Lori apple downgrades piling up on the stock, but we have the one who says this is the time to buy the stock on the cheap and he is not watching his 1111 pershare price target. Is he right . The stocks soaring as a whole. Melissa the next round of texastaxescome he may not even e your money is gone. Lori lets check in with nicole on the floor of the New York Stock Exchange. Wall street optimistic for fiscal cliff deal . Nicole that is right, as a deal gets closer and closer, the sentiment is it gets done at least partially in some way shape or form. Talking to the traders, that is what they say the market is telling you. Positive results out of washington have been priced into this market. The Dow Jones Industrials dropped nearly 1 . The nasdaq up 1. 4 . A look at the dow jones intraday with a majority of the dow components all into the green, names like bank of america leading the way, oil services all doing well, and talking with Equity Partners and said why does it pop right now if they think the fiscal cliff talks come to fruition. He said people are chasing. Some people taking shortterm profits, but altman o alternatee are still believers in a santa claus rally and the fact washington will get it right. Melissa nicole, thank you very much. Proposals to avert the fiscal cliff coming fast and furious right now. We want to get you up to speed on where every proposal stands. For the first time the president conceding on tax hikes on those over 400,000 instead of 250,000 per year. That would raise in theory 1. 3 trillion in revenue. Speaker benard plans for tax hikes on those who make over a Million Dollars along with a trillion in spending cuts. Although it looks like we may be getting closer to a deal, Speaker John Boehner is pressing a backup plan just in case. Speak i think it is important to protect as Many American taxpayers as we can. Our plan b. Would protect american taxpayers who make a Million Dollars or less and have all their current rates extended. Melissa but the white house and democrats are rejecting the plan b. Saying it does not ask enough of wealthiest americans on taxes. Lets bring in matt welch, editorinchief of reason magazine. I wonder right out of the gate looking at plan a. And plan b. , does Speaker Boehner have conservative republicans on board, can he get either done . You will ge get enough peoplo pass a deal, probably, but what happens to him after he passes an unsatisfying and not very good Public Policy deal in january and february, what happens for Speaker Boehner. Republicans realize they have a bad hand they have largely dealt themselves not only by losing the president ial election this last timeout but by declaring 10 years ago the deficit dont matter and legislating governing as if that was true. They put themselves in this position and enough of them will recognize that to pass a bad deal that does nothing to cut spending. Lori on this issue of cutting spending, one of the portions or one of the proposals is to let the debt ceiling debate gets delayed for at least a year or two. My question to you is this, dont democrats understand the dangers of letting our deficit run at these levels . Seems like they dont care as much. The answer is no. Neither Political Party has a runner made Politics Around the notion of cutting spending. We are locking in historical expansion of federal spending from 1. 8 trillion in last year to 3. 8 trillion now, that will go up to 4. 7 trillion. Whatever happens to this deal will not do anything to get us closer to balance the budget or cutting spending. There are no politics organize around it. Democrats think we can borrow money at these rates forever and there is no worry about that, and they will be right until the moment they are wrong and if they are wrong, this countries in a world of trouble. Melissa were looking at raising taxes on the wealthy, still at the same time that is the issue at the forefront it seems it has to be settled first to get any further. Do you think they will settle in the middle on families that make more than 400,000, a lot of people think that will be the point in the middle that we end it, what do you think . Both sides right now according to today and yesterday are circling around each other at pretty close levels, it looks like were heading towards an agreement. I think it will be somewhere there. Republicans will have to take a real take on increasing taxes on the wealthy because perversely because they held the line on taxes for only so long instead of talking about spending theyre being forced to eat this by barack obama who has campaigned on this for sure, thatll be the first and main hurdle of this and a mixture of spending cuts with scare quotes that will be determined in the future including, i believe, the major component is future savings are possible interest payments. I am looking forward to those. Lori were not even get into the discussion of entitlements. They will watch the whole thing backfire on the economy. Yes, were taking money out from peoples pockets and giving it to governments, still not enough to pay for the true cost of government. The true cost of government right now according to democrats and republicans is at a level if we paid for it we would have permanent recession, which is a charming thing to contemplate. Were talking about tax rates, not talking about entitlements and kicking down the road to discussions of the debt ceiling, anything having to do with entitlement reform or tax reforms and now in a permanent state of governance careening from artificially made deadline prices to artificially made deadline crisis with no actual budgeting or process for even laying out an annual fiscal planning, an appallin and appalf affairs and this deal will only extend the negotiating. Melissa thanks so much. Thank you. Lori and appalling state of affairs, that sums it up wonderfully. Apple, a major mover despite