it's all about earnings. traders await market moving news from corporate america in today's cover story... what's next for general motors as its new ceo gets in the drivers seat. plus... more americans are going back to work during their golden years. and... social media, the newest tool on the trading floor. that's all ahead on today's first business! you're watching first business: financial news, analysis, and today's investment ideas. good morning!it's tuesday january 21st. i'm bill moller in for angela milesin today's first look: split trends have been driving things of late. while it was reported consumer sentiment slipped in december, other numbers showed america's industrial output in the 4th

quarter rose at its fastest pace in 3 and a half years.and in another split, new home starts fell in december but, were up for all of 2013.all of this resulted in, well, a split close in the markets. the dow closed up on friday while the nasdaq and s&p 500 finished lower.gold took a 13 dollar an ounce leap and oil futures closed friday at a 2 week high, just over 94 dollars.traders are still digesting the impact of the president's announcement that he will limit the vast sucking up of data of our phone calls. intel is cutting jobs.the pc maker says it will fire 5% of its workforce as it transitions into new markets amid a slowing pc market. and freedom industries, the company that fouled the water supply in charlston west virginia.also still it has filed for bankruptcy. the chapter 11 filing estimates the company's debts to be around 10 million dollars. the chemical spill caused 300- thousand people to be without water for several days.

let's find out now what this holiday shortened trading week has in store. for that we turn to scott bauer of trading advantage. volatility is probably the driving impulse this week. >>absolutely. we'll see the vix options for january expire tomorrow and then they'll roll over to february. so based on the heels of what we saw towards the end of last week vol had actually increased quite a bit. there's been a floor that set in in the vix of around 12. we closed at about 1270 or so. this has been an areathe last 3 or 4 times that it's hit up at this areawhere we have seen a pullback. meaning the market actually recovered a little bit and vol came down. but you know this is going to be a real busy week. starting this morning we've got earningsmajor earnings all week long. it's the heaviest week of the earnings season so i do expect some volatility. >>so earnings by definition means volatility or is there some condition right now that makes it so? >>no it really does in general.

even if you're in a real complacent market, during earnings season you do tend to see added volatility because you're looking at the s&p 500 companies and the dow 30 companies and these are the components that make up a big portion of the marketplace and of the vix. so it really does add some volatility. >>can you give us a couple of market movers we should be watching this week? >>i would continue to watch the banks. we have netflix out later today. we always see a big move in netflix and that thing has held really good around 330 so i would watch that. we also see coachwe've seen the retailers not do so well so far and now we're starting to look at the high end retailers, like coach. that could be a good barometer for that part of retail. the other retail has not been so good. >>scott bauer you have a good day out there. >>same to you. on her way up the corporate ladder at general motors, mary barra vowed that g-m would build "no more crappy cars." and her common-sense approach to g- m's ten-page dress code--was streamlined to two words--"dress appropriately."now that she's the first woman to

head a major u-s automaker--our cover story explores where g-m may be headed. mary barra, worked her way up from inspecting pontiacs coming off the assembly line 33-years ago to streamlining g-m's human resources rules and most recently overseeing g-m's global car and truck development to meet demand in 130- markets...a challenge she spoke of two years ago. "discipline in our vehicle development will speed product to market, and give a bump to quality." "it's interesting that they picked her over mark ruess, north american president for gm. it's an indicator to investors that gm's going to go after the european market and asia as areas for growth." growth in china is key. while u- s sales reached--15.6 million last year--a 7.6% increase, auto sales in china reached 17.9 million and grew at more than twice the rate of u-s sales. of that, g-m sold 3.1 million.far

outpacing ford, toyota, nissan and bmw. among g-m employees, barra's business nature is described as collaborative. "she's very inclusive. she's tough, but she knows it takes a group to make it a business like this." business consultant john murphy's book "zentrepreneur" elaborates on that philosophy. "are you someone who pulls people together or do you divide and play people off of each other. right there, you can find a true leader from everyone else." mary barra will receive a base salary of 1.6 million dollars and up to 2.8 million in incentive pay, along with stock options awards and bonuses.her predecessor, dan akerson's base salary was 1.7 million but his total compensation was 9.1 million in 20-12.akerson's last

