to start helping students in your community, visit boostup.org. the dow inches closer to 14,000. is it time to celebrate? in today's cover story, lawmakers say now is the time for historic immigration reform. say goodbye to the sticker price. how to talk down the cost of your car. deals on your tax returns could be too good to be true. and, luck of the zuck. a look at how america's youngest billionaire built the facebook empire. first business starts now. you're watching first business: financial news, analysis, and today's investment ideas. good morning. it's wednesday, january 30th. i'm angel miles. in today's first look: the blue chips turn green, very green. yesterday, the dow finished the session up 72 points to 13,954. the blue

chips are now back to levels we have not seen since the financial crisis in 2007, when the dow hit an all-time high of 14,164. amazon amazes despite a drop in profits. last night the e- tailer reported strong holiday sales of its kindle e-readers and a boost in operating incomes. the federal reserve makes an announcement on rates today around 2:15 eastern, wrapping up a two-day meeting. and the senate has confirmed john kerry as the next secretary of state. joe cusick of optionsxpress join us now. joe, there is a lot to talk about this morning, including the dow closing in on 14,000. what is your take? > > you know what, it's a level that everyone is watching right now. we are about 40 or 50 points away. it is a psychological level as well as a momentum level. the bulls are in control right now, and, hey, the dow has exxon in it, and that is the largest company in the world. > consumer confidence, though,

took a hit. people are saying it is because of the lower amount of the paychecks because of the tax hit. what do you think? > > you know what, we are going to keep an eye on that. again, while confidence is at those lows, we have had pretty solid data other than the confidence never. we are going to watch the adp number that is coming out this morning, and we are also going to watch that fed statement. specifically we are going to keep an eye on that this afternoon, and we are going to watch the fed chief speak. > let's talk about a couple of big stocks: amazon had a major move after the close last night, and research in motion coming out with its new blackberry 10. starting with amazon, would you be a buyer of this stock? > > i am not going to comment whether i would be a buyer or a seller, but it is a perfect example of while they missed everywhere except for operating income, they plow the cash back into the business, they have bazos at the helm, and the bottom line is that the stock was pricing in a potential move of $20. that's what the options marketplace was telling us into the event last night, and we saw that after hours. again, i think we are going to watch a classic squeeze going into the open today. some of those shorts came in and were doubting what amazon was doing, and it is going to be an interesting

story. > and what about research in motion? > > research in motion, again, has a priced-in going into their new release of the new blackberry. i no longer use a blackberry, i am actually moving to apple, believe it or not. but the new blackberry is coming out, and if you look at the options marketplace angie, they are pricing in a potential of roughly around an $8 move going into the release of this product, so there is a lot of vol pumped into this particular underline right now. > great to have your comments today. that is joe cusick of optionsxpress. thanks joe. > > thank you. president obama and a bipartisan group of senators say the time is right to reform immigration. in our cover story, how the first proposals on the table could fix a system many say is not only broken but ignored since the recession. 27-year-old erendira rendon, brought here when she was six months old, agrees with president obama and bipartisan members of the senate that immigration reform is vital. "my entire family is undocumented. there is no other way. there are no lines for us." immigrants from countries other

than mexico cite incredible waiting lists. lawrence benito's family is from the phillipines. "it took my mom 24 years to be reunited with her siblings. that's a system that doesn't work." the wait affects everyone, including billy lawless, who's opened several successful restaurants in the u.s. "i only got a green card after 15 years, two years ago after investing in this country." "for the first time in many years, republicans and democrats seem ready to tackle this problem together." despite a steep decline in immigration from mexico since 2004, proposed reforms include stronger border security, helping 11 million undocumented workers gain citizenship and increasing visas and green cards for highly-skilled workers, particularly those with skills in math, science, technology and engineering. not exactly the "wretched refuse of your teeming shore" as found on the statue of liberty, which welcomed generations of immigrants to new york. tech

companys such as microsoft applaud the immigration plan. but not all - intel says the proposals help new graduates but do not help existing green card holders. the senate is expected to vote later this week on the debt ceiling. the bill on the table from the house calls for a delay until may 19th on the debt deadline, which allows the treasury to continue to sell bonds to pay for bills the nation owes on money already spent. senators are also considering ways to tackle the country's budget. automatic cuts

to defense and social programs could go into effect march 1st if there is no deal. as the nation's biggest biotech firms continue to push against generic drugs, the companies are taking the fight to a new arena - state legislatures. the new york times reports that drug companies are lobbying hard for new laws that would limit a pharmacist's abilitiy to fill prescriptions with generic versions of the most profitable drugs. bills have been introduced in 8 states. generic drug companies, as well as insurers, are taking steps to try and curtail the bills. federal regulators crack down on an alleged fake flu remedy. in the midst of one of the worst flu seasons in recent memory, a florida company has been selling an untested inhaler. both the federal trade commission and the fda sent a warning letter to the flu and cold defense company about its germ bullet inhaler, saying the company's claims are misleading and its effectiveness is not proven. consumers are hearing big promises about their tax returns this year. the better business bureau warns, just because the person preparing

