nose-dive: boeing shares take a hit as 787 concerns return to the runway. in today's cover story, what the healthcare industry doesn't want you to know about lowering your bills. plus, the immigration debate heats up in silicon valley as tech leaders fight for workers from abroad. and, financials on a roll. can citigroup keep up as banks report record earnings? first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's monday, july 15th. i'm angela miles. in today's first look: traders will watch for technical levels in the stock market today after the dow and

s&p 500 had the second best run of the year last week. friday, the dow rallied 3 points and the s&p 5, good enough for record closes. the nasdaq gained 22 points. gold moved up $3 and oil $1.12. at&t is buying leap wireless for $15 a share. at&t is paying cash. and, twinkies go on sale today after being off the market since last year. the new owners plan to put the treats in 110,000 stores versus the previous 50,000, making the treats easier to find - just what we need. we're off and running on this monday morning with joe cusick of options express. good morning, joe. - good morning, angie. - what are you watching for this week? last week we had a record-setting week in the stock market. we have earnings coming out today from citigroup. what's on your agenda?

- you know, as far as citigroup's concerned, we did have wells fargo and jpm, they announced last week. they beat. we're going to keep an eye on that with citi, but citi, the volatility in there has been low - not expecting much. as far as the market's concerned, we're going to keep an eye on the data. specifically we want to watch retail sales this morning. - what will you specifically watch for? last week we had same-store sales numbers coming in from costco and gap that were very favorable. what do you expect? - you know what, we're looking to see if the consumer is still spending. if they are, that's positive. you'll see that the sector that's going to really resonate, if, in fact, they are, is going to be those small- caps, those domestic names, those small-cap names. keep an eye on that, and that's what we're going to be looking at this week. - it was a rough day on friday for boeing, especially for boeing stock in light of the fire on the 787. what do you think is in store for this trade?

- volatility. there's going to be some big moves. volatility is at its highest level that we've seen all year. it's up about 100% year-over-year. so, we're going to see some volatility potentially in boeing. - joe, come back soon. thank you for your thoughts today. - thank you. damage control at boeing: investigations continue into friday's fire on an ethopian airlines 787 dreamliner at london's heathrow airport. no passengers were on board. a separate technical issue was also reported friday for a florida-bound dreamliner, which was re-routed to its takeoff location of manchester, england. investors reacted quickly to the news. shares dropped more than 6% friday before bouncing back above $100. it reignites safety concerns that started back in january when the jet's litium ion batteries overheated, eventually grounding boeing's entire 787 fleet. "wall street is nervous. they see the 787 has had these problems. boeing has gone overboard to assure everybody that these were hiccups, but a pattern has emerged, and i think that's why wall street has really taken this seriously. boeing assured

airlines that the production line was going to move ahead full-steam and if they have to retract that, that's going to be painful indeed." that was joe schwieterman, a professor at depaul university. boeing says on twitter it "is working fully to understand and address this." silcon valley is not giving up the fight for immigration reform. the senate has passed unprecidented legistion that includes stronger border controls and a pathway to citizenship. however, republicans in the house plan to push for their own version, aggressively. in silicon valley, tech companies often hire foreign workers from asia and india. facebook's mark zuckerberg is shelling out his own money to push a bill that allows hiring workers born overseas. "these are highly-talented or at least highly-educated workers, so it would be appropriate to keep them in the u.s. if that's where they want to be. however, it's not that there is a shortage of talented workers, there's plenty of talented workers. it's a

question of costs - they want to keep down their business costs." that was tom foremski of silicon valley watcher. he believes silicon valley is out of touch with the rest of the nation. congress will likely take a shot at healthcare reform with a vote this week. house speaker john boehner is attempting to delay the section of the law requiring nearly all americans to buy health insurance in 2014. about a week ago, the obama administration decided to give an extra year to businesses to ramp up for the new law. speaker boehner believes the same rules should apply to the rest of america. a white house aid says the president's landmark legislation is moving forward as scheduled. in today's cover story, how much you pay for goods and services often varies by who's providing them, where they're located and how much competition there is, and it's as true for healthcare as anything else. what's also true is that not everyone knows they can shop around. possibly the easiest place to find discrepencies in healthcare pricing is among your local pharmacies. in one city, a 30-day supply of the anti-biotic cephalexin ranged from $4 to $15 with the same health insurance.

