calls from washington to investigate the irs asap. in today's cover story, we're "checking in" on why hotels stays are becoming pricey. plus, following the tragedy in bangladesh, retailers are facing pressure to take action. and, spend and smile. does money lead to happiness? first business starts now. you're watching first business: financial news, analysis, and today's investment ideas. good morning. it's tuesday, may 14th. i'm angela miles. in today's first look: stocks on edge. the dow fell, the nasdaq inched up a couple points, and the s&p just eeked out a record closing as traders became concerned about when the fed will pull the plug on its bond-buying program that has been stimulating stocks. gold

fell $8 and oil dropped abour a dollar. transocean chairman michael talbert is resigning under pressure. shareholder activist carl ichan reporteldy wants talbert out over investment decisions. and, a senate committee will talk about your cable bill today. prices for cable have doubled over the past several years. phillip streibel of rjo futures joins us on the show this morning, and i'd love to run through a number of headline stories with you and see if they are actual market-movers, starting with fed chatter. is that moving the market at all out there? - yeah, once we saw on that story break yesterday, there was a lot of discussion about it. this is something we've had on our plates, and we are going to be talking about for the next few months. i don't think the fed will end up slowing down

any of the rate of qe until after the summer, at least, to get through that traditionally weaker economic data. plus, you're going to have a changeover with the fed president. i don't think they want to leave the new fed president with a major policy shift already mid-place. i think they would rather have the new fed president come in, take the reins, start to decide what to do, and then also, there was another objective of the 6.5% - was it met on the unemployment? - there are reports that the obama administration would like to expand our exporting of natural gas. is that a market- mover? - yeah, because natural gas, the u.s. is a major producer of it, and i think that a lot of countries out there still need this natural gas, whether they are exporting the liquid natural gas or the traditional natural gas. i think once we start to do that, you are going to see that global demand start to pick up, then you'll see natural gas prices start to turn up through that $4.55, $6 level, and get to places we haven't been in years. - there's the other report that

bloomberg journalists have been snooping - allegedly - on what's happening with some trading firms such as goldman sachs. is that a big deal to traders? - not specifically to traders, because of the fact that the bloomberg terminals aren't used by that many people - i think they said 315,000 subscribers. but it's really interesting how people can utilize that kind of data to maybe come up with certain assumptions based upon what's going on with the transparency of it. so i think that it does question more internet security and more back-office procedures than anything. - good to have you on the show. thank you phillip. - thank you. in the wake of news that the irs targeted conservative groups for audits, congressional republicans call for hearings. representative dave camp, the republican chairman of the house ways and means committee, says he will hold hearings. majority leader eric cantor vowed to "get to the bottom of it." additionally, the 'tea party patriots' is considering legal action to possibly recoup monies spent for audits. president obama, speaking at yesterday's news conference,

called the targeting "outrageous." "there's no place for it, and they have to be held fully accountable, because the irs as a fully independent agency requires absolute integrity, and people have to have confidence that they're applying it in a non-partisan way." in 2007, the irs is said to have audited greenpece at the request of exxon mobile. on the horizon for the irs, a shut-down of all public operations for five days between may 24 and august 30. the agency is blaming sequestration budget cuts for that. controversy over the keystone pipeline is flowing into silcon valley. an online petition by credo calls for high-profile tech leaders of yahoo, linkedin, ebay and facebook to resign from fwd.us. fwd was founded by mark zuckerberg and others who banded together over immigration reform. the group reportedly backed an ad promoting the keystone xl pipeline and drilling in the arctic. the ceos of tesla and yammer recently dropped out of

fwd.us on revealations of the keystone ad. greek civil servants on strike - again. today's 24-hour strike is a reaction to the government's use of emergency powers to keep protesting teachers on the job. there was a concern the teachers would disturb upcoming university entrance exams. this is the third time this year the government has taken the extreme measure to end a labor dispute. it's a step usually reserved for times of national crisis. more retailers are joining an initiative to improve safety conditions in bangladesh.

following the tragic collapse of a garment factory last month, brands including tommy hilfiger, h&m, and the owner of zara have agreed to fund safety and building improvements. the bangledashi government has also proposed the right to form labor unions. judy gearhart of the international labor rights forum says it will be especially influential if more american brands join the initiative. "as u.s. consumers are looking at this issue, i think it's far from solved. i think there is a long road ahead, and it would be a shame for something as significant as this to go forward with only one u.s. brand, so we're hoping that people will continue to push the various brands forward." the pressure is mounting for major u.s names like gap and walmart to make changes. the search for victims of the tragedy has officialy ended. more than 1,100 lives were lost in the factory collapse. a startling report finds detroit is running out of cash, fast. according to bankruptcy attorney kevin orr, who was appointed to handle the city's financial crisis, detroit has

exhausted its ability to borrow. and, the city must defer payments on current obligations to avoid running out of cash. some possible solutions include healthcare and pension changes, and reductions to pay rates. a supreme court decision about a small seed has big implications for the agricultural industry. the court ruled unanimously in monsanto's favor, saying that farmers can not use genetically altered seeds, patented by the biotech company, without paying monsanto a fee. tesla stock continues to captivate wall street. the high-end electric car maker's per share price has doubled, jumping from $30 to $60 just within the past six months. that's before the stock hit an all-time high of $81 after announcing its first profitable quarter last week. adding to its momentum - sales. in the first quarter tesla outsold bmw, audi and mercedes.

