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tv   First Business  KICU  February 6, 2014 4:00am-4:31am PST

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are the days of "big tobacco" over as one drugstore chain butts out of the business. in today's cover story.... from boot camp to business owners. a new effort to help women transition out of the military. plus.... in movies and money.... this film has a "monumental" cast... but our critic says...is missing something... and......a man turns a childhood dream of living in lego land into a real career .. first business starts now! you're watching first business: financial news, analysis, and today's innt ideas good morning! it's thursday, february 6th. i'm angela miles. in today's first look: the market mulls over jobs. stocks stayed near the flat line wednesday, as traders await
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direction from this friday's jobs data. the adp report out yesterday showed 175,000 jobs were added to payrolls in january below the predicted 180,000. twitter tumble trouble...the social media company reported a wide loss in it's first earnings report. revenue rose but user growth was weaker than expected. the stock plunged 9% after the close. green mountain stock grows-- shares surged 40% after earnings topped estimates and breaking news its' signed a deal wtih coke for an at home beverage system -- bursting the bubble of investors in soda steam. at least for now.. scott shellady of trean joins us now for the lowdown on the market. good morning to you. >>good morning. >>with the jobs number coming out on friday stocks seem to just want to sell off. what do you think scott? >>yesterday we basically settled kind of flat. i think what is really important is today and whether the ecb comes
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to our rescue. the hope pushed bonds lower and those yields higher thinking that something might be done but if we don't get some help todaywe need some help from our partnersboth europe and asia. i think they punish stocks and it could make tomorrow's non farm number a non-event. so keep an eye on the ecb today. >>we will. what about your protection plan in case that does happen? >>we're bracketing that 10 year rate between 250 and 290. we've breached that 260 level. we got to 258 a couple days ago. so when we get up to these levels we're looking for puts to be purchased and also calls. so we're lookingto bracket our position around that 250-290 rate yield in the 10 year and that something that we're gonna play for the short term. >>the march contract on natural gas made me smile yesterday. it actually was down which means that at some point winter will come to an end. >>the old traders would say we've got the calendar on our side in this one and don't let
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the calendar surprise you with spring and being long nat gas. yes, we're gonna see some sort of backup here in those prices because we're gonna get some warmer weather. but i think finally after a long time, we've woken up that nat gas product and it will be something that we talk about for the rest of the year. >>thank you scott. it's not all gloom and doom. the numbers show-- corporate profits are coming in better than expected. 277 companies in the s&p 500 index have reported earnings. that's more than half and already it points to 7.4% growth. well above the projected the 5.7%. this is key to how well traders believe the stock market will perform. reports also calculate-- 216 companies in the s&p are sitting on 1.25 trillion dollars or more in cash.-- and that does not include banks. the largest cash holders are microsoft, cisco, apple, google and pfizer. paychecks are in focus at two tech companies. new microsoft ceo satya nadella will make 1.2 million dollars in base pay.
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but his pay package could have him walking away with closer to 18 million dollars for his first year on the job...that's according to the wall street journal. at yahoo --some investors say the company is overspending on talent. ceo marissa mayer recently fired yahoo's c-o-o...who took home a reported 109 million dollars for 15 months at the company. the check's in the mail for google executive chairman eric schmidt. he's been awarded 100 million dollars in google stock, and a 6 million dollar bonus based on his 20-13 performance. and...google has ended a high profile european union probe. the search engine company was accused of promoting it's own services at the cost of competitors. google promises to change how it operates in europe-- potentially avoiding a 5 billion dollar fine. next up, the e-u may question google's android operatiing system. $2 billion. that's how much money a man from germany says apple owes him for infringing on his patent. the patent has to do with technology allowing
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911 calls to take priority over other calls. apple attorneys will present their defense in court next week. bloomberg news reports-- apple, google and 13 other tech companies are joining forces in asking the supreme court to curb frivolous patent abuse cases. apple has been sued 92 times by patent companies in the last two years. also from the tech sector-- a major sell of in 3-d stocks. it started with an earnings miss by 3-d systems. and a warning the printer maker would not be able to reach its profit goal for the year. the stock fell 15%. other 3 d stocks in the sector dropped as well. 3-d printing is viewed as one of the next big growth areas for tech because of the potential 3 d printing makes possible for manufactutring. strong reaction is coming in over a decision by drug store chain cvs to quit selling cigarettes. cvs becomes the first pharmacy chain ever to ban tobacco products. president obama says cvs sets a
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"powerful example." many consumers also praised the decision , while others were critical of tossing tobacco, while continuing to sell products such as candy and soda. morningstar analyst vishnu lekraj says he doubts there will be any signs of "withdrawal" on the companies stock. "cvs is a 130 billion dollar company, and from a top line perspective this is only going to affect, about 2 billion dollars is what the estimate is. so its less than 1% of their top line." lek-raj believes it was a smart move as cvs ramps up its pharmacy business. by october -- the company will be "smoke free." a comment coming from merck about a hot new expiremental cancer drug..gave the stock a shot. shares touched a 6 year high wedensday after merck officials revealed plans to test its immuno-oncology drug
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mk3475 in commibation with medications under development by pfizer, amgen and incyte. also on wednesday, merck reported sales numbers that were slightly lower than expect as it faces competition from generic drug makers. boeing is speeding up production of a popular jet. the company will manufacture its 7- 3-7 at a faster pace. boeing says it's able to get the planes made quicker through improvements in efficiency. it comes on the heels of record earnings from the jet maker. the company set a lofty goal of topping delivery records set in 20-13. boeing is among several large corporations that have recently dealt with tough union negotiations...in a speech to the uaw wednesday. vice president joe biden rallied union members.. as union membership dropped and declined, the share of income earned by americans in the middle class began to decrease. guys, it's not an exaggeration; the national labor relation board-- is trying again to speed up the process of signing on union members. the n-l-r-b contends current rules provide too many opportunities for employers to manipulate and drag out the process to deny workers a vote. the national association of manufacturers quickly put out a
