You voted and said simon baker. The british accent. Thats what it is. At least its not the hair style. I dont argue with people with british accents as a rule. I think most people agree. Oracle, i like it. Joe . Igt, off the casino comments. Josh brown. Dont sleep on this thing. A good trade, 8 up. Have a great day. Interesting, three hours until the market closes. See you tomorrow. And scott teed it up perfectly for us. A fascinate is hour here on the east coast. It is still election day in italy. Now fearing gridlock, coming to rome, forcing a drop in the italian market. There you see the little slide, not so little, at the italian market. It sort of trickled over into the u. S. Markets. As we countdown to march 1st deadline day for massive spending cuts out of washington. The dow was less than a hundred point from an alltime high but these two issues have now set the bulls back in the u. S. In the past two hours. The industrials now down about 12 point. Josh h john harwood is in washington for us. We start with Michelle Carusocabrera in rome. Tyler, the italian election is not turning out as Market Participants had hoped. They expected at this point we would have conclusive results out of the i tal yn election. We do not have conclusive results at this point and it is possible that italians may have to vote again for a new Prime Minister if we dont get an answer in this round. Heres what the markets thought would happen. They thought a guy named louigi berosoni, who most americans havent heard of, would win. And that silvio burr burr le y scony would come in 1ekd. He may not have any seats in the government. The mario monti part is crucial because he was supposed to team up with the first guy, louigi, to form a government. That is not the plan, that not happening. What happened in the next 24 hours is impossible to know. What is truly i amazing about this is silvio, many thought he would never come back, this is the guy with numerous sex scandals, tax evasion, hes been convicted four times. He wants to be in power partly so that he doesnt have to go to prison. Take a look at what happened when he tried to vote yesterday or when he did vote yesterday. A group of women, the minute he walked into the polling station, began protesting by ripping off their tops. They had painted on their breasts, bear breasts and bare backs, bosta silvio and were screaming, enough of berlusconi is what they were saying. They were tackled by police, taken outside. Berlusconi looked at them and said, relax, life isnt that tough. We saw the italian market pull dramatically. Way off of its highs. We will see, sue, if we get any clarity by tomorrow morning. The markets would certainly like to see that, unbelievable michelle, thank you so much. Lets take a look, as michelle mentioned, stocks swinging quite wildly today. Right now dow jones off at 13,984 ppt 36. The markets bell weather is trading down about a tenth after point at 1513 and change. Nasdaq is up 4 and volatility index, fear index is up 6. 5 . Gold market rebounding from recent falls. Right now, gold is up. Down 9 in the lot of three months, though. Silver, platinum, palladium, copper, also bouncing back from last weeks selloff as you can see. Mary thompson is on the floor to describe what is going on. Michelle handicapped it for us. This is trading italian style. This is what we call on monday. It looked promising. Future is up. In fact du jones industrial average hit its highest level since october 2007. But then you have headlines crossing about berlusconi taking a lead within the italian senate. And that causes the selloff. Not only the dow but sa p 500 a well. We saw the impact most notably into the dollar. And excuse me theres the dollar right there. I got ahead of myself. But treasuries also impacted. Keep in mind that italy has one of the largest bond market in the world. So there are can concerns about how this disrupts payment and the physical progress they have made. As a result, you saw fly back into treasuries. Yield on tenyear hit 10 and then pulled back from there. We saw the reaction from the italian markets and saw a continued rotation into markets. As investors seek an option from the treasury market because of concern about a bubble in the bond market. Weve seen continued strength over the last ten days on a relative basis into utilities and telecoms and Consumer Staples as well. They hit an alltime high earlier today. Paying a nice dividend so investors have been putting money into those as well. Thank you very much. Appreciate it. See you later as well. Auction day in chicago. And we have twoyear notes going off the board. How about we do, ricky . This is a surprisingly weak start to the auction process. 99 billion in total. 35 billion twoyear note, yield, 2. 57. Thats right around where the wi market was. 26 bid, offered 25 1 2. No problem there. If we look at indirect, 22 , a little light versus 28 ten auction average. So why was it disappointing . Ill tell you why. Because the bid to cover was 3. 33, tenauction average 3. 