David believe it or not, we may top 300, trading, just popped over 300, 304, 307 and continues to go up so were settling up today, that is always a good sign. Look down here, number three on the list, the tech heavy nasdaq really popping. A lot of other stocks to look at, but all of these, what a wonderful way to start the new year. Lots of people locking in their gains last year, the lower tax rate, a lot of people said they would buy it, and that looks ite exactly what is happening but we have to focus on the nasdaq. Liz the small and midcap index shooting up so high today, that is a record close and the last one april of 2011, so those names looking very good and for people who sold out and got out of stocks, they were losers today, they missed a major rally particularly in the small and midcap names. David oil got a nice pop today, congratulations to you settling higher by 1. 4 closing about 93 per barrel. Liz the rally started overseas while many of you were sleeping, germany did it beautifully hitting a fiveyear high. An 18 month high. David everybody is happy. Liz dont forget asia and hong kong hitting a 19 month high. What a day for the global market. The deal in washington, you can credit that, whether you like it, has pushed many investors. Where does that leave the u. S. Dollar especially with one that is gearing up for a debt ceiling battle. We have an allstar panel to let us know what currencies are going to rise and which ones you need to steer clear of read david you will not believe it, and it did not save any of us from higher taxes, those who pay taxes at any rate. If you paid income taxes last year, youre going to be paying more this year. Coming up, bill harris letting us know how to keep as much profit as possible in your pocket. Liz what drove the market with the data download. Happy new year, by the way, from after the bell. Investors flooded the market following the fiscal cliff deal. Ending the day at session highs with more than 300 points posted the second straight day of triple digit gains. All major indices closed up more than 2 , all 10 s p sectors let higher led by technology and telecom. Construction spending actually fell for the first time in eight months in november dropped 0. 3 annual rate 866 billion but weakness in the business sector out weighed the business growth. The u. S. Manufacturing sector returning to expansion last month inching up to 50. 7 from 49. 5 in november. Any reading above 50, we will take it even though it is slightly above indicates expanding activity. David we have peter barnes live in washington with exactly how much your taxes will rise next year. Giving us their favorite stocks to kick off 2013, but lets start where the action really began. No doubt what happened inside the beltway affected the market. How much will we be paying . Peter we have a whole bunch of taxes this year including from this weeks tax bill, starting last night, looking at their impact on different income brackets for each hour of the day today. This hour were wrapping up with millionaires and billionaires. Household income of a Million Dollars annually or more covering 300,000 households filers. The big change that will affect them is restoration of the top marginal tax rate of 39. 6 from the clinton era for individuals making more than 400,000 per year are from is making a 450,000 for those taxpayers also said the raids on the cap gains and dividends rise to 20 from 15 . Unrelated is a new tax on the president s Health Reform law. The medicare surcharge on Investment Income for individuals making more than 200,000 per year. Come is making more 250. The tax increase that ill hit pretty much everybody, lower income as well as upper is the expiration of the payroll tax cut from the last two years hitting anybody with a paycheck from 10,000 to a billion dollars. So for the households earning more than a Million Dollars or more per year according to the tax policy center, their taxes will go up on average by 170,341. No surprise if youre including billionaires. David we should include even millionaires and th william ayes once he taxes go up on the first 400,000 for individuals or 450,000 for families. Correct . Right. For a billionaire, i think that is tipped money. David thank you peter barnes. You can see specifically however id of other income brackets, perhaps your bracket is there. Being hit with the higher taxes, even people below 400,000. Liz check it out. Stocks a big rally following the fiscal cliff deal. We have Mark Sebastian joining us from the pits of the cme. David chief investment officer. And a Senior Vice President , bringing us specific stock tips for us. First of all, mark, he said there would be a big rally one way or the other depending on how the cliff deal went. The rally on monday with rumors of a deal, and then a huge rally over 300 points, is this where we rest for a while . There was lots of upward momentum as we closed the rally day. The option across the street was something called gamma, sliver out buying futures. I would not too much faith on that. Ill be watching tomorrow to see if he can continue to hold that level in the futures. What a move we saw, there was a big panic on friday after the bell we s p futures sold off another 12 handles. Since that low, the market has rallied over 5 in the futures. That is an incredible move. The vix has lost a full third of its value. Whats a set point us toward . Decreasing realized volatility. A big pent up demand for a market move. We have tax clarity, news clarity, we get a massive pop and now we start to ease a little higher, probably our major resistance level is september 2012 high of 1475. That will be our next test assuming fridays number. Now that taxes are over we can look at things like Economic Data. Crazy, right . That is coming out on friday, the next determent if we hold a 1450 or if some damage is done. Liz imagine that, real fundamentals. Versus just something inside the