act as ceo was restoring the dividend to shareholders. it's auto show season and the question is - will consumers pick up the pace in buying?kelley blue book predicts sales will increase nearly 5 percent in 2014. that would be on top of last year's better than 7 and a half percent gain.one of the big unknowns? fed policy. if it were to raise interest rates, that could scare aware some potential customers. employers are ready to hire. key figures prove more opportunities are opening up in the job market.in november -- employment openings hit a five- and-a-half-year high.four million jobs were available, up 1.8% from the month before.the number of americans quitting their jobs also hit a five-year high.however -- this data has not yet translated into a downward shift in monthly unemployment numbers.

china is still buying debt - ours.it increased its holdings of us treasuries by more than 12 billion dollars in november, that passed the record level of buying set in 2011.trader todd colvin with rj o'brien says the move doesn't raise a flag in his mind, just yet. "you should be a little cautious here. the chinese do own a lot of our debt but let's not forget who owns the most debt of u.s. treasuries and that's the us federal reserves, so i think right now where china stands as long as they maintain their steady purchases, it's a good thing but if they start to decline greatly or start to increase greatly, than i'd raise an eyebrow but for right now, it's probably status quo where it should be." china now holds nearly one and a third trillion dollars in us treasury dept.it will likely start to scale back its debt purchases as the federal reserve ends its bond buying program. traders are watching for the next step from two big names in

men's clothing. joseph a bank has rejected a takeover bid from men's warehouse of 57 dollars a share. bank said in a statement it's board considers the deal undervalued. reports say now... men's warehouse plans to pitch the deal directly to joseph a bank shareholders. the markets, industry and the public are still coming to terms this week with the president's plan to rein in government intelligence gathering. phone companies are bracing for the overhaul.a big question that remains is whether those companies would be responsible for collecting phone records of americans. there is some fear that might put companies at a greater risk of being sued. in sum president obama will end the broad collection of phone data by the national security agency, move the data outside of the government's control and will restrict eavesdropping on foreign allies. as the nation that developed the internet, the world expects us to ensure that the digital revolution works as a tool for individual empowerment rather than government control. the president said he has not seen any evidence of abuse in the nsa's data gathering and insisted it remains an imporltant tool to locate and prevent terrorist acts. apple is getting into the business of repairs.apple rolled out its repair system for broken

i-phone 5-c displays in its retail stores yesterday.it allows you to walk out with a fixed phone without having to reinstall applications and data in a brand-new device.for a broken display, not covered under warranty, the replacement will likely cost $149.that's less than what an entirely new i-phone would run you. smart glasses - now the smart contact lens, google x's latest venture into optics.this computer in a lens will monitor diabetes by tracking glucose levels in tears. it'll have a sensor and a wireless transmitter. what would this mean for millions of diabetics? no more pricking fingers several times a day to draw blood. remember wii? in 2007 it was all the craze - the biggest thing in video games. no longer nintendo makes the wii. and it's predicting plummeting sales ahead, even with a price mark-down. nintendo's also forecasting that it'll lose money, for the fiscal year ending in march.the next generation wii-u introduced, almost two years ago never caught on while its competitors, microsoft and sony have been gaining market share.

earnings this week - ibm, which is in a spending mood.first it announced it will move its watson computer system to new york city as part of billion dollar new business unit.it also says it'll spend a billion more this year to build as many as 15 huge data centers. the news helped propel the stock higher ahead of today's earnings report. it last closed at 189 dollars. and even more earnings: two major u-s companies had slow and steady results in the fourth quarter.morgan stanley's earnings hit 50-cents a share compared to analysts' expectations of 45 cents, based on a jump in brokerage earnings.but profits were hit by legal fees. meanwhile general electric's earnings came in right on line with estimates at 53-cents a share. g-e says rising sales in emerging markets and stronger global sales kept its profits growing at a steady pace. u-p-s put out a profit warning - blaming high demand? isn't that a good thing? not in this case. a spike in christmas shopping

