frugal or fancy free- wall street awaits a new round of retail earnings exposing consumer spending trends. in today's cover story....a mileage maneuver by ford has drivers skeptical of fuel efficiency. . plus... going behind the scenes of house flipping-- does it leave investors floored. and...from the boardroom to the pages of a glossy magazine...the ceo that's sporting a hollywood style. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas good morning!it's monday, august 19th.i'm angela miles. in today's first look: a new

week starts following the worst trading week of the year for the dow. selling persisted friday with the major indicies all giving up ground.gold rallied 12 dollars. oil finishedup 41 cents. violence in egypt caused several major companies to shut down businesses there.among them: gm, royal dutch shell and toyota.and deere and company is recalling 7,000 tractors--due to a faulty rollover system. no injuries have been reported but the company is warning owners to stop using the tractors immediately. the tractors were sold nationwide from february to july. michael gurka of chicago based spectrum asset management is on the show with us this monday morning. happy monday to you michael. > >thank you. > >we have a lot coming from the fed this week. fed minutes and the big jackson hole meeting with the fed heads. will that hold the market in a pattern today? a holding pattern. > >i don't think it will. actually i think that the anticipation that this week's meeting and a lot of the

vernacular is going to add to volatility in the market. and of course we're looking at 10 year treasury yields in particular as they breached 280 and showed us at least that though the growth of the country might be stalling on main street the markets believe that something's alive because we've started to see downward pressure all of last week. and it was reciprocated of course by the way the stocks traded along with that. > >those treasuries are at a high we've not seen since 2011. can this persist? > >i think we will see more of that but to the point that the fulcrum has already been has already been surpassed. so that point means that i think that 3% might be out of the cards for now, pullbacks might be short but this could be the new pendulum for where the market starts to swing at these higher rates. remember historically these are still very low rates

but coming from where we were it was one heck of a percentage turnaround. > >what do you predict will happen with the dollar this week? > >i think the dollar will continue to remain weak. we watched the euro and the british pound in particular really gain for most of all of last week and i think that the strength that we're seeing in european currencies as a whole have a lot more room to the upside and the fed has a bias on a weaker dollar. and that's not just because of export trade it just seems as though the fed has always had that within the last decade or so. that's one of the reasons why i would not look for this to stop. > >michael thank you for spending some time with us this morning. have a good trading day. > >thank you. in our cover story, ford motor company is lowering mileage estimates for it's c-max hybrid crossover vehicles.that's after

the environmental protection agency found the actual fuel economy was less than what ford reported to the government and advertized to consumers. ford touted that its c-max hybrid-only model got 47 miles per gallon in the city.in actual tests by the e-p-a, it was 40, in the city. "it's a big deal. people buy these cars expecting better mileage." ford will reimburse buyers 550- dollars and those who leased the cars 325-dollars. but it may also cost ford credibility. "it's kind of a terrible error. it's fake advertising." the epa says "ford did not do anything illegal" and that "this is not an enforcement matter." in fact, under epa rules, ford was allowed to use mileage estimates from a similar car, ford's fusion hybrid because its engine, transmission and weight are the same as the c- max. so what's different? for one thing, aerodynamics. "the epa needs to test more cars. it only audits 15%. it'll force more scrutiny."

ford called it "an industrywide issue with hybrid vehicles." ford is the latest automaker embarassed for using mileage numbers from one car for another. kia and hyundai were caught, last year. who caught them? consumers, who didn't realize who verifies the estimated mileage 85% of the time. "automakers do. the epa just spot checks. and people buy that? less so, now." hyundai and kia offered pre paid fuel cards for compensation oil traders are closely monitoring events in egypt.... friday-- crude oil futures topped $108 dollars per barrel --then, pulled back to the 107 dollar range. oil prices have been moving at a rapid pace with political unrest in egypt rattling the

market. also on friday-- trader attentions turned to a storm system in the gulf of mexico. "hurricane season is far from over and some of the storms can happen late in the season. having said that hurricane season has not lived up to some of the more dire predictions we heard earlier in the year." that was phil flynn-- an oil trader and fox business news contributor. in a check of prices at the gas pump-- the average for a gallon of unleaded it $3.54 down 3 cents from last week. president obama hits the road this week starting in upstate new york. he'll take a bus tour through buffalo, syracuse and binghamton to discuss higher education.after new york, he hits scranton,pennsylvania. on the agenda: the importance of college education, and proposals to reduce the

cost.critics say the rallies are making it harder to come to a fiscal deal with congress. the speeches come before an upcoming debate over the federal budget and the debt ceiling. boeing is said to be secretly testing a new way to build jets.the seattle times reports-- next month engineers will test advanced automation in building the soon to be launched 777x.automation could drastically reduce production time. friday-- the wall street journal reported.. boeing traced an electrical wiring problem in 3 dreamliners to a supplier.the issue was noticed during maintenance on 787's owned by japaneser airline ana holdings.a boeing official tells reporters it does not impact the jets performance. retailers are using new methods to revive sluggish back-to- school sales.the national retail federation says families will spend an average of $635, down from a high of $689 last year.to boost the number, stores are offering non-traditional sales.walmart held its first "back to class cyber monday" last week, offering super-cheap