beltway jerking us around on a leash. How do you think the Precious Metals and the base metals might do now that there is a deal . Would that copper, crude oil, we had a two week high. Youre looking at some real movement. What wont do well . Precious metals are very interesting specifically. We saw a lot of people selling ahead of the cliff deadline in gold. That was a major fundamental problem. A couple of really ugly days at the end of last month gold calld managed to hold the moving average threatening 1700 again. I think gold if you like money printing, no deficit Reduction Plan and a patched tax deal, youve got to like gold. Crude im a little less bullish on. That is a weak dollar play, but we have so much reduction in the u. S. Right now, have to wonder if they can threaten those. David will be talking about oil coming up, but i want to bring you in here because the main issue is opportunity versus risk, what will we have more of . So much of the bad news getting jerked around by what those guys inside the beltway were doing, at least for the moment that is over. Does that mean 2013 will provide more opportunities than risk . I certainly believe so. Liz mentioned earlier if you missed todays rally yet given up a good bit. What most people dont talk about, the stock market at 13. 5 . That was not such a bad return. If you focus more on the headlines in some concerns about what is going on in washington you lost last year. David where is the opportunity for 2013 . Tremendous opportunity is natural gas. It has not been the place to be. But now what w were starting to see is basic economics, supply come down and demand is going up. The one thing with president obama getting reelected, there are certain epa mandates force utilities to put scrubbers in the coal plant, think the demand fix the natural gas looks great in a competitive advantage the country has going for it. Liz i want to believe you. We were on the Trading Floor one year ago and i heard the exact same thing and it really didnt happen. What will be the catalyst especially when more and more companies are drilling for this stuff. I would argue the opposite. More and more are drilling for oil but if you look at this country is actually down. Natural gas guys are down even more. What makes it different this time, that is getting back to basic economics. Supply will go down simply because demand has gone up because utilities are using more. David lets get specific, specific stocks. I assume coal, copper, iron, you name it if youre involved in Building Materials they have the Raw Materials for it. Is that a play on the Global Economy expanding . Joy global. I guess were having some trouble with his hearing. Lets talk a little bit about your pics, your natural gas play, tell us why you like it. Why is southwest the best . What you want to look at in the difficult times or lowcost producers. You want to avoid the higher cost players because it will take in more time to make money. They should have decent growth Going Forward. Liz is there any bit of money you would say i will commit some of that they really risky amount, what would that be . Speak we have some listings as well as a uk grocer. David im sorry, we want to give john a chance to come back. Now it is working. Specifically joy global cometh a, that aplay on global expansi . Yes, indeed. Joy global is a company that has positive exposure to improving Living Standards and Infrastructure Development and urbanizations with the emerging markets. Particularly china. Lead in the manufacture and servicing of high production mining equipment. Iron ore, copper, coal, some of the things people need to keep the Global Economy humming. It has a long track record of improving producing equipment improving safety and productivity and stock price at this point we feel is very attractive because it is down on the fears abated to growth concerns in china. Which are overgrown at this point in time. Liz youre talking about a growing Global Consumer eating more. Now theyre eating twice or even three days, is that an opportunity . We view that as an opportunity. Traded sideways to down over the last year or so. A lot of reluctance to commit to longerterm assets. It provides a key ingredient needed in agriculture, improves crop yield, 7 billion people on the planet and the number growing 75 million per year we think that its going to be a key need Going Forward. They have about 300 to 400 years of production or reserves in the asset base. We see that as a highly valuable asset. David thank you very much. We will see you again in s p futures close. Good to see you all. Liz much more coming up right here on after the bell. [ male announcer ] this is karen anjeremiah. They dont know it ye but they gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ 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 oother things, like each other, which isnt rocket science. Its just common sense. From td ameritrade. Maybe you want to incorporate a business. Orrotect your family with a will or living trust. And youd like 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. And now youre protected. You know how painful heartburn can be. For fast, long lasting relief, use doctor recommended gaviscon®. Only gaviscon® forms a protective barrier that helps block stomach acid from splashing up relieving the pain quickly. Try fast, long lasting gaviscon®. Relieving the pain quickly. We asked total strangers to watch it for us. Thank you so much. I appreciate it. Ill be right back. They didnt take a dime. How much in fees does your bank take to watch your money . If your bank takes more money than a stranger, you need an ally. Ally bank. Your money needs an ally. David the s p futures are closing right now. Mark sebastian at the cme group, what is happening . There was a lot of trading but not a lot of movement. Not to be surprised after the big push we had at the end of the day. Pay really close attention to the Economic Data this week. Two months before the next debate we can Pay Attention to fundamentals. Trading should be really fun for at least the next few weeks. David thank you very much. Liz look at these, they got a boost today. The floor of the new york stock exchange. How do you think it is doing . Nicole very interesting. Intel will be on one to watch because were starting to hear headlines something new for intel. Up 3. 