stock fears in focus...money handling market turmoil.. in latest target for hackers. and.. that the little start up that became our rock rise a high an overnight sensation following by super bowl sunday. first business starts now! good morning! first look: two words-- market meltdown.in one of the worst days in months on wall street... the dow fell a if steep 326 points monday, the nasdaq 107, and the s&p 41. gold gained $17 but that was a relatively small gain

considering the money that was coming out of stocks. oil lost 90 cents.the vix takes a flying leap-- the gauge of anxiety rose 16% to 21. most of this had to do with a surpsing drop in manufacturing the ism index for january plummeted to 51.3 from 56.5 in december. yum brands stands by its outlook.shares of the owner of kfc, taco bell and pizza hut rallied 3% after reporting earnings last night that topped estimated. sales and profits however, were still effected by the bird flu issue from back in 2012. joins us now and we like to think of the bond market as a safe play. you are watching what's going on with bonds, so is the risk on or off in the bond market? > > well definitely i'd say it's a little bit of a risk off

environment right now. january was a tough month for stocks across the the world and a good month for bonds, and yesterday continued that trend with the manufacturing number disappointing and bonds continuing to rally a little bit in price and stocks continue to sell-off. > > we have a slew of of economic news coming in later this week including the jobs number so is the bond market indicating anything about jobs. > > yeah that's an interesting question, you know, the fed's got a tough thing on their hands right now because they've said that if unemployment drops below 6 1/2% that they would begin to raise short-term rates, but the labor market is really-- it's a complicated market and they realize that they can break it down into one single number. ultimately the fed needs to figure out who in this country wants to work, and who is retired and once they get that figured out then they can figure out what they're going to do with short-term rates. > > good to have you on the show thanks for that update.

> > thanks angie. 24 states from the middle of the nation to the east coast are bracing for a mix of heavy snow and ice today and tomorrow-- as the economy also takes a winter wallop. the weather-- is hampering retail sales. and last month, manufacturing slowed as orders declined. some automakers also blamed bad weather. chrysler was the only car company to pick up steam in januray with sales rising 8% compared to a year ago. however, gm sales plunged 11.9% and ford fell 7%. i think it is more of a momentary blip, i mean january was a weak month but we have to keep that in perspective with the fact that january is one of the lowest months of the year in terms of total sales volume so we should be able to recover pretty well to break that 16 million mark by years end. that was kelsey mays of cars.com. the second polar vortex may have been a major factor in causing car shoppers of the few states that avoided an auto sales slip.

constuction spending is in of building. the government reports-- builders started work on the most new homes since 2007. spending reached $330 billion last year up 18% from from 2012. however, there are concerns the new homes being built are increasingly expensive and gains in the job market might cause house to be unaffordable. no doubt the new chair of the fed-- janet yellen is closely watching the economic data.. in an historic moment-- yellen was sworn in as the first woman to run the federal reserve monday. the previous chairman ben bernanke stepped down friday. he is taking a position with the brookings institution as a distinguished fellow in residence. a recent report from the federal reserve notes an business and consumers. on the heels of the massive data breach at target comes word that thousands of us hotel guests may have had their credit and debit card data stolen. according to a security researcher, the stolen data came from computers at white lodging services -- the if indiana-based company runs franchised hotels in the u-s for hilton, marriott, sheraton and westin hotels. all told 168 hotels were affected.

fraudulent purchases were made at the hotel's gift shops and restaurnats. white lodge is investigating.. the rough winter weather is tough on traveler's wallets. an airline operations group "mas- flight" tallied the economic effect of 49,000 cancelled flights in jaunary. passengers spent $2.5 billion in lost productivity and expenses. airlines lost between $75 and 150 million. and there's more.. in the first 3 quarters of 2013-- airlines made $2.6 billion from baggage fees and an additional $2.1 billion from reservation changing change fees according to usa today. the paper also reports-- "new" ticket change fees or overwieght bags will cost $400. a spokeperson for the airline industry says customers have a "choice" over what they purchase. united airlines plans to drop cleveland, ohio as one of its hubs. the cost-cutting move will mean the loss of about 500 jobs. in a note to employees, united's ceo called the decision a result of a lack of demand. united will still fly to cleveland but the number of if flights will decline by 60%. according to untied the cleveland hub has not been

profitable for a more than a decade. in our cover story, more than a month after being fired by email three days before christmas, employees at a chicago sandwich shop claim a victory for minimum wage workers everywhere. observers describe it as a company cutting its losses after a labor relations bungling. as many as 20-fired employees of snarf's, a denver-based chain of more than a dozen sandwich shops claimed victory from a settlement with their former employer. reinstatement of their jobs and a month's pay--- in check's handed out at a news conference. we are letting every fast-food worker and every big business know that there are new ways to be treated in this country. they were fired by email without warning three days before christmas. the company said it was to remodel its northside chicago sandwich shop but employees suspected their termination was to retaliate for circulating petitions and

