fed frenzy. wall street preparers for what will come out of the fomc meeting. in today's cover story, what sectors could be in for a big boost following this week's g8 summit. plus, why homeowners say they are feeling discrimination in the housing market. and, forget fetching coffee - why interns are demanding more from corporate america. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's tuesday, june 18. i'm angela miles. in today's first look: build-up to the fed. traders jumped into the market to buy stocks ahead of today's federal reserve meeting. it did not hurt that homebuilder confidence hit a 7-year high. the dow rallied

110 points, the nasdaq 28 and the s&p 12. gold had a modest loss. oil briefly traded aboave $98 in monday's session. global glances: traders will await information out of g8 this week. next month, president obama will meet with british prime minister david cameron in washington to talk trade. and campbell's soup is buying biscuit-maker kelsen group out of denmark. terms of the deal have not been disclosed. it could turn into an obsession session today. joining me now is tom boylen. he's with performance trust. good to have you on the show today. the market is obsessing over the fed meeting coming up today. what do you see as far as market action in the bonds? - for the last six to eight weeks there has been, as you said, an obsession with what's going on with what the federal reserve is going to do at their fomc meeting in june. this started back in may at a q&a

session where bernanke said, hinted, that there might be some tapering to the bond purchases if the employment report gets better going forward. at the beginning of june, we did have an o.k. employment report, so some of that talk has continued. we've seen some leaks from the wall street journal, and then, most recently, from the financial times, saying that the fed chairman at the fomc meeting, there's statements hinting at the fact that they're going to be tapering their bond purchases from the $85 billion at some point in the future. it's important to remember that this is just from the pedal all the way down to the metal, going from that to possibly just lifting up a little bit. still means that there's monster stimulus coming into the economy. - were you surprised, though, how quickly people traded off that news coming in from the wall street journal, and then the financial times, during the session? that really moved the market. - i think there has been very

little volatility. the move index, which people don't talk about too much, is similar to the vix index. the vix index is the volatility index in the stock market. the move index is a similar index for the bond market. it was at an all-time low at the beginning of may. it was at about 48. as of last week, it got into the mid 80s. so in may, i don't think the market necessarily, from a chain-weighted option volatility index, was expecting much of a move. as these numbers came into the market and some of the rhetoric came into the market, i think it caught people a little bit behind in terms of their hedging. so i think that caused the market to rally and race a little bit to get to a point where people feel like if there is some tapering, they are a little more comfortable with where rates are. - good to have you on the show. thanks tom. - thank you. in today's cover story, several industries are taking a keen interest in the group of eight summit, from banking to oil to steel. analysts say the impact could be huge, depending on

what happens after the leaders of eight powerful nations come together this week. "it's very important when the people at the top send a signal, we want this to happen. that seems to be what you're hearing out of northern ireland." with president barack obama and british prime minister david cameron agreeing to move forward with a trans-atlantic trade agreement, experts say the stage is set for tariffs to be potentially eliminated as soon as a year. "that will make products cheaper for those on both sides of the atlantic, and it will help growth and create jobs." but first, leaders will have to hammer out a tremendous amount of detail in the coming months, such as what to include and not include. "there's some talk the united states would try to exclude financial regulation from the agreement." experts anticipate a trade agreement between the u.s. and europe will reduce costs for many businesses. "one example might be the steel business. you're seeing some steel companies wanting to set up operations in the u.s. because the oil prices are much cheaper in the u.s."

but those prices are facing some pressure, as evidenced by tension between g-8 members over the conflict in syria, with russia supporting the existing regime and the u.s. sending aid to the rebels. "it could boil over easily, and that's why traders are putting a risk premium in there." oil trader phil flynn says the potential for the war to spill into a number of key oil nations pushed oil futures above $98 a barrel monday, despite the election of a more moderate president in iran. "does this mean oil is going to $100 a barrel? at this point, probably not." though the conflict is not even on the host's agenda, and the point of the g-8 is to fire up economies worldwide, analysts expect discussions to center around counterterrorism, arms control, tax avoidance, and u.s. internet surveillance, in addition to trade agreements. two traders are expected to be charged today with allegedly trying to manipulate the libor market. one of the traders used