caught big brown flat footed. to get packages delivered it had to hire 30- thousand more temp workers than it expected? well, this news sent its stock sliding ahead of its upcoming earnings report.the stock last closed down a half percent. pocket change is about to get a little lighter. the u.s. mint is considering a change to the metal mix used to make quarters, dimes, and nickels to cut the cost of making change.it now costs 1-point-8 cents to make a penny and 9-point-4 cents to make a nickel.the change is rattling vending machine and arcade operators, worried that a different weight may force them to revise mechanisms that recognize what's dropped in the slot. in a little more than 2 weeks the world descends on a tiny town in russia for what will be the most expensive olympic games in history.the town is sochi. the price is - around 50- billion dollars. 10 billion more than what china spent on the 2008 summer games and 3 times the cost of the 2012 summer games in london.what do you supposed russia expeced to spend when it won the games in 2007? oh, around 12 billion dollars. still to come:

how are traders reacting to california's deepening drought. that's our chart talk topic for tuesday. using social media - on the trading floor - the newest tool for gaining an edge. first up though, why your retirement may not be the retirement of your parents - after this in the know message. real issues they're dealing with

can be awkward and uncomfortable. but when their behavior changes, it's time to act. because if we don't, our families and relationships will suffer. listen to the veterans in your life and show you care. it matters. when you recognize a veteran is in crisis,

call the veterans crisis line at 1-800-273-8255 and press "1". you've heard the lament - "i can't afford to retire." or, "65's too young to retire." what's happening? so - more & more older americans are starting businesses.kauffman fast trac found, nearly a quarter of all new start-ups were launched by people between 55 and 64.michele markey is a

vice president at kauffman fasttrac. i guess the issue is that a lot of people realize that once you are in your 50's and beyond you're not going to get hired so, what's your alternative? start a business. >>absolutely. more and more people are coming to the recognition that there's a lot of opportunity in entrepreneurship. we've certainly seen a rise for the boomer population as well as others in general. >>the stereotype is that it's the young entrepreneur that's doing this so how well equipped and prepared are these older americans in terms of starting a new business? >>the older americans do come to the table with some wonderful experience and a lot of history. but with that they are also recognizing that there are certain things that they still need to learn about what it takes to launch and build a business. so they are prepared but they could use a little more preparation along the way as well. >>where do they come up short in terms of doing good marketing, advanced work, having their finances in shape?

>>absolutely. i mean, maybe somebody over their career has been a computer programmer for example, and that's great, but they don't maybe have the financial background or financial skills to understand what might be necessary to launch that businessor the legal aspects. so there are various components that boomers or any entrepreneur needs to think through as they are looking at how to best enter the marketplace. >>what about the downside. there is obviously risk. you are rolling the dice when you start a new business. >>absolutely. for the boomer there's more significant concerns especially in the fact that they have less time. where we see a lot of businesses launch and maybe failand that's okay. boomers don't have a lot of time to make up a failed business. their entry and exit are much closer together so the math has to work for what it takes to enter and exit successfully. >>michele markey thanks so much. >>thank you.

coming up...chart talk - and the impact of drought on some stocks. and after this, the new investment strategy tool. social media - it's not just for sharing pictures & gossip.

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social media has transformed from a fun way to share pictures with your friends to a sophisticated method for companies to shape their image.here's the story of one firm that's taking it a step further.diane moca reports. far from silicon valley... chicago-based social market analytics has the feel of a west coast start-up -- a trendy loft office with an open bar and drumset in the lobby... a team of hipster web developers and programmers... and a cool 'next generation' concept -- turning twitter's non-stop traffic into relevant data that can be mathematically analyzed

and spit out to traders. "i can give you a heads-up when something is happening in the market." chartered financial analyst joe gits says he founded social market analytics because his clients kept asking for a way to track and quantify the market noise on twitter. "this was the sentiment changes around the fire, when that tesla car caught on fire... this was breaking in social media well before it came in the market as a whole." the company's software grabs all 500 million daily tweets and pulls out only those from professional traders and key players -- about 400,000 certified accounts. then the system determines which of those tweets have relevance to the market... and uses that chatter to generate a positive or negative "sentiment score" for the 3000 largest publicly-held u-s companies -- updated every single minute.. 24/7. "twitter beats cnbc. if cnbc is finding out about it on twitter, we've already read it, quantified it, and sent it out to our clients."

