what will rock the world of tech in 2013? tech stocks that could become market movers from this year's consumer electronics show. in today's cover story, the deals big banks are putting into motion to move past the financial crisis. a google exec goes abroad. why the trip is raising eyebrows from the government. plus, the roadmap to gas prices. what to expect at the pump this year. and, hooch for your pooch: find out who has created the beer for dogs. first business starts now. you're watching first business: financial news, analysis, and today's investment ideas. good morning.it's tuesday, january 8th. i'm angela miles. in today's first look: earnings season 2013 kicks off today with alcoa the first dow

component to report in after the close. yesterday, stocks pulled back from near 5-year highs. gold fell as oil edged up. fear falling? the volatility index, better known as the vix, closed at 13 for the second session, indicating traders are either just not that into the market or don't see any major sell-offs in the near future. federal officials are checking smoke that was coming from a boeing 787 jet on the ground in boston. and the mighty mississippippi is flowing again with barges. larry levin of trading advantage is among the many traders awaiting earnings coming from alcoa after the close. good morning to you, and what is your expectation? > > i definitely think that we are going to see the market at least move higher on the earnings that we get out as we go into later today. i think traders really- i don't want to say have got inside information, but have got a pretty good idea. yesterday we

kind of saw a little bit of a sell-off in the morning and then really kind of recovered. so i think traders really kind of got in front of that feeling that the earnings season is going to get off to a good start. > i have been really surprised about how dry the options paper has been on alcoa going into the earnings tonight. that has been a big surprise. let's move on to the debt threat. a lot of lawmakers, of course, talking about the debt ceiling. does this threaten what's happening with the stock market? > > if it does, it threatens it for very short periods of time, and then we get buyers who come in and buy those breaks or those drops in the market. the fiscal cliff was a good indication of that. markets, while they took hits, those hits got bought very quickly, and i think you'll see the same thing happen now. > and slowly but surely the euro is heading higher. why is that larry? > > we saw at the euro drop so much, and obviously europe was dealing with so many problems, things don't - markets expecially - don't move forever, and i think this is just a recovery. had a whole lot of people short, and some of those shorts are starting to pop

out. and the higher the market goes, the more shorts will come out of it. > good to have you on the show. that's larry levin of trading advantage. > > thank you. in our cover story, bank deals here and across the pond. bank of america is among ten banks that reached agreements with federal regulators over foreclosure abuses. the settlement includes billions of cash payments to borrowers who suffered foreclosures or are in danger of losing their homes. the settlement resolves the so- called robo-signing scandal - the hasty process by which banks approved foreclosures. banks involved include bank of america, citigroup, wells fargo, jp morgan chase and six others. "bank of america, or really countrywide, was not being as careful as they should have been in looking at the documents." now, $8.5 billion will be distributed to 3.8 million borrowers who lost their homes or are at risk of it through this flawed practice. "the goal is that it makes banks think before they relax their lending standards too much." in a seprate settlement, bank of america agreed to pay more than $10 billion to fannie mae for selling problem mortgages that turned toxic in the housing crisis - most of the loans made though b of a's countrywide financial unit. "they're compensating fannie

for the trashy mortgages countrywide sold them. the question is, 'what settlement will others demand.?'" a third banking issue came from global regulators known as the basel committee on banking supervision. it eased liquidity requirments that enable banks to weather a financial crisis. "i hope this will help give some banks the breathing space they need, but we have to be sure that the banking system and economies don't collapse." some analysts say restrictions were relaxed more than expected, and in so doing, may boost bank profits. shares of