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statement saying we will not let this aggressive overreach stand. on capital hill --the senate could move forward with a test vote today on extending jobless benefits to american's who have been out of work long-term. 60 votes are needed. still up in the air -- the looming deadline on the debt ceiling. house republicans are said to be working on a bargaining plan, but have been unable to reach a consensus. the government could face a default at the end of the month. 10 states are said to placing bets on legalizing or expanding interent gambling this year. a survey by gambling compliance finds-- only a slim chance a national law will pass so states are playing their own hands. new jersey, nevada and delaward already allow internet gambling. gambling bills are reported to be in consideration in california, colorado, hawaii, illinois, iowa, louisiana, massachusetts, mississippi, and pennsylvania. three million commuters endure another stressful day of getting around london. a strike
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of workers for london's transit system continues through tonight. the 48 hour closure began as two transit unions protested the proposal to cut 950 jobs from the london underground. authorities say the plan would save 81 million dollars a year. in the u.s.--- winter weather is taking a toll on businesses. heavy snow creating white out conditions caused kraft foods group to temporarity close its wheat flour mill in toledo, ohio-- which is one of the largest mills in the nation. sources say trucks delivering wheat were not allowed on roads. other companies are losing money with power knocked out in states from the midwest to new england. in our cover story, the women's business development center in chicago has helped women veterans start their own businesses. it began a year ago and in that time, they've learned that a lot of women leaving the military need a business boot camp to put them
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on the right track. kaney o'neill is an entrepreneur who wishes she had more guidance when she began her business. discharged from the navy after a parlyzing fall, she finished college and opened a roofing contractor business with her family. "it was pretty devestating to wake up and not be able to walk or the ability to write. // it took us a year to get our first contract. i think we made every mistake in the book." but through seven years of perseverance, on a variety of levels, o'neill found she has a talent for managing. now o'neill contractors, a certified service-disabled veteran-owned business brings in as much as three million a year and recently won a government contract that could result in five years of steady work. her edge---set-aside contracts and a spotless safety record. "in my company, safety is big. because of what happened to me, safety is very important and a roof is a dangerous place." // we've never had an injury on the job what's working for us so far." the women's business development center in chicago, which holds job fairs and has helped other women veterans start their own business has
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found the military may have taught them to see a project through completion---but many often don't know how get started as businesswomen. "nobody's going to give you a loan unless you've put in some money first.and that's where they need to start first." with guidance from lenders, a boot camp held next month for women veterans hopes to set entrepreneurs on a similar path as the one kaney o'neill has found. i think it's how you get up and get back in there that counts." "if it's a start-up, $10,000 is what we'd likely provide, depending on the needs." for more information on the business boot camp for women veterans, go to w-b-d-c-dot-org. still to come: twitter talk...will today present a buying opportunity for traders...plus... a trip to
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"lego land" as the animated movie gets big hype at the box office.... one man finds his dream job playing with the plastic building blocks. no joke...bill moller joins us with that story, after this break.
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you're told your career should be your passion. but, gosh, often our passions - playing video games, shooting baskets, building lego creations - that can't easily be turned into a paying job? but, wait a minute, look at this. the product of a passionate lego builder and for david howard,that in fact is his job. he is paid to play with lego pieces. what's the
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title on his business card, master model builder. how did this job find you or you find it? >>i actually read it in a newspaper. a family friend of mine sent me a newspaper article and she said you've always loved playing with legoshere's the job for you. i read it and i thoughtthat's not real job. i could never do that. >>so when a young kid asks you what is your job how do you explain it to them? >>it's simple. i play with legos all day. i develop different classes. i develop new models for our events at the legoland discovery center chicago. >>these are all your creations. you love to do these heads. you were in a competition to get the joband that guy over theremr. darth vaderthat was the one that won you the job. >>this is my entry piece. we had to create something to enter the competition and also submit
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a you tube video. i created darth vader without his helmet on. >>that's what he looks like! what did they like about that? >>i think they liked the size of it. a lot of times people make small things to enter these competitions. i made a pretty life sized bust of darth vader. >>what is the pleasure in making things with your hands? in this age of electronics, how do you describe the pleasure you get from doing this? >>my generation grew up on computers and video games and i never really found as much satisfaction out of playing on the computer as much as playing with something in my hands. lego bricks have always been there and they have always been the perfect building block. >>i think we're wired as human beings to use these digits to create things. do you think
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you'll ever grow out of this? >>i don't think so. it's one of those things that sticks with you for life. >>i love that you're living your passion. david howardthank you so much. >>thank you. bill thanks for the segue in to our next act... coming up find if heavy handed marketing will build up audience at the box office when the lego movie debuts this weekend. movies and money is next... and later in chart talk... will twitter's tumble last night matter today? we'll be right back.
