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tv   First Business  KICU  November 8, 2013 4:00am-4:31am PST

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market by storm. reaction to the public debut straight from the trading floor. in today's cover story....the sectors that are seeing explosive growth in hiring. plus...the surprising destinations that are turning into travel hot spots. and.... in traders unplugged. the guys size up the latest controversy in retail... first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning!it's friday november 8th.i'm angela miles. in today's first look: twitter takes off.shares rallied 72% on the opening day of trade as investors sign up for the social media's a jobs number
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friday.the market expected 120,000 jobs were added to payrolls in october and the unemployment rate will tick up to 7.3%.stocks sink ahead of the unemployment news.yesterday the dow fell 153 points wiping away yesterday's gains and then some.nasdad dropped by 75 and sp lost down 12 and oil edged 52 cents lower. daniel stecich of athena advisor services joins us on this friday morning to get the ball rolling with a look at the market. good morning to you! > >good morning how are you? > >i'm doing well. we call this trader talk but today i'm calling it twitter talk because everybody's talking about twitter. did you buy the stock on the first day daniel? > >no i didn't buy it. i think ultimately it will be a good stock but until they can figure out how to monetize their product----and it is a good product----but they can't figure out how to make money yet. i'm not gonna touch it. i'll let the thing drop down a little and get a better handle
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on what they'll actually do going forward. > >outside of twitter there's another big deal in the market and it's the jobs number coming out today. what's your anticipation? > >right now expectations are for 120 thousand with an uptick in 7.3% on the unemployment rate itself. and this is an interesting number. normally you have a one way or the other but this time i think the direction might be the same no matter what. if we have an upside surprise in the non-farm number, the market's gonna anticipate this as stronger economy and the fed's gonna taper. that's gonna scare the market. they're gonna push it off. i don't think that's something to be fearful about in the long run, but it will happen. the other thing is, if it comes out weak on this time they're gonna say wait, is the economy not growing? and even if the fed continues to ease the way they have been, is it gonna keep going because the market's not creating the jobs that we need. so i think you might have a double whammy on the downside here. ultimately on the long end, i'm gonna like this market if we see above 120 i think we're going the right direction. > >good to hear. thank you daniel. have a good weekend.
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> >you too. thank you. it's day two of trading for hot ipo twitter after a "glitch free" start on wall street thursday. twitter fans who use the social media site for community service rang the opening bell at the new york stock exchange home of the ipo. twitter opened mid-morning after pricing at $26 dollars and picked up enough followers to push the stock 72% higher to close at $44.90. twitter now has a market cap of $25 billion dollars. the company's ceo tells cnbc the plan is to pour money back into the site to improve advertising. the stock's soaring debut reportedly also created a number of new billionaires and millionaires who work at twitter. in our cover story, payroll company a-d-p reports that employment growth slowed in october in most large states, except california.but there are indicators that hiring for jobs that pay more than 21-dollars- an-hour could be poised to pick up. a-d-p reports that the u-s
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economy added 130-thousand private sector jobs in october. in september, the number was 166-thousand.the labor department's numbers come out this morning. judith lansky, a career counselor says don't be discouraged. "it's getting better. it's far better than it was at the bottom of the recession." despite october's numbers, there are indicators that job hunting, especially for positions with compensation above 21-dollars an hour is about to improve for the next three years. "these are sr. vp of sales, head nurses all expected to gain through 2017 and beyond. " careerbbuilder projects the u-s workforce to grow 4.4 percent through the end of 2017.that's faster than anytime since the recession but slower than before the recession. still, getting hired for these positions will likely take extra effort. "i think every single person says i have good time- management skills. you have to show how innovative you are.
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what can you add that opther people can't." where are these jobs? market research that pays 29-dollars an hour. registered nurses and i-t specialists who earn between 32 to 35 dollars an hour. and software developers who make nearly 48-dollars an hour. if you interview for any of these, expect to be asked to think on your feet. "they're doing a lot of behavioral questions. they'll give you a situation and ask, "what would you do?" despite the slow job growth in october, careerbuilder also listed cities expected to outpace the nation in high-wage job growth--three of them are in texas---austin, houston and leading the nation--san antonio.
