motown hits a high note.... why detroit's bankruptcy is attracting investors.... in today's cover story... will compeition in the discount airline industry give a lift to ticket sales. plus... the ultimate people mover. tesla's ceo is out with a plan that will whisk you around the nation.. and.... low cost vacation could be right around the corner... first business starts now! you're watching first business: financial news, analysis, and today's investment ideas good morning! it's tuesday, august 13th. i'm angela miles. in today's first look: trending now in the market: tech stocks..news out of apple and blackberry

motivated buyers.. making the nasdaq the only major indicies to end the session in the green yesterday gold up $23, oil: 18cents. it could turn in to a not so yummy day for yum brands stock. the company that owns kfc continues to see a decline of sales in china due to a chicken scare allegedly caused by suppliers breakng rules. and the latest data shows.. american workers are up to 10 days of vacattion from 8 -- back in 1993. but they are also getting less paid sick time. lincoln ellis of strategic financial group joins us this morning. good morning lincoln. > >good morning. > >the nasdaq notched higher yesterday. will there be follow through today or will it be a selloff? > >it looks like of the three major markets it's the most perky as we've gone through the august doldrums. technology is still a very growth oriented part of this market and investors are looking for that growth portion of the market at this stage of the game. so that

market itself finds a bid. > >you see reasons for that to rally. what about gold? there's been a rally in that market as well. > >breaking out of a trading range that its been in for the last six months. pushing all kinds of gold and commodity related instruments down, in particular, the gdx---the gold miners now breaking above 1300 for the first time in some while. dragging a lot of those long supressed parts of the market back up with it. > >it's an options expiration week and yet i'm sensing a lot of traders are on vacation this week. > > [laugh not just a lot of traders here in chicago but in new york and as you know most of europe has been on vacation for the last 8 or 9 days so it makes for a very interesting options expiration. somewhat higher levels of volatility and lowered levels of liquidity so you could be pushing around 1685 on the s &p, you could be trading over 1700 on the s &p, or if you got carried away you

could go to 1725 on the upside. > >so a good market for traders but perhaps not so much for investors looking to go long here. what do you think lincoln? > >i think we're probably at the top range of valuations. this morning we're going to get some retail sales numbers. later on in the week we'll get some cpi and ppi numbers. those numbers in itself will give another read on the health of the consumer and its ability to digest the uptick in interest rates which is inevitably with us after september. > >lincoln, thans for starting off our show today. thank you. > >you bet. apple is sending out a "save the date" message to the market. on september 10th the company is expected to unveil its latest generation of smartphones.rumors are already swirling. from i-phone colors to a fingerprint scanner that unlocks the device. eena freed, senior editor at "all things-d" tells us a fingerprint scanner seems a logical step, given

apple's purchase of "authentech" which specializes in small embedded finger scanning capabilities. it's unclear is whether apple will uncover other innovations... "the real question is does apple have a whole new category of devices and there has been a lot of speculation that they might be interested in doing a television or a smartwatch. but we've seen no indication that those things are close to fruition. so those might be things to look for next year versus later this year. " apple shares bounced on the news -- closing at 467 dollars. it also helped lift the nasdaq. shares of blackberry also brought a boost to the tech sector...the stock bounced above $10 in trading monday--on word the struggling smartphone maker is considering its options..."the market right now that the stock is pricing in maybe 11.50. 11.70. if anything, i'd be maybe looking to the downside, maybe buying some cheap puts." "i saw a couple analysts came out yesterday that said $8 target - i think it probably hits down in that $9 range." during the last 5 years.. blackberry shares have fallen almost 90%. in hopes of improving the situation.. the company has formed a special committee that will consider the sale of the company or a joint venture

