the bears shake up the market with a major sell-off. how the bulls are shaking it off. in today's cover story: future fortunes: new ways america's wealthiest families are investing. donation dollars: tracking contributions to oklahoma storm victims. and, in movies and money: google gets played out on the big screen. plus, what our critic is calling the best film of the year. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning. it's thursday, june 6th. i'm angela miles. in today's first look: stocks on edge! the dow breaks below 15,000 as the s&p 500 hangs on loosely to 1,600. the stock market plunged yesterday on early indications the jobs

number friday could fall short. also, mortgage rates hit 4% wednesday. vera bradley, the sassy handbag maker, is lowering its sales outlook. also, the ceo is resigning. shares fell 8%. jp morgan reportedly has sewer stress. the bank could take a $1.6 billion loss from a sewer deal in jefferson county, alabama, that lead to the largest municipal bankruptcy in the nation. and the tsa reportedly is cutting plans to allow knives onboard flights. there's the sound of our opening bell. todd horwitz of average joe options joins us this morning for a closer look at the market. good morning to you. - good morning. - and is it "look out below 15,000" for investors? - you know, i have to tell you, it looked a couple weeks ago when we made that key reversal on may 22nd, it looked like the top was in, and it certainly appears like it now. i think

below 15,000 in the dow, i think below 1600 in the s&p. you want to be out or short this market. i don't think you want to bring any new money to the table here yet. - aren't there some buying opportunities here? come on. you're a trader. - i don't think so. i think if you're a trader, you might look for a quick strike, but i think the trend here is now switching over a bit to the downside, and i would rather be late in getting back in than try to be early and try to catch this falling knife. i think that we're going to see a little bit more selling. now tomorrow, we do have the jobs number, so it should be fairly quiet tonight. i wouldn't expect a major move one way or the other today. i would expect it to be fairly quiet waiting for the jobs number tomorrow. but if it misses, as wednesday's adp job missed, it could be "look out below." - good to have you on the show this morning. that's todd horwitz of average joe options. thanks a lot. - thank you. have a great day. an economic overhaul in japan is rattling stocks in the u.s. and

asia. the nikkei sank to a two- month low yesterday after japanese prime minister shinzo abe laid out a plan to reboot the country's struggling economy. nicknamed "abenomics," the prime minister's agenda focuses on foreign investment, will ease certain regulations, and nearly triples financing for infrastructure by 2020. critics say the plan is missing key details, including changes to the labor market. america's favorite passtime is facing a shakedown of 20 players who may be involved in a massive doping scandal. espn reports major league baseball is set to suspend 20 players, including baseball's top-paid player, a-rod - alex rodriguez of the new york yankees -, as well as ryan braun of the milwuakuee brewers. the player'' union says no decision regarding discipline will be made until interviews with players are completed. the biogensis lab that tests for steriods reportedly is said to be assisting the major league. "the players' assocation can not do a darn thing. if the lab wants to turn this over to the mlb, they can. some people are wondering if the mlb may be paying them off under the

table." that was sports reporter les grobstein of the score. the league reportedly plans to ban the players for 100 games. when it comes to rich athletes, tiger woods takes the lead. after slipping in the rankings last year, woods now tops forbes' list of highest earning athletes thanks to endorsement deals with nike and rolex. woods earned a whopping $78 million this year. roger federer, kobe bryant, lebron james and drew brees also scored big. gas prices are becoming a source of pain in the midwest. in michigan the average gallon of unleaded has spiked to $4.11, the second highest in the country behind hawaii, at 4.35, although several stations in michigan have been spotted at a record $4.39. in illinois, prices are around $3.95. old refineries falling into disrepair is creating panic in the market, according to patrick dehaan of gas buddy. "what we are seeing with refineries and setbacks, i can't say whether there are any issues or any conspiracies going on. many problems at once are creating some supply concerns,

