97 of Small Businesses would not see their income tax go up by a single dime. Even the wealthiest americans would still get a tax cut on the first 250,000 of their income. Reporter the speaker dismissed a call from a fellow republican to give the president what he wants, saying its not good economics to raise tax rates on Small Businesses. Going over the fiscal cliff will hurt our economy and hurt job creation in our country. This is not good for our country. Its as simple as that, and the president understands it. Reporter Corporate Leaders were also making the rounds. A group from the Simpson Bowles backed organization fix the debt stopped in for talks on capitol hill. And later, c. E. O. S from yahoo, Archers Daniel midlands, caterpillar and other companies headed to the white house for a meeting with the president. Id like to hear the president s views about where the country is headed and support him any way we can. Reporter treasury secretary Timothy Geithner will meet with congressional leaders tomorrow, so there is hope serious face toface negotiations will soon be under way. Darren gersh, n. B. R. , washington. Susie one of the c. E. O. S meeting with lawmakers today joins us. He is david cote, c. E. O. Of honeywell. David, thank you so much for joining us. We really appreciate it. Did you get the sense from House Speaker boehner, he is ready to make a deal . I would say there is a recognition on all sides about the significance and importance of a deal. It is a real question about getting both sides en the room to actually hammer it out and get something done because we dont have a lot of time left. Susie president obama said he would like to have a deal by christmas. From what you heard today, how realistic is that . If they want to, they can get this done in a couple of days. It is just a matter of kind of working out some of these important details. But its a matter, i think, they just need to get together and get started. I think both recognize the need for a marketcredible 4 trillion deal, and it has got to comprise both tax increases that are believable and that will happen, and entitlement reform that is believable and will happen. Both of those things will have to be an important part of this. Susie did Speaker Boehner talk more specifically about what would be acceptable to his party . Did he talk to you about that . I would say everybody did a pretty good job of being very careful about where things might stand and what it is they were accomplishing, which im hoping is a good sign theyll actually make something happen. But im pretty worried. I can say as a business leader, im pretty worried we could go off the fiscal cliff because both sides decide to push brinksmanship beyond the brink. Susie honeywell has a lot of defense contracts, and if you go over the fiscal cliff, one of the first areas that will be cut drastically is defense. How are you preparing for that possibility . Weve been planning for a couple of years about defense reductions, because we thought that is one the things that is going to have to happen. Just being on the simpson bowle commission, getting a sense of how bad things are. There is an impact that is occurring across the company, and i think across other companies, about this uncertainty, can i guy still governor. I really stopped external hiring about june. I was only hire back 100 or 200 a month, so we steadily worked our census down. That helps contribute to a troubled economy. Susie you dont feel the way that Warren Buffett does, who was saying that the fiscal cliff has nothing to do with his investment decisions. Youre feeling much of of more of an impact on your daytoday business . Im looking more am i going to continue to grow outside of the u. S. Or invest in my facilities in the u. S. In the main, thats still true, but you cant just act like everything is fine when it is not. And i dont know all of the details of his answer, but i cant imagine he said he is acting like nothing is going on out there. Susie so you talk about taxes, and taxes are at the center of all of these negotiations. Are you open to new taxes . How would that impact your business . Well, at the end of the day, we all recognize that we need entitlement reform in the country. Thats actually the big nut. Thats the thing that needs to happen. The only way youre going to get that, though, is by having some kind of tax increase. P4l susie well, i hope it all works out. Thank you so much, david. We really appreciate your time. Thank you, nice to be here. Susie were speaking with david cote, c. E. O. Of honeywell. Tom still to come, with the fiscal cliff fast approaching, more companies are offering special dividends with the threat of higher taxes next year. Some optimistic talk today about the fiscal cliff gave the markets a lift, and so did some fresh economic reports. The Federal Reserve said the economy is growing at a steady pace. The Central Banks beige book report out today showed small gains in hiring and consumer spending, but Manufacturing Activity slowed down. Now, in a separate report, new home sales fell slightly in october, down just 0. 