"so what do you do when you have to get a prescription? i go to nearest walgreens or rite aid. do you price shop? no. i wasn't aware there was a difference." in healthcare, prices vary widely for hospital procedures and the physical therapy that may follow. this spring, the u.s. department of health and human services found in denver, colorado, hospital services to treat heart failure ranged from $21,000 to $46,000, and in jackson, mississippi, from $9,000 to as high as $51,000. - do you think you're becoming a more aware healthcare consumer? "no, i don't think there's much education out there for the consumer." the health and human services department wants to change that. as part of healthcare reform, it's making $87 million available to states to improve health pricing transparency.

groups such as chicago's health and disability advocates say the information is long overdue. "the reasons behind the pricing differentials are something we don't know at this point." one pharmacy chain, rite aid, says a number of factors affect drug pricing, including "cost of a location, utilities, the overhead to operate the pharmacy, and the professional services that the pharmacist provides." still, to many, pricing remains a mystery and has led to a growing profession - specialists who help people navigate the healthcare system. "we provide them with information so they can make informed decisions. we also can be a family representative if family is not able to take care of them." the national association of healthcare advocacy consultants says the profession is in its infancy, with about 200 patient advocates working in the u.s. on average, they charge about

$125 an hour. however, some say be advised, there's no licensing or accreditation for it. after clicking through more than 5,000 irs emails, the inspector general concludes there is "no indication" there was political motivation behind scrutiny of tea party applications for tax exemptions. according to a report, groups connected to "occupy wall street" were also given the same secondary screenings. the documents were released by democrats. congressional republicans call the report misleading. the latest comments out of china are sending a chill through global markets. at a new conference in washington friday, china's finance minister told reporters china is aiming for 7 econonomc growth this year. that is below what the chinese government forecast earlier. economists and traders have become concerned about china's prospects as manufacturing there is slowing down. ups is signaling the u.s. economy may be slowing down. the delivery company is ratcheting down its earnings expectations. ups claims

customers are turning to lower- cost shipping options. analysts say customers tend to go with less expensive options when the economy cools. ups delivers earnings july 23rd. traders will watch for earnings news from citigroup today. analysts are expecting higher profits from citi. it follows solid earnings news from jp morgan and wells fargo. friday, shares of jp morgan rallied before losing steam, despite beating wall street expectations on earnings and revenue. wells fargo reported record earnings due to lower expenses and growth in the bank's lending business. senator elizabeth warren has taken to twitter in her battle to divide traditional banks from investment banking. warren tweets banks should be boring again. warren, along with senator john mccain, wants to bring back a section of the glass steagall act. bankers are coming out against this. they strongly contend the financial collapse of 2008 was not their fault and there is no reason to

restore glass steagall. juli niemann of smith, more and company is on the line with us this morning. good morning. juli, who is too blame? "dervatives, which the banks use, are about s $700 trillion global market. there's no regulation, no supervisory authority. it's the biggest global financial casino going around. we really don't know the size of it because there is not that much reporting going down. in 2007, the giant meltdown of the global financial markets was in large part due to derivatives trading and later took out bear stearns and lehman brothers in 2008. bottom line is, derivatives do have a place in financial markets, but not with banks, because the banks are gambling with insured savings deposits. in other words, you, the taxpayer, are backing up all these financial derivatives so the banks can basically crap shoot." how does that happen exacly? what do banks buy and trade? "the ones they like especially are interest rate contracts, and they also trade a lot in global currencies. they trade a lot in gold, precious metals...

