Continuing with his purchases of about 40 billion, also 45 billion treasuries. These guys certainly have not forgotten, benefiting from it. Liz probably not a good sign for global change. Plunging more than 8 earlier today. That is the biggest drop since 2008. This is the index giving investors inside the Global Supply and demand trends by measuring changes in the cost to transport things like raw material. Often considered a leading indicator of future growth. David while gold could not get the pop a lot thought it would, look at oil, up over 1 . It was a little higher, ending off of session highs, but they were encouraged by the fact not only was ben bernanke going to be printing more money but also the china seems to be gaining little bit of steam. Good day for oil traders. Liz purchasing 85 billion in bonds per month saying it will keep rates low until we see the implement rate fall below 6. 5 . That is historic, folks. And then said probably mid2015, which is what they have said all along. Find out if he thinks the right moves are being taken right now. David one of the guys willing to take on Alan Greenspan also a hike in dividend taxes could be spelling trouble for utilities companies. Chairman and ceo policy impact a tax hike will have and how todays meetings with senators and white house officials did go. Liz but first, what drove the market with the data download, and volatile day on wall street, the stocks waiting until the fed announced and then it happened, it did pop and lost the momentum into the close. Ending a fiveday winning streak, 70 points plus gain. Telecom and financials were sitting pretty much the Top Performing sector. Technology and materials lag. Treasury prices falling as the fed boosting bond buying sparked inflation fears. We havent seen it yet but the concern is very present. Tenyear bond yields in the highest level in more than a month and lower races points 1. 7 . Silver was the biggest Precious Metals winner. Settle in just under 34 per ounce than gold and copper getting a boost today. Called up more than 13, copper and in the day nearly 1 in the aftermarket it all came down. David says watch out because there will be a fiscal cliff, and profits telling us resolution or not 2013 will be good for the market. Lets start with todd, the dead, you have the whole shebang, the 40 billion, the 45 leanne in the treasuries, why did the market fissile . First thing we have to look at is the market expectation. We had a fiveday rally coming into this. The market knew this was coming. David hold on a second. There have been some reports that they wouldnt be going the 45 alien, they would stop short around 37 billion, so there were some expectations of less than this. The market priced in the full tilt. You saw after the rally they were a little surprised got a little spiked rally, and in resistance because that is the technical level we are at. It was a natural brake in a market that was overdone anyway. Liz lets not ignore the fact one thing a lot of people arent talking a lot about right now but should, why oil jumped, white gold jump, the dollar got shredded today. When the fed announces these on buying programs or continuing of them, it weakens the greenback. How concerned should we be about that . Doiig the happy dance because their products will be cheaper overseas. Liz they shoul this should be t worried. We want to be able to export, but bernankes plan is to make the exporting more valuable. We should be concerned because i dont think theyre solving the big issue and the big problem we are having. Theyre trying to use liquidity in the system but are helping the bank and the bigtime guys and not the average american. That is where this bubble is going to burst, these are a bigger problem and by helping banks and helping the wealthy will not help the average american survived this. David lets pull back the fiscal issues, some people think we will see a huge selloff in the week below the end of the year before the yea taxes go up. What do you think . The market still looks strong. The market telling me it will probably stay rally somewhere in the area right around this resistance area. Hit might have something to look at because theyre going to solve the fiscal cliff issue, but after it is done you will see some serious selling pressure here. David we will come back to you when the s p futures close to get a peek into what might happen tomorrow. Liz what an interesting day with bizarre behavior with the market. Senior managing director joining us along with profits investors and portfolio manager. You have been a little bit more bearish all along, but i guess any downside to what you see the fed announced today, people worried about tying into the 6. 