your taxes says you will get a large chunk of money back from the government doesn't mean it will happen. "...problems we've seen this year as well as last year is the over-promising. they promise they can get you a better return than someone else down the street or the person you've done business with last year. nobody can promise you a better refund until they actually see your return to make certain that you comply." the bbb's steve bernas recommends checking the better business bureau website for legit tax prep companies. also, the watchdog group warns that oftentimes a quick refund from the company tends to come with hidden fees attached. a new report says more corporations are shipping money overseas to avoid paying taxes in the u.s. the congressional research service finds companies are increasingly stuffing money into common tax havens including bermuda, ireland, luxembourg, the netherlands and switzerland. the most recent data finds that in 2008, companies reported 43% of profits were housed in those countries. the analysis says it's been an upward trend since 1999, as companies aim to avoid high corporate tax rates.

the sec uncovered a trading scandal in sugar land, texas. a day trader there is accused of cheating investors out of more than $6 million. the trader, identified as firas hamdan, allegedly told investors he would pool their investments with his own and make money through high-frequency trading. the sec claims he showed fake statements that hid his massive trading losses, then gave investors phony excuses that their money was tied up in the 'greek debt crisis and mf global bankrutcy.' the assumption that a better driving record means lower insurance rates just isn't true. according to a new report from the consumer federation of america, people with less education and lower incomes were more likely to pay higher rates for insurance, even if they hadn't had any auto accidents. insurance providers say demographic information is used to determine premiums, but that does not imply discrimination.

meanwhile, in france, 15,000 employees at the central bank go on strike. workers are upset by a re-structuring that is expected to cause the loss of 2500 jobs by 2020. the bank employs 13,000 people and says automation can and should do a lot of the work currently done by its employees. since the introduction of the euro in 2002, the bank has cut about 25% of its work force. car sales in china could be facing a jam. research from ubs finds that growing traffic problems in cities such as beijing and shanghi may soon spur government action. the bank expects the chinese government to soon place restrictions on car ownership, which could cause sales to fall in the world's largest auto market. a judge is okaying the punishment for bp's historic oil spill. the oil giant will pay a record $4 billion in criminal penalties, plus plead guitly to manslaughter for its role in the 2010 oil disaster in the gulf. 11 workers were killed in the explosion onboard

the drilling rig deep water horizon and more than 200 million gallons of oil gushed into the ocean. bp will be fined for lying to congress about the spill's size. the oil company is expected to shell out $7.8 billion to residents and businesses along the gulf goast. among stocks making major moves off of earnings news, ford shares stalled out yesterday, falling 5.8%. the car maker rattled investors by saying it will lose $2 billion this year from sluggish business in europe. shares of vmware plunged $20 in panic selling. the software company's revenues fell short and 900 people will lose their jobs as it restructures. pfizer was a blue chip winner. the stock jumped 3% as the drug maker's profits quadrupled, despite competition from generic forms of lipitor. the company also plans to sell its nutrition to nestle for $4.8 billion.

if you're a first-class flyer you might want to consider a step up to a private jet. startup firm black jet is borrowing the big airline adage that an empty seat is a money loser. so, it charters private jets that would otherwise remain empty and sells individual seats. what's more, you can book your seat through a smartphone app. still to come, test your negotiation skills behind the wheel. how to talk down the price of a new car. that's later. but first, ahead of facebook's earnings, we'll see what it takes to be a zuckerberg in the world of business. that's next with bill moller.

he has had some missteps, but you can't deny mark zuckerberg is a sharp business person. so's the woman who has written a fascinating book called "think like zuck: the five business secrets of facebook's improbably brilliant ceo mark zuckerberg." ekaterina walter is "social innovator" at intel. she writes for mashable, fast company and huffington post. how did this kid who was so brilliant in college learn to become a ceo and run this huge company? > > just swinging it, i guess.

he was pretty young. so let's face it, he didn't have ceo experience. but i think he was sharp, in knowing where he wanted to go and learning along the way. and not only learning how to become a ceo, but acquiring partners like sheryl sandberg and others- > and he hung out with people who were successful and learned from them. > > steve jobs, bill gates. his friends, when he first said, "i want to go meet bill gates," said, "are you crazy?" he comes back a couple months later, said, "well, i met him." "who?" "bill gates." i think he was really smart in bringing in a board of advisers that is sharp about business, something that he doesn't have, a knowledge he doesn't have, and then bringing in additional partners and employees that allowed him to see the bigger picture. > what is it that's so brilliant about him and these five secrets, and are they really secrets? > > i think a lot of it is very common sense. however, that said, you don't see a lot of businesses still decades later after we talk about passion and purpose and people and creating