the analyst downgrade and target cuts. Jumping on the bandwagon today, down more than 25 in the last three months as competition of microsoft and Samsung Galaxy, but what if i told you there is an analyst with a price target on apple of more than 1000. You heard us correctly, 1111 to be exact. t is brian, we are glad to have him on set with us. Glad to have you. Thank you. Lori that is a very specific target. Another thesis of your outlook is based on the pe being very cheap well talk about the pe ratio for some time now. So lets start with the valuation. It is trading under eight times cash on numbers. The company has grown at 92 over eight years, the s p right now trades at about 12 and a half times and has grown 7 per year. Lori the product debuted last week met with quite a thought, yet youre optimistic heading into the new year they will be demand owning the iphone in particular is a status symbol in china. There were some concerns when the iphone 5 came out on friday, the numbers over the weekend were over 2 million, which is spectacular. So one of the things i am noticing here in this negative news cycle is that everything is interpreted negatively. Why were there no lines in china . A lot of the iphone 5 ordering it online. Lori when do you expect them to retrace the alltime high . I see no reason we cant see that the next three to four months. Lori i have to challenge you, Samsung Galaxy phone is very popular, microsoft property, windows 7 has a renewed impact, the new app store having the itunes and leadership, tim cook and the whole maps issue is a credit debacle. The only competitor out there is samsung that matters. Lori what about tim cook and not a lot of interest in the pipeline . Tim cook has led the company for several years. So now it is all on his shoulders. When i think about new products, apple tv on the horizon, apple will dominate the tv market over the next five to 10 years. Lori we will see, we will definitely check back in with you. Melissa about to invade u. S. Banks and steal money . A plot straight out of the movies but we will bring you the reallife details straight ahead. Lori heading to break with a big rally on the s p market today. No need for a safe haven, 22. 50 down on that. Back with more after this. Melissa welcome back. Lets check the market, Nicole Petallides on the floor of the New York Stock Exchange watching toyota for us. Nicole watching toyota because sometimes when the news comes through, you can get some clarity on a stock. Up about 3 on the moves we are seeing today moving back to neww highs, 52week highs, highs we have not seen in years. They were ordered to pay record fines over 17 million for failing to report a defect to the u. S. Government in a timely matter. Toyota has been over the years with all kinds of things including acceleration on the floor mat, etc. Back to you. Melissa nicole, thank you so much. Lori time to make money with charles payne. This hour he is helping us make cash in the tech sector with the Global Leader of cloud infrastructure. Charles i like them a lot. They have taken a lot in america. Ill be really nervous with General Motors stock. Melissa a little extra bang for the buck. Charles it is a big company, but a lot of people, listen melissa it is a momentum stock. Charles it is. 12 insider buys 3 million shares. Listen, people make a big deal out of Insider Selling and sometimes it can be a red flag were often than not it is a yellow flag, lot of Estate Planning and stuff like that, imagine if all of your planning was in enron stock and you work at those companies. I love it, they have a string of earnings, the street expects them to outperform the market meaning they will take more market share, all the right places, the data centers, it is breaking out today. From here thin i think it has a pretty clear shot. Melissa thank you so much. Charged with accounting fraud, also charging former street cfo saying he knew of the fraud in the company and executive settle the charges, and doing mental news as well. Lori after graham saying they have the right to post any pictures that you post. Melissa upping the ante for Knight Capital. Exclusive new details as the bidding war intensifies. How the dollar is faring here against foreign currencies. Weaker against the euro and the pound. Stronger in asia and canada. We will be right back. Its a new day. If youre a man with low testosterone, you should know that axiron is here. The only underarm treatment for low t. Thats right, the one you ply to the underarm. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others tough direct contact. Women, especiay those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acnen women y occur. Report these signs and symptoms to your doctor if they occur. Tell your doctor about all medical conditions and medications. Do not use if you have prostate or breast cancer. Serious side effects could include increaserisk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include in redness or irritation where applied, increased red blood cell count, headac, diarrhea, vomiting, and increase in psa. See your doctor, and for a 30day free trial, go to axiron. Com. It is 21 minutes past the hour. Good morning, everyone. Funerals are being held today for two more victims of fridays shooting in newtown, connecticut. Families and friends paying theirtheir respects. A wake will be held for the teacher hailed as a hero for sacrificing her life, saving several students. Family and friends paying their respects to 27yearold victoria later today. Senator Patrick Leahy squared in as a distinction given to the most Senior Member of the Majority Party in the senate. Leahy now third in line for the presidency behind joe biden and john boehner. Iraqi president is in a coma at this hour after suffering a stroke. Government Officials Say the president s medical team is working to stabilize his condition. Back to you. Melissa the fate of knight securities could be decided in a moment. Exclusive new details on this one. Charley. Charley this is coming down to the wire, Major Investments to help tell them out. Theyre telling me they expected the decision may be later tonight or early tomorrow morning. Why did they do that . Or the look medication with the board but this is what youre hearing from investment bankers, theyre looking to get this wrapped up. The bid has been up from what i understand. It is more cash. Will weise thought tom joyce wanted a 4 bid, the ceo of knight securities and theyre starting to get it. Theyre still stuck in that range between 3 3. 