5 unemployment, are we missing something here . The fed is being way too transparent. Liz do you think he talks too long . He had the stage and everybody will be paying attention to every utterance, but the halflife is getting shorter and shorter. This one is an hour or two. So far the annual yearly high. I expect that well still be the annual high, and i expect we will have challenges from here because the fed is giving up the ghost on the Political Forces fixing anything substantive on the fiscal side and giving up in terms of the economy itself so now the fed is in total contrrl. That is a problem. David operation twist was essentially exchanging one kind of treasuries or another kind. We dont have any more short terms to trade in. This is as close as you can get to peer my position of the dead. This is essentially absolving the politicians for doing anything substantive on getting rid of the debt the fed will buy it. It is for now. At least somebody is staying transparent. What the fiscal cliff come essentially if you dont know what is going to happen, it is pretty good to have the fed to say we will continue to inject liquidity into the market, we are not as concerned about the market and we will make certain Economic Growth continues right now. Liz when does it stop, eugene . It just seems like itll be very hard to exudate ourselves from the pillow read the halflife is really running out, it is like a heroine addict, youre not you t getting the same path. I would agree with you, easy money is very attractive, but there is no one logic. Some of the confusion, look at the companies accelerating their dividend payment, theres only one thing, corporation Balance Sheets are strong, they have the cash to support. That could have been used for investment and they still think once we could get some clarity around what the tax scenario is going to be, we get some clarity on what fiscal policy is going to be, corporations will begin to reinvest again. David as you just said essentially what ben bernanke just did was give the politicians a free pass. That means probably dividend taxes will have to go up and get you were in favor of dividend stocks. Dont you think the higherend taxes will turn people off of those stocks . Cash flow is the only return. Lets use the compounding effect for Building Wealth and enhancing wealth, that is our mantra. In terms of the situation, we have structural issues. We have a deficit, we have ongoing not just monetization from the fed, but added that and we continue to add to the debt. And we have the timebomb which is an actual nightmare. Liz are their sectors, an area that will work for our viewers right now . Sure. Since were in a poor part of the supercool pattern and the real deleveraging has not happened more naturally and put off the day of reckoning, we remain very receptive. That means high cash, cash flow from interest and dividends sustainable going forward. If we get into a downturn we want to make sure we have the margins for era to make sure we keep getting paid. David i want to squeeze one stock out of you. A bio pharma stock. I think demographics suggest health care will be an attractive area and eventually the Affordable Care act will clear up. David it is down 8 today. Thank you, guys. Good to see you both, gentlemen. The Federal Reserve announcing a new round of bond buying today in an effort to give the economy a jolt. Was it the right move right now . The effectiveness of all the money running out of steam. Who better to ask than Federal Reserve vice chairman, a guy willing to talk back to Alan Greenspan. We want to hear from him coming up. Liz the war of words continues on capitol hill. Still no real action as far as what we can see coming out on the looming fiscal cliff, we have a look at the very latest proposal. [ male announcer ] this is amy. Amy likes to invest in the market. She also likes to ride her bike. 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A key reversal closing almost at our lows of the day. Take profits and look for a spot to get short, that is the trade. Liz thank you. David thank you, todd. Liz shares getting a boost today. Lets head back to nicole on the floor. Did they hold a boost . Nicole they did well today. Some tough talks about revenue, commitment to numbers and what we should expect to see in 2013. Take a look at the stock, 3. 2 today. Increasing revenue and profit next year. They have the ceo talking, the investor conference, a commitment to the numbers for next year and say they want to hit low doubledigit operating as growth on average over time looking for collaboration. This is aetna working yet. Back to you. Liz nicole, we will see you later. It is a game of he said she said on capitol hill. Trading words in any progress or lack thereof on the looming fiscal cliff. David live with the very latest proposals, if there are any real ones. All of this with a sense of optimism from both sides. No movement to secure a deal. Wanting Immediate Tax rate hikes on the wealthy on the spending cuts. Latest offer, 1. 4 trillion in new tax revenue down from a previous offer of 1. 6 trillion. And willingness to begin Corporate Tax reform. House Speaker John Boehner says that deal fell short. Speak of the president s plan to avert the fiscal cliff still does not meet the two standards as laid out the day after the election. The plan does not fulfill his promise to bring a balanced approach to solving this problem. It is not a realistic position to say that we can resolve this by extending tax cuts for the wealthiest americans and vaguely promising that we will lean additional revenue by closing loopholes and counting deductions in a way everyone knows is unrealistic. Republicans continue to refuse to raise tax rates on wealthier families, the official claims a concession would open a pathway to a deal, however republicans and democrats are still hundreds of billions of dollars apart on how large of a tax increase congress should pass and how much spending it should cut. Thank you. David this time their