to accelerate the deployment of the blackberry 10. the phone was supposed to a hot seller but did not catch on as much as anticipated. smartphone research firm idc claims blackberry has less than 3% of global market share. dole food is going private in a deal valued above a billion dollars. ceo david murdock is buying his remaining shares of the produce company for $13.50 a share. it's a sweeter offer than the $12 he proposed in june.the news juiced the stock 5% higher. the deal still needs shareholder and regulatory approval, but is expected to close by the fourth quarter. campbell soup company is in talks to sell off some of its european brands. the proposed sale includes soups and other products sold under a variety of names in belgium, finland, france, germany and sweden. it's the latest in a number of changes to the company since it

hired a new pren ago.ampbell recently bought juice company bolthouse farms and baby food maker plum organics. in our cover story, air travelers seeking ultra-low cost air fares may soon have another option. the private equity firm behind spirit airlines' recent success is in negotiations to buy frontier aiines. the same people who invested in sprit airlines in 2006 and convinced management to drop fare prices but charge numerous ancillary fees, the phoenix- based private equity firm, indigo partners--is about to buy frontier airlines. and expectations are that frontier will get a dose of the same spirit. "i think it'd be fine. i took ryanair. sometimes they get you with fees but it'd be good to have another low cost option." spirit is riding high these days. it just reported a second quarter profit margin of eight- and-a-half percent. more than twice that of its competitors. its stock has nearly tripled since going public two years ago. analysts attribute the success to 76-year old william franke who co-founded indigo partners. "bill franke is a turn-round artist. he did it with america west and spirit and now seems

ready to do it again and put it on a more certain business and financial footing." the business model is not for business travelers. instead, the target is students and middle-income leisure travelers willing to forego comfort and convenience for price, if you can avoid the add-ons. "in the beginning, when you book, it seems cheap. but when you add up everything, it's more than other airlines." but for passengers concerned about airline consolidation--u- s airways and american. continental and united, analysts say an ultra low cost carrier based in denver might be good for business after all. "this is a big story frontier could reshape discount travel in the west."

and it could happen fast-- the deal could be wrapped by next month. downtown detroit is booming in the face of bankruptcy. the motor city's urban areas is on the upswing, as demand for office space picks up. developers are flocking to office rentals that are estimated to be 7 to 25% less than renting space in the suburbs. "it's still malleable. it's still developing and determining what its going to be at the end of the day and with that folks feel that they can come in and actually be part of detroit's revitalization and redevelopment." that was dave blaszkiewicz with the downtown detroit partnership he says the area has at 99% occupancy rate right now. he adds the momentum has created 12 thousand jobs in the past 18 months. the u-s commodities futures trading commission is stepping

up its probe into price-fixing of metals. the agency is asking one metals firm to hand over all of its correspondence with the london metal exchance since 2010. companies that use metal in products, such as coca-cola, have complained of limited output from factories, which drives up prices. the probe is also looking into who's responsible for inventory. lately, the metals industry has seen control shift from warehouse providers to big banks, such as j.p. morgan chase & co. in a check on crops around the world this morning...concerns are "growing." a scorching heatwave is shrinking the production of rice in china. in france--- sunny weather is expected to increase champagne production by 56%...harvest time however is still a couple of months away...back in the u.s.... corn farmers are likely to churn out a bumper crop. the u.s. ag department just reported despite the wet cold spring.. a record 13.8 billion bushels of corn will be harvested. guests staying near disney are on an unwanted sinkhole adventure. residents of summer

bay condo resort in clermont, florida were forced to escape their homes after a sinkhole cut the property in two. 20 guests were at the property.no one was injured but some lost all of their belongings.engineers are still determining the cause and the extent of the damage. the power of the pen is proving profitable...topping the list is e.l james -- the author of the wildly popular shades of grey trilogy earned 95 million. shades of green--- a movie is expected next august. best selling novelist james patterson lands at number two -- with 91 million. and rounding out the top three -- suzanne collins -- the woman behind the hunger games, with 55 million. apparently there's an upturn in money in changing diapers...babysitters are making $12 an hour on average. and according to the boston globe, those wages are rising at a rate, nine-times times faster than inflation.baby sitting wages now top those of fast food workers, health care aids and retail sales clerks.

