it's game back on for zynga as a top exec from microsoft takes over. in today's cover story, previewing what is to come this jobs friday. is hiring showing some sparkle as unemployment fades? plus, find out what it takes to become the next millionaire in the world of apps. and, why it's getting more expensive for one age group to get behind the wheel. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's tuesday, july 2nd. i'm angela miles. in today's first look: stocks fly in the first trading day of july! the dow soared well above 100 points early in the session, then pulled back to add 65 for the day. the nasdaq

is up 31, the s&p rose by 9, gold jumped $29 and oil gained $1.46 on decent manufacturing data in the u.s. and unrest in egypt. zynga zipped higher during the regular trading session and after the close. the social media gaming company confirmed after the bell founder mark pincus is stepping down, and don mattrick, who ran microsoft's xbox business, is stepping in to up zynga's game. hyatt hotel workers have a deal. it ends a worldwide boycott and a contract dispute that has lasted for years over wages. and the first bitcoin atm in europe will be open for online transactions today. bitcoins are viewed as a way to reduce dependence on paper money. lincoln ellis of strategic financial group gets the ball rolling for us on this tuesday morning. good morning, lincoln. - good morning. - stocks are off to a better start this week. what do you expect for stocks, and for bonds as well? - well, it'll be an interesting week this week. obviously we

saw a bit of strength on monday on mutual fund and 401 (k) buying, followed by a bit of an afternoon sell-off, and i think that that's probably where we will sit until we get the ball rolling on the jobs numbers, which start on wednesday, and then obviously we get the employment report on friday. that will drive the direction for stocks coming into this third quarter. bonds, i think we sit here. we sit around the 2.50 level on 10 and 3.50 in the 30. - oil had a spike yesterday on the turmoil in egypt. do you anticipate that will continue into today? - it's interesting, oil spiked higher, but the egyptian stock market also climbed higher. there seems to be some interest in the military stepping in and really negotiating or brokering a bit of peace there in a very chaotic situation. but we do see that oil is highly sensitive and could spike higher - precipitously higher - if something breaks in egypt. - traders seemed to like the gold bounce yesterday. gold had a horrible quarter, and all of a sudden we're finding some buyers. what do you see in gold? - i think gold, at these

levels, really begins to look like a fundamentally interesting buy, simply on the price of production and its relationship to the gold and gold miners. so, you'll see some nibbling here, and we'll probably create a base before it moves higher. we expect it to move back up through the $1,400 level before year-end. - lincoln, good to have you on. thank you. - you bet. its a painful week for students with government-backed loans: student loan rates have officially doubled. interest rates on some loans rose dramatically, from 3.4% to 6.8%. the rates will not apply to existing loans. congress was not able to reach a deal before the july 1st deadline. democrats wanted to extend the 3.4% rate for another year, while republicans were aiming for a longer-term solution. we turned the microphone to you for reaction. "i think it's ridiculous that the government subsidizes this.

we should let the free market handle it. that's the best way to solve the problem." "i think it's going to be hard to figure out how to pay for school if i don't have the money to pay for it." "i'm sure there are a lot of people who'll be discouraged and not able to go to school because they don't have the funds to do so." some lawmakers are pushing for congress to revert back to a 3.4% rate after congress gets back from recess july 8th. wicked weather is cutting a tragic path accross the u.s. in arizona, wildfires claimed the lives of 19 elite firefighters, while in new york, flash flooding hampered ground transportation and caused flight delays. bernie rayno of accuweather is skyping in this morning. good morning, and is there any relief in the forecast for today? - unfortunately no. in both instances we are going to continue to see the near-record heat across the southwest. meanwhile, showers and

thunderstorms willng, t only around new york city, but all the way from the southeast up into the northern parts of new england. the good news is the heat will begin to relax later this week across the west, and in the east, the showers and thunderstorms will become a little less numerous. - bernie, thank you for the update. - my pleasure. in between fireworks on the fourth and a long weekend for most americans, the bureau of labor statistics jobs report for june will sneak its way into the holiday this friday. our cover story finds a lot of people expecting all the excitement of a single sparkler, if that much. there are still plenty of people out of work. "i'm a factory worker. i've worked in factories all my life. i'm from ohio." - are you concerned that when you graduate, there may not be a job? "yes, that's why i'm majoring in computer science. it's always needed." so it's no surpise that many are anticipating the june jobs

report that comes out friday, two weeks after fed chairmen ben bernanke hinted that if the jobs picture improves, government stimulus known as qe- 3 may be scaled back. "they still see their target at 6%. there are indications that we're getting closer to that point." "given what chairman bernanke said a few weeks ago, people will be watching this closely." the manufacturing sector reported more activity in june. consumer spending is up on long-lasting factory goods. "it means people are buying cars, and that's good for manufacturing, good for the economy. it means growth likely isn't going to end after the government slows down on stimulus." the institute for supply management's index showed a rebound in june from more companies ordering raw materials and other supplies. production was up, along with new orders. but it doesn't mean more people were hired in manufacturing. in fact, according to the ism report, just the opposite happened. "when you look at the fact that it contracted for the first time since 2009, that makes the employment picture more cloudy. but we should be careful not to read too much of this into thef"

