rent to own risks.... why consumers shopping for savings can wind up digging themselves into debt. in today's cover story.... a look at the final destination for boeings new 777. plus.... the cost of natural disasters from the midwest to the phillipines. and.... why smaller spaces are becoming the hottest trend in the housing market. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's tuesday, november 19th. i'm angela miles. in today's first look: the party hats are back. the dow tops 16,000 and the s&p 1,800! however, the numbers did not stick into the close. the dow ended the day up 14 points just

below 16,000, the nasdaq lost 37 points and the s&p 6 points to close at 17-92. gold faltered by 14 dollars and oil fell 88 cents. in earnings after hours sales force.com traded in heavy volume with loses and gains.the company reported earnings that were in line with estimates. and urban outfitters shares fell about 1% after post revenue and profits that topped expectations. another active day for walmart- the retailer is being sued for firing protesting employees. and will hold a food drive for it's own workers. jpmorgan and the justice department have reached a $13 billion settlement deal over bad loans. it includes a $ 4 billion consumer relief package. jim richter of performance trust joins us on this tuesday morning for some trader talk. he has his eyes all over this market. good morning to you jim. > >good morning angie. > >we are watching the record setters in the market. will it

continue into trading today? > >yesterday was a big day for the stock market. lots of great headlines angie---for folks like you in the media. one of the things we're focused on was the fact that s &p is trading around 20 times earnings and so clearly the investors have an appetite for risky assets, but they have an appetite for risky assets until they don't. when the market gets around these levels you just gotta be a little more careful. > >we have some comments coming from a fed president this week already. is the bond market paying attention to those comments? what do you think? > >i read new york fed president william dudley's speech and from my perspective he was really talking out of both sides of his mouth. he said that he was getting more hopeful but it's very difficult to follow the direction when they're talking on both sides of their mouth. > >we also have chairman ben bernanke speaking tonight. what do you expect will come out of

those comments? could that be a market mover? > >lame duck ben...i was thinking can we call bernanke a lame duck now as his term winds up. i have a hard time believing he's going to say a whole lot that's going to move the market. he's at the end of his term. he tends to be very cautious in what he says. so it will probably be a non-event. > >thank you for that update. the midwest is the latest site of deadly storms leaving behind a tragic path of destruction. a reported 80 tornadoes ripped across the illinois killing at least 6 people and wiping out blocks of homes.state farm says more than 1,8000 claims have been filed. the insurance company advises to take photos and save receipts for claim representatives who will be starting with the worst hit areas. and, to beware of unscrupulous crews for home repairs. in the phillipines the situation remains intense 12 days after the storm. families are still searching for loved ones and rescuers have not made it to remote areas destroyed by one of the worst typhoons ever to hit the area. traders are also surveying the situation in the phillipines. the country stands to lose millions of dollars from the loss of sugar and rice crops and coconut groves.

the initial estimates coming from some of the wire services over there are taking about 25% losses i think it could be more. certainly it's going to be agreat boom to the palm oil producers in malaysia and indonesia because they will have less competition. unicef is tracking donations coming from corporations and individuals. "in the united states we're working with what the un has given for the unicef number, the unicef number is $61.5 million dollars, so far we've raised to meet the needs of children so far the us has raised 7 million of that 61.5 million." nbc news reports-- theworld bank has offered the government in the phillippines a $500 million dollar emergency loan for building projects. a climate change watchdog has some tough words for the coal industry. in a speech to the world coal summit, a top united nations offical, told says the coal industry is not doing nearly enough to halt climate

change. under a u.n climate treaty -- the deal --was to keep global temperatures from rising no more than 3.6 degrees from pre- industrial levels. however,.the u.n warns maintaining that goal is looking impossible. clients ripped-off by mf global will get money back. a federal court is ordering mf global to pay $1.2 billion to customers of the failed brokerage. mf global will also admit to allegations of unlawful use of client money. mf global filed for bankruptcy protectin in 2011. jon corzine was running the company as major bets were taken on european debt and $1billion from client accounts used to keep the firm operating. goldman sachs is reportedly in talks to sell its metals warehousing business. according to the financial times, goldman may even take $250-million loss on a deal. goldman cited lots of buyer interest in its warehousing business as the reason for the sale. however, the bank's business practices in the metals market have prompted investigation and scrutiny.