20, all cash. Now starting to convince major shareholders that they have the appropriate bid, this is the deal that should be chosen. When yowe talked major investorr heavily betting gecko gets it. Increase the cash portion, with the stock portion has some upside, they think they think we put this all together, knight securities will be essentially sold off, tremendous cost in this infrastructure, lot of overhead and start chipping that away, the stock is moving up toward the bid of gecko. The bid of 320 cash. When you put it all together the fact you can hit cost, you will kill a lot of noncore business, can tell you that is happen. The people at knight know it. The fact is you have the Market Making unit, 3. 50 sounds like a pretty easy price to get. All of the big investors bought a convertible preferred stock, this is how it held knight out. The price was 1. 50, if it goes to 3, youre right there. Plus upside in stock. We dont have any definitive decision. I know theyre meeting in new york yesterday. When you talked major shareholders, these are the belo shareholders, not the shareholders of people who have something to say, that make all the money. They think getco will win this, but time will tell. Melissa what is your gut on the timing . I am sure you have a sense of how much information is trickling out or how people feel, what is your gut on the timing . Charlie my gut is we will get some clarity today, one of these stories where there are 100 quarters chasing one dime. And i will be on to the next story. I cant remember the last time i made so much out of a 3 stock. But knight is much more than a 3 stock. Knight securities will touch that stock and that is kind of an interesting thing. This is a major player, it matters to the functioning of the market. Point out there are two different scenarios on the table. Yes, all cash, but they take the company private. They go public at some other point, that is the plan. Getco becomes immediately a Public Company. A reverse merger. Getco with becoming public through knight. I wonder what name they will keep, isis post they would keep getco or change it altogether. From a regulation standpoint you have to believe the sec would favor immediately Public Company as knight to the notion of transparency. This is a major player in the market, theres a problem at knight, there could be a problem handling retail order flow. Just the way it is. When you talk to the major investors, they think tomorrow, tonight, tomorrow. I am not in the room, but who knows what is going on. The ceo could be raising even more cash read if he matches in all cash bid, that is hard to say no to. Lori charlie gasparino, thank you. Great reporting. The white house says no thank you to house Speaker John Boehner trying to push through another bill for anybody making less than 1 million per year a break. Melissa so where does that leave us now . Neil cavuto ways in, and that is next. [ engine rev] [ male announcer ] the mercedesbenz winter event is back, with the perfect vehicle thats just right for you, no matter which list youre on. [ santa ] ho, ho, ho, ho [ male announcer ] lease a 2013 c250 for 349 a month at your local mercedesbenz dealer. Nicole certainly still a great day here in wall street, 13,338 is where the dow was sitting, nasdaq up one and a quarter percent. But tech stocks moving along quite nicely right now. General electric on the move today. A couple of things we should note first and foremost is they see their sales were 2013 up despite all the fiscal cliff worries trying to give positive comments however does not help in the stocks down 2. 25 . That is something, production and locomotives and such. Some of the other names in the same group like United Technologies expects profit to rise. There is a look, it really has been a great performer over 52 weeks up about 30 . Thank you. Melissa nicole, thank you so much. Lori leave it to washington cannot even agree on a backup plan for the fiscal cliff. John boehner offering plan b. For the white house. Managing director and host of cavuto is here with us. Neil, great to see you. One step forward, 12 steps backwards. Always try to see if we are making progress, where are we in this negotiation, if it even matters. Neil the street seems to think we are making progress. If it goes down without a deal, we will never materialize, they can at least say we voted on this tax thing, more than we originally proposed, we gave you a trillion dollars over 10 years. What did the democrats offer in return . They almost want to wipe their hands and move on. I dont know if itll work but it is a way to get the president or democrats to offer something. We have not yet to hear from them. Neil this is all part of negotiations and all of that. What wall street seems to be celebrating today, they might i only hearken back to the tarp vote. The first is rejected by congress and the market sells off the tune of 777 points, Congress Reconvenes and fantasy votes for a second tarp. A year later the dow is about 1000 points lower. Cooler heads will look at this indin the end and if they see a deal that is 1 1 tax hikes to spending cuts, that is hardly a deal. Melissa does not get us close to anything. As they point out all the