auto industry. it will not have the list that will get the market going. the range is 1500 on the top end to perhaps 1600 on the bottom end. dennis: the white house making overtures to the banking industry. charlie gasparino joins us. charlie: let's clear this up and give a little more detail. the devil is in the details. we do know that there has been a dialogue post election from what i understand happening right after the next day, talking with the ceos of certain banks.

president obama is serious about the deficit, he views the fiscal clip as a long-term deficit issue and legacy issue and he will put something on the table that is not going to be something you will see out of bill airs's hand book or something reverend wright might be talking about. a comprehensive and most radical left-wing solution. the devil is in the details. a lot depends on the treasury secretary. does he go with a centrist like erskine bowles, he could be lowered back as the president does something along the lines of the simpson-bowles reduction plan. does he go left with jack lew? the odds on favorite are getting the treasury, a lot of it depends on that. the overture, post-election overture to the banking sector, that is where my sources are.

i am sure he is doing this for broader corporate america. we are not going to go out there, we are not going to propose a radical left-wing solution and we are going to propose the solution. the deficit reduction as a legacy issue, but i will tell you the devil is in the details. president obama did not deal the deficit as in this election. he ran on class warfare and other stuff. dennis: a legacy thing? the legacy, is he talking about the legacy of debt left by others? he has to fix his own legacy? charlie: his legacy. dennis: that means something. this man cares about his own legacy. charlie: that is why the banks believe him. i leave the guy's name out, of the people who was part of the conversation last night who felt fairly convinced the president

committed to dealing -- at some point, if you want to be the president who wants 50% above you, he won a sizable electoral landslide but he did it, he won in the most ugly fashion with a very divided country and -- you don't know what he accomplished. there is something to be accomplished if you deal with the deficit. all you can appoint all the liberal judges you want but if you deal with the deficit you go down in history as a very good president. we got to see the details. there will see details at 1:00. dennis: the same when nixon was able to reach out to china, maybe the biggest spending president in history and fix the deficit and the debt that would be great. thanks for being with us. good reporting. cheryl: with reaction let's bring in former t.a.r.p. treasury adviser, and when your reaction about jetblue. >> based on the issues that

going to be in the treasury department for the next two years, deficit reduction, major tax reform, those issues are in his wheel house so he is a very strong candidate. the other issue at the forefront is the international economy and financial system and on that score lyle brainer who is secretary of international affairs could be a very strong candidate and should be the first woman treasury secretary. cheryl: there are a lot of issues at this point that are facing the country in particular with regards to regulation. charlie was reporting on the banks, the bank ceo last night. one thing they seem to be willing to fight is the volcker rule. dodd-frank is in the books, it is over. they can still fight the volcker rule. how much of a fight is there for the banking industry? >> i think now is the time for reconciliation. so much of a posture from the

banking industry has been a wall of opposition against dodd-frank and the volcker rule, not really wanting to sit down and have the kind of nuance constructive conversation that i really think president obama and democrats want victory tuesday and now is the time to come together and find a way to move forward with all these pieces. cheryl: a new kinder gentler wall street. when it comes to financial regulation, jpmorgan did a survey of clients, 51% said because of new regulations coming that will be implemented they are not hiring. it is having a negative effect on many of their clients. are you seeing that as well? >> barista uncertainty. all the uncertainty is gone in the economic sector but there's still a lot of uncertainty as the dodd-frank provisions are implemented. the sec is working and the cftc is working, the washington alphabet soup moving forward. there are provisions that coming to place and that could be why people are waiting to see but i

don't think it is as big a concern as it was. cheryl: not like wall street is going to lay down and take this. you have the u.s. chamber on the other side already threatening lawsuits in particular go to the volcker rule and also got this new bill in the senate that will come to a vote that may or may not happen and they want to add more regulation and rules to the cftc, to the regulators themselves. they are not running amok and messing with this. >> it is true. what i think his bankers confined places where new regulations are helping them. the cftc is taking under its oversight of a non-bank actors like pavement is and debt collection agencies which helps the banks because it creates a level playing field. if they could acknowledge this is the part that is working well and this is the par we think needs to be adjusted gives it more credibility and how we adjust this fight because there has been so much opposition against everything. cheryl: one of the big shocker the election night for many was

