The Company Still have room to run . And city, the big slash. Knife coming down on 1,000 jobs. The cfo is set to speak about the shakeup right now and we will have the very latest on this very widely held stock which has been moving higher tod today. We have a rally on our hands despite some downward pressure in apple. Two of the biggest names in the most widely held stocks around, citi and apple topping the news this hour. Headlines arent good. Apple right now is down about 4 . Back in bear market territory, down 22 from their historic intraday high of 705 set back in september. Right now shares are trading at 551. 33. Bob pisani joins me on the floor of the nyse. It started with this idc report citing the fact that they would lose their dominance in the tablet market in probably the next couple of years, and then the margin requirement story. It is a little complicated. I just want to address this issue first of the rally that weve got because i think that is sort of whats moving the overall market. There is some vague talk in washington that there may be some republican members starting to break ranks with the leadership on the tax issue. Theres talk now that some republicans might be willing to accept higher taxes for the wealthy. This would be a breakthrough. Were monitoring that. Now to what sue was talking about on apple. There are some firms raising margin requirements. I think the main catalyst today was an at t Investor Conference where executives of at t gave sales figures for smartphones for the first two months of the quarter that basically implied sales will be flat for the quarter compared to the same period last year. This includes smartphones, samsung as well as the iphone. The concern is that iphone sales might disappoint a little bit here. Ipad shares may be on the weak side of the tablet market. Citigroup laying off 1,000 people and the financials are the bright spot of the day. Very depressing story, frankly. It is at this time year to lose that many jobs. Thank you, bob pisani. Well cover apple indepth later in the hour. It is worth taking another look at citi. Trading up almost 6. 5 at 36. 49. The banking giant slashing 11,000 jobs, taking up to 1 billion in charges. The chief Financial Officer is speaking right now and Kayla Tausche is listening in to that Conference Call. Citys cfo is just ending his prepared remarks right now at the Goldman SachsFinancial Services conference but he mentioned those layoffs right out of the gate. Addressing the mornings announcement which he said is straight to the heart of citis mission which is getting back to the basics of individual banking. Among those 11,000 job cuts though, more than half will take place in the Consumer Banking business abroad. The bank will exit regions like pakistan and paraguay that havent been profitable. 1,900 jobs will come from its institutional clients group. Theyll start to reassess coverage of certain sectors and geographies in that group. It will close offices underutilized, revisit its Branch Strategy in metro areas including those in the u. S. This is a broad overhaul of strategy. We have some 350 of those layoffs, too, taking place in citis socalled bad bank citi holdings. The cfo said the bank will move swiftly to sell those assets but they still face two problems valuation of businesses and financing for these buyers that are interested. The financing caused them to remain directly exposed to a lot of the bat businesses like mortgages. Theyre trying to get out of them as quickly as possible but we expect theyll face further writedown wlz they do that. Thats a big strategy for this year as well. Kayla, thank you. Lets talk more about this with editor in chief at american banker. The new ceo is taking a broad brush approach to this. Hes moved quickly and guys on the floor who trade this stock are giving him some high marks because hes making some decisive moves. Are they the right moves . I think they are. Citi has gone in this direction already but i think theyre trying to show theyre speeding things up here. On the scale of citi group, it is not a big move, up 4 . Were not cheering because anyones losing a job but in terms of managing this huge globe spanning bank, he has to go down this road. Hes getting pressure from individual investors to speed things up. Neil, well talk more about this later as well. Were up 125 points on the Dow Jones Industrial average and a lot of it has to do with whats going on in washington right now. It is really very, very interesting, sue. The reason the s p is relatively quiet there is that other stock were going to talk about, that would be apple. To washington now. The soap opera we call the fiscal cliff. Before we get to our chief washington john harwood and the president is meeting with another grouch ceos, i need to start with eamon javers on capitol hill where lawmakers are skipping down early for a long weekend. Eamon, wasnt thanksgiving just a couple weeks ago . It was. Let me check michael ichaey cal. You see rank and file members of congress leaving the capitol. They are done for the week. Theyre headed back loam to their hometown districts. A lot of folks focused on this negotiation right now but the reality is that the negotiations are taking place among just a very few, very high level people. I was talking to a few rank and file members yesterday who said they were frustrated there is not a whole lot for them to do, they are just sitting around here waiting for some breakthrough in these negotiations. They want something to do on the floor, in their offices and there is not much for them to sink their teeth into. Now theyre going into their district. Leadership is going to stay here and continue these