senators take a shot at troubles plaguing the government's new health care website. in today's cover story.... twitter pumps up its ipo price range....what that signals to investors... plus.... the factors in play that could change the direction of the housing market. and.... the buzz on coffee beans....why high supply may not lower the price of the average cup of joe. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas good morning! it's wednesday, november 6th. i'm angela miles. in today's first look: the nasdaq gains more ground.the tech heavy sector was the only major index in the green

yesterday by adding on 3 points. the dow lost 21 and the s&p 5 putting an end on a 2 session winning streak. gold edged down 4 dollars and oil by $1.21. a boeing 787 dreamliner owned by a polish airline reportedly was grouned in bangkok tuesday. the dreamliner has been beset with glitches. this time- a jet was apparently on its way to warsaw went it started having a power supply problem. investors pull out of tesla on earnings.. shares fell nearly 12% last night, even after topping earnings estimates but actual car deliveriess were a disaapointment. larry shover of sfg alternatives has his eye on the market for us today. good morning to you, larry. > > good morning. > > tesla shares tumbled last night. now earnings came out-- i didn't think the numbers were so awful, but was it just not good enough for wall street? > > well i think considering the stock as of 400 percent on the year, a lot of fast money

owns the stalks so they want to see a huge, exceeding in earnings or revenues and the fact is that they exceeded a little bit but it wasn't a huge and beat, so that fast money is going to sell. keep in mind long-term it's a good stock, and if you see a drawdown like that it's probably a good time to get in. > > it can always turn around. now larry what else is catching your eye and the market? > > well oil is catching my mind. i mean oil has gone down quite a bit in the last six weeks-- a lot of it's due to the strength in the dollar but today that's not the case. it's really a lot more because of inventories. inventories are stuck very high-- much higher than most people expect. > > any chance that we'll see an oil drip as far as gas prices at the retail level going down to maybe $3 as people are suggesting out there? > > yeah it could happen but i don't think we'll see much below that, but keep in mind that most refineries or most fields-- i should say-- especially north america or brazil or even elsewhere need anywhere from 75 to a hundred

dollars a barrel just to keep revenue neutral so there actaully going to cut production a little bit if oil continues to go lower which will ramp gas prices ripped back up. > > good to know larry thanks for coming on the show today. > > thank you. in our cover story, twitter is looking more and more as though it's got its ducks in a row for its iniitial public offering, tomorrow. that's according to analysts who saw the social media site raise its ipo price range 25% within days of going public.twitter raised its ipo price range. before it was from $17 to $20... now, it's between $23 to $25. it also closed its books a day early. some call the moves "signals of strong investor demand," others see them as calculated to create buzz, not reflect it. i don't think moving it is going to scare anyone away. the impression is that it shows confidence. our fair-value is $26. so it's not over-priced. investors are hoping to make money from advertisers who want access to twitter's 230 million users. already, it's known that about half of adult

twitter users get their news on the social media platform. there's a lot of real time information in what you get and what you are into right now is very relevant to advertisers. not since facebook's faceplant, last year has an ipo from silicon valley been this closely anticipated. twitter's launch is considerably smaller, but it has followed a model for success-- build an audience, then monetize it. with the holidays approaching, twitter has successfully shown retailers direct benefit from ads. twitter's use by companies on black friday to advertise last- minute deals. black friday has been changed by these efforts to get deals put up and get things moving. many say twitter's popularity took flight as london hosted the olympics, last summer. sitting in a stadium and reporting athletes' achivements or failures in quips of 140- characters became its own sport.

that was the point that brought twitter back. people got re- engaged with twitter. so far, this has been the busiest year for ipos since 2007. more than 178 companies have gone public. an ipo from israel debuts on the nasdaq today will be closely watched. the tech company wix --allows users around the world to build their own websites. the start up is from tel aviv and is considered the largest israeli-us ipo since 2010, the new jobs act played a role in getting the company on the market. it will trade under ticker w-i-x. shares priced last night at: the upper end of the range at $16.50 per share.. wix generated $44 million dollars in revenue in 2012 and lostt $12 million.

