>> tom: silver shines on! the precious metal is within sight of its record high set more than 30 years ago. >> susie: what's behind its meteoric rise, and tonight's "market monitor" tells us why he thinks silver will go much higher. you're watching "nightly business report" for thursday, april 21. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:

this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> susie: good evening, everyone. investors head for the holiday weekend in an upbeat mood. the dow jones industrial average ended today close to three-year highs and, tom, that was thanks to another round of strong earnings. >> tom: susie, precious metals were also in rally mode again today. gold closed above the $1,500 level, a new record high. and silver prices rose sharply, up $1.60 to $46 an ounce, it's highest price in a generation. >> susie: the run-up in silver has been spectacular-- prices have more than doubled in the past year. suzanne pratt takes a look at whether silver will keep its luster.

>> reporter: gold usually gets all the glitter but, lately, it's been out-shined by another precious metal. at $46 an ounce, silver is at a 30-year high, and it's nearing its record price of $50, hit when the hunt brothers cornered the market in 1980. trader mahir dange says silver's price is part of its appeal. >> silver is just outpacing gold right now because of the sheer denomination of it, trading $45 or $46, as opposed to getting involved in a $1,500 commodity, or an $1,800 commodity like platinum. >> reporter: several factors are behind silver's monstrous rally, including increased use as an industrial metal. televisions, computers, and cell phones all need silver. investor demand for silver also revs up during jittery geopolitical and economic times. the last few years have seen a cornucopia of uncertainty, from the global financial crisis to worries this week about the

outlook for u.s. debt. and don't forget, silver is also used in jewelry. and because of its more affordable price tag, it's replacing gold jewelry in many countries and cultures around the world. but here at k. charles jewelry store in new york city, owner harry shan says silver's soaring price has only hurt his business. >> it affects my margins and my volume, too. they used to buy silver earrings and a necklace; now, they just buy one item and they complain. >> reporter: the big question, of course, is can silver continue to sparkle? many experts say it's another speculative bubble that's about to burst. but precious metals strategist george geros predicts silver will soon hit $50 an ounce. >> the new buying is there because of momentum. you have higher open interest, higher volume, higher averages, and that's what attracts buyers. >> reporter: that's not to say there won't be a pullback in prices in the coming weeks.

most pros see that as a buying opportunity, while some merchants might consider it a blessing. suzanne pratt, "nightly business report," new york. >> tom: still ahead, tonight's market monitor thinks silver could hit triple digits, and he's digging for more profits in gold. it's mark leibovit with vrtrader.com. here are the stories in tonight's "n.b.r. newswheel." strong earnings from blue chip companies lifted stocks. the dow gained 52 points, the nasdaq was up almost 18, the s&p 500 added seven. big board volume was on the lighter side; nasdaq volume slid below two billion shares. for the week, the dow had a big drop monday, but ended with a 1.3% gain this week. the markets are closed tomorrow for good friday. the nasdaq added 2% this week, and the s&p 500 is 1.3% higher tonight compared to last friday. nyse euronext turned down a revised buyout bid from the nasdaq o.m.x. group and the intercontinental exchange.

the nyse said it remains committed to a planned merger with germany's deutsche boerse. nasdaq will continue talks with nyse shareholders. the number of americans filing new unemployment claims fell by less than expected last week. new claims dropped by 13,000 to 403,000. and the jury hearing the insider trading case against hedge fund manager raj rajaratnum will get the case monday. testimony and arguments wrapped up today. rajaratnum faces 14 counts of securities fraud and conspiracy. his lawyers say their client is innocent. after falling earlier this week, oil prices are back close to their recent high. light, sweet crude for june delivery settled at $112.29 per barrel. as prices move higher, the justice department today announced a new team looking for fraud in the energy markets. the group will zero in on oil and gas prices for signs of manipulation. >> susie: surging jet fuel prices slammed earnings at southwest airlines.

the low-cost carrier said today its first quarter profits plunged 55%. still, southwest eked out a profit-- three cents a share, in line with estimates. a short while ago, i talked with southwest's c.e.o. gary kelly, and he said high oil prices will continue to affect the airline through the end of the year. >> we're expecting fuel prices to be up 40 to 50% compared to a year ago levels whereas in the first quarter, they were up 26.5%. so where they go from here is anybody's guess. it feels to me like prices are way too high based on current fundamentals of supply and demand. >> susie: now mr. kelly, southwest raised its ticket prices yesterday and you've been resisting doing that for quite a while. why now? is it because of these higher jet fuel prices? is that why you raised ticket prices? >> absolutely.

