Cramer and david faber. This could be a very big day in the markets. The day after the attempt to pass plan b in the house has failed. We saw the futures down as much as 200 points. Right now were down 162 on the dow. The s p looking to lose about 19 at the open. Most notely were seeing a spike in vix futures. Its indicating more volatility ahead. Europe, largely taking the cues from here in the United States, and the news last evening about plan b. We are seeing a 1 loss in italy, germany is down by. 9 . Of course, futures as you saw are taking a hit on concerns that a deal will not be reached to avert that fiscal cliff. An attempt by House Speaker boehner to avoid that class and pass the socalled plan b tax bill. That failed. The measure that would have kept current tax rates for those making less than 1 million a year. It never even made it to the house floor. Speaker boehner is scheduled to hold a News Conference about an hour from now. Of course, well bring that to you live. Here we are. Here we are once again. There was no real plan b. There was no real possibility of this. The republicans, the vast majority signed a pledge, they will not vote for tax increase. Who would think they would suddenly turn around and vote for a tax increase. They pledged not to. The speaker said they might. I dont care. Unless its some sort of a plan to show how hes really you know, youve got to negotiate harder. Because look what im dealing with. These guys do you suddenly think theyre saying, all of a sudden were for taxes. No tax increase. They cant do it. You cant twist their arms. Theyre elected. They dont think theyre elected because of president obama. They have safe seats. Theyre not going to do it. Lets stop talking about it. Maybe they can vote for a tax cut. They cant do that either, they hate each other too much. Super bowl. Do you think president obama will go into his inauguration with no deal at all . Is he in charge . Weve kept the charade up for too long. What charade is that . The charade that there is a government. That they agree to things. They react to a stock market plunge and react to furious citizens. But, what, do they react to the goodness of the republic . How long are we going to keep this up, goodness of the republic . Is the last time we had this partisanship. How did that work out . In your view, cramer, are things that much worse today . Even if plan b was taken up in the house, that it wouldnt pass the senate, that president obama would shoot it down anyhow, so plan b was largely inconsequential, are we actually worse off . Does it show the deeper ridge in the Republican Party than anybody expected and were much worse off in terms of thinking about achieving a grand bar bain . I dont think theres a rift in the Republican Party. I think boehner knew this wouldnt pass. Hes not a clueless man. It doesnt look good as a result of having hes a gop. Having gone out there, created this plan b idea its cynical. The economy is down today, and people are losing faith that he can control his party and caucus as much as anybody. He has a commitment to not raise taxes from his people. I think its really, really important to point out in the last few days there was actually a belief, ive been saying super bowl, super bowl, super bowl, its the paycheck. There was a belief something could be done. I think the administration felt there was. And they did start saying, listen, we dont have a consensus, things have regressed. The consensus is simple. The gop will not vote for tax increases, but they will vote for tax cuts. Its not like theyre going to suddenly say, wow they have to wait until people are agreed. Maybe they have to wait for the stock market to be down more. Is it a september 2008 moment were facing here, thats when House Republicans voted down the First Bush Administration plan for a bailout . When we dropped 778 points . Are we sort of at that moment right now . Your atm machine wouldnt work that monday. There would be lines around 9 corner from almost every bank. We were in a 1932 situation. Because of Everything Else around us. We were focused on congress ineptitude at that time. And we got more scared by their unwillingness to pass the t. A. R. P. I have tremendous faith in our economy. We had great numbers yesterday. We had a good head of steam in housing and durable goods. Better than expected at least. I think you could cool the economy a little bit. But unlike 2008, where i was worried that my paycheck wouldnt cash and my bank would fail, unlike the debt ceiling i know that. Im saying it is a very, very different time now, no doubt about it. The only thing being were relying on our leaders in washington to try to craft some sort of solution. Did you have quotes around the word leader then . Im only watching your lips. If you were to type that, would there be quotes around leaders . Yes. Thank you. I rest my case. Im willing to take those quotes off. If they show that they are truly leaders without quotes. I come to work every day, my tallahassee paycheck, still in my wallet. I was a reporter. I made 137 a week. And if i had seen that go down to 127, i would have been angry. That was my subsistence. There are people who play for dinner