these are the markets they like to speculate in. but the key thing is here they're not playing with the house money, they're playing with insured customer deposits, which are insured by the federal government. you have to separate those two areas." thanks for your insights, juli. "you bet." the u.s. airways and american airlines merger is almost ready to fly. shareholders approved the $11 billion merger, which is one of the final steps in closing the deal to create the world's biggest airline. the new company would be called american airlines, with headquarters in the dallas-fort worth area, nearly 950 planes, and more than 100,000 workers. the merger is expected to be completed by september. franchise fever is spreading abroad. more foreign buyers are investing in small franchises. demand for subway, kfc and 7- eleven, as well as smaller companies, is on the rise, due to increased appetite for american foods. subway restaurants have doubled overseas in the last five years to 200,000, and it's in the

midst of seeking franchises in markets such as bangladesh. radioshack is quieting the buzz about its finances. the electronics retailer says it has $820 million in liquidity and is in talks with banks about strengthening its balance sheet. radioshack says it's focused on "executing its turnaround." its stock is rebounding after taking a dive on rumors of a possible bankruptcy. a steady stream of companies will debut on wall street this week. some of the more notable names include nrg yield, a unit of nrg energy; diamond resorts international, a vacation property owner; and digitgal coupon company retail-me-not. noodles and company has become one of the summer's ipo sucess stories. the casual diner's stock opened around $32 and continues to trade above $40. still to come, saving face: why more bosses are stepping in front of the camera. that's

later on. but first, are longer auto loans causing problems down the road? and, tesla enters the big leagues with a stock market move. first business continues after this.

tesla moves to the nasdaq 100 today as oracle makes tracks for the year new york stock

exchange. last week, tesla raced to a record high of $128. just a short time ago, the stock was trading around $25. but while the share price is speeding up, sales are showing signs of slowing down. second- quarter sales dipped 12%. in the first quarter, tesla impressed wall street by outselling mercedes, bmw and audi. meanwhile, automakers may soon have to meet higher safety standards. several vehicles failed a round of crash tests by the insurance institute for highway safety. the new tests are said to be more challenging and simulate a head-on crash. 2013 models of toyota's rav 4, buick encore, ford escape, hyundai tuscon, kia sportage, and 2014 jeep patriot all got poor rankings in the head-on crash, but had good ratings in other categories. the institute says many carmakers will have to make "significant changes to vehicles in order to pass the test." a record number of car buyers

are taking out longer loans. some are taking as long as 10 years to pay off their cars. greg mcbride of bankrate.com is skyping with us this morning. hi greg, and why are people taking out loans that might last longer than the actual car? - well, a lot of this is because people's budgets are still under pressure, and by stretching out to longer-term loans, they're reducing that payment. it's a very bad habit that consumers have, and in the long run, i think it ends up costing you a lot more money. - what rates are they getting? - the longer-term loans - first of all, auto loan rates are at record lows right now. but, when you stretch that loan term out to longer and longer loans, you're not getting a lower rate. if anything, you're getting a higher rate, because there's a higher risk of default the longer you stretch that loan out. but, the fact of record-low interest rates means that even on those 7-, 8-year auto loans, you're still getting a pretty attractive interest rate. but, it's going to be at least as high, if not higher, than what you would have gotten on a 5-year loan.

- are dealerships passing this along? are dealerships pushing this? - look, the dealership is going to push whatever it takes to get the deal done, and if you've got a perspective buyer sitting in your office whose budget is tight, and you can stretch that loan term out a little bit longer and get that payment down to an affordable level where you can get them qualified and they can buy the car, of course they're going to do it. as a consumer, i think the way you've got to look at this is, you're not doing yourself any favors by dragging it out. if anything, you're just putting yourself in the position where you're going to be upside-down for longer, because the value of that vehicle is going to drop a lot faster than your loan balance. - thank you for the info, greg. - thank you, angie. coming up, why more businesses are focusing on "face time" to find customers. plus, traders are facing a dilemma when it comes to earnings out today from banks. first business continues after this.

