the stock buy signal that's coming from america's high ways...the stocks that are getting a boost now that the economy is on the right track. in today's cover story...how the obama administration is attempting to give silicon valley a run for its money plus... samsung pulls out all the stops. why it's new smartphone could blow away the competition away. and...a housing crash "side effect" that's about to shock some home buyers... you're watching first business: financial news, analysis, and today's investment ideas. good fat tuesday morning! it's february 25th. i'm angela miles. in today's first look: the session starts with the s&p just shy of a record. yesterday, the blue chips were up 103 points and the nasdaq 29. but the s&p was the star most of the day as it flirted with the record high of 18-8. the s&p finshed the day at 18-7. gold fell 2 dollars. and oil is

sticking above $102 per barrel. gasoline is on the up & up. according to triple a gas prices have climbed 17 days in row.. up 15 cents during that time frame. prices are expected to continue to rise. the national average per gallon stands at $3.41 and in utah-- a court is freezing the assets of work at home web firms. the ftc claims essent media, net training,yes international, coaching department and apply knowledge bilked consumers out of millions with useless work at home kits and coaching services. the companies offered no comment. trader lincoln ellis of green square capital joins us on this tuesday morning. happy tuesday to you lincoln. > >happy tuesday to you angie. > >is this a stock pickers market or an index situation where people want to buy the

entire index? > >that's a great question. the indexes have had extraordinary runs over the past couple of years really since the bottom of 2009 the s &p up over some 172%. a theme for 2014 is gonna be names over indexes and particular sectors over others. so being very careful and very cautious about which names and which sectors you choose versus the broad indexes will bring you some outperformance this year. > >what about european stocks? those are surging. > >that's a great question. that's really another leg to this stool here. european stocks having had significant discount to the u.s.--not experiencing that multiple expansion we saw in 2013. some of those stocks really trading anywhere between a 15 and 5% discount so german gdp is up. spanish gdp up. that's the cause ofr that surge and those stocks are still undervalued relative to the u.s. > >lincoln, can we expect a bigger breakout in gold? > >you could probably see a breakout to the 1350 level-- past sochi maybe some of the

demand for gold down. but really on a longer term basis we're really gonna circle around what's happening with the fed, with the ecb, and the general tone and tenor of monetary policy as we go through the balance of 2014. > >thanks lincoln. > >thanks angie. the threat of uncertaininty over the situation in the ukraine continues to plague the oil market today. it's critical because the ukraine is a key transporter of nat gas to europe, they don't produce the natural gas russia does and really what this has been about is that russia wants to get control of those pipelines phil flynn a fox business news contributor and trader at price futures group says the fear is russia may retaliate by raising prices of natural gas. monday, the ukraine issued a warrant for the arrest for ukrainian presidenht viktor yah-no-koh-vich who is no longer leads the country. russian officials are denouncing kiev's new political team. chuck coppola joins me this morning with details of politics and money coming from the pentagon- good morning..

good morning angie, at the pentagon-- defense secretary chuck hagel announced drastic budget cuts to the u.s. military. the defense department's budget proposal for fiscal 20-15 would shrink the size of the army to the smallest level since before the second world war. the army currently stands at 520-thousand but there are now plans to reduce it to as few as few as 440-thousand troops. cuts would also include rollbacks in housing allowances, limit pay raises to one percent and cut commissary subsidies while raising health care fees. without these cuts, hagel predicted dire consequences. "we will inevitably have to cut compensation more deeply or deprive our men and women of the training and equipment necessary to succeed in battle." hagel says brace for more cuts after this, including another round of base closures in 20-17. facebook founder mark zuckerberg "stole the show" with his keynote address at the mobile world congress in barcelona. the event runs

