Protesting president morsis decree to express its powers. Despite there, there was a nice pop, a move of 31 cents, about 2. 5 . It tracks Egyptian Companies that trade in egypt. David egypt, the fiscal cliff, so much uncertainty. Where do you put your money . Go to the big caps. Look at the winners among the big cats. Not huge, but this is where people are puttinggtheir money. They want it in safety. They are not putting it in gold. If you have to be in the market, go to the big cats. Thats whats happening. Liz president obama discussing the fiscal cliff, and, plus, speaking live to the iowa governor, his state facing a double whammy if we go over the cliff. What compromises hed love to see come out of washington, and how he believes they could reach them. This is a guy who deals with the Democratic Senate, so, really, he knows how to cross the aisle to make it happen. David somebody else you know about, with all the talk about tax increases, the idea of a simple flat tax dead . Well see. Forbes doesnt think so. Theres a News Conference along with washington lawmakers to push for the flat tax. He joins us later this hour. Liz first, what drove the marketings for todays data download. Stocks ending lower, struggling for direction most of the day, unable to hold gains trading lower. I think it was 79 times. Health care and industrials were todays Top Performing sectors and telecomo lagged. The euro extending the gains versus the dollar, rallying to a near seven week high against the green back after greece announced its debt buy back terms. Euro rose to a 1131. Thats high historically. Action in the metals. Silver, platinum, all sinking more than 1 . Silver was todays biggest loser dropping nearly p 3 to settle at 32. 81 an ounce. David markets hopping, but the next trader says investor participation is shifting. In chicago, larry, the key question here is what happens when the market gets off its hind legs and moves . Move up or down . It all depends on what happens with the fiscal cliff. Right now, theres boehner yelled out by his own party, the conservative part of the wing, and also the left. Hes in a really, really tight spot and an ultimate binary trade. If something good happens, well rocket higher. If something bad happens, expect the worst right now. Thats the thing right now. Its a yes or no trade. Liz congressional know it all at fox news calls it rrpublican on republican violence. Hard to get a deal in the own party, special interests, the markets, whatever happens, we want to make money. Where did you see the flows today . Just a sec. We picked through the numbers, the stock is falling, of course, im sure making the shorts happy. Clearly, looking at the stock, again, it had been up for the past two and a half weeks, but its gotten hammered since the six month high reached six months ago. Larry, quickly, though, where were the flows today that you saw . Not many at all. I think people are talking about putting money into financials and materials and out of energy and utilitities. Not a lot of rotation. Right now, liz, the correlation of sectors are very, very high, and rising every day, and until we get clarify from washington, expeet that to continue. David okay. By the way, larry, we have the numbers after hours on pandora because its a real hit this stock is taking. Theres a huge drop right now, over 10 drop. Ended at 945 and now trading at 767. Thats the bid after hours. Any indication of something more general, maybe in terms of internet music, ect. . People thought of getting in there including apple. Yeah, i think they were. I think it was dead wrong. Volatility, pricing in a 3 4 move, there was a lot of bullish trades put in the market in the last couple days. This is a classic example of the market getting it wrong, and, perhaps this is a good buying opportunity because of the apple news. See what happens. Liz let me tell you, the news right now is that they say for full year 2013, theyll swing to a loss of six pennys, nonetheless, they have listener hours up 67 year over year, but, clearly, thats not what the market is looking at right now. Lets look at pandora right now. Justin . Robert, you got the numbers. Yes, indeed, liz. You pointed it out, the forecast, starting there, the loss, the expectation for the fourth quarter, six to nine cents a share. Analysts looking for a penny a share in the Current Quarter. A disappointment there with a loss on the operating basis. Revenue numbers, disappointment here. 123 million, and the estimate is 130 million. Its not erasing good will. They earned a nickel a share, estimate for a penny. Revenue exceeding expectations 120 million, beating 117 million. You mentioned the total listener hours grew by twothirds compared to a year ago. 3. 5 billion hours there, users reaching 59. 2 million, a 50 increase, but thats the forecast for the Current Quarter where shares are tumbling. Liz crushed, down 20 . They dont care they beat on the revenue level, but that the outlook for 2013 is a loss here, a stunning move. Cant do that in the newer businesses. No, you clearly cant, but maybe this is a very good buying opportunity. As you said, most analysts look for the net listening hours, and that went up exponentially. They are worried about royalties being paid, but so is the competition. Perhaps iis a good time to get in with everyone selling. David by the way, we have to mention the shares have been up about 20 over the last couple weeks, but whats happening today has totally wiped out the gains, even though they were up 20 , negative for the year. Youd go into a stock that has been negative for the entire year down 0 in one day, larry . Well, keep in mind, im an old commodities trader. I love momentum. When everybodys going one way, thats the perfect time to tip the toe in the water and buy. I mean, fundamentally, i like pandora, im subscribed, a great service. When everybody sells, no good reason to buy it other than everyone is selling it liz larry, we love your perspective as a trader. Thank you so much. David talk about the competitive