prosecution promises... attorney general eric holder warns he's not done going after wall street for the financial crisis of '08. in today's cover story......why rents and housing prices are on the up and up. plus.... the stocks that are giving hedge fund managers a headache. and... it played , we saw....now find out which summer flick conquered the box office.... first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning!it's thursday, august 22nd. i'm angela miles. in today's first look: the fed head reunion. members of the federal reserve meet today in jacksonhole wyoming.the two topics that might come up: who will be the

next fed chair when ben bernanke leaves.when to end the bond buying program and yesterday, the stock market sold off heavily at the end of the session after the fed minutes offered few clues on when the stimulus program would end.gold and oil also fell. hewlett packard had a bumpy night. the stock fell around 4% after meeting earnings expectations.but revenue fell shy and there's a management shake up. and wells fargo reportedly is cutting 23-hundred mortgage production jobs. as federal reserve presidents gather in jackson hole wyoming today, standing by for us is todd horwitz of average joe options. tell me what's going on with the latest fed fretting in the market. > >good morning angie. you know the fed is involved and i think that they're overinvolved. i think yesterday's minutes showed us that they really don't know what they're gonna do yet either and i think the real problem is they're in a position where they have no way out. so taper or no taper---the market is being tapered by the bond market as you can see because

interest rates are going higher on their own without the help of the fed even though the fed is trying to push them lower. the fed's got a problem and i hope that this week they can solve it in jackson hole. > >we did see the dow move below 15,000. was that any kind of buy signal there? > >i don't think we have any buy signals coming nearby. i think the key level you want to watch is 1640 in the s &p. the low yesterday was 1639--39. i think that's the level you want to watch if we're gonna get any buying. but i do believe we're right at the start of a potential correction here and i look for those numbers to eventually get violated. look at 1660 as the top side of resistance in the s &p as we're probably going to work our way lower. > >you're big time into options. so there's been a lot of call buying in apple options ahead of this new iphone that's coming out september 10th. what do you think about this way out

of the money call buyers? > >i think they're really looking for trouble. when you go way out of the money you're paying way too much premium. i think it's hard for them to get in and what will probably happen is apple will probably come out with this new product and it will probably have a big pop but all those out of the money options will be so overpriced that they'll probably go down in value with apple going up higher. > >thank you for your comments today. > >thank you. wall street is still on the hook for the financial crisis of 2008. attorney general eric holder tells the wall street journal. even though it's been 5 years since the financial meltdown. prosecutions are coming--- soon. in holder's words to the journal : anybody who's inflicted damage on our financial markets should not be of the belief that they are out of the woods. it's not clear if the charges will be civil or criminal, but it could happen this fall. critics have accused the government of failing to go after wall street for its hand in the largest financial downturn since the great depression. betting against the stock market is causing major headaches for well known hedge fund managers.after crunching the numbers-- the wall street journal concludes...hedge funds

are facing the worst losses in a decade by shorting the market.hedge fund manager make money when the stock drops. in one example the analysis shows the russell 3000 index contained 100 of the most heavily shorted stocks-- those stocks are "up" by an average of 33%. also, tesla is a stock that popular among shorts-- it's up more than 300% this year. but it's not over. .the russell 3000 for instance has been driftng lower during the past several sessions. regulators are still working to unravel a goldman sachs computer glitch that caused bad trades in the options market.reports say the trades came from goldman's internal system and showed up at several trading exchanges. it affected about 400,000 options contracts involving stocks such as johnson and johnson and kellogg. the trades may be erased but reportedly could cost goldman sachs as much as hundred million dollars. professor james angel at georgetown university suggest the trading glitch mess could take a while to cleanup.

