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tv   First Business  KICU  March 28, 2014 4:00am-4:31am PDT

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the 6 million mark. obamacare sign ups reach a critical mass.. in today's cover story... the corporate leaders brainstorming to "reinvent america. " plus....analysts predict microsoft is getting its mojo back. and.... in traders unplugged... why old fashioned panning for gold is back in vogue.. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's friday, march 28th. i'm angela miles. in today's first look: blame it on banks and tech. those two sectors made up the bulk of the selling in the market thursday. the dow lost 5 points, while the nasdaq took a greater hit dropping 23 and the s&p fell by 4.
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gold is trading back below 13- hundred and oil above $101 dollars as the traders fear unrest overseas could lead to supply problems. amazon has plans for a free, advertising supported streaming service for tv and music. the news caused a $10 dollar sell off in netflix last night which streams movies. and a report says brookstone- which is famous for upscale gadgets-- is preparing to file for bankruptcy. trader gary kozlowski of united futures joins us on this friday morning. good morning. it's been way too long since we've had you on the show gary. >>i feel the same way. good morning to you. >>what's going on with this tech trouble? some of these momentum namesteslathey're all starting to fall apart. what's happening? >>it's not really a falling apart. what we're seeing is a lot of the fund traders pulling back. this is the end of the first quarter so we gotta keep that in the back of our mind.
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come tuesday when the first of the month rolls around you'll start to see people slowly creeping back in. one thing you have to look at is for the retail investor in these markets right now with what they've endured throughout this winter with the higher energy costs there's not as many people jumping into the market. so it's going to be a slow creep up with these fund traders and then maybe we'll start to see some of the retail people when they see the prices slowly comuing back up. but it's not gonna take off running like we've seen in prior situations like this. >>very quickly before you take offare you short or long the market? a lot of people are saying this is the place to short. >>i'm right with them. we've seen these markets so overbought for such a long period of time and everybody's been saying it and yet they're still buying it up. so i do believe that at the start of the 2nd quarter we're going to continue to see these slow down as we have seen throughout most of this week and we'll probably see later on today when the consumer sentiment numbers do come out. >>thank you gary. >>thank you.
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6 million and counting...the obama administrion has reached its enrollment goal for the affordable care act. as of thursday 6 million americans signed up for insurance plans, ahead of the deadline monday at midnight. the original goal was 7 million... which may still happen. the white house reports there were 1.5 million visitors to the healthcare.gov thursday. an official from "get covered america" talks about the sudden surge... "81% of people didn't know that the deadline was coming. i think that number has ticked down a bit in recent days just based on the reaction we are seeing-- the action we are seeing from consumers. but we know there are a lot of people out there who still don't know." it's estimated 83% of american's who applied for coverage-- received financial assistance. chuck coppola is good to go this morning on a edgy ove by mirosoft.. if you can't beat 'em, join 'em. as the pc business shrinks-- microsoft's new ceo satya nadella launched a version of microsoft's office software made for apple's ipad thursday, at his first news event.
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analysts say nadella realizes mobile is the future - and will bring a significant revenue boost. to the tech company. some tech watchers wanted microsoft to create touch- optimized software on one of its own products, such as the surface tablet. but most think the apple partnership marks a progressive turn for the company. "microsoft has finally made the decision to expand beyond the pc and beyond its own windows environment to embrace the dominant platform." that was michael krigsman, analyst with asuret. he points out that microsoft does not own the apple operating system, which caused the long delay in the software release. microsoft shares rallied to 39.36 thursday. one day after the ceo of gm tells customers its safe to drive cars recalled for an ignition switch issue a federal court is agreeing to hear a case that could force the car company to tell customers to put the cars in park. a federal court in texas will take on an "emergency motion" april 4th. an attorney representing a number of clients argues drivers are at risk. gm is offering loaner cars to customers. wednesday, gm ceo mary barra called the cars safe
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to drive in this video. gm shares closed slightly higher yesterday. ukraine's hard hit economy is about to receive a financial lifeline. yesterday -- congress passed a bill authorizing a one billion dollar loan package for ukraine. it's expected to be signed by president obama. the bill also organizes the u.s. sanctions levied against officials including russian president vladmir putin. the international monetary fund also cleared the way for its 14 billion dollar loan to ukraine. a law firm based in chicago will represent at least half of the passengers on board malaysia airlines flight 370. the lawsuit alleges the jet crashed due to mechanical failure. the flight, headed to beijing, fell from radar more than 2 weeks ago. searchers are focusing on the southern section of the indian ocean. there were 239 passengers and crew. the chicago tribune reports ribbeck law firm has filed a petition for discovery against boeing, which made the aircraft. malaysian airlines is also named in the suit.
