[ imitates robot ] everyone deserves ooey, gooey, pillsbury cinnamon rolls. make the weekend pop. traders prep for a jobs tuesday.... will the numbers matter to the market. in today's cover story--why chocolate factorys are churning over the high price of cocoa. plus.... find out which retailer is opening its doors on thanksgiving and if it could be a saving grace for its stock. also.... after 3 weeks in the works...how patients...and investors are feeling as obamacare takes hold. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's monday. october 21st. i'm angela miles. in today's first look: the trading day begins with the s&p at a new record level. the index climbed to 17-45 friday. the dow gained 28 points and the nasdaq had its best day in 13

years. gold fell 7 dollars and oil was up a dime. jp morgan reportedly agrees to pay $4 billion dollars for misleading the government about the qaulity of home loans it sold to fannie and freddie just before the housing crisis. and, an environmental group in lousiana says oil gunk is still coming to the shore in the gulf of mexico --3 years after the bp oil spill. bp claims the 1 million pounds of oily material could be from another source. larry shover of sfg alternatives joins us for an early look on this monday morning. good morning larry. > >good morning. > >we have a jobs number tuesday to get ready for. what's the market telling you? > >the market's saying they're gonna discount whatever the number is because of the government shutdown. the numbers might not be full of clarity until december. however, they are looking for 180 thousand job ads and an unchanged unemployment rate. > >is the market impressed with

the growth numbers coming out of china? we had that gdp last week. > >yeah, the numbers were very impressive to the marketplace. we were overwhelmed with the whole government shutdown thing but behind the scenes, the numbers coming out of china--- that including the production numbers were very robust. suggesting a gdp number much higher than the market consensus. > >and we have stocks on a high larry. a number of individual stocks making news. what about this week? what do you expect? > >i think right now it's gonna be earnings driven because now we're back to micro. the macro's in the back seat. technology has been on a tear because of what happened last week with google and also ge in the industrial space. but it seems like we're gonna see a little bit more of the financials and materials come out this week so that will be the most volatile asset class going forward this coming week. > >have a good trading week. > >thank you. the next chapter of the great budget debate begins this week on capitol hill.

our job is over the next 8 week is to find out what we can agree on and we have agreed we are going to look at everything in front of us. i wanna have a budget that works for the country, i want to have a budget agreement that gets this deficit under control. the newly formed budget panel of top leaders from the house and senate-- faces 3 deadlines. spending recomendations by december 15th. funding the government beyond january 15th and raising the debt ceiling by february 15th. president obama is promisng to stay on the sidelines as congress deals with the budget. the gop took a hit from last week's battle on the hill over the deficit and the government shutdown. usa today reports: during the july to september fundraising period-- contributions dropped by two thirds for house republicans elected in 2010. meanwhile politico reports -- hedge fund billionaire paul singer is

already heading up discussions for plans to raise funds for the midterm elections. investors will closely watch for news this week on the f-35 fighter jet made by lockheed martin. reuters reports--- today-- top pentagon officials will begin reviewing the $392 billion dollar cost of building and operating the f-35s-- as well as considering ideas on driving down expenses. lockheed shares have been rising for the past 6 months. boeing is slowing production on its 747 jumbo jets for the second time this year. the company already cut production in april due to weaker demand, especially for passenger versions. boeing says it will now build 18 of the jets per year, or about 1.5 per month. the slowdown begins early next year. the company says it expects demand for cargo versions of the aircraft to resume next year. the illinois supreme court is striking down the "amazon tax" as unconstitutional. it's the first court in 18 states that has in-validated the internet sales tax on items shoppers buy online at amazon.com brick and mortar retailers are reported to be calling on congress to step in to create taxes for web sales. they say it gives an unfair advantage to online retailers.

despite protests -- media mogul rupert murdoch will continue as chairman of 21st century fox. share holders re-elected the 82-year-old ceo and his two sons friday. reports say: two investment firms holding stock made an unsuccessful attempt to appoint an independent chairman of the company. the groups cited the family's control and influence on the organization. jc penney is following the lead of macy's and opening its doors on thanksgiving at 8pm. last year penney shoppers had to wait until 6am on black friday for stores to open. the previous ceo ron johnson viewed thanksgiving as family time. this year-- under different management-- the company does not want to get beat by the competion. "i think jcp frankly, given all the scrutiny the retailer is facing, has to open on thanksgiving. do i think it will dramatically increase sales? no."