through thursday and gives major tech companies the opportunity to roll out hot new gadgets. facebook recently sealed a deal with what's app. zuckerberg talked about buying the texting and messaging company for around $19 billion dollars. he defended the price tag monday, calling the deal a bargain. also monday-- nokia introduced its first android- powered smartphone. samsung also was a show stopper with it's new galaxy s-5. this new phone from samsung its water resistant, it's got a fingerprint sensor, a heart rate monitor, a slightly larger screen at 5.1 inches measured diagonally. it's got a leather like feel to the back, 16 megapixel camera, a whole laundry list. that was tech journalist marc saltzman. intel could be a stock to watch this week, as the chip maker will reveal more about it's plans to get into wearable tech at mobile world congress, today. tech giant cisco offers up its first debt for sale in three

years. cisco begain placing corporate bonds on the market monday. the bond sale reportedly could total seven billion dollars. cisco will use proceeds from the sale of bonds to return capital to shareholders through its stock repurchase and dividend programs. the tech giant plans to buyback 15-billion dollars in shares. comcast's latest strategy could indicate power is shifting in the cable industry. netflix will pay comcast an undisclosed amount to ensure its content downloads faster for viewers. as more consumers turn to streaming services for movies and tv shows...internet companies such as comcast are controlling the speed at which the content streams. comcast was also up slightly on word of the new revenue stream. comcast recently disclosed plans to merge with time warner by the end of the year. a sophisticated cyber crime has some bitcoin users taking virtual money "offline." a computer virus called pony is being used to steal bitcoins from users. security firm trustwave calls it the most ambitious cyber attack on

virtual money so far, with 85 so-called bitcoin "wallets" reported stolen. bitcoin users are being advised to move accounts offline. activist investor carl icahn is turning pushy with ebay. last month icahn disclosed he has a 2% stake in the the internet company. now, his plan is to win two seats on ebay's board and force the company to separate from paypal. he also says, two directors currently on the board are working against ebay. ebay's management responded saying a constructive discussion about ebay and paypal is prefered rather than icahn's mudslinging attacks. activist investors make a push for big changes at the tribune company. the blue harbor group hedge fund owns two-and-a-half percent of the media giant and according the wall street journal, the fund is using its leverage to force the company to divest assets. men's wearhouse is toughening

up its hostile takeover bid for jos a banks yesterday, mens wearhouse upped its offer to buy its rival by $6 per share -- to $63.50 per share from $57.50. that represents a premium over jos a banks closing price yesterday of $60.04. there is one caveat: jos a banks has to abandon its planned $825 million acquisition of eddie bauer. this new offer is good until close of business on march 12th. in what is being characterized as an attempt to change its rigidly traditional reputation -- honda has appointed a woman to its board of directors for the first time. the japanese automaker has also promoted a foreigner to a top post. previously, japanese companies have been criticized for promoting only japanese men. prime minister shinzo abe has made it a priority to elevate women as a way to help the stagnant japanese economy. honda is the first major japanese company to act upon that suggestion. tesla is expected to come out this week with a details on a new battery

factory. the electric car company's ceo says it's so big, he's calling the supersized plant the 'gigafactory'. the tesla plant may even supply batteries to other carmakers. currently, there is said to be a shortage of lithium-ion battery packs to keep up with demand for tesla's models sedan,. tesla shares hit a new record yeterday at-- $218. the stock closed at-- $217. in a one-two punch, solar city, delays its full earnings report related to an accounting issue ...and says it will install fewer panels in the first quarter. the company said it would not release its full report until march third, the street did not react well in after-hours trading. the stockdropped more than 5%. solar city is the nation's largest residential installer of solar panels and is backed by tesla motors. a closely watched legal case involving moldy washing machines is being rejected by the supreme court. by declining to hear the case consumers taking on sears roebuck, whirlpool and bsh home appliance corp can move their case to lower courts. the lawsuit claims kenmore brand high efficiency washers made by