elizabeth warren. won the senate seat. what do you think her role is going to be based on what we know from her activities on the consumer protection bureau. will she come out fighting? >> she will be a champion for consumers and the individual investors but remember as one of a hundred in the senate the actual power she has versus if we were appointed head of the cpb is different. she can use the bully pulpit in a lot of affect the number of people canceling her, you have to get to work and show massachusetts you are serious about working for them. all politics is local as they say. cheryl: there's also a lot of politics in washington. a lot of lobbying groups. wall street's main voice if you will coming out saying this is negotiable. these regulations are going to be negotiable. this goes back to dodd-frank. >> it is the question how you negotiate. if it is to oppose everything that is not constructive position. if you are going to say we

understand why more capital is required we understand the impact you are trying to have but we think it is being structured incorrectly, that gives you a better place to have these conversations and elizabeth warren will be part of those conversations. cheryl: we will see. thank you very much, great to have you on the show. fox business's live coverage of president obama's it on the economy will be live at the top of the next hour, that is 55 minutes from now. dennis: more bank bashing lies ahead. meanwhile superstorm sandy is going to jack up the price of used cars the media reports. the next turn out of the entire story is even dealers on the spot. cheryl: news of iran's attack on the u.s. role. why didn't we hear about this before the election? good question.

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dennis: 15 past the hour stock every 15 minutes, dallas 60, sandra watching for profit tools. sandra: two four profit education companies taking hits. both of the stocks hitting new lows. we looking at re-education, reported profits that were well below analysts' forecasts also announced it will not pay a

quarterly dividend in 2013. stock getting hit hard on that and clear education announcing it is closing 23 campuses, cutting 900 jobs, as falling student enrollment so it is having to scale back a lot and that is turning its financial positions of both stocks are down big. sdr aid down 17%. both of the stocks getting hit hard in today's session. cheryl: cu in 14 minutes. just yesterday we learned of an iranian attack on an unmanned u.s. drone in the persian gulf but the attack happened over a week ago. former navy hero and congressman joe setback is with us. the administration sat on this news for all week. why did it take so long for them to tell the american people about it? >> i don't know. is a fair question. there is transparency in government one of the things the

american people want to have and the media out what should find out about this and then have people talk about something from the government that is unclassified. they did tell republican lawmakers about it but the more rapidly you get information out, that is what it should be about. this issue by the way is not an important. every watching device we have out there, we have to continue to do that because we have to see if they are approaching that red line where they might begin designing a nuclear warhead and enriching material to 90% uranium material which is a red line for us and that is what we are trying to stop. that military opposition is on the back of the table but that both force in the future and what we're trying to do. cheryl: as a former congressman do you think it would have changed the dialogue going into the election if the news had come out prior to tuesday? >> i don't know. i don't think it would have.

i think if it had occurred earlier in conjunction with what was concerning about ben gauzy, that they might have had a threat of a different kindghazi that they might have had a threat of a different kind of dialogue out there. americans were looking at the middle class and that is what came about. i do think you will see this iranian crisis at the forefront by next spring because the iranian government will have a change in its own presidency and that is when decision time comes about this red line. cheryl: i want to ask about something else, the situation with benghazi and libya. this talk about secretary of state hillary clinton potentially testifying in washington. i am curious if you think that will further the discussion or do you think her coming out saying here's what happened will let the american public move on from what happened in libya?

>> absolutely this should be a dialogue. everything in the open including the secretary testifying. in the military when we lose an aircraft and i lost one when i had command of my battle group, we have two investigations. you have immunity, a legal investigation so everybody is right protected but another investigation, saves the investigation where everybody does have immunity because we want to find out what happened. we had four men, four state department personnel we lost and there is enough out there to say we didn't provide sufficient security when it was requested before. we should find out what happened to prevent it from happening again. the sooner this is done and not taken into another context the better for our national security interests. cheryl: we have a lot more problems in the middle east than this. we have the situation between iraq and israel, syria, turkey, everything frankly heading for destabilization.

