the big bad "wolf." is a film about wall street about to derail a stock market rally? in today's cover story....fast money.. why start ups are being flooded with funds. and....super fan. the guys look back at the best and worst moves of warren buffett's career. plus, flying games. how the airlines intend to make money on the super bowl. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's friday. january 24th. i'm angela miles. in today's first look: a big market downer.

stocks collapsed thursday on signs of slower manufacturing growth out of china. the dow slid 176 points. the nasdaq 24 and the s&p 17 money rushed to gold with futures trading up $23 dollars. and, oil is now above $97 per barrel. in earnings after the close-- microsoft beat profit and sales targets. the stock gained 3% in after hours trading. starbucks profits perked up but the coffee chain had a sales miss-a report says apple is developing a smart phone with a larger screen. and playtex recalls 1 million pacifier holder clips due to potential choking. let's say good morning to ben lichtenstein at traders audio who has his eyes all over this market for us. good morning ben. >>good morning to you. >>the market is giving us this sinking feeling. do you think yesterday's plunge will continue today? >>i think yesterday's activityalbeit high energy, albeit high conviction to the downsidevery limited in terms of real follow through and very

limited in terms of its breach of any major support. we're looking at the 1809 level in the s&p's. that's key support down there. we really got nowhere near it yesterday for the most part. i alos want to point out very little follow through. we actually came off the lows. that's one thing that i really look for is that acceptance or that rejection of certain levels as you're probing and that auction process. for the most part the probe lower was somewhat short lived. there are no numbers scheduled for release today so there's gonna be a lot of focus straight on the technicals today. so it's really anyone's guess at this point. but a lot of major markets on the move yesterday so the spring is coiled and has potential to carry over and see some follow through today. but it's anyobe's guess at this point. >>one of the active markets is definitely happening in the energy patch right now. we're watching natural gas. do you have any kind of cold play? >>there has been a lot of focus and energy and interest in the natural gas. we have been coming into these eia gas reports and yesterday as well with the anticipation of a record draw we continue to see these draws of over 100 bcf. yesterday fell right in line.we have yet to release to the upside in terms of that draw but it's starting to create a lot of

interest. for the most part not only in the natural gas, today there was a big bid in the crude. we saw the currencies on the move yesterday, we also saw the metals on the move yesterday. yes, it's the energies, the equities, the metals. across the board for the most part currencies as well. so we're keeping a close eye on the dollar and all the other majors. they're coiled right now and set for a big day today. in terms of directional conviction it's anyone's guess right now with limited numbers ahead of us. >>our thanks to you ben lichtenstein. >>my pleasure. thank you. herbalife is the stock to watch today after its dramatic tumble yesterday. shares plunged $7 dollars thursday closing at $65.90. that's after massachusetts senator edward markey called for a federal probe of herbalife's business dealings. markey says many of his constituents have lost thousands of dollars selling herbalife products. the senator wrote to the company listing complaints and questions and he wants a response by february 28th. an herbalife spokeswoman tells first business..."we received the letter from senator markey this morning and look forward to an opportunity to introduce the company to him and address his concerns at his earliest convenience." herbalife sells nutritional and weight-loss supplements through individual sellers.

neiman marcus is alerting customers 1.1 million credit cards may have been hacked. according to a statement to shoppers on its website-- neiman's confirms software was installed to collect the data and that social security numbers and birthdates were not compromised.the hacking spanned between july and october. it's estimated 2,400 of the credit cards were later used by scammers. meantime, a february 4t date is set for a senate committe to take up the massiive data cyber breach at target. the retailer's cfo will appear at the hearing. the fbi is warnings retailers to prepare for more cyber attacks. 20 cases were discovered last year. even as sears sells off divisions and closes stores, the retailer is laying out an ambitious hiring plan. sears plans to hire 65-hundred veterans and military spouses in 20-14. that's in addition to the more than six-thousand it hired, last year - and twice the number hired in 20-12. overall, sears currently employs more than 30-thousand veterans. walmart is creating a $10 million dollar fund to support u.s. manufacturers. the retail giant also has plans to buy an additional $50 billion in products made in america during the next decade. it follows a