3 compared to september and below expectations. The median home price was 237,700, lower than a month earlier. And investors were encouraged by news from spain about a deal to clean up its struggling banking sector. The dow gained 107 points, the nasdaq finished higher by 24, the s p 500 was up 11. John manley is chief equity strategist at wells fargo advantage funds. Tom john, you just heard the c. E. O. At honeywell talk about the lack of real hiring plans, partly because of the fiscal cliff. Does that concern you as a stock investor . It does. I mean, i think the one thing about being a stock investor, you sort of have to buy with uncertainty and sell on certainty. So it is an opportunity, but im not sure it is one that has fully unfolded yet. Tom so are you hearing what you want to hear regarding the fiscal cliff . No. Because i shouldnt be hearing anything. I think when the real negotiations occur, when they really hammer it out, it wont be public. You cant really discuss this sort of thing in public. Because if they are going to resolve it, promises will have to be fudged, at best, and thats not something you do right away. You sort of have to go through a process and this is the early stage of that process. Tom early stage, and yet five weeks left before we go over that fiscal cliff. And how can investors keep their eye on their investments when there is so much uncertainty. It is not even five weeks. I think investors tr to focus on the fundamentals of the funds they own. They have to focus on their positions and where things will be in the longterm. Tom if things go to the worse possible scenarios, were talk be about two down quarters. And were talking about something beyond that. There are some industries that are attractive, and there are some opportunity in the markets. If youre patient, if youre willing to sort of give away the first month or two, i think you can still do very well longterm. Tom name some names. What are some new ideas you will put new money to work . I prefer big rather than small believers and i prefer growth. The Health Care Sector has dont well. I think were later in the game. I think technology, which has been pummelled recently by what is going on in europe and what people are concerned about in the u. S. That cycle hasnt worked itself out. There is still a business reup cycle. And finally energy. I think energy, whether it is big or small, is attractive at this point in time. The u. S. Is fighting to have more Available Energy than we ever thought we had in the last 30 or 40 years. And i think that industry, as it develops, will be profitable for the people in it. Tom a little bit of optimism from the desk of wells fargo. John manley with wells fargo funds. Susie good news on gas prices theyre falling after spiking because of hurricane sandy. Thats welcome relief to many drivers, but it still costs more to fill up your tank now compared to a year ago. Erika miller reports from one of the most expensive cities to fill er up. Reporter here in new york city, the long lines and gas rationing are finally gone, but theres more good news. Like the rest of the nation, gas is actually cheaper now than before Superstorm Sandy. A month ago, Superstorm Sandy shut down refineries in the northeast, delayed Oil Shipments and left many gasoline stations without power. In some hard hit areas, prices spiked more than ten cents a gallon. But now, the situation has drastically improved here and around the country. Regular unleaded costs an average of 3. 42 nationwide. Thats 12 cents below where it was a month ago. But drivers are still paying about 12 cents more for gas today than a year ago. A big reason is escalating middle east tensions. Anytime you have that kind of conflict in the middle east, whether its the israelis or the egyptians, the syrians, it really the disruption of flow, you know. Any time you get a problem in the gulf, its really going to hinder oil prices. Reporter if the recent ceasefire between hamas and israel in the gaza strip holds, many think prices at the pump will drift lower. It also helps that u. S. Refineries are producing ample supplies of gasoline. A. A. A. Expects regular unleaded to end the year between 3. 10 and 3. 30 a gallon. But longer term, the price of gasoline depends on the strength of the global economy. My outlook right now for gasoline prices is, we are going to continue to come off some more . The thing with gasoline, you cant shove it down peoples throats. They just dont have the money for higher oil prices. Hence, thats going to put a cap on it. Reporter with only about a month left, 2012 is expected to be the most expensive year for gasoline ever. Americans are expected to spend about 12 billion more to fill up their tanks this year compared to last. Erika miller, n. B. R. , new york. Susie what determines gas prices . As erika just reported, theres more to it than supply and demand. To learn more about prices at the pump, visit our web site, www. Nbr. Com, and look for the nbru tab. Tom while gas prices remain over 3 a gallon, the Auto Industry continues its slow and steady climb next year out of one of the industrys worst slumps ever. That was the prediction today from g. M. North America President mark reuss at the los angeles auto show. G. M. Unveiled its first all electric plugin at the show, and, as Diane Eastabrook tonight, the Company Hopes the spark can give the electric Vehicle Business the jolt it needs. Reporter the Chevrolet Spark e. V. Will hit showrooms in california and oregon next summer. Engineers are still testing the pure plugin so General Motors cant say yet how many miles the subcompact will get on a single charge. What it can say is new technology will allow for faster charging. The spark wont be cheap. With tax incentives, the cars Sticker Price will be about 25,000, double the price of the gaspowered version. When you look at the functionality that this vehicle has and the range we offer which we believe is the top of its segment it is going to be extremely competitive from a price perspective. Youre always going to pay more for an electric vehicle than you would for a traditional vehicle with a gas engine. Reporter General Motors has placed a huge bet on electric vehicles, hoping theyll help the Company Reach the governments 50mile per gallon corporate average fuel economy