Bell. The market down today. Washington is not even close to reaching a deal to avoid the fiscal cliff. We had a triple digit decline today. Here is how were finishing the day on wall street. At the lows, dow was down 189 points. By the close, we came a fair amount of the way back from that sharp decline in the morning hours. Volume very heavy today. Thats how he saw a lot of shifting in the volume for the day. 1. 2 billion shares here. Nasdaq gave up that 29 points at the close and the s p 500 down 13. 25 points. Five trading days left until the fiscal cliff deadline. Seven days until congress is back in washington. Raymond james says hes expecting the santa claus rally. Jeff is with me now also dean from barclays, Peter Anderson and our own rick santelli. Jeff, how can this market rally when theres still so much uncertainty out there . I am surprised the market held up as well as it did today, maria. It had every reason to be down four or 500 points. Historically, the week after christmas its up about 70 of the time with a little over a percent gain. And i think youre going to see that after tax selling gets over as of today. And in terms of the selling that we are seeing already, do you think its partly because people are expecting Capital Gains and dividend taxes to go up regardless . Yeah, i think thats right. Theres still a chance for a solution to the fiscal cliff. Washington tends to work on a lastminute basis. The fact that the republicans couldnt even get together and chose some kind of solidarity even though they knew the plan b wouldnt go through is disturbing. Dean mackey, how do you see 2013 . The positive thing right now sthot Consumer Spending was picking up in the fourth quarter. That was the message of todays data. Business spending is also picking up. The problem, though, is that the economy sill is vulnerable to the fiscal cliff. Tax rates are going to jump significantly on january 1st if nothing is done quickly and that would cause, we think if it lasted, a contraction in the first quarter. So contraction in the first quarter. Are you speccing a recession . We are not. We still think some deal will be reached in the next couple of weeks. And that scenario we think is going to grow 1. 5 to 2 the in the next year. But the risk of no deal is obviously rising. We still think hal happen, though. Rick santelli, what r saying there in chicago . The market was down, but the volume was up big. Maria, like i think the first guest, i would rather impressed by the fact that were down 119 and were done much more in the wee hours of the morning after that vote failed and the i was as shock as all of guests were. Next year, its going to be the same. No matter how this fiscal cliff gets resolved, we would be job challenged. And i continue to think a bright spot is going to be energy. I think energy is an industry that is going to keep on giving, no matter what political turmoil we have. I dont think the politicians will be able to screw up the wonderful nature of energy and some of the new technology and in terms of treasuries, i fully suspect for at least the first half of 2013 youre going to see still historically low Interest Rates. Well, we already know that. Peter anderson, we think theyre going to get low rates. Not because of the fed, marie kra. I think its because the market is smart. Peter, is there a way to invest around those low rates . How do you make money on that . Yes, i absolutely think so. You know, when you play out the different scenarios that can happen besides rick saying energy and treasury is low Interest Rates, there are still in great stocks out there and whatever the scenarios are, if we do go off the fiscal, its going to take some time. And during that time period, youre going to see stocks sell off. If that is one of the outcomes. And as stocks sell off, its a great opportunity to buy your favorite stock. We are anticipating going into the beginning of 2013. And why is that, because of a better economic landscape . Better economic landscape. I mean, you know that the u. S. Economy is doing better. We know there will be a solution. It might take a little more time. Im not going lore a grand bargain next week nor am i looking for the collapse of any negotiations, but i think there will always be a compromise and with a comp mooig mice comes opportunity. Its amazing to me, though, that this is taking so much time. Dean, do you think weve seen an impact to the economy going into 2013 as a result of anticipation and inability on the part of or r on the part of Business Executives to put plans in place, hire new folks because they dont know what their tax rates are going to be, they dont know whats happening in washington . Has it already taken an impact . I think thats fair to say. We have seen Capital Spending be weaker than it would have been otherwise if there hadnt been these worries about the fiscal cliff. I think that the worry, though, that the economy was going to tank in the second half of the year, Something Like 1 that many people were expecting, thats proving not to be true. And the key reason why is that Consumer Spending is holding in quite well. Consumers tend to not to try to forecast in advance whats going to happen. They spend acourting to their income. And income is growing solidly right now. Would you say housing has bottomed . Housing has bottomed. We are seeing housing starts, rising prices are prices, that is a positive factor for the economy right now. And, of course, the corporate sector with so much cash on Balance Sheets is partly behind, jeff, your idea to put money into equity. Yeah, i think so, maria. I think the Energy Independence in america is a huge theme going forward. There are other themes that are not dependent on the policy, as well. This obesity thing with my generation going into the diabetes year, the diabetes stocks, the handle diabetes, i think its a very investable theme with long legs. Steven, let me take it over to you. We had an expiration at the end of the day today. What did you see at the close . As you might expect, we saw enormous volume. It didnt move stocks that much. We stayed within the range of the day. 1422 is as clowe as they ever got. You did see some