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the latest gdp number is offering insights into the pace of economic growth. gdp-- which is a measure of goods and services produced in the u.s. -- grew at a rate of 2.8%. topping estimates of around 2%. jim dunigan, executive manager of investments at pnc bank, notes- areas that are slowing down are government spending and corporate investing. while sectors picking up are the labor market, exports and manufacturing. "manufacturing is expanding.. consumers, based on the employment picture, improving, net worth is picking up. so those factors going forward will likely be a positive." suprisingly the government shutdown had minimal effect on gdp but dunigan says the could show up in today's jobs numbers. on capitol hill -- frustration is building behind closed doors. president obama met this week with a handful of senate democrats. the lawmakers are reportedly nervous about
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whether the less-than smooth rollout of the affordable care act's website will impact their re-election bids. senators begich of alaska and udall of colorado are two, anxious that fuming constituents in their states may take out their frustrations on them at the ballot box. however, white house spokesman jay carney says the president is not concerned that the technical glitches related to the affordable care act will affect next year's mid-term elections. goldman sachs is the latest bank to confirm its under investigation.investigators from the u.s. and europe are checking into suspicious foreign exchange trading at several major banks. jpmorgan chase, citigroup, barclays, ubs, deutsche bank and royal bank of scotland are also facing probes.usa today reports --it's believed regulator are examining evidence that bank traders used inside information for rate rigging. the banks are cooperating. the cia is paying at&t for data to help with counter-terrorism investigations.the cia reportedly will pay at&t more
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than $10 million a year to access phone could add to worries of government spying and privacy.but the program includes safeguards such as "masking" several digits of phone numbers. fannie mae and freddie mac are closing in on paying back all the money owed to taxpayers from the 2008 bailout. the wall street journal reports.. fannie and freddie have recieved nearly $188 billion from the treasury through the bailout.combined-- the two will have made more than $185 billion in payments to the treasury by the end of the year.since the finanical collapse-- freddie has reported 8 straight quarters of profitablity.fannie has reported 7. its all about a room with a view. real estate site trulia ranked the latest luxury home building trends, and finds that it's actually what's on the outside that matters most. "we found that the trends that are actually moving up in terms of luxury listings are those that have to do with views. big windows, expansive views, and outdoor features like tennis courts. those are terms that are all trending up in luxury listings." that was jed kolko of trulia.
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he adds fewer homes are being constructed with extravgant kitchens, meaning fewer custom cabinets and granite countertops. formal dining and living rooms are also less popular. luxury is also on the minds of automakers. motor trend has named the cadillac cts its 2014 car of the year due to the sedan's sophisticated technology and high luxury standards. the auto industry is still rebounding from the recession, and edward loh of motor trend says luxury is back in focus all over the globe. "alot of luxury car manufacturers are really getting back into the game. it's one of the most competitive segments out there. it's driven alot by the rise of china, the middle east, russia. these are huge markets for luxury vehicles." loh adds the entry level luxury segment, with vehicles under 50 thousand dollars, is quickly becoming one of the most competitive markets. tesla is feeling the heat after a third car fire in six weeks. a third model-s caught fire
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this week in tennessee. previously, one burned near seattle and another in mexico. no injuries were reported. meanwhile, problems have been reported with the 20-13 model-s. one car shopping website and tesla owners in an online forum report ominous noises during acceleration and deceleration. after rising 400 percent this year, tesla shares sunk over 11 points on the news to close at $139. retail sales bumped up in october, despite fears that the government shutdown would put a damper on spending.sales rose 3 percent, boosted by steep discounts and promotions, compared to an expected 2 percent gain.analysts say deep markdowns will continue throughout the holidays.jcpenney surprised the market with a 0 point 9 percent sales increase october. it's the retailer's first monthly gain in nearly two shares closed up 5% at $8.15. wendy's third quarter earnings were hit or miss.wendy's earned 8 cents a share compared to 6 cents expected by analysts.and
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third-quarter revenue rose about 1 percent to $640 million.but missed estimates of $643 million.wendy's is working on revamping its image with a new logo, restaurant renovations and a new 'right price, right size' menu.shares dropped a point to close at $8.05. food company nestle is slimming down.nestle paid $600 million for weight-loss company jenny craig 7 years, it's selling the brand to private equity firm north castle partners. north caslte already owns "curves" and plans to combine it with jenny craig. the food & drug administration is taking steps to ban trans fat from the nation's food supply.the fda plans to declare that partially hydrogenated oils, the source of trans fats, are not safe and cause clogged arteries, heart disease, and even death.restaurants such as mcdonald's have already eliminated trans fat from the menu, but health officials say it is still widely used in the
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food industry. still to come: has lulu lost it? the guys give us their trade on stocks that are covered in controversy-- in traders unplugged. plus, why flyers may feel the squeeze this holiday season and next, where the savvy travelers are jetting off to in 20-14. stick around.
