is it time to drop the doom and gloom matra about the economy? in today's cover story....lawmakers on the hill prepare for showdown on the keystone pipeline. plus....wall street's most famous investor spills secrets... and.... anyone wanna go to russia? why tourism is tumbling. first business starts now! you're watching first business: financial news, analysis and today' good morning! i'm angela miles. it's tuesday, may 6th. in today's first look: triple digit turnaround. the dow made a 100 point leap from a sell off to a rally. as traders first feared the worst about china's economy and tensions in

ukraine. but stronger than expected ism services number lifted the mood on wall street. the dow gained 18, the s&p 4-- trading near a record high and the nasdaq 14. with apple closing above $600 for the first time since 2012. gold is above $1300 per ounce and oil below $100 per barrel. another high ranking engineer is leaving gm. it follows the delayed recall of small cars with shakey ignition switches. coke drops the controversial ingredient- brominated vegetable oil from its drinks. in our trader talk this mornig brian battle director of performance trust capital is on the trading floor for us. good morning to you brian. >>good morning. good to be here. >>what's your take on treasuries? there was quite a move yesterday. >>the market is in interesting spot. we're kind of at the lows of rates. just when you think rates will be higher, the fed's leaving the market. we have auctions of threes, tens and thirties and the stock market's at the high so it's a very interesting treasury market. rates might be under a little pressure this week given that

we have auctions. >>what are traders awaiting as janet yellen heads to capitol hill on wednesday? >>she hasat least on one occasionput her foot in her mouth during live testimony. so we'll see if she can keep it under control and make sure that she gives answers that are appropriate. she might have learned her lesson last time giving us an exact a couple of months time frame on when tapering was going to end. the fixed testimony is going to be fine. it's the q & a that's going to get interesting. >>are traders still fascinated by this stock rotation that's happening in this market? >>the stock market really defies logic because we've come a really long way on fed liquidity and momentum. we had a 26 percent rally in the indices last week. last year people wanted to stay in. but it seems a little tire because the economic fundamentalscertainly given the numbers we had last weekreally aren't supporting an economy that looks like it's growing to support these prices. three things that make it look a little tired is we have a lot of ipo activity. if you own a business and you think it's worth something, don't go

public and try and cash out. the second is m & a. there's a lot of m & a activity. that means if you can't grow your company organically you go and try to buy someone else's market share. the last and worst one i think is share buy back. you don't have any better idea than to go give the money back to the shareholders and buy your own stock. you can't grow your company some other way. that feels like the market might be a little toppy. i don't know when, i don't know the timing. but it feels like we've come a long way on momentum and the ice is very thin right here. >>thanks for filling us in brian. take care. >>you're welcome. see you next time. "not too big to jail." that's what attorney general eric holder says about big banks as the justice department reportedly is close to a $1 billion settlement and a guilty plea from credit suisse... when laws indeed appear to have been broken when the evidence supports the allegations a company's size will never be a shield from prosecution or a penalty.

holder made those comments monday on the justice department website. critics accuse him of reaching mega settlements with banks, but not requiring bankers to admit to wrong doing. holder did not name names of banks under investigation. but did say he's personally monitoring them. the wall street journal reports--- banks including wells fargo are ramping up lending to hedgefunds that buy complex debt securities. those collaterlized loan obligations were at the center of the financial crisis. a new report from the fed shows banks are still tough on americans attempting to buy homes. chuck coppola steps in now with an update on a ukraine bank... an update on a ukraine bank... ukraine's largest bank says it is too dangerous for its workers to continue doing business at several of its branches. privat-bank has temporarily closed outlets in separatist-held areas.

