hewlett-packard disclosing an $8.8 billion accounting charge this morning because it massively overvaluedny called autonomy that hp acquired last year. hewlett ceo says her company was duped. the founder of the company at the center of the controversy is up next. he's going to give us his side of the story exclusively. autonomy founder, michael lynch here with me coming up. join me for that. >>> up next, the latest conflict between israel and hamas rippling across the globe. bank of israel governor stan fischer speaks with me after this short break. >>> how's this for a geek factoid? fischer gave bernanke an "a" plus when he studied under him at m.i.t. stick around to see if he's still making the grade for stan fischer. a restaurant is hard, try running four. fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. and his new boss told him two things -- cook what you lov

involves hewlett packard.pany did report earnings and not being particularly well received on the numbers themselves particularly the outlook but of course it is charges of accounting issues prior to when hp bought the unit has brought the attention of investors. hewlett packard has taken a $5.3 billion write-down on its autonomy unit. it paid 11.1 billion in cash for the company. that deal closed in october 2011. done under previous management. there is the overall charge of 8.8 billion. you haven't really explained there's an additional $3.5 billion charge related to good will impairment trading above the implied price of the so-called good will. that charge was in addition to the 5.3 billion. they have taken $8.8 billion write-down. not one of the worst deals of all time but it is certainly up there in terms of the disappearance of value in a very short amount of time. you see talking about disappearance of value. another 13.5% decline this morning for hewlett packard. sources close to the company may have

not hewlett-packard but others. meantime, bernanke saying the fed lack it is tools to help the economy whether the impact of a fiscal cliff if congress doesn't reach a deal. we asked the question will the fed twist once again. keith, what does the treasury market tell us? >> i think for bernanke to move the dial he needs to double and triple the monthly bond buying program. the size of the fed's balance sheet now to basically get the slope of the line right which is increasing the balance sheet he's got to bring a ton back to the marketplace. i think today he said, i'm out of bullets. unless i missed what he said, that's what the market is telling you. >> maybe he's not. the next guest say it is fed will embark on more twists. we'll see it in december. joe lavornia of deutsche bank joins us. >> i thought bernanke was radical. keith -- i can't even describe it. i'm at a loss for wordses. >> qe-4 in december. >> they will replace twist with purchases. it will be $40 billion, $45 billion in size. that will be done as a

hewlett-packard has got to be sold. have to tell you that you should be selling the company for ages. i believe that the culture of the company has been broken for a long time. first, hewlett-packard has gone from being an innovator to an assembler and puts them into a machine. so do many other companies and it is going up against apple which is slowly taking share and now that is accelerating. it sells printers, neither the pc nor the printer business is proprietary. it bought gme but now finally tried to crush cisco but it has since vanquished them. notice, it is being crushed in every segment in its business and it is down 55% this year. they have a whole new reason not to own it. accounting irregularities. it needs to be sold when you can. how about best buy? here is a stock that has been cut in half during a time of endless rumors that something grand was going to happen. that its founder was going to launch a takeover bid and take the company private. you cannot speculate on takeovers if fundamentals are in declin

hewlett-packard bought this company for $11 billion. it was a roll-up of software service companies. the accounting was absolutely dreadful. a disaster. they did almost no due diligence on the deal. it closed quickly. oracle was shown the deal and passed. within seven months, the ceo and a number of top people all left. >> hp's telling a different story, though, saying they did do the proper due diligence. joining us today on this issue is the leader of the global mna practice. also, herb greenberg, who's been following this story. bob, i'm just astounded at size of this carjack on $8.8 billion. the question being asked today is how they missed that, if they did, in fact, do the due diligence. >> i don't doubt for a moment they did. it was a big deal, a big company. the focus on due diligence is not something new. frankly, since back in -- ten years ago all of this ramped up. frankly, i know had this has been a huge story today. it's not surprising. when you consider that there are 30 to 40,000 deals around the world with every year, so