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see these hands? they gripped the wheel of a humvee in afghanistan. these hands? six years treating soldiers. twelve years, flying choppers. my hands? they're here for the person who fought in afghanistan. i made the call and got support for my sister. my hands are here for the person who treated those soldiers. i helped connect my son with the care he's earned. mine take care of the person who flew those helicopters. and if life gets overwhelming they're ready to dial the veterans crisis line. the veterans crisis line is here for all
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veterans and their loved ones. call 1-800-273-8255 and press 1. or chat online at airlines are adding more seats in anticipation of a very busy holiday travel season.the number of jetsetters is expected to jump 1 and a half percent this year, or about 31 thousand more people per day.united, jetblue, american and delta are all adding seats. the busiest travel day is typically the day before thanskgiving, with 2.4 million americans up in the air. savvy travelers are already scouting out deals for 2014. joining us now via skype is gabe saglie of travel zoo. good to have you back on the show. > >hi angela. > >please give us your top 5 deals for 2014. > >destinations that will offer really good value for 2014 domestically---the jersey shore. 2014 will be a recovery
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mode certainly in effect there in the jersey shore summer and beyond. palm springs---a lot of new hotels opening up after major renovations opening up for the first time. also a new airlift into palm springs so good values there in the southern california desert. internationally---european river cruises. we've got some major brands like viking, ama waterways, avalon. launching brand new boats on river cruises so expect that type of very intimate vacation to become more affordable. india is certainly on the bucket list of a lot of people. the rupee is weaker and hotel chains are opening up brand new properties throughout the country in 2014. that will generate some good deals. and there's ecuador which has really kicked up the amount of dollars they're spending especially on the u.s. to promote travel to ecuador. so expect some great deals from them throughout the course of the year. > >what can we anticipate as far as airfare prices? > >airfares as we head into the holiday season and now that we're looking back at what we've seen so far this holiday season, definitely higher than they were last year and that's a trend we expect to see in 2014. you want to book early no matter what kind of a vacation you're taking and i think loyalty will play a big role in 2014. the airline you're loyal to will pay
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you back with maybe not necessarily better pricing but things like upgrades and just an easier travel experience overall. > >and what about hotel prices? > >they have been trending upward a little bit too but i think if you look at certain destinations like major cities, chicago, new york, san francisco----it's during the holiday season that we're seeing some of the lowest prices of the year. so, if you want to go to these cities wait until the holidays or any sort of holiday throughout the year and that's when you'll find some of the better pricing. > >gabe, always a pleasure. come back soon. > >thank you. coming up...a "body check" in traders unplugged you won't want to miss. and later...tracking twitter. a trader explains why he told clients to "stay away" on the first day of trade. we will be right back!
