fiscal frenzy: from capitol hill to downtown detroit, the nation's finances are making headlines. in today's cover story, why americans are feeling more attached to work while on vacation. and, mark your calendars. we'll tell you when to expect relief at the pump. plus, why traders are setting up for low expectations from apple's earnings. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's tuesday, july 23rd. i'm angela miles. in today's first look: will today become 24? yesterday, the s&p 500 rallied to its 23rd record close of the year. the dow rallied 2 points, the nasdaq 12, and the s&p 4. gold made major gains, jumping $42,

and oil slipped $1.35. in earnings after hours, online video company netflix topped forecasts, but subscriber numbers were lower that expected. and chip-maker texas instruments beat the street on earnings and revenue. and a southwest airlines landing mishap that closed down laguardia aiport last night is under investigation. the boeing 737's nose gear reportedly collapsed. glenn schultz of performance trust is studying the bond market for us today. good morning glenn, and what's likely to move the market this week? - good morning. the bond market is looking at a couple of things. one of the questions on the bond market's mind is what is higher mortgage rate going to do with respect for the demand for housing and the housing recovery going forward? so monday we had existing home

sales. that was down 1.2% vs. a consensus of 1.5%. but the market really came to realize that the decline in the existing home sales was due to tight supply. this morning we have home prices. the market is going to be looking at the home price data. and then on wednesday we are going to have new home sales data, and so the market is going to be looking at those three data pieces together to make a determination in terms of what higher mortgage rates have done with respect to the demand for housing going forward. - what is the bond market predicting about when the fed will actually begin to taper off on its bond-buying program? - in my estimation, a 2.6 yield on the 10-year treasury note has the market handicapping september tapering at exactly a 50/50 probability. - well investors holding municipal bonds with detroit are getting nervous. what do you see in that market? - right now it just seems to be

a little bit of a non-event for the overall market in terms of driving yields tighter or a flight to quality in investors' minds. the reason i think this is occurring is it's really going to be a very long and drawn-out process. namely, what's going to have to happen is the courts are going to have to sort through the unsecured bondholders' claim, and this is going to pit pensioners against bondholders. and until there's a precedent on how this is going to be allocated in terms of losses between the bondholders and the pensioners, you really can't price that risk in. so, i think what the market is really waiting to see is what is going to be the order of precedence on this? once we have precedence on the books, then the bond market can begin to price exactly what happens in these various different

bankruptcies. - thank you, glenn, and have a good day. - thank you. have a good day too. the historic detroit bankruptcy case goes to court tomorrow. a judge will listen to arguments on whether bankruptcy proceedings should continue or be put on hold. last thursday, detroit's emergency manager kevyn orr filed for chaper 9 bankruptcy for the struggling city. it was the largest filing ever for a u.s. city. but it hit a snag when city workers scrambled friday to file a lawsuit to stop the process. workes are concerned their retirement benefits will be cut. the judge said friday michigan's constitution prohibits the governor from cutting public employee retirement benefits. president obama begins the first round of his fiscal fight with congress tomorrow. he will deliver a speech in galesburg, illinois. the president is expected to outline his economic agenda there and set up for a battle with the republican-dominated congress. white house aides say the president will talk about the nation's progress since the financial crisis hit 5 years

ago, where he wants to lead next, and ways to create a more prosperous middle class. republicans say the president will fail to offer new ideas. as traders await apple's earnings out today, the company is reportedly shifting its screen sizes. according to the wall street journal, apple is testing out larger ipad and iphone screens. second-quarter results roll in after the bell, with analysts expecting earnings to come in flat. investors pay close attention to apple's sales numbers. it's projected the company is selling fewer ipad minis and iphones. also, the tech giant did not unveil a blockbuster product in the quarter. the stock closed slightly higher at $426 ahead of today's annoucement. inside and outside investigators are checking into what lead to the tragic death of a woman who plunged from a roller coaster at six flags in arlington, texas. the company's ceo said on the earnings conference call yesterday, the "texas giant" roller coaster - in this 2007 - photo will remain closed until officials say it's safe. a witness tells abc news the woman was concerned about her seat's safety bar. shares of six flags dropped about a dollar in trading yesterday before

