the fomc said we would continue purchasing mortgage-backed securities, undertake additional purchasey and employ other policy tools until we judge the outlook for labor markets have includes substantially. analysts have taken that to mean the fed would expand q e 3 when it meets next month because of another bond buying program, operation twist which expires at the end of next month but ben bernanke adds that while interest rates have fallen recently it is still too early to assess the full effect of q e 3. cheryl: there's going to be q and a after words. those prepared remarks we have those in our hot little hands and the q&a could be very interesting as well. peter barnes, thank you. appreciate it. dennis: stocks every 15 minutes. cliffs natural resources. nicole: ben bernanke headlines rolling through the news, directly correlated to those ben bernanke headlines. i am looking at cliff natural resources to the downside. iron ore, prices have been weak so now they are delaying an expansion in quebec and a downgrade from goldman sachs and you are seeing natural selling off. take a lo

recover from the financial crisis and recession, but the pace of the recovery has been slower than fomc participants and others had hoped or anticipated when i spoke here last, three years ago. indeed, since the recession trough in 2009, growth in real gdp has averaged only a little more than 2% per year. similarly, the job market has improved over the past three years, but at a slow pace. the unemployment rate, which peaked at 10% in the fall of 2009, has since come down 2%, to just below 8%. this is a welcome decline, but it has taken a long time to achieve the progress, and the unemployment level is still well above its level prior to the onset of the recession and the level that our colleagues and i think can be sustained once a full recovery is achieved. many features of the job market, including the historic high level of long-term unemployment, the large number of people working part-time because they have not been able to find full-time jobs, and the decline in labor force participation reinforce the conclusion that we have some way to go before the labor market can be deemed he

we hear an awful lot around the fomc table of an anecdotal nature. it is certainly true that businesses are very concerned about uncertainty, and that seems to be a drag on their spending and hiring decisions. in fact, it is kind of striking that right now consumers seem to be actually doing a little better. consumer sentiment has risen, consumer spending has been a bit stronger, but businesses, partly because they are more exposed to the global economy, perhaps in the be more aware of the fiscal issues or more directly connected to fiscal issues, business confidence has been low and investors response to that has been weak. that is an important factor. it is restraining particularly longer-term investments, a leading business is to wait for a resolution of uncertainty before they commit to new hiring, new products, new markets. in that respect is clearly negative. you ask for how much -- i think it is probably significant, but it is very hard to assess any kind of rigorous way how the effects are. i think they're meaningful because, as we see, busin

and so we hear an awful lot around the fomc table of an anecdotal nature and it is certainly true that businesses are very concerned about uncertainty and that that seems to be a drag on their investment, spending and hiring decision. in fact, i think it's kind of striking that right now, consumers seem to be actually doing a little better. consumer sentiment has rizzs un. consumer spending has been a bit stronger, but businesses, probably in part because they are more exposed to the global economy and in part, because they may be more aware of these fiscal issues, more directly connected to these fiscal issues, business confidence has been pretty low and investment has responded to that been quite weak. so i think uncertainty has been an important factor. i'm sure it is restraining, particularly longer term investments it is leading businesses to wait for resolution of uncertainty before they make commitments to new hiring and new projects, new markets. and is in that respect, it is clearly a negative. you asked for how much. you know, i think it's probably significant, but it's very,

we hear an awful lot around the fomc table of an anecdotal nature. it is certainly true that businesses are very concerned about uncertainty, and that seems to be a drag on their spending and hiring decisions. in fact, it is kind of striking that right now consumers seem to be actually doing a little better. consumer sentiment has risen, consumer spending has been a bit stronger, but businesses, partly because they are more exposed to the global economy, perhaps in the be more aware of the fiscal issues or more directly connected to fiscal issues, business confidence has been low and investors response to that has been weak. that is an important factor. it is restraining particularly longer-term investments, a leading business is to wait for a resolution of uncertainty before they commit to new hiring, new products, new markets. in that respect is clearly negative. you ask for how much -- i think it is probably significant, but it is very hard to assess any kind of rigorous way how the effects are. i think they're meaningful because, as we see, busin