sears holding a subsidiary of whirlpool, emitted unplesant odors. the whirlpool case alone involves 200,000 customers. economists are divided when it comes to the affordable care act. a national survey of business economists found 42% believe that the health care reforms will have no impact on economic growth. eighteen percent said it would force growth, and 30% expect reduced growth. other topics on tap: the fed's bond-buying program. about 70% of economists surveyed support the fed's move, deeming it a success. fans of the "mega" p-b-s hit "downton abbey" have more in common with the series --- than they might think. according to think-tank research being presented this week, today's u- s economy is every bit as stratified as the world presented in downton abbey-- which is set in the early 1900's. the series profiles the very

different lives lived by british aristocracy compared to their servants. today, not only do the rich enjoy even more wealth than the grantham family profiled in the series, the richest take home an even higher share of national income. a financial shake up is happening at the vatican. pope francis is bringing in an outsider to reform the vatican's financial state. australian cardinal george pell will lead the vatican's finance ministry. he will report to a newly-arranged council of eight cardinals. it's part of the pope's effort to get control over the scandals surrounding the church of holy see. allegations include money laundering. back in the u.s.----golf course owners... are losing a grip on customers. and mostly because of the weather. business was on an upswing in 2012. but last year's series of storms in the midwest and east coast kept golfers off the green. a report by pga of america cites a 5%

drop in the number of golf rounds played in 2013. the states of washington and calforina were the only ones to report a bigger drive in business. get ready for breakfast wars. fast food chains are trying to get more customers in for an early meal. mcdonalds is reportedly toying with the idea of extending its breakfast hours, as 20 and 30 somethings typically miss the 10:30 cut off. and -- taco bell is also preparing to launch its first-ever early morning menu on march 27th. it includes -- a waffle taco. still to come: why some crisis era homebuyers are in for a rude awakening. plus...in our cover story-- a look at a multi million dollar investment headed to the midwest.. and...why warren buffett can even churn out a profit..down on the farm. we'll be right back!

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when warren buffett speaks-- people tend to listen. probably because buffett is listed by forbes as the 4th richest person in the world with a $53 billion dollar net worth. his most recent advice to average investors who are saving for retirement-- is to invest in a low cost s&p 500 index fund. the fund he highlighted is the vanguard s&p fund which has an expense ratio of.1-7 percent. buffett adds that a farm he purchased 28 years ago tripled

in value! buffett's berkshire hathaway corporation reports earnings saturday. in today's cover story, they said in the movie, field of dreams, "if you build it, they will come." that might well apply to the establishment of tech hubs in key american cities and the investment money and jobs that may follow. today, the president announces how those hubs may grow high-quality manufacturing jobs. located at the northern tip of chicago's goose island, an "innovation institute" for the defense department will work on advanced jet engine technology and other projects. research support from nearly two dozen universities and companies such as boeing and general electric that contributed three times the 70-million the defense department put in to get it started. "you never know going in, what scientific resources you'll need but to have them all at hand is a powerful tool. " "hopefully, it can transform chicago toward digital technology and things of that nature." the university of illinois' u-i labs, which works to turn academic research into tangible, profit-making products and jobs, and millions in financial support from fortune 50 companies, including illinois-based caterpiller, beat bids from m-i-t and huntsville alabama's aerospace community for creation of a digital manufacturing hub. detroit, also won an institute---focused on lightweight metals manufactuing--some say, a natural for the auto industry. "you'll have on-site fabrication and all the things that go with that." and ancillary companies may attract venture capital.

"it'll lead to jobs, particularly high-skilled jobs and that's what you want in communities." but under the umbrella of "defense department procurement," some wonder if cooperation might become collision. "i'm suspicious. i'd like to see more competition among defense contractors than each of them kick in five-million dollars and somehow 'cooperate.' while some would argue that silicon valley didn't need a government boost to become a tech hub, the publication, indyweek points out a number of military contracts from the 1930's through the late 60's were crucial in silicon valley's development. thanks chuck! coming up...road to recovery...some stocks that may get a bump from gains in the economy. that tops today's chart talk. and after the break, if you bought your home during the financial crisis.. why it could soon become more expensive to own, that's after the break.