to take here for hewlett-packard. as you noted it is the number one loser in the dow. been the biggest loser in the s&p 500. the stock is tanking. it's at the lowest levels liz that we have seen since 2002 for hewlett-packard, right? it's basically a ten year low here for the company. and the whole idea is with this acquisition that hewlett-packard autonomy last year, e company, hewlett-packard feels that they were greatly misled as far as the accounting and financials. autonomy has come out and has denied those claims of fraud. so what's the truth? this is going to untold and untold -- i mean this is not a story that will end at the closing bell. in the contrary, we will find out more and more. in the mean time you are seeing hewlett-packard down almost 12%. back to you. liz: they have had to take earlier writedowns on other companies that were just complete busts. it is tough for meg whitman. she's trying very hard, but again she said you cannot see fraud sometimes. they are not saying it's fraud, but when you want

because of hewlett-packard. >> this is a massive drop for hewlett-packard, only the third, it's the thirds of the weightings in the dow components, makes up for 0.8%, but that is a drop. >> it's trading at a ten-year low. >> 88 left. >> could have brought that back in 2002. >> it was a $40 stock not that long ago. >> we don't even go back that far, unbelievable. let's talk about exactly the details here. hewlett-packard reporting fourth quarter earnings of $1.16 a share, a two-cent beat, current quarter earnings guidance short of street consensus. here is what everybody is paying attention to, david faber talked in the last hour, hp is alleging it was the victim of a massive fraud when it purchased the uk company autonomy, the $10.3 billion deal closed in october of last year. the stock falling to a ten-year low as we said in premarket trading. ceo meg whitman is going to be joining us on "squawk on the street" at 10:40 a.m. eastern. this is a story we'll be talking about all day. i was just looking at, we were talking about bankers before, this is not a good day if you were a banker on t

. >> hewlett-packard has posted a multibillion-dollar loss.f time ago, i discussed this with ben thompson. how could this happen? >> it really does to seem that the battle lines are drawn between both sides in this. h-p and meg whitman are talking about how they were misled apparently in buying the firm. they spent $10.3 billion on autonomy. they have said they were misled about the value and profitability. for its part, mark lynch said that the firm had been mismanaged after h.p. took over the firm. it really does seem that both sides claim that they are right but the dispute has been enough to knock 12% off with the price. >> what does this mean for hewlett-packard? >> hewlett-packard is in a difficult position. meg whitman taking the top job. she is cutting around 29,000 jobs in an attempt to save $3.5 billion. this is because there is a big shift in consumer demand away from traditional desktop pc's. that is an area of the market that h-p is not a very dominant in. many have said they have missed the boat and allowed rivals to overtake it.

look at this, pre-market activity, hewlett-packard way down.the way, that stock is one of the 30 components of the dow industrials. that's a loss for hewlett-packard shaving about 13 points off the dow and futures pointing 17 points lower. here is another big story of the morning, france downgraded. moody's taking away france's perfect triple-a credit rating and worried about economic growth. they're drowning in debt. when francois hollande was elected taxed the rate on the rich 75% and loaded the lowered it to 60 for some workers all in the name of fairness and didn't help avoid a debt downgrade. the same policies are being pursued here. democrats want to raise the tax rate on the rich and the president has yet to produce a plan to reform entitlements. our debt grows by 1 trillion dollars a year, are we gambling with another downgrade? we'll talk to a rich guy, he wants, really, he wants to pay higher taxes. his name is eric schoenberg, he's calling himself part of the patriots for fiscal strength. and fox news reporting a 48 hour truce, broke

hewlett-packard admitting that a british company called auto any brought last year blind its financesthat resulted in a massive write-down and the shares, you see them now, down 11 1/2% at $11777. david faber now with more from new york city. david? >> that's tyler. hewlett-packard reporting earnings this morning, that was not the focus for investors, the company alleging it was defrauded by autonomy to the tune of $5.3 billion when it bought that company in october of 2011 for $11.1 billion. that 5.3 part of an overall part of an 8.8 billion write-down related to that autonomy acquisition. certainly not a good one. now you it was last may that an insider, a senior insider from autonomy, spoke up, essential lay whistleblower inside hp and said, hey, you know what, now that management has gone,ing me whitman just fired the management of autonomy, now they are gone, i want to alert you to some accounting improprieties, revenue recognition issues and an investigation ensued. what did they find? according to hp, they did things like selling hardware at a loss to supplement revenues but tr