apple's newest model has everyone guessing. though we are hearing sales for its new ipad air are strong...the company did not release results this week. it typically does so the monday after a big weekend release. at &t reports ipad activations jumped more than 200% in the last several days. apple may wait until its new ipad mini is released later this month to give a full report on its new devices. meanwhile, gt advanced technologies jumped 20% yesterday after apple said it will partner with the company. it will produce sapphire-based materials in apple's arizona plant. apple stock is trading at $525. retailers anxious to get holiday shoppers in the door-- are going to extremes this year... and leaving little time to celebrate thanksgiving. kmart is the early bird! stores will open at 6:00 on thanksgiving morning and remain open for 41 hours straight. toys r us -- will start letting shoppers in at 5pm thanksiging evening. sears, most macy's, kohl's and

jcpenney will welcome customers at 8. the government shutdown and recent lackluster sales numbers have retailers on edge. add to that a gunman who caused panic at new jersey mall this week-- could drive more shoppers online. ahead of the holidays, luxury brand michael kors is surging. kors stunned wall street in its latest earnings report. sales were up 31% in the u.s. as consumers bought more accessories. the stock rallied 6% yesterday. in other earnings news, aol stock rose on word that the media company has higher revenues due to more ads. however, net income dropped due to costs associated with aol's local sites, patch.com. and investors watched as drugmaker regeneron soared. thanks to high hopes for its eye-disorder drug ... the stock rallied 6% yesterday. johnson and johnson will pay a record fine to settle claims it improperly marketed drugs and paid kickbacks to doctors and nursing homes. jnj is accused of marketing its schizophrenia drugs risperdal and invega- to elderly patients as a treatment for dementia. jnj also reportedly targeted its heart failure drug, natrecor to

patients who may not have had servere heart trouble. the $2.2 billion dollar fine is one of the largest healthcare-related settlements in u.s. history the government will payout an historic $167 million to 3 whistleblowers who flagged jnj's practices. in "another" record fine to report-- "sac capital advisors" has agreed to plead guilty to securities and wire fraud. the powerful hedge fund will pay a $1.8 billion fine. the fund's billionaire leader, steven cohen, stands accused of creating an atmosphere of "rampant insider trading" at his company. cohen wasn't charged in the indictment but $616 million of the fine will go to the sec to settle a related claim against cohen. the company states that it "takes responsibility" president obama will be in dallas today where he will meet

with supporters who helped un- insured american's navigate the new health care website. technical problems with healthcare.gov are still being called into question on capitol hill. yesterday, medicare administrator marilyn tavenner admited to a senate committee only a few consumers could create accounts in the first days the site went live. we have now resolved that issue. users can successfully create an account and go through the enrollment process. we are able now to process nearly 17,000 registrants per hour or five per second with almost no errors. well, i'm going to be blunt, because i really want this to be a success, and my job is to pinpoint solutions, not finger point, looking at a retro way. i think it is very confusing. senator barbara mikulski of maryland--says 73,000 people in her district are losing their health insurance because their policies don't meet the standards set by the affordable care act and will need to shop for insurance on the website. kentucky is on the

sucess stories. with more than 1,000 residents signing up each day since october 1st on the state's site "kynect." there are hints that the justice department is close to a deal to allow a merger between american and u.s. airways after all. the doj wants the two airliners to give up landing slots at "key" u.s. airports as a condition to drop its lawsuit seeking to block the merger of the two companies. attorney general eric holder told reuters that he is in talks with the two airlines and is hopeful an agreement may be reached before the case goes to trial, later this month. in greece -- the citizens remain at odds over the budget. on the heels of its second bailout inspection, the country is bracing for widespread protests today. officials say greece is facing a 500 million euro budget gap in 2014. troika officials are pushing for more austerity cuts to help fill the void. however, greece's government argues austerity measures will further stunt the countrys growth. unions will stage a general strike today and transportation strikes will ground flights for three hours.