rebounding. the amusement park's net income was down 34% last quarter on unusually cool, wet weather. mcdonald's is warning of a tough year ahead as global and u.s. sales are likely to remain flat. the hamburger giant's second-quarter profits were up 4%, but that did not live up to wall street's expectations. the fast food chain is trying to revamp its menus to keep up with consumer demands for lighter, higher-quality food. mcdonald's was not alone with a second-quarter miss. halliburton's profits dropped 8% on a glut of natural gas in the marketplace. despite that, the oil field services company still beat the street's expectations. toy-maker hasbro also missed the mark with net income falling 16%. swiss banking giant ubs, however, beat expectations with a second-quarter net income of $734 million. and sales of kleenex and huggies overseas, along with cost cuts, led kimberly clark to a 6% gain.

fallout from glaxosmithkline's alleged bribery scandal may mean cheaper drugs. the pharma giant admitted this week that some of its executives have broken laws in china. one has pled guilty. so far, four of its executives were accused of bribery to manipulate drug prices. in a statment, the company revealed executives "appear to have acted outside of our processes and controls, which breaches chinese law." the company said this week that price reductions may result as it reviews its china operations. in a first-of-its-kind case, a high frequency u.s. trader is fined almost a million dollars by the u.k.'s financial conduct authority. michael coscia used an abusive and illegal trading strategy known as "layering" to place thousands of false orders. he made a profit close to $300,000. he was fined around $903,000. gas prices have soared like a fourth of july bottle-rocket. nationwide, the price of a gallon has gone up 20 cents since the holiday. in chicago, regular is now around $4.40 a gallon - premium nearly $4.80. analysts say a chainri from

texas to canada has allowed the inventory to drop sharply from record levels in may. also, oil traders say unrest in egypt has driven up the cost of insuring tankers through the suez canal. "it's the same every year. we're resigned to it. you have to drive, you have to pay, and every summer, the price goes up." "at this point, i just expect it to go up and down for no reason." barring any severe storms in the gulf, analysts say they expect production to pick up and for prices to begin falling in about three weeks. in a never-ending quest to cut costs, united airlines will now adjust the wings on its fleet of aircraft. the company will install angled tips on jet wings to improve aerodynamics. the airline expects to save around $200 million per year on fuel. in today's cover story, the line between work and vacation has now become blurred for most working americans. part of the blame lies with technology,

which has made it too easy to be tethered to our job. for many, the rest of it is the sheer workload or fear of being left out of the loop. just as smart phones, emails and papers from the office follow us home from work, they also follow us on vacation. "i think in this day and age it's one of the biggest challenges we have, separating and taking time off from work." "it's true. i have to check all the time. there's no vacation." a harris interactive survey found 61% of americans plan to work during their vacation this year. that's up from 52% last year. and 34% aren't happy about it, because it also represents fear. "i'm an attorney, and there are a thousand people lined up to do what i do." "you really can't enjoy a vacation if you know you're going to come back to a ton of work, so you do some work so it's 'normal' when you go back." technology bears some of the blame. smartphones make it

incredibly easy to check email. but office cutbacks have also left fewer people to cover for those on vacation. "work has to get done regardless." so how do you balance both? "for myself, i try not to deal with emails until night. you can't help dealing with problems while you're on vacation." "leave your blackberry in the hotel room so you aren't looking at it while you're supposed to be having fun." not everyone sees work encroachment into vacation time as a bad thing. according to the harris survey, 14% said they'd be happy to do work during their vacation. the car leasing craze is back. fortune.com reports as heavy demand drives up prices on used cars, it's creating a larger market of consumers who are leasing. according to analysts, the precentage of people leasing is already 22% this year, and could top 25%. and it's going beyond luxury cars. brands such as hyundai and kia

