stock market misery-- or the trading opportunity of a lifetime? in today's cover story.... vending machines get a "smart" upgrade ... plus... password scramble... consumers attempt to stay a step ahead of an internet virus and.... is wall street falling out of love with high momentum tech stocks? 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 11th. in today's first look: the big retreat on wall street. investors dumped blue chips, biotech, internet and other high growth stocks in massive amounts thursday. the dow fell 267 points, the nasdaq 130 and the s&p dropped

back 39. gold is the only green on the screen adding 12 dollars and oil slipped just 26 cents. also making news..crude oil reserves are at the highest level since 1976. reuters reports google glass goes public next week. the tech giant will take orders tuesday. the price tag is $1,500 dollars. and, the government reports 7.5 million americans signed up for obamacare. that news comes as the new york times reports-- kathleen sebelius-- the health and human services secretary who was in charge of the troubled rollout of the federal healthcare excnahge website is resigning. the president is expected to name a replacement today. oh what a market this is. joining us now is chris gersch of altimus capital to check out the situation on this friday. good morning to you. we had that close below 1840 in the s&p 500 yesterday. what happens today? how do you play it chris? >>good morning angie. the close below 1840 was a key level but

even more than that the 1834 right where it settled is a key pivot point for a lot of technical traders. if we see an opening this morning to the downside i believe that traders are going to expect that we're going to have a huge follow through on yesterday's selloff. >>what was going on on the trading floors? was it a panic selloff? was it a momentum downward move? what do you think? >>really what happened in the market was we've been so range bound, not getting close to any of those highs. it just got tired. what happened was a series of lower highs and lower lows throughout the dayit was really easy to trade. a 3 year old coud trade this. all you had to do was sell at the beginning of the day and at no time would a stop get hit if it went up even a little bit. it just slid all the way down like a staircase. >>i like that. even a 3 year

old could trade the market. what about the treasury move might be the most significant move even though all eyes are on the equities. the fact that the yield on the 10 year is at 2.62 is big deflationary concern and right next door we have these commodities that are approaching all time highs. so things for traders right now are really concerning because if equities are to fall out of bed and high commodity prices a lot of people think that this selloff could be a lot more than a correction. >>thank you chris. >>thank you. it's a volatile week to debut stock on the market. but going public today-- oil and gas infrastructure company enable midstream partners ticker (enbl), phibro animal health (pahc), cloud based payroll provider "paycom software" (payc). city office reit (cio) biotech firm-- aldeyra therapeutics (aldx) and zoe's kitchen (zoes) fast casual restrauant $15, yesterday, shares of auto lender-- ally financial slid 4% in it's opening day, cerulean pharma- a company focused on cancer treatments, fell 2%. and a-damas-- which deals with treatemenst for the nervous

system dropped %12 percent. on to chuck coppola with more stock action! angie...it's spin city for stocks. employment data firm a- d-p says it will spin off its dealer services business into a separate company due to the strength in the auto sector. ratings agencys moodys and s&p reacted with a downgrade, stating the spin off will increase credit risk. shares fell 66 cents. and, carl icahn--- has backed off his proposal for ebay to split off its paypal unit. even though, he still thinks it's a good idea. ebay fell 3 percent to $54 dollars. as the stock market tumbles... prices at the gas pump are surging. the average for a gallon of unleaded gasoline rose a nickle during the past week to $3.61. the national association of convenience stores' jeff lenard has the latest gauge of consumers. what we found in the last few months defies what we found previously. people are feeling the same if not a little bit better about the economy, even though gas prices are going