discounts on supplies.kohl's is offering scratch-off game pieces.and retailers such as costco are already stocking shelves with halloween gear. it's heavy week of retail earnings with target, jcpenney, home depot and best buy all reporting.. last week, cautious comments from walmart and macy's rocked the stocks.macy's says instead of buying summer clothes-- shoppers are spending money on big ticket items including cars and items to spruce up their homes. macy's missed on earnings for the first time in more than 6 years.investors punished macy's and walmart by selling the stocks. well we definitely seems like we've got a little bit more of a herd mentality going on we definitly noticed it up in the officethat when stocks either beat or miss it seems like they are really moving." friday-- nordstrom shares fell more than $2 after the retailer forecasted a bleak sales outlook. investors are holding out hope for dell. shares of the company held it together friday,

following disappointing earnings that revealed revenue dropped 72% in the second quarter. shares rose 12 cents to close above 13 dollars. friday a judge rejected a request from investor carl icahn.the billionaire investor had placed a bid to accelerate a lawsuit claiming shareholders are taking a hit due to an "undervalued" bid by founder michael dell to take the company private. as lobster prices hit new lows, shrimp prices are nearing record highs.a disease is killing off shrimp in thailand, vietnam and china: which are all major exporters. the "acute shortage"is resulting in prices rising 56% from last year, to 6 dollars a pound.sources say it may lead to a boost in business for shrimpers in the gulf coast. intercontinental exchange and new york stock exchange are set to merge.the securities and exchange commission approved the merger on friday. the $10.6 billion dollar is deal expected to be completed in september.ice/nyse euronext would be the third-largest

exchange group in the world, behind hong kong exchanges and clearing, and cme group.ice and nyse plan to spin off euronext after the merge. yahoo's marissa mayer is mixing business with glamour. the ceo -- dressed in full couture -- stepped in front of the camera for vogue's september issue. in a lengthy interview, mayer says that she's having the time of her life running yahoo. she also says she believes the company will thrive by going back to its roots and providing users with their daily fix of internet basics such as email and news. aol is slashing half of its staff working on its patch news website.the company said it would consolidate or close some patch sites to cut costs and partner with other media in some locations.layoffs of 500 of the one thousand patch employees began on friday.that's about nine percent of aol's total staff.ceo tim armstrong started the hyper-local news arm to compete against newspapers. job hunters are using extreme stunts to get hired according

to careerbuilder.here are just a few: a candidate back - flipped into the interview - another wore a clown suit-one creative job seeker-- sent a potential employer his shoe-- in attempt to "get a foot in the door". career builder advises being bold is not always better-- if you feel you must use a stunt.. do something that showcases your skills that fit the job. still to come: alleviating savings stress. how to get your retirment savings back on track. plus.... what one trader says is the "best looking chart out there" and, house flippers are making a comebback in some cities-- how they are turning a profit with fixer uppers. that's next after this in the know message.

construction on apartments helped give a boost to a solid foundation in housing in july. construction increased by 26% on apartment buildings.overall, new projects increased by 6%.permits for future homes also ticked up -- a sign that the positive momentum will continue. meanwhile, freddie mac says mortgage rates are holding steady...the 30-year fixed hovers near 4.4%, while the 15- year is still sticking around 3.44%. a flipping frenzy is happening in the housing market. people who made big money fixing up homes then quickly sell them are back with a vengeance. ky sisson takes us to california where he joins the star of hgtv's flip or flop.tarek el moussa is a real estate investor gone celebrity. as the star of hgtv's hit show

"flip or flop," he started flipping homes in 2010 when more and more people were seeing an open door to some serious profit. "saw a lot of people making a lot of money flipping houses. one day me and my wife talked and made the decision, let's flip a house and see if we can make it happen. sold a house, made a profit, and never looked back." el moussa is on track to flip more than 50 houses this year, more than double what his team did last year. as "flip or flop" goes into its second season with more than ##### million viewers, the house flipping frenzy has people snapping up available real estate. despite this new popularity, el mosussa is still hammering the competition. "there's a lot more investors out there, a lot less houses

available, so it's a lot more competitive that it was a few years ago." realty trac reports 136,184 single family home flips nationwide during the first half of 2013--a 19% increase over 2012 and a 74% increase from 2011.with investors remodeling these homes from the inside out, construction companies are feeling the craze. "my business hasn't had any downtime as a result of these investors wanting to flip homes." isreal battres is owner of battres construction and works exclusively with house flippers. "2008, they were doing very minor stuff, 7 day flips. now they're doing more extensive work. market has changed, now it's taking 30-45 days" economists say that this frenzy can only be a positive driving force in a recovering housing market. but the downside is that house flippers-often regarded as sharks with their cash offers and high bids, are making it difficult for first- time buyers to find an affordable place to live. others point to an upgrade in the housing stock. "at the end of the day we take bad ugly houses, make them beautiful, sell them to great families, and increase property values in neighborhoods, and it stimulates the economy."