staging protests to raise their wages. they gave us an indication that they weren't happy but we never thought we'd be fired in the manner we did. in a statement, the company said it reached an agreement, that "both sides believe is fair." former employees were paid one month's severance and offered reinstatement." i think they were thinking, if they were thinking, that they thought they could do this and these people would quietly move to their next job. starkman adds that he thinks labor's support of fast-food workers in chicago was underestimated. the "fight- for-15" organizaton has staged vocal protests for more than a year to raise the minimum wage. on behalf of snarf employees, it filed a complaint with the national labor relations board. snarf's said "some employees accepted reinstatement while others chose not to." but those who return do so with enhanced protections. they have protections because they are whistle-blowers and that's a protection newly-hired employees won't necessarily have.

a roasting record heat wave in brazil is perking up coffee futures.. futures rose 7% to the highest level since last may. for most of 2013-- coffee makers were lowering prices at the consumer level because coffee prices were down. there's still if a surplus of coffee beans so it's not expected starbucks and others will charge more near term. earnings from the company of yesterday, gave a healthy $4 boost to shares. herbalife investors shook off comments from activist investor bill ackman... who has questioned the company's business model... deeming it a "pyramid scheme." now, ackman is accusing herbalife of employing distributors with a criminal backround. the company declined to comment. the stock rallied four dollars. a wave of relief is happening for the carnival cruise line. the company reports january bookings rose 17%. the ceo attributes the rise to

product improvement and attractive promotions. this is a typical time of the year when people sign up for cruises. but the industry has been dealing with a flu like illiness that spread quickly on a royal carribean ship as well as the carnival princess. hopes are high for an expirimental breast cancer drug from pfizer. in a trial of patients in the middle stage of the disease-- pfizer said the drug palbohsyklib, significantly improved survival rates by blocking enzymes that enable cancerous tumors to grow. the drug now requires approval from the food and drug administration. pfizer stock was one of the few dow stocks up on the day. the next hot tech gadget out of apple may be a watch that is powered by the sun. the new york times reports the tech giant is testing solar and wireless charging for its rumored i-watch.the rumors started after apple ceo tim cook told the audience at tech conference "the wrist is interesting".

gas prices are taking a turn for the worse. the cost of a gallon of unleaded has risen above 3 dollars in every state. the national average is 3 dollars and 27 cents according to triple a. last year-- the oil market cooled off, sending gas prices below three bucks per gallon. however, the frigid winter weather and rising tensions in the middle east and africa has prices rising. the number of kids getting a weekly allowance in excess of $20 per week has jumped considerably. the amount of parents handout an allowance between $40 and $50 every week has quadrupled. the research by t rowe price for reuters names an improving economy as a factor. a toy startup is on its way to becoming a household name after the superbowl. you might remember this super bowl spot from "goldieblocks. a toy company that makes science and tech related toys for girls. debbie sterling, the founder, tells us the ad aired as goldie blocks goes mainstream in stores including target and toys-r-us. when i started out, i really wanted to disrupt the pink aisle and recruit more girls to get involved in engineering and

technology, it's where all the jobs are going and girls really represent our largest untapped resource. meantime.... a superbowl ad may have helped give one stock a major boost. after sunday's radioshack's 80's themed ad the stock rallied as much as 7% during trading, before closing up over 3%. still to come: why the post office is moving away from mail to keep from going under. plus for those of you feeling fearful of this market. stay tuned for money managers who have some calming words. also ahead-- a new tool to help you calculate how much investors make and lose in the stock market! we'll be right back!

fifthit might be a tad unnerving losing ground and it has average half's investors feeling queasy. joining us now by skype ed securities here to calm our fears good morning to you. > > hi angie. > > what should people do in this market what are your clients asking you? good year last year. january's sort of a wake-up call for a lot of individual investors. you know their january statements won't seem to be too painful but know, the february and march statements might be just a little bit less able for them to handle. > > are you planning to tell clients to stay the course or do you think it's time to put some money to work or maybe to take some money out of the market? yeah that's a great question and i think for individual investors, it's more a function that we think again we're going to have sort of this eu crisis that we had back in 1997 with a currency crisis so i think i don't see that in the future, i