to work at citigroup. the other was with ubs. libor stands for london interbank offered rate, and is the average interest rate banks in london charge for borrowing for other banks. investigations into libor market manipulation are growing. bloomberg news reports singaporean regulators censured 20 banks last week for attempting to fix interest rate levels. in singapore, it's known as sibor. anti-trust regulators in the european union are reportedly ready to allow the iconic new york stock exchange to be sold. atlanta-based intercontinental exchange, or ice, will pay $8.2 billion in cash and stock for the nyse. the deal was being scrutinized because it will give ice control of the number- two derivatives market in europe. an activist investor is attempting to tie up the smithfield foods deal. starboard value hedge fund has a major stake in smithfield and plans to fight the sale of the u.s. pork producer to chinese company shuanghui. shuangui plans to buy smithfield for $4.7 billion. starboard believes by splitting the company up, smithfield could be worth $7.1

billion. the fund values the deal around $55 versus shuanghui's offer of $34. shares closed monday at $33.08. "i don't think this thing is going any higher than it is right now. you know, when the news came out yesterday morning they were not real convincing about it. there was no compelling reason for shuanghui to not go through with this." that was scott bauer of trading advantage. smithfield once rejected an offer to break up the company. lowe's is swooping in to buy a bankrupt competitor. the home improvement retailer has bought orchard supply hardware stores for $205 million. lowe's will now acquire 60 of orchard's 91 stores, located in california, where the housing market is seeing a strong rebound. the stores will operate independently. orchard's stock got a boost yesterday, jumping 12%.

the supreme court handed down a ruling that creates patent problems for drug companies. the high court ruled that brand- name drug makers can be sued for paying off potential competitiors that have generic verisons. the practice is known as pay-for-delay. the case was centered around a male hormone made by abbvie. stopping copycat drugs from making it onto the market costs consumers and health insureres an estimated $3.5 billion per year. elan's shareholders have spoken. shareholders voted monday in favor of a stock buyback plan. the drug company says the vote overrides a hostile takeover bid from royalty pharma. royalty is offering $6.7 billion after twice raising the offer price. last week, elan put itself up for sale, reportedly because there's interest from other companies. royalty will push to appeal the conditions of the deal in a hearing set for tomorrow. while some americans fear the government is snooping around, businesses are scrambling to add surveilance security. companies are concerned information could be stolen by

competitors in the u.s. and overseas. according to a usa today report, the state of maryland is making an unprecidented move of offering $3 million in tax breaks to cybersecurity start-ups that protect senstive information from hackers. entreprenuer.com predicts the $207 billion cybersecurity industry will show "impressive growth" during the next 5 years. federal authorities raid 7-11 convenience stores as part of a probe into human trafficking, identity theft and money laundering. several store owners and more than a dozen workers from stores across long island and virginia have been arrested. the allegations are that store owners helped smuggle workers in from pakistan. 7-11 says it is cooperating with the investigation. both boeing and airbus are feeling the love in paris. the fierce rivals are showcasing wide-body jets at the show this week. boeing, with its 787 and 777 planes, and airbus with the a-350. both aircraft manufacturers won major pledges from airlines wanting to

purchase the new models. the paris air show is primarily a large commercial event. meanwhile, passengers on american airlines may soon face a tight squeeze. the airline is considering adding more seats on some planes in order to boost revenue. southwest, united, continental, and jetblue, among others, have all made similar moves. it's still up in the air how many extra seats will be installed. american is in the midst of a merger with u.s. airways, expected to be completed this summer. gm is expanding a recall of suvs. the automaker is adding 231,000 sport utility vehicles to the 249,000 already under review for a short circuit board in the driver's door that could spark a fire. the recalls involve the 2006 chevy trail blazer ext and gmc envoy xl, along with 2006- 2007 chevy trailblazer, fs2 gmc

envoy, buick rainier, saab 9-7x and isuzu ascender. your driveway could be making you sick. that's according to mounting research that points to commonly used coal-based sealants. these sealants are often used to beautify driveways and are a human carcinogen. they're used predominantly in the eastern united states, but are now under increased scrutiny across the country. several states and cities have already banned the use. the coal tar industry disagrees with the science, saying there is no definitive proof that tar causes harm. the new "man of steel" is doing some heavy lifting at the box office. the reboot of the superman franchise took in $113 million in domestic ticket sales this past weekend. that's a record, and the biggest opening ever for a june release. not surprisingly, a sequel is reportedly already on the way. still to come, interns are fighting back against corporate america. why the revolt could result in a paycheck. but first, the modern face of discrimination may be all about

geography. bill moller gets into that, after the break.

in our ethnically and racially diverse country, do you suppose that discrimination, specifically in housing, still exists? well, absolutely. this was borne out this month in a national study by the urban institute and the department of housing and urban development. margery turner is senior vice president for program planning and management at the urban institute. margery, tell me, in a nutshell, what does discrimination in terms of housing look like in 2013? - well, what we are finding today is that blacks, hispanics, and asians are told about and shown fewer homes and apartments than they would be if they were white.