representatives of Utility Companies saying tax hikes, find out which ones could kill the stocks. Find out why would we talk to two of the ceos live from d. C. Liz and look at the two pretty significant and historic surprises that came out of the fed today. Rbs securities managing director and senior economist has some points on the stock. And will you change your Gross Domestic Product forecast if theres a deal on the fiscal cliff . Having you ship my gifts couldnt be easier. Well, having a ton of locations doesnt hurt. And a santa to boot [ chuckles ] right, baby. Oh, sir. That is a customer. Oh. Sorry about that. [ male announcer ] break from the holiday stress. Fedex office. Liz the fed announced a new round of bond buying today, but we are not ramping it up. We are not ramping up the stimulus. Still announced a new bond buying plan. Are those the price is good for the economy . Managing director and senior economist Michelle Girard in the hot seat. Lets separate the market and the economy. Right now we will talk about the economy. Falling later with enough time to listen to what he was saying. Nevertheless is anything you heard today good for the economy . Will it help the economy, i dont think so. Not that there isnt enough dollars in the system, Interest Rates are low enough, obviously the fed is taking action to provide support for the economy, doing so for years, the economy hasnt gotten a lot better. And so unfortunately i dont expect this round of bond buying will have a more impact than the last two rounds have had. Liz but he specifically said when he announced the openended purchases for mortgagebacked securities now treasury, he specifically said my number one focus right now is shoring up the job market. How can that be good for the economy . It would be if the action helps businesses feel more confident about hiring. That is a problem, it wont necessarily help labor market. Companies are sitting on cash, strong Balance Sheets, wellpositioned, spend and invest in are not doing so. It is not because they are not providing enough support, simply because theyre uncertain about the outlook, increased regulations are worried about higher taxes and health care cost, brin buried about going or the fiscal cliff, nobody will be hiring in this environment. Even though the fed is doing what they can, and will not translate into more jobs until the fiscal uncertainty gets removed. Liz ben bernanke said they will not tie any future fed rate moves to a point on the unemployment chart, that is 6. 5 . We are well above 7 , so it will take a while, around midway 2015. They have never done that. They have been providing to say the rates will probably stay low. I have tried to be even more clear we will not be raising Interest Rates as one of the employment rate is above si abo. Liz what happens it is 6. 5 and in part due to less than exciting participation in the labor force . Ben bernanke address that in his report. None of these numeric thresholds are an absolute trigger. He said if we get below 6. 5 but inflation is still low, they may think raising rates could still be inappropriate for he was very clear the fed still have a lot of wiggle room but at least you dont have to worry about raising Interest Rates until we get those markers. Liz what was your second Biggest Surprise . The shift in the threshold was a little bit of a surprise. Is that what youre referring to . It is a little bit of inside baseball, if you will. They did kind of shorts and a maturity of the treacheries they are buying. Only marginally, but it spooked the long end of the market. Liz it did. They have been buying a lot of support out for 30year maturities, just about the only buyers of that sector anymore and the fact the fed will be buying only a small amount less. To some extent unsettled the market, so thats a very long end of the market we saw a little upward pressure on yields. It is mostly 30s. For most of the market, corporate bonds, Mortgage Securities what really matters is the five and the 10year part. That is actually what the fed has kind of shifted more of their purchases to an effort to bring down Mortgage Rates, that was some of the focus. It will not get good anytime soon. Liz good to see you, Michelle Girard. David come back soon. Over 800,000 vehicles being recalled by honda. Find out which ones will be next. The fed announcing more bond buying. Can these policies really help . The vice chairman alan blinder talked back to Alan Greenspan, something very few people did. He will be talking to us coming next. Test test [ male announcer ] where do you turn for legal matters . Maybe you want to incorporate a business. Orrotect your family with a will or living trust. And youd like the help f 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. And now youre protected. David time for a quick speed read of some of the days other headlines. Five stories in just a minute. Berkshire hathaway announcing it will repurchase 1. 2 billion worth of classa shares from the estate of a longtime shareholder. Pending news briefly halted trading in berkshire shares after the market opened but were up. Honda recalling 3780,000 minivans and suv worldwide because they can roll away after drivers remove the keys from the ignition. Pilot suv and axe cue a mdx models. Par shasetting a new sales record, porsche. Already eking out its previous record of 118,000 set last y