were it not for that, we would be resisting fare increases mightily. we want to be the low fare brand. we want to be the low fare leader. we are the low fare leader in america. >> susie: what about your other consumer-friendly programs? how much longer can you can continue your bags fly free, no fees on checked luggage. is that the next thing to go so that you can kboos revenue and save on costs? >> no, we're not going to do that. first of all we don't think it's the right thing to do for our customers. i think that it is a gocha. it's a bait-and-switch technique. and that's just not what we stand for at southwest airlines. >> susie: now we're hearing from more and more economists that they are calling for slower grose growth for later this year. from your perspective, what is the pace of booking from consumers and business travelers? >> right now our business is very strong.

in the first quarter we set any number of revenue related records, monthly records, quarterly records, all-time records in the month of march as an example. so our business is strong and within that, there particular we see a strengthening of business travel. >> susie: let's talk a little bit about that recent episode of a hole in the fuselage of a southwest plane. do you find that any safety concerns are holding people back from flying on your airline? >> i don't. safety of course is our top priority. it's really our duty, if you will, to our people and our customers. and there's no airline with a better safety record than southwest airlines. >> susie: let me ask you this. are you considering to upgrade and update your fleet of airplanes? is it the right time now? >> well, we are, we are in a phase of our fleet where we

are continually retiring our older aircraft. and we are replacing them with brand-new aircraft. so that process is already under way. >> susie: all right. we have to unfortunately leave it there. thank you so much, mr. kelly for talking with us. we really appreciate it. >> well, thank you for having us, as always. >> susie: b.p. will pay a billion dollars to help restore areas damaged by last year's

massive oil spill. the justice department said today the money will be used to replenish beaches, restore barrier islands, and conserve ocean habitats. distribution of the money will be overseen by trustees from the affected gulf coast states, along with federal officials. the justice department says b.p. still faces additional liability from the disaster. >> tom: in the year since the "deepwater horizon" oil platform exploded, the search for oil has restarted, but the gulf economy has sputtered. tonight, we continue our series "revitalizing the gulf" with peter ricchiuti, professor of finance at tulane university freeman school of business. he began by describing the gulf economy this way. >> improving those beach as long the gulf coast they were down about 40% tourism wide but this spring break, the numbers start to really improve so people are more optimistic. seafood has been accepted again in general. the real thing is that the deep water operations are still very, very sluggish. we had 34 deep water rigs operating at the time of the explosion, is now 7.

we do think it will ramp up to about 15 or 20 by the end of the year. >> i want to ask you about production from the gulf. but the impact in louisiana has been pretty significant. in terms of the unemployment rate, while the nation is beginning to add jobs, louisiana unemployment rate since the deepwater horizon has gone the opposite direction, it's climbing. >> it sure has. people say there are a few rigses that aren't operating that weren't before. these aren't rigs that way we think of them. thee are floating cities, economically the size of a gm plant so it had a huge impact. >> tom: to that point where the government originally put a moratorium on deepwater drilling, that expired or was thrown out in october. we now have about half of the deep water permit that had been applied for h been kicked back to companies. what's been the impact on the outlook for energy hiring in the dpufl. >> that's the real frustrating part. they were waiting for this moratorium to end and they thought it would turn on a dime but it's been a slow process. some of the companies that would benefit from coming back in the deep water like

the offshore supply, you talk to these folks and they're very frustrated how slowly the government is readjusting. and frankly it's not just deep water. shallow water has been very delayed. >> paul: . >> tom: you do along with your students help manage a mutual fund that invest in company chas operate if the gulf statement one of those that you like going forward is sea corporate holdings, water transport, helicopters. what make you like this one. >> it is not followed by anybody on wall street. i think we are the only ones that ride on them. headquartered right around here in fort lauderdale. but very well managed fleets. a lot of great assets and i just don't think it's being recognized. a lot cheaper than its peers. >> tom: evolution petroleum is focus on underdeveloped onshore, do you prefer onshore than offshore now. >> i think they both have their pluses. the thing about evolution is they are taking old oil fields that were thought to be depleted, shooting co -- in there and rejuvenating them. they have a field drilled in the 40s in louisiana that they are getting significant

production of. >> tom: if oil prices drop below $100 a barrel is that of the proable. >> that particular one is very profitable. >> tom: you like something completely outside of energy here. sharps compliance, a medical waste magazine company. kind of a unique play on health care. >> it sure is, this is a medical waste disposal company in a unusual niche. instead of picking up the waste at hospitals, they basically have it sent back to them through the mail and they have the incinerator and such. that business is, the demand for disposal of health care, as people get older is going to grow more highly regulated. >> absolutely. >> tom: any disclosures in your positions yourself. >> i don't own any of these stocks. i do have my son's college money in the mutual fund so that part is in there. >> tom: eat some of your own cook. our guest peter ricchiuti with tulane university. metal prices continue rallying, and the dow is at its highest price since the summer of 2008. let's take a look at our "market focus."