announce q e 4, large-scale asset purchase of some sort adding liquidity to the system at their next fomceeting which is december 12th, a two day meeting making the announcement the 12, indicating that the fed's monthly asset purchase of $85 billion will be unsterilized and generate much more money but in regular speak, the fed will be printing money and buying bondss according to wall street journal, it was up 101 points. charlie: the market is immune to the fed printing money. this is not a good move. i have my own story to do but the fed is doing duty for, printing more money, you buy securities of the balance sheet, this is very bad for the economy. pushing on a string now. liz: let's get to the sec story. charlie: could you read this? the securities and exchange poised to follow -- [talking over each other] charlie: new questions emerging not just about where executives use inside information or profit on trades, but dino to police bad behavior. liz claman has latest headache for calling what many believe shutdown his $14 billion hedge fund. liz: charlie, lovely. it was a little vinc

bill dudley is here, president of the federal reserve bank in new york, and at the fomc, we have folks from all over the country with different experiences and backgrounds talking to their boards, local citizen, and others, business people, bankers, trying to get a sense of the economy, and so we hear an awful lot around the fomc table of an antedoteal nature is it's true they are concerned about uncertainty and that's a drag on investment spending and hiring decisions. in fact, i think it's kind of striking that right now consumers seem to be, actually, doing a little better, consumer sentiment has risen. consumer spending has been a bit stronger, but businesses, probably in part because they are exposed to the global economy, in part because they are aware of fiscal issues directly connected to the issues, business confidence has been low, and investment responded to. that it's been quite weak. i think uncertainty is an important factor. i'm sure it's retraining particularly longer term investments, leading businesses to wait if the resolution of urn -- uncertainty before they make c

isn't it interesting today we get the latest fomc minutes. basically they show an interest in extending the fed's bond buying program to spur job growth. we have all this free money from the fed. is that all we can count on? is that going to lead the way if 2013? >> well, i still think corporate profits are going to be stronger in 2013. obviously, we want to get through this fiscal cliff issue. i think that stock prices where they are today are attractive. the fed is going to remain our friend, and the european central bank and so forth are going to remain accommodative. i do think that equities are attractive here. i think people just need to take a deep breath after the election here and get refocused. there are a lot of great opportunities out there for those who can truly have a long-term time horizon. >> i think you make a great point. the corporate sector really is healthy. when you look at balance sheets, you're talking about $3.5 trillion on balance sheets. that has been the story, right? that was the story in 2012. these companies ha

if the fomc comes out with additional measures, subsequent week later, all of a sudden they have the fiscal cliff resolution, bam, we could see a test of the 1,460 of the s&p. is there story in "the journal" about more action possible out of the fed. >>> taking a look at shares of advance auto parts reportedly the auto parts retailer put itself out for auction but the bids it received weren't to its liking. as a result that auction has failed. its shares are down 6.5%. look at some its competitors in that space. weakness pretty much across the board right now. auto nation down 3%. pep boys down 2%. advance auto parts the weakest performer, off 6 1/2. >>> fears of retailers heading into the holiday season. >>> and new signs that the online daily deal business is still struggling. courtney reagan on the retail beat, julia boorstin looking at job cuts at living social. courtney, you're up first. >> well, black friday was no match for super storm sandy. the storm really taking the wind out of the sales for november same-store sales. i'll tell you who got hit the hardest and who is faring

obviously in the u.s., fomc has to do something to replace operation twist.over to japan, you are finally getting chatter that they are going to get real aggressive, stimulus efforts, end could weaken. is it now looking like it is a globally coordinated effort here and just a race to take that currency as cheap as you possibly can get it? >> that's what you are seeing. really a keynesian warfare here across the world. big government is highly inn debt. all of the -- six of the major top ten economies. colossal debt, colossal leverage and they are trying to lever that up at this point. but the mark let fight them. i think it is about trading in -- inflection points. yen has been very, very weak. and as you said, and that's a sign that japan is moving that way. spain -- disturbing in europe in terms of their fiscal cliff, spanish ten years have been massively underperforming italian ten years. that's -- that's really a warning sign for another spain problem in the next couple of weeks. >> in your note today you say short the home builders and sell into any stre

