the fed chair contender who moved the market.. in today's cover story... a man from the land down under makes a hop to chicago to march against mcdonald's.plus -- are college students being tricked into credit cards... and if you haven't booked your trip to go home for the holidays-- you are in for surprise! first business starts now! you're watching first business: financial news, analysis, and today's investment ideas good morning! it's tuesday, september 17th. i'm angela miles. in today's first look: a near record rally.the s&p 500 came within 5 points of a new all time high. stocks soared after fed chair contender larry summers pulled his name from the race. the nasdaq meanwhile was held down by apple which

fell 3%. gold was unchanged. oil sold off more than 2 dollars. regulators are set to fine j.p. morgan $700 million dollars over the london whale trading loss last year. triple aaa reports.. the nation has gone 1,000 days of gas prices above $3.00 per gallon. and at our last check 13 people are dead following yestrday's shooting spree in dc. >glen schultz of performance trust joins us on the show now and glenn has the bond market priced in fed tapering? > > absolutely, the bond market is priced in fed tapering. i think in the might of the bond market, tapering is all but certain. so the question really becomes how much or what degree does tapering will occur? right now people are probably pricing in something between a 15 to $20 billion reduction in the fed's purchase program. right now, the federal reserve is purchasing about $80 billion a

month in assets. so we're really looking at something like a 25% reduction in the tapering program in terms of volume. so we will see what the said that the sabin the rates setting meetings ended on wednesday. > yester day, we had a big rally in the market as larry summers withdrew his name from contention as the next fed chair. do you expect there will be fallout today in the market? > > i think it would be a little bit of fallout in the market. although, here is where the draw for nomination for the chair is not all that surprising given the problems that he had at harvard. so, it would of been an uphill battle for sumner's in terms of nomination or being confirm as the head of the federal reserve's. the next likely candidate is janet yelling. she was the second canada and that people were looking at and her supporters were very vocal in public and on the heel. and i think what

actually has happened is this is cost president obama to begin actually looking even beyond the current board of governors. so we have heard that he's interviewed other private citizens as well for potential consideration to the chair of the board of federal reserve. if that were to happen that would be a big surprise for the market. right now it looks like the odds are in favor he janet yelling, but there is the outside likelihood that it could be somebody that's not currently sitting on the board of governors. > glen thank you for that update. former treasury secretary larry summers anticipated what he called an 'acrimious confirmation process as he withdrew his name from consideration for chairmanship of the federal reserve. money managers we spoke with say it boosts vice chair, janet yellen's chances and may signal a greater likelihood that tapering may happen more gradually than it might have under summers' leadership. "i think it would have been a fight..." "the market bounced..." observers say larry summers' role in deregulation of financial markets and support

of a scaled-back economic stimulus package led to anticipated conflict with democrats as much as with republicans. 5 years after the collapse of lehman brothers president obama is reminding americans how far the country has come and how much further it still neds to go.. speaking from the white house monday..the president recalled the stock market plunged, banks stopped lending and car companies flat lined. but the government was quick to save the auto industry, rescue banks, a create new laws protecting consumers from finanical scams.. mr obama says durng the past few years 7.5 million jobs have been added, the finanical system is safer and more goods are made in america. now he says it's time for congress to stop threatening to shut down the government and pay its bills by raising the debt ceieling.

."after all the progress that we've made over these past four-and- a-half years, the idea of reversing that progress because of an unwillingness to compromise or because of some ideological agenda is the height of irresponsibility.gop lawmakers criticized the president for his comments on the same day as the d.c. shooting. the gap is growing wider between america's highest and lowest income families. the latest stats show-- the unemployement rate is 21% for households with incomes less than $20,000. families living on incomes of $150-thousand per year have an unemployment rate of 3.2%. while pushing his agenda to build up the middle class . president obama notes the middle and lower classes have not seen wage or income growth. the highly anticapted un report on syria is out and it cites, quote "clear and convincing evidence", of a chemical attack on the people. . rockets loaded with sarin gas were used on a relatively large scale. according to the report.

although it stops short of saying which side was responsible. this follows a busy weekend of diplomacy that ended with secretary of state john kerry and his russian couterpart, sergei lavrov, reaching an agreement on how to dismantle syria's chemical weapons program. the agreement averts a u.s. attack on the country. in our cover story, it takes a lot for a proposed fast-food franchise to annoy a community. but to get residents to fly nearly ten-thousand miles to face corporate executives raises the level of displeasure beyond super-sized proportions. garry muratore lives in a suburb of melbourne australia called tecoma. it's slated to get a mcdonald's franchise despite a majority of local citizens who call it maccas, say they don't want it there. in protest, he taped little signs to 30- inflatable kangaroos and propped them up in front of chicago's largest mcdonald's to make his point. the mcdonalds denounced by muratore and 93- thousand others who've signed petitions in opposition would be

near the entrance to a national park and across the street from an elementary school. "we don't need them marketing to our children 100 ft from their school." but what got their trans-pacific anger up most of all was after the town council rejected mcdonalds proposal unanimously, the corporation went over their heads, cleared the land and got approval from regional officials said to be pro-business to build it anyway. and passers-by who saw the cute little kangaroos seemed to agree--that was wrong. mcdonalds denied our request for an interview and issued this statement: mcdonald's australia has followed due process every step of the way to build a family restaurant on a highway that already houses a number of food and service outlets. the area is appropriately zoned and we have an approved planning permit." wednesday, muratore hopes to deliver his petitions to mcdonald's executives in person.