an update on hewlett-packard's fraud claim. the federal bureau of investigation is opening an inquiry into the $8.8 billion dollar write-down, that h.p. says is a result of bad bookkeeping, at the u.k. software maker it bought last h.p.'s business has been struggling because of the shift away from personal computers, to tablets and smartphones. and the fbi may not be the only government agency eyeing the write-down, h.p. says its filed complaints with government agencies both here and in the u.k. and in the u.k. and you know, tom, this is just another board room drama at hewlett-packard. you remember the phone-hacking scandal, and the sexual harassment allegations, and they led to c.e.o. resignations. really amazing what is going on behind the scenes at hewlett-packard. despite all of that, the stock recovered a little bit today after that big selloff yesterday. >> tom: last night we were talking about how this stock hasn't traded as low as it was yesterday since the mid-90s. a little bit of rebound today. here is susie in our

hewlett-packard naming a new ceo and president, leo. he's the former ceo of s.a.p. >> today hp unveils its new tablet computer. >> you had the news earlier this week the way their tablets were selling at best buy. you said, oh, my goodness, something is coming. when this news leaked, people said, man, those are not going to be good numbers. >> we saw the dow worsen when hp opened. we did get some news headlines out of the company. kayla. >> the company is in advanced talks with autonomy, of course, a large enterprise software company out of the u.k. >> yeah, it is confirmed. meg whitman is the new chief executive officer of hewlett-packard. she's also been named president. so it is confirmed, folks, after a drop of $20 a share this year. leo is out in less than a year. >> obviously, something has gone on here. you're talking about a $8.8 billion write down from hp. what do you think happened? >> i think there's been significant mismanagement of the company. >> why were you so loyal and you came to mark hurd's defense so quickly? >> what

and that's because of the big drop in hewlett-packard. the stock was hit by its massive write-down, which we reported on earlier, and a disappointing outlook. shares fell 12%. volume was huge, more than six times normal. at $11.71 per share, this is h-p's lowest stock price since the mid-1990s. it has lost more than half its value we have a deeper dive into hewlett-packard's stock chart. it is on our web site, nbr.com. click on the "blogs" tab and look for michael kahn. h-p's outlook also hung over other companies that are big in the traditional computer market. semiconductor maker intel dropped 3.7% to a new 52-week low. intel has been criticized for being late to get more involved in the mobile computing market. disk drive maker western digital fell 2.6%. advanced micro devices, another semiconductor company hit by weak personal computer demand, fell 2.1%. home builders keep breaking ground on new houses with more evidence of confidence in the housing market. housing starts rose 3.6% in october to their best annual rate in more than fou

hewlett-packard paid $11 billion for the british company autonomy. it didn't go well from the start. this morning, though, in its routine quarterly report, hp dropped the bombshell that autonomy was not telling the truth in its books at the time. it's hard to think of anything worse for hp other than maybe their headquarters burning down this morning. we expected the company to say computer sales were sinking. they said that in the report. we expected printer sales were sinking and they said that. what we did not expect was to see this kind of language in a financial report. these words, serious accounting improprieties, failures, outright misrepresentations. in financial language, folks, this is akin to swearing. hp is on the phone now in a conference call with reporters. that's kind of the normal flow of things following a financial report. but all of the questions this morning are centering around what happened and who knew what when. the board, hp's board, has quite a history, approved this deal. about the only person off the hook this morning is

