tv First Business KICU March 21, 2014 4:00am-4:31am PDT
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the lingering effects of the fed and how it will effect todays trading session. in today's cover story... how sanctions against russia could rattle its economy. plus...march madness methods...how using bracktology could help your finances. and... and will the queen of talk bringing scorching sales to starbucks. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's friday. march 21st.i'm angela miles. in today's first look: fed fears and cheers are moving the market.wall street moved swiftly moved from selling to buying thursday.the session
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started with a continuation of wedenday's sell off following comments the fed could raise rates in around 6 months, but strong .manufacturing numbers sparked a sudden rally.gold fell $12 dollars and oil 99 cents.most major banks passed the fed's stress test.all but one could survive a deep recession.syamantec fires its ceo steve bennett effective immediately.he is being replaced by a board member.the chairman calls the firing an ongoing deliberative process.shares fell 10% after the close. and, at mcdonald's coo tim fenton, is retiring october 1st. his position is being eliminated. trader chris gersch of altimus capital joins us on this friday morning. happy friday to you chris. >>happy friday angie. >>i know traders will have one eye on televisions for those ncaa games and the other eye on the stock market. how are theystill reacting to those comments we heard earlier this week from fed chair janet yellen? >>i think that the traders are a little whiplashed with all of the price action that's been happening. right now the
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traders don't know whether to sell off like we did on wednesday after those about 6 months and raising rates comments. once everything was digested yesterday and the inflationary pressures in labor costs that we thought would entice them to raise rates arent there. the traders are left wondering where to go this morning so that's what you're seeing in the futures right now. >>what about the philly fed numbers. that showed that manufactuting is still going strong. >>the philly fed was a fantastic shot in the arm yesterday and i believe that it will follow through to continued fundamental outperforming. we also saw the housing number come in a little bit stronger than expected. it did slow down but considering the weather i think that the momentum is definitely to the bullish side. >>is there still concern on the floor about japan? >>there is absolutely still a ton of concern right now. the bank of japan is mentioning potential and more easing. remember their easing three
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times as large as our current qe here in the u.s. so therefore if you're looking to position and endplay, i would position it to a weaker yen versus the dollar. >>thank you chris. >>thank you. turning now to the search for the missing triple 7 malayia arliner...paul eggers steps in for chuck coppola. good morning angie...after an unsuccesful sweep off the austrialian cost thursday, officials searching for missing malaysian airlines flight 370 return to the area today. cbs news reports bad weather created difficulties in the first search attempt. the area is halfway between australia and islands off the antarctic. a satellite image of ocean debris released yesterday is currently under investigation. officials say confirming whether it belongs to the missing flight will be a "lengthy process." thanks for the update paul...oil companies are at the forefront of new u.s. sanctions against russia. or more to the point the men connected to large oil companies it's believed by the obama
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administration vladimir putin has direct finanical ties to russian oil billionaires. and sanctions have been ordered against those men. bloomberg news reports one of the co founders of gunvor group which handles russian crude shipments-- no longer owns shares of the company.other reports say the chairman of russia's energy monopoly gazprom sold his entire stake in the company just a few weeks before putin started the invasion. today's cover story centers around the changing business environment in russia.u-s and european sanctions may be mild now, but economic uncertainty has investors re-considering their global strategies. as russian president vladimir putin met with u-n secretary general ban-ki moon in moscow for official talks on the ukraine crisis thursday, president obama upped the ante in washington. " i signed a new executive order today that gives us the authority to impose sanctions on not just individuals, but on
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key sectors of the russian economy." 31 officials with russian ties are now barred from entering the u.s, and from doing business with any u-s firm. the president's latest step authorizes but does *not implement * sanctions on sectors of the russian economy including financial services, energy, metals and mining, defense and engineering. " this is not our preferred outcome. these sanctions would not only have a significant impact on the world economy, but disruptions to the world economy." with tension and sanctions on the rise, the russian ruble has tumbled. as has their stock market, down 9 percent in march. "a lot of money is currently being pulled out of the country. and we might talk about billions of dollars. and in fact more investment is coming out that going in." but according to russian american chamber president sergei millian, capitalist tendencies still outweigh cold war history. "any changes in politics any changes in environment creates new opportunities. it doesn't affect the desire businessmen