barclays, hsbc, deutsche bank, and others rallied on the news. spending worldwide on gadgets is projected to hit $1.1 trillion this year, and tech companies from around the global are giving us a glimpse of what we will be buying at this year's consumer electronics show, which opens today and runs through friday. among the devices already generating buzz at the show, a "smart fork" that measures how fast you eat. it's meant to slow down dieters. we will get a trader's view of hot tech stocks connected to ces later in the show. in what is being called a controversial trip, google's executive chairman, eric schmidt, arrives in north korea. schmidt arrived yesterday along with former new mexico governor bill richardson. they say the trip is a private humanitarian mission, but it is raising the ire of the u.s. state department, which labels it "unhelpful." richardson has traveled to north korea several times and is reportedly working

to free an imprisoned american citizen, but schmidt's role in the delegation and on the trip has not been made clear. one tech analyst questioned the role of the internet in north korea as a possible reason for the trip. "north korea is one of the most constrained countries when it comes to internet connectivity in the world, and clearly a country that could use some opening up, but certainly has resisted any movement on those lines so far." that was tech analyst rob enderle, who says schmidt has habored political ambitions for quite some time. lawmakers are kicking around new ways to tax motorists. as americans drive less and buy a record number of fuel-efficient vehicles, it's leaving states with fewer dollars from gas taxes to repair roads, bridges and highways. in washington state, lawmakers are talking about a road-usage charge, or possibly having electric car owners pay $100 per year. in wyoming, there's a proposed 10- cent-per-gallon fuel tax being considered. in oregon, high- mileage vehicles could be taxed starting in 2015. nationwide, lawmakers are considering a vehicle miles travel tax, known

as vmt, that taxes the miles you drive. bill ackman, the hedge fund manager who is targeting herbalife, calling it a pyramid scheme, says he is prepared to do whatever it takes, and spend whatever it costs, to expose the truth about the company. herbalife, a nutrition and weight managment company, has been issuing heated denials of the charges and is now set to present its full case this thursday at an investors and analysts' conference. senior managment will be present at the new york meeting. lawmakers in d.c. have approved $9 billion of aid for areas devatstated by hurricane sandy, with a potential $51 billion more on the way. ed gjertsen, vp of mack investment securities, joins us with this morning with the economic punch, and how it could help stocks. good morning. and hopefully, some good will come from this tragedy. what do you anticipate?

> > angie, i really don't see a lot coming out of this. it's $9 billion. it's basically going to be going more into the infrastructure of just paying the fema bills for the flood insurance. if that additional $50 billion comes, there's a lot of pork in that. i don't see that being a direct, relative basis for stock. so i don't see a big lift from that money going into the east coast. > would you buy any remodeling stocks, such as home depot? > > i know think so. the money is going to be spread around in so many different places, i think there might be a short- term benefit from that, but i think overall economic growth will have a lot more powerful impact with stocks than another congressional outlet. > ed, thank you for your thoughts today. thanks angie. it's no wonder that hostess' iconic brands are attracting buyers. the latest report is that flowers foods and grupo bimbo are emerging as the two top bidders for hostess' bread and snack cake lines. hostess is in the process of selling off assets after announcing its liquidation last november. the

company may reveal specifics about these deals as early as next week. a new year comes with new fare hikes from united airlines. but not so fast. the carrier tried to lead the charge of higher fares, raising the cost of a round trip flight by $4 to $10, but was thwarted when southwest airlines refused to follow suit. delta airlines matched the hike, but because southwest has more domestic flights than any other air carrier, its refusal to match the increase meant it didn't stick. magic bracelets will soon enter the magic kingdom. disney is changing the way tourists experience walt disney world. starting in the spring, disney world visitors will be given a "magic band." the bracelet holds consumer information including credit card numbers. the system tracks consumer spending in order to market the park's features directly to visitors. it's estimated disney will spend up to a billion dollars on the system. careercast.com is out with the list of the least stressful jobs. college professor tops the list, followed by seamstress, medical records

technician, jeweler, medical lab tech, audiologist, dietitian, hairstylist, librarian and drill press operator. a microbrewery in oregon is offering up a domestic brew for our domesticated friends. boneyard beer in oregon has created dawg grog, a beer designed for dogs. it consists of vegetable broth, water and grains. the beer will cost you around $36 for a 6-pack. no need to worry about any buzzed barks though - the brew is non- alcoholic. still to come, could the debate on the debt ceiling in washington inflict pain at the pump? that's later on. but first, why it could be time to ditch the plastic in your life. the lowdown on the high cost of credit cards is next with bill moller.