hewlett-packard, 50% of its value wiped out this year. so are these names you should be putting on your buy and sell list? joining me now to talk about strategies is morgan stanley chief investment strategist david dorst. we want to go through the winners and losers. what are you doing at year end? is there a strategy you do at year end getting ready for the new year in terms of your investment portfolio? >> i think you want to basically sell off some of your losers, clean up the portfolio. we want to be a little bit defensively positioned going into the coming year. we think the market this coming year will only close in 2013 at 1434. it closed at 1416 tonight. 1434 at the end is only a 2% gain. you add in the dividend, you've only got a 4% gain. buy some of your dividend paying stocks. your johnson & johnson, pfizer. secondly, go for some stocks that have come down a little bit. apple, 706 was its high in september. that stock is still up 50% plus for the year. we think that thing can go to 720. buy that. buy some oracle. buy some micro

hewlett-packard has sold off, at the lowest levels since 2002. this is all about accounting and they are now calling fraud, basically saying the financials they saw for a software, which they bought last year a software company weren't what they expected or anticipated. we are seeing hewlett-packard taking a 8.8 billion dollars writedown and the stock being impacted greatly. back to you. tracy: a lot of people scratching their heads on that one, nicole. see you in 15 minutes we have more now on ben bernanke. he says the fiscal cliff outcome will make-or-break the economy in 2013. peter barnes is in washington with more. peter, i mean, it's more idle talk, though; right? we are not seeing any action. peter: well, he's trying to push all the politicians down here to action with these warnings, tracy, no doubt about it. he did say that depending on the outcome, he is prepared to help provide more assistance to the economy, more monetary easing, potentially in the form of additional quantitative easing, expanding qe 3, making it bigger, but he says t

hewlett-packard in palo alto from a financial standpoint. we'll take a look. >>> good morning, everybody. how are you feeling on this tuesday very early. it is a live look for you there at the bay bridge, looking very nice there with the lights glowing as we head towards thanksgiving. it is 5:52. from an iconic bridge, we head to an iconic house. a san francisco house with a very big-time film history will no longer be on public display for all you movie buffs out there. the owner of this lombard street homemade famous by alfred hitchcock's 1958 thriller "vertigo" say they are sick of being a tourist attraction. this is a still shot from that movie. i believe that is kim novak there. jimmy stewart also in that movie. to stop all the spying eyes the couple put up a six-foot wall right in front of the house. they say they had to do it. this comes after years of tourists ringing their doorbell, strangers throwing a little picnic on their phelfence and tossing garbage in their yard. >>> a mystery for hewlett-packard which has gone over the books

hewlett- packard officials maintain the legal process will bring out the facts.onagra foods is packaging up a new brand. the company has purchased "private label" food company "ralcorp holdings" for 5 billion dollars. since the recession, consumers have more of an appetite for store-label brands vs popular brand names. conagra's lines include well- known products such as chef boyardee, while ralcorp offers grocery store labeled brands of cereal, pasta and crackers. conagra shares hit a 7-year high of $29 yesterday. the record powerball jackpot could be part of a powerful plan. this week, the powerball hit a half-billion dollars. the associated press reports lottery offcials want to increase sales by driving up jackpots, as state and federal governments get a cut of the winnings. lottery offcials have not responded to the accusations, but did say the purpose of the lotto is to generate revenue for states, and that high jackpots help the lottery acheive its goals. lottery officials say 60% of ticket sales happen on the day of the drawing, which means the pot may fa

and staggering news from hewlett-packard. evidence of financial fraud in connection with a software company they acquired last year, this one could have huge impact on the bottom line, and the stock market as a whole. all those details. plus, just in time for black friday, would raising wages for retail workers kickstart the economy? one study says it could boost gdp by 15%. i'm not really buying that. when the people behind that report is here to disagree with me. even when they say it is not, it is always about "money." all right, let's take a look at the headlines, fed chairman ben bernanke warning of dire consequences if we go flying over the fiscal cliff, bernanke says failure to make a deal could trigger another recession. he also says the fed does not have the tools needed to stop another downturn. and they're calling it the largest insider trading case ever. sec charging him with conspiracy to commit serious fraud. reporter made $276 million in illegal profits after receiving a tip from a doctor about a new alzheimer'

