Here is another reason for todays selling, a broader investigation of foreign bribery charges at walmart. When at that came out this morning, the whole market turned south. Thats where we are this thursday morning. More taxes, more selling and four more years. Varney company about to begin. Cer ] this is steve. He loves risk. But whether hes climbing everest, scuba diving the Great Barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and being ready, no matter what happens, which isnt rocket science. Its just common sense, from td ameritrade. [ male announcer ] they are a glowing example of what it means to be the best. And at this special time of year, they shine even brighter. Come to the winter event and get the mercedesbenz youve always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho [ male announcer lease a 2013 glk350 for 399 a month at your local mercedesbenz dealer. The big story of the day. The president s version of compromise. Take it or leave it it, but, yeah, tax the rich. And even if it hurts the economy. The cbo nonpartisan analysis, 200,000 jobs are lost, can we afford that, the economy is weak and the debt is skyrocketing and the president dug in his heels. We should not hold the middle class hostage while we ddbate the wealthy, we cannot afford to extend the tax cuts for the wealthy. What im not going to do is extend bush tax cuts for the wealthiest 2 that we cant afford when it comes to the top 2 . What im not going to do is to extend further a tax cut for folks who dont need it which would cost close to a trillion dollars. Well, it was around the time of that News Conference that the dow started to fall off a cliff. You can see it, a big drop for the stock market in the afternoon as the president was speaking taxing the rich. The dow has lost points since the election. The day at the white house, a Group Calling themselves Patriotic Millionaires will meet with Senior Administration officials, not the president. This is a group of millionaires in favor of higher taxes on the wealthy. Its not just taxing the rich, there are 17 other small tax changes in the works according to the wall street journal. Our good friends at cme would phase higher taxes and trades and oil and Gas Producers would lose some deductions for expenses and even golf courses would be hit, winding away a tax cut for golf owners that would maze 600 million a year, not just the rich, a lot of people and businesses will be nickel and dimed. And the markets responded to four more years of president obama. Nearly 700 point drop in the week since the election. And the rich are cashing out. 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During the final days of our semiannual sleep sale, save 500 on our classic series special edition bed set plus special financing on selected beds but hurry sale ends sunday. Youll only find the innovative sleep number bed at one of our 400 stores, where queen mattresses start at just 699. And whats going to happen when trading begins on wall street. Its thursday morning, and were what, eight days after the election and six trading sessions, i believe and the dow industrials have dropped 674 points in that time frame. Its the obama selloff. Does it continue today . Got a couple of items in the news background and lets see where we go here. Number one, 439,000 new claims for jobless benefits last week, only part of that big jump can be ascribed to the hurricane sandy, only part of it. Maybe the underlying trend is a worsening employment position. And as for the Consumer Price ind index, it looks benign. Only. 1 , up 1 10 of 1 , and so, it looks like no inflation to speak of, certainly not measured inflation by the government. But we do have that big jump in jobless claims, and we also have a forecast of 2. 1 growth, the next year, and the economy on standard poors, thats the news back drop and the big deal here is does the obama selloff continue this thursday morning and lets see. The opening bell has stopped ringing and trading has begun and were dead flat to slightly higher. By the time the stocks are open, you can expect the dow to be on the down side and it is, three points lower as of now. Listen to this one, weve got news on walmart and its driving that particular stock down. Its revealed that an internal investigation finds possible violations of foreign bribery laws in other countries besides mexico. And the scandal in mexico erupted last year and walmart says its broader than that one country and reports that its sales were down, not good. So, nicole, have we opened lower for walmart . You know, im looking through to try to find the good news, theres little good news, you really have given the points here and were down about 2 1 2 and sales are below estimates and their outlook is narrower and not good news, its trailing estimates. And also the fact that traffic, the amount of people going into the stores is somewhat consolidated before china, conserve gasoline, believe it or not. Thats not the good news and they predict the Holiday Season to obviously be highly competitive. Not great news here for walmart. Stuart im looking for the ray of sunshine for walmart and frankly, i dont see it. All right, nicole, thank you very much indeed. Theres a look at the big board, and check out the dow for a second. Were wondering does the obama selloff continue . Yes, it does. This is not huge selling by any means. 