a stock research director from zacks has his doubts... and says investors want the kind of thorough and rigorous analysis that's outperformed the s&p 500 for 23 of the 26 years his firm has been providing investment advice. "i could pick a restaurant or movie or book from the buzz or twitter feed but i'd be very hesitant to recommend anybody to pick stocks and make investments based on that kind of analysis." but dozens of money managers and hedge funds are paying from five to fifteen thousand a month for sma's constantly updated reports... and sma just began offering a user-friendly dashboard to day-traders for 29 to 99 dollars a month. partner mike grossman says investors who opened and closed the market trading sma's 'sentiment' winners would be up over 50 percent in the firm's first two years -- a time of rising stock prices. "it has to prove itself over all parts of the cycle to be taken seriously." joe's team proved themselves to the new york stock exchange... who signed on as a distribution partner to provide its members with "sentiment scores" from sma. diane moca...for first business news. the ceo of sma says his reports

should be just one part of an entire model used to make buying or selling decisions about stocks. coming up...america's number one ag state is stricken by drought - how will that impact the markets. you'll learn something important next, in chart talk.

you probably heard or saw the newsall the fires in california. it's a draught out there. the other day the governor of california declared that vitally important agricultural state a disaster area. how are traders reacting to that? let's talk to jack scoville. he is with price futures group. jack you are a commodities guy so what are you looking at when you hear stories like this? you've got a main agricultural state that now for 3 years has been in a terrible draught. >>it really has. there are some commodities that we trade here at the board of trade that

would be directly impacted. one would be dairy. if you look at the milk price charts or the cheese price charts or even butter prices, those have been moving up sharply and really going beyond any technical level that you might want to look at. in fact if you look at the weekly charts for the whole milk or class 3 milk, which is used i believe primarily for cheeseor for the cheese futures as wellyou can see that we're flirting with some all time highs and highs that we haven't seen for a couple of years. some of that has to do with a very strong demand profile. we're selling a lot into asia these days. we're selling a lot of dairy products into the middle east as well. a lot of it has to do, i suspect, with this draught that's going on out in california. besides the midwest and the northeast, california is a huge production area. a lot of milk produced out there and

quite a bit of cheese produced out there as well. >>how about rice? isn't there an impact on the rice market? >>the rice is grown up around the sacramento valley. they directly depend on the water that comes out of the reservoirs and right now with no snow cover there's not going to be any run off. so the reservoirs are at about a third capacity. they've got potential for a real problem this year. i suspect we'll see acreage and we'll see medium and short grain, which are the oriental types of rice, could see somewhat higher prices. so anybody related to oriental type of riceanybody using it in their products will be looking at some higher prices down the road. >>in a nutshell, so to speak, the diamond almond company is also being impacted. >>almonds, pecans, and a lot of specialty nuts are major revenue producers for out there in california. even though those are grown on trees, you're definitely going to have a yield impact if they don't get the rain that they need. >>jack scoville thanks a lot. >>my pleasure. that's a wrap for us this tuesday.coming up tomorrow -- socially responsible investing.find out why corporate culture is becoming more important to some investors than ever before. we hope you'll join

us. from all of us at first business, i'm bill moller. thank you for watching. >> announcer: the following program for the new walkfit platinum orthotics is proudly sponsored by ideal living. coming up, as part of our comfort spectacular, you can cradle your feet in comfort anytime you want with our all-new memory foam slippers, a $30 value for free! made of a soft and luxurious velour top with durable anti-slip soles, the form-fitting memory foam insoles shape to your feet, for unmatched custom comfort. and they're yours just for trying the walkfit platinum orthotics, giving you pain-free comfort and stability with every