higher. lenard says its because americans are becoming accustomed to the spring transition in the gas industry that will eventualy lead to somewhat lower prices by may. general motors is taking a billion dollar hit. it will spend 1.3 billion dollars to cover costs related to it's recall of more than 2.6 million vehicles. the recall revolves around ignition switch issues. gm says it will add an ignition lock to all recalled cars. those parts begin arriving in dealerships today. despite the charge, executives are confident in gm's first quarter performance. the stock fell 32 cents yesterday. ceo mary barra says gm has put two engineers on paid leave. sac capital will pay a record $1.8 billion dollar fine for insider trading. the government's case against firm started in 2007. sac was indicted by a federal grand jury last year for churning out hundreds of millions of dollars in illegal profits by encouraging insider trading. sac founder steven cohen has never been charged. the hedge

fund changed its name this week to point72 asset management. three big credit card companies are the winners in a collusion lawsuit. american express, citigroup and discover financial services defeated a lawsuit accusing them of colluding to settle lawsuits in arbitration, rather than class action suits. plaintiffs say the conspiracy ran from 1993 to 2003. analysts say the ruling puts a big dent in consumer rights. a budget with tough cuts has been approved by republicans in the house of representatives. the budget by paul ryan calls for ending obamacare and deep cuts to social programs. but with more money going to the pentagon and health care for veterans. the idea is to have a balanced federal budget. 12 republicans opposed it. zero democrats supported the bill. one democrat says the measure is totally out of touch with prioritys and values of the country.

retailers are hoping for higher temperatures, and better sales in april. analysts say the late easter holiday and chilly weather slowed retail sales in march, though same store sales rose 2.5%. costco helped drive much of that growth. it actually benefitted from the late easter. the retailer normally closes on the holiday -- so staying open longer contributed to a 5% sales boost. some doors are closing at family dollar. the retailer plans to close 370 under performing stores. sales and earnings numbers at the discount chain are hurting. the company also plans to lower prices on roughly 1,000 items. in today's cover story, america's 42-billion-dollar-a- year vending machine industry is in transition. trying to shed its old image as boxes that dispense cigarettes and junk food....into healthy snacks while also fighting the growing problem of retail hacking. you can buy practically anything from a vending machine, but a steady slide in sales beginning in 2007 caused the industry to reinvent itself. "the historical perception is that it's all junk food." frank guzzone of global snack company mondelez says layoffs during the recession and the rise in telecommuting took

workers out of break room that vending machine operators count on for business. "we need to be current. we were behind technology." so now, vending machines are going digital, with screens that spin images of the product to show nutrition labeling, a part of health care reform. and the information in new vending machines can go two-ways-- there's a camera in them now that profiles customers. "it recognizes your age, gender, ethnicity and sends you a message relevant to who you are." it is the latest in what the industry's trade group calls vending and refreshment services...all on display at the national automatic merchandising association's trade show. "it's changing rapidly. we are consumer-driven, technology enabled. gen x and gen y love unattended retailing." also in transition, some readers can draw money from accounts set up with your thumbprint. "if you're not using your credit card, it can't be

intercepted. with our system, you load up an account and then use your thumb for however many purchases you make." the industry is also trying to replace a solid wall of vending machines in company break rooms with they call micro markets. natural goodies including fruits, juices and salads are stocked. there are five thousand in companies throughout the u-s already. a consultant to vending's trade group predicts there will be six times that number within five years. also from the food beat... walmart wants an "organic edge." it will tap into tastebuds of heath concious consumers by selling food from the "wild oats" line. walmart intends to disrupt the oranic industry by pricing the products 25% lower than other national organic brands. as big macs move out of crimea-- whoppers may be moving in ...according to a report-- the ceo of burger king russia is deciding how many locations to open in the newly annexed russian territory. mcdonalds recently closed up shop in the region. in russia--the burger chains are in a battle to reign supreme.