which is leading to these higher prices." aaa reports the bp refinery in indiana and an exxon mobile refinery in illinois are down for major upgrades or repairs. genetically-modified wheat is at the center of a new lawsuit. a farmer is suing seed-maker monsanto, claiming that an experiment with genetically modified wheat contaminated his crops. last week, the usda discovered a test crop of the wheat in oregon and several other states, but says there is no evidence the wheat is in the marketplace. monsanto calls it an "isolated incident." china is playing a game of tit- for-tat with europe. yesterday we reported europe plans to impose a $12 tariff on solar panels made in china. well, now china reportedly is considering retaliation with an investigation into wine from europe. the european union exports nearly $1 billion in

wine each year to china. a u.s. senator is asking probing questions about the chinese company planning to buy a large american pork producer. china's shaunghui international has made a bid for smithfield foods. senator debbie stabenow of michicagn is concerned about the deal, based on what she calls china and shaunghui's troubling track record on food safety. if the $4.7 billion buyout happens, it would become the largest u.s. company to be acquired by a chinese company. the founder of sweden-based ikea is passing the reins over to his son following the horse meat scandal. ingvar kamprad is stepping down as chairman of the board and giving the seat to his son. earlier this year, horse meat was discovered in ikea's signature swedish meatballs. the retailer has since stopped selling them. a bid to take dell private is coming up short according the board. a dell committee finds

billionaire investor carl icahn's proposal has a $3.9 billion shortfall. icahn offered up $12 a share to take the company private last month. in a regulatory filing, dell claims it's not enough money to keep the company going and pay a dividend. dell revised icahn's bid to $9.35 a share. ceo michael dell has proposed a deal for $13.65 a share. a buyout meeting is set for july 18th. united airlines is selling subscriptions. for $349 a year, passegeners can check their bags all year. for $499 they get added leg room in economy plus seats. last year, airlines took in $36 billion in extra fees. the fees, however, have become a frustration for people who fly. the sec voted unanimously for stronger rules on money market funds. the $3 trillion market came close to toppling during the 2008 financial crisis as investors rushed to withdraw funds. now, the sec is proposing money market fund prices "float," similar to

bonds, and a 2% fee on certain investor withdrawals. bernie madoff is offering sage advice on how market regulators can stop scams on wall street. he spoke to a marketwatch reporter from prison, where he is serving time for cheating investors out of billions of dollars in an elaborate ponzi scheme. madoff says the sec needs more resources to protect investors, hedge funds are a danger to the market and need to be registered, brokerages and advisors should have independent custodians, and accounting firms should audit other accounting firms. in today's cover story, the future of family foundations is evolving rapidly as millenials take the reins of their predecessors. this week, dozens of philanthropic leaders of families, businesses and universities are gathering to

chart out new ways to invest and give. "we are constantly trying to push the envelope on how to make that impact." ellie frey is changing the way her family gives back after nearly 40 years of traditional philanthropy. banking and insurance magnate edward frey first established the frey foundation to help the grand rapids arts and civic community by donating to the opera, ballet, and symphony. but his granddaughter ellie grew up traveling the world, so she is diverting some of the foundation's charity dollars to international causes and alternative organizations that stir her own passions - and doing it in a modern way. "the difference i've seen since then are the use of technology, the use of platforms like kiva, microlending, micro grants, crowd funding." ellie joins dozens of other foundation trustees in chicago at the national summit on family philanthropy, convened to share ideas about the changing face of family giving. "your father's philanthropy usually was making grants." but now it might be 'impact investing' or 'program-related investments,' strategies by

trustees that may yield lower fiscal returns for their endowments, but allow a larger portion of the foundation's money to go towards its mission by choosing investments based more on the company's philosophy than its quarterly reports, or offering loans to 'socially responsible' entrepreneurs or developers. "the rate of return is not the goal of the loan." trustees are also using their leverage on corporate boards to try to influence policy through shareholder activism. "there's a transition happening with the next generation - not sure where it's gonna go. what we're hopeful for is a good dialogue." some trustees are shifting endowment investments to benefit-certified companies that generate a profit and create positive social and environmental impacts. still to come, corporate comedy: vince vaughn and owen wilson are back together for an "internship." that's later in movies & money. but first, a flood of charity

dollars, and where does it all go? bill moller has a breakdown, next.

