homebuyers lose out as more wall street firms move into u.s. neighborhoods. in today's cover story, the e- commerce explosion: how the retail industry is preparing for massive changes ahead. back on the map: some once- troubled stocks are making it back into the s&p this week. is it a buy signal? plus, he was a multi- millionaire before the age of 30. find out how one entrepreneur followed his investment dreams and scored a home run. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning. it's wednesday, june 5th. i'm angela miles. in today's first look: the tuesday trend ends.

following 20 tuesday rallies in a row, stocks fell yesterday, with the dow down 76 points. amazon rolls out plans to get into groceries. the e-tailer wants to sell groceries online. u.s. regulators ruled that apple infringed on a samsung patent when creating some of its gadgets. and shares of mattress firm holding corp. rose 6% after the close, after topping analysts' expectations. larry shover of sfg alternatives joins us now, and larry, what are we going to do? the tuesday trend has come to an end. are you now looking for new trends in the market? - i am, but right now we are all grasping for news. the bottom line is, there really is none right now. i think all eyes right now are on the bls report on friday, and then people are penciling in september. so right now, it's just a barren landscape of economic agenda, and it's not producing any trends. - right. the jobs number out on

friday, but with economic data coming in today that might give you some hints, will you be paying a little bit closer attention to those, such as the ism and the adp? - yeah, definitely. the adp has not been a great predictor of the bls report on friday; however, sure, people will look into it and make assumptions. but the bottom line is, friday is so important, with what the expectations are for the fed. what are they going to do in september, if anything? - what do you think about the risk level in the market? is the risk on or off here, larry? - the risk actually is somewhere in between, because what's going to happen is at some point the fed is going to have to raise interest rates above inflation. at some point the fed is going to have to withdraw and retreat from the capital markets. this is going to cause a reshuffling of the deckchairs. so, depending on what sector you are in will determine how you're going to do. so, again, just a broad portfolio makes sense right now. - medium risk is not bad. maybe

we even have goldilocks here. good to have you on the show this morning, larry. thank you. - thank you. "explosive growth" is not a phrase heard much during a slow recovery, but it is the defining mantra of e-commerce, which is increasing about 15% a year - more than three times the growth of brick and morter retailers. and it's not technology that's fueling that rise, according to those at the world's largest e-commerce conference. "it's a trillion dollars worth of purchases in the u.s., not a small number by anyone's measure." consumer spending online is one of the reasons why more than 600 exhibitors are preparing for the onslaught of 9,500 e- commerce professionals gathering at mccormick place in chicago this week. while they work to personalize their message, many share a common prediction about the industry. "it's not going to go away, and people who ignore it are going to go away." "not just a competitive advantage, retailers have an imperative to be sure to address the customers the way they want to be addressed." take the vermont teddy bear company, once so dependent on

catalogs generating orders through its call center. "we do about 75% of our business through our e-commerce sites." "the consumer is driving that. they're telling the business when and where they want to buy." attendees at the internet retailer conference say the focus on e-commerce is not just critical for big chains, but even for mom and pop stores and wholesalers. "we are just dipping our toes in, and it feels like the digital channel is huge on a lot of levels." many show up looking for education at a conference seeing nearly 10-fold growth since it launched in 2005. workshops range from search marketing to mobile commerce, and even include a full-day of sessions devoted to teaming up with amazon, pushing retailers of all sizes to adopt the idea "if you can't beat 'em, join 'em." "it's about realizing that there's an opportunity for retailers to work with amazon, and how does that happen?" the director says the new retail landscape has a worldwide reach like never before. "the internet has always been global, of course. what's caught up is the technology to be able to service that."

that's the subject of al gore's address to the group wednesday morning, breaking the barriers to allow businesses to become truly competitive with companies all over the world. the former vice president is touted in the program as a senior advisor at google and board member at apple. investors are closely watching an internet radio war. the wall street journal reports apple signed a licensing deal with warner music group giving the tech giant rights to warner's music play list. dawn chmielewski of the los angeles times says apple has a large reach with listeners. "clearly apple's entry into streaming music will expand the experience and make it available to more people, and perhaps will present a real serious rivalry for the competitors that are already in the space, like pandora, spotify, and others that are less well known." pandora shares this week have fallen from the $17 range to $14. apple holds its

developers' conference next week in san francisco. a move toward cloud-based technology is behind new deals this week. salesforce.com is buying marketing technology company exact target. the deal, valued at $2.5 billion, gave a huge lift to exact target. that stock shot up 52%, closing at $33. meanwhile, in an effort to amp up its business in cloud computing, ibm is buying dallas-based softlayer for $2 billion. ibm closed down 1% at $206. the ceo of dell will get a pay cut, and it's because of the company's performance. according to bloomberg news, michael dell, founder of the computer company, will receive $13.9 million this year, a drop from the $16.1 he earned last year. dell has slipped in sales, profits and stock price. at a special meeting next month, shareholders will vote on michael dell's plan to take the company private. the plan is opposed by billionaire carl ichan.