"for one thing i've heard that 20 thousand trades got cancelled, now this causes enormus problems downstream. because you think 'wow, i just bought this option at this great, cheap price. and then they tell you the next morning 'sorry you didn't' so there are alot of people out there trying to figure out their position. what trades were good...what trades were bad." a goldman spokesman tells bloomberg: the exchanges are working to resove the issue and the potential loss is not material to the financial condition of the firm. the prime minister of japan has unusual plan to improve the country's economy: he wants more moms in the workforce. an estimated 2/3rds of japanese women leave their jobs after having a baby.the la times reports-- prime minister abe wants to change that and says the power of women is essential to the economy.among the change-- more child care centers and financial incentives to firm that hire women.currently, employers in japan are said to discourage working ladies who have babies. european leaders are giving

mixed views regarding greece's financial future. eurozone leaders are divided on whether greece requires a third bailout. some officials believe greece's previous two bailouts still leave the country strapped for cash. german chancellor angela merkel says it's too soon to tell. the european central bank, international monetary fund and european commission will review greece's progress this fall. amazon is reportedly on a warehouses building spree. bloomberg news says amazon is spending nearly $14 billion dollars on 50 new warehouse fulfillment centers for its products. earlier the tech giant said it has plans to add 5 thousand new workers.. in our cover story, many parts of finding where to live are going up.for one, homes sales spiked in july from a year ago.for another, rents are going up.and there now appears to be consensus among policymakers at the federal reserve to begin tapering the bond-buying program that's held interest rates in check.

the national association of realtors says home sales since july of last year are up more than 17%.and according to online residential real estate site, trulia, home prices in that time have gone up an average of 7%.---partly because developers have not been able to match the spike in demand. "new construction is a long lead-time thing. you can't have instant demand met by instant housing. you have to get lending, then land, then build. it takes a little while." further fueling the home sales spike, rents have increased in the past year 3.9% nationwide. five and a half percent in boston, one of the least affordable rental markets in the country along with new york, miami, l-a and san francisco. developers seeking to capitalize on the hot rental market and potential for condo conversions are building for both. "what we're seeing are rentals that are'condoliscious,' my word for nice finishes that are easy to make the switch over." in seattle, the rental market's

so hot developers will have built 12-thousand new rental units by the end of the year. in portland, oregon, 4,000 by year's end. details of the fed's july meeting seemed to reinforce support for tapering the bond buying program that's kept interest rates low. those rates could begin to creep upward and may prompt another spike soon. "we're going into the downside but there will be a spike after labor day, which will taper quickly towards the holidays." another measure of housing market---the speed at which home sales are moving along.last month, 45-percent of homes were on the market for less than a month. turning an eye to earnings now. tol brothers reported third quarter profits yesterday that topped expecations. the home builder called the housing rebound real and says

its in the early stages. the company says $650-thousand is the average selling price for its homes. target warns-- its profits are likely to take a hit as consumers use caution when spending at its store.the second quarter profit howver came in ahead of expectations. staples missed on earnings and lowered guidance on lower sales of its office supples. president obama hits the road with a bus tour to new york today. he'll be talking about "shaking up" the way students pay for college and offering ideas to make higher education more affordable for the middle class. experts on higher eduction question "how" he could reshape financial aid for college without the cooperation of congress. americans are stashing away record amounts of cash for college. parents put away an average of 5 thousand dollars in 20-12, up 58% from 2007. however, many say they are still far from their long term savings goal, as college costs continue to rise. last year, tuition at public universities rose 4.8%, to an average of more than 8 thousand dollars.to

combat with costs, many parents are pushing for students to take online courses, or live at home instead of on campus. mark zuckerberg is looking to give the gift of internet to the entire planet. the head of facebook posted on his own facebook page this week, that he is teaming with corporate america to expand internet access to the world. currently 2.7 billion people are online.--- whiile it's a large crowd, its only one third of the world's population. the nfl is said to be shopping silicon valley. potentially for a new home for its sunday ticket game package. all things d reports.. nfl reps have been meeting "informally" with leaders of top tech companies including google which own online video site youtube. currently, directv owns rights to nfl sunday ticket through the end of 2014. the satellite tv giant reportedly pays $1 billion dollars the rights every year. ups is delivering a blow to workers. the company will remove employees' spouses from insurance plans.