it is the new year, when americans make resolutions to save money and cut expenses. here's something you can do - in fact, should do right now: dump that high-interest-rate, high-fee credit card you're using, and find something better. bill hardekopf runs lowcards.com and is a respected 3rd party source of credit card information. bill, just how many different cards are there out there? > > bill, there are over 1000 credit cards in the united states, so there are plenty to

choose from, and it can be very overwhelming to consumers. > but it is worth the effort, because you could save, apparently, quite a lot of money. how much? > > you sure can. we've had people e-mail us or call us and say that when they changed from one credit card to another, they saved over $500 over the course of a year. so it is certainly worth your effort to pick a good credit card for your needs. > bill, what are the basics? when we are shopping for a new credit card, what is the process? > > the first thing is to decide what kind of consumer you are. if you are going to carry a balance each and every month, then you need to get the lowest credit-card possible. if on the other hand you are going to pay that balance off on time, in full, each month, then you should get a rewards credit card, because a credit card can actually make you money by using it. > on your site, lowcards.com, you basically name names. which have the lowest interest rates right now? > > some of the best, lowest interest rates are the simmons platinum visa - that can get you an apr of 7.25%; the capitol one platinum prestige is relatively low at 10.9%. but consumers should also look at their local credit unions. local

credit unions and smaller banks can get them en interest rate of possibly 5 or 6% depending on the bank that you choose. > bill, a lot of people are concerned about the debt and moving it from one card to another. but there are cards that charge nothing to transfer that debt. is that right? > > it is called a balance transfer card. a lot of times you might get hit with a balance transfer fee if you move from one card to another. but the slate card from chase offers you a 15-month 0% apr, and no balance transfer fee. those fees usually run 3 or 4%. so, to get to transfer a balance for no cost is quite a good savings. > and briefly, bill, you talked about go for cards that have cash rewards if you zero out your balance every month. which are the best cards there? > > probably one of the best cards out there is an american express card called a blue cash preferred. you can get 6% back on your grocery bill, 3% back on what you pay at gas stations and department stores, and 1% on everything else. there is a $75 annual fee, but you can more than make that up with some

of those transactions, and the savings that you can get. > bill hardekopf with lowcards.com, thanks so much. > > thank you bill. happy new year to you. thank you bill. still ahead: what could drive down gas prices this year? the surprises at the pump, right after the break.

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gas prices hit a record low of $3.22 per gallon on average nationwide. and that was just about where it was predicted by phil flynn of price futures group, and a fox business news contributor. since you did such a great job last year, we are bringing you back this year. how low will we go this year phil? > > i am thinking we are going to have a much better year than last year. if you look at the average price last year, at times you were at a record high. we couldn't get a break on gasoline prices. if we didn't have a refinery blowing up or a fire, we had a hurricane or some weather. i am going to throw some salt over my shoulder and hope that we don't have a repeat of the disaster of last year, and i am sure that the average price should be a lot lower next year, this coming year, that we're in right now, than it was last year. so i have got some good news for you. > below $3 then i take it. > > i think we will see in many parts of the country below $3 a gallon. of course, when you talk about the national average, you always have these cities like chicago and las angeles messing up the national average.