the chairman and ceo of scott's miracle grow, jim hagedorn, has reportedly driven away three board members because of his language. the lawncare products maker says it has reprimanded hagedorn and that it will not replace the board members. the specific comments were not made public, but hagedorn has apologized for "inappropriate language," saying it won't happen again. new york's attorney general takes aim at hsbc. eric schneiderman is suing the bank, saying it is "brazenly ignoring state law" by not setting timely foreclosure settlment conferences with mortgage holders. he claims the bank did not file the paperwork that triggers the conferences and continued to assess fees, interest and penalties. hsbc says it is committed to following the law and will respond to the complaint. detroit's financial emergency is reaching a breaking point. the city's emergency financial manager, kevin orr, is expected to call a meeting with creditors in the next several

weeks. orr stirred up controversy after asking the detroit institute of the arts for an appraisal of its entire collection. if detroit declares bankruptcy, it could sell the works to pay off debt. the collection is valued at more than $15 billion. detroit's debt is estimated to be $17 billion. president obama is taking executive action to limit what critics call "patent trolls." the action targets firms that collect patents solely in order to earn licensing fees. the president is issuing five executive orders and also focused on abusive patent lawsuits, asking congress to pass new laws on patent protection. controversy over the irs continues to grow. lawmakers are now locked in a debate regarding the agency's budget. following reports that the irs spent $48 million on conferences from 2010 to 2012, some republicans are calling on congress to monitor irs spending. yesterday in a hearing, lawmakers heard from conservative groups allegedly singled out by the irs. "americans are downright afraid of what is going on, and we

have got to restore the credibility of government as servants of the people rather than our masters, as my collegue said. the number of stories i am getting that indicate those greater concernsowight troubling." an audit of irs offices by the inspector general was unable to find out who called for targeting certain groups. a private firm in rhode island is placing a big bet on greece. japonica partners and company plans to buy $3.7 billion in bonds issued by the greek government. the firm's founder was formally a goldman sachs banker. japonica will pay 26.5% over the offer price from the government, and at least 45% of the value of the bonds. the firm also may become the first private investor in european government bonds. a slowdown in france's economy is causing concern. the imf has cut france's growth forecasts, and is urging the country to reduce its labor costs. fears

are running high that the country could become less competitive due to a lack of economic reforms. unemployment stands at 11% in france, and is expected to grow. the european union is joining the u.s. in an attempt to stop china from taking over the solar panel industry. china is the world's largest producer of solar panels. european officials accuse china of selling the panels way below cost to remain number one. starting in august, europe will impose a 12% tariff. in 2011 alone, china exported $21 billion in solar panels to europe. wall street firms are accused of propping up the housing market. large investment firms have been spending billions buying up depressed properties in las vegas and phoenix. there is concern it might be squeezing out individual buyers. a couple of examples: the blackstone group has purchased 26,000 homes, and colony capital, which already owns 10,000 properties, is said to be spending $250 million every month. lululemon is attempting to end

the sheer madness surrounding its yoga pants. the athletic wear retailer is coming out with yoga and running wear that has more fabric across the back. the company's stock plunged in march following unwanted episodes of yoga pants made of a knit fabric becoming see thru when stretched. the stock has climbed higher since. reinforced black pants will be available this month. hilton hotels says it will no longer offer room service at one of its largest properties. in-room dining will end this summer at new york's hilton midtown - a long-time tradition, but the service is not profitable. the hilton ceo expects other hotels will also cut back on in-room dining as a way to boost profits. still to come, young, rich and ready to invest. insights from a guest who made it big at the age of 25. that's later. but first, tweet your way to a new job. why more companies are tapping into twitter to find

employees, straight ahead.

social media - first used for silly social interactions, it continues to find a footing in the professional world. take

twitter: originally a place to post all those banalities of daily life - "just enjoyed a bowl of coco puffs" - it's now being used by companies to hire. tom gimbel runs the staffing company the lasalle network, on inc magazine's list of the fastest-growing private companies. good for you. - good to see you. - tell me how this works. - i think twitter is an information resource. so people want to be on there to gather information that they can use in their job search, both about companies and about hiring. - all right, so it's people looking for work that use it. how about companies? is it easy to find employees? - absolutely. they want to be able to broadcast. companies are usually going to have more followers than individuals, aside from celebrities, athletes, and all those people. so companies want to be able to post on their twitter feeds what they are hiring for, what types of people they are looking for, and the key is to get retweeted. and once you get retweeted, then you can get into the virality of the whole internet, and yadda yadda

yadda... - so if people are looking at a particular sector for work, and companies are posting things there, it is sort of a community, and as it is retweeted, it is probably going to be retweeted throughout that same community. - and beyond that community into other areas. number one, that we can't forget, is that most people want to help other people. so when they see something about a job, and they have friends in that space, they are going to retweet it. and once it gets retweeted, then the act of being able to find something really becomes a smaller scale type of endeavor. - we always think that it's the younger person, the 20- somethings, that are heavy twitter users, social media users. does that mean older folks typically are not going to be in this pipeline, because they are not on twitter? - no. actually, i think it's a little bit different. i think more older folks are on twitter. having just turned 40, i am a little bit nervous about your reference about old and young.