a mixed manufacturing picture exists overseas as well as in the u.s. china's manufacturing sector weakened in june, partly due to a drop in orders from the u.s. and europe. but manufacturing in japan last month picked up for the first time in nearly two years. bay area residents are scrambling with public transportation workers on strike. the bart system makes 400,000 trips per day, and many of those idled commuters are being forced to drive, which is clogging area highways and bridges. transit workers said at midnight sunday they would

be striking because their demands of 15% pay increases were rejected. this is the first bart strike in 16 years. the european commission suspects 13 large banks colluded in swaps trading. the comission is investigating the banks, such as citigroup and jp morgan chase. the regulatory agency alleges the investment firms worked together to block attempts by trading exchanges such as cme group that wanted transparent prices on credit default swaps. often the contracts are insurance payments for when a company or country skips out on its debt. citigroup is hit with a massive fine. the bank will pay $968

million to fannie mae over bad mortgage loans. it will apply to over 3.5 million loans from 2000 to 2012 that fannie purchased from the bank. the fine will resolve potential losses from the loans. early this year, bank of america paid a similar fine. citigroup reports earnings july 15th. an elaborate money-smuggling scheme has ended with the arrest of a vatican accountant. it's the lastest corruption scandal to hit the vatican. according to reports, the monsignor, named "don 500" by the italian media, was plotting to carry 20 million euros from a swiss bank account to italy. the plan was he would go unnoticed because of his rank as a vatican official. the monsignor says he was only trying to help his friends.

onyx pharmaceuticals is hanging up a "for sale" sign. shares of the cancer drug company shot up more than 50% monday on word the company rejected a bid from amgen. amgen offered $120 per share, $30 more than stock was priced friday at the close. onyx is now for sale and willing to entertain other offers. the news helped to lift serveral other companies with cancer treatments. ariad pharmaceuticals, epizyme and isis pharmaceuticals all jumped more than 6%. media giant tribune company will become a lot larger. the company plans to buy an additional 19 local television stations, boosting its number to 42 stations in 16 different markets. the $2.7 billion deal is expected to close by the end of the year. it will make tribune one of the largest tv station owners in the country. consider it music to investors' ears: legendary piano company steinway will be taken private. kohlberg and company will pay

$438 million, with investors receiving $35 per share in the deal. sales for the company have fallen over the last several years. kohlberg says the acquisition will help the piano-maker expand globally. the deal is expected to be finalized toward the end of the third quarter. airline fees soared above $1.5 billion, and that's in just the first quarter of this year. according to the department of transportation, checked bag fees brought in $800 million, and fees to change a ticket raked in another $685 million in the first 3 months of 2013. all told, the fees helped the industry eek out a rare profit this quarter. still to come, reckless charges: why insurance costs are skyrocketing in some states. that's later on. but first, entrepreneurs are getting creative when it comes to the latest and greatest in app development. a look at what's trending now is after the break.

th a deadly disease. i was one of them. i'm a nurse and i knew how damaging the disease was to my life. nothing i tried seemed to work. my brother died. from complications of the exact same preventable disease and i knew i had to do something to get healthy. my disease was obesity and after consulting with my doctor, i received the effective treatment i needed. obesity is a second leading cause of preventable death in the united states. but it's a treatable disease, and there's effective treatment options available. now is time to get help. please join the obesity action coalition and acknowledge obesity as a disease for acceptance, for access to all effective treatments, including diet and exercise, pharmacotherapy and weight-loss surgery for obese adults with at least one obesity related comorbid condition. visit obesity action dot org and sign an open letter pledging your support and for more information about how to talk to your doctor about your weight

and your treatment options. together we can make a choice to end obesity now. a public service from the obesity action coalition. rumors of apple's new smart watch have traders eyeing the stock. apple shares ticked up 3% yesterday on word the company has filed for a patent in japan for its iwatch. apple has not commented on the reports, which say the filing for the trademark was made june 3rd. the stock rallied monday. some traders are also positioning early in the stock ahead of earnings july 23rd.

