profits on the line.. traders prepare for a market moving week of tech earnings! in today's cover story... college graduates flock to trendy new cities find out the hot towns. plus.... boston marathon runners unite today... why scammers are out in full force. and... deal or no deal? the guys debate "the inflation factor." first business starts now! good morning!i'm angela miles.it's monday, april 21st. in today's first look: stocks start the week with gains. even though the dow fell friday. it's still was up for the week.along with the s&p and nasdaq.the s&p had its best week rally since july..gold polished off a 2% loss for the week.oil settled at a 6 week

high. gm's cars recalled for faulty ignition switchs remain on the road after a texas judge denied an emergency motion to stop the cars.the illinois attorney general launched an investigation into the business practices of herbalife. the stock fell to $55 dollars friday. the company denies the allegations. chris gersch of altimus capital is on the trading floor for us this morning. good morning chris. >>good morning angie. >>stocks are hanging tough, even with stumbles from google and ibm. >>you hit it right on. as far as the market is concerned it is holding on to whatever gains it had last year and the momentum has switched from a bearish to bullish tone last week. as far as traders are concerned there is parity. about 34% of the options is in a neutral based strategy. a lot of traders don't know where the market is going from here. >>what do you think about the performance and earnings coming from general electric? >>i think general electric is fantastic. even with that 2-3%

gain that we saw on thursday. i think there is a lot of momentum to the upside. they have great world exposure and despite euro concerns, they still went up so i think the momentum is to the higher side. >>treasury yields are also on the way up. will that continue this week? >>i think treasury yields are bound to go up. the yield curve is so flat right now, any steepening will be a great thing, closing at about 2.72 on the yield. fantastic things in the 10 year for those looking for a bearish tone in those bonds. >>thank you and have a good trading week. >>thank you. it's a heavy week of tech earnings. netflix leads it off tonight. shares are down about 27% since mid-march. wall street analylsts are mostly bearish on the stock as traders are turning somewhat bullish. in a pre-earnings move-- facebook just launched a new feature on its website called "nearby friends". apple reports wednesday-- and investors will

be anxious to hear if the company plans to return more cash to shareholders. also, key to apple's earnings the latest count on iphone and ipad sales. chuck coppola has eyes on ipos-- good morning chuck.. good morning angie..it's a wild week for ipos. high frequency trading firm virtu is "indefinitely postponing" its ipo. it follows the release of the book "flash boys" by michael lewis- and the subpoenas of firms involved in high speed trading. most eyes are on alibaba-- which isn't coming to market this week.. but could file with the s-e-c to get the ball rolling. the chinese giant tech company could top $16 billion with its ipo. weibo, known as the twitter of china, soared 19 percent in its debut friday. saber- the travel tech company owbed by travelocity-- was given a 3% lift by investors in its first trading day. the frigid winter turned up the heat on trading at morgan stanely.. and possibly goldman

sachs as well. both firms pointed to commodities trading as a strong spot for first quarter earnings. goldman had no comment but-- morgan's cfo tells reuters-- we had real strength in commodities, given volatility in the market driven by weather and robust client activity. the deep freeze set off a winter of volatilte, rising prices in natural gas. generating a big money win for firms on the right side of the trade. post is adding to its breakfast menu with the purchase of michael foods. the nearly two- and-a-half billion dollar deal is the biggest buy for post and doubles the company's size. post is best known for cereal, but will now diversify with michael foods' simply potatoes, crystal farms cheese and prepared egg products. price hikes are becoming the norm in the food industry..chipotle will raise prices for the first time in

three years, because of higher costs of beef, cheese and avacados. the mexican restraurant chain reported an earnings gain, but it fell short of analysts expectations. the higher food prices will show up on the menu this summer. the stock fell $31 dollars friday. at pepsi-co, higher prices for its soft drinks boosted revenue in the first quarter. -- offsetting flat soda sales. the stock rallied 78 cents. phillip morris profits are getting snuffed out. the tobacco company reported first quarter profits fell 12% due to fewer cigarette sales overseas. shipments dropped to eastern europe, the middle east and africa, among others. amid the dropoff in cigarette sales, phillip morris is preparing for a push into e cigarettes. obamacare is giving a shot to the economy.. consumer spending increased by $20 billion according to the latest figures-- $13 billion of that came from health care related servces prompted by the affordable care act. it's because more americans have insurance to cover surgeries and other medical needs. however, according to cnn a non profit group cautions it may be one-time bump in health spending.