trend of more u.s. manufacturers bringing jobs back to american shores as chinese workers demand higher wages. the smart money among venture capitalists is on any application that enhances mobility. v-c funding for mobile surpassed a billion dollars for the first time in the 3rd and 4th quarters of last year, according to venture capital database, c-b insight. financially speaking, staying connected has staying power. and as our cover explains, it's just one key trend for start-ups in 20-14. venture capital investments in mobile and telecom start-ups went up three percent, last year. and now account for 16% of all v-c deals. the mobile company that took home the most money was car-for-hire app "uber" with 285-million dollars. uber launched in 2009 and now pairs drivers with passengers in 26-countries worldwide. at a seminar for start ups, funding in 20-14 will likely come from non-traditional sources. "the funding for start-ups in 2014 will come from private investment, crowdsourcing such as kickstart or indigogo and entrepreneurs investing personally."

one start-up, contextmedia, which provides healthy lifestyle tips to patients in clinics has grown annual sales into the multi-millions. --allowing its co-founders to invest more than a million dollars in 22-other start-ups, many of them-- health-related. "there's two things start-ups need to know when contacting physicians, they don't want the coolest and newest. they want the tried-and-true tested and error-proof. if you can partner with an institution--that will also help you be adopted by physicians." the seminar's organizers, chicago digital startups incubator, "1871" also shared another trend, paring away business functions that are not the core of your business. "wasting resources on hr is not going to differentiate you. you need to shed those and stay on

top of what's important to your business." tullman suggests that starts ups won't lose cost containment abilities by outsourcing because of increased competition among service providers. overall, more venture capital money went to internet companies that anywhere else--the fourth quarter of last year, the strongest in two years. treasury secretary jack lew is warning congress the debt limit will be reached by late february. earlier lew indicated it could take until march for a debt default to happen. speaker of the house john boehner says the u.s. should not default on its debt-- but a clean limit increase won't pass in the house. democrates are hoping the debt limit will be increased minus drama. also-- president obama plans to release his 2015 fiscal budget march 4th...a month later than usual due to to the delay in passage of the most recent budget deal. in davos switzerland...the

world economic forum comes to a close tomorrow. corporate leaders "opened up" on an array of topics. the ceo of u-b-s says there is "no reason to get excited" about europe's economic recovery, predicting some banks might fail upcoming stress tests. marissa mayer of yahoo was optimistic when she called 20-14: "the tipping point for the internet." and... j-p morgan ceo jamie dimon spoke up about the bank's recent 13- billion dollar settlement. dimon called it "unfair" and said the mortgage deals that got the bank in hot water happened before j-p-m was in the picture. toyota is the world's top selling automaker. the japanese car company outsold gm by 270,000 cars and trucks last year and intends to sell more than 10 million this year. no automaker has ever had worldwide sales of topping 10 million. shifting now to general motors...mary barra-- the new head of gm says in her first interview as ceo, she hopes to revamp business in europe and improve profit margins, adding that gm's chevrolet and

cadillac brands need a revamped image. cadillac just revealed it will increase the price of its new escalade by a hefty eight- thousand dollars, due to upgrades. tesla's model "s" cars go on sale in china...and the price tag is 50% higher than in the u.s. the car company is charging $121,000 for its luxury sedan as it tests the demand for electric cars. tesla shares charged nearly $3 higher thursday. in our earnings wrap...it was a mc-miss for mcdonalds. the chain reported weaker than expected results, with global sales down a tenth of a percent. however, it was a solid quarter for two airlines. united reported a profit, as revenues increased , and fuel costs fell. but, shares sank in anticipation of a weak quarter ahead. it was a record breaking quarter for profits at southwest, and the company's ceo is optimistic of the year ahead. on the ground... union pacific saw profits pop thanks to higher traffic of grain, automotive, and industrial goods. the stock jumped 3%.

