>> the era of deficit denial is washington is over. this deficit and debt is a cancer, and it will destroy our country from within. >> tom: sobering remarks from the co-chair of the president's deficit commission. he's calling for washington lawmakers to work together. >> susie: so is president obama. he met with congress' new republican leaders today on the agenda, tax cuts, and spending priorities. you're watching "nightly business report" for tuesday, november 30. this is "nightly business report" with susie gharib and tom hudson. "nightly business report"

is made possible by: this program is made possible by contributions to your pbs station from viewers like you.

thank you. captioning sponsored by wpbt >> tom: good evening and thanks for joining us. what will happen to your taxes? and is the government ready to rein in the massive deficit? susie, there was a lot of talk about those two topics in washington today. >> susie: tom, president obama met with congressional republican leaders at the white house today to discuss what to do about the bush tax cuts that expire in four weeks. the two sides called their discussion "civil," frank" and "productive". but they didn't strike any deals. >> tom: and no breakthrough on the other key topic-- the deficit. the co-chairs of the president's deficit commission today delayed a vote on their proposal to the end of the week. so what happens next? darren gersh reports. >> reporter: after meeting with bipartisan congressional leaders, the president announced a bit of shuttle diplomacy, sending his treasury secretary

and budget director up to capitol hill for a round of negotiations aimed at breaking the deadlock over extending the bush tax cuts. >> we expect to get some answers back over the next couple of days about how we can accomplish our key goal, which is to make sure the economy continues to grow and we are putting people back to work. and we also want to make sure that we're giving the middle class the peace of mind of knowing that their taxes will not be raised come january 1. >> reporter: but the president still doesn't think it makes sense to extend tax cuts for those making more than $250,000. back at the capitol, republican senate leader mitch mcconnell had a different view. >> it is the view of 100% of senate republicans, and a number of senate democrats as well, that the tax rates should not be bifurcated; in other words, that we ought to treat all taxpayers the same. >> reporter: while there was a lot of talk about bipartisan cooperation, there was little evidence of it. the co-chairs of the president's deficit commission all but told

reporters today they were not expecting to get the bipartisan support they need to move forward with a $3.8 trillion package of tax increases and spending cuts. but they still claimed success in getting the debate going. >> deep down, the american people get it. the american people know this is the moment of truth. >> reporter: so key votes on cutting the deficits and on taxes are still to come. tom? >> tom: of these two issues, taxes and the deficit, are there any areas of agreement? >> well, this is a funny thing. there is agreement that something has to get done, but the problem is, you know, the options are well-known in washington. the question has always been how you put together a package of all of the different options that will actually pass. that's the key issue on taxes, the key issue on the deficit. >> tom: when it comes to taxes, investors pretty

much, small business owners, lots and lots of people nervous about taxes. most pros expect the tax cuts to be extended before the end of this year. any mention that that is going to happen with thelame duck congress? >> i talked to three of the tax experts i know in washington who are the most plugged in. they have a good read on how these things usually turn out. they're actually pessimistic this is going to get done before the end of the year. they put the odds, at best -- at best -- at 50%. one option that may come up if they can't get a deal, is to extend them for a year or two. and congress will punt this issue to a month or so and let the new congress deal with it in january. >> tom: borrowing interest rates for uncle sam remain quite low. we're going to look at the 12-month chart from uncle sam. still below 3%. historic lows. there doesn't seem to be much pressure from the market for the government to act fast on the deficit. is this all political pressure? >> well, it's interesting.