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outrage is building in turkey. its government has made a second attempt to block a popular social media site. the government moved to block access to youtube after private information from a government meeting was made public on the site. usa today reports the recording details government officials discussing staging an attack against turkish citizens in syria ...that could be used to justify a counterattack. turkish officals say the site was "blocked as a precaution". the youtube ban comes a day after a court overturned a government ruling in turkey, banning twitter, there. changes to the way the national security agency collects data are coming. president obama says the government should not collect or hold phone data in bulk. and a judges approval would be needed to access phone records--unless there is an immediate terrorist threat. a gop member of congress believes that would slow down terrorism investigations, but is glad the president wants to overhaul the nsa. an outbreak of cyber attacks has more companies upgrading insurance. cyber insurance is becoming more in demand, following the high profile breach at target. brokers say the publicity has both small and large businesses
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flocking to get covered. aon insurance reports industry premiums from cyber insurance last year were a record one billion dollars , up from 675 million in 20-12. lehman brothers is making a hefty payment to date to creditors. lehman will pay nearly $18 billion, bringing the total to more than $80 billion since its bankruptcy filing in 2008. lehamns initial $22.5 billion paid to creditors in 2012, was its largest. the next allotment is expected september 30. bailed-out auto lender ally financial among a few companies eyeing an ipo. the u-s treasury filed plans to sell shares at $25 to $28 dollars per share in a $3 billion dollar deal. it would trade under symbol "a-l- l-y" on the new york stock exchange. meanwhile music- streaming service spotify could add an ipo to its playlist. news site quartz says the company has talked to investment banks about going public, this fall. among ipo-s already in play...shares of trinet group jumped 19% in the first day of trading. the payroll services company opened on the new york
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stock exchange under the ticker: tnet. it's a healcare related stock that is getting a boost from obamacare. king digital the maker of candy crush contines to get slammed in the market. the stock fell another 2% thursday after losing 15% wednesday. traders are on the lulu look out. shares of the yoga and athletic wear maker rallied 6% yesterday after reporting better than expected profits in the fourth quarter. however, it did say it profits this quarter may be weak. the brand recently launched a new clothing line that expands into everyday wear. a new round of corporate earnings is less than two weeks away. and there may be jitters over how much the weather slowed consumer and business spending. however, the just released numbers on corporate profits from last year show a record rise to $1.7 trillion dollars. those profits lead to a 4% bump up in ceo pay. the median ceo pay was $9.8 million last year.
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baxter international plans to spin off its biotech unit into a separate public company. the split will allow baxter to focus on its medical products business, which brings in $9 billion in revenue. headquarters for both companies will remain in deerfield, illinois. baxter has already successfully spun off edwards lifesciences corp, caremark corp, and allegiance healthcare corp. baxter shares were up nearly 4 percent to 72.80 at the close. glaxosmithkline wants bottles of the weight loss drug-- alli-- removed from store shelves. the recall follows reports some bottles have tamper resistant seals that are not authentic and have pills inside that are not the actual diet drug. some bottles are even missing labels. hotel prices are on the rise.
