tv First Business KICU April 4, 2014 4:00am-4:31am PDT
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a snapshot of the jobs picture as a new round of data hits the market!! in today's cover story.... can a hollywood makeover reboot gm's brand in light of its recent troubles? plus... forget the juggling act... why one woman decided to blend her personal and work life. and...is the stock market too good to be true? the truth comes out in traders unplugged. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! i'm angela miles. it's friday, april 4th. in today's first look: stocks cool ahead of the jobs numbers for march. the blue chips closed unchanged, the nasdaq fell by 38 and the s&p lost 2 points after reaching a new high during the session.gold pulled
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by 4 dollars and oil edged up 73 cents. jobs economist predict 195-thousand jobs were added to payrolls last month. and the unemployment rate will tick down to 6.6%. mozilla's ceo resigns under pressure. it was revealed he donated $1,000 dollars to gay marriage ban in california in 2008. chris gersch is our trader du jour on this jobs friday. happy friday to you chris. > >happy friday. good morning angie. > >so here we are waiting for the jobs numbers for the month of march. what's your anticipation? > >it can go either way. a lot
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of traders are speculating 250 thousand jobs added that could be more of a hawkish scenario for the fed. if that does happen i think you're going to see a initial rally and maybe a bit of a pullback going into the afternoon. > >what did you make of the comments yesterday from ecb president mario draghi? he was talking stimulus and it seemed as though the stock market had a case of the jitters on his comments. > >mr. draghi did cause the jitters. you hit it right on the head angie. that was basically because despite keeping the lending rate at .25% for the ecb, he talks about quantitative easing. that really strengthened the dollar against the euro and therefore the market pulled back a little bit here on the cme floor. > >coming up today we have a couple of ipos debuting in the market including grubhub which
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is based here in chicago. will you be a buyer? > >i will be an absolute buyer of grubhub. i use it all the time. in fact, i know the guys that started that company. it's an amazing success story and they've got a lot of momentum right now. if they can do anything like yelp has done i would definitely be a buyer of grubhub right now. > >what else would you be buying or selling in this market? > >if i would be buying anything right now it would be the u.s. dollar. the fact that the ecb might come out later on--they're expecting a little inflation to occur because of the easter holiday. expect some sort of dramatic action by them in june right now is a great time to position to a long dollar and short euro. > >thank you and have a good weekend. > >thank you. chuck coppola joins me now with encouraging numbers from the labor market. angie ... the labor market is reporting fewer layoffs. according to outplacement firm challenger gray and christmas, employers in march announced the fewest first-quarter layoffs in 19-years. that's on the heels of a-d-p's jobs data reporting businesses added 191-thousand jobs in march. there were just over 34-thousand job cuts in march. that's the second-lowest monthly total since january of last year. "from our standpoint the labor market is in very good shape. we aren't seeing much in the way of layoffs. people just aren't
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going through the restructuring programs we saw 5 years ago during the recession " that was john challenger, who says there is no data to suggest job cuts will rise, anytime soon. a large percentage of jobs in the u.s. pay less than 20 dollars an hour. cnn money calcultes of 130 million jobs in the u.s...63 million pay less than 20 dollars per hour. 18 million jobs -- are under 10. at the other end of the scale -- 40 dollar hourly pay goes to dentists and lawyers -- and is the smallest slice of the pie. the study was based on median wages from last year. african americans and latinos are still struggling with employment. the "under" employement rate - or those who are jobless or working part- time - is 20.5 percent for african-american workers compared to 18.4 percent for hispanic workers, and 11.8 percent for white workers, according to "one nation underemployed" by the national urban league. however, another study by the associated press found high optimism, even among blacks who say racism is a cause for economic inequality.
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the federal reserve board of governors is losing a member. jeremy stein-- is resigning. he's returning to his economics teaching position at harvard. stein was appointed to the board in may of 2012 by president obama to fill an unexpired term that ends january 31st 2018. stein exits may 28th. he's a voting member of the federal open market committee. the departure leaves 3 vacancies on the fed board. it's a critical time as the fed winds down its bond-buying program. a record environmental settlement has been reached by the justice department. anadarko petroleum will pay $5.1 billion dollars to resolve claims that its subsidiary kerr mcgee is liable for the massive cleanup of dozens of contaiminated sites from oklahoma to pennsylvania. the navajo nation will recieve $1 billion from the fund to address radioactive contamination from kerr mcgee's uranium mining operation.