it is frightening. thank you very much, former congressman as well. thank you for coming on the show. dennis: a rather monumental failure by industry and government. 11 days after superstorm sandy left town and new york imposing alternate day rationing as gas lines grow at the pump. what is wrong with this picture? adam shapiro joins us from a manhattan gas station. >> drivers will tell you what is wrong is they can't get-but first a live picture of the line at 45th street down to 38th st.. is only a 30 minute wait. it was 10 to 15 minutes about two hours ago but more drivers have shown up but they are steadily going into the station and some video shows you how long the line is. these new restrictions put in place by the bloomberg administration because of the hour upon hour long lines that motorists deal with not only in new york city in manhattan but

long island. according to the administration something like 70% of the gas stations in all of the five boroughs don't have electricity or gasoline and that is given part of a problem getting on line and the other problem is the infrastructure. the pipeline that sense gasoline throughout this part of the country was down and is back up. also the terminals where gas is distributed to tankers and brought to the station were far more damage than at first thought. there is a slow process according to mayor bloomberg to bring that back up to speed but i can report u.s. come back was that at least at this gas station the drivers we spoke to are pleased. the weight is not as long as it has been in the past and if you had a pop number licensed even to look on an odd day. if you have a letter on your license plate is on an odd day and even numbers are even days. there are extensions for taxicabs and commercial vehicles. back to you one last thing. estimated cost to all of superstorm sandy in new york state according to governor

cuomo $33 billion. dennis: all right. i hate when that happens. thank you, adam shapiro. used car dealers at it again. are they inflating the number of cars damaged by superstorm sandy to jack a prices? we put the lawn of a spot next. cheryl: the impending fiscal cliff lose our economy on the brink. moody's analytic john lawnskate with his father. don't be so short is going to be averted. dennis: how the world's currencies are faring against the u.s. dollar. 4g lte is the fastest.

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 verizo it's so much more than the other 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.

fewer than 20,000 new york city

residents. a different story in new jersey with about 255,000 still without power, new york long island had over 200,000 outages. medical teams heading to the hard-hit area in new york city communities coney island and as far away as rockaway making sure folks are getting proper medical assistance. officials will assess what is needed for cleanup efforts. now back to dennis. dennis: thank you very much. the auto dealers trade association said up to 250,000 cars could be flood damaged or destroyed in super storm sandy causinsandycausing prices to sp. insurance companies came out saying those numbers are wrong. an executive auto analyst with the national automobile dealers association.

you are quoted to say maybe there wasn't a lot of science behind what we said. are you telling the truth. >> i saw that article as well, had to shake my head, the assumptions are unclear. the assumption is between 250,000 cars damaged. dennis: based on what? >> as we just heard, damage totals are expected to be around 50 billion. katrina around 150 billion images recorded, and out of those damages about 600,000 cars are flood damaged in katrina. we're just looking at that, the

areas affected by sandy had a higher population density, higher vehicle population density about 9 million vehicles registered in the area, much higher than katrina, much higher population of dealerships in the area affected by sandy, so you look at those figures had come up with what we saw a very good estimate between 100-250,000. dennis: if people in the area hit by the storm are spending money to fix the storm damage they don't have as much money to spend on used cars. >> very true. what is happening right now, on the national level, the impact in the area might even be more than that. we're in a demand for used vehicles in that supply is very tight and demand has been very

strong because consumers had replace vehicles, which by the way the average age of vehicles at a record high. contact the marketing economic conditions that aren't that great. supply and demand had been a historical high this year. dennis: doing a little bit of math never hurt, my friend. thank you, jonathan banks. >> thank you. >> stocks every 15 minutes. sandra smith watching a rare rise in the dow. what is going on, sandra? sandra: session high off about 73 points. the nasdaq the best performer, the s&p 500 of the major three averages right now. tech stocks faring very well. commodities are doing very well. a bit of a rally on our hands.

disney not holding back the dow altogether but one of the bigger laggers. reported improved profits, they missed on the revenue forecast, and that is leading to a big selloff in disney shares today. back to you. cheryl: washington's failure to fix the fiscal cliff is getting much blame for the stock drop. house speaker john boehner just addressing it. we are half an hour away from hearing from president obama, and we will take those comments live. dennis: and bond, james bond, back amid skyhigh predictions before "skyfall"'s debut. cheryl: looking better than ever. going to break. take a look at some of the s&p winners. we will be right back. when we got married.

i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule.