excellent product and partnerships, you still don't see that many businesses really executing those very well, so that's why we chose to call them secrets. > they a lot of times pay lip service, and you see them in mission statements, but you are saying that they are not really executing that. so is that something that he is doing deliberately, or is it just by his nature that he is that way? > > i think it is both. i think by nature he is a visionary. he knows where he wants to take his company and his product. but, by additional learning from people around him and bringing in the right partners like sheryl sandberg, i think he is starting to sort of shape a picture of success to others and to himself. > but is he any different from the leaders of zappos and google and apple? are they all doing the same kind of thing, or does he stand apart from the other great successes? > > he does stand apart, in the sense that, being so young, he is very strong in knowing where he wants to go. he isn't as susceptible as some of the

leaders to kind of be pressured internally and externally. and i think he is very, very long- term focused. like jeff bezos of amazon. a lot of people criticize him for not even sometimes knowing his own business model, but, look at the amazon stock. recently it was all-time high in years. so i think sometimes we look at a company verses the vision of the leader. > long-term planning. > > that's right, long strategy. > ekaterina walter. thank you so much. > > thank you bill. thank you bill. still ahead, what you need to know before getting in the driver's seat. tips for the test drive are coming to you, after this. ♪

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it always pays to get behind the wheel of a car you want to buy before sitting down to negotate the deal. brian moody of autotrader.com joins us this morning with the insider's look at test drives. good to have you here. > > good morning. how are you? > i am doing really well. you have named the new volkswagen beetle, dodge dart, cadillac ats, and nissan pathfinder as cars that you think are worth a test drive. what do you suggest for anyone taking a test drive with any other car? > > what is important to remember is that if you are buying a car, there is no hurry. take your time. take a long test drive. the salesperson is going to want you to get in and get out quick, because they want to move on with their day and sell more cars. you should

spend more time behind the wheel so you feel comfortable. also, what we like to do is bring our families, bring our stuff, our kids, our booster seats, our strollers. make sure all of that fits in the car so that the car fits your lifestyle. that way when you get home you're not bummed out that you got the wrong car. > what do you and other people at autotrader do when shopping for a car? > > what matters most is do your research ahead of time. we advise people, don't just show up, because when you just show up, you are really uninformed; and of course, their job is to sell you something. it might not be what you want. do your research first: find out online what cars work for you. do you need three rows of seats or not? eliminate the cars that don't fit your needs. then narrow it down by brand or by make or by model, and once you have a small group, that is when you go down there and say, "i want to test drive this new ford or honda" or whatever it is. > what are some tips on negotiation? > > you should make sure that the car is priced within your budget. and once you do that,

and find the cars that you can afford, then you can start negotiating. > is it worth it to know the kelley blue book price? > > it is good to use a source like kelley blue book, because when you look up that value, it gives you a good baseline. it gives you an idea about what you should be paying for this car, or in some cases, what your car is worth if you want to sell it. > should you use the invoice price as your guide in negotiations? > > the invoice price sometimes can be a good starting place. but you have to remember, with cars, it is supply and demand. so, for example, when the new corvette comes out, you are not going to be able to pay less than what the sticker price is, and you may pay more, because there is going to be high demand. for other cars, they may not be in high demand, you may be able to pay less than the sticker price. > thanks brian. brian moody is with autotrader.com. > > thank you. up next, sky-high stocks. the real reason behind the sudden rise in netflix and greenmountain is coming up.

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tim biggam of moneyblock joins us now for a look at some stocks that have had a fast rise. good morning to you. > > good morning angie. > let's preface this by saying some of the stocks we are about to talk about are stocks that are victims of the short squeeze - people who have been shorting the stock, now they are forced to buy it quickly. let's start with netflix. is that one of the stocks that was heavily shorted? > > absolutely. probably, if you look at the price action post-earnings last week, almost, in my opinion, the poster child of not only a decent earnings number, but also a big, big short squeeze. the shorts had tripled since the previous quarter, so, this was a stock that beat decently, but certainly not enough to justify a 70% two-day rally. you saw a lot of shorts cover there where they just kind of threw in the towel. so going forward here, be a little cautious. again, short squeezes a lot of times will signal a short-term top in stocks.

> right. that stock is up about $100 just in the past several sessions. that is amazing. green mountain is another big mover. > > absolutely. same kind of story here. not to the same extent, but this stock has been on a bull tear as well. again, this was one that was heavily shorted. we saw some negative press on the accounting when the stock was down in the mid- $22s. now we have pretty much doubled from that level. again, the short interest has come in significantly over the past week-and-a-half or so, so another name that, going forward, that short squeeze where you get kind of a blow-off top, that combination has, in the past, been a pretty good indicator of maybe a short-term top in the stock. so again, caution on these red-hot stocks that were heavily shorted. a lot of times, that's the time to avoid, not get in. > good to have you on the show. that is trader tim biggam of moneyblock. that's a wrap for now. coming up in movies and money, our critic will be here with his list of must-see movies from sundance. from all of us at first business, have a great wednesday.