boeing's dreamliner jets are running into more problems. dreamliner 787 jets...norwegian air shuttle is dealing with a technical issue in a hydraulic pump on one of its 787..the airline grounded its two dreamliners earlier this month for brake and power issues. beleagured sears holding plans to secure a $1 billion loan in an attempt to lower borrowing costs. if approved, the loan would come from the chain's existing $3.2 billion revolving credit agreement. the company operates sears as well as k-mart stores. and reported a second quarter loss following weak sales. sears shares closed higher yesterday at $61.41.

the packaging corp company plans to buy the boise company for $1.27 billion dollar. shares of both companies shot up on the news.. packaging corp..produces corrugated shipping boxes.. rallied more than 10 %. packaging will pay $12.55 per share for boise which makes container board, office paper --.that stock advanced 26% together the companies will generate a combined $5.5 billion in sales.the deal gives packaging corp access to boise mills slowly but surely the beleagured costa concordia cruise ship is being righted.in an engineering marvel never before attempted, the massive vessel is being pulled upright inch by inch so it can finally be towed away. the billion- dollar project is being undertaken by the american company, titan salvage.the ship has been slumped on its side for more than a year and a half after running aground off the coast of italy. the accident killed 32 passengers. turning now to the tragedy in colorado..epic flooding has killed at least seven people and -- more than 1,000 are missing and 17-thousand homes have been destroyed. .the flooding has triggered the largest civilian aerial rescue operation since hurricaine katrina. making matters difficult-- many roads and bridges have been

washed away. crews are assessing damge. repair costs will likely reach into the hundreds of millions of dollars. new jersey governor chris christie vows to rebuild the fire-ravaged jersey shore boardwalk. christie pledged an initial $15-million aid package for business owners affected when he met with them over the weekend. this is the second round of assistance needed by the beleagured boardwalk -- it was heavily damaged in super storm sandy. the cause of the fire remains a mystery. a saudi prince has no plans to sell his stake in twitter when it ipos...according to an exclusive report by reuters-- prince alwaleed bin talal holds $300 billion dollar stake in twitter.he expects the social media company will ipo later this year or early next year.the prince believes twitter is just beginning to touch the surface of success. tablets continue to gain ground against p-cs and are quickly becoming the computer of choice.in fact, more tablets

will ship in the fourth quarter than p-cs according to new research from international data corporation. the i-t strategies company went on to say that tablets will outsell p- cs by 20-15. the overall smart-device market is expected to grow by more than 10% in 20-13. a tech titan tops the list of wealthy americans.bill gates-- the founder of microsoft-is list by forbes as the richest of the rich. his wealth climbed 19% last year to $2 trillion dollars. rounding out the top 5 -- warren buffett at $58 billion larry ellison at $41, and the koch brothers at $36 billion each. still to come it could be the next credit crisis-- how college students are lured in by low interest rates that don't always last.. plus, how to get the upper hand on flying home for the holidays this year... and why the u.s. airways / american airlines deal is grounding ticket price hikes. we'll be right back.. in the know?? by the numbers industrial production (up arrow) .4% capacity utilization (up arrow) 77.8% 77.8%

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i served a total of 16 years. and at 19 years old, that's the first time i ever saw somebody die. coming back, i was raging. i started having pretty horrible nightmares. i started drinking a lot. i guess i never recognized it in myself. it all starts with going to the va. there's a whole community of veterans that just want to help you out. it's for the guys who couldn't come back, you owe it to them to live well. because they're not here with their families. airlines are now being held to higher standards in fuel efficiency.. a new report card by the international council on clean transporation.. ranks.. alaska airlines as the best in it's effort to be green. followed by spirit, hawaiian, continental, and southwest airlines.a federal fight against the american airlines/us airways merger could be good for bargain hunters.the us department of justice filed a

lawsuit against the mega merger saying it would cut competition and bring on higher fares.but at least until the lawsuit is settled...the two airlines don't plan to hike rates. the doj hearing is set for late november. early birds are likely to get the best deals on traveling home for the holiday. jennifer waters of marketwath.com is here with the details..isn't tihs earlier than normal? > > well if you been watching the ticket prices, then no not really. we have some people like the ceo of cheap air dot com and he has been watching those prices since may. and he said he's seen this kind of graph going up and then took a couple dip's two weeks ago and now it's steadily going back up. >are planes filling up that quickly? > > you have to remember that as many as planes are in the air today. they're gonna be the same amount in the air the day before thanksgiving. but think about how many more people are gonna be travelling then. so they will fill up pretty fast, and because we have about 20% less in capacity do we head to the three years ago. i have never flown on holidays because