are attracing consumers who want to lease. 7-up agrees to pay a fine and stop telling consumers they are getting a health boost from drinking its soda. the company had been adding small amounts of vitamin-e to certain drinks and then, according to a lawsuit, deceptively claiming the added anti-oxidants were coming from fruit. 7-up avoided further litigation by working with the health advocacy group center for science in the public interest to settle the matter. he's here! the duchess of cambridge has given birth to a baby boy yesterday. he's a big guy, weighing in at 8 pounds, 6 oz. analysts say the new royal could bring in more than $370 million to the british economy. beyond that, the moment he was born, a flurry of businesses took to twitter with ads and offers celebrating the birth. the child is third in line to the british throne after his grandfather, prince charles, and father, prince william.

it could be an important week for tech news. nokia has teased that it will make a "big" announcment today. some have speculated that it could be tied to a new phablet, the lumia 625. furthermore, google is holding a press event tomorrow. speculation is that a new android phone and nexus tablet will be unveiled. still to come, forget emmy nominations. we turn to the charts to see if investors are tuning into netflix. plus, a look at what it takes to be a star leader in corporate america. first, though, the sector of the financial industry turning into a job magnet. first business continues after this.

this neighborhood sure has changed a lot over the years.

you know there was a time when people like me couldn't live here. i'll never forget being told i wasn't welcome in this neighborhood. well i own this building now, the fair housing act made a difference for someone like me. so i can choose where i want to live, free from discrimination. glad you could make it, right this way... regulators are taking "speedy" action against high-frequency trading firms. powers granted by dodd-frank are being implemented by the commodity futures trading commission. this week, panther energy was hit with a fine for so-called "spoofing," a technique that regulators say manipulates commodities markets. dodd-frank gives regulators power to fine traders for such techniques. it

was the first fine ever of its kind. as the cftc attempts to crack down on market manipulators, technology is allowing firms to get an edge on the trading market, but perhaps not as much as first thought. stephanie hammer, author of "architects of electronic trading," is on set with us this morning. good morning. - morning. - are most large trading firms using the technology that is available? - they certainly are using it. there are firms that are ahead in technology utilization and firms that are playing catch- up. i would say that the smaller, more nimble firms are enjoying an edge in the utilization of technology. paradoxically, the financial crisis acted as a brake on the adoption of new technology, because people were worried about overspending. but now they're reevaluating how they can apply technology and adopt it to solve their business challenges. - so why is it the smaller firms, then? - there's less bureaucracy in smaller firms. - so it's easier.

- it is, and they also depend on technology for a trading edge. - what about social media? how does that play into this? - social media is affecting the industry in a large number of ways. not least is that it is causing us to reevaluate whether we are compliant. but social media, in my book, the focus is on how people are utilizing social media to generate trade signals. certainly there are a lot of firms that have developed algorithms to do just that. - is it working for them? - it is working for them, but people are stressing that social media remains one of many factors that people are using to come up with trade signals. so it's not a determinant in itself, it's a help. - meaning you can't just depend on twitter just because somebody's tweeting all of a sudden a lot about netflix that netflix will lose or gain some money that day. - probably inadvisable. - what about jobs? what's happening there? are they hiring? - what i have found is that a lot of times there's a skill mismatch between what people are studying in school and what some

of the larger firms, for example, are using in terms of programming code. - great to have you on the show. definitely a job area to keep watch of. that's stephanie hammer. good to have you on the show this morning, again. - thank you. coming up, netflix post- earnings: what traders are watching for today. but first, stand-out leadership: why one individual can make a big difference in corporate america. bill moller is in, after the break.

it's easy to complain about your rotten boss. it can seem most bosses, in fact, are mediocre to poor. but a few of us work for truly outstanding bosses - leaders who inspire legions to exceed their goals and transform companies and the world. this is explored in the book "10 virtues of outstanding leaders" by ron green and al gini. both are business ethicists, and you're with the quinlan school of business. so it seems it comes down to two things: ethics and character.