hewlett-packard bought this company for $11 billion.was a roll-up of software service companies. the accounting was absolutely dreadful. a disaster. they did almost no due diligence on the deal. it closed quickly. oracle was shown the deal in past, and within seven months, the ceo and a number of stock people all left. >> now, jim chanos taking a bow, is joining us right now on the squawk newsline. good morning to you. >> hi, guys, good morning. >> i assume you're feeling pretty good this morning. >> well, i don't know about that. but this whole thing is a debacle. and probably should have never happened. as i mentioned, we have been short -- autonomy european fund in 2010 and 2011 and washington horror was taken out a big premium by hewlett-packard. it was one of our absolute favorite shorts at the time. >> do you buy that there is fraud here? hp has not used that phrase specifically, but the s.e.c. and others are looking into this and that's the clear implication. or is this just sort of a convenient way to say boy, did we make a huge

hewlett-packard no doubt one of the key players in the space. todd bradley joins me now to talk about that. thank you for joining us. >> good to be here. >> what do you think of this mini debut by apple? is smaller necessarily better in the tablet wars? >> well, i think there are a whole number of things that are taking place in the tablet marketplace. our focus has clearly been on creating tablets that are going to play right into the enterprise. tablets that are focused on backward compatibility to applications. security and compatibility. i think there's still a host of opportunities broadly in mobile computing of which tablets are a piece of. >> so hp is rolling out the elite pad 900 in january. you're billing this as business friendly. >> exactly. and because it is focused on that business user. focused on that cio that needs the ability to go back into all those applications that they run their enterprise with, focused on security, on the usability. so clearly there will be lots of consumer applications that run on the envy, but our focus

. >>> now hewlett-packard is now up 2 1/4%. we just heard through reuters we're confirming it here on fox business that a class-action lawsuit has been filed against hewlett-packard, a law firm -- we're looking at this issue with autonomy, it's a company they had to write down the acquisition by billions and billions of dollars. so clearly this is the breaking news on hewlett-packard right now. not really moving that much. still up about 28 cents. apple as you saw up sharply. analysts talking about a strong black friday for apple based on some checks on their stores. analysts run in there and look at the stores and watch and see what people are buying. apple is what people are buying. we're stuck in the pool of red with bits of green. let's find out why and whether we hoist ourselves out of it. let's go to our floor show. ben willis, can we switch this tomorrow or is it a headline driven market? >> this is a natural pullback from overbought overextended rally we saw last week. natural pullback. nothing to panic about if you are

a double dose of bad news for hewlett-packard.umping computer giant tries to turn itself around. the real big story is that hp is taking an $8.8 billion write down on its 2011 purchase of british software maker atonomy, accusing the executives of cooking the books.. >> the manl ti of the impairment charge is linked to serious accounting improprieties, disclosure failures and misrepresentations that occurred t? )äúr to hp's acquisition and impact on the expected financial performance of the business over the long term. the balance of the impairment charge is linked to the trading value of hp stock. >> the former management team denies claims and the ceo at the time says he's stunned and disappointed by allegations. the news sent hp shares down to lowest levels in a decade, stock closing down nearly 12%. coming up same time as best buy show retailers plan has a long way to go. in the third quarter sales fell 11% to $10.75 billion. the company has lost $10 million, it's 106% dropped as slowing sales are taking a bite out of the botto

rating cuts for hewlett-packard today. nicole: despite the ratings cuts, don't forget yesterday this stock was down over 10%. and hit 10-year lows. the move that you are seeing here today coming back little bit. not everybody thought it should be down 10, 11, 12% as we saw. that being said, you have one of the names up there. several analysts cutting the price target. now $11 from $12.75 with a celebrating. coming on the heels of $8.8 billion write-down that was wesaw hewlett-packard taking on the heels of the acquisition they made last year basically saying those financials were fabricated. this is an ongoing story. melissa: thank you so much. retailers have a reason to give thanks this holiday season? joining us on the trend come the online payment company is seeing. >> 20 minutes past the hour, this is your fox news minute. egypt's foreign minister alongside the secretary of state hillary clinton announcing a cease-fire between israel and gaza. ending a more than a week long conflict. he brokered a deal set to take effe