many europeans are "micro" managing business loans. microlending is on the rise in european countries such as spain and france. after lending tightened up during the recession... more europeans are taking out unsecured, smaller loans to launch their own businesses. the loans are under 25 thousand euro. the wall street journal reports microloans rose 31% in the eu from 2008 to 2011. in the wake of a public outcry over so-called "pink slime" in beef, cargill is making some changes. cargill is one of the world's largest producers of ground beef, but was spared much of the backlash that hit competitor beef products that were using pink slime as a filler. as consumers demand more transparency-- starting next year-- cargill plans to label its meat: as finely textured beef that is exposed to citric acid to kill e. coli. although cargil did not use pink slime, demand for its beef dropped an estimated 80% in 2012. blommer chocolate company, the largest cocoa processor and ingredient chocolate supplier in north america suffered a fire

at it's chicago facility, tuesday morning. a firefighter said one of the factory's five- story chocolate roasters caught fire after five a.m. more than a hundred workers were evacuated and no one was injured. but a mechanic at the plant said water used to put out the fire contaminated chocolate on the production line. in a statement, a blommer's spokeswoman said "we have stopped all plant operations to conduct a thorough assessment of the impacted areas..." city and state environmental inspectors found no contamination outside the facility. it's one of four factories, run by blommer chocolate. still to come: down payment drop. why you need less upfront to buy a house these days... plus.... find out what factors could help or hurt the housing market next year. and next... rapid coffee production has the coffee market buzzing... what

it means for prices... we'll be right back. starbucks should be get a price break on coffee beans. there's a flood of arabica coffee beans in the market. phillip streible of rjo futures joins us with an update.. good morning to you. the coffee beans are coming from brazil and columbia.. what's the outlook on this harvest season? > > yeah that outlook or that harvest should really continue to pick up. i mean if you look at vietnam, they just had their harvest. so exports are up 7% from october into november. you look at india and also columbia-- their harvest is just right around the corner so you're going to see this increase flow of coffee and coffee beans coming into the market. > > what does that mean for

coffee prices at the retail level? will this be welcomed news for coffee drinkers? > > well if you start looking at some of the roasters and a lot of the commercials they really haven't come in to the futures market and at all. so we're continuing to see prices decline on there end which are keeping their profit margins quite high. they're selling to us at this fixed price-- if not an increase in price-- and they're able to come in and scoop the futures up at much lower levels, but they just haven't been there yet so i'd watch out and look for those guys when they start buying coffee on the futures market that's when prices start to go up. > > we will watch for that, and what about a trader play? is there a way to make money on this? > > well you still got to look at a decline happening. i think coffee prices are gonna dip below that dollar a pound. will probably settle up around 90 to 95¢. then you start looking at the up sides. you might look at the march futures or look at a call spread but not until we achieve those levels. > > philip always great to have you on the show. thank you for your time today. > > thank you. > > go have a cup of coffee. > > thanks. coffee isn't the only harvest on a hot streak.

the usda says corn and soybean harvests are ahead of schedule in many states. despite wet weather, farmers have been able to harvest healthy crops.corn futures dropped to a three year low this week, due to the estimates. before we take a break.. a sad story to report. celebrity chef-- charlie

trotter died suddenly yesterday. trotter was self taught and rose to fame to become one of the top chefs in the world. he inspired thousands and leaves a legacy of recipes for fine cooking. trotter was 54. we'll be right back.

real estate - that's a mighty big driver in our economy. it's still technically in recovery

mode. take a look at these stats. home ownership for the 3rd quarter that was at 65.3% up from the lowest level in 18 years. more people basically buying homes. and home prices jumped 12 percent in september from the year before - and that was the 19th straight increase. so what's the outlook for 2014? deloitte makes some predictions about that it has its 2014 real estate industry outlook. bob o'brien is the us real estate services leader at deloitte. so bob, tell us how important is the buying & selling of homes and buildings and offices to the overall economy? > > well it's incredibly important. with respect to residential real estate improvements in residential real estate values and confidence in that market improved consumer confidence and consumers, as you know, drive two-thirds of the economy. > > so that's sort of a psychological impetus? > > a psychological impetus, but the fact is they think they