"they're taking that beat up house and making it market ready and putting it back on the market that part is positive." as more and more beginning investors jump into the market as prices continue to rise, el moussa says there is one rookie mistake that is crucial to avoid. "the most important part of flipping houses is getting it at the right price. just because the house is a dump, doesn't mean it's a good flip." reporting in orange county for first business news, i'm ky sisson. they make flipping house like easy on tv.. but in reality.. a financial adivisor warns it takes a pile of cash for the mortgage, insurance and utilities if the home does not sell quickly. coming up....a trader offers his constructive trading views as home depot prepares to report earnings... but first...savings slump. how to play catch up if you're one of the many americans struggling to put money away for retirement.. that's after the break.

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despite improvements in the economy americans may not be setting more money aside for retirement.greg mcbride of bankrate.com is here with more.good morning greg and what's the latest on american nest eggs? > >only 18% of americans are actually saving more for retirement this year than they were last year. now, that's the same reading that we had a year ago. on the other hand we do see some real trouble spots. those between the ages of 50 and 64 had a higher propensity than all other age groups to be saving less for retirement this year than last year. and upple middle income households--- households with incomes between 50-75,000 dollars a year---also had a higher propensity than all other income brackets to be saving less this year than they were last year. > >greg, what's behind this? > >well, specifically when it comes to retirement savings, i think this is a reflection of the fact that for so many households their incomes haven't gone up. they're flat. especially when you adjust for inflation. and that's the same reason why we have an economy

that's stuck in first gear. people just don't have a lot of extra money laying around where they can either ramp up spending or ramp up their retirement savings relative to what they put away last year. > >you offer some simple ways to put money aside....but will improvements in the job market help? > >well, job growth is one thing but the problem we're having right now is that we're not adding high paying jobs in this economy. not only is the pace of job growth pretty uninspiring---it's ok but it's nothing to write home about--- but more than half of the jobs that were added last month were in retail and food and dining establishments. those are not high paying jobs. so i think what you really need to see is wage growth. now, where that comes from is an entirely different matter but at the point where we see wage growth that's when people are gonna have extra money to spend and extra money to save. > >how are people feeling about their jobs? > >in particular, we did notice the highest income households are feeling less secure about their jobs. we saw it across

all age groups but it was particularly pronounced among the highest income households and that really comes on the heels of what was a pretty disappointing employment report for the month of july. > >hopefully the next one will be better.thanks as always greg. > >thanks angie. still ahead-- how one trader is preparing to cash in on upcoming earnings from best buy and home depot...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.

we are pounding out at chart talk this morning with andrew keene, president of keeneonthemarket.com. good morning. home depot's earnings are coming up this week? will you put a play on? > >i want to put a play on but i want to put a play on after earnings.we've seen retail last week and we've seen retail pretty weak. we had weak numbers out of nordstrom but more importantly we had weak numbers out of walmart (wmt). stock sold off about $2 down to $74. home depot's chart looks very very similar. got up to 81 1/2. seeing some selling pressure. if we look back to june though it looks like buyers came in at 75. if it breaks 75, 72 1/2 is a very key level. so i want to get long on home depot, but i want to wait until after earnings, let it digest, maybe consolidate a little bit. i don't like to be buying stocks as the stock market looks like its rolling over. > >what about best buy? this is

a another biggie this week. > >best buy---the chart looks great. it's one of the best charts out there. on friday, with the stock market down, best buy was actually up for the majority of the day. the business model, i don't like. i don't like the fact that they are basically a showroom for amazon. however, the chart looks very, very strong. we have support at $29. so once again i want to wait until after earnings. i am in some long upside calls---september 36 calls---they're very cheap options. so with best buy we've seen mixed reviews. we've seen kohls (kss) rally. we saw dillards rally and we saw selloffs in walmart and jwn. so i wanna wait for best buy at $29. > >as a trader, what do you need to hear out of best buy to change your view on the business model and what's been happening with the reorganization? > >they're just like hewlett- packard. they're seen as they worst stock in the dow--

companies i thought were gonna go out of business---look at groupon. groupon reported good earnings. expected to come in at about 12 cents. 18 cents is the whisper number so i wanted to look at revenues last week. cisco was weak on revenues. if revenues come in a beat, then i think the stock will rally. > >thank you andrew for coming on the show and have a good trading day. > >thank you. that's our show for today.. coming up this week--- find out if "frequent fliers" are better off with or without the merger of american airlines and u.s. air... plus--confused about your 401k? we will take out the guess work later this week. until then.. from all of us at first business.. thank you for watching and have a good monday!

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