also if you look at hewlett-packard, one of the worst performers the s&p 500.oost. some of the biggest gainers in the session, united technologies, the big companies doing very well in this rally today. let me bring this one up, chipotle grill, one of the biggest winners in the s&p 500. an upgrade from a buy rating. one of the biggest oil firms down in texas, express scripts and also your freeport brands, all big winners on today's session. at&t and intel, leaving you with affect hewlett-packard is the best performer on the dow. cheryl: on election day, how do you prepare to invest under the new president-elect? john nyaradi is here to help joining us in a fox business exclusive from portland, oregon. thank you for being here. what factors will do well, let's start with president obama. what sector picks do you have if the president is reelected? >> i think health care has to be a big one. look at obamacare being his signature event. vanguard has a big one. you have the baby boomers getting older, health care will be a big winner under president obama. cheryl:

. >> [ unintelligible ] >>> hewlett-packard stock will start trading again in less than 30 minutes when the markets open this morning opening at a 10 year low the fallout after the company revealed it is the victim of a five billion dollar fraud as we first told you yesterday morning chief executive meg whitman announced british company hp bought a year ago used accounting tricks to inflate its value, hp paid 10 billion dollars for that company. whitman says the company was only worth half that price. you want to stay with abc7 morning news we are going live to jane king at the new york stock exchange to see how the stock for this palo alto-based company is doing today. >>> san jose food bank is still short the up in of turkeys it needs to fill food baskets. we've been telling you about sacred heart for several days. today volunteers will hand out the last of 4200 food boxes. organizers say they still need 200 more turkeys to meet all demand. to find out how you can help go to abc7news.com click on see it on tv. >>> 6:07. on a day like this you are going to want traffic and weather a lo

>>> hewlett-packard's billion dollar bad buy is affecting wall street this morning. >>> welcome back to you. a live look outside san francisco this morning. that's a pretty shot. >> i like that. >> got to love our control room. a lot ahead. 4:46. the fda has approved a seasonal flu vaccine. the vaccine produced by the swiss drugmaker novartis is used making animal cell technology rather than traditional chicken egg method. the fda says it is faster than egg-based production and could build stockpiles in the event of a flu pandemic. it is approved for people 18 and over. >> hp's monumental announcement it lost $9 billion caused the dow to close down yesterday. no shocker there. for that . and for a look at how the markets are faring, we go live to cnbc. happy thanksgiving each, sema. >> happy thanksgiving eve to you as well. we did lose a little bit of steam yesterday. after fed chairman said the fed doesn't have tools available to offset the impact of the economy going other the fiscal cliff. also taking a hit from hewlett-packard which fell to a ten-year low after announcing it took

hewlett-packard or steve jobs. the seats we plant brings the vast forests of new products and new technologies and new patents in the future. that is where we have to -- we have to keep our eye on the main thought here. that is the discipline, the imagination, and the investment. that is what makes california -- that is why people are still coming here. they're not staying in colorado, i am sorry to say. they're right here. [applause] >> just briefly, setting aside plunder for a moment. >> i am sorry about plunder. it is a big part of wealth creation. >> could you talk briefly about your turn initiative? >> it is going well. mike rossi is leading the charge. i have met with what i think will be the next president of china. we have delegations from china to come here. we're sending delegations there. this is not just business as usual. we're getting detailed committees and proposals, a couple of the key states. we want good coming this way. we want good going out way. -- goods coming this way and we want goods going

