traders position for a jobs jolt as the government releases data on employment in what's been a rocky week. in today's cover story, hiring friction: why teens may have a harder time scoring a summer job. plus, president obama meets with china's leader for crucial talks on cyber security. and, has the stock market hit the top? and could that mean a drop? first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning. it's friday, june 7th. i'm angela miles. it's the first friday of the month, making it a jobs friday. traders expect 159,000 jobs were added to payrolls and the

unemployment rate will remain unchanged. ahead of the news, stocks staged a major comeback, and commodities rallied as well. after hours, gap shares continued to gain after posting same-store sales that rose 7%. starting this month, apple reportedly is launching its first iphone trade-in program. and protesters are trageting the chicago sun-times. the newpaper recently laid off its entire staff of photographers. scott bauer of trading advantage joins us now, and scott, are traders just ready to pounce all over this jobs number coming out today? - i'll tell you what, angie, yesterday at the close, there was just some massive buy orders coming into the s&p pit. it was actually pretty frenetic in there. i haven't seen activity like that in quite a while. so, i think that traders are ready for a big move. i think the bias is to the upside. i am one of the few that think unless we get just an abysmal number, that we're going to

rally into that. - one of the big rallies that could happen is in sodastream. there are rumors that maybe pepsi is interested. the company denies it. but what do you think about this stock and this trade? - well, i think the stock is in play at least, for a short while now, and you are seeing that reflected in the options, in the volatility that's out there right now. so whether pepsi or coke or anyone comes out in the next week or so, the stock is going to be stable, trading in probably a range of about $68 up to about $75, until some news comes out. now, as time wanes and maybe there's no talk, we may see it back off. but i certainly wouldn't go short it with the expectation that something could happen. - jaime dimon, the ceo and chairman of j.p. morgan chase, says there's going to be more volatility in this market. do you go along with that, scott? - at its most basic premise, volatility, the way it was, the last six months, the last 12 months, was abnormal. the vix being down at the 12, 13 number, that was abnormal. the vix being back up around 15, 16,

that is more normal. in fact, yesterday we saw the vix trade almost 18.5, close down under 17. that was an intraday swing of about 15%. so, i don't see that ending, but that is more the mainstream. that is more the norm of what we have seen over the past 10 years or so. - it's all relative. - exactly. - good to have you on the show this morning. thank you. - thanks angie. the race for summer jobs is on. the non-profit youth organization junior achievement found nearly 2/3 of teens surveyed are optimistic they'll find summer employment despite the fact that fewer than half of them have ever worked before. in our cover story, what employers are looking for. for summer seasonal work, laura ustick, general manager of superdawg drive-in restaurants, founded by her grandparents, has a short but important list of qualities she looks for when hiring. "i look for a friendly face - we have a lot of customer- interaction, obviously. i'm

also looking for someone who's a quick-lerner as well." and at the top of the list, showing up for work on time. "if you don't show up for work, others can't leave." it's a list of a lot of employers use and could mean the difference in who gets the job. "it's a very tough market because so many are looking for work." junior achievement found in a regional survey of teen job applicants, 49% would network through their parents' connections for work, 43% of teens would apply online, and 38% would look for "now hiring" signs. networking is at the top of anne edmunds' list. "tap into your network. your parents, brothers, sisters, aunts, uncles, all of them can help you get referrals." summer jobs may not pay much or set you on your career path, but they do provide valuable lessons. "being on time, being reliable, these are jobs where you have to have these skills and where you can demonstrate that you

have them." employers we spoke with said a key to motivating teen employees - provide a lot of feedback - and often. and if a day off is needed, encourage them to ask well in advance so you can schedule a replacement. spying and cyber-attacks are on the agenda as president obama and the president of china meet today and tomorrow for a critical summit. the two presidents will be in an informal setting as they connect at an estate in california. the chinese president, xi jinping, hopes to reach a significant agreement with president obama on cyber security, as well as reimage the countries as two equal superpowers. according to forbes, trade between the two nations reached a record half- trillion dollars last year. the national security agency may be secretly snooping into calls made with verizon phones.

reports say the agency is collecting records from calls between the u.s. and foreign locations to protect against terrorist threats. the court order was issued a week after the boston bombings. the obama administration says the "secret" order only involves "meta-data," such as a telephone number or length of a call, but not content. critics say it violates privacy. the fbi and microsoft managed to stop a banking hack attack. a microsoft blog says more than $500 million was stolen from bank accounts worldwide. the banks included jp morgan, citigroup and wells fargo. in the first-time effort between law enforcers and the tech company, officials seized computer servers used in the scheme. it's been a downward spiral for turkey's stock market this week, fueled by political unrest. the country's prime minister returns to turkey today after a trip abroad. protests have raged for a week in istanbul after the government announced plans