on its website the bank says that in the last ten days 38- atms, 24 branches and 11-cash collection vans have suffered arson, assault and wanton destruction. the crisis in ukraine is taking a toll on russia's tourism. the wall street journal reports... a steep drop in foreign visitors to russia coming from the u.s., asia and europe. in 2013 tourism grew to 3.7% and was expected to generate 12 billion dollars for the russian economy this year. but now cancellation rates are surging. what we're seeing about now is a cancellation rate of about 15% to 25% of trips that are happening to russia but if the conflict escalates into something more..that rate is likely to go up and it could be as high as 50%. that was michelle grant of euromonitor international who says russia's weak economy is hurting outbound travel, too. it is starting to have a ripple effect on tourism in greece turkey, and spain, among others. after years of imposing unpopular austerity measures portugal makes a clean exit from its bailout. the country's prime minister made the announcement that portugal was exiting the three-year, $108- billion rescue package without a precautionary credit line from lenders. the move is considered

something of a gamble as portugal continues to struggle with high unemployment and debt. in other financial news out of the euro-zone -- the european commission predicts slower growth as low inflation remains a threat. maryland's governor has signed into law a higher minimum wage in that state. workers will start earning at least $10.10 an hour by july of 20-15. the state's current minimum wage is $7.25 per hour. seattle's mayor says he plans to raise the minimum wage in that city to $15 per hour over the next three to seven years. seattle is the first major u-s city to commit to such an increase. in today's cover story, job creation is behind a renewed effort in the u-s senate to bring the keystone x-l pipeline to a vote, perhaps as early as this week. how many jobs the keystone x-l pipeline may create is the subject of debate. transcanada, the company that hopes to build the pipeline and shows on its website how thousands of sensors along the pipeline would ensure safety calculates nine thousand during construction---but hasn't said how many will be permanent after constuction's complete. the state department says 39- hundred if the work's done in one year. 1,950 if done over two years. and afterwards---50- permanent jobs. into that debate, louisiana senator mary landrieu facing a tough re- election campaign says its time to start building.

"having a pipeline is much safer than trains or trucks on highways." the pipeline extension won't go through lousiana. but its a state where one out of every six jobs is connected to oil. "at the end of the day, we need the keystone xl pipeline. it'll be good for the us economy." the pipeline would cut a diagonal line from an existing pipline--carrying oil from tar sands in canada, south to the gulf of mexico. but across nebraska, the precise route of the pipeline has not been finalized. the obama administration has delayed approval until then. but this week, pipeline supporters are trying to force the issue which drew rallies by environmentalists such as this one in philadelphia. "senator casey could be one one of those votes. we need him to vote against." "the moment we start investing capital in these projects, the less there is for alternative

solutions." supporters are trying to attach the keystone x-l pipeline vote to energy efficiency legislation. senator john cornyn of texas says a vote on the pipeline only would be insufficient and not likely to get the president's signature. hedge fund mogul daniel loeb won his way with sotheby's. the auction house-- will add 3 new members to its board: daneil loeb plus restructuring expert harry wilson and former investment banker olivier reza. loeb's firm third point will be allowed to raise its stake in sotheby's to 15% from 10%. dan loeb third point have a history of of large cap activism at large cap companies (or start here is show is long) 49:18 i think his victory in the sotheby's situation through settlemetn is going to encouarge other activists in large caps.

that was keith gottfried of law firm alston and bird. for months loeb has criticezed the ceo of sotheby's of deteriorating the company's competitive positiion. last friday a judge put a limit on the amount of stock third point can own. one watchdog group reports there have been 20 settlements between companies and activists this year. target's stock slips into the red as it's ceo departs 5 months following a massive cyber security breach. shares tumbled 3% monday, as gregg steinhafel, a 35-year veteran of target -- resigned. c-f-o john mulligan will serve as interim president and ceo. the company said in a statement "after extensive discussions, the board and gregg steinhafel have decided that now is the right time for new leadership at target." the holiday hack attack impacted more than 40 million consumers. ken perkins, a morningstar analyst says there is hope for target's brand, and shareholders.