volatility, but nothing like we saw in the overnight futures markets. You saw enormous volume. But things did stabilize. The technology stocks, the financials, those kind of names. And its been good, like the transports and the utilities are always safe haven. They turned up a little bit, but not so bad. It was a general risk off day, but nothing like the expected coming in. And where do you see conviction, steven, when youre watching all the flows and committed buyers out there . Where do you see the conviction day in and day out. Is there any particular view, the financials . The transports, they have been day in and day out one of your top performers for almost a month and a half now. I guess thats part of the christmas season, but its not usual that they are among your top three sectors and its almost every day. Thats a great point. I dont know if it is christmas, but maybe because of the folks like fedex and u. P. S. And these are among the busiest days. Well, usually with retail sales around, but it hasnt been precise this year. But you know, with the low price of oil, its something that ive noticed here. Gentlemen, thank you very much. Appreciate your time tonight. Well see you soon. Lets send it over to jackie. Over to you. Afternoon, maria. Thats exactly right. All three major stock indices finishing the week in the green. On the s p 500, seagate, they made big moves on the signs that pricing hasnt materially declined in the heart of the dispatch space. And red hat and an acquisition in the cloud space, nike rising on its Second Quarter result. To the down side this week, Electronic Arts and gamestop, both declining on concerns that there will be more scrutiny on violent video games in the coming weeks and months. Micron lower after a wider than expected loss on the quarter. Weaker demand and falling prices for dram, the final issue there. Finishing in the work earlier in the week that the company hired a merchandising ex action from below. Up next, find out who the winners and losers are. And then, in case you missed my interview with democratic senator ben carden yesterday, what are you going to give on, senator . To get this done . Well, we want to balance the pros. We know you everybody is saying that over and over again. Why dont you explain to our audience what that means, sir. First, weve agreed to 1 trillion of domestic spending cuts. Thats already been done. Thats done. Were talking about the here and now, not whats done. He wouldnt tell us how he plans to get a deal done. Coming up, we will hear from the other side of the aisle. Hopefully representative mulvaney will rise above. Tdd 18003452550 when im trading, im totally focused. Tdd 18003452550 tdd 18003452550 and the streetsmart edge Trading Platform from charles schwab. Tdd 18003452550 gives me tools that help me find opportunities more easily. Tdd 18003452550 i can even access it from the cloud and trade on any computer. Tdd 18003452550 and with schwab mobile, tdd 18003452550 i can focus on trading anyplace, anytime. Tdd 18003452550 until i choose to focus on something else. Tdd 18003452550 all this with no trade minimums. Tdd 18003452550 and only 8. 95 a trade. Tdd 18003452550 open an account with a 50,000 deposit, tdd 18003452550 and get 6 months commissionfree trades. Tdd 18003452550 call 18662945411. Lets take a look at who came out on top this week. It was a big day, quadruple witching. Big volume. 4. 6 billion shares here. Dow jones industrial average, 188 was the low. Really, this is the best kind of close you could ask for, maria. Bottom was about 1130. We gentry rose going into the close. We didnt have a big rally, but it wasnt a great day. Right in the middle. By the way, the reid pelosi pressers during the day didnt hurt the markets. The last couple of weeks, weve had great leadership in things like steel stocks, transportation stocks, bank stocks. They were the decliners today. But not that dramatic, as you can see here. How about about people went to . Well, it was a safe haven kind of day, not surprisingly. We saw a bond move to the upside. Gold rallied today. The dollar index all rallied. These are the safe havens. You would expect them to do that today. Despite the poor showing today, much of the rally is very much intact, maria. Here is financials for the week. Up 3 . Theres your rally. Tech Stocks Holding up well, materials and the more defensive names, telecom and consumer staplings again were on the down side. Thats a pattern that weve seen all throughout the month. For the week, take a look at the major averages here. Transports have had a major week. Airlines have been outstanding performers and the railroads have been down, as well. Dow industrial, lagging in the s p, maria, because names like ge and merck significantly underperformed. And you, as well, bob. Thank you so much. Fiscal cliff concerns slamming stocks through the day with just ten days remaining to make a deal and avoid tax increases and springent spending cuts. House Speaker John Boehner says talks will continue. Republicans said they would oppose it if it came to a vote. That includes our next guest, congressman mick mulvaney, republican from South Carolina joins me now from capitol hill. Sir, good to have you on the program. Thanks for joining us. Thank you very much for having me. If a deal is not struck by december 31st. Taxes will go up on everybody. Would you rather go over the cliff than go over the cliff . Honestly, i dont think the two things are linked. If we had voted for plan b last night, no one is able to convince me it would have worked. The president said he would veto it. I dont know why we dont take those folks at their word. You think you would have seen a different outcome last night if the senate had approved what we were looking at. We were facing a symbolic vote that is more than likely to get thrown in the trash. I dont know why we would make such a vote when it doesnt fix the problem. I think we end up going over the cliff. I think the president has plan odd that for a long time. You can go back and look at the process of the negotiations from the very, very beginning and he sends a very powerful message that he would rather see taxes go up and see defense spending