to demolish a park. analysts say demonstrations are expected to continue as protestors continue to challenge the leadership of turkey's prime minister. it could spur an even larger sell-fintocks and pose a threat to the country's credit rating. two bills on student loans failed in senate test votes. the republican bill tying rates to the 10-year treasury note and the democratic measure that would freeze the current rate at 3.4% were both voted down. if a deal doesn't happen in the next three weeks, student loan rates will double to 6.8%. not only is a u.s. senator questioning the buyout of an american pork producer by a chinese company, the sec is looking into possible insider trading. the sec has frozen the assets of a trader based in thailand. he allegedly purchsed thousands of out-of-the-money call options and single stock futures in may. smithfield shares rallied nearly $8 just before shuangui group agreed to buy it. trial is set for november 4th for what is being called the

largest insider trading case ever. mathew martoma, a former portfolio manager at sac capital advisors, is accused of generating $276 million in profits while trading shares of drug companies elan and wyeth. it's alleged he obtained inside information on negative trial results of the companies' alzheimer's drug. the firm's founder, billionaire steven cohen, has paid a record $614 million in the scandal, but he has not been charged. sac reportedly remains open to investors. wells fargo is settling a discrimination suit with housing agencies across the nation. the national fair housing alliance and 13 of its members will get $27 million to settle the complaint. it alleges the bank favored white neighborhoods during bank-owned foreclosures. wells fargo will also pay over $11 million to the u.s. department of housing and urban development. it's a tough week for chrysler. the national highway traffic safety administration wants

chrysler to recall nearly 3 million older jeep models because of a higher rate of fires in rear-end crashes. chrysler is fighting it, saying the cars meet safety standards. "their concern is that the recall goes beyond what would normally be expected of auto companies. they're saying if this recall stands, they could be subject to a variety of recalls for which they're really not at fault." that was alan baum of baum and associates, who adds fighting the government could bring negative attention to chrysler and other car makers. chrysler is going through with a recall of more than 400,000 patriot and compass models from 2010 and 2012 for an airbag fix and seat-belt problems, plus around 200,000 wranglers from 2012 and 2013 to fix transmission fluid leaks. meanwhile, general motors is offering free tune-ups for drivers. this week at its annual shareholders' meeting, the company says it is expanding its loyalty program. drivers of chevrolets, buicks and gmc can get free tuneups for two years.

the company says it's also considering issuing a dividend. major wireless carriers are joining together to spread awareness through the "it can wait" campaign about the dangers of texting while driving. about half of commuters and 43% of teens admit to texting behind the wheel. reggie shaw, a spokesperson for the campaign, experienced first-hand the tragic effects of texting in the driver's seat. "when i was 19 years old, i left my house for work, and on my ride i was sending and reading text messages. while i was texting, i crossed the center line, and i hit another car and in that car were two men, and they were both killed on impact. the message is simple: it can wait." shaw says the summer months are some of the most dangerous on the road, especially for teens.

always a good reminder... retailers made modest gains in may. same-store sales rose 3.2% compared to last year as the rising stock market and home prices spurred on shoppers. costco and limited brands were among the top-performing retailers. analysts expect the postive trend to continue into june. mcdonald's wants to lure in night owls with its new "after midnight" menu. it will offer a few breakfast items, along with its regular menu, until 4 a.m. starting later this month in certain u.s. markets. meanwhile, spirit airlines is trying to woo customers with wine. the low-cost carrier will offer wine by the can for $7. the airline already sells wine in mini-bottles. drama is a reality on the set of two popular soap operas. "all my children" and "one life to live" will go on summer hiatus 11 days early due to wage disputes with the crew. the production

company says it cannot afford traditional broadcast rates, and claims it has met all contract requirements. if the labor issues can be resolved, the studio will begin shooting again on august 12th. still to come, the guys debate whether the stock market is signaling trouble ahead. that's later in traders unplugged. but first, these stocks could be preparing to make some major moves. our next guest reveals the tickers after the break.

market strategists are always on the lookout for stocks that are poised for gains. joining us now, david brown. he's ceo, founder and chief market strategist from sabrient systems. good to have you on the show this morning. - nice to be here, angela.

- you have 3 stocks that you bring us on your list today, starting with jazz pharmaceuticals. this stock is already up more than 50% over the past year. what do you like about this name? - well, the pipeline of drugs that's in the portfolio is very attractive. the analysts that follow the company have been revising upward on a steady week-to-week basis for six months now. we think the stock is still very attractively priced against its revenue potential based on the pipeline of products it has. - capital one financial is also on your list. this is a lender. the stock is up about 19% for the year. - this is a little different way of looking at things. this is against the peer group of major banks, their price-to- growth is very attractive. in other words, we are paying less for a little more growth than we would for a major money-center bank, and so it's strictly based on the numbers, and that's why they fit well into the

portfolio. - the fundamentals look good on your next pack, and it's tesoro corporation. now this company is in the refinery business - that's a hot place to be right now. what do you like in the charts on this stock? - tesoro has a very interesting group of refineries that refine various grades of oil, and therefore they're able to do well in just about any refining environment depending on what kind of oil needs to be processed. so, we like them very much for their flexibility, their steady growth, their strong cash position, and the steady growth in revenues. - that stock held up nicely in yesterday's trading, so that was a good sign, as well. - of course. yesterday was a day for the good guys to show up. - good to have you on the show this morning. thank you, david. - thank you. thanks for having me. still ahead, hear the mixed reviews on netflix coming up in traders unplugged.