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hotels dot com says room prices in north america rose 3% in 20- 13. it's actually a sign that more americans are traveling within the country. analysts say overseas destinations are also becoming more of a draw. "i think international travel has definitly become more accessible for people. i mean the prices you can get in destinations that maybe at one point seemed unreachable for people, are now extremely affordable." that was neha par-eek of hotels dot com who says 5-star hotel prices in some cities such as lisbon and budapest are dropping. she adds travelers should research local economies before booking, as economies still in recovery tend to have better deals. domino's franchise owners are forced to share a piece of the pie with employees. 6 dominos in new york will pay a total nearly a half million dollars to minimum wage workers under a labor settlement. the money will be divided amoung 750 people. the owners admit to under paying workers. yum brands is making over its menu in china. the owner of taco bell and kfc is trying to boost sales out east, after a
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"scare" over antibiotics in its chicken hurt sales in 20-12. yum says it will also roll out new packaging and store designs. half of yum brands' sales are from china. sears is going trendy in its latest turn around effort. the retailer will sell hip clothes at its stores and online. it's to keep pace with the popularity of fashion forward and budget wise stores such as h&m. the new sears shop will be called now plus here. and open in the second week of april. sears is in the process of closing its flag ship store in chicago. still to come: is a better paying company pay off for investors? find out in traders unplugged. plus...will low expectations help give a boost to blackberry on its earnings day? and...chuck coppola takes us to one of the biggest meet and greet events in corporate america. right after the break.
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in our cover story---the gathering of business leaders to reinvent america. it'll include self-driving cars--- that prediction from ford motor's chairman bill ford. ---and a lot of talk about a resurgence in american manufacturing. billed as a first-of-its-kind gathering of industrial executives, entrepreneurs academics and elected officials, forbes sponsored the reinventing america summit. "i think you're going to see a revolution in health care. you'll see driver-less cars,-- amazing things are coming along." the meeting's purpose---to share across economic sectors-- insight into restoring america's manufacturing muscle...beginning with walmart's open call for american manufacturers, this july. "july 8th, in bentonville, ar, we'll mhave buyers listen to
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pitches from anyone who makes anything that can be built in the us." the retailer's also made a ten- year pledge to invest 250- billion dollars carrying products that support american jobs. entrepreneur shahid khan shared how detroit automakers' transition toward molded plastic parts grew khan's flex- n-gate manufacturing into a billion dollar business. ford chairman bill ford warned of complacency. "i think the biggest trouble we've gotten into in the past is when we're drinking our own kool-aid. thadt's when the warning signs went off." but these insights stopped short of saying everyone looking now would find work. charles perkins of emerson, which makes automation to manufacturers and distributors. "the end is not to create jobs, if i win and make a profit, i'll have created opportunity. profits allow you the right to have opportunity." there's now renewed emphasis in closing the skills gap.
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opportunity nation is an organziation dedicated to helping young people find work in manufacturing. "all of our young people need some training beyond high school. not necessarily a four- year degree budt something to prepare them for jobs available today." and we found another encouraging sign--a group called "m-b-a's across america. a group of harvard business graduates who've gone to detroit, boulder, colorado, las vegas and new orleans to help start-ups get their footing. the groups founder told me they seek to help american busisness in the vast part of the country between wall street and silicon valley. thanks chuck! coming up...is an underdog stock about to surprise the market? that's in chart talk. and... power play...why big companies are acquiring the little guys in bulk. we'll be right back!!