- i think the gray hair coming in. - i wish i had any hair. but i think the fact is that younger people are using twitter almost more for communication amongst their peer group, where the older folks are using it more as a research and information gatherer. so it is actually going to be more beneficial for the older population. - now linkedin is the self- appointed business site. - absolutely. - now is this cutting into linkedin's turf? - i don't think so at all. you can actually post on twitter and have those posts show up on your linkedin account, and on facebook. so, really social media is taking a lot of the different sites and making them universal, where you can post one place and have it show up on others. so i don't think it is really a conflict. - tom gimbel, thanks so much. - good to be here, bill. thank you, bill. still ahead, fast cash: find out how our next guest claimed millionaire status by the age of 25. that's next.

it only took 25 years for logan stout to become a multi- millionaire, and he's here to share his stout advice with us this morning. happy to have you

on the show. you are an author. you are also the owner of the dallas patriots. did you always know you were destined to become a multi-millionaire? - you know, it's funny, that wasn't the goal. the goal was just to pursue what i was passionate about, and one thing led to another. i guess if you can do what you are passionate about and make money, that is better than doing what you are passionate about and not making money. - what did you do? - well, bottom line is helping people. i got involved in some industries where i was serving people, try to help them meet their needs, and in turn, i found when you help people meet their needs, there's a product or a service that you're providing that they're willing to pay for. and ultimately that's how i did it. - what were some of those services, and how can other people take these same actions? - great question. direct sales was how i got my first start, just helping people create financial freedom on their own. then i went into traditional

businesses, started a couple traditional businesses. in turn that led to incredible success. but at the end of the day, it all comes down to people, and i have found that if you have the right people, and you help feed individuals the right things, they will perform at a higher level than they are ordinarily capable of performing at. and when you get a group of those people doing that, moving in the same direction for a common cause, it usually leads to a great outcome. - do you do any investing? - i do. i do invest. people ask me that all the time. obviously i have money with a financial adviser and all that. for me personally, i like to invest in myself. if i am going to do a business, i like to put money into something where i at least have some kind of control mechanism. i am not a huge fan of throwing money at something and hoping it works. that's really not my m.o. - what's your current net worth? - my current net worth, that's a great question. that depends on if i am asking my net worth according to what my banker thinks, or according to my bank account. it's enough. it's enough to not have to work again, how about that? - the best you. that is logan coming up, a milestone moment for the once-bankrupt aig and gm. are the stocks a buy ahead of the return to the s&p 500 index tomorrow night? chart talk

is next.

a couple of large-cap companies are rejoining the s&p. joining us now is tim biggam of trading block. good to have you on the show, tim. - always great to be here. thanks angie. - gm is headed back to the s&p 500. aig also moving back on the s&p 100. what does this mean for investors? will it make a difference for these stocks? - i think certainly being back in the s&p 500, probably a bigger story for gm than the s&p 100 for aig, although it really shows the turnaround on two of the biggest government bailout companies that survived. so, going forward, we are seeing certainly some pre-buying in front of gm on that

reconstitution in the s&p 500, with the stock being bought up in anticipation. so, going forward, they will probably be more market performers here as the basket traders will obviously have to buy and sell the individual stocks againsacc - now, the government has already made about $2.7 billion at least on the gm bailout deal - not too shabby there. but, for a long-term investor, is it time to get in on these stocks? - i think, given the price action we have seen, especially on gm, maybe a little caution warranted here. the stock is breaking out to new highs, certainly well above its 250- day moving average. getting a little bit frothy here, maybe a lot of that having to do recently with that addition to the s&p. so, i would look for a pullback, maybe around that mid- $32 level on gm before i would add a position there. aig, i'd probably stay away, certainly until it drops below $40. the stock also has come up very sharply here, and that kind of no-fear mentality is being staunched a little bit. we will see how it is going forward. - good to have you on the show this morning. thank you, tim. - you bet. thank you, angie.

that wraps up our show for today. coming up tomorrow, is another hit in the works for fox films as "the internship" opens this weekend? from all of us at first business, have a great wednesday!

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