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to make money in that part of the world." millian also shared that russian firms active here are concerned about the potential for backlash. it is that tit- for-tat nature that put house speaker john boehner and senate majority leader harry reid on russia's sanctioned list -- they are now banned from entering the country. the european union put the fininishing touches on on a "new" banking system. the plan is to centralize oversight of banks. create a fund with the power to rescue or shut down banks. and, protect taxpayers from bailouts ireland went bankrupt in 2010 because of the costs of bank rescues. bloomberg news report-- merrill lynch was nearly $60 billion dollars off when it told the irish goverment how much it would cost to rescue its banks in 2008. a day after selling its physical commodities unit, jp morgan chase is named the most profitable commodities investment bank. j-p morgan had
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the largest revenues of any investment bank in the sector last year. the bank sold its commodities arm to swiss firm mercuria in a $3.5 billion deal earlier this week in the face of a settlement with u-s regulators over market manipulation. jp morgan stock traded near a 14 year high thursday. in our ipo watch this morning...shares of a cloud- based financial services software company-- are sky high. q-2 stock soared 15% yestesrday in its debut on the new york stock exchange..the ticker symbol is q-two burn treatment maker mediwound is off to a healthy start. shares rose 23% thursday, trading under ticker:mdwd. while drug maker ah-key-bia therapeutics shot up 57% in its ipo.the ticker is akba. the health care sector is leading the way with ipos. the supreme court of arkansas threw out fraud charges against johnson and johnson. j and j was accused of fraudulent marketing over its anti- psychotic drug risperdal.
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arkansas claimed the drugmaker did not propertly expose medical risks to arkansas medicaid patients.while j and j's attorney said there was no fraud or improper reimbursements for medicaid patients who took the drug. a startling 3.5 million cars recalled for various issues, wound up for sale online last year. carfax.com, cross-checked listings for cars on major websites such as autotrader.com, cars.com and craiglist.com. the research revealed that 1 in 9 vehcles had an open recall. texas, california, missouri, florida and ohio had the most. however, the odds of buying a car under recall were much less when purchased at a reputable dealership. honda marks a u-s milestone this week as the10 millionth accord built here rolls of the assembly line. built in marysville, ohio (mare-iz-ville) - accords account for half of the 20 million hondas made in the u-s-
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a. about 95 percent of hondas and acuras sold in the u-s last year were manufactured in north america. last year u-s plants made a company record 1.3 million vehicles -- up more than 7 percent from 2012. home builder stocks hammered out gains earlier this week but then were sawed off by investors yesterday. kb homes fell 3% in trading thursday. while new home builder lennar sold off by 2%. both reported selling more homes at higher prices. in the broader housing market-- the national association of realtors reports: sales of previously owned houses--- fell .4% in february as nasty weather and rising prices slowed home buying. "i don't think the weather was the main factor, even though across the country temperatures are lower than normal, temperatures were actually above normal in a lot of places, temperatures were above normal in alot of places that
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account for much of the housing activity." "the other piece of the story is that inventories are down pretty signficantly, there aren't that many options out there for buyers who are looking." its a different kind of march madness as competition for your gardening green begins to blossom. discount retailer wal- mart plans to prune the profits of home depot and lowe's with the rollout of more outdoor living and lawn and garden items. the 2 home improvement giants are taking walmart's move very seriously because spring sales are big part of the bottom line. americans are changing channels on how they view tv. cable operators and others posted the first full year decline in subscriptions last year. according to research firm snl kagan.. 100 million subscribers spend $30 or more per month for
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pay tv. a decline of 251,000. higher prices and the rise of video streaming companies are causing tv wathers to ditch cable bills. some stock promoters are accused of getting into the pay for play game with media. a handful of financial websites, including forbes-dot-com , seeking alpha and others-- allegedly published articles by authors who promoted stocks they own the websites owners claim they were deceived. taxes are a tell tale sign of the relationship status of americans. according to irs information-- more taxpayers are checking the "single" box. that was the case in 20-11 when the analysis was put together by the tax foundation. it found 61% of all returns are from single people -- including those who are divorced or widowed. back in the 50's-- 60 percent of taxpayers were married couples. the majority of workers are delaying retirment plans. a survey by career builder of