cut and thats why were headed. Come on, come on, why would the president want to go over the cliff as part of his agenda . Nobody wants to go over the cliff. We all know its going to result in a recession. Oh, come on now, maria. Hes a left leaning democrat in the white house. Used to be a democrat senator. What are we talking about with the fiscal cli . Youre talking about the end of the bush era tax cuts. This is something the democrats have not liked from the very beginning. Remember back when we tried to pass these ten years ago, the democrats didnt like they because they did nothing for the middle class. Now were led to believe that theyre the protectors of the middle class by protecting these tax cuts . Thats absurd. Plus you have another portion of their party who would love to see the defense cuts go into play. Now they can do it and blame somebody else. We hear what youre saying. Everybody wants to think the president wants to cut a deal. Go back and look at it in a detailed fashion. It is not beyond the likelihood that he wants to go over the cliff in the first place. Congressman, youve got very informed, smart people investing. Investors are watching. Would you like to take this opportunity to explain to them why you and your colleagues in congress cannot agree on anything and cannot get one of the most important pieces of Legislature Done because we are impacting peoples jobs, because frankly, more and more americans do believe you and your colleagues are incompetent. Would you like to take this opportunity to explain whats happening . Are you assuming that plan b would have fixed things . No, not at all. Sthar is that part of your question . Im just wondering why we are five days away, we have five trading days left, you have a few trading days let me tell in the year. You gooit guys have had 13 months to do this, to do a thoughtful plan on spending cuts and revenue and you havent and now were down to the wire. So i think people are scratching their heads trying to figure out, how come i put this person in office to work for me and theyre not. Sure. Two answers to the question. If you were selling your house, maria, and i knocked on your front door and said hi, im interested in selling your house and id like to offer you a dollar, you would kick me out. It would be an absurd offer. Thats where the president has been in these negotiations. Thats one answer to the question. The other answer to your question is why are the republicans still intransient . Keep in mind, im one of the more conservative members of our party. I voted to raise the debt ceiling last year, something i thought i would never do it. I did it because it was part and parcel of the cut balance. Im not interested in taking show votes. Ask me to take a tough vote and i can handle it but it better fix the problem. Youre talking about tax increases and it doesnt make a dent in the debt and deficit. Youre not really doing anything in terms of cutting the debt. Youre just slowing down the growth. Let me ask you what youre going to give on, sir. You have had said that you would cut defense spending. How much would you cut and what else would you give on to get a deal done by yearend . Maria, i dont mean to dodge your question. Im not going to negotiate with you. Im not going to till what my position is. I think, however, that myself and other members of my party, including the right wing of our party, have shown through our actions, always more important than our words, that we are willing to negotiate, we are willing to compromise and were willing to take tough votes, but were only going to do it if it fixes things. Last nights bill doesnt have any spending cuts in it. It was a onesided bill. Again, i dont mean to dodge your question, but youre not the opposing party of your negotiation. Let me ask you this, you are speaking, though, to part of the American People here on this program and they want answers. So, you know, you dont have to answer questions, but thats your prerogative. Let me ask you this, though. Would you vote for any deal that raises taxes . Again, i have done things up here that i never expected that i would do. If i saw something that actually fixed the problem, and not just the fiscal cliff, this is nothing in the greater scheme of things. This is a pebble in the mountain that were dealing with our fiscal situation, our debts and our deficits. If we actually get something that fixes it and thats on the table, ill look at anything. And Speaker Boehner reportedly taking heat about his leadership position. Harry reid said plan b wasnt going to pass in the senate. Do you trust in his ability to find a compromise . Speaker boehner is in a difficult position. If you make the assumption that the other side doesnt want to negotiate, its a difficult position for him to be with. But the broader point, i do not see the speakers position as being at risk. This was not just the conservative wing of the party. The opposition to plan b last night ranged from some of the most conservative to some of the most moderate members of my party. And the support was the same way. Some of the most conservative members of our caucus supported this last night. This was not a leadership issue. This was not an us versus them issue. I think last night people looked at this bill and said this is not a good bill. I dont want to vote for it. That is not a referendum on Speaker Boehner the. When we go over the fiscal cliff, because thats what im expecting, how many jobs gets cut right away . Whats the story on unemployment . I dont know the answer to your question. Ive heard everywhere from 300,000 to 400,000 depending on who you talk to. But keep in mind, the unemployment numbers, you have to stop looking at them unless you take a detailed look at the number of folks that dropped out of the workforce. Keep in mind, obama care comes into effect on january 1st, as well. That will have a drag on job creation. Youre seeing employers pull back in anticipation of that going into fuller effect. I think its going to be a tough couple of months, without a doubt. What a shame, a real shame because its selfinflicted. Congressman, good to have you on the program. Thank you. Thanks, maria. We will see