landscape. Look in the beltway. Republicans cant seem to get along together. What about democrats and republicans together . A deal seems so far apart right now. Rich edson following the situation in dc joining us now. Rich, whats the latest . It does, david, and we have time on this, although it seems like we dont. The two sides, though, fair hi fair apart. The white house proposal on the table, boehner call it a joke. The white house called it magii beans and ferry dust. President obama in the negotiation drew a line he had yet to draw. Were going to have to sew the rates on the 2 go up. Were not going to be able to get deal without it. Been no deals of this mag magnitude made in congress and forced on reluctant president. I hope the president would turn off the campaign, congratulations, you had a great victory, and lets get serious about dealing with this deficit and debt here at the end of the year. Back to the president s comments. He had yet before to explicitly say rates had to go up on those earning 250,000 or more. That was the white house position. That is their condition now for a deal. Its in the face of what republicans want saying no rate increases; however, a little wiggle room, and the president didnt rule out a smaller rate increase than hes calling for could be a part of a final product if they get to that stage. Lizly thank you very much, rich edson. David we have a governor who says his state takes the right action to prevent falling off its own fiscal cliff and the president can learn a lot. Liz joining us now is the iowa governor, and, governor, let us just explain that to the viewers. You deal with a democratic legislature, and you managed to get things done. You could show by example. How have you done it . What do you think inside the beltway crowd is doing wrong here . Well, they need to get past the politics, quick political posturing, and provide leadership. When i was elected governor again two years ago, i came back because the people of iowa said we need your experience and leadership to get our fiscal house in order. We cut the size and cost of government, and we focused on jobs in ways we can make iowa more competitive. Theres a two year budget with a five year projection. I insisted it would stop the bad budgeting practices using one time money for ongoing expenses, and it was a tough battle, but we got the legislature with a Democratic Senate and Republican House to pass essentially a twoyear budget, and we spent just 97 of revenue, even though by law we can go to 99 , we restored the cash reserve in the economic emergency account. The state of iowa in the strongest fiscal position its been ever. Im proud of what we accomplished and looking forward to making progress this year reducing property taxes for all property tax classes in our state. David great progress. So have the citizens of ohio, wisconsin, and you can mention individual states that have done well in getting indiana, michigan. David that stands in stark contrast to whats happening inside the beltway. Even one of your own, harkin, the United States senator from the great state of iowa said its better to go off the fiscal cliff than not to have a rise in tax rates, and he said, quooe, no deal is better than a bad deal, and a bad deal for him is not letting tax rates go up. What do you think of that . Hes one of your own. Well, unfortunately, weve got too much partisanship in washington, d. C. The American People want the leaders, both the president and the congress to come together, make the tough decisions. Its going to take both. Its going to take the revenue, but its also going to take fundamental reform of spending. You cannot spend a billion dollars more than you take in every year or theres fiscal ruin, and with the amount of baby boomers retiring over the next several years, they are going to have to deal with things like medicare, medicaid, and Social Security if were going to resolve this thing for the long term, and, frankly, iowa farmers and Small Businesses will be hit with huge increases in Capital Gains and death taxes, a real damaging blow to our state, which is doing well. Liz lets talk about the double whammy you face, and youre only one of six states where its an interesting situation, interesting or painful, depending how you look at it, that allow residents to deduct federal taxes from their income when filing state tax returns. How would tax hikes affect your state . Well, first of all, we plan for this. We knew that this was in the law, and consequently, we have enough revenue that if, indeed, the tax rates go up, iowa taxes will go down. Iowa taxpayers will benefit. The state will get less revenue, but we can afford to deal with that because weve been fiscally responsible. David Governor Terry branstad. Youre doing it right. I hope they listen. Thank you so much. Liz thank you. Thank you. Liz i wish he would get there to tell them how to do that in dc. A shallow volatile day in wall street with the dow crossing the unchanged line more than 70 times. How do invest in the uncertain environment, what one of our guests calls the investment townt of a life opportunity of a lifetime. David wonder what it is. Business leaders and congressmen holding a News Conference on capital hill today to support a flat tax. Remember that . One of the Business Leaders in attendance was mr. Steve forbes, ceo and chairman of forbes media joins us straight ahead to discuss his plan. Liz prolonged drought . Still going on in certain places. Look at the screen. Pictures that may force the Mississippi River to shut down, commerce, billions worth of cargo at risk, not shipping right now, grains you eat to oil and coal you use. Well take you there live. [ male announcer ] this is amy. Amy lik invest in the market. S also likes to ride her bike. She knows the potential for making or losing money can pop up anytime. Thats why she trades with the leader in mobileradi. So shes always ready to ke action, matter how wily. Oweird. Or wonderfully the markets behaving. Which isnt roct sciee. Its just common sense. From