sweeping immigration reform heads to the house. in today's cover story, tech week sparks the next generation of gadgets. plus, is trouble brewing for starbucks stock? and, pet project: doggie daycares are booming despite a "ruff" recession. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's friday, june 28th. i'm angela miles. in our first look, today wraps up the month, the quarter, and the first half of the year. money managers are on a buying spree. the stock market rallied yesterday for a 3rd session in a row, with the dow making a more-than-100-point gain for the 24th time this year. gold lost

more shine, losing $30. oil edged up $1.26. trading action in chicago could pause briefly throughout the morning as traders take a moment to celebrate the blackhawks parade through downtown as they show off the stanely cup. congratulations! the wall street journal reports the white house is compiling a list of candidates to become the next federal reserve chairman when current chair ben bernanke leaves. so far there are no front-runners. and, mortgage rates race higher! the 30-year fixed soared to 4.46% from 3.93% last week, the biggest one-week jump in 26 years. the 15-year is 3.5%. friday is finally here. tim mulholland of china america capital joins us now, and based on comments you've heard from this fedpalooza that's been going on this week, what do you anticipate for the market and interest rates?

- first of all, i think at least the situation got set straight, that the fed is in no way engaging in any tightening. in fact, they haven't even begun to pull back yet, they just announced what the terms and the conditions were. now, having said that, when they do get to that point, i still think it's going to be a fiasco, but i think what we've learned right now is, they're not there yet, and they're not quite sure when they'll be there, and even when they do start, they are only going to add less, and not stop adding, and i think that's what's important for the markets. so, maybe a little bit overdone on the interest-rate side on the sell-off. i think maybe a little bit of the hedging has gotten done already, so i think it's a natural pullback right now, and the market is coming down to the present reality. - what do you see for gold? where is the floor? - you know, it's tough. i think it went a little farther than i thought. i think that halfway back from the move from 2001 to last year's high or the year

before's high i think is somewhere around $1,150, $1,175, but who knows. when these things start cascading, when the selling stops - i think it looks like it's almost about done - but, you know, it's a big shot for gold, and i think it dented a lot of sentiment for gold, and that's probably a time you want to take a look at it. - what do you anticipate for the end of today? this, of course, is the end of the trading month. - we're still up about 13% or so in the year in the s&p, over 13%, despite the sell-off that we had, and the fact that mortgage rates rallied a full percent, bonds backed up, 10- year note yield backed up. so i think that's all well said and done, and i think the market will close- i hate predicting where it's gonna close, but i do think for the second half of the year, we are going to be talking a lot about the cyclical stocks. - thank you, tim. - my pleasure. the biggest overhaul of this country's immigration laws in a generation is on its way to the house, but there it may run into a brick wall if house speaker john boehner has anything to do with it. boehner says the house will not take up and vote on the senate bill. instead, house republicans say

they will come up with their own bill. "immigration reform has to be grounded in real border security. it's what the american people believe, and it's a principle that our majority believes as well." as for the senate, here's what passed in a 68-to-32 vote: $40 billion to be spent over the next decade to bolster border security. that includes 20,000 new border agents and extending a fence 700 miles beyond what currently stands. it also provides a 13-year path to citizenship for the roughly 11 million undocumented immigrants in the u.s. the senate bill did not include a proposal to create an electronic employment verification system for immigrants. macy's will pay a fine for discriminating against immigrant workers. the justice department says the retailer engaged in "unfair practices" when verifying their eligibility to work. macy's will set up a $100,000 fund to compensate workers, pay a $175,000 civil fine, and improve its hiring practices. the united states is cutting off trade benefits with bangladesh. the obama administration will suspend tax breaks for bangladesh exports due to growing concern over labor safety. following a factory

collapse in april that killed over 1,100 workers, trade groups have pushed for action. some officials have argued the suspension will deal an economic blow to the developing nation. the obama administration says the country is not taking steps to afford recognized worker rights. the american held hostage by his own workers in china is free again. chip starnes, co- owner of specialty medical supples, went to china to lay off 30 employees as he moves a manufacturing division to india to lower production costs. employees demanded severance packages and back pay, and barricaded him inside the plant. on thursday morning, they reached an agreement and starnes was set free. the plant will continue to operate with new workers, including some of starnes' captors. in our cover story, the millennial party known as "techweek" has kicked off in chicago. a lot of d-js, after- hours parties, and, during the day, a gathering of high-tech creators hoping to draw attention and, if they show promise, perhaps investment. put an ipad on a roomba and control both from an iphone and you've got a relatively inexpensive robotic camera,

helping real estate brokers, for example, show properties to out-of-town clients. "you can put this robot in an apartment, and it will move around and show you how the apartment looks." it's not in production yet - this model is just the prototype - but it's an example of a mobile phone app developer using existing technologies for a new purpose. this combination treadmill and work station by lifespan is another one. "even if i work out for an hour in the evening, sitting for eight hours undoes that. so this is the perfect solution." it's been on the market 18 months. krause has deals to combine the exercise gear with existing furniture by haworth and steelcase. [robot movin techweek is also about the future. an organziation called "u.s. first" sponsored a competition among students to build robots in hopes of inspiring the next generation of tech designers. "we are not leading the world anymore. our students have