the co-chairs of the commissions were saying eventually the markets will pressure the political system into doing something on the deficit. but as you pointed out, with these interest rates, that's not supposed to happen, right? i mean, the interest rates were supposed to show some concern over the deficit. and here we have the deficit commission, which a lot of people were looking for to move the process forward, having tremendous trouble getting nothing close to a majority, but even getting maybe one or two republicans to sign on to the agreement they put forward. that's not a great sign that we're in for a year or two of deficit reduction. >> tom: good stuff from washington there. it's darren gersh joining us tonight from the capital city. >> susie: here are the stories in tonight's "n.b.r. newswheel." debt worries in europe take stocks lower-- the dow dropped 46 points, the nasdaq lost 27,

the s&p 500 off seven. trading volume moved higher on both the new york stock exchange and the nasdaq. standard and poor's is weighing a downgrade of portugal's investment grade status. the problem-- worries about that government's creditworthiness. still, portugal insists it doesn't need a bailout. u.s. consumers are more optimistic. the conference board's november reading on consumer confidence rose to its highest level in five months. it could be a good omen for holiday shopping. and two million out-of-work americans will run out of jobless benefits at midnight tonight. that's because congress didn't extend an emergency jobless benefit plan. >> tom: still ahead, tonight's "word on the street"-- "dividends," or how to get paid while owning a stock, even if a stock is priced under $10 per share. >> susie: november was the first down month since august for the major market averages. but our guest tonight expects stocks to trade higher in december.

he's jeffrey saut, chief investment strategist at raymond james. >> susan: hi, jeff. >> hi, susie. >> susan: so it looks like you're expecting what they call a santa claus rally? >> yeah. i think that's the case. i've learned the hard way over the past four years in this business, it is pretty tough to put stocks down in the ebulent month of december. most of the time december goes to the win column. >> susan: now, you heard our report just a few moments ago about what is going on in washington, and you knew, whether or not there is going to be a compromise on the bush tax cuts. are the markets already priced in that something is going to happen positive on that front? or is there a chance that that news could give a lift going into 2011? >> i think the markets at the margin have priced that in. i think they are expecting, if not an extension of the bush cuts, some kind of compromise, maybe moving the maximum income from

$250,000 to $500,000, or something like that. but i think the markets are expecting that, and i think it would be a disappointment if they do not come to some kind of an agreement. >> susan: now, the economy is always an issue for investors. we've seen some positive news about consumer confidence. also recently some positive word about retail sales. what is your take on the economy? is it turning the corner, and what does this mean for the stock market? >> yeah. i have maintained for about 18 months now that the economy was going to improve, that we weren't going to go into a double-dip recession. while we were going to hit a soft spot, which you saw over the past couple of months, that the economy was likely going to reaccelerate. i still think that. i still think that the christmas selling season is going to be better than a lot of people expect. there is an 89% correlation between the stock market going up between the 1st of september and the 1st of december, and a high correlation with better

than expected christmas sales. so i think we're going to be okay here. >> susan: should people start moving some of their money more into stocks, and lighten up on your bonds, move away from the safety of bonds for right now? what's your take? >> well, i think the interest rates are going to stay fairly low. i think they do rise in 2012, along with a pick up in inflation in 2012. i don't have any interest in treasuries. if you're going to be a fixed income investor, i think you need to look at very careful and selective money managers. i happen to be using putnam, and their diversified income trust, which is an interesting way to get at the fixed income asset allocation. >> susan: you have two stocks you want to tell us about. you think investors would do well by them. tell us why you like n.i.i.holdings, tradinging on the nasdaq? >> my theme, ever since

the fourth quarter of 2001, emerging and frontier markets are going to be were the growth is. when per capita incomes rise, people spend more money. n.i.i. holdings is a play on south america and the rollout there. they had announced a cable deal with televisa in mexico, and the deal got called off, and the shares fell 10 points in a day. we still think it's a fairly cheap stock with good growth. >> susan: and tell us quickly about sinus energy, here on the big board. why do you like that one? >> i think we're going to get a colder than expected winter with the building la niña weather pattern and more volcanic ash in the atmosphere. you combine that with what happened off the florida coast, i think it ensures the viability of the alberta tarsands. this has the best properties in the tarsands