negotiations. Speaking of wasting, speaker of the house john boehner came out earlier today to say hes waiting, too, on a response from the white house to his proposal. Take a listen. We need a response from the white house. We cant sit here and negotiate with ourselves. Our targets and framework are things that we can all agree on and its exactly how we approached our discussions in the biden group, my discussions at the white house a yearandahalf ago, and, for that matter, in the joint select committee. One interesting note here is how much businesses and ceos have become the political football here. Im told that yesterday congressman kevin mccarthy, the republican majority whip, was on a Conference Call with ceos and he urged them to get involved and tell the white house in all their frequent communications with the white house that they need to tell the white house to Start Talking to house republicans. So ceos in the Business Community right in the middle of this negotiation. Eamon javers, thank you. John harwood has the latest on mr. Obamas big meeting with some of those ceos. John . The other way the ceos are in the middle of this is the president appeared before the Business Roundtable today as part of his effort to continue rounding up support from various constituencies for what he calls a balanced approach. One of the things he pressed was a priority that the head of the Business Roundtable, john eng r engler, has suggested which is a longer term fix to the debt ceiling problem. Remember that it was a catastrophic standoff in mid 2011 that caused the downgrade in u. S. Credit. President said hes simply not going to negotiate in the negotiating process that results in the same kind of standoff. Here is the president. If congress in any way suggests that theyre going to tie negotiations to debt ceiling votes and take us to the brink of default once again as part of a budget negotiation . Which, by the way, we have never done in our history until we did it last year. I will not play that game because weve got to break that habit before it starts. So what you see reflected in that statement, tyler, is the president s feeling that hes got the upper hand having won the election and also that many in the financial community, the Business Community, are very sympathetic to the argument that he was making just on that point on the debt limit. John harwood, thank you very much. With lawmakers now leaving capitol hill to start a long weekend, whats the likelihood that a divided congress can get a deal on the fiscal cliff before we hit it. Represents tim walls is a democrat from minnesota who filed a petition yesterday to force a vote on extending tax cuts for the middle class. Congressman, good to have you with us. Thanks for having me. I have to say that the optic beioptics of congressman leaving the capitol right now for another long weekend is extraordinary poor. It is disappointing and to many it is outraging. What do you say . I think it is outrageous. I couldnt agree with you more on that. These are good folks. Each one of us was elected to represent 650,000 people. I heard it i think everyone of the other floor members heard it theyre tired of the bickering, theyre tired of the cliff talk. They want to us compromise and get something done. I proposed yesterday lets find the xron ground. We all agree that tax rates should not go up on folks make makeing 250,000 or less. A family. When Congress Goes home today for a long weekend, who pays for the travel . The taxpayers pay for it. They just flew us out on monday. We took two votes. We didnt vote until 6 30 the other night. Not Holding Hearings or moving things forward. I think there is value in the public hearing this discussion. Im one of those who say, yes, this has to be a balanced approach. Tell me what you want for us to do but i dont like the idea that i was elected and my election certificate is as valid as anybody elses here not to have a say in this. Id say to my colleagues, lets us, the peoples house, take back control of this argument, come together and put something forward. You and others have signed on to a socalled discharge petition that would cause the house of representatives to take a vote on the bill passed in the senate some time ago that would extend the socalled bush era tax cuts for people earning less than 250,000. It requires 218 signatures. That means youve got to get some republicans to sign on. Do you have any indication that any people will break from Speaker Boehner and sign your petition . I think so. I know one for example, my friend walter jones down in north carolina, said that hes open to it. I think i need 41 people now. Weve got 177. I need 41 people to come forward and i think whats really interesting about this is, republicans arent violating any pledge on this. They are assuring taxes dont go up. I see no reason why we cant move this forward. We all know that these tax cuts will be extended for this group, certainly. Now if you think the top 2 should be extended, lets have that debate but we cant agree on that. And so i think it is horrible that people are filing out of the capitol, theyre going to go home. My point on this discharge petition is go look those people in the eye and tell them they dont want i want the big deal. I want to be very clear about that. I want the big deal. The 4 trillion in cuts, simpsonbowles type plan. Im going to be one of those guys. But in the absence of that, lets give people some certainty at christmas, lets give the markets that youre talking about some certainty to know that this is done. I think you would have a lot of company amongst taxpayers who are as outraged as you seem to be that congress, 435 members of the house, are going