"consumers tend to have a short memory unless there is somethiing that really causes them to remember and alter their shopping habits permanently and we just don't think that over time the brand equity has been damaged to the point for people to stop shopping there " morningstar believes target will generate better returns when the data breach is behind it and when it gets its struggling canadian operations back on track. in ipo watch ...shares of gaslong partners are expected to price in after the close. the company operates and owns liquefiend natural gas carriers. the stock price is expected between $19 and $21. and trade under the ticker symbol glop. an ipo that is starting to gain traction trades next friday. truecar.com a car price comparison site--could reach a market value of around $1 billion dollars. the price range is $12 and $14 dollars. the ticker : true. and the watch continues for alibaba which could soon file for the largest ipo in stock history. google and amazon are taking a shipping war to los angeles. starting this week--the two companies simultaneously started offering speedy, same

day delivery service in l-a. both companies say quick shipping turnarounds are the future. amazon offers the one- day service in 12-cities. and in another shopping frontier -- twitter and amazon are partnering so users can shop amazon via hashtag. the percentage of americans without health insurance is at the lowest level in years. a new gallup poll shows a dip to 13.4%. the lowest in six years and down from a high of 18%. the steep drop is attributed to the new mandates of the affordable care act. the number of uninsured people is likely to fall further because federal officials extended the signup deadline following last minute surges in enrollment in march and april. challenges in corporate america trickle down onto earnings. profits doubled at tyson foods on higher meat prices. however, earnings fell short as its ceo cited a rocky second quarter due to the harsh winter. the lagging data sent shares plummeting 9% yesterday. and a big revenue decline at pfizer. profits fell as patents for some of its popular drugs expired. the result--opens the door for cheaper, generic drugs to be produced by rivals. prifzer could not comment on it's full-year outlook due to

its proposed merger with u-k drug maker astrazeneca. shares closed out the day down two-and- a-half percent. still to come: as netflix and amazon rush to put on a show for investors.. is it time to invest in cable? plus....a trip to "woodstock for capitalists".... and, the tell tale signs the economy maybe gaining strength... that's after this break!

stocks are trending higher, the latest manufacturing and non- manufacturing numbers continue to show expansion, and friday's jobs number toppled predictions. joining us on set this morning. is susan schmidt

managing director portfoliomanager of u.s. equities at mesirow financial. welcome to the show this morning. >>thank you. susan is time to drop this doom and gloom theories about the economy? >>i think it's okay to leave doom and gloom behind right now. i think we've moved past that. still maybe wait and see but an optimistic wait and see. so that's a good thing. >>so we're almost through earnings season. we still have a little ways to go but what do you see that you like or don't like? >>i think one of the most interesting things i've seen this earnings season is among small and regional banks. among the ceo's and management teams i've talked to on the small and regional banks, they're showing

great loan growth. that means it's a good thing for the local economy. businesses are out there looking for loansthere's industrial and commercial activity in those markets. i think that's a really good sign that at the grassroots level the economy is starting to bubble up again. >>here's a controversial questiondid the stimulus work? >>i think it's too soon to say it worked or it didn't work. did it help? i believe that it helped. but that's something that decades from now economists will go back and probably debate again. certainly quantitative easing round 1 helped and after that i think the debate will rage on for a decade or two. >>knowing what we know so far about the economic conditions, where are you putting your money? >>i'm always a big believer in the stock market and i like the fundamentals of business right now so companies are operating very profitably. they're makingmoney. they've got a lot of cash on the balance sheet so they're very healthy and good positions. i can get a great return investing in those companies far better than i can get investing in my bank account at a zero percent interest rate. so i like stocks. i still think equities are a good place to be and that's where i would focus. >>susan, great to have you here. come back soon. >>thank you so much. coming up...its show time for a money manager who is screen stocks in the cable sector...plus... after the break bill moller takes us up close and personal with mr warren buffett.

stay with us!