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anadarko shares rallied 14%. the emergency landing of a delta flight is under scrutiny. the f-a-a says on wednesday a laguardia bound jet, was diverted to jfk because of a failed hydraulic system. the plane then rolled onto a grassy area off the runway. investigators still don't know why. the passengers and crew were not hurt. banks are bracing for a new hacking scam called "unlimited operations" government regulators say the hack attacks occur on holidays and weekends...when extra money is loaded into atms and banks during off hours. a recent attack pulled in $40 million from only 12 debit card accounts, according to the government. consumer privacy advocates recommend using credit cards rather than debit acounts. citigroup faces a criminal investigation. the fbi is heading up the probe into citigroup's mexican unit: banamex. the focus, is on whether the bank ignored
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warnings signs. citigroup disclosed in february apparent fraud involving banamex and an oil services company. the bank says at least one employee processed falsifiied docuemnts allowing the oil service company to obtain a loan that cannot be repaid. twitter is back in turkey-- after a court ruling declared a government ban breached freedom of expression. turkish officials banned access ahead of local elections to stop leaked wire reports of senior officials. youtube access is still blocked. meanwhile an associated press report says the u-s secretly built a "cuban twitter" account to undermine the country's communist government. although some questioned the operation, the white house says it was not a covert effort. zillow is staking territory in china. the online real estate website-- is connecting with leju an online home selling site in beijing. zillow says in a statement: brokers and agents with listings on zillow will be able to reach chinese home shoppers who are ready to invest in the u.s. chinese investors reportedly are pouring money into the u.s. housing market. they see it as more stable than
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chinese property. brookstone is filing for chapter 11 bankruptcy and has a buyer. stores remain open-- but sales have been slipping at brookstone which is known for selling upscale gadgets for home and travel. the company has about 200 million dollars of debt. spencer spirit holdings is expected to pay $147 million dollars for brookstone. men are becoming more "fashion forward." a slew of high end clothing retailers are shifting focus to the sharp dressed men. bain & company reports men accounted for 40% of luxury clothing sales in 20-13 and that the segment is growing by 7% per year, versus 4% for women. michael kors, lululemon, and coach are a few of the names adding stand alone mens stores or expanding clothing lines. in our cover story--general motors is touting its product placement in an upcoming movie. the p-r campaign about g-m's role in movie production comes the same week g-m c-e-o mary barra faced tough questions from congress about the automaker's production on the assembly line. the new movie "captain america" features scarett johansson and black 20-14 corvette stingray. it is the latest step in a
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nationwide p-r campaign gm launched this week. "we can lift our brand 20% through film. we'll particpate in a movie depending on our understanding of what story is being told." the ad campaign involving 60- and 90-second commercials came out as another g-m story was being told in washington--- where lawmakers grilled gm's c- e-o mary barra about faulty ignition switches linked to more than a dozen fatal accidents involving g-m cars. "i think the timing is unfortunate." brian fielkow, who's book "driving to perfection" explores corporate culture, says the "new g-m" mary barra talks about should have put put the brakes on it's movie campaign. "i sure would have put this marketing campaign off. i mean we're talking the seek of the
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testimony." the people g-m offered to speak were ready for questions about fatal accidents that led to the current recall of 2.6 million g-m cars. "as our ceo said, we're sorry the way this whole process has come about." and as he spoke, vehicles exploded behind him. "the general motors companies build cars that capture people's imagination and would be proud to own." "yeah, i do think the timing is a bit tone deaf." one marketing executive with g- m's movie deal said captain america was paired with chevy because they both share attributes of strength, honor and integrity" the film is expected to top the box office this weekend. still to come: why small business owners are frenemies with yelp ... and what it could mean for the stock. that's on tap in chart talk. and... turning down time off?! it's becoming a trend in america.... plus.. can women have it all? that's next with bill moller.
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see these hands? they gripped the wheel of a humvee in afghanistan. these hands? six years treating soldiers. twelve years, flying choppers. my hands? they're here for the person who fought in afghanistan. i made the call and got support for my sister. my hands are here for the person who treated those soldiers. i helped connect my son with the care he's earned. mine take care of the person who flew those helicopters. and if life gets overwhelming they're ready to dial the veterans crisis line. the veterans crisis line is here for all
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executives when she worked for quest communications a few years ago. you gave a ted-x talk and you said there is a myth associated with a work-life balance. how do you mean? > >i think that people are incorrectly searching for balance. they're trying to be perfect at the office and perfect at home. it just doesn't exist. it's frustrating and leads to a lot of disappointments. > >how did it happen for you? did you find it lonely at the top? you talk about in your book how women need to help each other get ahead. > >it's very lonely at the top for women. i think the answer is 1--to partner with men. but also try to bring more women to the top. and one of the answers is stop searching for balance. > >the book is the balance myth--rethinking work-life success. you say you need to make home life a priority and to sort of blend together home and work life. a lot of people would say is that really possible? > >i think it is. the cornerstone to your life is your home. if that's grounded you'll be grounded at the office
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too. but my trick was to bring the 2 lives together and to be one person to be authentic wherever i was at the home or in the office and not try to be 2 different people trying to balance 2 different lives. > >did you find that there was infrastructure to do that? was that sort of a rebel position to take? > >it was. at least in the corporate world. i was raised to think keep your home at home and keep work at work. i started bringing the home life into the work and the work life into the home and blending them together. now my kids understood why i was up all night working on something or why i was travelling all week to get a project done. > >do you need a sympathetic company to allow that? > >i don't think there are sympathetic companies. i think we have to work it out with ourselves within our work groups. i didn't ask to work at home. i didn't ask for special hours. i wanted to be treated the same as everybody else. > >how about critical mass where women are helping women? do you foresee a time when you don't have to be alone at the top? > >that's what i'm hoping for. that's why i wrote this book. i think that is possible. but i do think it's men and women together making the best
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decisions they can and running corporations together that have true success. > >here here. teresa taylor--- thanks so much. bill-- more than ever americans are becoming a bunch of workaholics! a new survey by glassdoor finds that only 25% of employees took "all" of their paid vacation days. 15% took zero and more than half took time off but did some working while on break. coming up -- a look at the latest controversy surrounding yelp. are investors wrong to bad mouth the stock? plus...is right now the stock market's shining moment? traders go unplugged to solve that mystery--- after the break!!