the broad market was led by material stocks as the commodity rally continues. but insurance giant travelers topped the dow industrials, jumping 3.7%, breaking out over $60 a share. with this rally today, travelers shares are at a new 52-week high. in fact, this price is a new all-time high. first-quarter earnings beat estimates by 38 cents per share. it was optimistic about its outlook and increased its dividend. general electric also lifted its dividend after turning in these results. profits jumped from a year ago and were well above forecast. g.e. says the restructuring of its finance unit is ahead of schedule, and the backlog for some industrial equipment is higher from last quarter. this didn't help the share performance today, though. g.e. was among those dragging on the dow, slipping more than 2%. telecom giant verizon was also a

drag, off more than 2%, falling to a one-month low. quarterly earnings were a penny ahead of estimates. still, analysts talk centered around profit-taking, thanks to the rally in anticipation of verizon selling the iphone, which began in february. but it was pfizer that was the big loser among dow stocks. the 3% drop came on almost a three-fold increase in volume. this is the past 90 sessions. one area to watch may be $19, where it bounced off of last month. pfizer reported four patients in a drug trial had died. the medicine being tested is for rheumatoid arthritis. it is not clear if the deaths were related to the drug, though. a trio of restaurant stocks were moving. chipotle mexican grill fell almost 4%. earnings were strong and it will join the s&p 500 soon. the firm also confirmed the government has begun a criminal investigation, looking to see if the company hired illegal immigrants. cheesecake factory fell almost 4%.

its outlook was disappointing with rising food costs. and yum brands jumped 4%, thanks to the strength of its kentucky fried chicken in china. a handful of new stocks hit the tape this week. airplane leasing firm air lease started at $26.50 per share, tesoro logistics was offered at $21 per share, and chinese internet data center 21vianet shot up from its i.p.o. price of $15. and that's tonight's "market focus."

>> susie: april is financial literacy month, and it's never too early to learn good financial habits. in tonight's "kids and cash," teaching your children how to handle money responsibly. here's neale godfrey, founder of the children's financial network. >> are you sick of hearing, "i want, i want" from your kids? if you're like most parents, you are. how do you teach your kids that money doesn't grow on trees? start with the natural consequences of money, which means that the only way you get money is to earn it. there is no entitlement program in life. mom and dad earn money-- that's the way it works. you are going to start your kids on a work-for-pay system. they will start doing work-- jobs-- to earn their allowance-- pay. when do you start this system? when the kids say, i "want, i want," which is around two- years-old? but i give them a year off for good behavior and start at age three. they are beginning lots of life

lessons. if you haven't started yet, its never too late, just a bit tougher with a teen. make an allowance chart and list the chores for each child. they are doing four to five chores for only about 15 minutes. the older kids will complain that they are too busy-- it's funny how they'll find time for computer games and texting their friends. stick to the rules in life-- no work, no pay. they have to do all their work to get paid. what to pay? if you can afford it, i pay their age per week, so a three- year-old gets $3 a week and a ten-year-old gets $10 a week. you'll see that the "i want, i want" conversation shifts to kids figuring out how long they have to work to get what they want. >> tom: tomorrow, the markets are closed for good friday. but we will have an n.b.r. special edition. >> i'm n.b.r.'s rick horrow. in pro basketball, the glass ceiling for women is being shattered again by the amazing nancy lieberman. join me on n.b.r.'s "women in leadership" special to learn

more about nancy and her tremendous career. >> susie: the battle of the bratz is over, and the winner is not mattel. a federal jury says mga entertainment owns the rights to the popular line of dolls. the verdict came after a three- month trial over copyright infringement, and a dispute that's lasted a decade over who owns the drawings on which the dolls were based. at their height, the bratz raked in more than a billion dollars in revenue for mga. mattel had claimed it lost $300 million in profits. >> tom: amazon.com's cloud computing systems went dark overnight, and continue to have problems throughout today. the trouble happened with amazon's computer servers that host web sites for other companies. social network foursquare was among those taken down during the outage. the amazon service allows companies to store data and run software without having to own the technology themselves.