dropped in the world rankings of math and science achievement, and that's an embarrassment for our country." other countries have taken note of techweek. this year, poland sent representatives from five start-ups there to drum up business. two more techweeks follow: one in new york this september, another in los angeles this november. the federal reserve is set to vote next tuesday on a 3-year rule meant to prevent bank blow-ups. it's known as basel 3, and would create an extra layer of protection by ensuring banks have enough cash on hand. under basel 3, finanical firms would hold a form of common-equity capital at 7% of the risk based assets, up from the current 2%. meanwhile, in europe, a new banking rulebook is in the works. a draft of new banking laws would require shareholders and creditors - not the government - to take the fall

if a bank system fails. it's being called a "bail in," where bank assets would be liquified to fill losses. the proposal still requires approval from european parliment. u.s. bank will send out $6.5 million in refunds to members of the military. the consumer financial protection bureau says the bank's dealers' finanical services of lexington, kentucky, targeted service-men and -women and failed to disclose fees attached to car loans. the average refund check will be less than $100. former mf exec jon corzine is being slapped with a $100 million suit from the cftc. corzine and former assistant treasurer edith o'brien are charged with failure to supervise the misuse of customer funds that caused the firm's collapse. corzine's attorneys say he was unaware of the missing money. regulators say funds were misplaced before the firm collapsed. an internal review of the irs made for a tense hearing on capitol hill this week. lawmakers criticized irs acting commissioner danny werfel for an "incomplete review" of the agency. werfel was ordered to complete a 30-day review after news broke the agency targeted

conservative groups seeking tax- exempt status. in the hearing, werfel stressed a need for more time. rep. richard neal (d-ma): "we all need to be outraged. the american people shouldn't be afraid of the irs. we've established that. but i think the simple point is, you would argue you need more time. is that correct?" werfel: "absolutely we need more time. and my hope today and in this report and in every communication i have with the public or the committee is that there's transparency into the process that we're following." werfel disclosed the irs also targeted groups described as "progressive" at the same time the conservative groups were flagged. regulators have shut down fake pharmacy websites accused of selling drugs illegally. more than 1600 websites were shut down in connection with selling prescription drugs illegally. $41 million of drugs were seized by the fda. a cybercrime banner now alerts consumers those websites have been shut down. goodbye junk food: starting next year, the usda is cleaning house when it comes to snacks in schools. high-calorie, high-fat foods sold in vending machines and snack bars will be replaced with fruits, veggies and protein-rich foods. the usda has been striving for several years to fight childhood

obesity, which affects a third of u.s. kids today. despite the flood of sponsors leaving paula deen, her book is climbing the charts. "paula deen's new testament" comes out this fall but is already number six on amazon's best-seller list. it's a rare piece of good news for the food network star, whose empire began to collapse after she was accused of using racial slurs. home depot and target are the latest sponsors to drop deen. ceo salaries are back to pre- recession levels. the economic policy institute reports ceo pay was 202 times more than the average american worker last year. average ceo compensation was $14.1 million in 2012. still, executive pay is nowhere near tech-boom levels. queen elizabeth is receiving a boost in royal pay. record profits from real estate are translating into a 5% raise for "her majesty" next year. the crown estate owns property from offices in london to offshore wind farms to city streets where apple stores are located. nissan is bringing jobs to the music city. the auto-maker is

adding 900 jobs at its nashville plant. the hiring will help meet higher demand for its crossover suv, the nissan rogue. by 2015, nissan says it aims to manufacture the majority of its products sold in north america in the u.s. ipos this week are rising in spite of a volatile market. home depot spinoff hd supply opened below range at $17 and rose to close unchanged. i.t. company cdw's debut opened at $17 a share, rose to $18 and closed unchanged. and tremor video opened at $10, below its range, and closed unchanged. today brings the debut of noodles and company. the restaurant chain is expected to price at $15-$17 per share. still to come, is starbucks losing steam? traders unplugged goes hyper on the stock. that's later on. but first, never underestimate how much pet owners are willing

to spend on their furry friends. a look at the booming trend of doggie daycare, next.

even when the economy was on a down swing, there was one industry that continued to breed success right at the height of the recession. ky sisson reports on a happy

"tail"... there are no rough days here at the pet play house in reno, nevada, where dogs have their own luxury suites, 24-hour care, air conditioning, and some arts & crafts for when their owners are out of town. "when people go on vacation, they will pay more for their dogs to stay in a nice hotel than they will for themselves to stay in a nice hotel." addie jaramillo and her family opened up their new 8,300- square-foot doggie day care and boarding facility in 2009, a time when most business were closing shop. "we do feel that the dog-care industry is recession-proof, because we started our new facility right when the economy was really bad, but we did the research and we knew that are waiting lists were like in our original facility." and while the dogs do their business outside, business inside is booming. "now we are pretty full in this facility. we fill up every