business is taking a breezy turn at ikea...the retailer known for its furniture just purchased a wind farm outside of chicago. the goal is for ikea to operate 100% on renewable energy by 2020. the company plans to spend $2 billion dollar to make it happen. and from the drug industry-- merck's hepatitis c treatment shows signs of hope. the cure rate was 98% in a mid-stage trial. bristol myers also reported achieving positive study results by 90% for its hepatitis c treatement. while gilead sciences has postive findings from phase 3 trials. gilead shares plunged 7%,merck lost 2% as did bristol myers. cancellations soared in the airline industry as winter weather tripped-up flights. on-time arrival rates collectively fell to 78.4 percent in 2013, down from 81.8 percent the prior year, according to a report from the department of transportation. only 70% of flights were one time last month. the 3rd lowest in 19 years. americans who are married,

older and female tend to get the best rates on car insurance. but even for drivers who don't fall into those categories laura admas of insurance quotes.com says it's still possible to steer toward a discount. there are some things we can't control like our age and our gender. but even if you can't control those things that doesn't mean that you won't qualify for other types of savings and discounts. so be proactive, talk to your insurance company and find out how to save money. and of course shop around, each year to make sure there isn't a better deal out there that you're missing." adams says students, and younger married couples are the most likely to overlook discounts. just ahead... what to expect as two of the biggest banks get thrown into the earnings spotlight today... and ready to rumble..in traders unplugged the guys take a cue from the price right.... plus... by now you've heard the

panic over the "internet bug" heartbleed...after the break bill moller tells us what you need to know to protect your computer. real issues they're dealing with

can be awkward and uncomfortable. but when their behavior changes, it's time to act. because if we don't, our families and relationships will suffer.

listen to the veterans in your life and show you care. it matters. when you recognize a veteran is in crisis, call the veterans crisis line at 1-800-273-8255 and press "1".

the world is still coming to terms with the heart bleed bug - a careless error in an open source program that 2-3rds of web servers use to protect sensitive data, like your bank records. while sites fix the error, the question remains - what does this tell us about online security in general? jerry irvine is president and cio of prescient solutions and was a member of the cyber security task force. short term, what should we be doing if we conduct a lot of online transactions? >>the first thing i would do is start using payment centers like amazon, google, or paypal

so that my transactions will be with one company not multiple and that will limit your exposure to these other servers. >>and then test the servers you do business with to make sure they have done the fix before you change your password. >>absolutely. if you go in and put in the name of your bank and it will come back and tell you if they fixed it. if they have, change your password. if they haven't and you change your password, they can steal it again. >>we love online banking and buying. we put more of our personal services online but do we need to be more wary of this huge interconnected electronic universe? is it ever going to be completely safe? >>nothing is 100% safe. all manufacturers have monthly patches and system updates and security updates. >>windows updatesfor years. >>all of those have to be done. in the old days when you wrote a check and went to the bank and

cashed it that was not secure either. people could make a copy of that check, they could erase you name, put in different amounts so it's the same risks. >>is there an ultimate fix coming down the pike? >>there currently is a public sector-private sector group that's going out and trying to develop a centralized authentication organization that will basically assure that the people that you're talking to are who they say they are and that you are who you say you are. that way hackers can't come in and steal your identity. >>do you think that companies should set up vpn'sa network within a network? >>as we continue to move i think you will see organizations that are using some type of network within a networka virtual private network to allow communication of their core users. and that will provide them another level of security. >>maybe sometime soon the marketplace will demand something like that.jerrythanks so much. >>thank you. it's a scary situation bill, thank you... still to come ... how a trader is playing tech stocks in the midst of a market melt down..

and after this break.... two traders let loose on clean air supply, " alcoa earnings.....and the new host of the late show. stay with us!

the wild week in the stock market just became wilder as alan knuckman and scott shellady join us from the floor of cme group for traders unplugged. good morning guys. let's start with topic number 1- bearly sell? darling tech stocks facebook and tesla fell into bear market territory? what's your play on these momentum stocks? alan: they're coming back down to their support pointstheir breakouts from last fall. that could be leaned on from risk reward. but you've gotta be careful with any of these momentum stocks. they can go a lot higher than you think and they can go a lot lower than what you think for sure.