dennis: fiscal cliff face off. house speaker john boehner with president obama said to make a statement about a half an hour. rich edson on that story from the white house. >> good afternoon. the president will underscore the need for congress to prevent a tax hike on the middle class. what that meant for election for democrats in the white house and the tax rate remaining the same for those families earning $250,000 per year or less, an increase in those earning more. democrats with a election victoy at the white house and united states senate have maintained their position saying it is a mandate to raise taxes on wealthier americans. john boehner says no to an

increase, but as far as a plan is concerned, put that on the president. >> this is an opportunity for the president to leave, this is his moment to engage the congress and work towards a solution that can pass both chambers. dennis>> he says 2013 is when we should do entitlement and tax reform. we will hear from the president about a half-hour. back to you. dennis: thank you. cheryl: an increasing chance the economy will go over that fiscal cliff. s&p said that 15%, our next guest is more worried about the automatic spending cuts coupled with the tax hikes. you know, you're not so sure they can make a deal. more and more coming out saying not so sure. dennis: that is very true. if they're too late resolving this particular issue there could be a deep enough decline for share prices, deep enough or severe enough loss, so if this

happens, even consumer confidence the u.s. economy stalls. i would say over the near term quite frankly the risk of a recession is more in the range of 20 to 25% as opposed to 15%. cheryl: that is higher. a lot of eyes glaring right now. talking about unemployment go up to 9.1%. you will see obviously the gdp will go down, they are saying half a percent, are you in that camp? dennis: deeper than that if they don't address the issue, if we go over the fiscal cliff. if they are too slow restoring government programs, restoring the tax cuts di. cheryl: democrats want them to be raised for those making 250, a million. the president said we're not wet sure if he will negotiate.

after the election it seems the republicans will again be at a disadvantage. >> still have to consider right now small businesses who are taxed at personal uncut tax rate levels face the double whammy. not only would they find the income would be substituted to a higher rate of taxation, but they also have to face significantly greater cost for health carhealth care accordingo obamacare. the morning of november 6, still nothing more than a 50% chance obama would be reelected. now he is in office. we now know it is a certainty obamacare takes effect. cheryl: that was reflected in a lot of health care names we saw fall off the day after. the president basically wants us to go back th back to the tax se of the clinton era. what does that do for the economy in your opinion? >> it will weigh most heavily on small businesses, probably

entail cutbacks by small business spending also on staff. a lot of small businesses in the position right now to avoid this big jump in obamacare health care cost, what they need to do is perhaps switch full-time employees to part-time. that will cause a problem for consumers. cheryl: say that they come to a deal, a last-minute deal, perhaps that happens, do you think that will have more of a negative affect on the economy because businesses will say now i am back to uncertainty territory? >> that is not true. they have to say what their tax rates will look like going forward. will we postpone this decision on changes in capital gains taxation and dividend taxation.

dennis: it has weighed in on us. thank you very much, good to see you. of course chief economics. dennis: bond, james bond. he is back and a good than ever arriving at little late. here comes "skyfall," likely to be the best made in the biggest grossing bond film ever. to be the first in the 50 year history to have oscar buzz. "skyfall" expected to dominate calling and $70 million. maybe the richest bond opening ever. 8,230,000,000 for the u.s. run. cheryl: thank you for keeping the movie clips running. actually, think you are being considered for a role. maybe you should consider a career in acting. dennis: nice pistol.

i like the silencer. cheryl: we are off to see the wizard. ahead. what they hope to make off of memorabilia from "the wizard of oz."

speak on tracy byrnes with your fox business brief. wall street i arrived coming off of the worst decline in years. they are actually pushing the market higher. right now the dow was up 68 points. carrying a bag in the next flight is about to get way more expensive if you fly spirit airlines. the carrier more than doubling its carry-on fee $100. spirit helps move will encourage them to use an online system to serve bags ahead of time. it could be a good holiday season for the struggling videogame industry. sales of video game products in the u.s. retail stores fell 25% in october, $755 million compared to last year. the 11 straight monthly drop in

the industry. that is the latest from the fox business network giving you the power to prosper.

cheryl: it is time for your "west coast minute." once again attracted to investors thanks to the passing of opposition 30 raise income and sales tax. state treasurer says the quality of california will vastly improve and some analysts predict the s&p will upgrade the credit ratings. a new law in southern california requiring performers to wear condoms is being seen as a possible bomb las vegas adult industry. los angeles county voters approve the measure which also requires film producers to get permits from the county department of health. it is fiercely opposed by the adult industry, and filmmakers have threatened to move all the operations out of the valley possibly in place of las vegas.