>> tom: stocks and metal prices continue climbing, despite nervous investors, and that's a good sign according to tonight's market monitor. mark leibovit is chief market strategist at vrtrader.com, and author of "the trader's book of volume." he joins us from troy, michigan.

mark, welcome back, great to see you again. >> always a pleasure to be here, tom, thank you. >> tom: why do you think that some nervous investors is going to help push prices high per from here? >> well, it's called the wall of worry. look, this past monday where the s&p comes out threatening to downgrade u.s. debt that was down 200. then here we go yesterday, a new closing, i believe today as well a new closing, market high. just the function of bad news and the market choosing to ignore it but generally when are you in an uptrend and get these shakeses along the way it just confirms the trend. and plus we have higher projections. plus we have ben bernanke who is accomodative to the stock market who actually has said he is targeting a higher stock market. if you step back and look at any chart, weekly, monthly, daily t is clearly an uptrend. the trend is your friend. >> tom: so with that in mind, volume though, some have been calling volume lighter than normal. you follow volume. what do you make of it? >> volume is just fine.

basically it's relative volume. are you comparing one day to the next. overall volume has still been relatively heavy. i don't see anything in volume that has changed, a least the analysis that we do, more proprietary volume reversal and all the indicators that we follow in the book of volume confirm the trend. >> let's look at your model for the dow jones industrial average through the middle of this year. this model here is anticipating a pretty nice raleigh from here through the end of june. what makes you bullish? >> well, you know, the model is called a sharp sell-off. remember this is pub lushed in january, called for a short sell-off, basically it is trends up here into early summer. there is the expression sell may go away n canada they say buy when it snows, sell when it goes. basically this is where we are at and maybe we will run into a swoon in the summer but beyond that i still see a higher market but we are giving a short-term picture. >> tom: how about for gold, we mentioned 1500, pierced that level today finally at the close. look for a slight climb

through the summer before a bit of weak in accordance june is that weakness going to stick around? >> no, this is another cyclical swoon, so to speak, a pullback. let's see what kind of volume patterns come in and how high we are by june. if gold is 2,000 in the next two months we are probably due for one heck of a correction. >> are you going to call 2,000, is your call 2,000 by the end of june? >> no, i would say we have a chance you could see 1650 the way it's moving now. that's a possibility. but we have a record interviews here. they were look for 3,000 plus. i have revised it up to about 3600 now. so that is a multiyear comment. we'll see where we are at. >> tom: it is not just gold. you also like silver. here we will look at the eff. $45 an ounce. and you think this could hit triple digits? >> i think we're looking at 100 in silver in the next couple to five years. and we've been looking, listen, look at it now. it is basically just catching up to where it was in 1980 which was $50 an

ounce. of course sob trade at a discount to the spot metal so could see it very well near triple digits by the time this silver moves over and gold by then, i think would be 3600. last fall is when you were here in september 24th. we'll take a look at all four of your picks which have done very, very well. the gold, trust etf up 16%. the central fund of canada which is gold and silver up 50%. you like palladium and another met ale-- metal up 61%. the total stock market index up 16%. you still like these four. >> absolutely. stick with them. trending the stock market is up, bt circumstances total stock market index like holding every stock on the stock market. palladium is an industrial play just like platinum. the silver and gold on record there we might as well just hold what is working as the trend is up in all four. >> any ownership positions with these four, mark? >> i own and trade every one of these. i lover the metals. >> tom: mark leibovit, the trend has been his friend, no doubt, he is with br

trader.com. >> susie: and finally tonight, good news for all you java junkies. to mark tomorrow's earth day observance, starbucks stores in the u.s. and canada are giving away free coffee. if you bring in a reusable mug or tumbler, starbucks will fill it with brewed coffee or tea. the idea is to minimize the use of disposable coffee cups and emphasize the use of recyclables. tom, starbucks did this same promotion last year on earth day, and more than a million people took advantage of the offer. >> tom: i am going to cash out the they are moss tonight to get it ready for tomorrow morning-- the thermos tonight. >> and stand in line with another million people. that's "nightly business report" for thursday, april 21. i'm susie gharib. good night, everyone, and good night to you, too, tom. >> tom: good night, susie. i'm tom hudson. good night, everyone. we hope to see all of you again tomorrow night. "nightly business report" is made possible by:

this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> be more. pbs.