penney investors were not wow- ed by the thanksgiving day shopping strategy. the stock fell friday to $7- slow ipad sales are prompting apple to reveal another upgraded tablet. in the third quarter ipad sales dropped 27 percent. that's despite last year's new version of the ipad. now apple hopes another version - thinner, faster and including a fingerprint sensor - will boost buying. next to the iphone, the ipad generates the most revenue for apple. google stock made a sudden surge to $1,000! shares gained $122 dollars friday to close at $1,011. the question traders are considering is will the stock head higher from here? i'm not an analyst but i'm just going to say ride the momentum for the short term and it's obviously going to settle down, but i would look for the next stop to being $1,100. investors were motivated to stock up on google friday after the tech giant reported earnings and revenue that exceed wall street's expecations. especially after the company noted growth in money coming from ads on computers and mobile

phones. facebook is also making strides in mobile ad revenue. that stock hit a new record friday at $54. the new york stock exchange is conducting a twitter test run. as twitter's ipo approaches, trading firms will test software systems in preparation for the hyped ipo. nyse is trying to avoid a repeat of facebook's ipo day on the nasdaq, when trading glitches led to losses, and angry investors. nasdaq blamed poor software design for the errors. the test run for the nyse is scheduled for saturday. twitter is expected to hit the market in november. among the ipos for this week...brixmore property group is expected to file wednesday pricing at $19 to $21 a share. the new york-based grocery store reit expects to raise $750 million. surgical care affiliates plans to price between $21 and $24 on wednesday and raise $220 million. the deerfield, illinois company provides outpatient surgery and sleep centers to doctors and hospitals.

a flood of cash is pouring into tech....specifically, software companies. for the first time in more than a decade ... more money flooded to startup software companies than any other sector of tech. in the third quarter of 2012 investments in software hit 3.5 billion dollars. bank of america is considering nixing overdraft fees. the wall street journal says the bank is working on an account that cannot be overdrawn.bofa would be the largest bank to make such a move. regulators have criticized banks for heavy overdraft fees-- that could reach to up to $900 dollars per year for some customers. traders will watch for big earnings news this week, after a string of stellar reports on friday. in addition to google, general electric and morgan stanley bounced off of glowing reports. morgan stanley bucked the trend of weak bank earnings last quarter. earnings nearly doubled thanks to solid results from its trading business. the stock climbed over 2%. and g-e

is back up to where it was before the 2008 crisis, thanks to more demand for jet engines and drilling equipment. shares are up 3%. turning now to an update on those crab fishermen who were stuck on shore for days because of the government shutdown. after losing out on a season that should have opened october 15th reports say crab fishing permits were issued over the weekend.crab fishers are eager to cast their nets now to get their catches into stores in time for the lucrative holiday season. the makers of fine chocolates are anxious about the holidays this year but for a different reason. they may have to raise prices next year because as our cover story reports, the prices of ingredients derived from cocoa have gone crazy. it's nearly 900-pounds of chocolate but alain roby may well be sculpting solid gold as he prepares for chicago's fine chocolate and dessert show. a drought in west africa and higher costs to grow cocoa beans in ghana have led to a

spike in prices. cocoa butter, extracted from cocoa beans to give chocolate it's melted texture is up 63% in the last 20 months. and whole milk powder, another key ingredient is up, as well. "all this is like our corn. when there's a drought, the price jumps up." "the prices are at record levels and some will likely try to find substitutes for cocoa butter we already have." scoville says substitutes such as cinammon, sugar and corn syrup may satsify the demand at large commercial producers, but chocolatiers at this high-end show say those aren't options for them. "i've definitely seen prices go up. we haven't adjusted our prices yet but we'll do so in the coming new year." others expect the price of chocolates to consumers will likely rise. and along with it..an increased demand from emerging markets as well as a surprisingly strong third quarter in europe--up 12%...and

also up 12% in asia. "asia has been much more interested in grinding their own, producing their own and selling the product." there's also more invention than you may have imagined. graycliff hotel which specializes in life's finer things: a resort in the bahamas, cigar and chocolate factory is experimenting with cocoa beans with characteristics of plants growing near them. "it's so amazing, they have cocoa beans growing under banana trees and mango trees and it imparts that flavor into the cocoa pod." davis adds that a tourist component is also growing. graycliff and others lead hands- on tours that encourage unusual combinations with chocolate-- tomato basil and bacon or mango and lime mixed in chocolate bars, bits and bonbons. here's motivation to get your job search going today. a study by bright.com finds monday is the the best day to look for work. data shows people who apply for a job on monday are more likely to advance to the next stage of the hiring process. mostly because early applicants are

viewed as more eager. still to come...obamacare ups and downs...how consumers and business owners are adjusting to the new healthcare law. plus-- how wall street is in the money because of obamacare. and will amazon become the next stock to make a run for $1,000. it's all ahead. we'll be right back. 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 now enter week three of open enrollment for the new healthcare law. as skeptics search for drawbacks and americans learn about new insurance options.... one thing is clear: it's still too soon to say how well the process is working. the obama administration has not yet released stats about enrollment numbers...but has said that 14.6 million people visited in the first 11 days. conservatives continue to the fight the law. brian baker of conservative group "ending spending" says he's concerned about corporate america's response and website glitches. "it's not just what we've seen since october 1st since the website has been open, its all of the news of the companies around america who are cutting the hours of workers so they can be exempt from the obamacare provisions." but a physician who wrote a manual explaining afforadable

health care to americans-- says technical issues should not be the focus. "let's not let that cloud the millions of millions of people will be able to get healthcare. women will be able to have the same premium as men instead of double." the obama administration says the group in charge the health care.gov website are working hard to fix the glitches. obamacare is bringing a surge of investments to venture capital firms. as an estimated 32 million un-insured americans search for affordable health insurance. profits in online service companies are soaring. one of them is e- healthinsurance.com which allows consumers to compare prices between health insurance companies. stock is up 50 percent since july. the co- founder of a vc firm focused on health care. "i think healthcare in general is getting a massive influx of capital on the it side as companies like mine look to take advantage of the companies helping build products and

services that advance the process of change going on in the system in a productive kind of way." lisa suennen, of psilos group believes v-c firms will continue to profit as affordable care reaches more americans. coming up...the first hand account of how some restaurant owners are working around the rules of obamacare--- after the break. and later in chart talk -- dunkin donuts is popular for its coffee --but what about the stock. is that worth a buy? find out soon as first business continues.