you know what drives donations to relief charities? disasters like super storm sandy of the oklahoma storms, those really bring the checks in. but do you really know where your money is going? not all of it goes to

relief. charity watch is an independent charity watchdog organization, and stepahnie kalivas is an analyst. why don't you tell us, typically, what's the range for what a dollar turns into once it's contributed by somebody. - sure. the range can be anywhere from very efficient - over 90% of every dollar - to extremely inefficient - 20-30%. - wow. - or lower. - how about some of the well- known charities that are contributing right down to oklahoma relief? - sure. there's two charities that are extremely efficient responding right now in oklahoma. the american red cross is giving about 91% of every dollar, and an organization, save the children, is also responding there, and they're giving 91% of every dollar. there are a couple additional charities: the salvation army, they are at

about 77% of every dollar, and habitat for humanity at about 79% of every dollar going to those programs and services. - the jimmy carter organization. so, if not 100% is going, where is the difference going? - the difference is going to things such as fund-raising and administrative costs. these are important costs as well for every organization - they need to spend money on those areas. but when you are looking for an extremely efficient organization, you want high program spending and lower administrative costs. - and marketing costs, i know are a big thing too. or sometimes you find out that the head of an organization makes millions of dollars a year. so, what kind of questions should i ask if i am solicited for money? - you should ask exactly that question: where is my money going? how much of my dollar will be spent toward the bonafide programs and services you are providing in the disaster area? - you check something like five or six hundred different charities, and there are millions of them. probably your website, charitywatch.org, is a great resource. - charitywatch.org: we have all of the top-rated charities listed on our website. there are additional tips for wise giving an online giving and things like

that, to know in times of a disaster - how to make wise giving decisions. - stepahnie kalivas, thanks so much. - you're welcome. thank you, bill. thank you, bill. still ahead, could a new comedy turn fans against the corporate culture at google? that's next in movies & money.

the "fast and furious" series is quickly becoming hollywood's next big franchise. joining me on set this morning is erik childress. he is our movie guy.

good to have you on the show this morning. once again: it's a winner. - absolutely. it already is hollywood's next big franchise, certainly for universal. they have already greenlit part 7 for next summer. - wow. already coming at us. - that's right. - all right, here's what else happened at the box office last weekend: "fast and furious," as i mentioned, coming in number- one at $35 million. "now you see me" at $29 million. "after earth" coming in at $27 million - that's the will smith movie. and "star trek into darkness" at $16 million, "epic" at $16 million. and you can go ahead and tangent on "after earth." - it's will smith's worst summer opening of his career. it's an absolute disaster as a film. it is not a very good start to the summer for sony. this is a $130 million-budgeted film. $27 million is not a very good opening for will smith. it is going to need probably about $250 million overseas just for this thing to break even. so it's a bomb in the u.s., but it is a little too early to call it a bomb completely, because he does draw in crowds overseas. - that's the end of the tangent

there. moving on to what to expect at the box office this weekend. "wedding crashers" fans have a big one to look forward to - "the internship" - and "the purge." now you saw "the internship." - i did. - what's your observation? - i think it's going to turn people against google in a big way. - why is that? - because the movie just really treats google as sort of almost like a disneyland paradise. it talks about many times in the film how it has the power to change lives and stuff like that. it's really ridiculous. people don't want to go to a comedy with this cast and see a commercial for google. and the movie's not very good on top of that, to begin with. - too much ad placement. - absolutely. absolutely. - so who wins this weekend? - i think "the internship" is going to pull it out. i think "fast and furious" might dip back to second. i think the advertisement has been strong enough that this might pull in a pretty reasonable victory. - let's take a look at what's happening with sony. as we mentioned earlier, "after earth" already out. "this is the end." any hope there? - "this is the end" is a very funny movie. - you liked it. - yeah. it's seth rogen, james franco, and jonah hill playing themselves during the apocalypse. it's kind of a hard movie for the studio to sell, but it is easily the best comedy that's been released so far this summer. - also from sony, "white house down." - yeah. we already had "olympus

