a swirl of activity is headed straight for the disaster relief business. in today's cover story, candy companies in cahoots: we'll check in on the business of sweet treats. and, mcdonald's faces backlash as activists raise corporate concerns. plus, why traders are taking a fashion tip from teens when it comes to the future of a controversial clothing company. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning. it's friday, may 24th. i'm angela miles. in today's first look: it's turning into a volatile trading week. yesterday started with a deep sell-off, then ended with modest losses

following postive news from the labor market and from hewlett- packard. sears is losing money. the retailer reported disappointing numbers after the bell, adding the company may soon be for sale. on a lighter note, pandora shares gained 10% after the close on strong sales and outlook. contract talks between caterpillar and union workers will continue next week. the two sides are showing signs of progress in negoations. and the man who became famous for helping free 3 kidnapped women in cleveland is being rewarded with mcdonald's hamburgers for life. he mentioned eating mcdonald's just before the rescue. todd horwitz of averagejoeoptions.com joins us on the show on this friday. happy friday to you. what do you anticipate the trade will look like today, considering we are now going into a long holiday weekend? - good morning angie. i expect the trade today to be quiet and listless. the only caveat to that is, if we are going to get

action, i think it will be to the downside. but i really expect the markets to be pretty neutral. most of the traders in new york will be already on their way to the hamptons, so i expect a very quiet day today. - are traders concerned about what's happening with china? - you know, there is always concern with something somewhere. in the meantime, the markets decided that they wanted to take a little bit of a breather. yesterday's action, we were down over 350 points total from wednesday's high to thursday's low, and muted action yesterday at the end of the day. i expect more of the same. could there be a major, fundamental news bomb come out and make us go lower? absolutely. but i don't look for that. i think the markets are pretty fairly priced where they are right now. - ralph lauren recently admitted it's being hurt by the weakness in the yen. is this going to be a reoccurring story? - i think it has a possibility. the currency race to devalue every country's dollars to

increase their gdp is eventually going to cause a problem, and will probably cause deflation when we get down to it. but right now, everybody thinks they are doing the right thing, and i don't agree, but that's what they think. - good to have you on the show. thanks a lot, todd. - thanks angie. have a great weekend. the wheels are in motion for healthcare reform in california. 13 major health insurers will compete for millions of californians expected to buy health coverage through the state's new health exchange. depending on location and income, premiums will range on average from a low of around $50 to as much as $500 a month. the exchanges will begin enrolling customers in october. coverage begins next january. google may be facing an investigation for allegedly curbing competition. bloomberg news reports the federal trade commission is questioning whether the tech giant is using its stronghold in the online advertising market to illegally stop competitors. according to the report, the ftc will examine if google is pushing companies to use more of its services beyond banner ads.

the head of mcdonald's is getting grilled over nutritional content. at a shareholder's meeting thursday, ceo don thompson said the company "doesn't sell junk food." he says he wants to add more fruits and vegetables to the menu and wants to attract "millenials" who are heading to chipotle and panera for healthier options. workers at mcdonald's and other fast food chains such as wendy's have also been protesting this week about pay raises and worker conditions. congress is taking a new approach to student loans. yesterday, the house approved a bill proposed by republicans that "pegs" new student loan interest rates to yields on the 10-year treasury note. president obama is threatening a veto, because interest rates would fluctuate over the life of the loan. under the bill, students with stafford loans would be charged interest based on the 10-year treasury, plus 2.5% or more, with a maximum rate of 10.5%. currently, the the fixed rate on students loans is 3.4%, and set to double july 1st unless congress approves an extension.

the controversial keystone pipeline bill now heads to the senate. the bill, which would bypass the president and accelerate construction of the oil pipeline, passed the house this week. the bill's sponor, congressman lee terry of nebraska, calls it "the most studied pipeline in the history of mankind." opponets contend the passage of the bill is rushed in order to avoid enviornmental review. the bill now heads to the senate, where it will likely face defeat. irs offices are closed today - and four more days this summer. federal cutbacks from the sequester are forcing four agencies to put workers on unpaid furlough. that means taxpayers waiting for refunds will have to wait to dial hotlines or speak to representatives. also included in the closings: the department of housing and urban

development, the environmental protection agency, and the white house office of management and budget. all offices will be closed june 15, july 5, july 22, and august 30. meanwhile, it's expected the senate will soon confirm penny pritzker as secretary of commerce. the heiress to the hyatt hotel chain testified in a senate hearing this week, where she told lawmakers her business experience will help her make the commerce deparment more efficient. "i think the first thing that's required is to put in place good leadership throughout the organization that shares the same approach, then work with that leadership to be able to identify ways that the commerce department, if i'm confirmed, can be as effective, but more efficient." when asked about her role at superior bank, which went under in 2001, pritzker told lawmakers she regretted the failure of the bank. lawmakers are expected to confirm the nomination next month. in moore, oklahoma, the cleanup process is hitting snag. a new system of thunderstorms hampered crews thursday. parts of the town were destroyed by a deadly tornado monday. early estimates show the twister caused $2 billion in damage. clean-up crews have converged on