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here to help us kick off the weekend...alan knuckman and scott shellady are joining us for traders unplugged. ready to
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go a few rounds guys? here's topic number 1-takeover targets- morgan stanley has a list of 44 companies it considers takeover possibility. after looking for the list-- which do you like? alan: you're really going to like this answer. i don't know. i don't have an answer. actually i think morgan stanley who compiled the list is probably the best investment. but it's a very helpful sign that markets are strong because who wants to take over a company if you could see it sell off and get it cheaper than it is now? scott: unlike alan i actually did my homework. you can tell by his answer that he didn't and that's why he's dressed in black and he's the undertaker. but because of the knuckmancare i.e, obamacare i think that ultimately some of these insurance companies will be
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benefactors. i like cigna and aetna alan: private market insuranceeverybody believes in it. scott: at some point in time down the road these insurance companies will benefit so i like those too. angie: topic number 2pay grade. which high paying company is a stock buy? scott: my 2 i picked were google and visa. i'm a big user of both unfortunately with the visa but i like those 2 companies. visa counteracted some of the negative feelings about the company with even more payso i like to think it's all about the money. alan: i like yahoo. yahoo has had a little bit of a pullback here. i see more upside in the yahoo market.their median employee pay is 125 thousand. but look at the stockwe've got more upside. 50 is the targetabout 40% higher than we stand right now if we can break above the incrasing highs above 42. angie: topic number 3biology lesson. recently the nasdaq was knocked down because of the
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biotech selloff. are we in bubble trouble? alan: absolutely not. as we all know technology is needed to extend our lives and make us healthier and that's going to continue to happen. it's had a pullback. look for that ibbthe eyshares biotechnology fund is down 15% but it's still up 50% over the last year. look for it to hold this 200 level. scott: i'm going to answer a little bit faster than that because alan's gotta get this suit back by 3. we have to take a look at what i think is the biotecheveryone wanted to blame the selloff on the biotech's. i think it's garbage because we never really blame the rallies on the biotech's. so if you can't blame the rallies on them you can't blame the breaks on them. i think it's smoke and mirrors. we've got other issuesasia and maybe even europe with alan: oh, so you're negative macro? scott: no. i'm saying that ultimately i think they're not gonna be the reason for any sort of selloff. i'm not going to get involved with that. the market will put 10-15% on by the end of the year for sure. alan: i'd like to hear it. angie: here's your bonus round questionit's a true or falsethe epic drought in california is
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creating a mini gold rush? true or false? alan: absolutely true. i was gonna do that when i was out in lake tahoe. now the water's low and there are areas that you can prospect. they were underwater before. scott: prospect is a big word alan. it's absolutely true. i read it in the news this morning as well and it looks like something that maybe we could get alan to do so we don't have to do this anymore. alan: gold is at this 1300 pivot that we have to watch. angie: you both had the answer right. great job guys! first business news continues right after this.
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talking to veterans about the real issues they're dealing with can be awkward and uncomfortable. 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,
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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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matt cavanaugh of cmz trading joins us now for chart talk. good morning matt. >>good morning. >>you are watching blackberry for us ahead of earnings. there has been so much negative talk surrounding this stock and the company. do you think there's any hope for blackberry? >>you really nailed it. there has been so much negative talk. they actually just got downgraded again the other day with a $6 price target. i think the real key for blackberry is because they've missed so much in the race for smart phones and people like apple and google have overtaken themthe question is will their new ceo be able to redefine their business and get them moving in the right direction? and i think that at least with all this negative news out there and some of the positive steps he's making that for a short term trade there might be something there. >>what do you see in the paper because i know you're an options trader and sometimes you guys go the contrarian routewhen everybody's negative you get positive. so what would be your price target or what exactly are you looking for?
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>>i'm really looking for them to say something positive about the rollout of blackberry 10. something about maybe their niche businessessecurityjust really getting the company refocused. i think that's the million dollar question here. they're sitting on some cash and are they going to be able to redefine this company or are they going to blow it all and go into bankruptcy? so i think that if they say anything positive about these new businesses or anything positive about the direction of the company that we could see a nice little pop to the upside and maybe get above that $10 range again. >>we'll be watching. thank you matt. >>thank you. that's a wrap for now. coming up next week...the sudden rush of buying and selling tv stations and what that means for viewers. it's must see tv on monday. from all of us at first business have a good weekend!
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