16 points lower, but you add it all up and as of right now, we are roughly 700 points down since the day after president obama was reelected for four more years, now, this. The rich, theyre dumping high dividend stocks, and theyre selling assets this year, and theyre trying to avoid paying more in profits and dividend taxes which will hit next year, president obama said in a News Conference yesterday, hes open to compromise on the fiscal cliff thing, but, wealthy americans, they will be taxed more. Im open to compromise and open to new ideas and hearing republican after republican agree on the need for new revenue from the wealthiest americans if were serious about reducing the deficits. Stuart he wants to raise tax rates on income and dividends and profits as well. Joining us now, steve is the author of how rich people think, steve, welcome to the program. Good to have you with us, sir. Hey, thanks, stuart. Stuart my premise is the stock market is way down because a lot of people, rich people in particular, are selling stocks on which theyve already made a profit. They sell now, they get a lower tax rate than if they sold next year and took their profit in 2013. What do you say . Absolutely. This is the time to get out and were seeing it on the dow, were seeing it in the different sectors, i mean, people are selling off like crazy and its the right play. I think. Stuart its tax driven . Oh, i think so. Yeah, i think its i mean, since the election, its been like a frenzy and i think well see it throughout the rest of the year. Stuart all right, your book is how rich people think so youre telling us that they think in terms of reducing the tax bill. Is this extended beyond stocks . I hear theres a lot of selling of real estate where you may have made a profit and art, we were quoting one 75 million yesterday. A big diamond that went for 21 million. Is it an across the board selling . Exactly. Its a mentality, its a consciousness, in jewelry, real estate, in stock. Every area theyre selling off on. If theyre selling off in every area, what are they doing with the money . You know, thats a really good question. I mean, thats the Million Dollar question. What do we do with our money now . Were looking for gulfs gulch and wondering who is going to build that lead up there, i dont know. Thats a good question. Thats interesting. You are in touch with all of these rich folks, we know theyre selling assets and getting cash, but you dont know where that money is going . You want to guess . Well, probably, well, probably the most common answer im getting, stuart, theyre moving it off shore and im hearing lots of Different Countries theyre moving it to and trying to find a safe haven because they know that the taxes are going to be higher than the Obama Administration is currently citing and theyre afraid and theyre terrified. That amounts to tax evasion, you move money off shore youve got to declare where it is and any income that you made on it. And are you telling us that rich folks are basically avoiding taxes . Well, i think theyre trying to be creative, like they always have been of the creativity makes the rich wealthy and thats what i found out over interviewing them over the last 30 years is that creativity is the best thing and i think theyre trying to be honest about it, but creative. When does it come back to america . I dont know. Its a really good question, im asking them that and they dont know either. Is america ever going to be the same . I dont know, four more years of both the Obama Administration, are we going to are we going to recognize this question after four more years, i hope so, i dont know. Stuart youre painting a pretty grim idea of the mood. It sounds like theyre in despair. They are. Theres no question. I mean, after the election, i never have seen and talked to more depressed rich Business Owners than on november 7th. I mean, ive never, never experienced anything like it in years working with the wealthy. Stuart when were talking the wealthy, business executives, people who made money in corporations, are you talking about inherited wealth. Talking about traders . What kind of rich people are you talking about . Yeah, most of the entrepreneurs, thats the group i work with the most and interveered the most, theyre entrepreneurs, and some Corporate Executives and people that built their own business and came from nothing. No one inherented, i dont work with the inherited wealthy. Stuart wouldnt touch them with a ten foot pole. No, i worked with them in the 80s and got away from them real fast. Stuart how do you explain then, if youre working with a lot of wealthy entrepreneurs, and disappointed with the election, didnt they vote for president obama . If you break it down by zip code where rich people live, there was a very Strong Majority in favor and voted for president obama. You want to explain this . Its not i tell you what if theyre out there theyre hiding, theyre not the wealthy people that built businesses that i work with. These people all across the board voted for romney and you know, you cant blame them. Stuart okay. Gloom and doom and despair among the rich. You heard it here, steve, thanks very much, indeed, steve. Violence in the middle east, i want you to look at this video. Threeisraelis were killed after gaza attack, youre watching it now, aabbing that killed a military commander for hamas. 