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restaurant owners have plenty their plates with the launch of obamacare. jackie keenan takes us to florida where managers are making the tough choices.

the heat is on for restaurants. that includes this little greek location. president nick vojnovic says deals are falling through because of new health- care laws. i had a gentleman who wanted to buy a little greek and it would have put him over the 50 employee threshold and he said, i'm not going to do it, so i've personally seen deals fall through. since the affordable care act began on october 1, kitchens across the country are taking orders from washington on how to run their businesses. the bill's 2 major rules says: 1. an employer must provide health care if it has more than 50 full-time employees, or it will pay a fine - 2. and an employee is considered full-time if they work more than 30 hours per week these rules hit restaurants hard, where there are a large number of part-time employees, and the average profit is about 5 percent.

our margins are so tight and our profit per employee is so low, it can be devastating for our business. it feels like it's constantly changing health care consultant justin treece says restaurants are trying to ride the wave of uncertainty the new health-care laws have brought. he says many want to cap hours in order to reduce the number of full-time employees, but he warns of possible legal trouble. i've met with groups that said they're just going to start capping hours - that's something i'd be a little concerned with as a business owner because if i cut all those hours am i going to have someone knocking on my door with a lawsuit bow all of a sudden i've cut their hours because of a government requirement. treece says many small companies offer high-deductable plans as a benefit and to retain employees, but the new law caps the deductable. he says that could be a big problem for businesses trying to keep premiums low. and those costs - they are expected to go up by as much as 35 percent on january 1.

you're going to have a lot of businesses that say we can't absorb a 35 percent increase, and we can't pass it along to our employees, so we are going to drop the group plan. the shift to more part-time employees are beginning to trend with job numbers. so far this year, 60 percent of the jobs added have been part-time positions. vojnivic has no plans now to cap hours, but he says bigger chains have done it. loads of applicants are coming in from chipotle and it's because these guys and gals need a second job. for first business news, i'm jackie keenan. according to a new poll from the university of california at berkeley, 16 percent of restaurant employees are in danger of reduced hours because of the affordable care act. however, starbucks and the cheese cake factory have already found success offering health benefits to employees working fewer than 30 hours. still to come...find out what's in store for amazon stock ahead of earnings. chart talk is next.

in chart talk this morning andrew keene president of keene on the market dot com joins us for a couple of earnings stocks. good morning to you andrew. i want to start with amazon. after that spectacular move in google, does it change how you feel about this tech stock? > >yeah, definitely. we saw a lot of technology stocks starting to roll over. we saw

weakness in ebay, intel, ibm, and yahoo all last week. so then when google came off it was more than off to the races. the stock got up to $1,015. it was up over $125 in google on friday. obviously you're gonna get amazon and apple to go with it as well. so amazon reports later this week. amazon has a history of it does not matter what the quarter does. they don't actually really make money. i mean, i love their business model. i think their future growth is gonna be great. it gets bought on any pullback. i think it goes higher from here. i think its got a 250 target on it, if not higher. and if it pulls back at all on earnings i'll be looking to buy it. > >any chance this stock will eventually get to 1000? > >i do not think it can get to 1000. i think there's a better chance of facebook getting to 100 than amazon getting to 500---i'll say that. but facebook's the same way. any of these high-growth, high pe stocks, linked in, yelp, facebook. amazon is the same thing. you can't be looking at pe. you gotta be looking at the chart and the chart is headed up and out.

> >now what about dunkin donuts. people love the coffee. > >this is really funny too because i think dunkin donuts is very similar to like a dominos pizza. it used to get a bad reputation of being a not so clean place and i wouldn't want to go into a dunkin donuts or even be seen at a dunkin donuts and i go there every single morning to get coffee. i get an extra large coffee. i get skim, no sugar. it's $2.50. so it's actually a pretty good value and as the company should be doing very well as coffee prices drop. so if coffee prices dropping and they can keep increasing their prices. it's crowded all the time. everytime i go in before i jump on the subway, it's always crowded. i think dunkin donuts---very similar chart to dominos pizza. pullback's will get bought. 47.50 right now, also performs well on earnings. i think its got a 50 handle on it very shortly. > >thank you andrew. > >thank you. that closes out our show for today...coming up tomorrow-- new rules are happening in the mortgage industry. find out how it effects home buyers. and with that -- from all of us at first business, happy monday!

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