- so discrimination in the form of steering couples to certain neighborhoods and limiting their choices. - it's really about limiting their choices. we didn't find a high level of steering to different kinds of neighborhoods. it's really about telling the minority homeseekers, who are well qualified for the homes and apartments they asked about, telling them about fewer opportunities and showing them fewer opportunities. - so, it's not like what we used to know as redlining... - that's correct. we think that some of the more blatant forms of discrimination that were so prevalent in the past, some of those do persist for some kinds of homeseekers, some kinds of housing providers, in some neighborhoods. but when we look at this big national picture, what we are seeing is really a more subtle, hard-to-detect kind of discrimination around how much information the minority gets. - if minorities live in poorer

neighborhoods than whites do, is it necessarily discrimination that put them there, though? - we think now that it's a very complicated tangle of causes that is perpetuating the big differences in neighborhood quality, neighborhood composition that minorities and whites see. in the past, discrimination in the market played a huge role in creating these patterns, and the legacy of the past persists today. but present-day discrimination limits people's choices, increases their costs of search. it can't explain the severity of segregation we still see. - it's important that this information gets out. margery turner from the urban institute, thank you so much. - you're very welcome. coming up, how a labor lawsuit for interns in the film industry could have a ripple effect

throughout the nation. that's next.

it's the revenge of the interns. interns recently won a case against hollywood, alleging they were essentially employees working for free on the film "black swan." interns working for conde nast publications are also filing lawsuits. joining us now, labor attorney paul starkman, who is with pedersen & houpt. good to have you on the show this morning, and are

these latest complaints just the tip of the iceberg? - yes, i think it's part of a larger trend as people go to using unpaid interns more and more. but, i get these questions every summer, right about this time, as people start to bring on their summer interns. - paul, when is an intern an intern? what does the law say? - there's a lot of questions in the law, and that's part of why you're seeing a bunch of these cases come down the pike recently, because the department of labor sets out these regulations that define what a trainee or an intern is, and the courts either follow them or don't. so we are seeing a lot of confusion amongst the courts and employers. - does corporate america have reason to worry? - if they're using unpaid interns and not having any kind of program whereby they get any kind of education or special

training or there's no kind of curriculum as part of the program, then they are taking a risk by bringing on these people as unpaid interns. - are most of these intern abuse lawsuits happening with media companies? - the media uses a lot more interns than most other companies. most manufacturers and general businesses don't have a real need for interns. but, interns in these media companies and publishing companies and pr firms, which is where i see a lot of the questions, those are attractive experiences for students and people looking for these internships. - thank you paul. paul starkman, who is with pedersen & houpt. coming up, final thoughts on the fed meeting today, plus, a stock with star power potential. chart talk is next.

i wanted to be in the military since i was a kid.

i served a total of 16 years. and at 19 years old, that's the first time i ever saw somebody die. coming back, i was raging. i started having pretty horrible nightmares. i started drinking a lot. i guess i never recognized it in myself. it all starts with going to the va. there's a whole community of veterans that just want to help you out. it's for the guys who couldn't come back, you owe it to them to live well. because they're not here with their families.

matt shapiro, president of mws capital, joins us this morning for a look at the charts. good morning to you, and i have to start with the fed. a big meeting happening today. what do you think about the overall market action? what are you expecting? - i think the fed's kind of prepared investors a little bit over the last month. we've had, of course, all the turbulence in the credit markets that we've talked about on the show for a little bit. so i'm hoping they'll give some good signals that kind of calm investors a little bit and help them get to the point where they can accept the reality that qe-3 is going to be tapered off and eventually end. because, of course, the economy is doing much, much better. - and investors are watching netflix. this stock is on a roll, matt. now there's a big

dreamworks deal for netflix. is this a reason to buy the stock? - it just doesn't stop with these phenom stocks, whether it's netflix, whether it's tesla, or the like. and when you think about what the fed is going to be doing, which is rates are going to be going up, actually the momentum is shifting to growth stocks, so investors, even if they think these stocks are a little overheated, there is reality behind them. and we're early in the cycle for these momentum plays, and i think they can go a lot higher, whether it's netflix or whether it's tesla. so investors, strap in, actually, for it to go higher. - good to have you on the show this morning. matt shapiro, president of mws capital. take care, matt. - thanks angie. that's it for now. coming up tomorrow: baby on board: ways pregnant ladies say they are sensing discrimination at the office. from all of us at first business, have a great tuesday.

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