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forget sunday funday-- friday is a great day because it's time for traders unplugged. joining us from the floor of cme group.. alan knuckman and scott shellady are you ready to rumble? alan: let's do it. angie: here's topic number 1-- history lesson. now is considered by some the best time in history to invest in the market. what reasons do you see for buying stocks? alan: i like that we both agree on this. it's absolutely true. we have a level playing field.
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the combination of technology, tight spreads, and low commissions make it the best time ever for the retail investor. they can execute their trading plan and control their risk. that's what you need in these markets. scott: it's about availability, scalability, and how you enter and exit the market and yes i totally agree with you. whether or not the market is too high or not is a different story.i think that now the at home trader or retail trader has the best spreads they've ever had. alan: and they don't have to pay the million dollars that you did for your seats. they have access to the markets anytime, any direction, any market. this internet is going to work for everybody i think. scott: i agree. angie: topic number 2--money max & min - goldman sachs analysts says raising minimum wage would not be a job killer -- are you a buyer or seller of that or goldman sachs stock? alan: the floor is yours my friend. scott: go ahead alan. alan: i'm a believer in goldman sachs because their financial institution interest rates are low. earnings come out very soon. looking for goldman to go to $200. that's 20% higher than we are now. to get to the min- max wage situation--all of the minimum wage workers in america combined made half of the money
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of wall street bonuses in 2013. think about that. scott: and who's fault is it that we've had the largest gap between rich and poor? alan: i'm just making a point! scott: i agree with the goldman sachs call. we're at the bottom end of a large up trend channel. if we get below 163 i don't want to be in anymore but as long as we're above that it think it's ok. alan: so, goldman is right and a higher minimum wage would help everybody? scott: no...the minimum wage argument is only an argument because the economy is so bad.we wouldn't have to worry about it if the economy-- alan: the stock market's not bad. scott: you're changing the focus. but that's not the economy is it? alan: no. that's my point. angie: topic number 3--bananas to split? google did a 2 for 1 stock split this week. what does it mean for shares? scott: obviously what that means for shares is a half in value. some people are still calling for the earnings per share to be the same which means they were looking for double the earnings. however i say that the
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reason they didn't obviously was for control and because they keep giving away stock options. that's why they diluted. alan: so there a voting shares and non-voting shares. you get one of each. now what's going to happen is there's going to be 501 components in the s &p 500 now which will be interesting. but from a trading standpoint this lowers the price and makes it more appealing to an individual investor. 570 dollars is still not cheap. but to get back to the highs in relative terms we've still got 20% more upside google just to get back to those highs and if it gets back to those highs then we'll look for another $100 move. scott: alright, in english...it's an old trick and it works. how's that? alan: it does work. angie: with all this talk about high frequency trading we have a need for speed in our bonus round question today...so which is the phony ticker symbol? a - fast, b -kwk, c- rush? scott: i'm gonna say rush. alan: i have no idea. scott: i know kwk is quicksilver but i don't know what the other 2 are. angie: got it. quicksilver is an actual ticker. fast is fastnel
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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, 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.
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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". matt shapiro president of mws capital joins us. matt, you have your eyes on yelp. this is a company that offers an opportunity for people to review businesses--especially small businesses. what about the stock performance? > >the stock has done great
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since the ipo. it was 20 and went as high as 90. the last couple days and weeks investors have been contending with high valuations not only of yelp but all sorts of other internet stocks. yelp itself has been a victim of its own bad reviews most notably the wall street journal has been covering numerous complaints to the federal trade commission about yelp's business practices. a lot of small businesses rely on yelp to get reviews and get their name out there but they also kind of fear it a little bit. if they get a bad review they don't have control over things like that and that's really what these complaints are about. there's a court case winding its way through virginia where a business owner has sued yelp to reveal the names of people that have put up what he thought were malicious ads. > >how would you play this stock? > >i think all investors in the internet sector have to make a decision of what they think these stocks are worth. if you like yelp and think its got a good potential you just have to deal with a really big valuation. so once the internet sector has shaken out which is
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going to be a process maybe over the next month or so. maybe yelp comes down to a more compelling price closer to where it was during the ipo. > >thank you matt. > >you're welcome angie. that closes out our week. join us monday for stress buster exercises you can do at the office. and how it might even take your career up a notch. thanks so much for watching today. from all of us at first business have a good weekend.
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