the oklahoma town as people in the disaster relief business are bracing for what forecasters say could be an extremely active hurricane season. "the people who are the victims of these storms - their homes are gone, their belongings are gone, anything of sentimental value is gone, so you kind of have to do restoration disaster work and a bit of social work. it usually takes 3 to 4 days to have a system in place and moving properly." that was sam simon of servicemaster restoration. the mayor of moore, oklahoma, is expected to propose an ordinance requiring all new homes to have storm shelters. according to a report, less than 1% of homes in the area have basements. cruise lines are giving passengers more getaway guarantees. the industry is

creating a passenger's bill of rights. passengers are now entitled to refunds, back-up power, and medical care. new york democratic senator charles schumer pushed for the standards, which follow some high-profile mishaps. in february, a fire aboard carnival's triumph shut off power to the ship. passengers were adrift for days before being rescued. the new passenger's rights are effective immediately. a jury is siding with donald trump. a heated courtroom battle in chicago ended with donald trump claiming victory over a grandmother from evanston, illionis. jacqueline goldberg testified the real estate magnate tricked investors who bought condos at trump towers with the prospects of taking in revenue generated from business meetings in the building. goldberg was seeking $6 million in damages. in our cover story, more than 600 candy and snack-makers are cutting deals to bring their products to store shelves later this year. and while sales are up, what's selling is small. nibbles, minis, bites - if it's

small, it will sell. that trend continues throughout the national confectioners association annual trade show. "consumers like to have small things they can eat easily." and while small is big, so is spicy - as in tabasco jelly bellys. "we're a global, international company with facilties in thailand, and i can tell you, we're providing for all international markets, and it's not just a trend in the u.s." overall, business is good. snacks and sweets are a $33- billion-a-year industry, and sales were up 3.7% last year. "the economy is sluggishly rebounding." amy tarrant's too haute cowgirls popcorn confections from denver doubled sales year- over-year - 75% of it from deals made at this show. but last year's drought severely affected margins. "our popcorn prices went up." still, there is always room for invention. "i heart quinoa" took a protein-packed superfood from bolivia, added seasoning, and

sold it at farmer's markets. it's now a snack in 700 stores. "so much of the business is you, controlling everything. is it also you as salesman, trying to convince investors? at this stage, yeah." last year, there were 765 new products introduced in the candy and snack foods catagory, more than half of them chocolate. a jet powered by the sun is turning into a star. the experimental airfcraft, named "solar impulse," landed safely in dallas thursday after flying 823 nautical miles from arizona. it's a new world record in aviation. still to come, what sector of the market is approaching the death crossroads? that's later

in traders unplugged. but first, should you stay or should you go? why stay-cations are hot this memorial day weekend as travel hits a low point. that's next.

comfort counts, especially when it comes to airplanes. on its list of best and worst airlines, consumer reports rates

virgin america at number one. flyers say they like virgin because even in coach the seats are comfy. wifi and its entertainment system also gave it high marks. southwest and jetblue were among others that ranked high. spirit airlines received the lowest score due to high fees. aaa predicts the number of people choosing to fly to destinations for the memorial day holiday will drop dramatically this year. we are turning to travel expert marita hudson thomas of orbitz. marita, aaa says that people don't want to fly because of all the added fees - who can blame them? what are you seeing? - travel may be down over memorial day weekend, but about 77% of americans are saying that they are taking a summer vacation this year, so it could be that people are staying home for memorial day, but they are waiting for that big trip over june, july, and august. - what are some of the more popular destinations for memorial day?

- i am sitting right now at the entertainment capital of l.a., in universal studios, hollywood; and this is the perfect getaway for adults, children, or families. so los angeles is definitely a big destination for us. but, the number one destination is las vegas. and, it is not a surprise with room rates hovering around $135 a night. it is very affordable for travelers. number two is new york, and chicago rounds out the third as the number three destination for memorial day. - we like to hear that. what are some other places where perhaps people can get great deals? - orlando is always a good deal for travelers. i always say orlando and las vegas, because they have lots of inventory, and when you have a lot of inventory, you need to get heads in beds, so that keeps those room rates down low. - what other trends are emerging out there, marita? - i will tell you for summer, most travelers are looking to take a beach vacation. the

majority of travelers are actually saying that they are taking a beach getaway, and second is historical or cultural getaways. the third most popular getaway for summer is going to be cruising. - will there be any tricks to getting great deals? - absolutely. my number-one tip is always to book a package. so you want to think about booking your air and hotel, or your air, car, and hotel together. on average you're going to save around $500. and for those who are procrastinators - i call it the procrastinator's promo code - orbitz is offering 15% off of memorial day getaways using the promo code "sunfun15." so if you still haven't booked your getaway and you're feeling inspired right now, you can still get 15% off through sunday if you book by sunday. - thank you, marita, and safe travels to you. - safe travels, angie. still ahead, why hot summer properties are giving traders a clue about the markets. that's next, in traders unplugged.