virgin america is closer to launching an ipo as it attempts to fly toward a profit. virgin america has yet to make money since it took off in 2007. the airline recently lost $145 million, but is reported to be re-working the debt it owes to sir richard branson's virgin group and other lenders. the ceo of virgina america believes the airline will become profitable later this year and put its stock on the market as early as next year. another sign of economic recovery - hotel prices are nudging higher. as our cover story explains, some say it reflects more demand as americans gain confidence in their work situation and their ability to take that vacaction they've put off since the recession. americans are expected to travel more this summer than any time in the last four years. "during the recession, we pulled back. we really didn't travel much." but now, business is... a little bit better. "nothing like it was 7-8 years ago, but about 5% better. so

i'm going to take that 5% better and spend it on a trip. the hotel industry reflects that. pkf hospitality research predicts room rates will increase 5% this year to $111.40 a night. for the hotels, those higher rates will add up to a 6.1% increase in revenue from each room - rates that are expected to climb even higher next year. in short - better times if you're in hospitality. "we have seen that. we're seeing hotels up, and those discounts that they used to provide for last-minute booking, those discounts aren't happening anymore." - where do you want to go? "montana. i've heard a lot about their state parks." "probably florida. it's warm." "i think overall, people are better off than they were, but they are saving more than before the recession, that's for sure." overseas, round trip airfares to europe are in the $1500 range. travel website orbitz says u.s. flights to london are

6% higher this summer. flights to barcelona are 12% higher. but flights to athens and oslo are 4% cheaper. and people are booking well in advance - in some cases, booking flights for the holidays at year's end. "consumers were not doing that two years ago. they were not that confident." as for lodging, despite 8,000 additonal hotel rooms built for the summer olympics, london hotel rooms average $264 a night. but that's still cheaper than the average for hotel rooms in paris. retail sales in april made a rebound from march - up a slight .1%, but that still beats the street's expectation, which was a .3% decline. later this week will be more hints about the health of the nation's retailers when macy's, wal-mart, nordstrom and beleagured jc penny all report earnings. walgreen's is extending its

pharmacy deal with cvs. under a multi-year contract, walgreen's will continue its agreement to fill prescriptions for cvs caremark. last year, walgreen's lost customers when it stopped doing business with express scripts. amazon's "virtual" money on the market. the e-tailer rolled out gold cash called amazon coins. kindle fire owners will receive 500 free amazon coins, giving them $5 to spend on apps and games. consumers canrchase the coins at a discount by buying in bulk. microsoft and facebook are dropping similar virtual money. call it a "sugar rush." americans are consuming more sugar. sales are up 15% in the last three years. last year, it totaled $1.6 billion. meanwhile, artificial sweeteners such as splenda, sweet'n'low and equal have suffered a sales decline, while all-natural alternatives are on the upswing. still to come, what investors can learn from a recent move by

ivy league universities. that's later on. but first, a look at spending habits and your state of mind. why money may be a key component to your happiness. that's next.

danica patrick: for the millions living with copd, breathing becomes a real struggle. copd stands for chronic obstructive pulmonary disease, but you may have heard of it as chronic bronchitis or emphysema. over time, it makes it harder and harder to breathe, until you feel like you're breathing through a straw. copd is the 4th leading cause of death in the u.s. it kills one person every 4 minutes, and it took my grandmother. an estimated 24 million americans are affected, but as many as half of them don't even know it. it's a race against time to spread the word about this serious disease. if you're over 35 and have ever smoked, you could be at risk. the good news is,

there are steps you can take to improve your symptoms. i'm danica patrick, and i drive4copd. take action today to breathe better tomorrow. join the movement at drive4copd.com. take our screening questionnaire today, and talk to your doctor. the old saying says that money can't buy you happiness - or can it? dr. elizabeth dunn, author of "happy money: the science of smarter spending," joins us this morning. she's a psychology professor at the university of british columbia.