it applies only to spouses who are able to get health coverage elsewhere.the company told employees that rising health care costs and new ones associated with obamacare made it difficult to provide certain benefits to employees at an affordable cost. the obama administration did not respond to the decision.advocates of health care reform contend costs are minimal compared to overall medical insurance inflation. ask and you may receive. career builder discovered that 49% of job hunters do 'not' negotiate over salary, and take the first offer. while 45% of employers "are" willing to negotiate. which means nearly half of all new hires could earn more money--- if they asked. still to come: the little film that could. how "persistance" paid off for this weeks box office winner. plus.....are you paying too much for your car? why geography

may be to blame... and, go big --or go home....the sprawling cities that top travel plans "this" labor day weekend. prepare to get packing -- after the break.

your car may be costing more than you think...bankrate dot com, surprised drivers with a ranking of the most and least expensive states to own a car. residents of georgia pay the most, followed by california, wyoming, rhode island and nevada. despite ranging gas and repair costs bankrate analyst claes bell says the biggest factor in the study, was how often people drive. "just as important into your cost of gas is how much you drive. i don't think people put that together. many people say that the cost of gas is killing them...and definitly those fluctations can hurt or help you. but alot of it comes down to how much driving you build into your daily routine." oregon, alaska, south dakota, montana and indiana all ranked among the least expensive places to own cars.

triple a reports americans are set to travel like it's 2006. but just where is everyone going? jeanenne tornatore of orbitz is here this morning to tell us. hello and what are the top 10 destinations? > >our number one booked destination for three consecutive years is las vegas. which is where i'm coming to you from today---the venetian-- and it's the perfect example here of why they're such a hotspot. they're hosting earth, wind, and fire. they have wolfgang puck cooking classes. all these events going on over labor day weekend. and you're going to see in our lists why these big cities top our list. we have new york city, chicago, cancun, san francisco, san diego, atlanta, boston, new orleans, honolulu---all of these big city and a couple of beach destinations in there. but all of these big events are really what's driving people to these hot city destinations. > >what about airline ticket prices? what are some great last minute deals? > >overall, according to orbitz bookings, airfares on average for labor day weekend are up slightly---about 5% compared to labor day weekend 2012. hotel rates up about 4%. if you want

to find a good airfare over this long weekend you probably want to try and avoid traveling on the offpeak days. avoiding friday and sunday which are going to be the busiest for air travel. also look at booking as a package. combining your airfare with your hotel. that's really how you're going to offset some of those higher standalone airfare costs. > >is there any reason to worry about hurricanes right now? it's been a quiet hurricane season so far. > >it has been and it's primetime for people to take advantage of big deals in the caribbean and south florida frankly because it is hurricane season. that's why the deals are out there. if you're traveling to those destinations you really just need to keep in mind finding out what your hotel's hurricane policy is. will they give you a refund? will they offer you credit for a future stay? and know if the airlines are really flrxible in waiving their cancellation fees so that's not something travelers should worry too much about if booking to those

destinations. > >jeanenne, always a pleasure. thank you. > >my pleasure. thanks. coming up.... as summer comes to a close-- the film studios that rocked the box office. and later on...are savvy shoppers turning the dollar tree into a growth stock? that's still to come in chart talk.

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[male announce an ied wounded mike in afghanistan. i don't remember all of the blast... was over 500 pounds of explosives. [male announce their physical injuries have healed. the traumatic brain injuries - tbis - haven't. the way i describe it is you're just afraid. am i going to start forgetting things? [male announce tbi is as serious as any battlefield injury. you're just not the guy you used to be. [male announce thankfully va has made important advancements in tbi seeing it, treating it, understanding it. and they're here to help veterans affected by it. i can see that what we're doing here at the polytrauma unit is to move from survivability to thrive-ability. [male announce if you think you or a veteran you know has sustained a brain injury, get screened. the new film the butler served up a win at the box office over the weekend. getting the film on the silver screen-- is also