still to come: fast track. tesla ceo's plan to zip you across the nation in 45 minutes... plus, there's a price break at the gas pump -but will it last? and if facebook executives are selling their shares of the company should you? first business continues -- after this.

tesla's ceo is hyping up his wild ride...elon musk is rolling out his plan for a high- speed transit system dubbed "hyperloop". it's a steel tube that whisks passengers from la to san francisco in 35 minutes. a one-way ticket would cost 20 dollars. musk says he doesn't plan to develop the system himself, because he's already booked up working on space-x and tesla cars.instead, he hopes his initial research will get the wheels turning, so to speak. as summer slips away-- so are prices at the gas pump. triple a reports a gallon of unleaded gasoline tumbled 7 cents during the past week...phil flynn a fox business news contributor and oil trader with price futures group is with us this morning. good morning phil. > >good morning and it's about time. > >it is about time. what's driving down prices? > >a couple of things...you know, all of that refinery maintenance we were talking about all summer about expanding refining capacity, the us has the most refining capacity they probably have had

in over 30 years. that means that we're producing gasoline at a record pace and we have a lot of gasoline so that's driving down prices. now i know there are people in some parts of the country that say hey our gas prices aren't coming down because of regional issues. but in the big picture nationwide they are starting to come down and hopefully this is a sign that they're gonna come down for years to come. > >what about crude? crude has been climbing, there's a lot of growth in china apparently that's driving crude higher. what do you think about that? > >i think that at the end of the day that crude oil is probably overvalued, even with growth from china. i think we've got a lot of buildup in the price of wti. > >are those speculators? > >i think what's overpriced right now when you look at crude oil is the value of the dollar---quantitative easing. what the fed does to the price of oil. and when they talk about tapering i think those prices will start to come back. look at how much oil moved. if you look at the biggest moves in oil, it hasn't been predicated by opec and speculators, it's by

either the federal reserve or the bank of england or the european central bank. > >but phil, those are traders. i smell speculation here. > >well, there's always a speculator, but for every speculator, for every buyer there is a seller on the other side. so that kind of evens it off when it comes to speculators. when you look at what really drives the market, does anybody think that oil would be above $100 a barrel without the federal reserve, and qe, and negative interest rates? i couldn't find one person that would think that. > >what's going on with demand? > >i think demand in the u.s. is falling over the big picture but in the emerging markets, like china, it's starting to go up but not at a big pace. the big picture of the united states has hit peak demand. our demand is gonna start going down year after year. and our production is gonna go up year after year. i think we're gonna be a major oil exporter to the emerging

markets and here in the u.s. we're gonna become a lot more efficient. we're going to drive a lot more natural gas vehicles and electric vehicles in the future and those old gas guzzlers that we used to drive are gonna be a thing of the past. so i think the demand is going lower. > >phil, that was a good promo for tesla. thanks for coming on the show today. thank you for your thoughts, always a pleasure. > >good to be here. coming up.... now that it costs you less to fill up your gas tank.. oh the places you can go...how to snag a late summer deal on a vacation home is right around the corner.. also--why more job hunters hopng to break into the travel industry are hearing.. your hired! we'll be right back.

a vacation website--that offers homes and condos for rent is becoming a go to for place for travelers... jon gray, vice president of home away is skyping with us

this morning.. hello-- what are prices looking like as we get closer to labor day? > >as you come up to holidays you sometimes find some great last minute deals. and on our site homeaway.com you can filter by special offers. and currently we offer over 500 of those on the site so you can get some great last minute deals coming into the labor day holiday. > >what are popular destinations? > >some of the popular destinations for the end of summer are the hamptons, cape cod, ocean city, maryland, southern florida, bethany beach, delaware, and the bay area in san francisco. > >are you changing the way people vacation? > >i think so. we offer some really unique values for groups and families. if you're traveling with a group or family and you're staying in a group of hotel rooms, you're used to things like having to go out and eat at every meal. our site helps people not have to do that by having things like kitchens, things like private swimming pools where groups can