it's estimated 12 million americans who didn't have health insurance before- now have coverage. in today's cover story, apartments-dot-com's list of top u-s cities for recent college graduates combines salary, rent and things to do. and none of the top ten are on either coast. apartment-dot-com found that recent graduates might do better financially if they look away from the coasts where average rental costs are highest. in new york city, excluding staten island, for example, the average 1 bedroom apartment rents for more than three thousand dollars a month. "you can make a lot in ny and sf but you're going to be spending a lot, too and we think it's important to look at what your net is, in the end." for recent grads, apartments- dot-com says denver tops the list with rent for a one bedroom apartment averaging 12-hundred 48-dollars. in the next eight cities, that rent is under a thousand. cincinnati is cheapest at little more than 700 a month. dallas rounds out the top ten with rent a little under 12-hundred. but labor relations professor

bob bruno doubts graduates will look at all factors--and instead focus on the job, its pay and career potential. "i think they go and double up and eat tuna fish and peanut butter and jelly." the flip side of this is outbound migration--people leaving places. new jersey tops the list. illinois is second. "our rents are going dramatically higher and people are saying, "i can't stay here. some are moving to indiana, which is highly affordable." guzman says when rent climbs too high and too fast, talented employees move elsewhere. for recent graduates, apartments-dot-com says student debt which has soared in the last ten years also impacts housing options. american wages are rising. the latest numbers from the government show weekly wages

grew in the first quarter-- at the fastest pace in more than 4 years. pay increased by 2.7%. the data goes even deeper by revealing women earnings 82.8 cents for every dollar earned by a man. as for the skills gap-- the median pay for college grad per week was nearly $2000 compared with $600 for high school grads. walmart is adding money transfers to its list of discount offerings. the retailer's service fees are about 50 percent cheaper than competitors. walmart charges $4.50 for transfers up to $50 - and $9.50 for the maximum of $900. western union charges $76 dollars per $900 dollars, and moneygram, $73 dollars. walmart's service begins april 24th. target is taking aim at amazon. as a traditional brick and mortar retailer, target is expanding the number of products it sells through online orders. to compete against amazon... target increased it's product

count from 150 to 1,600 items including beauty products and pet supplies. target executive says the move is driven by strong demand. sears and walmart are both far ahead of target in online sales. the wheels are in motion at new york's auto show. the show is now officially open to the public. some highlightsinclude a redesigned toyota camery and the rugged 20-15 jeep renegade. the celebration of new cars comes as the industry faces a string of recalls. auto makers dispute claims that the amount of recalls in the industry were caused by congressional scrutiny of g-m. "we have a vigorous safety program. we don't do it because gm is being looked at. we have internal processes that catch these things and we act accordingly." infiniti has said fewer than 500 q-x-80 s-u-vs would be recalled for mislabeled stickers

that overstated the weight capacity of the vehicle. federal regulators say it could lead owners to overload the s-u- v and increase the risk of a crash. none has been reported. it's a proud day for boston. the beloved boston marathon takes place today. it follows last year's tragic event. 3 people were killed and 264 were injured by two bombs that exploded near the finish line. as the race gets underway, the better business bureau warns of scams surrounding the anniversary of the boston marathon bombing. "unfortunetly these are scam charities, that are taking advantage of the situation, so we ask consumers do their homework, check the charity itself, before donating, give but give wisely." steve bernas says check into a charity -- especially if it reaches out to you. typically scammers trick consumers into donating by email, phone or even by coming to your door. 36,000 people are running the race. and we wish all the marathoners a strong finish..

still to come tricky trades ....are underperformers stocks ready to rally this earnings season? and... in traders unplugged, the guys have a case of the mondays! . plus... bill moller finds out why the beer industry wants to avoid becoming drained by the drought. but first, surprising information all parents should know to keep their teen drivers safe behind the wheel, in today's in-the-know message.

water is the main ingredient in beer and with water becoming more scarce, america's breweries are doing something to protect that natural and important resource. kim marotta is director of sustainability for millercoors. what's happening and where is it happening? >>it is happening all across the united states but we are really focused in the west at our breweries in california, fort worth, and colorado. >>so breweries but also in the field where things like hops are grown. >>absolutelywhere our barley is grown. agriculture in montana, wyoming, idaho, and colorado. >>so what are you doing? >>we are working hand in hand with our barley farmers and producing precision irrigation. in our breweries we are becoming more efficientmaking more beer using less water. >>how about some examples in the brewery of what you are doing? >>in our breweries we are doing everything from changing out water sprays. we have a drying loop that moves bottles down the line and we remove water

from that. >>water used to be used to clean the bottles out, now you are using air? >>ionic air rinsers. we are reducing the amount of time we clean kettles.we are looking at every step of the brewing process. >>what has been the result. how much more efficient have you become? >>it has actually been great. once we got focused on it we have been able to reduce our water use to 3.49 barrels of water to produce one barrel of beer which is really a leading edge example. >>that is kind of an industry leading standard. >>it is. we actually have one of our breweries below 3 and several of our breweries below 3.3 we have room to grow but we are leading the industry in this space. >>where does most beer come from that breweries use? is it surface water or down in the aquifer. >>it's a combination. so sometimes like at our trenton brewery we have wells. at our milwaukee brewery we pull it from the great lakes and lake michigan. so it depends on the brewery and the exact location. >>are you working with other brewers in america to try and conserve water? >>it is a collaborative effort. we need to work with government

and ngo's. we definitely need to be open to working with other brewers. >>but they see it as well. >>absolutely. it is an issue for all of us. if we want to produce great water and great beer, we have to do it together. >>kim marotta from millercoorsthanks so much. >>thank you. thanks bill! coming up....on the earnings marquee: it's facebook, apple and netflix. a trader covers it all in chart talk. and after this break... it's traders unplugged: the monday edition. why the guys are divided over the price of dinner. stay with us!