people in the financial world are quick to get up to speed on the latest investments by billionaire warren buffett. and, according to a recent sec filing-- buffett's berkshire hathaway's list of top ten stocks includes banks. wells fargo is number one on the list followed by , coca-cola, ibm, american express, procter & gamble, walmart, exxon mobile, us bancorp, direct tv, and goldman sachs. ninety-five billion dollars in aircraft orders for boeing.not a bad start for the first day of the dubai air show.boeing's triple-7 x is the sought-after aircraft.but where it'll be built is the subject of our cover story. machinists in washington state rejected a boeing contract to build the triple-7 x, a more fuel-efficient update of boeing's triple-7 airliner. in a devisive vote that pitted job security versus take-aways, machinists weighed. whether having their pensions frozen and time to reach top scale extended from six-years to-16 years...was worth steady work for eight years. in a vote affecting 32-thousand workers-- they told boeing, "no deal."

"it was draconian. they went for the whole magilla. they should have negotiated in exchange for job security." the vote has opened a door for other communities eager for the chance at landing a big boeing contract. an official from savanah, georgia where general dynamics' gulfstream busin jets are built said: "we're salivating. we all thought this was a done deal for washington." "no doubt a boeing assembly plant is a huge prize. it brings a heavily-skilled, highly-educated workforce." "i think it wants to stay in washington, but with mississippi and alabama wages applied." the deal may not be done but just delayed. half of the machinists in washington have more than 20- years' worth of experience with boeing. in the jet age, washington state's machinists have built more than 15- thousand aircraft. they are educated, experienced and earn at top pay--43.74 an hour.

"moving an entire production facility is a big, big change. "i think that's going to make boeing think hard and will lead it to put concessions on the table, soon." state lawmakers in washington have weighed in to keep the state's biggest employer-- passing an 8.7 billion dollar package of tax breaks to boeing.it's the biggest tax incentive package from a state to a single company in u-s history. at princeton university-- officials are considering extreme measures to stop an outbreak of meningitis b on campus. 7 cases have been identified at the ivy league school. the princeton website offers students tips on how to avoid contracting the disease. but reports say trustees are consideringa vaccine made by novartis ag.. that is not currently available in the u.s. the shots could be ready in the next month or two. novartis stock is up 38% for the year. a multi billion dollar spin off is in the works at general electric. the company is splitting off its financial services company that is

expected to go public sometime next year. the financial times values the unit at more than 20 billion dollars. the ipo market continues to heat up this week, with 10 companies set to go public. first up, cardiovascular biotech firm trevena....with an ipo tomorrow. walmart is admiting to safety problems at factories in bangladesh. walmart hired a firm to investigate 300 factories it uses in bangladesh following building collapse last april that left more than 11-hundred people dead.now, the retailer reports finding 32 safety failures in the initial inspecations of 75 factories and says it will improve working conditions. bangledesh has become a major supplier in the retail industry because wages are among the lowest in the world. chicken demand helped push tyson sales higher. the company topped estimates in its latest earnings report thanks to stronger revenues associated with a boost in chicken sales, and a bigger cattle supply. sales hit a record high. the stock popped 2% yesterday. honda and toyota top the list of

cars that retain resale value. toyota has the most models overall on the list, according to the automotive lease guide, but honda gets top honors because its sales incentives are kept in check. incentives can eat away at the resale market. the top individual cars on the list are -- the hyundai accent, mazda 3 compact, chevrolet's corvette and camaro and toyota's avalon. bono -- not just a rock star -- he's a rock star investor. forbes magazine -- the stalwart financial news giant -- is reportedly on the block for $400-million. should a sale go through, the first people to profit will be elevation partners, a private equity firm that counts bono as a partner. sony's latest playstation is a massive hit so far. sony sold more than a million units in the first 24 hours-- a new record. however, the company is monitoring some technical issues with the new product, but says the glitches are "within our expectations for a new product introduction." the ps4 hits europe & latin america next week and japan in february. sony's stock is trading higher, closing above $18 dollars yesterday.