have more money to spend. and on the the commercial side, commercial real estate is highly dependent on a strong economy but we have seen a strong recovery in commercial real estate over the past few years. all right let's take a look at the two separately now. first residential we've seen some growth, we have some stats there. there's a lot of uncertainty though about government policy and what congress is or isn't going to do who. so what does 2014 look like on the residential side? > > well we expect to see continued improvement in residential real estate. home prices should continue to go up. home sales volume should continue to go up, but it will be a little bit bouncy. threats of higher interest rates affect tapering. higher home prices-- that will have an impact on the amount of buying. > > because it has a direct impact on mortgage rates. > > well exactly if the fed indicates that they're going to

begin tapering their monetary policies, we can expect to see an uptick in mortgage rates. interestingly enough an uptick in mortgage rates initially drives home sales. > > cause people tried to get in under the gun? before it gets any higher... > > exactly. > > and tell us bob about the commercial side of real-estate for 2014. > > well the commercial side of real estate has responded very strongly since 2009. a lot of transaction activity, fundamentals continue to improve, capital is out there and available-- at least for buying and selling buildings. still little challenging to develop new stuff and get capital to do that. > > so in some, just a few headwinds in the residential and commercial side, but you're seeing steady growth? > > generally positive growth. we expect the pace of growth within commercial real estate to slow down from where it's been the past few years but nonetheless continue to improve. > > bob o'brien from deloitte-- thanks so much. > > well thank you, bill. headlines after the financial crisis proclaimed a new era -- that buyers would need 20% down if they wanted to buy a home. but now comes word that down payments of only 5% are making a comeback. td bank, bank of america and wells fargo are all offering mortgages with as little as 5% down.the change of heart can be attributed to market conditions -- risng home prices mean the banks are taking less of a gamble. just ahead-- the stock market has been a stunner this year. but trader alan knuckman has uncovered a stoc k he says could

run higher to catch up. chart talk is next

alan knuckman joins us now to talk about the strength of this market. good morning to you alan. > > good morning angie. > > just how far have we come? it has been a fast ride. yes it definitely has, the nasdaq has been leading the way. were up 30% for the year and as you may know there's going to be the twitter ipo so all eyes are on tech. > > alright so let's talk about some stocks that have not participated in the rally. > > right that's the thing that mentioned a couple weeks back it's again the theme some stocks who haven't played ball yet. if you look at emc, emc is about 12% off the peak right now and the stock has been trading between 22 and 27 and right now we're seeing about 23 1/2.

now it's bounced off 23 this last couple of times here in june and in october so look for the support to hold. 20 is the key pivot that it broke above back in 2010. now that's been the support over the last couple of years. > > are you looking for a big $5 move in this stock? > > well i am looking for a nice healthy move here to up to 32 if it breaks above 27 and takes out that high you should see that five dollar move to 32 which is not that big of a move to the 30 some percent. but i look to play this with long-term options. and i'm looking at the deep in the money call the 20 call, i've talked about the support level for january 2015. it has a year and three months for development. it's in the money it's going to act like a stock. it costs about $450 and its $350 in the money so your breakeven is about $1 higher with like i said, a year to go on this option. > > you have built in your risk management with an options trade but for somebody who might just want to take a shot on

this stock what could hold it back? what are some caveats? what should they watch for? > > well you wanna make sure that it maintains above its 23 level on a weekly basis and look for it to break at about 24.50. have to be the catalyst once it goes through there it should make an attempt on the upside because that's the half way level of this last sell-off and it's going to be a resistance level. it can push through then good things are going to happen. > > thank you as always alan. > > thank you. before the curtain comes down on our show for today.. a quick peak into tomorrow's show.. our film critic will be here with his weekened pick and give us the dollar details on a sci-fi flick that that's already a hit oversease.. plus-- the newest ways the tech industry is changing the way we drive thanks for watching today.. from all of us at first business.. have a great wednesday. 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.

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