fascinating story.our movie guy eric childress is here. > >eric, i went to see this movie over the weekend... > >what did you think? > >i thought it was terrific but the first thing i noticed is i'm seeing producer name after producer name---production company after production company. it took a lot to get this onto the silver screen. > >it seems like everyone involved putting the money together for this thing wanted to get their own credit on screen. > >they nickled and dimed but they did it. > >absolutely. > >it's an indie. > >it's an indie film. it was a film that sort of started in 2011. laura ziskin was a champion of the film. she unfortunately passed away so the filmmaker lee daniels tried to find other people to fund the film and evidently he found a lot of people and they all want a little piece of the pie obviously. > >so he did a great job but i have to tell you---i'm gonna give you a little warning when

go see this. in the first couple of scenes when you see oprah, she has such an it factor, she steals the scene. but then as they start to wardrobe her and it goes a little deeper into the film, you get lost in her character. > >they make her less oprah. > >she's a lot less oprah later. moving on, here's what happened at the box office this weekend...coming up this weekend there's a couple of good films that could actually rival the butler. there actually is. one is a smaller release called the world's end. this is actually one of my favorite films not just of the summer but of the year. these are the guys who did shawn of the dead and hot fuzz---two very popular cult films. this is a really fun, really unique film. sort of a reunion film that also deals with robots and unique take on alcohol. but it is a comedy so people should flock to this one. > >so coming out this weekend is... > >the mortal instruments: city of bones is a film that sony is hoping will be the next hunger games or twilight. tracking doesn't suggest that it's going to be that. it's going to be more like this year's beautiful creatures. maybe not quite as big a bomb as that one. > >you're next is a horror film that premiered in 2011 at the toronto film festival. lions

gate's been sitting on it for a few years and i think it could actually challenge the butler this weekend at the box office. horror has had a very successful year and i think it's going to be a race. > >how are things shaping up for the summer? > >it's been a very good summer. we're about to break the record for the best summer ever suprisingly enough. there were a lot of films that had a healthy profit this year. > >name a couple. > >obviously right at the top we have ironman 2--was the big winner this summer, despicable me 2, and fast and the furious 6---both big hits for universal. number four on the list---monsters university was a big hit for disney. number 5--- the conjuring. again one of my favorite films of the summer. a very small budgeted film, but again, horror really tapped into something this year. it was a really successful film and made over $100 million at the box office. so it was a good year. > >thank you eric. we'll see you next week. > >thank you. just ahead--- find out what's in store for the dollar tree stock as the retailer reports earnings... chart talk is next.

matt cavanaugh of cmz trading joins us for chart talk. good morning. and he's here to talk about dollar tree. matt this is one of my favorite stores. i love to shop at dollar tree. > >yeah, it's been a great segment. dollar tree, not the biggest of the discount stores but definitely one of the best having compound annual growth approaching 12% over the last 5 years so a lot of people are really gonna be watching this to see what happens. > >the stock is near its 52 week high. earnings are coming out today, so what would be your play? > > i like this stock, i like this segment. i think that it plays well to an american consumer that's stretched---a middle class that's kind of hurting and all these additional part time jobs that have been created. but i do think the stock is priced pretty fairly. i think the big key to watch here is gonna be we've seen some of these retailers

like macy's, walmart, target give us weak guidance for the second half so is that gonna carry over to these discount retailers or are they actually gonna benefit to it? so i think expectations aren't really that high but one to watch and if this stock sells off it's definitely a buying opportunity. > >you know one of the most popular products at dollar tree? it's bleach. they can't keep it on the shelves. it's amazing. > >no kidding. > >it comes in and it's gone. matt, good to have you on the show. > >thank you. we are out of time for today.coming up tomorrow-- the best way to wrap up the work week. join us for a new round of traders unplugged friday. and, it's last call as we take "your" questions for traders unplugged. tell us what you want the traders to debate on labor day by sending an email to comments at first business news.com.feel free to include a bonus round question. from all of us at first business.. thank you for watching and enjoy your day.

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