in the world of online marketing, video is king. more and more companies are looking for customers by posting short videos on their websites or just on youtube where they can be googled. so, what are the qualities of a killer elevator video pitch? mark goodman knows. he runs the company e- conversation solutions, and you produce these videos all the time. so, should the boss be the person who appears in these videos, even if he or she doesn't think they're very good at communicating? - you know, bill, the whole key to internet video is authenticity, so if you're at all comfortable with being on camera, yes, you should do it yourself. - i see a lot of these videos where the person is being interviewed and isn't talking directly into the camera. why? - i think that's the most natural way to talk to somebody. it captures the essence of a regular conversation. and if you are an uncertain person, you should take that approach. - let me try it, looking into a camera. yeah, i'm uncertain about that. we'll go back to talking to you. all right, so what should be said in these videos?

- the key thing to an elevator pitch is covering three things: first, what problem does your company solve? second, how you solve it? and most importantly, the third one is, what makes your solution different? - is it good to show the product in these videos? if they're only going to be a minute long, there isn't that much time. - i think you can show the product to give a background sense of what your product is, but think about your elevator pitch as that introduction to your sales call. so it's all about you and not your product. - so, authenticity, that's the main thing. don't try to act like somebody else, somebody that you're not. - that's right. - and a lot of people would say, "i'd rather have just a beautiful woman to do the pitching for me. you've had clients that have asked that." - right, and my comment is, if you are going to go out and close that big deal, are you going to send a beautiful woman? so it needs to be a representative of your company. it needs to be somebody who that customer is going to see on future visits. - all right, mark goodman, thanks so much. - thanks, bill. thank you, bill. is it better to buy or to short bank stocks ahead of earnings? a trader chimes in after the break.

citigroup and bank of america are among the next major banks to report in with earnings this week. andrew keene, president of keeneonmarket.com, joins us from cme group for a closer look at the charts. good morning. - good morning, angie. - so we've already heard from j.p. morgan and wells. what do you see for these next two banks? - if you look at it, wells and

j.p. morgan both came out with stellar earnings, but the stocks really didn't participate that much. wells fargo was up about 50¢. it didn't get through it that recent high of $43.20. then j.p. morgan, once again, the stock was only up about 30¢ on friday, couldn't get through that $56 level. it seems like the banks are a little bit tired. it's factored in accordingly. we get earnings from citi today. i'm going to use today's high, and i'm going to short on the closes today, and i'm going to use today's high as my stop. also, j.p. morgan, wells fargo, i think those are both good short set- ups, but on a reward-to-risk set-up. i'm very, very tightly playing these to the short side, using the stops above recent highs. - and here's the dilemma for traders: those bank stocks have had a nice run into earnings, but at the same time, we know that profits are likely to be decent as well. so, you sound like you're really taking into consideration the fact that some of this is already built in. - a lot of it is built in. they had really good earnings, the

two that reported on friday, j.p. morgan and wells fargo. they reported very good earnings. however, it didn't participate that well intraday. yes it rallied, but it didn't rally that much. if you look at citi's chart, citi's actually performing a little bit weaker. it got up to about $53.50 - which is the three-year high - sold off to about $46. on friday, closed right on the $50.50 level, so today should be interesting. i'm going to short it on the close of the day. i'm going to have a stop above the high of the day. i like j.p. morgan and wells fargo better on a reward-to-risk set- up. a very, very tight stop, though. - what about bank of america? there's call buying all the way up to the 15 strike. - yeah, bank of america, when i trade, once again, i always factor in those commissions. bank of america is a much cheaper stock. it doesn't move that much - moves 4¢, 10 in a day. i would rather play the ones that move a lot more. those are wells fargo, with a little bit more volatility, and citigroup. - thank you, andrew. - thank you. that closes out our monday show. coming up next time on first business, how fear of losing your job could be ruining your career. tips to stop worrying and move head at work will be right here tomorrow. from all of us at first business, thank you for watching, and have a good monday!

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