td ameritrade. You know how painful heartburn can b for fast, long lasting relief, use doctor recommended gaviscon®. Only gaviscon® forms protective barrierhat helps block stomach acid from splashing u relieving the pain quickly. Try fast, long lasting gaviscon®. Maybe you want toincorporate a busiss. Orrotect your family with aill or living trust. And ydike the help of an attorney. At legalzoom a legal plan attorney is available in most states with every personalized document to answer questions. Get started at legalzoom. Com today. A nowoure protected. David live, pandora down 20 after hours. Came out with numbers the market didnt like, and nicole on the floor for more details. Nicole, whats the reaction . Right, david, going into closing bell, pandora gained. Hopes there was more audience, higher revenues to talk about. Its interesting that they came into the quarter that beat the streak, buttthe outlook, and the Current Quarter where earnings per share beat five crepts rather than the one cent estimate. Revenue beat 117 million. Its the outlook causing the stock to drop 20 in the after hours cutting the full year forecast, and the resultings of the full year well below estimates. As a result, when you talk about it, a lot of people had a lot of high hopes for this one, its plunging here on a weak outlook. David thank you. Liz robert, another company fast tracking dividends ahead of test 3 1st. This takes the cake. Remember the benefit series, a special christmas cd every year . A special dividend based in massachusetts, and they are going to pay eight quarters worth of dividends at once on, you know what else . Christmas eve. A dollar a share to all shareholders as of december 14th, and dr. Robert, the chairman and founder here, he says the Company Believes starting in january 2013, the federal tax dividends will be increased substantially if that occurs, cash diff is not a way to reward shareholders. Hes the biggest shareholder as 243 million shares outstanding saving him 600,000 in taxes. David at least they are not borrowing. Paying in cash. David like costco is. They are borrowing 3. 5 billion from the future gains so that they dont pay taxes. They are not alone. Other companies doing it as well, leveraging up. Will shareholders stick around . David well see. Interesting times, robert, thank you very much. Liz youre welcome. Gridlock in washington triggering volatility in stocks. Where do you put your money . David david lutz, managing direct, and bruno, global exfunds cofounder and ceo. Good to see you. Fiist, getting right to it because theres an opportunity that you or some see as much as a 50 gain on, and thats a whole country, china. Chinas been beaten down so much over the past year, that some people are expecting a 50 rally. What do you think about China Investment right now . Ill tell you, ddve, one thing about china that we noticed is every since the National Congress went by them, there was not a stimulus coming from them, the stock market got hammered, even though the Economic Data gets better. They are one of the worst emerging markets so far year to date. With the lower chains of stimulus, investors pull out. Money going into is the chinese shares. What are the shares . The hong kong proxy for the market. Foreign investors, like hedge funds, short the market, and they are covering shorts now. Carson black is a short seller bear own china and he covered all the chinese shorts. Right now, theres a noted technician out there in the market, tom demark, a lot of the faster hedge funds listen to him. He said yesterday, you know what . Theres a good chance of a 50 jump in shanghai composite. David where do you put your money . The best way to play china would be the etf. Its a proxy for the market, but thats because the others out there, you know, they have a lot more of a spread because its harder to trade the stocks so, you know, the size would trade closer to the index, probably one of the sharper investors, etfs for investors. Liz bruno, the best idea with the fiscal cliff, you believe the cuts kicking in january 1 st, something will happen, there will be a deal. That said, where do you advise people to put your money . A generational opportunity with the energy or in the sense thats happening right here in the u. S. We are going to see tremendous growth from a number of companies particularly on the exploration and production space, and specifically around a fiscal cliff creating short term opportunity with limited partnerships, or mlps, the backbone of a lot of the infrastructure thats being built around the energy in a sense that were seeing, and well see it for years to come, and so a lot of opportunities with a lot of opportunities. Liz opportunity of a lifetime with where its priced now . I certainly say within the u. S. Its the key opportunity, largest opportunity that we see thats not only short term, but we think its going to last for several years. David david, bruno, thank you very much, gentlemen. Good suggestions, appreciate it. Liz thanks, guys, a water shortage on the Mississippi River threatening to dry business in a big way. Could affect you and the stocks you own. Jeff flock on the next scene live. David time for a speed read of the days other headlines, five stories in a minute. Buffets claiming up to 1 billion from reinsure over a Life Insurance deal reached two years ago, reid says the claim is without merit. Union management negotiators agreed of federal mitigation to end the week long port strike in los angeles and long beach. They are striking at ten of the 14 terminals at the nations busiest port complex. Apple nearly doubling itunes gee Geographical Reach with plans to expand into 56 Additional Companies as apple faces stiff competition from microsoft and google. Warren likely to join the Banking Committee next year, a wellknown critic of the banks calling for regulation and limited risk. Carl icon abandoning the bid for Oshkosh Corporation after just 2 2 of the Company Shares were tended. He sought 25 of the shares in the offer, and thats toda