i know it's crazy, and a mad house and that if there's any weather issues at all then its really kind of crazy. >is there any chance if you wait until the last minute you could score a deal? > > there's always that chance, but i think you are going to be rolling the dice on, the best bet is to that you should look into when you're flying. you know not to fly the day before thanksgiving and you know not the fly sunday after words, christmas this years on wednesday so all the kids to be coming out of school on that friday so don't fly on that day. you might actually think of the actual holiday itself to fly because you might find some deals on them. >i am hearing that now was a great time to sign up for a trip to europe over the holiday. > >yes, yes europe is like particularly thanksgiving because everybody is not going

to europe there's no business travel to europe. there's not much pleasure travel to europe. europeans are not coming over here because they know it's pretty expensive and everybody's on holiday. so you get some really good flight. one of the agents i talk to tom parsons from best fares dot com said his favorite is the double whammy of turkey. which is the round trip flight for about $589 to new york to istamol. >thank you for bringing that to us, nice. > >you get to go to turkey before turkey on thanksgiving. >thanks for coming again! > >my pleasure. hello kitty jets hit the u.s. this week.tiawan-based eva air will start three regular flights between los angeles and taipei on boeing jets painted with a hello kitty motif.the iconic cartoon will be featured on airplane pillow covers, hand soap, tissues, and flight attendant uniforms. cute chuck... coming up... bill moller gives us an education on credit cards for college students... and --- what traders say its likely to follow yesterday's break out rally.stick around for chart talk..

what age group is the most vulnurable to abusing credit cards? it very well may be college students who go on spending binges & haven't developed credit management discipline. it's paramount that they have low interest rate cards. credit.com just listed the best student credit cards.

gerri detweiler is director of consumer education for the rating service. jerry how is it important to get that first card right? > > it's very important because with your first card you're establishing your credit history and the longer you have held the card the better for your credit rating. > is it all about the interest rate? 1 is that the shift most important thing? > > interest rates are important, i mean certainly reward are great and if you're responsible with his card and if you hold onto it for a long time you"re going to want more than a plain vanilla low interest rate credit cards. but, at the same time students have to be really careful about not keep falling into the trap-so easy for any of us to fall into. which is your spending more than you should turn rewards and the wind up paying a lot of interest. >alright, well credit dot com did this research out there. give us the top of the top for

best student cards. > > we found that the third best starting card in our ranking is the capital one journey rewards card and the interest rate is moderate depends on your credit history what you earn. you will also earn rewards with this card. it also has no foriegn transaction fee, so this is a good card if your student plans to travel abroad for their college years. > number two? > >bank america has a cash rewards credit card for students. this one also, offers rewards and has no annual fee and agian your interest rate is going to vary depending on your credit history. so you want to make sue that you don't end up paying alot of intrest if you are carrying balances. >alright, credit dot com has recommended what as the top card? > >the top card we chose was the city forward card and this card is a nice card because it offers rich rewards which

include one that i think alot of students may be paying for right now which is; mobile phone protection. if your phone is lost or stolen they will reimburse you with a $50 deductubale it also has a reward out for maintaining good behaviors. so if you paid on time and stay below the credit limits you can actually earn an interest rate reduction of up to 2%. > all right, you have all of this ranking and the information behind it at credit dot com. gerri detweiler thanks so much! > >thank you. thanks bill... still ahead-- will the "summers" rally last or take a fall? chart talk is next

ehicle. when i came here, i... i couldn't move. [male announce david was broadsided on the highway. they weren't very hopeful at the time that he would survive at all.. [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.

>ben lichtenstien of traders audio dot com joins us on the show now for chart talk. ben all day yesterday traders recall and that the summer's rally. it will continue today? > > what a good question. actually, we saw some energy to the downside yesterday's the s&p, the nasdaq down. the russell after starting very much positive territory news is related type activity in the overnight session sunday headed into monday. again, high energy activity. for the most part, it trended to the downside there was some devergances throughout the day that developed but, if you take a look there were multiple major markets that were basically retracing all the movements that they saw on sunday night headed into monday's session. i'm talking gold, talking bonds, talking dollars as well. really across the board basically retracing yesterday. > as a trader, do you have to stay on your toes? we saw a similiar situation with the osama bin laden capture.

> > sure, you usually see that type of activity.. put it this way; it is fairly typical in terms of news related activity you see that high energy reaction type trade and then for the most part as the dust settles traders start to realize that nothing's really changed for the most part the the real focus this week is on the fomc meeting, which starts tomorrow but we can report on wednesday. then we're really just waiting to see if the fed's are going to mention tepering or not. for the most part i think the market has the slight taper factored in. >thank you ben, we will be watching! > >thank you coming up next time on first business.. activist shareholders have held a tight grip on jcp, herbalife and apple during the past year... are they villans just trying to get their way or are they heros rescuing stock? find out tomorrow. from all of us at firt business... have a good day and dc our thoughts are with you.

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