we also have something today called the fomc minutes. could we see quantitative easing 4 coming next year? it might be possible. >>> we'll also talk more about who will not be in the president's meeting with 12 ceos coming up in minutes. it is a big day. it is a big "rise above" "street signs." we're at the white house. back for you right after this. >>> if a budgets is not agreed upon to avoid the fiscal cliff, the average middle class family will pay almost $2,000 more in taxes. work hard for a better f. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ >>> if lawmakers allow the payroll tax to expire, federal taxes will be raised on more than 120 million households. >>> while the president was speaking, the federal reserve r

this is the beige book that the fomc members will use at debate and possibly change policy although it is expected that it is steady as she goes with quantitative easing. continuing the beige book also says consumer spending grew at a moderate pace in most districts while manufacturing weakened in seven of the 12 fed bank districts according to the beige book. there were outright, slowing or outright contraction in manufacturing. and then of course it is the holiday season coming up here. it says looking to the holiday sales season the districts whose contacts gave an outlook noted mostly upbeat expectations. the report also mentions hurricane sandy hitting the east coast, particularly new york and slowing economic activity there, and it said that contacts in a number of districts were concerned about uncertainty and the fiscal cliff here in washington. tracy and ashley. tracy: peter barnes, thank you very much. ashley: expanded at measured pace. so different language on that. tracy: although, manufacturing slowing or contracting. that is not very good, no. peter, thank you. we have a

a lot of information coming out this week, fomc, as we get to the 173, those -- 1373, levels are important you talk about 1373 for the s&p, right? and here we are right now at 1382. when you say as a time to step in, i mean, everybody was talking about fiscal cliff blues. first it was election blues at least here on wall street to a certain extent, but now everybody's concerned about the fiscal cliff. do we get back into that wait >> that wall of worry's going to be there, the european wall of worry's going to be there. i think we need to focus on the end of the year, some end of year trades that we'll see in our markets, i think we're going to see that's important. historically, the market does run up as we get closer to the end of the year, but first and second quarter of next year there should be some trying times. >> reporter: sometimes referred to as the santa claus rally. thanks, john. back to you, trace. tracy: tomorrow's going to be a big day. we'll see you in 15 minutes, nicole. >>> breaking news for you now, oil closing down 50 cents at $85.57 a barrel, that's a loss of more than

the yields on the corporate bonds and the agency have fallen significantly on the balance since the fomc announcement. more generally, research suggests the previous asset purchases have eased the overall financial conditions and provided meaningful support to the economic recovery in the recent years. in addition to announcing the purchases of the nds at hours of timber meeting we extended our guidance for how long we expect that exceptionally low levels in the federal funds rate would be warranted at least through the middle of 2015. bye pushing the expected period of the low rates into the future we are not saying that we expect the economy to remain weak into 2015. rather, we expect as we indicated in our september statement that a highly accommodative stance of the monitoring policy would remain appropriate for the considerable time after the economic recovery strikes. in other words, we want to be sure that the recovery is established before we begin to normalize the policy. we hope that such assurances will reduce uncertainty and reduce confidence among the households and business

and the fed's going to be releasing the minutes of the most recent fomc meeting at 2:00 p.m. time. the fed minutes will come smack in the middle of president obama's post election news conference. that's set at 1:30 p.m. eastern. the president will be fielding many questions about the fiscal cliff. you can see that news coverage here live on cnbc. >>> the long island power authority chief is stepping down amid controversy about the utility's performance amid the devastation of hurricane sandy. he said he had been planning for months to resign. >> there was a story, lead story about long island power and how awful -- >> governor cuomo set up a group to go looking into how all of these power authorities actually performed during this. >> there are crazy things going on in my neighborhood too where these guys are working hard and they come from all over. some union -- some non-union guys were turned away. other ones, i heard, standing around, they didn't know where to go. it took a long time, when they did come, they weren't aware we were still down, we had to flag people down,