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workers 60 and over shows that 58% are putting off retirement. while it sounds like a lot, the number is actually down from 61% in 2013, and 66% in 20- 10.half of those surveyed say they hope to hang it up in the next four years. facebook could have a new source of revenue. its reported the social network will start charging brands that use facebook for promotional reasons. the blog "valleywag" broke the story that facebook's marketing team is re-organizing how users see posts from companies they "like". facebook will reportedly push updates out to more users-- for a fee. the flappy bird game app is closer to taking off again. the creator of the popular- and challenging game shared the news on twitter this week. the game released last may went on indifinte hiatus last december after the maker feared it was becoming too addictive. still to come: trader reaction to a bounce in
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while much attention will be paid to what's happening on the basketball court during the next couple of weeks... one financial professional says you need to "get game" with your finances. marty nevel from consumer estate services is here with the layup for us. good morning to you marty. >>good morning. thanks for having me. >>why talk about march madness and the connection with money at this current time? >>money is always an important
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topic. and just like around new years time we make new years resolutions, around this time of the year is when we usually break those resolutions. so we want to make sure that we keep in touch with our finances, stay on track, and keep in line with our goals. >>you have the final four of finances starting withmake your free throws. what is that? >>free throws will refer toa lot of people still have companies that offer 401k plans and they have a match. in order to get that match you have to contribute so much money to the 401k plan to get the match. >>and it's free money. >>and it's free money. and you don't want to give away free money. >>the you advise to make halftime adjustments. >>correct. a financial plan isn't something that you set and then forget. you have to constantly review it and update it, meet with your financial professional at least on an annual basis, and make sure
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you're keeping up to date. >>and this is asorableprepare for overtime because people are living longer. >>we are living a lot longer than we used to. most people are not prepared to live 30 or 40 years in retirement. on my website marty nevel dot com there is a financial calculator that you can look at, review, input information. it will give you a great first start into how to plan. >.and last but not least, listen to your coach. >>the coach is all important. if you have a financial professional, listen to that advice. follow the advice and keep it going because that coach is going to tell you the right path to stay on, how to do it, when to do it, and with whom to do it. >>sounds like a good way to score with the finances. thank you marty for coming in. >>absolutely. thanks for having me. coming up...is a "bling stock" a buy? find out what's in store for tiffany earnings today. and in traders unplugged... they don't agree on much... but the one stock that has two traders captivated. find out what it is, next!
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cme group-- alan knuckman and scott shellady. good to go guys at the bell. round number 1-- tea time - starbucks is in a partnership with oprah to sell tea. will she bring her oprah effect to the stock? alan: well if the oprah effect is good the answer is yes. i'm looking for a 25% move. we've been trading between 68 and 82 now since july. a breakout target is 96 which is 25% above where we are now. and it's all about mobile payment. they are in the forefront of mobile payment. you can order your starbucks via your phone very very soon. scott: unfortunately i tried to find a reason to disagree with alan but i looked at the chart. the 1, 2, and 5 year all looks pretty good. and at the same time they're talking about maybe serving alcohol. it should be lone starbucks fizz. alan: plus you can get bacon wrapped figs. a lot of changes. scott:so i think they're on the forefront and they're gonna do
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well. the chart looks good. alan: and i don't even like coffee. they'll have some pricing power because coffee prices have bounced up a little bit in the consumers minds and they can raise prices once again. angie: topic number 2top trading. td ameritrade set a record with customer trades. is that good or bad and for whom? scott: i kind of think it's benign. it's information but i don't think it's going to--- alan: is the retail customer back? scott: not really. no. alan: ok then that's the answer i was looking for. scott: but it's informationthat doesn't mean you have to do something with it. alan: right, but do you buy ameritrade? scott: not because of that.