in this country and their subsistence are on the line and theyre going to be furious. But theyre not going to get furious until they see their paycheck. Its going to impact gdp in the first quarter, and the second quarter. Americans are feeling like theyre protected from the democrats . Because theyre in lower income households . But they wont be. Their paychecks will be less because the payroll tax cut will be gone. The amt, also gone. That will affect lots of people, not just highincome people, everybody. Potentially 30 million people. You dont know until the end of the year. The likelihood we go into next year without a deal lets talk about the overall market and the sense. Economy. You guys were mentioning, you ladies and gentlemen, were mentioning a number of the positives. Its funny, ive had conversations with people on the other side of it. People have been getting, socalled bowled up. Corporate profits, theres concern about that, and even with this little spate of m a we made a lot of yesterday, theres still a lack of confidence. I had marty on last night from paychecks. Largest provider of checks to Small Businesses. Bad quarter. Yeah. Confidence. Can we play that . Yeah, lets listen to it. This is mr. Musy. Is washington the most difficult thing that you face at paychecks . All the attention on the fiscal cliff and no action is really producing, i think, a dampered view from small business, and theyre just kind of waiting on the sidelines right now. What youre seeing in our clients, theyre not opening up their second location, theyre not hiring more employees. Its fairly quiet. Yeah, there it is. Thats fiscal cliff. He had been building a head of steam. And suddenly hes talking about Business Building tailing off. Washington, washington but do you ever hear them they talk about the job creators. You have to protect the job creators. They spoke to the president , i thought the president was starting to understand this. But this is about etiology. This isnt about the war between the states that are gop, and the states that are democrat. Etiology does not get solved in a back room. It doesnt. It gets solved by the actual citizens saying, i cant pay for dinner. I cant pay for dinner. Ive got to stay, and i cant go to brinker, ive got to go get mccormack spice and hamburger helper. Thats when it changes. The likelihood we dont reach a deal, helps the outcomes of the discussions youre talking about happening, and we start to see Corporate America have fewer profits. Look at oil. Thats a good barometer. You know, well see signs that of but paychecks, right there, right in your falgs. The business formation is really cut back. Because of this. Who knows what tax season will be. Who knows how things are going to be treated. Look at the outflows that have happened over the past couple three weeks out of municipal bonds. We dont know, people dont know if there will be the Tax Exemption or their exemptions will be limited, so it will be a choice between mortgage deduction, or municipal bonds, and, you know, were seeing the money come out. People are being cautious. Im also hearing from hedge funds that people are selling their games. Theyre selling their games and reentering the new cost basis. People are uncertain and theyre taking every precaution they can right now. Like david said, theres also a you can make a case, things are feeling kind of good, were not going down, were actually going down, were looking at the cliff, but it looks like theyre going somewhere. And everybodys going to mention autos and housing, gdp number wasnt that bad. You dont know until you see your paycheck. But i do wonder whether the other side of that is perhaps not is going to be focused on a bit more. Not just fiscal cliff. Do you think theyre going to say, hey, theyre not that bad . Do you think people will say its not that bad to go over the cliff . I think theres already an expectation look, i wont be here. Im going to be away. But youll be here, and well be here is this a package thing . Are you still going to go ala carte . The motto in my family right now for no particular reason is, spend it all. Its not the end of the world. Were here, david. It looks like its going to be 2013. Well find out if its really happen. Paying close attention to the paycheck, too, but well be all right. Were seeing a sharp pullback in the seconds leading financials across the board. A bit higher in gold. Treasury deals are rising. All the expected sort of reaction. What we ought to have is dramatic music behind us as we talk about this. Oh, there it is. Maybe like some game time music. Okay. Well continue to be all over what is shaping up to what could be a rough morning on wall street. Covering the base limits. Speaker john boehner will be giving a News Conference in less than an hour. Well bring you those comments live. Meantime, lets take another look at futures. The dow looking to open lower by 170 points. The s p 500 looking to give up 19 at the open. [ male announcer ] at scottrade, you wont just find us online, youll also find us in person, with dedicated support teams at over 500 branches nationwide. So when you call or visit, you can ask for a name you know. 