weekend, sometimes a month-and- a-half in advance. we didn't quite realize that we would fill up to the capacity that we have." the pet grooming and boarding industry made $4.16 billion in sales last year, and as consumers continue to be more attached to their pets, they'll be more likely to purchase higher-value services. "our types of customers care a lot about their dogs. it's one of their children, and they are willing to pay for their dog to come to a facility that is clean and nice." start-up costs for a doggie day care facility can be a minimal investment, says jaramillo, but it's really up to the owner how lavish they want to make it for their (four-legged) customers. "people can just rent a warehouse and put dogs in it. what we wanted to do was have a very luxury feel. it's expensive to make it a really good facility." another doggie day care that opened and expanded during the recession is "the urban hound." owner merril upson wanted to get into the business knowing how people paid top-dollar for their pets. "this has been a great success. our business plan is double what we thought it would be in the first two years. also, we

have close to 2,000 customers now." "they don't do well home alone, so i bring them to doggie day camp as a way of protecting my furniture." reporting in reno, nevada, for first business news, i'm ky sisson. a report from the american pet products association predicts the pet services industry will grow 9.1% in 2013 to $4.5 billion. coming up, we want to know the real deal with apple and its stock slip. find out next, in traders unplugged.

and now, here to share their trading techniques, alan knuckman and andrew keene join us from the floor of cme group for traders unplugged! good morning, and topic number 1: ican, ican't? which have been the best investments for billionaire hedge fund manager carl ican? - i really love everything he does. i love how he attacks distressed companies and he buys deep-in-the-money calls, which is a strategy that i very much like to do myself. and what he's done with hlf and netflix and chesapeake, he is fantastic. it's a great way to attack the markets. - actually, this is one we can't argue about. obviously he's done very, very well on netflix - the stock's gone from $85 to almost $240 - it has recently pulled back a little bit - and then herbalife, not so good. the stock was down a couple percent yesterday- - he bought it when it was at its lowest, though.

- he's actually in those options, so his cost is a little bit higher. so this one hasn't panned out yet, but this one could be the mother of all short squeezes, so keep an eye on herbalife. - topic number 2: star-bucks! the company just raised prices on coffee. is this stock a buy or a sell? - i would say holding pattern right here. i would rather buy it on a pullback than buy it right here. their p/e is pretty high, around 32. they are growing in china. we've seen this slowdown in china, and nike actually just reported earnings yesterday. nike did rally, and they have a huge chinese exposure as well, so i want to see it pull back a little bit, then i want to get long. - you know, $62, that was the breakout from the previous highs, but this stock has come a long way. remember, this was an $8 stock just in 2008. they have huge pricing power. they can raise prices, and the actual price of a wholesale coffee has gone from $3 down to $1.20. so they are in great, great shape once again. - topic number 3: big little problem - apple traded under $400 this week. is this the beginning of the end of that hot stock? - what's funny is they have to pay $100 million back to customers who let their kids by apps.

- $100 million. - yeah, that's nothing. - the stock moves a dollar, its $1 billion in market cap. - that's why it's called a little problem. do you read the title there? it's a little problem. but they have bigger problems with the share price. see if it can make a double bottom, but it did bounce to that $440 level, which was the halfway point, and now it's back down. - a little problem? the s&p has rallied 60 handles in the last three days, and apple has been down every single day. i called it on the show after we talked about it: $360 will be the low in apple. i don't know if it gets there. $385 had a huge tail, on the date list to break through that. i think apple does have a date with $360- - look for a double bottom here. i think the worst might be over. - i disagree. - time for your bonus round question now: what company trades under ticker symbol w-o- o-f? - woof? - w-o-o-f. uh... i don't know this, but i've seen it going across the tape. it's probably like a biotech... - guys, it stands for vca antech, it's the leading provider of pet healthcare services. - easy for you to say. - i was waiting for you to say "woof." thanks guys, first business continues right after this.

dan deming of stutland equities joins us now from our brand-new location at cboe, the chicago board options exchange. good morning, you look great. - thanks angie. it's nice to be down here on the floor in front of the camera. - and what about the stock market? we have now rallied three sessions in a row. what signals are you seeing? - yeah, angie, we have. the market has actually bounced back a lot more significantly than i actually expected. but the one thing i want to point out is that the momentum here is fading a little bit, and we are running into that 50-day moving average in the s&p 500 right around 1620. also i want to look at the volume levels. the volume levels in this rally have not been sufficient to really support what i would consider a bottom and maybe a breakout to the high side. so i think right now you're seeing this market

hit the 50-day moving average and probably run into some resistance here, maybe a little bit more selling over the next day or so. - what do you think about the banking sector? we have been watching the banks, they had been moving up and down along with the market action. - they sure have, angie. initially, the reaction was pretty negative with the news about the tapering of the liquidity provisions. but right now, if you look at the xlf, it's only down about 2% from its high, so, trading around 19.57 as we come in this morning. strength relative to the rest of the market, you have to say the xlf is holding up quite well. - thank you, dan, and have a terrific weekend. - thanks, angie, you too. it's the end of the show for us. join us next week for a look at new tax laws set to take effect july 1st, and what it means for your wallet. from all of us at first business, enjoy your weekend!

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