7 . You have the idea here they are working on settop boxes. Moving into a whole other realm itll be interesting to watch it. This could outshine apple tv. Will this be a direct competitor . One that we will continue to watch based on the news we are watching. Be developed by intel media. We will learn more and more about this, but something that we want you to watch. Something that may be brought up as well. Liz that is exactly what we think will happen. David that is all apple needs. Nicole, thank you. Eight new taxes are underway to pay for the new health care law. Including a sales tax on medical advice. Liz you talk about the medical costs to consumers. Talk about the sales tax and revenues even if they are not making profits and even if they are spilling red ink. It will only lead to fewer jobs, reduce investment for Higher Health care costs for consumers. Taking us exactly in the wrong direction. We already know they have done layoffs and the like, but this effort from the Health Care Industry did nothing to stop the tax rates rolling down the hill, and look you can see bunch according up and down as the lobbying effort rolls forward. Some volatility in the stock, but what is interesting about the eight tax hikes coming in today, some of them really are directed or will be hitting the middle class. Talk about things like the flex accounts being capped, 2. 3 tax that we are seeing uncertain Investment Income. The question will this really hurt the market Going Forward. When using the nicolette dime stuff it is buried in tax bills we will have to say maybe not, because it isnt coming to the surface yet. David mini came out for obamacare, they saw such a huge increase because of obamacare they were willing to do just higher taxes. That is what the logic is for obamacare. Insurance industry will get more coverage for medical devices, more revenues we have to pay back some. Liz it did not appear they had too much trouble even though they did endure volatility. Exactly. 800 groups and the ceos writing to congress. You cant do this medical device tax, youre treating us like cigarette and alcohol. We will be watching that one for you. David Elizabeth Macdonald knows about taxes. And today is my birthday. I get a lot of free gifted christmas gifts. Send them my way. Liz we have a fiscal cliff deal, but a huge battle is just round the corner and the stakes may be even higher. Government spending could come to a halt. Of course youre talkin are tale debt ceiling. The u. S. Dollar and other currencies. David plus we have a guest expert who says prices will drop below 3 per gallon even while oil prices are going up. But it may not take us all the way up to 2014. Why are gas prices going down when oil prices are going up . We will tell you next. David well the euro touching a two week high in intraday trading and the u. S. Dollar index posting slight gains after lawmakers approved a last minute fiscal cliff deal but the political showdown is far weeks away one of the best ways to make money in the currency market this year. Liz last week we had somebody who said buy the South African rand. We have a senior for ren currency strategist and they have got some ideas. Before we get to your favorite picks let me tackle the dollar. Every time we do quantitative easing, that tends to be dollar negative, very low rates. We dont have a strong dollar at the moment in trade, but what do you think about the u. S. To rar right now . Nick, you first. A bit of a mixed picture. Easing will be nech for the u. S. Commodities and euro. So maybe the dollar will hold up against those currencies. David chris, what about you, what do you think about the dollar. I have to be in agreement with our fellow guest there. When we look at the dollar specifically. Were here race to the base globally. Specifically with the bank of japan and potentially later in the year with the ecb and maybe even the boe steps back into it. So the dollars probably likely to remain relatively weak versus some of these but it is definitely a pick em type market. David nick, chris brings up japan which is fascinating because as folks who have been noting might realize it, they are actually going to be printing money even more than we have been printing money and yet you say, nick, selling the euro is a better option than selling the japanese yen even though japanese yens value will go way down because of all this currency printing. Why . I think the issue with the japanese yen, certainly fundamentals are negative in terms of the economy and in terms of what the central bank is doing of course the japanese yen moved very quickly short space of time. Dollaryen from 79 all the up to 87. I think in terse of the euro were certainly i think at a stronger starting point, a higher starting point. So i think there is more potential for that currency to fall. Of course the eurozone economy remains in the recession. It will be an underperformer for the year. Liz if i want to dip my toe into currency investing which one would you go long, which one would you go short . That is a pretty loaded question. When we look at the markets there are a few different ones people talk about the eurodollar and dollaryen. These are currencies that have potential market moving consequences the next week or two weeks or some with respect to what the u. S. Is doing here we want to look at currencies that have exposure to the u. S. That would be Canadian Dollar and mexican peso. Since they have ramification with commodities and crude oil and trade flows, they might stand