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Whether it be nike, walgreens, where do you want to start . Walgreens, david. People think of drugstores as recession resistant. I think the whole dialogue is whos recession resistant because of the fiscal cliff. This is a company that is so confusing, because the numbers look good, but numbers did not look good, but theres a deal that walgreens is doing. The Alliance Boot deal that occurred earlier this year. A complicated deal in its own right, buying some of it now, some of it later. Let me just take a look at this, theyre taking 13 cents was the socalled miss here. But 7 of 10 of that is from the timing of the Alliance Boots, and the dilution from it. There are accounting issues in a sense how they went about dealing with that dilution. They close this deal, but walgreens and cvs are taking share. Theyve really changed their stores. Much more food, much more going for a broader move like target and walmart did. A lot of supermarkets are being hurt by this. And this is really important. Express grifs wan an outfit that had a tiff with walgreens. Youve got a couple of quarters that are bad and then, boom, now theyre back together. I prefer cvs to cal greens. But i do not think this deal will get hammered. Well keep an eye on walgreens. I want to talk about nike and red hat. These are the two best stories of the day. If they stay up, i think what youre going to say is maybe things are not as bad with fiscal cliff. China not as bad as we though, u. S. Very strong. So nike, if it goes back to 97, it means were going to have a real bad couple of days in my view. Look at red hat. Red hat is a Technology Company that is deeply involved in the cloud. They, too, had a better than expected number, as did oracle in the cloud. So these are my two tales for the trading today, david. If you pick the best of the best and they go down, youll really have a couple of when it comes to the socalled cloud play and the use of it in the competition here, is that one of the key names . Yes, it allows you to manage cloud in a cheap an antimicrosoft business. Their partner is sales force. Com. Im really using these as tells. In other words, these are the ones where theres natural buyers. As we just found out how good things are. It wasnt like we found out a month ago. We just found out last night. If they have resilience, the market is going to be more resilient than people think. If they give up the ghost, i think next weeks going to be difficult, too. All right. Well be watching red hat, nike, walgreens. Well also be keeping an eye on r. I. M. That is a result of whats going on in washington. Take a look at the futures there in the s p. 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[ dog barks ] because right after they get married, theyll find some retirement people who are paid on salary, not commission. Theyll get straightforward guidance and be able to focus on other things, like each other, which isnt rocket science. Its just common sense. From td ameritrade. Take a look at the futures. Dow looking to lose 184 points. Of course, this after the attempt to pass plan b fails in the house. Speaker boehner is expected to have a News Conference at 10 00 a. M. Eastern time. When we have that press conference, well bring that to you live. Lets talk a little bit research in motion, the blackberry maker with a loss on the quarter. The company saw its first ever drop in its Subscriber Base and said it was changing its fee strek tur. The ceo was asked how long it would take to see if next months launch of the blackberry 10 is a success. Were transitioning. This doesnt happen overnight. We still experience strong sales in many of our regions. I think we have a certain period of time, several quarters, where we will transition from 7 over to 10. Several quarters is not the kind of time frame that investors like to hear, jim. This was one classic one, where the headlines were all good. But you have to listen to the Conference Call. This is more than don chambers and cisco. Heres the guidance, and they dont give it to you in the release. You had this kind of things are looking better, and then subsequent things looked worse. The company does have great Subscriber Base. I was looking at this as a netflix situation. They still have the great Subscriber Base and the great product and theyre changing their fee structure. Its been a cash cow for research in motion and they change it to a tiered Service Revenue model and people dont know how to make heads or tails of that, and what their cash flow is going to be. He said in the squawk box interview, cash is a concern and cash will increase over the next several quarters. Cash went up as a release of working capital. Which is not the greatest reason for cash to go up. Because youre just doing less in some ways. So you have more cash as a result of that. Very tough for a lot of investors to value this. Throw your hands up. Youre dealing with intellectual property. Which is inherently difficult to value. It just becomes hard, and harder given that guidance, i guess. Which is harder to value, herbal life or research in motion . I think when bill said this is blood money, were going to donate all profit