region. >> susan: any disclosures on those two stocks? >> yeah, i own them both. >> susan: you believe in what you are recommending. thanks a lot of jeffrey. we appreciate you coming on the program. >> my pleasure. >> susan: we've been speaking with jeffrey saut, he is chief investment strategist at raymond james. >> susan >> tom: a little bit of stock selling continuing as we wind up this month of november. u.s. stocks way down about

the european worries. let's get you updated in tonight's "market focus." . >> tom: u.s. stocks were weighed down by the european worries again. and november comes to an end pretty much where it started for the major indices. the dow industrials had the worst performance among the big three, down 1%. this is the first month the dow has lost ground since august. the nasdaq slipped four-tenths of a percent this month. the s&p 500 is two-tenths of a percent lower tonight than one month ago. tech stocks were the biggest drag today, especially google. the internet giant reportedly is in talks to make its biggest ever acquisition. at the same time, it's the focus of a european anti-trust investigation. google was the biggest loser in the s&p 500, dropping 4.5% on more than three times its usual volume. tonight's close is a six-week low. here's the news around google. "the wall street journal" quotes sources saying it is in talks to by groupon.

that is an online coupon web site. company officials aren't commenting, but the "journal" says google has offered $5.3 billion. meantime, european regulators started an investigation into google stifles web search competition. the leading nasdaq 100 stock was research in motion, maker of blackberry smart phones. anticipation is building around its newest operating system that will debut on rimm's computer tablet early next year. shares popped almost 5%. this is rimm's highest price since june. an analyst at jefferies upgraded the stock to buy, thinking the new software will be on new rimm phones in the first quarter. yesterday's sector losers were today's gainers-- telecom. while verizon and at&t rebounded a bit, qwest communications sits at a new 52-week high. qwest stock has been rallying steadily all year-- 92%. in fact, this is its highest price since december 2007. shares gained only three cents

today, but it was on twice their usual volume. more analysis of the shopping weekend continues coming in. today, how shoppers paid for their purchases. 16%, the lowest in at least a decade, used their credit cards. america's research group finds almost two out of three shoppers used cash or debit cards. the remaining 21% didn't buy anything. a handful of retailers were moving today. bookstore operator barnes and noble shed 6% on very heavy volume. it lost money for the third straight quarter and its outlook was disappointing. saks fell almost 4%. a retailer of a different sort, grocery store kroger, jumped 2% to within a nickel of a 52-week high. earnings are due thursday. one merger to mention. swiss industrial equipment maker a.b.b. will pay $4.2 billion for baldor electric. b-e-z shares jumped 40%. the buyout price values it at $63.50 per share. and that's tonight's "market focus."

>> tom: in this world of record low interest rates, it doesn't pay much to hold cash. that has pushed lots of investors to look for companies that pay shareholders to hold stock. tonight's word on the street-- "dividends." david peltier is the research manager at thestreet.com. he joins us from the nasdaq. >> tom: david, welcome to "nightly business report." nice to see you. >> thank you for having me. >> tom: as many investors know, looking for yield has led to a lot of dividend plays, but not all dividends are created

equal. how should investors decide if the dividend is worth the stock price risk. >> one of the first things we look for is a dividend that yields more than the s&p 500. right now that is about 2%. the key is the company can afford to pay that dividend going forward. so we want to see two times earnings coverage, that is that the earnings coverage are twice as much as the dividend, and company with a good balance sheet. >> tom: you want to make sure it has the cash to pay the shareholders. and low price stocked are a lot different than cheap stocks. >> absolutely. a lot of the stocks under $10, especially, are smaller companies. as opposed to a cheap stock that could be a stock that just came down a lot, but still has further to go. >> tom: your focus tonight on dividend play stocks that are under $10 per share. and the first one you brought along with you is kind of a unique one. stewart enterprises. f.t.e.i., and it operates funeral homes across the