we have these specific rules for these big cities on the cleaner-burning gasoline, and we create these shortages every year that keep the national average high. the good news is that u.s. oil production should continue to rise. we are getting the oil out of cushing, oklahoma, which means that product places should be lower. we are going to be able to get cheaper crude to the refineries, and when the refiners can refine cheaper crude, guess what, they can sell that gasoline to you and me for a lower-price. > what about the debt threat? do you see this squabbling over the debt ceiling playing into gas prices? > > oh my gosh, you bet you can. the biggest threat, i think, to rising gasoline prices for next year is the government for heaven's sake! these guys are talking about raising the national gas taxes. it seems

like here in washington they have never met a tax that they don't like. they are the first ones to complain when gasoline prices are going up, but they take more tax revenue from are gases, and now they want even more. so, you bet it can. it can go either way. and i will tell you another thing: if it seems like we are just going to raise taxes through the stratosphere, it is going to actually at some point maybe bring gasoline prices down, because if you tax too much, i think it could push us into a recession, and that would lower gasoline demand and bring prices down. but that's not the way you want to see gasoline prices go. we will keep our eyes on those lawmakers and that gas tax. thanks for being on the show today. that is phil flynn, fox business news contributor and price futures group trader. just ahead, how traders are hoping to profit on this year's consumer electronic show. chart talk is next.

in chart talk this morning, trader andrew keene, president of keeneonthemarket.com, joins us to talk about the consumer electronics show. good to have you on the show. > > thanks for having me on. > now you are watching for two reasons: you want to see what gadgets are coming out, and you want to know what stocks to buy. so what stock are you watching here andrew? > > i actually just go to see what gadgets are coming out. i love gadgets. i love technology. the one stock i am looking at is nuance communications. n-u-a-n. the stock is currently trading $23. it looks pretty strong. it is trading above all the moving averages: the 50-, the 100-, the 150-, and the 200-day moving average. i am looking to buy it at $23 with a stop under $21.50.it seems like there should be some support there. i think it can get up to $25.50. what do they do? they do voice communication. they're in the iphone. they do siris for the iphone. but they also do it for cars, and the living room. seven of the 10 biggest carmakers are going to be at the ces, which is a little bit surprising. but we have seen an uptick in ford and gm sales. if nuance can get a deal with ford

or gm, that would be huge for their company. > absolutely. lexus is out, for instance, with its self-driving car. a lot of those auto-makers are going to self-driving cars, so that takes a lot of gadgetry. so, you see a big boost from this show happening now for nuance, or do you see it coming down the line? is it a buy and a hold, or just kind of a trade here for you? > > it is a trade for me. i look at the chart. it looks strong forward. a set-up to the long side. i have a nice, tight stop about $1.50 lower. i am going to target at least $2.50 to the upside, so that's a good risk-verses-rewards set-up from my point of view. are they going to get a deal? probably not. but they did just partner with intel, and they are going to be in the ultrabooks as well. so it looks like this company is hitting on all the right cylinders. apple has been its earnings coming out. apple looks a little bit weak. but with nuance looking strong, apple looking weak, that is even more positive, because it shows that nuance isn't just an apple company, it is a company for other companies as well. with all the voice integration in the future, i think this is a great trade. i am looking to put

this on. i do not have it on just yet. but i am going to have a tight stop at $21.50, because this stock is volitile. it has a pretty high beta. > typically, how does apple do during the consumer electronics show? because they don't really show products. > > they are not there. they have their own pony show- > dog and pony show. > > so everybody goes. they used to be part of ces, actually- > they did it > > but then they broke off. they said, "we're apple, we don't have to be there anymore." so it's all the gadgets besides apple. apple has their own show. so the stock around ces, i haven't done any back-testing to see how the stock does around ces. i would guess it's pretty much a crapshoot if the stock goes up or down. their stock has been very weak this year. it's already been 6% year-to-date. but when they come out with their stuff, it should be iphone 6 in 2013 and the mac tv. > good to have you on the show. that is andrew keene, president of keeneonthemarket.com. > > thank you. that's it for now. coming up tomorrow, we will have more gadgets to show you from the consumer electronics show. plus, a look at why you might want to consider putting your home on the market now rather than waiting for spring. from all of us at first business, thank you for watching, and have a great tuesday!