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time now for some friday fun. from the floor of cme group-- alan knuckman and andrew keene. good morning guys. we're gonna get you started with topic
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number one: retail ripoff - the next nyse ceo says small time investors are getting ripped off? do you agree? alan: no i don't. not if you're an investor and you're looking longer term. if you're a trader, then you're at a short term disadvantage. the only thing that i can measure right now are the retail brokerage stocks, and they've gone nothing but straight up. so i still think that's a very positive sign. andrew: i'd like to see what he's looking at because i tell a lot of my traders that if they're paying per trade, they shouldn't be paying 9.95 per trade. so maybe they're getting ripped off but they're getting ripped off from their broker not from the new york stock exchange. if they're actively trading, paying $10 a trade, that's a lot of money compared to what you have in your account. alan: etrade financial is looking to make another push up to 28 or so from a technical
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standpoint. a lot of upside potential gains here. you gotta remember how far these stocks have come. but the lesson here is that the new york stock exchange guy that you mentioned, he came from the ice and the ice shares have gone to 200 in new all time highs. angie: topic number two--- fashion faux pas - abercrombie- losing teen appeal-- making larger clothing , lulu still having see thru troubles with yoga pants-- and implies its' women's bodies - would you own either stock? andrew: i'm glad i have a choice because if i had a choice i would choose lululemon. i have this philosophy where i don't buy a stock where i don't shop at. alan: never criticize women's bodies! andrew: lululemon has better profit margin and more growth potential for the future. i like that better. abercrombie was a company that was so 10 years ago... so i would have to buy lululemon. alan: lulu just keeps making too many mistakes. did you see video where you can actually look through the pants? andrew: you go to the store anytime and it's crowded. it's more crowded than the apple store! alan: abercrombie and fitch has gone down so much. it's at 33.
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30 is a huge baseline of support--- andrew:---have you seen the people that work there? why would you not go into lululemon? alan: 30 was the baseline of support---a 2009 break out. we've come right back to that. lean on 30, you can buy some january of 2015 25 calls. your break even's only a dollar higher. angie: topic number three--- trading touchdowns. trading touch downs- the company "fantex" offering investing and trading in football players recently ipo-ed-- are you an ipo buyer? alan: it's just another way to take advantage of those financial markets. if you can control your risk, i'll trade anything. but these two players, so far vernon davis and another guy---i don't follow football that well. but it's a present value of future earnings equation just like bowie bonds. so there is money to be made. ipo's are all the rage right now. but that as a bull has got me a little bit worried. i think people are getting a little bit irrational with their money with all that's happening. and i'm not saying that twitter word. andrew: alan doesn't know anything about football. i can't believe you pulled vernon davis out. that was amazing for me. i would have to see the hidden costs associated with this. there's a lot of marketing costs. so they're gonna take money and they're gonna market vernon davis. you get his potential future growth minus what they spend to market. so there is a lot of hidden costs, so keep an eye on that. i love the concept but i think there's gonna be too many hidden costs outside of it. alan: and with ipo's like twitter for example, you can't use options to hedge and protect yourself. so for a couple of weeks you're just naked in the world and anything can happen. angie: on to the bonus round question and it's ticker time--- which of the tickers are actual symbols of publically traded companies? a)www, b) wage c)sale or d)all of the above?
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andrew: all of the above. alan: it's always all of the above. angie: it's all of the above. thanks for coming on the show guys. first business continues right after this.
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trader tim biggam, of tradingblock joins us now for a closer look at that twitter trade. what do you think? were you a buyer on the first day tim? > >absolutely not angie. i really didn't like it at the pre-come to public price, the ipo price of 26. opened 45.10 so
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almost a 75% pop just on the first print so the valuation to me is way off the charts high. and maybe reminiscent of facebook where if you rush in and just buy it, it may not be the thing to do and it may take several quarters to even come back to break even. > >have your customers expressed interest? and what did you tell them? > >absolutely not. i think a lot of the fervor of the speculation has gone out of this market. certainly we've seen the market continue higher but the participation---the volumes are low and really not that big an interest in the ipo from my side. of course i tend to represent a little bit older, kind of stodgy money, value- oriented. i think some of the hot players will always gravitate toward that space. > >just not hip enough to buy that stock. > >exactly. > >let's move on to talk about the overall market. what do you think about current market conditions? > >i think the price action we really saw on wedenesday, kind of signified in my opinion, a short term market top here. we
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had the dow at all time highs. the s &p's not quite there. the nasdaq and the big momentum names---the tesla's of the world---the netflix, the green mountains, the amazon's kind of falling apart. and the transports which had led the way higher really got hit hard. i think a lot of divergences, the vix below 13, a lot of complacency. usually the combination of those 2 things combined with low volume spells trouble for the market going forward. > >there it is. tim biggam calling a top to this market. you have yourself a terrific weekend. thank you tim. > >you bet. thank you angie. coming up on monday...reaping rewards. ways traders hope to make money on the latest crop report. and, the ceo of edible arrangements will be here with the skinny on building a health- conscious company. from all of us at first business, happy friday!
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