- well, don't pooh-pooh those things off right away. they're fundamental. that is, what do you believe in, what's important to you? and, how do you look at the role of leadership? is it a job that you're aspiring to, or is it a service to others? and i think those two categories are kind of the foundation for any kind of leadership, whether it's in business or politics. - who do you most admire in terms of an examplar of the best principles of leadership? - this is - he just turned 95 this week, so it's important to say this - nelson mandela. but having said that, like abraham lincoln, it's hard to get behind the image and the notion of martyrdom, or the notion of being the patriot there. but even behind all that is a man of integrity. he called the island that he spent 27 years on "the university," where he became a human being. and i think mandela proved the point that he was there to lead other people, and he proved that his first year he was elected president. you know what he said that first year? "i will not run for the presidency again. i will

start this process. all men come, all men go. my time has come, and i too will go." - you think businesspeople can seek inspiration from a man like that? - absolutely. i think there's something really important: ceos - i think these jobs are incredibly important, incredibly difficult, and incredibly taxing. and one of the things i think leadership has to know is it's a limited timeframe. maybe we should begin to look at ceos as "you're here for five, and gone." actually, it's about four-and-a-half to six-and-a- half depending on statistics - but, as a regular turn of the events, like the military. you're only there for a certain period of time, because i think two things happen: one, you run out of creativity very often. two, it's a slippery slope, isn't it? and then one is challenged very often on issues you don't want to be. - so you've got to be selfless - ethics, character, morals. but, is this being taught in the business schools? there are business ethics courses, but i think the kids just check off the boxes... - i think they check it off as well, but i think you still have to put it in front of them, just as we send our children to music school, just as we send our children to day camps.

that's part of the de rigueur aspect of being a human being. and i think we have to put it in their face: look, it's not just about making money. you need to make money, and in fact, making a profit is a moral obligation of a businessperson, but that's not the only reason you're there. - it's important to plant those seeds. you never know what's going to take root and grow. - that's right. - al gini, thanks so much. - thank you. everybody's watching! we're going to get some insights into netflix after earnings. chart talk is next. a deadly disease. i was one of them. after consulting with my doctor, i received effective treatment i needed. my disease was obesity please join the obesity action coalition to acknowledge obesity as a disease visit obesity action dot org to sign an open letter pledging your support together we can make a choice to end obesity now.

here to read the charts on netflix and apple is todd horwitz of average joe options. good morning todd! - good morning, angie. - netflix shares fell about 6% last night on mixed earnings news. what's your take? - they made on the bottom and they missed on the subscriber amount, but the expected range was $37 per share. so, it's fallen well in between that range. i think you're looking at a stock that's up over 500% this year, and it's also up over 20% in the last couple of weeks. so it's no wonder it would have a little bit of selling pressure. but let's see how it plays out the rest of the day. - what would be your buy price on netflix? - i would look to trade it at maybe $235. i'm really not looking to be a long-term owner of this stock. i think this stock has far too much risk for my taste in the long-term, but certainly, as a trader and to make a trade, i would certainly

be willing to make a trade on it. - apple earnings are on tap for today. do you anticipate any major moves? - you know, i would tell you that on apple's earnings, the stock has been in a solid downtrend since it hit $700 last september or october. you know, we've been struggling around. if i were to make a guess, i think it trades $385 again before it starts to go higher here. i would expect to see possibly some earnings trouble in apple for a change. usually they under-promise and over-deliver. i think there might be just a little challenge here. i think we might finally get the big sell-off to the bottom, in which, that case, it could start back up on an uptrend. but i think right now it's in a downtrend, and i'm looking to sell apple at any reasonable resistance level. - thank you for checking the charts, todd. - thanks for having me. that's it for today. coming up wednesday, tips on what to do when a natural disaster arises. from all of us at first business, thank you for watching!

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