if they get to build it, they will come. that's what mcdonalds is hoping with its new build a burger concept. a test is happening now at a california store, where customers prepare their own custom sandwich. mc-d is trying out the new concept as consumers switch to new chains that have more variety and healthier options. still to come: the dow and s&p trade to milestone marks. we'll talk to the trader who saw it coming. plus...more americans are using rent to own than ever before but are paying the price for failing to read the fine print. and next...the pre-crisis housing market trend that is making a comeback florida. first business continues after this.

suffwith a deadly disease. i was one of them. my disease was obesity and after consulting with my doctor, i received the effective treatment i needed. please join the obesity action coalition to acknowledge obesity as a disease visit obesity action dot org to sign an open letter pledging your support and for more information about how to talk to your doctor about weight loss and treatment options. together we can make a choice to end obesity now. a public service from the obesity action coalition. the national association of realtors predicts home sales will remain flat in 2014, compared with the big gains from the last two years. but that isn't stopping developers who are in a condo building blitz in florida. the same place hit hardest bythe housing crisis. jackie keenan takes us there. it's dejavu in tampa, florida. condos are a hot segment in real estate again. just five years ago a glut of condos littered

the skyline here and in other florida markets like miami and orlando. now, 30 percent of new home sales here are condos - and new towers are under construction. vice president of real estate for smith and associates dave traynor says the market is on a roll. what we're seeing is prices going up so developers are coming in and starting new projects. or in this building's case, a reversion. in 2007 this condo building, grand central, was one of many across florida to open as the housing market was crashing. so this developer turned half its urban-chic units into apartments. now, many buildings like this one are reverting back into condos. traynor says the timing was right to give it another go at selling and less than 10 percent remains unsold. he says most new owners are moving in, but a portion of buyers are renting their units. in some cases they bought it

for investment and allowed the renter to stay in because the rents were at such great rates that it made sense for the owner to purchase and hold onto the property. rental demand is still strong, especially among the young, whose unemployment and income levels remain stagnant. outside of downtown, investors are pouring into markets like tampa's and purchasing foreclosures and short sales to cash in on this hot rental market. these investors have targeted suburban apartment complexes that were turned into condos nearly 10 years ago. that's where we are today - institutions owning units, that were formally owned by owner occupants who were all foreclosed on, so it's very cyclical. but home encounter ceo peter murphy says trouble can come if developers again turn surburban apartments into condos, as this is what fueled the housing market meltdown. but downtown living is the trend now, so it's too early to know if a new glut is forming. developers have a unique challenge on their hands they

gotta predict what the demand is- they'll learn very quickly weather there's an appetite for half a million condos on their hands. if someone was looking to build a suburban condominium tower i think we would be near saturation point, but for the urban condo tower there's probably more demand here locally that can still be absorbed. of course if sales on new downtown projects fall flat, developers can do what they did last time - scrap selling and rent them out. you're always going to see owners occupied living alongside renters - you see it locally here in tampa, and you see it in ny chicago and boston, anywhere you have that condo lifestyle it's a product that's really suitable to to have both is really ideal for the developers. for first business news, i'm jackie keenan. and it's not just condos and apartments being purchased by investors - it's houses. the tampa bay times reports that blackstone equity has spent $326 million dollars to purchase more than 2,000 homes in the tampa market to repair and rent. coming up, the business that is busier than the mall on black friday. plus-- why renting town furniture and items-- may by a losing venture. it's all after the break!