scott: i think a lot of the work has been done now. what was going to take a momentum stock even higher from here is more momentum. i think globally and as far as the u.s. economy goes, we're kind of running out of steam here . we're at the top of that mountain, we're running out of oxygen. if they fall back again take another look. alan: tesla is still up 400% over the last year. scott: so get long at 400%? alan: but from a risk reward it's hard to be a buyer when it's up that much. angie: topic number 2-- kickstart me. alcoa has been on tear since it left dow index...what does its earnings say to you about the earnings season? scott: i think the earnings season has been alan:--just started. scott: --has been set so low we could get over it with a skateboard. so i'm not gonna be that excited about everybody beating their earnings. we need more growth, not just these better earnings. what a great earnings market would do is stop the market from going down too much. alan: i like alcoa. it's come up a long way from the lows july 4th. but if you look at it technically we still have a lot more upside. you could see the stock double to get to 26 and that's the halfway point of the

previous high. scott: what does that say about the economy? what does that say about the market? alan: i'm looking at the stock alcoa and i like it still. scott: but what does that say about the market? alan: the market is still very bullish until proven otherwise and right now it's starting to feel a little otherwise but not that much. angie: topic number 3-- china smog. fresh air in a jar is selling for $800 in china, is it healthy enough to invest in china again using the fxi etf? alan: what i'm mad about is that you didn't think about selling air in a jar for $800. we've seen china bounce back more than 10% in just the last 3 weeks so the death of china has been greatly exaggerated. just like we get in these malaises when the market sells off, every market selloff has bounced back and it will until it doesn't. but i still like china. i think it has been trading between 32-42 and the target is 52. now they're 40% higheri still think there's a lot of legs left in that market.

scott: that chinese etf is going to have to trade above 37 and stay there for a few days because i think it's been in a downtrend but it had recovered as of late. i don't like it. the news we got a couple days ago was bad. i'm not a big buyer of china at all so if it stays below 37 i'm a seller. angie: here's your bonus round question-- cbs confirms stephen colbert will replace david letterman as host of the late show. let's see who can come closest to the 52 week high of cbs stock. alan, we'll start with you. alan: oh jeez. angie: that's not an answer. alan: i have no answer. zero. angie: scott? scott: $1. alan: that's why i wanted you to go first because that's the only trick i knew. angie: the answer is $62.36. thanks for playing. great to have you on the show. first business continues right after this.

tim biggam joins us on this friday for a check on the charts. good morning tim. let's get down to it and talk about those big banks. yesterday on the show we highlighted wells fargo which has had a tremendous run already this year. what do you think about jp morgan? >>jp is a little bit different category.more of a money center bankmore reliant on trading than underwriting like wells is. certainly from the trading sidefixed income especiallyhas languished to say the least. i personally think jp morgan given the run up its had to proceed with caution even with a little bit of a selloff recently. i look for lower levels on jp and the monet center banks in general. >>we will watch for both of those earnings coming from wells and jp morgan today. also, it's been an insane week for tech trading. how are you positioning? how are you hoping to profit? >>on these i'm actually taking

a short term bearish position on the names that have collapsed. up around the old highs, i'm selling out of the money call spreads, looking to collect some premium. really thinking that the run to new highs will probably take a while to say the least given the fact that relevering here and that momentum seems to be waning on these names. so i look for those big tech names to probably chop around here and have trouble getting that big upside move selling some out of the money call spreads to profit from that. >>is there any particular stock that you are watching that you would like to own at lower levels that you're keeping your eye on? >>actually a name like apple which is trading at a very cheap valuation. if it breaks down below that 500 level i would not minfd owning it there. some of these utilities that have been beaten up i wouldn't mind owning those on pullbacks. i think that the rotation out of momentum and into value will be the theme going forward as risk continues to come off the table here. although the market may grind sideways. >>thank you tim. >>thank you angie. that closes out our week.. coming up next week.. last minute tax tips just ahead of the april 15th deadline. from all of us at first business-- have a wonderful weekend.

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