83. Weakest bid to cover in 19 months going back to july 11. That makes this one a hook. And average grade for the first of 99 billion supplies. Sue, back to you. Surprising given what is going on in europe. Thanks, rick, very much. Lets bring in director with oneill securities. And joining us, from cko financial, kenny, we start with you, when michelle was handicapping everything this morning, it is unbelievable. Our market is down 23 points. Yes. And it is unbelievable the italians would reelect Silvio Berlusconi aefr everything theyve been through. There was a euphoria that maybe there t would be between monti and bersoni. Now the. Does that mean the European Market are more important than the domestic situation or not . I think for today, certainly European Markets are more important because the sense is what will happen in italy and is he rolling back the measures that mario monti put in place. I think there will be unsettling today because of that. We will see what happens tonight, if we get an answer. Then tomorrow, the focus will go back as we get closer to friday, the focus is all about us and sequester and all that. But i got to tell you, i think the market is pushing to the side. Would you agree with that . They are not panicking oversee quester. It doesnt seem like theres that fear that was there before. Well, youre right. And kenny is right. Theres not that fear yet, sue. Though we are seeing us near multiyear highs and striking distance of double digits. There is fear representing the long end of the curve in the treasury. We saw them bid the treasury. One that Berlusconi Brom bomb was dropped. And as chef knows, when things are overcooked, good things cant happen. So we will see some skiddish traders in the pits behind me. Really looking at washington, looking at berlusconi, a lot going on. This is a big, big week, sue. Okay, so i was going to ask you how you would trade it. But you are saying take profits, get prepared. You are taking money off the table right now . We certainly are. We are putting out more and more protection via vix right now. We have protection for the client, due to the fact we have something out of italy. That is a curveball. We saw that type of drop. We saw the drop in the s p, that could be the icing on the take this week. I think we will good 1490 i think is what we will test. So we are in this 1490, 1525ish range and we will be there until that there is that much more clarity. Thank you very much. Ty, up to you. Another story that jittery investors are watching, down in washington. They just referenced it moments ago. It is especially true, a New York Times article saying republicans would hit steep cuts hitting the pentagon. Here is how the Defense Sector is fairing right now. Shall we take a look if we dont have that, we will bring it to you when we do. John harwood, live in washington. Hi, john. There is no more clarity around this budget sequester situation than there is about the italian elections that michelle was talking about earlier. Youve got many republicans as well as democrats saying, either publicly or privately, oh, its not that bad. If youre a democrat will it cut defense. Some say okay, itll cut spending overall. Thats fine too. You have president obama with public pressure trying to convince the American People that bad things are going to happen and put pressure on republicans. He also sent senate remarks in the morning to the white house a way out for both sides. Democrats, like me, need to acknowledge that were going to have to make modest reforms in medicare if we want the program there for future generations and if we hope to maintain our ability to invest in critical things like education, research and infrastructure. But we also need republicans to adopt the same approach to tax reform that Speaker Boehner championed just two months ago. What he is talking about there is the socalled grand bargain weve been looking at and hoping for. For the last two years. But anybody who bet on that happening would long since have gone broke. We are going to have to see whether or not the reaction to the budget sequester and effects on constituents whether it is air travel delay or natural parks or furlough of defense workers would put enough pressure on members of congress to come to the table and make an agreement where both side get ground. Tyler. Thank you very much. Meantime, japanese air carrier ana cancelled another 1700 flights between march 31 and may 31 because of the grounding of the boeing 787 dreamliner. Boeing shares lower on that news today. Those shares have taken a hit in recent weeks because of the ongoing battery problems plaguing and grounding that aircraft. 7571 the price for bowing right now. Down about 2. 5 today. Since a fire on a parked dreamliner at bostons Logan Airport on january 7th began this cascade of troubles for boeing and the 787. Monday is a big day for analyst calls on wall street. Lets analyze the analystes with Jeff Killburg and we welcome back from out in chicago. Jeff, good to see you. Lets talk about moving capital 1 from from the stiffle list. And disappointing Fourth Quarter results and last year with a diluted divestiture, thats what they say. Lets look at shares year to date, down 10 and stifel put it in double. I agree with this. Being proactive, for the analyst community, and jumping off the page in their note, tyler, is that they presented a graph with consumer con if Consumer Confidence linked to their growth. And there is bifurcation with good earnings. Right now, expected volatility. I think you will pull back and they pull it off the list for now. Yeah. Basically flat stanley for the last couple of years, capital one. More than anything, we like ox dent yl as a Free Cash Flow story. Shares have seen a nice run up in the past three months but over six months they are off by about four and a fifth percent. Do you like this upgrade . No doubt about it, they are very insulated to the fl fluctuations in oil price. And they actually stated in their note, even if brent, not crude, even if brent goes down to 89, significant drop, there is still cash flow positive here. If you want to be in oil, this is one of the companies, specific company, to be in. I want to wait for a pull back. I think is too much too quick. Upgrading to buy from neutral increasing price target to 130 bucks on quote improved visibility into eps growth. Take a look at shares over the past month. Already up by 12. 