stocks now every 15 minutes. the markets were just off of the session highs, but we are kind of holding in there, which is nice. >> if you want to see the bright spot is in the tech heavy nasdaq. the best performer in the major averages off more than a percent. s&p 500, the worst performer, but still holding onto about a 33-point gain. nice to see some green after two days of heavy selling in the market. one loser today, however, certain related jcpenney. taking a big hit after announcing same-store sales for the last quarter fell 26%, this is a mid-a big turnaround plan as the company ceo charged the turnaround plan is committed to it, he will stick with it, revenues fell way short. dennis: thank you very much, sandra. recognize this scene? from "the wizard of oz."

the dress by judy garland is one of the many items up for auction today and tomorrow. earlier asked the president and ceo about how it will price the movie memorabilia. >> when we put estimates on these kind of things, we call them guesstimate. a test dress from "the wizard of oz" not used in the film sold for 900,000. so it is actually very conservative. this was actually used in the film. there were several, but this is one of possibly two that are complete. a few others have like a blouse, this is a complete outfit. dennis: let's talk about the sound of music dress.

40 to 60 k., how come? >> there was only one outfit, whereas judy garland wore multiple outfits. "the wizard of oz" more of an outstanding film. but we anticipate julie andrews dress will sell 50-100,000. dennis: if i buy this, where do i usually have it? >> you may buy it just to hold onto it. dennis: you got this price at 20,000, the one that christopher reeves wore, i think you underpriced it a bit. >> it was the third movie. not the most popular. we have sold similar superman

outfits around $65,000. we anticipate it will go for a lot more. dennis: what if it had been a superman costume worn by george reeves in the 1960s series. >> even more so. there are several christopher reeves costumes, only two known in existence. dennis: even more. >> $200,000. dennis: and liz taylor's golden globe. this was owned by a pr guy. so would it be worn more of it came from the estate of live elizabeth? >> she gifted it to him. a lot of people didn't realize these items would become worthless much as they are, so comes from a family of the pr agent. but we still anticipate it will sell for 40, 60,000.

dennis: a truly symbiotic great movies, "the blues brothers." now you have john candy's classes going up, a lesser figure. priced the same, 5000, how could you, sir? >> we put conservative estimates, very popular film. very few artifacts are available from that film. many people would not keep these things. we put the estimate and the market dictates. dennis: our thanks again to be president and ceo. cheryl: we are getting some breaking news into fox business right now. the associated press is reporting president obama is going to be inviting leaders of congress to the white house next week and they're going to have talks about the fiscal cliff. remember, the fiscal cliff, which is spending cuts coupled with tax hikes, many economists

worry it will take the country into the recession. looking at a live picture on a beautiful day, washington, fox business will have live coverage of the statement on the economy and more expected to address the fiscal cliff live at the top of the next hour. are you looking for a novel vacation? consider this, marijuana tourism. we will give you the highs and the lows. get it? dennis. dennis: and wife may not be all that it is told up to be. cheryl: take a look at some of the highs on the nasdaq. ♪ [ male announcer ] this is karen anjeremiah. they don't know it yet, but they' gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together

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cheryl: colorado and washington state approving recreational use of marijuana. it's a business that could go up in smoke. >> it is still illegal on the federal reserve. thanks may not help out of the pot shops and marijuana shops across these two states. don't break out the cheetos and goldfish too quickly. the other thing, california crime rate has risen, this is according to the drug enforcement agency. you will see a tripling the number of robberies, 131% jump in robberies, so i will tell you something, colorado ski industry all about tourism. i don't know if i'll want to be in front of somebody who is stoned on a joint. cheryl: they're hoping the pot

tourism will pick up. dennis: president obama to speak in minutes on the looming fiscal cliff. cheryl: his comments live in moments. lori rothman and melissa francis are next. new pink lemonade 5-hour energy?

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the skin they were born with and say they'd die for darker skin. sadly, some actually do. change your thinking, not your skin. stop tanning. learn more at spotskincancer.org. >> for two days we have been listening to the panic, there's a fiscal cliff, the dow up 66 points. 443 points down in two days. >> we'r we are actually going te hearing from president obama shortly about this exact issue, the debate on the fiscal cliff. lori rothman and melissa will be joining us. congratulations for a great party. melissa: thank you, we will have video coming up later in the show.