don't see that in the near term as long as the emerging markets stay the course. > > what is your game plan? well right now we're kind of hedge the market right now. we're looking at one of the things we're really concerned with is a lot of the hedge funds that are out there had a pretty dismal year last year so from that standpoint there might be a lot of money and a lot of trading money heading into those emerging markets to try to capture some of those down side gains and that kind of exasperate whatever move might happen. those are the things we're really watching and paying attention to right now. > > ed, what can people do who are nervous so that they can sleep at night? > > yeah nerves and the stock market kind of go hand in hand. if you're investor who can't handle the ups and downs, forget about long-term retirement because you're going to worry yourself to death. so you want to find that balance that makes you comfortable enough to be able to withstand the downs of the marketplace, but more importantly you need those equity gains for long term because even an average retiree let's say he retires at 65 is going to be around for potentially another 20 + years. > > it's good to have some safe play money and some risky money in the market. good to have the on the show ed. we feel better already. > > thanks angie, have a good day. "remaining calm" and making wise decisions-- when the market tanks can pay off over time. bankrate released a calculator which tracks gains according to the s&p's performance throughout history. sheyna steiner of bankrate explains why not panicking is a good thing. the basic gist of it is to show you the power of compound interest. if you stay in the market, you'll have a much better chance of making more money, than if you're jumping in and out when you hear bad news. given the current downward trend steiner says investors may be tempted to pull money out. and sometimes taking 'some" money out can be profitable. however bankrate finds if you put 10 thousand dollars in the market in 2004, it would have doubled to 20 thousand by riding out the financial crisis.

thanks chuck! coming up... stock survivial guide. more on navigating this rocky market, later in chart talk. plus... plan of attack...why the post office might be getting ready to compete with banks. bill moller joins us next...

for so many generations it was enough to just deliver the mail. but in the electronic communications age, well, the u.s. postal service is now a money losing enterprise. to try to staunch the red ink it's trying all kinds of things - including, becoming kind of a financial services store. business reporter becky yerak wrote about this for the chicago tribune, and gosh becky, didn't they just raise the price of a stamp? obviously it ain't enough. > > they did, bill, but they need more help. you know people used to. so the post office has come up with what it calls, what it literally calls a killer app a of a to diversify its revenue base thigh and that's to get more heavily if into the financial-services industry.

> > ok what kinds of things? it's not going to be offering loans is it? > > well i'll tell you what they currently offer. they currently offer money orders and international money transfer. so they're already in this business a little bit, but they're also talking about getting into prepaid cards with the post office brand, bill payment services and, yes even small loans which has banks upset. > > yeah, well they're already squawking apparently. > > exactly. > > well now you already have a lot of stores in a lot of urban areas and it does sort of seem to make sense, but is there a market for this? > > well, the post office estimates that these people who are under banked or un-banked who don't have relationships with traditional banks they spent about $90 billion a year oona's on alternative financial ellen services like check cashing places, payday lenders, and the post office in this big

report they put out estimates that if it gets only 10 percent of that business it could generate revenues for the post office of about $9 billion. > > that's pretty dramatic considering how big their debt is right now. you know it's really not all that surprising because i know that other country's postal operators do these kinds of things. > > yes other countries post offices in other countries do offer these types of services fact and the post office in the united states they also make the point of we're a trusted brand so they think that the consumers here in the united states will really go for this. so maybe sometime this year. do you have any idea when the roll out might be? > > no as of right now this is just kind of a plan that they floated but they floated it in a 33 page report. this was not an offhand remark that a postal official made. so this is lot about. tribune, thank you so much. we are not done yet-- still to

come more words of wisdom from a advice on how to handle the market. chart talk is next if

matt shapiro joins us now to talk about the correction in the market. good morning matt. > > good morning angie. > > the s&p has had about a 5 percent correction from the high. so what is your plan here? what are you doing are you staying the course?

> > oh absolutely i'm staying the course. no one likes corrections and this one actually has been kind of a slow-motion train wreck with fisrt starting with some general profit-taking from what was the great 2013. then we had fears of emerging markets and then a good but sporadic earnings season. so now where just everything is sort of getting hit and the first marching order really is to look at the charts of the stocks that you like that are still very high quality and a lot of them are at very good and technical levels. certainly the market touched a very strong technical support level at least the in the short term yesterday. > > but matt, some of the big and high-yielding, comfortable, conservative stocks money managers have been telling investors to buy are getting hit very hard now. should they start to take some money off the table? > > well you have to decide what your level of commitment is to stocks. i am of course a quality manager and unfortunately those stocks actually aren't really providing a place to hide necessarily and in fact funds that have been exposed more to facebook or tesla actually seem to be holding up a little bit

better, but at the end of the day everything is going to come back in line and actually those quality 3m's united technologies-- stocks like that are the first place to go to to correction. > > what else is performing well in this market? has done better than most. people are finally also getting back into utility stocks. remember last year anything with a dividend was not that great, but this year everyone's got whom tiptoeing back into all your general utilities and they have held up better, actually, than most, angie. thank you, matt. > > you're welcome. don't miss our show tommorrow.. does not have to be expensive.. find out how to spot hidden hidden fees and commissions that often go unnoticed. from all of us at first business, thank you for watching today have a good and safe tuesday.

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