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alan: ameritrade has gone from 18 to 36schwab from 16 to 28 and etrade from 10 to 25. so those stocks are out of the park already. there's still a lot more participation to be seen by the retail trader. i like citibank as a financial stock. scott: what's more importantthe transaction fees for them or the retial traders. alan: i don't care. i think the market's going higher. angie: topic number 3penny thoughts. the u.s. continues to use the pennybut copper has been crushed. is copper a buy? alan: i tried to trick you in 2 different ways. number 197% of pennies are zinc not copper. copper prices are below $3 and everybody's talking about that being a catasrophe. is that a bad thing? copper prices lowyes or no? scott: it has nothing to do with pennies. there's a powerful senator that has that mint in his district number 1. and when we get rid of the penny and maybe someday we doit's a proven fact that it's an inflationary problem. alan: we want inflation! inflation is good. scott: by getting rid of the penny? that's good inflation? how about prices rising? alan: copper prices only dictate copper prices. they don't have any influence on the macroeconomic situation. angie: here's your bonus round questioni am throwing alan a bone. i will put that out front. name president obama's final four predictions. alan: i can't say it on the air. scott: i'll say it's sad that we know the president's final four predictions. how does that sound? doesn't he have something else to do like crimea? or maybe crimea is one of his predictions. alan: he's about results and the stock market is up 175%. angie: the answer isflorida, arizona, michigan state, and louisville. come on alanyou let me down. scott: i was looking for kiev, crimea alan: benghazi angie: that's a whole nother kind of final four. thank you
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we think to ourselves, "i never served. how could i understand? they'll talk about it when they're ready." and then we wonder why they don't want to talk. but when their behavior changes, when they withdraw to themselves, increase substance use, or even talk about hurting themselves, it's time to act. because if we don't, our families and relationships will suffer. ask the hard questions. listen to the veterans in your life and show you care. make the call. it matters. when you recognize a veteran is in crisis, call the veterans crisis line at 1-800-273-8255 and press "1".
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james ramelli of keene on the market dot com joins us now. tiffany has earnings this morning. what do you expect to hear from tif? >>i actually expect the stock to head higher on earnings. if we look at how they performed historically, the stock has rallied 5 out of the past 8 quarters and it's looking pretty good on a chart here. it's trading in bullishly technical territory. but the biggest thing that makes me think that the stock is going to head higher on earnings here is some options action i saw in tiffany leading into the close on thursday. right before the close we saw a trader come in and sell put spreads to buy upside calls. this is a very bullish, very risky trade and they did this in size. all the options that traded in tiffany
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on thursday were about 6 times the average daily options volume and extremely bullish looking. i am long tiffany for earnings and i think the stock is going to head higher. i have an upside target of around $95. >>the initial reaction to nike off of earnings was a rally after the close last night. what's your price target on nike? >>i have an upside price target in nike about 5% higher. that is pretty much what the market was implying the stock could do by friday's close. and it's also inline with the historical average. we saw foot locker rally on earnings. i think nike's going to hold its bid as well. it seems like that part of the market-- that part of the retail segment has been doing very well. we're also seeing earnings out of shoe carnival this morning. so it will be interesting to see how the shoe trade works out today. >>you're bullish on the retailers. thank you for helping us out this morning james. have a good weekend. coming up next week...sand dollars. how the harsh winter weather is turnning into a gold mine for the sunshine state. plus, a look at investing in enviornmentally friendly bonds. that's it for now, from all us at first business.. have a wonderful weekend!
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