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expectations are sky high the lego movie will be at the top of the heap with audiences this weekend. joining us via skype due to the weather is erik childress. nothing stops you from being on our show erik. >>thank you very much for having me. >>the lego movie looks like it is the film to beat this weekend. also coming out at the box office is the monuments men and vampire academy. we'll start with the lego movie. what do you think about this film? >>i think is gonna be a very easy number one this weekend for families. we had the nut
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job from last month and has already spawned a sequel. i think the lego movie is really gonna register with families this weekend and probably for the entire month of february. i think you're gonna see this be the next $100 million grosser. >>you actually screened the monuments men. what did you think? >>we've talked about this movie a few times on the show. we talked back in december when sony actually delayed the film from its december release date and they said it wasn't finished. now that i've seen it i can kind of see why they delayed it because the film is not really very good. it seems like it's gonna be an old school world war ii adventure film but it's really kind of a dull history lesson. it doesn't really give fans of those movies much to get excited about. so it seems that sony was very clear that they weren't gonna get any oscar nominations with this film so they pushed it back to february to give it a better chance but i don't think it's gonna do very well. >>what about the vampire academy. >>this is a film from the weinstein company. they're not
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showing it for critics so we all know what that means. it was actually supposed to open on valentine's day next week and just a couple weeks ago they moved it up a week. they figured all the competition next week they might as well get it out there and try to steal a few bucks before people realize it's not very good. >>last weekend at the box office, a 3 peat win for ride along which was joined by frozen, that awkward moment, the nut job, and lone survivorwhich has been a big hit for the month of januarybringing in lots of money. >>yeah, it's really looking good for 2014. it's technically a 2013 release so a lot of the money will end up on those record books. but for the accounting books for universal, it looks really good. both that and ride along are going to gross 100 million. it's a really good start to the year for them especially after they ended last year with the debacle that was 47 ronin. >>i finally had the opportunity to see the wolf of wall street. you didn't warn me enough erik. it was as though scorcese said you've never seen wall street like this. he really went to the raunchy side and he never
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lets up on the gas. i felt like i needed more plot actually. >>i think you wanted more f- bombs. there were only like 500 in there. i think you needed a few more of those and that would have put it over the top for you. i think it's an entertaining film, i don't think it's a great film. i think scorcese has done better in the past but if you're looking for a 3 hour comedy, you could do worse than wolf of wall street. i recommend it as a comedy not so much as a statement on wall street. >>the acting, however, was superb. >>di caprioyou can't do much better than him. he's terrific. >>he was awesome. good to have you on the show. have a good weekend. >>thank you so much. still ahead--will profits puff up at phillip morris... and what level suggests a buy signal to traders in twitter. chart talk is next. ♪ ♪
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as we reported earlier, twitter ran into some trouble after
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reporting earnings. joining us now is matt cavanaugh of cmz trading. what do you think matt? do you think this stock has any chance of finding some buyers? >>i do. i think what you're seeing is people really trying to figure out what the value of twitter is. it's really hard with some of these companies just to figure out exactly what it is. so you've seen a lot of volatility. the earnings maybe weren't so great but this sector has been really strong and i do imagine that it will find some footing here at some point. >>what would you say would be a good level to own the stock? >>that's tough because it's so based on people's whims. but i think if you can buy in the mid to low 50's i think that you're gonna get a chance at least for a trade to sell it back out. >>what about philip morris which reports earnings today? that stock could run into some problems as well. >>it's a stock that's really been unlovedthat whole sector. but they are down quite a bit off the highs. i don't think
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people are really expecting too much for earnings. they have a really nice dividend of about 5%. if they can give any kind of positive news, we could see a little bit of a pop. i think that the dividend is gonna help along with the insiders who are buying the stock as well. >>will it matter as maybe we're seeing a selloff in a social media stock compared to maybe an old guard stock? maybe money just happens to flow to philip morris today. >>i think it's definitely possible. as we're seeing the increased volatility, some of these old stocks have traditionally been safe havens. so if you look at a stock like philip morris where it's off 20- 25% from its highs and they'll give you a nice dividend, maybe it's a nice place to hide if we get a little bit volatile. >>thanks for being on the show today. >>thank you. there's plenty more to cover tomorrow...join us friday for a round of traders unplugged as our pro traders explain why its time to pay attention to bank stocks. from all of us at business... have a safe thursday..
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