what better way to start off the weekend than with a trip to the floor of cme group, where alan knuckman and james ramelli are standing by for traders unplugged. good morning guys. let's get you going with topic 1: konnichiwa japan - is it too late for average joes to invest in japan? - we had a big unwinding overnight here in the last couple of sessions, down about 7%. but that's after it has been up 40%, straight up; so, that's only to be expected after that kind of move. - right. you know, they came up so far, so fast, that any little piece of bad data we had - poor chinese manufacturing numbers - is going to send some people running for the exits. i think it was a good buying opportunity. i got long the dxj over the ewj. you want look at a buying of the dip, look at a 5-minute chart of those today. - and looking at the ewj, there is solid support at $11. you can use that as a level to lean against. that is the halfway level from the 1999 highs and

2003 lows, and also the halfway level of this last leg from 2006 to 2009. lean on $11 in ewj. - leon on it. topic 2: bond crossroad - the 50-day moving average fell below the 200-day moving average. does that mean this is the end of the bond bubble? - pop! pop! what do you say? - you know, i can't be a buyer of bonds here. i think the perception is that bonds are a bubble right now. you look at assets that are overbought, treasuries might be one of the most overbought assets on there, with the exception of the jgb. - looking at this 10-year benchmark, we have seen treasury yields go up 2%, so that is the first time that has happened since march. we have got a lot more upside to go. looking at this, the target here is 2.4%. so, based on these retracements and based on the halfway point of this larger overall movement the last five years, that is a healthy sign. that means there is confidence, and people taking money out of safety and putting it to work elsewhere, so that could help out the stock market as well. so a pop is not a bad thing, in my opinion. - topic 3: esp-profit'n. espn is laying off 200 workers, but disney stock is at an all-time high. is this stock a buy, hold, or sell? - take this one. - i think this stock is a buy here. it is a little bit off its 52-week highs. espn lays off 200 employees. i don't even know if that is a lot of employees

for them to lay off- - they have 7000 employees, so that's not much. - right. really i think it's a marginal- - but it's a matter of principle. you're making all types of highs, the stock has doubled from $30 to $60 in a year-and-a-half, and now they are laying off people? it is just, it is a reflection of america, unfortunately. with greater efficiency, that helps the stock prices. it is the reality. you've got to be able to make money based on what the stocks are doing and in the performance. - time now for your bonus round question, and we have summer on our minds. so, here you go: in what area of new york are rental prices extra high this summer? and i'll give you a hint: this area is popular with wall street traders, bankers and hedge fund managers. - the hamptons. the houses. i can't rent my house for the summer. - awesome job! you totally nailed it. thanks, guys. have a great weekend. first business continues right after this.

after having an extremely strong run, abercrombie & fitch may be headed for some heavy

trouble. good morning to scott bauer of trading advantage. this is a stock a lot of traders are watching. - oh yeah. it has been in the news, especially with some comments from the ceo. but, specific to the stock and specific to retail, there is a lot of steam behind what is going on here. now, when they report these earnings, and there is any additional backlash about what is going on in the media, that may affect it. but let me just say, angie, that fundamentally, technically, this stock is really still in a bullish pattern, trading toward the upper range here. in fact, there is very heavy call option volume, especially on the $55 and $57.50 strikes that expire later today, the weekly options. so, if there is any sort of good report here, that may negate some of this negativity in the media. - well that is just fascinating that people are still very bullish on this stock considering the comments that were made, the ceo saying he likes those slim, cool, trendy

shoppers, and that is why he doesn't sell above a size 10. but, do think we will see some backlash eventually? - i do. something like this doesn't go away easily. this is not a product failure, something like we saw with lululemon. this is now a, let's call it a culture, and i'll tell you, i actually have a group of students visiting today, a group of high-school students, and it's a small sampling, but they are all telling me, a), they can't stand what's happening in the media, and b), that abercrombie is no longer the hot fashion. but, in the media here - you know, the media is very, very powerful - we are going to see those earnings come out, and that's going to take over. but in the long run, it can't help what is going on there. - and you do have to listen to what the teens are telling you. that is the demo there. - absolutely. absolutely. - good job. thank you. that is

trader scott bauer of trading advantage. have a great weekend! - thanks! you too, angie. that ends our week. coming up monday, we kick off the unofficial start to summer with suggestions on stocks to buy before the fall. from all of us at first business, have a safe memorial day weekend. and, as always, we give a salute to our troops.

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