what a way to start a monday.joining us from the floor of cme group--- alan knuckman and scott shellady here to rock it out in traders unplugged. happy monday guys. topic number 1--ipo pigs - the 5 billion dollar hog ipo by wh group -- smells badly to some investors -- what will that mean?

alan: the first thing i want to say is it's all about timing. they're putting this out there with the all time highs in hogs. 5 billion is a lot of money but what is most egregious is these guys get a 600 million dollar bonus in stock shares, not options. so they are getting paid out right now. scott: the crime of the century is the fact that it's a smash and grab because we have had more ipo's in the last quarter than we've had since 2000. so they're coming for the money. the other problem is they are going to get away with it and they will get paid and life goes on. it was a big merger and it probably should have happened and it was probably good for both companies but at the end of the day it is egregious and should not happen. angie: topic number 2--salad spinner - produce prices are on the rise what is your inflation temperature and when will the

market feel ill? scott: i think the market should be feeling ill already. if you take a look at a lot of things you use to get to work in the morning and the things on your table for breakfast, lunch, and dinner are all between 5- 15% higher. if anyone ever invited you out to dinner alan you would notice the menu prices are higher too. alan: the only inflation i'm worried about is my tv is cheaper, my vacations are cheaper. everything is cheaper. the only thing that is not showing inflation is wage inflation. i think that would be the only tipping point and unfortunately for everybody that gets paid i don't think that's an issue at all. angie: topic number 3--hot and not -what asset classes are best to invest in now ? alan: there has been a complete turnover. what was great last year is terrible this year and vice versa. i'm of the school to look to buy things that are distressed or on sale just because you have better leverage and less risk with greater rewards. scott: that school that alan is trying to convey to you is called the portfolio theory of money management. it simply says that you can't pick them. so if you are given a 20 year time horizon, if you take the top of the winners and invest in the losers once a year so there is not a lot of churn and burn, you have a 99.9% chance of beating the s&p or whatever the index is.

alan: dogs of the dow. look at goldthat got beaten down. that had a nice healthy bounce back at the end of the year. the nasdaq was down nearly 10%. from a leverage standpoint i would rather be a buyer of some of these long term tech stocks and wait for a bounce. technically speaking, we could see a nice big move if it recovers and gets to the highs. angie: time for your bonus round questionmonday, monday. who can name the most songs with the word monday? just shout it out. alan: blue monday. is that a song? scott: monday, monday. i don't like mondays. alan: monday mornings. scott: i don't like monday morning questions. angie: very good. you did better than i thought. 'monday, monday' the mamas& the papas, 'manic monday' the bangles, 'i don't like mondays' the boomtown rats,'new moon on monday' duran duran. alan: roll out the segment with manic monday. angie: wish we could but we don't have the royalties so we can't pay for that. thanks for being on the show. have a great monday guys. first business continues right after this.

it's a huge week for tech earnings. joining us now is andrew keene, president of keeneonthemarket.com. happy monday andrew. >>happy monday angie. >>let's begin with netflix. earnings coming out after the close tonight? what do you think? >>the option market is implying about a $40 move. we saw netflix go from 80 to 460. now it is back to $340. i think it's going to make a big move. it always makes a big move on earnings. i don't think there's going to be any free passes in this. people don't want growth stocks. their allocation has shifted. cmg chipotle had an unbelievable earnings report on friday. the stock was up $27. it reversed and ended up down $15.

so i don't think there's any more free passes. i'm going to be looking to play netflix through the options market to the short side. i'm thinking it might be able to touch down to the $280 level. >>what do you think about apple and earnings? >>if someone said what earnings are going to be the best, i would think google and facebook. facebook is this week. google was last week. google sold off. ibm is a great looking chartthat sold off. yahoo actually did well on earnings. that one historically doesn't do well on earnings. it's been very tricky to trade earnings around this. so apple, i don't think they're going to say anything that good. i don't see it moving that much under 500. >>i'm seeing a lot of call buying in facebook. what do you think about that? >>facebook would be the one i would play to the long side out of any of the social media stocks. linkedin and twitter looked broken. facebook i would get long it through call butterflies using a measured move target. i think they are implying about a $5 move on earnings. so facebook would be one i would look to get long,

otherwise i would probably play to the short side. >>andrew thank you for the tech talk this morning. >>thank you angie. that's it for today.. coming up tomorrow.. have retailers from walmart to h&m improved working conditions in bangledash.. since the tragic building collapse a year ago that killed more than a thousand workers... find out tuesday. from all of us at first business.. have a great week. we hope you'll be back tomorrow.

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