united states, yielding over 2%. what makes you like this one? >> what i like here is the company has consistent growth. as a result, the company is on pace to produce 35% compound annual earnings growth over the next three years. >> tom: with that kind of growth, you anticipate the dividend to grow with that kind of pace? >> i think that is very likely. last year the company raised its quarterly dividend to 3 cents a share, a 2.2% yield, but i think the company has room to further raise that dividend. they already been buying down stock and paying down debt. >> tom: chemical manufacturing is a low-priced dividend play -- i almost said chip. this is a specialty chemical manufacturer, has had a nice stock rally, so the dividend yield has dropped. >> what i like about this, it is still very much under the radar. something we like to call

a stealth stock. the company has one analyst that is covering it on wall street. when you look at the company, they have multiple growth drivers. they're very much leveraged to the generic pharmacy space. and they have two other businesses that should help drive growth into the new decade. >> tom: we have to leave it there. any disclosures? >> no, sir, i don't own either one. >> tom: and our guest this evening, word on the street, david peltier with thestreet.com. >> susie: here's what we're watching for tomorrow: we'll see auto sales for november, along with october construction spending. did online shoppers set a record yesterday? comscore is out with its cyber monday data. and "street critique" guest hilary kramer joins us with some m&a targets in health care. she's editor of "game changer stocks." the first chevy volt for sale to the public came off a michigan assembly line today.

the c.e.o. of general motors was in the driver's seat as the car was unveiled. daniel akerson used the occasion to announce some big plans for the award-winning electric car. g.m. will begin exporting the volt next year. it will use the volt's electric technology in other vehicles, and it will be hiring engineers and researchers. g.m. plans to add a thousand of those jobs in michigan over the next two years. >> tom: speaking of hiring a thousand engineers-- chrysler is also hanging out the "help wanted" sign. the bailed-out auto maker plans to hire a thousand high-tech workers by april. they'll focus on expanding chrysler's lineup of smaller, more fuel efficient cars. chrysler has made plans to hire roughly 6,000 workers since exiting bankruptcy last year.

>> susie: with the end of the year on the way, we know the tax man will soon be here. so all this week, kevin mccormally is joining us with some year-end tax tips. he's editorial director at kiplinger's personal finance. tonight, kevin takes on r.m.d.s, those pesky i.r.a. withdrawals seniors have to take. >> to throw a lifeline to seniors who saw nest eggs devastated by the stock market

meltdown, congress suspended for 2009 the rule that requires i.r.a. owners over age 70½ to take a required minimum distribution from their traditional i.r.a.s. but the r.m.d. waiver was a one- year-only deal. r.m.d.s are back for 2010, and the deadline is december 31. take out too little, and the i.r.s. will help clean out the account for you by claiming 50% of the amount you should have withdrawn. 2010 r.m.d.s are based on the amount in your traditional i.r.a. at the end of 2009, and a life-expectancy factor provided by the i.r.s. you can ask your i.r.a. sponsor can help you pinpoint how much you must withdraw. if you have more than one traditional i.r.a., you'll need to figure the r.m.d. for each one. then, once you know the total, you can choose which account or combination of accounts to tap. you can ask the i.r.a. sponsor to withhold taxes from the payout, which makes sense if it lets you avoid making estimated tax payments. and remember, r.m.d.s are not required from roth i.r.a.s. in the past, i.r.a. owners over age 70½ were allowed to

contribute up to $100,000 from their traditional i.r.a.s, including their r.m.d.s, directly to charities. that opportunity expired at the end of 2009, but we expect congress to revive it for 2010 during this lame duck session. if you're interested in a direct donation, contact your i.r.a. sponsor and the charity now to start the ball rolling. then, if congress does resurrect this break, you'll be ready to act by the december 31 deadline. i'm kevin mccormally. >> susie: that's "nightly business report" for tuesday, november 30. we want to remind you this is the time of year your public television station seeks your support... >> tom: ...support that makes programs like "nightly business report" possible. >> susie: thanks for joining us. and don't forget to support your public television station. i'm susie gharib. good night, everyone. you, too, tom >> susie: good night, susie. i'm tom hudson. we'll see all of you again tomorrow evening. "nightly business report" is made possible by:

this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> be more. pbs.