, a second day and a row, hewlett-packard at 1242 up 4%. they get clobbered on wednesday. remember that following the massive write-down and the accounting concerns which was a big story that we will follow. take a look at dell. stock is up 5%. you got to hit them. ibm stock is up 1%. a good day for technology. really good day for the nation's retailers. these stocks flexing their muscles as black friday gets underway. many stores open last night. some 8:00 p.m. last night. green arrows, walmart look at -- 1% and also home depot, costco, those stocks moving higher and home depot hitting new highss. later we will talk black friday and the holiday shopping season with macy's ceo terry lundgren. quite a scene at macy's flagship store in new york. people rushing to the stores. the risk on trade is alive and well with energy and crude-oil futures higher by 1%. there is oil at $88.20. i wanted to show you how your markets are doing as a move to the last hour of trading. let's get to the floor show with traders standing by at the new york stock ex

a particularly rough quarter for hewlett-packard. an accounting scandal is rocking the company and the stock. the tech giant is taking a $9 billion write- down due to bad accouting by autonomy software the british company hp aqcuired last year. autonomy's founder denies the charges. hpq stock fell 12% yesterday. h-p ceo meg whitman said an internal investigation revealed "serious accounting improprieties" and "outright misrepresentations" by autonomy. this makes 5 straight quarters of large declines for the tech company. what's being called the most lucrative case of insider trading ever has been uncovered by federal authorities. the sec is bringing charges against mathew martoma for making more than $276 million. the case dates back to july 2008, when martoma allegedly learned about the results of a clinical trial of an alzheimer's drug a week before the data were released to the public. martoma made a massive profit by selling stock he owned in the elan and wyeth drug companies, as well as shorting those stocks. the sec says martom

. >> let's get a market flash hewlett-packard falling. >> higher by nearly 2% today. even after several firms downgraded the stock following the rough ride yesterday that came after an 8.8 billion dollar write down. h.p. says there were serious accounting impropriities while autoonomy says the company was destroyed by mismanaging at hp. >>. >>> we are still short hewlett-packard. this is a board that i think needs to do rigorous self examination. until we see a mobility or tablet strategy this is a company that will continue to be what we call a value trap. >> what are the options markets saying about where hewlett-packard goes next. >> yesterday some might have been thinking they would try to kitchen sink it trying to set the hurdles so low it would be easier to step over it. traded much above the average daily volume yesterday and on a day that was very light we traded 30% less. call volume did trade about two times. i think people are making cautious but speculative upside bets. >> would you weigh in? >> there are plenty of other places to put your money. >> you ha

hewlett-packard taking the stock down. dagen: while you are down in turkey watching the parade this thursday, retailers will be loading of your e-mail box with so many offers. are they worth it? take a look at oil prices and how they are holding off today. somewhat lower. maybe some reaction to the news that connell was talking about. we will be following that and so much more straightahead. ♪ ♪ [ engine revs ] ♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] lease a 2013 c250 for $349 a month at your local mercedes-benz dealer. dagen: breaking news. first response to the former hp ceo. for that major setback at the company that came out this morning. connell: adam shapiro is on it from the newsroom. >> a potentially billion-dollar fraud, for lack of a better term. let's get straight to the comments. he is stunned and disappointed to learn of the problem. the du jour -- to diligence

. >> heavyweight dow component hewlett-packard hitting a .akistan are only fo on the floe nyse to find out why. sandy. sandra: not a good day, take a big hit. competition heating up in the pc business in hewlett-packard shares suffering as a result. take a look finishing down about one .5% on the session down at $13.61 per share. hitting a 10-year low. just a penny off the low. volume not significant, but two-thirds of the average daily volume. a little bit of news, lenovo is expanding market share. most importantly over hewlett-packard computer shipments and that is really weighing on the dow components today. thank you guys. david: sandra smith, have a fabulous weekend. liz: s&p futures closing right now. let's go back to cme group on this friday, how does it look? >> it looks like everybody covered, we rallied a little bit into the close. healthy going into next week even with all the uncertainty. we don't see any negativity coming out next weekend with the fiscal cliff business. if we don't do the parties say we are off the table right no