13 palestinians have been killed since that attack, and the rockets are still flying, air strikes between israel and the gaza strip are continuing and all of that keeps goingen israeli Prime Minister says his country is quote, prepared to expand the operation and others say that a Ground Invasion is a strong possibility if hamas doesnt stop firing rockets. Hamas has responded saying, quote, the occupation has opened the gates of hell. This has had a direct impact on the price of oil. Its up, not much. Its up a little, but the down trend that we saw recently appears to have come to an end. 86 bucks for oil. As for gold, no real impact there at all. The nine inflation figures, gold 1721 per ounce. President obama defended u. N. Ambassador susan rices explanation for the benghazi. For them to go after the u. N. Ambassador who had nothing do with benghazi, and making a presentation based on intelligence she had received and to besmirch her reputation is outrageous, should i choose, if i think that she would be the best person to serve america, in the capacity, the state department, then i will nominate her, thats not a determination that ive made yet. Stuart however, republicans are questioning why ambassador rice was even involved in the first place. Here is congressman Lindsey Graham from yesterday. I cant believe the president said that we sent someone out to explain benghazi who had nothing to do with benghazi. Thats pretty stunning. Why did they pick her . If she had nothing to do with benghazi, shes not in charge of conflict security, she works in the u. N. Why nobody from the state department . I believe shes a close political ally of the president ic. Stuart theres a controversy for you. Another headline from yesterdays News Conference, a main item on the agenda for the president in the next four years, its Climate Change. If you listen to the president carefully, hes all in on this. And probably means regulation, a gusher of money coming into washington. Here is new at 10 well tell you exactly what the president said. Thats top of the hour on Climate Change. Now, well get to toyota. Bouncing back, is that right . And nicole, i want to know how much its bouncing back, but why is it doing it. Sound the bells and the whistles, throw the confetti. Take a look here at toyota motor. Its a great day when you start to see a company trying to do the right thing, doing recalls in order to, in this case, fix water pump defense and we heard about 2. 7 million recalls yesterday from Toyota Motors and much more forthright than years ago. Here it is bouncing back after selling off. Thats interesting, nicole, if youre forthright about a recall and a problem with many so of your cars, youre rewarded with what, a 4 bounce of your stock, thats interesting. You know, its the right thing to do, ahead of the game and the article i was reading is about Brand Division and how many recalls can people really handle. So, thats the one, you know, the ball in the air there for toyota. Stuart nicole, thanks very much indeed. By the way, the dow is now on the upside. A gain of 27 points and if you look at the screen carefully, weve got one of the bugs on the bottom right corner and thats walmart, its down 3 bucks at this time. And walmart, poor earnings, poor outlook and it has revealed that an internal investigation into bribery, foreign bribery, may involve more countries. Thats a negative for walmart and well keep it up throughout the program. The dow is up 26. Ive got your seven early movers for you, better than expected at the retailers called the buckle. Its down 4 . And diamond foods, restated, i should say restated Financial Results erasing 56 Million Dollars worth of profit and of course, its down 20 . And Texas Instruments cutting about 1700 jobs, roughly 5 of the work force. Its moving into the mobile market, cutting the workers there, its up a little. Another teen retailer, hot topic, profit up 38 , strong sales, its up not much. Dryships, it lost more than expected. Down it goes, below 2 bucks a share, its an 8 loss and more people buying 30 spatulas, our producer has a thing about 30 spatula, he hates them. Theyre from williamssonoma, and the sales were up strong, big boost of profits, nonetheless, 30 spatulas, brings you down to 44 bucks on williamssonoma and people spend money on your pets. I know that since i bought my first dog. And raised the profit outlook, thats up 4 and the dow industrial is up 18 points, more than 70 of latinos voted for president obama last week, and thats even more than in 2008. And after the break, a frequent guest on Varney Company who called it wrong. So why do latinos back the president so strongly . An explanation coming up. [ male announcer ] at scottrade, we believe the more you know, the better you trade. So we have ongoing webinars and interactive learning, plus, inbranch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. Our teams have the information you want when you need it. Its anothereason more investors are saying. [ all ] im with scottrade. Well, having a ton of locations doesnt hurt. And my daughter loves the santa. Oh, ah sir. That is a customer. Lets not tell mom. [ male announcer ] break from the holiday stress. Fedex office. 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. Suppose you could stretch a point and say the obama selloff has come to an end and the dow is up 8 points, but down over 600 since the election, move on. Check the price of oil. 86 a barrel today fighting around gaza keeping the support line under the price of oil. Now, its time to bring in another of our guests who got the election wrong. And it wasnt just me, no, nationwide, 71 of hispanics voted for president obama, thats a bigger percentage than the president got back in 2008. And jennifer predicted he would lose support among hispanics and jennifer is with me now in new york. You were wrong. Hello, stuart. Stuart i was wrong, you were wrong, so why . Good thing you only asked me about florida, i was only wrong in one state. Stuart i maintain w