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they're called helocs - home equity lines of credit - a wonderful way for home- owners to turn their home equity into a low interest loan. but if you took out a heloc between 2004 and 2007 - and you haven't paid it off, brace yourself for a big jump in your monthly payments. allen jones is a managing director of risk span, that's a mortgage consulting firm. how big of a jump allen? > >bill i think we have a challenge here in the housing industry for borrowers with helocs that are converting from interest only to principal in interest. you can see a payment increase of up to 300 dollars. something to be on the lookout for. > >what's the cause of this? > >the cause for this is helocs. home equity lines of credit that were originated back in what i call the bubble era-- 2004 to 2007-- are just now coming due. over a million of these loans are coming due set to fully pay. > >how do i know if my heloc

payments are going to be going up? > >when i think about it from our perspective, and we know that the occ has been out asking banks to be protected, look for risk. as a borrower i'm thinking of 3 things. number 1 is to know what i owe. understand where i am. number 2 to know what my house is worth. and number 3, if i encounter any kind of financial distress i want to call my mortgage servicer. > >is this a one time event or is there danger down the road for other people who have these kinds of loans? > >these loans will amortize over the next 3 years so we have 500 thousand of those that will be resetting this year and another 500 thousand next year. this is a million borrowers in the housing market that we've seen where a rising tide has lifted all boats. right

now we have to be on the lookout for heloc risk. > >allen jones from risk span thanks so much. > >a pleasure bill. good info bill. just ahead-- have you notice more trucks on the road? why that could be a buy signal for transportation stocks! chart talk is next.

hi, i'm ben affleck, and many actors have played the part of u.s. servicemen in the movies, but for veterans like james crosby their service and their sacrifice are real. and too often when they come home, their struggle continues. for over sixty years, paralyzed veterans of america has been fighting to help our injured veterans get the benefits they need, and have earned. paralyzed veterans of america was there for me when i came home. join me in supporting our paralyzed veterans. visit p-v-a dot org. matt shapiro, president of mws

capital, joins us now for chart talk. good morning matt. > >good morning angie. i really want to talk about the overall health of the economy as we see it through some of these stock performances. let's start with home depot. earnings are coming out today. it shows that people have been building homes and improving their homes. but what

do you anticipate is likely to happen for this stock? > >you never know what any partiular earnings release is going to happen. however, there's a lot of construction going on and despite the slowdown because of the weather over the last couple of months, look at the rally we had yesterday. who thought that could happen? so there's actually a lot of underlying strength in the economy and if home depot comes out with a good report, i think this is gonna spur the bulls on. > >another segment of the economy to watch is trucking. i see a million trucks on the road. > >80 percent of goods that we have are delivered by truck. obviously every morning many trucks come and deliver stuff to home depot. it's actually a segment that a lot of people don't talk about...it's not the glamour stocks but the trucking companies have actually taken off. you also look at cummins hitting a high yesterday, packar which makes all the trucks--and then overseas, volkswagon trying to buy out the last of scania truck which it already owns...trying to pay 30 percent more than the closing price just to get that heavy duty truck maker completely onto its balance sheet. so it shows

you there's a lot of underlying strength there. so if home depot comes out with a good report, i think the bulls are still gonna be in good shape for the rest of the week. > >is it too late to buy some of these trucking stocks? > >absolutely not. remember last year? biotechnology kind of took off in january and then it doubled from there. so i see the same thing in trucking because of new emissions regulations, there's gonna be consolidation in the industry. so those fleets that are like 2 or 3 billion can come together--this consolidation could be very profitable. > >matt, thanks for coming on the show today. > >you got it. that's it for today. coming up tomorrow the author of young money will be here an inside look at life on wall street for young people who went to work at big banks "after" the finanical collapse of 2008. it's fascinating. from all of us for today...thank you for watching and have good tuesday.

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