requirement in 2025. But so far, interest in e. V. S has been lukewarm. G. M. Launched the electric hybrid volt nearly two years ago, but so far the company has sold only about 30,000 of the vehicles. Analysts blame lower gas prices and not enough charging stations for weak demand, but they think that could change. Its just not something that the customers are demanding right now. But, you know, looking back over time when toyota came out with the prius, it was kind of like who wanted a hybrid car . And now prius is the largest player. I mean, they are now 50 generally of the hybrid market. Reporter g. M. North America President mark reuss says the Company Remains bullish on electric cars but is developing other technologies, as well. I think c. N. G. , compressed natural gas, is a huge opportunity on an unleveraging of foreign oil piece of this, as well. And if you look at the shale that we have and the reserves that we have in the united states, and you look at the cost of mining those, it puts the cost of that about half the price of gasoline. Reporter g. M. Says in time electric vehicles will become more affordable as Battery Technology improves and gets less expensive. Diane eastabrook, n. B. R. , chicago. Tom tomorrow, well have more on the Auto Industry with the outlook on the u. S. From the worlds most profitable automaker, volkswagen. Susie more pressure on s. A. C. Capital today on word that the u. S. Government might bring civil fraud charges against the firm, one of the biggest hedge funds in the world. During a Conference Call with investors, the company said it has received a socalled wells notice from the securities and exchange commission, often the first step to formal charges. The move comes a week after a former Portfolio Manager was charged with running the most lucrative Insider Trading schemes. S. A. C. s billionaire founder, steve cohen, told clients he is confident that he acted appropriately. Well, another big company today authorizing a special dividend in anticipation of higher taxes next year. Now its costco jumping on the dividend bandwagon as a way to beat some of the impact of the fiscal cliff fallout. The wholesale Club Operator announced a special dividend of 7 a share to investors. It will cost the firm an estimated 3 billion. Susie tom, investors like the news. Coscos shares rose more than 6 , or 6, and a gain of of . Tom weve seen a list of Companies Providing these special dividends, and well have more reporting on that tomorrow. Today, meantime, in our market focus, some encouragement from capitol hill in the white house over avoiding the fiscal cliff. And the major stock indices head higher. The s p 500 began the session by moving lower, hitting its lowest level of the day in the first hour. It moved into the green for the session the same hour president obama said they may have a fiscal cliff deal by christmas. The index finished at its high of the day, up 0. 8 . Volume grew from yesterdays pace. 708 million shares traded on the big board, just over 1. 7 billion on the nasdaq. It was the Consumer Sector that was the hottest, with discretionary stocks up 1. 3 . The Energy Sector gained 1. 1 . Industrials gained 0. 9 . Retail stocks were on the buy list for traders and investors with stores appealing to a broad array of shoppers. Moving higher, there was the sector leading gains of j. C. Penney, rising 4. 6 . Volume was more than double with the stock bouncing off three year lows hit last week. The company has struggled to remake itself with fewer promotions. And then theres luxury Goods Company coach. It gained 4. 4 . Last week, the stock fell to a threemonth low as it has trended lower since the spring. Other consumer stocks rallying. V. F. Corporation is the Company Behind brands like lee jeans and timberland shoes. Shares jumped 4 . This is a onemonth high. Best buy gained another 3. 6 as it rebounds off a decade low. The Company Continues to wait to see if its founder will make a buyout offer. As for teen clothing stores, a couple of different outlooks from American Eagle and aeropostale. American eagle shot up 7. 1 after a big jump in quarterly earnings. The company credits stronger sales and fewer promotional discounts, and it expects that mix to continue next year. But watch shares of aeropostale tomorrow. After closing up 6. 1 , they lost that much and then some in extended hours trading. The companys Third Quarter earnings were stronger than expected but called its Holiday Outlook cautious. Shares were trading about a dollar below this closing number. Also, after the closing bell, a buyout in the Retail Technology field. N. C. R. Makes software that runs cash registers and automatic teller machines. It has agreed to buy retalix, which makes software for Grocery Stores and restaurants. N. C. R. Will spend 650 million in cash to buy retalix. Shareholders would get 30 per share. Rumors of the deal sent shares of retalix up 34. 7 during the regular session, closing just shy of the buyout price. N. C. R. Was down less than 1 but was up in extended hours trading. All five of the most actively traded Exchange Traded products were up, led by the nasdaq 100 tracking fund, up by 0. 9 . And thats tonights market focus. Tom more than a half billion dollars, thats what the jackpot of tonights multistate lottery, known as powerball is up to. Normally we dont report on such games of chance, but it is awfully hard to ignore a potential 550 million windfall. For people waiting in hours in minnesota, to dreaming in miami. I would take that 500 million, and i would only get 250 million, because i would have to pay you the taxes, it would put you in the 50 tax bracket. It means i would get 125 million, free and clear, which is my mone