google's recent billion-dollar acquisition of waze, a traffic app, is motivating entrepreneurs to create one-of-a-kind apps that could make them millions. jackie keenan shows what is takes to be a success in the app world. "don't you agree?" "i agree." agreeing on buttons or no buttons on one of the pages of their app is just one of the decisions happening today at mamabear, one of the hottest apps on the market today, according to cnbc. mamabear helps parents monitor their children's activities, creating alerts to when they make new friends on facebook, post inappropriate pictures or go somewhere you specifically told them not to go. robyn spoto helped launch mamabear last august and works tirelessly on marketing the app to parents. she says doing the media rounds has meant everything to their nascent success. "i really like that kind of marketing because there's a

level of credibility that comes with it when a news source says here's something you should try." mamabear started with just a couple of downloads a day, but now has nearly 700, adding up to 40,000 registered parents hovering over their kids digitally. she says selling a utility people need is part of the forumla for app success. "know your target audience and really speak to them, and then you can lower the cost of obtaining your customer." knowing that target is everything if you're wanting to jump onto the app scene. with more than 700,000 apps living in the apple app store and about the same for android, competition is cluttered. but the most recent deal by google sent every software engineer running for their storyboards. when the search giant purchased waze, a popular traffic app, for one billion dollars, it set new records and solidified how vital apps are to smartphone users. but mamabear doesn't pay

much attention to deals like the one with waze. founder steve macdonald is self-funding his app project with just a few other investors, and says billion-dollar deals aren't something he thinks about. "i don't really give it a second thought. you develop your product, you work through the process, you hope someone likes it, and if something like that happens, great. if not, we'll keep building our product." mamabear isn't charging for their product yet because they're waiting for technology to catch up to their vision. "downloads are driven by reviews. if you're going to charge something, it better work, and it better be very dependable." until then, the mamabear team will continue to update things like gps technology and buttons. for first business news, i'm jackie keenan. apps are big business. apple alone has 3 billion downloads per day from its app store, totaling more than $200 million. coming up, tips on how to reduce insurance costs for young drivers behind the wheel. that's after the break.

questions are arising about why it costs so much more to buy car insurance for teen drivers. joining us via skype this morning, laura adams of insurance quotes.dom. good morning, laura. - good morning. - these numbers are staggering. take a look at this. in the state of arkansas alone, premiums are up 116%. utah, wyoming, alabama, and idaho not that far behind. why are these prices going up so rapidly?

- the cost to add a teen driver to an existing policy is going to vary depending on where you live. teens are typically the riskiest and the most expensive drivers to insure, but what we're finding is from state to state, it's going to vary considerably. as you mentioned, a high of 116% increase to add a teen driver in arkansas. - that's- that's very high... - it is. so, that's more than doubling the cost of your insurance to add a teen driver. the age of the teen driver is also a big factor. what we found is that across the nation, the increase is 84%. so it's approaching doubling the cost of your policy. but when you break that down between male and female drivers, and even drivers age 16 up to age 19, a lot of variance there. as the teens age, the cost to add them to the policy decreases. so at least that's the good news. - the costs are lower in hawaii, but that has a lot to do with they don't consider gender or age. but still, north carolina, new york, massachusetts, montana - those

are still decent increases. we would love to have you give us some tips on how to reduce the cost. should a parent put the teen on a policy or buy another, separate policy? - parents are going to come out ahead if they add the teen to their policy. and there are certainly ways to save money. the type of car that you allow the teen to drive plays a big role in it. you want the teen to drive an older car if possible, because it may not cost as much to insure. but you also want them to have a safe car, with safety features like anti-lock brakes and airbags. another good tip is to make sure that the student is doing a good job in school. good student discounts are available for teens from 16 all the way up to age 24. so if they can maintain a b average in high school or in college, that can entitle the parents to a very large discount. in some cases, it can be as much as 25%. - that would help. thank you, laura. - thank you. still to come, a trader has a lightbulb moment with a small- cap stock. chart talk is next.

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sometimes you have to think small when going for big profits. joining us now is matt shapiro, president of mws capital. good morning. you are here to talk about a company called littelfuse. this is the little company that could. - yeah. based in illinois, but it is the global leader, really, in circuit protection devices - fuses, of course - related to all things - automotive, industry, electronics. they go into oil rigs, they go into your car. they are everywhere, and this is the world leader, even though it's a smaller company. but, you know, we've been talking about smaller, mid-size companies, and they're doing great. just hit an all-time high yesterday: $77. it has no debt, a reasonable p/e of about 16, income is rising, and they just completed an acquisition to further penetrate the entire electronics suite of cars. - the stock has gone from $47 to $77, so what would be your next price target on the stock? - right now i think a lot of managers are looking for these small- and mid-cap companies, and if they have a market p/e like this one does, they are going to have an earnings report coming in later in the month, and, you know, it could definitely jump depending on what their business prospects are. we see just a little bit of traction worldwide. i am really optimistic that the stock can go a lot higher. - could happen. littelfuse lifted its guidance the last time around. - that's right. so look for

these kind of revisions and these smaller- and medium-sized companies going up. remember, they give you a little spark in your portfolio. - thank you. that's a wrap for today. coming up tomorrow, first busines is doubling down with two fan favorites. the guys will be here for traders unplugged. find out if they are happy campers owning rv stocks. and our movie guy rides in on a white horse with a look at how hollywood hopes to lasso in audiences. don't miss it. from all of us at first business, thank you for watching. we'll see you tomorrow!

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