welcome to the show. happy to have you here. - thank you for having me. - so, can you buy happiness? - we think you can, if you spend it right. - so, the question is, how do you spend it right? - well, one of the easiest things you can do is to rethink some of your standard material purchases. it turns out that most material things don't provide us with a whole lot of happiness, and one of the best things we can do for our happiness is to buy experiences instead - things like trips, concerts, and special meals. - what are some places to put your money that may not bring you happiness, even though you may think they will bring you happiness? - one of the most surprising findings is that buying a home turns out not to provide all that much in the way of happiness. most people look to home ownership as a critical component of the american dream. but that dream turns out to be kind of hollow from the perspective of happiness

research. - is it the same thing with cars, i'm guessing? - cars are really interesting. people expect that they would be happier driving, say, a bmw than a ford escort, but if you look at people's happiness on a typical day, after they have just driven their car, it really doesn't matter how much their car cost. - what about companies? do companies put this to work? i know there are some happy places to work out there - this is one of them - but i know some of the tech companies really work hard to make it an inviting environment. - tech companies in particular have done a great job thinking about how to make their employees happier. one of the things that can really make a difference is to help employees use their time in happier ways. for example, rather than just paying people as much as a company possibly could, a better approach can be to think about providing employees with a reward of time. for example, companies like intel have been

giving their employes sabbats - an opportunity to take some time off and do something they really care about. employees report returning refreshed and being able to contribute more to the company afterward. - it's a pleasure to have you on the show this morning. thank you for your time. that is dr. elizabeth dunn. she's author of "happy money: the science of smarter spending." thank you. - thank you. still ahead, ivy-league schools are becoming "unhappy" with treasuries. is a major shift happening in the bond market? and, what it could mean for your portfolio. that's right after the break.

ivy-league universities are reducing positions in treasuries. lincoln ellis of strategic financial group joins us on the show this morning. good morning. and why are schools selling off on treasuries? that was once a strong core holding. - that's right. they have been a strong core holding, not only for ivy league institutions, but for institutional investors around the world, really for the past 30 years. and if you think about where we are in terms of that trade, we are probably at the latter stages of that game. so, a lot of these institutions are looking at that risk-reward and reducing that exposure and looking for opportunities elsewhere in the market. - you have been in the market for a long time now. what should they be doing? - i think that's probably the right way to go. if you have been in u.s. treasuries, either

10 years or long bonds, 30 years, you are probably looking at other parts of the market. investors have been looking at high-yield - and those yields have come down accordingly. people have been looking for yield alternatives, perhaps in the energy space, or in the utility complex. there are lots of places to find yield, and better risk/reward profiles than u.s. treasuries right here. - should investors be concerned about inflation at this point? - i'm not sure that inflation is the real indicator. part of it's policy-related. hilsenrath's article on friday in the wall street journal really preempting what fed policy might look like, so there are forward expectations about policy implications. but inflation, in terms of real price or wage-based inflation, is still probably some 12 to 24 months out. - and how long before we see any kind of grand rotation? - i think the grand rotation really therefore becomes a three- to five-year, a more cyclical move. the compression in yields, one done by the central banks, and two, the opportunities that have been pursued in the equity markets,

are both really at the very latter stages of their game. so, investors are going to have to deal with this market churn across all asset classes for the next 12 to 24 months, and then deal with the larger question of more secular rotations in the three to five-year time period. - thank you lincoln. lincoln ellis of strategic financial group. thank you. - you bet. still ahead, a check on financial stocks that could soon put investors in the money.

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matt shapiro, president of mws capital, joins us now for a financial focus. good morning to you. - good morning angie. - you are counting on some moves happening in the financial sector. so specifically, what banks would you watch? - i think all the banks are having a sneaky rally that people are really overlooking. the market has done so well, we have had phenom stocks like tesla, like green mountain coffee. so people are wondering, where do i put my money now? look at the big banks, the money-center banks, j.p. morgan, citigroup, the super regionals, u.s. bank corp. and the like, and i think all of these stocks could have a 10, 20% rally, and they're a good place to be right now, especially if you are a little concerned about buying a stock that has run too far. - how much validity do you give all the scuttlebutt about jamie

diamon as ceo and chairman of j.p. morgan chase? they are saying if he does not get both jobs, he is actually threatening to leave the company. people are saying maybe the stock drops 10% on that move. what do you do with this? - well, i don't think if he leaves that the company is going to erase $19 billion in value, and j.p. morgan is one of the strongest names in this sector, around $50, back to where it was before the financial crisis. so obviously, a gifted executive. obviously, if he left, he would be snapped up by another big bank. but, you know, i think they are going to be able, despite the boardroom hysterics right now, i think they are going to be able to put the right manager in place, and i do think, you know, his time has come, probably over the next year, to step aside. - what other names would be on your list: wells fargoat do you

think? - i do like wells fargo. obviously that's a top buffet pick. i like the custody banks, such as northern trust. i also like u.s. bancorp. all these financials are doing well, whether it's the credit-card companies - visa, american express, discover financial - it's a really good sector that hasn't run too far yet. - thank you, matt. have a good day. - you're welcome. that does it for now. coming up tomorrow, our tax man cometh. he will be here to answer tough questions, such as how to calculate what you owe uncle same after you sell a stock. from all of us at first business news, thank you for watching.

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