hang out together. also common areas, so once children go to bed you have a place where you can all be together. > >analysts say the stock could jump 25% higher in the next year-- what will be some of the catalysts at your company that could help propel the stock? > >one of the things that is huge in our space is awareness. people are starting to understand that this is a great travel option and people who own second homes are starting to realize that families want to come vacation in private homes and in condos. so as awareness ramps our industry certainly becomes more mainstream. > >what about some of your pricing? you're doing tiered pricing. > >first of all our site is free to use for travelers who are looking for a vacation home. you are just paying an owner directly. you do not pay to use the site. owners who are looking to rent out their

vacation home pay us a fee to list their property with us for the year. and that is something that you mentioned is tiered. those prices start at $349 and range up to $999 for an annual subscription. > >well, much success to you. that's jon gray, vice president of home away. thank you. > >thanks angie. hiring in the travel and tourism sector is making a comeback. the la times reports the industry has recovered 92% of the positions lost during the recession.economist argue most of the jobs are part-time or minimum wage --such as waiters earning a median salary of $22- thousand dollars per year.the travel association defends the hiring surge saying it's helping the middle class- the association cites the hiring of sales people , travel agents and hotel managers who it says earn between $27,000 and $80,000. just ahead is stock market heading for new lows after hitting all time highs.. and, why are facebook exectives selling their shares of the social media company? chart talk is next

i'm going to pass chemistry, and i'll take it from there. i'm going to do what makes me happy. i'm going to work hard. be independent. live large. make the most of every opportunity. i knew i wanted to go to college. but figuring out how to pay for it? i didn't have a clue. the u.s. department of education has over $100 billion. and that's a lot of money. to help students pay for college. and the free application? you mean the fafsa. i did it online. it was easy. i'm never giving up on my goals. i will make a difference. i'm going to find out how to pay for college. i'm going to college.gov.

matt shapiro of mws capital joins us this morning for chart talk. good morning. > >good morning angie. > >facebook's coo, sherly sandberg sold out of her shares, at least $91 million worth. is it time for average investors to follow her lead matt? > >she had a great problem and remember she suffered through the botched ipo of facebook. it traded all down to $17 and she deserved to sell some now that the stock hit about $40. but it

does show you the question on everyone's mind, where is the market going from here and are we over extended? > >exactly. people are getting those portfolio statements in the mail. a lot of smiles because the market has been heading higher. but what do you see in the charts? > >some people are a little nervous. remember the s &p 500 of course up 20% this year. the russell 2000 up 30% over the last 12 months. and with many new highs, especially with growth stocks, people get a little nervous and they think there are signs of an imminent correction. but realize toward the end of the year economic growth is good especially behind these firming interest rates. so just be a little more choosier when you make new investments and look at some of the more beaten down sectors such as the heavy dividends, and the utilities, and some of the fixed income shares. > >matt, what stocks are you eyeing right now? > >i'm looking at stuff that pays about 3-4% such as tobacco

shares, all-american growth like proctor & gamble, ups. stuff that really just hasn't---maybe is down a bit in an earnings report, such as ibm. stuff that hasn't been the explosive phenom stock like tesla. so i'm a little more choosier going into the end of the year. > >thanks for coming on the show matt, as always. > >thanks a lot angie. coming up tomorrow on first business... a punk rocker who shook up the scene in the 80's with sid vicious is on to a new role helping young people become entrepreneurs...it's going to be fun one.. don't miss our show wednesday, until next time... all of us at first business wish you a great day!

>> female announce the following is a paid presentation for murad resurgence, the groundbreaking skin care line that is backed by four good housekeeping seals. millions of women all over the world already trust their skin to murad resurgence. and now, the resurgence line just got better, because for the first time ever we're going to give you our brand-new resurgence firming mask, absolutely free! >> male announcer: the resurgence firming mask just hit the shelves a few months ago and is already a customer favorite. why? because it has the power to soften lines and firm your skin in just 10 minutes. >> female announcer: that's right, 10 minutes. and today, on this program only,