once a year and this past weekend omaha nebraska was the center of the investing universe for the berkshire hathaway annual shareholders meeting. the woodstock of capitalism. the highlight is the q & a session with warren buffet and his deputy charlie munger. gregg warren is the berkshire analyst for morningstar. and you were on the panel asking questions to buffett and munger. 20-thousand people in the qwest center and there you are on stage at the center of it all. a thrill - or a panic moment? >>you would almost think it's a moment of panic. you're getting set up 15-0 minutes before they start the whole thing off. oddly enough, i just sort of phased out the fact that there were 20 thousand people sitting there in front of me and really focused in on the questions. i think it helps too because warren and charlie are right off

there to the side of you. you've got the laptop in front of you and you're reading the questions directly off of it. so you're really focused in on what you're doing. you're also paying attention to how they are answering questions. you're looking for potential feedback loops, potential follow up questions that you can ask. so after a while, the crowd just sort of phases out. >>you only hear them probably in those lighter moments and there's humor in the air. >>you know you've asked a good question too when they start clapping or they start laughing after the question comes through. >>i know there were no moments of great insight and revelation but a lot of little nuggets that helped you as an analyst. talk about where the sectors are in the berkshire portfolio and how they're doing and what questions were asked about it. >>there was a lot of questions

this time around about burlington northern, about mid america and we brought a few questions to the table. we were really looking at where acquisition activities potentially taking placeit looks like it's going to be a lot more on the mid american side. i brought up a question about capital spending and cash allocations because berkshire is sitting on a ton of excess cash right now. we brought up the point that burlington northern is still paying berkshire a dividend and mid american does not. mid american is able to use that cash to go out and buy other things. >>how about the succession? that's always a question. you have an inkling about that. >>i think from the succession perspective we're looking at ajit jain. we think he's probably the best capital allocator in chief that warren can bring in. >>what about his son warren buffett jr? >>howard is actually going to be the chairman of the board. that's already been spelled out. he's currently taken on some of the director roles like on the coca cola board. he's definitely in that chairman role. he's sort of protecting the culture of berkshire longer term. >>gregg warren from morningstarthanks so much. >>thank you. thanks for talking buffett- paloza bill. still ahead-- what one market pro has discovered about a cable stock. a private viewing is next in chart talk.

matt shapiro,president of mws capital, joins us for chart talk this morning. good morning matt. >>good morning angie. >>you tend to invest heavily in the stock market. you have a portfolio full of some popular names, maybe some not so popular names. and you've been doing well. what do you think about market conditions? >>it seems kind of slow doesn't it? like there's not a lot biting. but there's a lot going

on underneath with heavy deal making activity and earnings that actually are ending up in this quarter to be better than what people thought. with the shakeout of the nasdaq and some of the smaller cap companies there are a lot of stocks at 6 and 1 year lows that have earnings catalysts and some of them have really been jumping on unexpectedly good earnings. >>one of the stocks that you're watching is discovery communications. this stock has not performed well. earnings are coming out today. what are you anticipating? >>yes, it's really been a dog and one of its networks is animal planet. it has missed the last few quarters. it's a stock i own. it's a pure play cable content. i really do like it. i think the expectations are very low but if they come out with a surprise i really think the stock could get back to 80. if you look at the options market there's not a lot expected in the upside. so i have seen these surprises lately. stocks that had a bad quarter all of a sudden have a good quarter. so it's something

that i'm watching for in discovery today. >>there's nothing like a good surprise when you nail it on the right side of that trade. any headwinds investors should worry about with this company? >>well, there's so much competition in content right now. remember a couple of weeks ago we talked about amazon at 290 getting into all the set top boxes. netflix of course traded down so much. everyone is trying to get into content so i'm excited to see what discovery's going to reveal today. >>we will be watching. thank you matt. >>thanks angie. that's it for now. coming up on our next show.. tesla is making a $5 billion bet on a giga battery factory. find out wednesday how investors can jump on board. from all of us at first business...have a terrific tuesday.

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