has fallen" earlier this year, an attack-on-the-white house movie. i think this movie will probably suffer because of that, because people have already seen it. - been there, done that. "grown ups 2," "the smurfs 2," o.k., people... "one direction: this is us." - a concert film. sony is going to end the summer with two sequels that are very easy to greenlight, and a concert film. so i think the numbers on the grosses are going to look pretty decent for sony, but with the budgets, i think it's not going to be a very successful summer for them. "white house down" is a $150 million movie. that could be even a bigger bomb than "after earth," possibly. - and i have to mention here, i saw "42." i think it's a great summer film. it was already out earlier this spring, but i hope it continues on into summer. it's a great one to take the kids to. - warner brothers is very happy to hear that, because it was one of their first successes of the summer. - i know! i plugged it. i never plug. it should be in high schools. mandatory. - [laugh i'm gonna say, people should avoid "the purge" this weekend that universal has out. go see the other ethan hawke movie in theaters, "before midnight." it's absolutely the best film of the year. - thanks for coming on the show. - thank you. it's back to the market after the break. and if yesterday's sell-off scared you, wait to hear what one trader has to say. first business continues right after this.

alan knuckman has been one of the more bullish people on our show of late. let's find out if he still feels that way. good morning to you, alan. - good morning, angie. i am not trying to be the smart guy, i am just not trying to be dumb. there have been a lot of folks who have been trying to pick this top in the last four years, and look where it's got them. so, i look at this as an opportunity. everybody was saying, "i want a 5% sell-off, i want a 5% sell-off." that's what we have. now what do you do? - what do you do? - i am looking at this as a level we can lean on in the s&p. the s&p at 1600, i think, is important. that was the objective, technically, for a long time, and we achieved that. obviously, we exceeded it. it will be important to see how we hold the support at 1600. as

a trader, reward-to-risk, you can lean on that and see if that holds on a weekly basis. but some of the other indicators, if you look at bonds, bonds are not rallying. we are not seeing fear, we are not seeing flight to quality. bonds actually made year lows just last wednesday, and we're still not to the halfway point of that little bounce from those recent highs. so, i think all things are still positive for stocks, unless you want to be that guy to try to pick the top. - alan, i want to be extremely clear about this: so, as a trader, or an investor, you are looking at the current levels, and you're thinking it's ok to put some money to work. because earlier, we had a trader on the show who said, "stay away from the market." - right, and there have been a lot of folks who have been saying that for the last 20% rally. so, i've got to go with

what the markets are telling me, what the tape is telling me. i don't want to think, i want to read what the prices are telling me, and the prices are telling me that this is an opportunity, a pullback opportunity. you don't have to risk a whole lot to see if this holds on a weekly basis, and if you look at the vix, the fear volatility here has come to 17.5. that is the midpoint of the highs to the lows. so it will be interesting to see on a weekly basis if we exceed that or not. right now, i like where we stand as a buying opportunity. - and quickly, where would you buy? what are some sectors or some stocks? give us some names. - looking at elf, the financial sector, that has led the market higher, and i think it's a good area here. again, they are down 5%. you've got to remember, only friday, a week ago, this stock was 10¢ from its four-year high. so, look at this as an opportunity. and they lead when earnings come out here in a month. that's where we're at with the market. the market is kind of picking at scabs right now, because we don't have any fundamental data to drive it, but earnings will get us back in the right frame of mind and get us going once again, in my opinion. - we will look forward to seeing you tomorrow on traders unplugged, alan. thank you. - thank you. that's all the time we have for today. coming up tomorrow in traders unplugged, is netflix about to become a star stock once again as it acquires new hit shows? watch the great debate right

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