david: hewlett-packard plummeting after financial fraud in connection a recent acquisition, could itrpaid by billions of dollars? all the latest details straight ahead. >> i am robert gray with your fox business brief. u.s. prosecutors have charged former hedge fund manager in a $276 million insider trading scheme. with the alleged illicit activity taking place, he was an affiliate of sec capital. a spokesman said he and sec are confident they acted appropriately and will continue to cooperate with the government's inquiry. chevron has filed an ethics complaint against new york state comptroller. the oil giant told fox business receive at least $60,000 in campaign donations for backing environmental lawsuit case against chevron in ecuador. shares of salesforce.com have been higher in after-hours. investors like the ful full-year outlook and the forecasted it offered for next year. that is latest from the fox business network giving you the power to prosper. can i help you? i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a h

shares of hewlett-packard on the back of the story brian mentioned, currently a ten-year low and now down 54% year-to-date. we are going to break down all of those headlines for you in just a minute. but first, kate kelly for details on what is, by the way, the biggest insider trading case ever, right, kate? >> it is certainly being presented that way, mandy, i guess we will see how things go in court. yes, renewed focus own sac capital today in light of federal and sac lawsuits against a former employee there. matthew martoma is alleged to have used illegally obtained if information about a drug trial to bail out of two big pharmaceutical stock positions in a hurry. it raises renewed questions as well about what sac founder steven cohen knew about the traced, particularly because a complaint detailing how the hedge fund owner arranged the stock sales with martoma over the weekend and did them essentially in secret. the government appears to be banking heavily on the deterrent affect of these these cases. with enforcement chief saying an hour ago bet october odds your phone isn't tap

also, we will look at hewlett-packard second day in a row as we deal with the shortened trading week on wall street. >>> it is the last full day of trading this week. scott mcgrew says the last full day for investors -- hewlett-packard stock. >> the latest implosion. the palo alto company shares fell 12% tuesday in very active trading to close at lows we haven't seen in a decade. this, a day after ceo meg whitman says hewlett-packard had been tricked when it bought british company autonomy last year. hp alleges autonomy lied about its financials. a charge one of the former officers at autonomy denies. a disaster big enough that in any other company it probably would have forced the ceo to step down. at hp, that's about the last thing the company needs. because ceos getting fired or stepping down is one of its biggest problems. laura mentioned a shortened trading week. no trading tomorrow because of thanksgiving. let's get a preholiday check from reporter live at cnbc headquarters. good morning. >> very good morning to you. stocks weakened after the fed chairman said the fed doesn't h

know you mentioned many of the important ones caterpillar murder all of the old yet the only hewlett packard's another great one. very complicit in the israeli occupation and we're seeing more coalition led efforts to for example pledge that that we're going to say she will not purchase our hewlett packard technology as long as you let accurate is complicit in you standing up to. another very important line is soda stream which is a settlement made product this is a product produced primarily in the illegal israeli settlement and what it does is it turns tap water into soda water basically and it's actually heavily marketed now in the holiday you know christmas shopping season and so there activists around the country and in fact around the world that are saying do not buy soda stream in during this shopping season and fact boycott it spread the word and what's very important about boycott is not simply to have a a laundry list of things that you personally won't buy but to use this as a ray of educating people about the israeli occupation about things and think do about the ways in which we a

a printer used to be nothing but a printer it's amazing that the company that makes printers hewlett packard's doing so poorly considering the only thing that any of these companies competence was a printer this is amazing the even the printer company is going out of business because of too much printing the h.p. deal you know with autonomy perfect example even larry ellison or over oracle when the deal was going down said this is a fraud you know it's an eight billion dollars fraud it was signed off by the accounting firm number accounting firm rating agencies investment banks regulators terrorists biggest terrorist in the world accounting that these accounting firms need to be severely punished now as you said did lloyd look at the books of autonomy and and said to h.p. yes find to buy it for eleven billion dollars well looking back to another headline max a short seller saw autonomy's problems this is john jim chanos and while alleged fraud at autonomy may have been a surprise to hewlett packard it's auditor's bankers and its executives it wasn't too short seller jim who in july two thousan