25 , jeff . I like this upgrade. If you look at the flu season, a nice boost. Think about it, ty, this is a big generic drug company. How do they compete, expand margins in 2013 and 2014 . By accumulating companies. They are picking up a lot of small companies. They just picked up a company, about 3 million over the uk. So they are doing right things. I like this upgrade. Im on board. Two out of three, ty. Thanks very much. Sue, welcome back from your week off. Good to see you. Good to see pup thanks so much. Coming up, as we continue, one of the most dramatic starstudded corporate trials, perhaps ever. Today, macys Ceo Terry Lundgren in the battle with jc penney over Martha Stewart. And what happens in vegas may be keeping visitors from vegas. We are talking about a terrible farm wave on the strip and the impact it is having on tourism. Check out zynga shares today. Up 11 . One of the days biggest winners. We will tell you why when we come back. For the rx and lexus. This is the pursuit of perfection. How sharp is your Business Security . O can it help protect your people and property, while keeping out threats to your operations . Its not working yes it is. Welcome to tyco integrated security. With worldclass Monitoring Centers and thousands of qualified technicians. Weve got a personal passion to help your business run safer, smarter, and sharper. We are tyco integrated security. And we are sharper. Lunch. Im josh lipton. Check out the out the pop on the descent volume. The companys ceo will present at Morgan Stanley tech media in san francisco, scheduled to present right about now, a live webcast and replay will be available, the company says, on its website. Sue, back to you. Thank you very much, josh. Macys Ceo Terry Lundgren taking the stand against rival jc penney in its rivalry over Martha Stewart. Crossexamination is set to start this afternoon. Lundgren arguing they have the exclusive right to sell Martha Stewart product and a deal with jc penney is conflict of interest. Martha stewart signed a deal with jc penney to open Martha Stewart mini stores this year. Yc penny is off 1. 5 . Ty . Surging 7 after the car rental companys Fourth Quarter earnings beat analyst expectations. Hertz forecasting earnings for 2013 because they figure they will raise prices. Stock is up 52 since announcingity dollar thrifty acquisition last august. Barnes noble also way up today as you will see in a moment. There you see it, up 1. 54. Chairman rizzo says he want to buy the companys Retail Business but not the nook. The book company has been selling recent years as companies switch to digital books. Barnes noble shares launched 2 since it launched the book ereader. Amazon and maker of the kindle is up 388 . Sue . Wow. Thats quite a move. Lets look at shares of microsoft. They are moving slightly to the down side. They are off one penny at 27. 75. Stifel nicolaus believe they should be split up into two areas. John ford john fortt is in california for us. What are the chances of this happening, john . I dont think the chances of this happening is very good. In my conversationes with microsoft over the last few months, it is something that i keep bringing up, particularly because office, which is the real Profit Center in microsofts business, not cell phones, not xbox, not even windows that much at this point, it is office in the business division. They dont have a version of ofgs for ios or android. Thats one thing that stifel points out, advertising that microsoft is lead leaving about 2 billion on the table. Microsofts explanation is, hey, look, we are trying to drive the Windows Mobile strategy. But they are hoping people buy windows phone. It works better with office than other devices do. Thus far, we havent seen that working. Does microsoft switch their position, tactics, if that proves not to bear out . John fortt, thank you very much. A civil suit against bp starts today. A lawyer for for the plaintiff says bp should be held responsible because they were more focused on costcutting than on safety measures. Most observers expect the case to be settled before a verdict is reached. Potential liabilities here could stretch into the tens of billions of dollars. Bp shares up for than 2 since the spill in april of 2010. They currently trade lower on the day, down 97 cents at 40. 86. Because of new restrictions and lawsuits in the u. S. , Tobacco Companies have been looking abroad for new blood and new money. But they may have just hit a big wall in russia. See what Vladimir Putin is doing to stomp out the tobacco companys profits. And something to worry about beyond losing money in vegas. Jane wells is on that frightening case. Jane . Hey, tyler. Even when youre nickname is sin city, murder can be bad for business. Is las vegas suffering at all from a high profile triple murder . Well have that after the break. T that has changed the modern world. Would define you as an innovator. To hold more than one patent of this caliber. Would define you as a true leader. To hold over 80,000. Well that would make you. The creators of the 2013 mercedesbenz eclass. Quite possibly the most advanced luxury sedan ever. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. Through mercedesbenz ive always kept my eye on her. But with so much health care noise, i didnt always watch out for myself. With unitedhealthcare, i get personalized information and rewards for addressing my health risks. But shes still going to give me a heart attack. Thats health in numbers. Unitedhealthcare. Omnipotent of opportunity. You know how to mix business. With business. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above. And still pay the midsize price. I could get used to this. [ male announcer ] yes, you could business pro. Yes, you could. Go national. Go like a pro. Europe was seen as ground for tobacco but russia says, wait. They will start banning smoking places this summer. Putin is trying to raise Life Expectancy for their economy. Smoking will be banned in work area webs subways, cafes. Estimated 40 of russian adults smoke. Lets look at big tobacco stocks and how they are doing today. Mixed picture there. Two of them higher. Three of them lower. Sue . Ty, las vegas has been hit with a wave of Violent Crime in recent months. Five incidents alone near some of