home at the taxpayers expense on this day with the fiscal cliff not resolved in any meaningful way. Congressman walz, thank you very much. Yeah, i really appreciate it. Shares of Freeport Mcmoran the worst performer on the s p. Shares moving lower here. After the Conference Call hardedged questions coming from one of its major shareholders. Cio blackrocks Natural Resources team abby hambrook saying they should put this issue to shareholders an they feel like they have broken Investors Trust by diversifying into energy with these 9 billion deals. Back to you, sue. We are just off the highs of the day, up 130 points. Well continue to follow the markets for you. Plus, Emergency Landings and inspections by regulators. Growing pains for boeings new dreamliner. Plus, netflixs deal with disney. Is it really a game changer . Phil lebeau and Julia Boorstin all over those big stories. Phil, you first. Sue, right now as we speak a Technical Team from boeing is in new orleans looking at that dreamliner after the Emergency Landing. Well have the latest in just a bit. But first out to julia in los angeles. Netflix says the company is taking a big step forward. Well tell you how and how much it is worth after the break. He loves risk. But whether hes climbing everest, scuba diving the Great Barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and being ready, no matter what happens, which isnt rocket science. Its just common sense, from Td Ameritrade. Which isnt rocket science. I have obligations. Cute tobligations, but obligations. G. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. Were keeping an eye on dow component boeing. Right now the stock is up 23 cents,. 33 . One of its new dreamliner jets making an Emergency Landing. Regulators are order rg the entire fleet of 787s to be inspected for fuel line issues. Some teething problems perhaps or is this something more serious for the company . Our phil lebeau is taking flight for us today in chicago. Most people ive talked with in the industry believe this is more a case of teething problems as boeing continues to ramp up production for the new dreamliner. Lets talk first about the Emergency Landing in new orleans. It happened yesterday morning. They made an Emergency Landing after the pilots reported a mechanical problem on the plane. This boeing 787, by the way, was delivered to united just two weeks ago. It is relatively new to service. There is a Technical Team in new orleans working with united. We should be getting an update some time today in terms of what they found. Meanwhile, the boeing dream liners are all undergoing an inspection. We expect the faa to issue a requirement on fuel line checks today. Boeing has already asked all of those in service to be checked. Checking for two connectors. Half the dream liners that are already in service have been inspected. When you are looking at how many dream liners are out there, you are looking at fewer than 40 worldwide, three here in the u. S. With united. The dreamliner is built now both in everett, washington as well as charleston, south carolina. At the end of the day this is what we are talking about whether it comes to the ramp up in deliveries. Last december was the first delivery after dreamliner. Five per month is where they are at right now. They need to get to ten per month which is where they believe they will by december of next year. Dreamliner is the key to next six, seven years of profitability. Tyler and sue, a lot of people are watching whats happening in new orleans today as well as some of these other issues with the dreamliner very carefully. The market seems to be voting in their favor because the stock is up better than. 33 . Phil, thank you. Pandora also a big stock to watch today. Shares of the online Music Service getting crushed. Right now down 18. 33 at 7. 71. After the company cut its outlook. Street signs will have more on pandoras future coming up. It is a story we broke right here on power lunch yesterday. Disney and netflix in a content streaming deal. Netflixs shares backing off from yesterdays big pop. This will and game changer or not . Julia boorstin has a closer look for us. Speaking today at the ubs Media Conference, netflixs chief content officer called the deal a game changer as it enters the same distribution window as premium cable channels like hbo and showtime. He reiterated that netflix has no plans to raise its prices in light of this new content. He says the goal is to have the best curated exclusive content and not try to secure all the content out there, and that it is better to have fewer highquality options. He added netflix will invest more in producing its own original shows and will never sell advertising. There was no comment on how much netflix is actually paying disney but sources tell me it is definitely more than disney brought in from starz which is estimated at 225 million. Disneys cfo also spoke at the ubs conference saying the disney evaluated a number of factors and that netflix was the highest value creator for disney and its Family Friendly films so whats next for starz now that it is losing disneys exclusive content . Liberty media does plan to spin off starz early next year. Then the wall street journal stars it will begin conversation with potential buyers. Lirt a liberty and starz tell me they have no content. Julia, thank you very much. There are 7. 1 billion people on the planet. But only 71 of them thats. 000100001 have real power. Who they are and how they influence your investments coming up. Plus, apple drops. Stock back in bear market territory facebook getting liked. Citi cutting thousands of jobs. What traders make of these stock moving headlines. Back after this. I always wait un