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>> trace: new evidence now that mexican drug cartels are increasingly extending their reach across the border and into american neighborhoods. according to a recent fbi report. nearly 40% of all gang members in the u.s. have some ties to the cartels. authorities say the groups are now working directly with street and prison gangs in some states,making police work even more difficult. adam housley joins us now with more. what are some the ways the cartels have kind of made this move? >> well, first of all, they have found a way to sir couple navigate law enforcement we talk to local seeing more...

Let's assume it passes the senate. what about the house? >> i talked to abulbasher of in republicans up on the hill. today, yesterday, before, saying they think to get this through the house they need a strong bipartisan vote in the united states senate. that will show that a lot of republicans in the senate are sticking their necks out on this deal that, yes, does raise income tax revenue, but they also feel like it does important things to keep the country from going off the fiscal cliff and so, the wild card is what the house republican also do but they think the senate can give them a litt...

Here in times square. the energy is palpable. everybody is so excited. few minutes before and after midnight are what it is all about. we are so excited because not only do we have bill and i, but we have got gutfeld with us tonight. , which you know, you never know where that's going to go. >> you don't. >> last year it went in a very interesting direction. one that we could not anticipate. he is here. kimberly guilfoyle is with us. >> pat benatar. >> benatar is going to play. we got a terrific group from broadway. they are going to hear all about tonight. >> and never to be outdone by our co...

His security forces to slaughter those syrian civilians. he continues to tell the security forces to fight for every inch of territory within syria. so, basically, 2013 is going to begin in the mind of president al assad as 2012 did, with preparing for a fight to the death. trace. >> trace: jonathan hunt, live for us in new york. jonathan, thank you. united states forces in yemen now apparently have a price on their heads, and so does the american ambassador. terrorists there reportedly offering a $23,000 payout to anyone who kills an american soldier and about 160,000 in gold for killing the ...

Lawmakers moved closer to a deal. the dow shot up 166 points for its first positive day in more than a week. the nasdaq gaining 59 to close back above 3,000. the s&p up 24. we have team fox coverage from the fox business network, rich edson is on capitol hill. first to peter barnes with the market reaction. peter? >> well, trace. the dow was up more than 1% today on the prospect that at least all -- or most of the bush tax cuts could be extended for most people under this framework deal. that would be worth more than $3 trillion over the next 10 years. that would be $3 trillion or more that wo...