on the home front... existing home sales rose 1% in december from november. overall sales for 2013 hit 5 million. the most in 7 years. there was also a surge in sales of foreclosures. distressed and foreclosed homes made up 16% of sales in 2013 up from 14.5% in 2012. a significant amount of those homes were purchased with cash. if you've ever dreamed of a mansion in the hamptons...prices are coming down. prices in the luxury stretch of long island fell 2% in the 4th quarter, compared to a year ago. and, according to a new york real estate report, inventories were up by 53%. the stats are causing concerns of a slowdown in the high-end market. the average home in the hamptons will run you one-and-a-half million dollars. an oscar nominated film about wall street could mean the end of the bull run in the stock market. "as the wolf of wall street" plays out at the box office. one market technician says in a report on cnbc.com-- it's a sign "interest" in the

market has gone mainstream. and when that happens, it tends to be curtains for a big rally. a prime example, the market crashed suddenly two months before the release of the film "wall street". u.s. athletes preparing to compete in the olympic games in sochi will sport american made uniforms. at the last olympics designer ralph lauren was criticized for uniforms made in china. this year the pants, caps and cardigans big on stars and stripes were made in the u.s.a. still to come: learning from mistakes. in traders unplugged the guys break down how even warren buffett overcame losses to become an investor icon. plus... is this superbowl spot about to change the way companies advertise? and a travel guru tells us why now is prime time to book a ticket to the superbowl...that's 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".

with the super bowl contenders picked this past weekend and the big game itself just more than a week away, the super bowl is putting super stress on flight schedules between the airports around new york city near to met life stadium and denver and seattle - the home cities of the two competing teams. with most flights mostly full these days - what are the airlines going to do to accomodate the sudden surge in demand for seats? just for super bowl fans, the major carriers are again going to add extra flights. johnny jet is editor in chief of the travel information website johnnyjet.com. what carriers are doing this and how soon after the 2 superbowl contenders were known this past weekend did they add the flights? >>the big game was on sunday and monday morning i woke up to 2 press releases1 by united airlinesthey've added 15 flights to newark from denver and seattle combined. also, jet blue has added flights to jfk.

the good thing about newark is that it's right next to metlife stadium. you can almost walk there. it's not that closeespecially because it's going to be freezing cold toobut it's nice and convenient so united has not only added more flights but they've added bigger aircraft. so they are flying triple 7's from seattle and from denver. >>they've done this for super bowls in past years. are there any other eventsquick turnarounds, sudden announcementsthat you've ever heard of that the airlines respond to by adding flights? >>for sure. if there is a big weather delay or cancellation and they had to cancel a flight from the caribbean to the northeast they will bring in a much bigger or larger jet. instead of maybe an a320, they'll bring in a triple 7 if they can just to help capacity. usually when there's an olympics or the world cup or any kind of major event, they do it. >>this really wasn't a problem not too many years ago since

they've changed their flight arrangements. now, fewer flights in the air and fewer available seats. >>when the airlines went through that big financial crisis they cut back so many flights and they actually parked a lot of planes out in the desert. they just reduced capacity. so that's why you see these flight loads almost 86% these daysi think that's the average. when i fly i rarely see a seat open next to me. that's why you have to try and fly on days of the week when most people aren't flyingwhich is a tuesday and a wednesday. >>johnny jet thanks so much. >>thank you. one retailer is counting on cashing in on the super bowl-- with an expiremental ad...in it's second superbowl commercial appearance , h&m is integrating so called "t - commerce". it's a new, faster way of shopping that gives fans with smart tv's an immediate way to click on a screen link to purchase items in the commercial. "so if you want you can click on the items and you can pay and we're going to deliver it home to you, so it's going to be

very conveinent and one way to be innovative, showing new ways of doing retail for the future." daniel kulle, president of h&m north america tells us the company is the first with tech move. the edgy spot, starring soccer star david beckham airs during the game february 2nd. coming up...scare tactics. how one trader is playing the element of fear in this market. and in traders unplugged...is buying up a sportswear stock a rookie mistake? we'll be right back!