and now, from the floor of cme group, traders unplugged, with alan knuckman and andrew keene. good morning, guys. i can see you are revved up. we are going to start with topic #1 right here, right now: government motors - the government is selling off its stake in gm. is there an auto play here? - i think gm is a great story. sometimes in this business we say that your first loss is your best loss, but obviously not in this case. if they get out now, they're still down $10 billion, but it's amazing that the government's almost gotten all their money back. - it's amazing the stock is

hitting 52-week highs and they're still getting out for a loss. how does that make sense? gm is getting added to the s&p 100. the chart looks great. ford, tesla, gm, all look very strong in stocks. on the chart, we have to look and see how the economic data comes out tomorrow, but it looks good. - if you look at the halfway point from the highs in 2000 at $90 to the zero - bankruptcy - $45 is a midpoint. so $45 still has 50% more upside. - all right, topic #2: margin for growth? right now it looks as though those investors have been borrowing for those margins - we are back at pre- crisis levels. does this mark the top of the market, and are we set for another crisis? - i can't believe i'm actually going to agree with alan, because i know what he is going to say already - no, this is not the top of the market. this might be shaking out some of the weak hands, some of the retail customers that are trying to buy on the top, buy on the top- - well mr. bear, what about the margin? - we are down 5% from the highs- - people are borrowing the margin! aren't you scared? - right. they are shaking out

the weak hands right here. we're down 5% from the top; i think we continue to go higher throughout the rest of the year. - the market is a lot bigger than it was in 2007, number one. number 2, interest rates are at all-time record lows. so why not borrow the money for the stocks and get an increased return? so i don't think it's speculation- - the 10-year is actually up like 40% since the lows. - but it's still at the all-time lows. - topic #3: watching netflix - is this stock a buy? - netflix has been doing an interesting stairstep higher. it went from $160 to $200, which targeted a $40 move to $240. now it's trading between $200 and $240, so i am looking for it to go to $280. i would be buying an in-the-money call spread here for june, a $190-$200 call spread for $8. so, i am looking for it to continue with a high- probability play. - stairsteps means going like this very slowly- - up. - it's jumping and that kind of plateauing. spike, plateau; spike, plateau. it has gone up the last three quarters in a row. it's spiked higher $80. - so you're bullish. - i am bullish just because of this - i have been saying this all season long, all year long

- it's going to get bought by the end of the year. 26 million customers. i don't care that their p/e is 540. i am looking to get in at the $205 level with a stop under $190- - the next target is $280 based on that $40 stairstep. - jumps. - you guys are hot today. moving on to that bonus round question: which company trades under the ticker symbol "hawk?" - oh no. - under what? i know it. obviously. - i don't. - harley-davidson. - blackhawk! - she said "hawk" not "hog." - aw... - "hawk." - the kind that flies. and we have to fly out of here for today. thanks for being on the show. first business news continues right after this.

james ramelli of keeneonthemarket.com joins us now, and he has his eyes on luxottica. good to have you on the show this morning. - good to be here. - this is an eyeglass company. they do it all: they sell it, they make it. why do you like this stock? - well, for one, they are not just any eyeglass company, they are the biggest eyewear producer in the entire world. their portfolio of brands has the top brands in the entire world: versace, prada, persol, chanel, armani, ray-ban, oakley. every top brand in the eyewear space is in their portfolio. fundamentally, they are expecting their sales to grow 10% over 2012 this year, and we have seen the stock come in a little bit off of its recent 52-week highs at around $55.70. however, the market has been selling off, and retail has been getting hit a little harder than the rest of the market, so it has kind of been pulling

luxottica down here. - this sounds like a monopoly business. so, of course this stock would go up. it sounds like a sure bet. - right. fundamentally, it looks great. technically, on the chart, the story is a little mixed, but the real thing that i noticed in this stock, and the biggest bullish indicator that we have, is a trade that happened on wednesday, a big block trade. we saw a trader come into the equity options market and sell 10,000 l-u-x june $50 puts for 40¢. now, basically, what this means is, anywhere under $50, this trader is obligated to get long 1 million shares of luxottica. on average, this stock trade 60,000 shares a day, so that's over 15 times the average daily float that they are going to have to come in and buy. - and that could drive the stock higher. good to have you on the show on this friday. thank you. - thank you. it's closing time for us, but we will be open for business monday, and it's going to be a great start to your day as we take you to coffeefest for a real eye-opener! from all of us at first business, have a great friday.

>> the following is a paid presentation forthe wen healthy hair care system, the secret to soft, lustrous, beautiful, shining hair, by celebrity hair stylist chaz dean, brought to you by guthy-renker. what does it take to get your hair this shiny, bouncy, strong, and beautiful? the wen healthy hair care system by chaz dean. >> people ask me all the time: does wen cleansing conditioner really work? i started using wen two years ago.