rent to own - you can't afford to buy the tv or jewelry so you

pay monthly rental fees until you can own it. this has become big business. look at the numbers. in 2007 there were 2.8 million customers. that jumped to 4.2 million last year. annual revenue for the industry - nearly 8 billion dollars. that's a 50% increase in 5 years.but the better business bureau is waving a big warning flag. steve bernas is president and ceo of the bbb of nothern illinois. i was astounded at what customers can pay through the rent-to-own process. > >most customers are astounded by that. they don't realize that sometimes you can pay double of what it would cost you if you bought it outright first with cash. people have to be very careful and read the fine print on those contracts because they soemtimes lock you in sometimes through long term contracts. > >and some consumer groups say that the people least able to pay these high fees are the ones who are typically doing that. > >exactly. the advertisements are geared to those people that can't afford it unfortunately---the people that can't pay cash or don't save up for it. so you have to be very careful. it sounds good but you

can end up paying double. > >for short term renting, it's probably okay as long as you return the tv set? > >short term is okay but it's gotta be very short term. and most consumers don't go full term with those contracts so be very careful how long you go. make certain that you can afford it as well. > >the rent-to-own industry says they have to charge these high fees simply because there's a lot of theft, a lot of damage in their industry. > >that could be the case but unfortunately consumers are paying double for it. > >the bbb rates one of the big ones as a c plus and you've gotten a lot of complaints. > >over a thousand complaints, a c plus. that's not our highest grade. our highest grade is a plus as you know. > >is the industry regulated? > >they are regulated to a certain degree but i don't think they're regulated enough. i think consumers don't realize that sometimes they're paying the apr is 100% and more. so they're actually paying double as well and there's some problems in that industry as well so consumers need to be

savvy as well and i think there needs to be more regulation. > >i think you were telling me in many cases if not all cases there are options. > >there are options. > >such as? > >buying it yourself and budgeting yourself. > >saving up money for the product? > >exactly. setting a budget for yourself and saving up for it and buying it yourself over the long term. > >and there's layaway. i know sears offers it, walmart. > >especially since the holidays are coming, layaway is a good choice for some people who cannot afford it as well. > >steve bernas from the bbb, thanks. > >thank you. thanks bill! retail employees aren't the only busy ones on black friday. it is also the busiest day of the year...for plumbers. plumbing and drain service roto rooter says all those holiday guests can put pressure on the pipes in your home from the bathroom to kitchen following the holiday feast. just ahead-- a popular store for pumbers is a winner on wall street--but might be ready to take a plunge. chart talk is next.

investors have been very pleased with the performance of home depot this year. joining us now is matt shapiro, president of mws capital. with earnings coming out today, will the run

continue for investors? > >they're gonna have to come out with some good numbers. they're gonna have to hit the numbers, hit the revenue and have a good projection. the market's done really well. home depot's been a leader. housing's coming back but at the market at these levels any miss will be heavily punished. > >let's take a closer look at that. the stock is up about 20 dollars over the past year or so. so if it takes a hit, how much would you think is baked in here? > >well, you never know. if things are really hitting the numbers, it's gonna stay here or if it's a mild miss it could drop a little bit. but often times we've seen over the last earnings season, that's the time to buy the stock because the economy as a whole is doing better. with the bears talking about whether we're in a bubble or not, there is sort of this healthy skepticism. so they gotta make the numbers and that's sort of a good thing-- part of the yin and yang in the market. > >matt, i have to bring this up. you called the market on our show. you did a terrific job. you were talking about 16 thousand in the dow, 18 hundred

in the s &p 500. both happened yesterday. what was going through your mind? > >i'm really pleased and my message is---the pace of appreciation will be steady and constant from here. we'll have some filtering out. stocks will make their numbers, stocks won't but at the end of the day, the bears basically recognize by calling this a bubble that they were wrong. that the dow went from 13 thousand to 16 thousand. and even though we might have a correction or a pullback, that money has been made and that's history and the market was worth a lot more than they thought. > >matt thank you so much and thank you for that great call. > >thank you very much. coming up tomorrow-- the new out of the box ways corporate america is fighting cyber attacks--as hackers cost companies billions of dollars. we hope you will join us. from all of us first business, have a great tuesday.

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