elaine: it was 17 years ago when i decided to become a mentor that i was assigned to christina. when she was in the first grade, she was a shy little girl, not able to smile much. christina: elaine showed me there were people out there to help me and guide me through life. when elaine let me read her diary, i didn't even realize how important i was to her, and now that i'm mentoring, i feel that same importance, and i can spread those same values

to the girls i mentor. be someone who matters, to someone who matters. on this frigid friday for much of the u.s. alan knuckman and scott shellady join us from the floor of cme group. they are here to warm our hearts with traders unplugged. good morning and let's get it going with round number 1. scared and scarred. is the vix sending off

signals that investors fear a selloff is coming. alan: i think people are usually wrong and they open interest in the vix is reached its highest point ever. the vix has been below 10 back in 2007it was at 987. so we still have a lot of downside as the market gets more complacent and goes higher. scott: we've seen this happen before and i don't think it's gonna go down as much as folks expect. we did have a non participatory rally last year. i still think there's a lot of money on the sidelines alan: so you're bullish? scott: i think we're gonna taper because it's a failed economic policy, the economy's not doing well. they'll do another stimulus and/or they'll add to the stimulus. alan: i don't even know why! where's the market gonna go? scott: at the end of the year it will be up. angie: round number 2long odds. quicken and warren buffett are offering 1 billion dollars for the perfect bracket for march madness. what have been buffett's best investments?

scott: i think this is a great investment actually. i'd like to throw my name into the ring. i would also like to give a billion dollars for a perfect bracket because the odds of giving a perfect bracket 1 in 9.2 quintillion. i do like his railroad investments and i don't like his goldman sachs investment. but at the end of the day, it's 1 in 9.2 quintillionif you happen to be a basketball expert it's 1 in 128 billion. alan: coca-cola is his best investment he bought in 1998. look for that stock to go up to 49 based on the technicals. so it's got another 25% on the upside. but remember he lost 1.2 billion dollars one time when he looked for the dollar to go down. he pitched out the position because he went against his strategy of hold forever and eventually he would have been right and he would have made a lot of money because the dollar made new all time lows right after that. angie: round number 3athlete's feet. under armour signs a reportedly $100 million deal with notre dame to supply uniforms and more. would you buy this stock? alan: no. i don't want notre dame and i don't want under armour. under armour stock is up like 700% off its lows. it was a $5 stock just a few years ago. it's gone too far too fast. it's outpaced nikewhich is a

real brand. i will say one word: reebok. scott: every time i do this show it seems like there's an athletic question. all of your 98 pounds are doing well in that space. i do not like it either. i think that there are other people moving into that space. we've seen that earlier this year. i also think that the notre dame investment is a bad one to own. to hitch your wagon to that horse i think is the wrong thing to do. angie: on to the bonus roundjelly belly is out with a new flavor. which one is it? cappuccino, draft beer, or tabasco. alan: i know the answer to this one. go ahead. scott: i don't know the answer to this one. alan: what's your favorite? scott: beer. angie: the answer is beer. good job. we're back after this with chart talk.

a hectic day could be ahead for vix traders at cboe. joining us now is trader dan deming who trades options and futures on

the vix. good morning to you dan. >>good morning angie. >>we had a big bounce in the vix yesterday but it's also earnings season. so what is this telling us about earnings? >>we're seeing mixed bag as far as earnings are concerned. i think that's partly playing into the mindset of market participants as we move forward. we're basically seeing the market having a very difficult time breaking through the high end of the range. in terms of the s&pthe 1850 area. we saw some significant weakness yesterday. particularly in the morning where we saw the vix spike up quite significantly. up to 1466 i believe. right now the market is in search of what that catalyst is going to be and it doesn't look like earnings is going to be an area where the market's going to find maybe that next step forward. i think with that, you're seeing some concerns here. and that's why you're seeing some pretty significant hedging or counterplays going on in the vix to kind of hedge out some upside risk. >>if earnings can't drive the market higher, what do you think in your trader mind could?

>>i think as we move forward through this first quarter, first of all we're up at loftly levels and i think that we gotta get through this debt ceiling situation. i think you're going to have some more difficulty with this market moving forward over the next couple of weeks into probably the middle of february depending on where they draw that line on where the debt ceiling's gonna kick in. if they can't get that resolved i think you're gonna see an increase in volatility expectations. i think that's why you are seeing significant buying in the vix right now as far as the calls. and even the futures traded very heavily in march . so you're seeing the front end of the spectrum being played heavily right now because there are concerns going into february that the debt ceiling could wreak havoc with the market. >>that's a great point. thank you dan. >>thanks angie. that just about wraps up our week.coming up monday.new trends in shopping. why retailers are going to have work extra hard this year convincing consumers to spend like it's 2013. from all us at first business - we hope you have a good end to your week.

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