u.s. what's bringing them back from abroad? plus, is it too late for the fed to step in and help the economy? we'll examine what it might do. why your punctuation at work could be raising the eyebrows of your co-workers. and, are traders stretching their profits with lululemon's latest earnings? find out. first business starts now. you're watching first business: financial news, analysis, and today's investment ideas. a good monday morning to you. i'm bill moller, angela miles is off. here's the 1st look. the fortunes of facebook, that social media belwether, keep

falling. barclay's bank has cut its price target to sell the stock from 31 to 23 dollars. the bank doesn't see facebook's mobile business taking off. its stock is still selling for under 20 dollars. last week the european central bank buoyed financial markets, announcing it would be on a bond-buying binge that again brought europe back from the brink. this week financially, shaky spain will be seeking details on the conditions for that purchase. for the first time since may, spain's 10-year debt yields fell below 6%. also this week, germany's constitutional court will decide if the eurozone bailout fund is legal. the question is over constitutional restrictions on government-to-government investment. the german finance minister said he's confident the court will find a way to deem the $630-billion rescue fund legal. let's kick it off with trader caught now, and our trigger this morning is todd colvin. he's the sr. vice president of interest rate products at r.j. o'brien. this monday morning a

lot of people are considering the fallout from the beginning of the fomc meeting on wednesday. and one of the things they're considering - interest rates. what's your read there? > > i think what the fed is going to have to do based on last friday's jobs number is they're going to probably have to add some other kind of stimulus to the party here that we've seen over the last three years. whether that comes in the form of bond buying of treasurys or mortgages, you're certainly going to see probably the 7- to 10-year sector of the treasury curve see lower yields than based on where we may see longer-dated treasurys. i think right now you're going to see a tight range going into thursday's announcement, and i really don't see treasuries moving much until we get a plan. but i do see interest rates in the 7- to 10-year sector going lower over the coming months. > > let's talk about metals. how about that precious metal of gold? that sure is soaring right now. > > that had a big day on friday as well, but look, it's really a flight-to-quality trade there. it isn't a currency, it is an asset, but people treat it like a currency. central banks

are loading up their balance sheets with bad debt or even any kind of debt. there's a lot of risk out there. gold offers some kind of safety from that, at least a perceived safety. but it had a big day on friday, and i expect that when the fed comes in and adds more stimulus, you could see gold rally even further. > > wouldn't you say arguing against stimulous, though, would be the status of equities, which are also soaring high? > > well, the equities across the globe have been really fuelled by central bank talk. look at what mario draghi did a month ago, he started this all off by saying, "the european central bank will do whatever is necessary," and then they followed it up last week with talk of bond buying. european equities are strong. u.s. equities are strong. the nasdaq is up over 20%, and the fed is talking about somehow easing policy more. so, i think right now, equities are very susceptible to headlines, but they love what they're hearing from the central banks, and until they hear otherwise, i see equities going higher. > > all right todd colvin. you have a great week. > > thank you very much. in our cover story, first there was offshoring, shipping jobs overseas, then nearshoring, shipping them to canada or

mexico. now, there is reshoring, bringing those jobs back to the u.s. it's a trend and will likely get a lot of attention when manufacturers gather this week in chicago. in the last two-and-a-half years, 50,000 manufacturing jobs have come back to the u.s. from overseas - many of those jobs from china. "the reason that so many jobs are coming back is because chinese wages have gone up 20% each year, so it's been doubling every three-and-a-half years." and other companies are choosing not to leave in the first place. an industrial fastener company nearly took a hundred jobs to brazil. "when we assisted them, plante moran did the cost analysis and it was a push." the company, not identified by plante moran, stayed. these are success stories as america's largest manufacturing trade show opens this week in chicago. the economy has a few other surprises. careerbuilder's job

postings are up 34% from a year ago, including companies looking for software engineers, up 74%. "we do see more people willing to change jobs, whereas before, they were just holding on. also, employers say their offers to candidates are increasingly being turned down." "i think it means people can negotiate and choose jobs with some discernment." on the flip side of this, employers tell careerbuilder the so-called skills gap, the ongoing search for employees with the latest skills, is preventing them from filling lower-skilled jobs connected to them. with the election just months away, the unemployment number is becoming increasingly in- focus on the campaign trail. last week's jobs data has been

all the candidates have been talking about. while the jobs report did not match early predictions, on friday, president obama noted that there was silver lining to the data. "businesses once again added jobs for the 30th month in a row, a total of more than 4.6 million jobs. but that's not good enough. we know that's not good enough. we have to create more jobs faster." meanwhile, mitt romney noted that the jobs report shows that the president's policies have not worked, but his plan will. "my plan is designed to meet the new demands of the new economy and the new economic realities that exist today." two more sets of unemployment numbers will be released before the november election. moving from the u.s. to europe, earlier we mentioned europe's bond buyback program. however, not everyone is sold on the ecb's plan. politicians across the world warned that the cost of borrowing to buy the bonds could reach crisis levels unless europe uses its rescue

fund. some reports say the buyback violates financing state deficits and eases pressure on governments to reform their budgets. many predict that will bring on inflation. meanwhile the spanish government is not even interested in an aid package. it wants to see the details of a possible outcome of the buyback first. and with germany doing the heavy lifting in the eurozone financial crisis, the question arises, how much pressure can the german economy take? we put that question to jack ewing, reporter with the international herald tribune. "that's a big question mark because germany has been very strong. still growing, but growth has slowed along and there was just a new report out predicting that the german economy is going to start to shrink, so people are worried. but, it might explain why germany is suddenly so willing

to help out its eurozone partners." numbers that came out friday from the ministry of economics show german manufacturing is holding up during the eurozone debt crisis. exports and output were both up. meanwhile, over in greece, meetings continue today regarding the status of the next round of greece's bailout money. european officials met in athens over the weekend to review the country's progress in cutting government spending and so far say greece will remain a member of the eurozone. but, the country must step up its financial reforms to enable greece to receive a $31 billion euro bailout. a review of greece's progress will be given to eurozone finance ministers on october 8th. unleash the cement mixers! china will be building more than 1200 miles of roads. there will also be subway expansions in 18 cities, new rail lines, and several major port improvements among other giant civil engineering projects. like the rest of the world, china has seen growth contract and it's doing this infrastructure investment to stimulate growth. it sure attracted investors. the

day after the announcement of the 20% increase in spending, the shanghai composite index closed nearly 4% higher. china's largest cement maker was up by the maximum 10% limit. apple wants to take a bite out of the digital radio market. the wall street journal reports that apple is in talks with major record labels to create a streaming music service that would rival pandora and spotify. some analysts are dubbing it the "pandora-killer." it wants to license music for a custom-radio service that would operate on its iphones, ipads and macs to amp up its presence in online music. apple's service would be an app on its products. there's a cornucopia of choices this holiday season for buyers of e-tablets and e-readers. there's the barnes & noble nook with glowlight, kobo has a reader with a light, and bigger, brighter, cheaper kindles are coming as amazon is trying to undercut some of the buzz of apple's pending new product announcements. and, best buy has started taking pre- orders for new kindle fire tablets. there are several models ranging from $159 to $599. some should start

appearing by the end of the month. though their tablets are priced higher, apple still dominates. more retailers are ditching layaway fees. sears and kmart are both dropping fees for layaway programs year-round. other retailers have already made similar moves to attract customers. wal-mart has lowered its fee for the holiday shopping season. toys r us nixed extra costs if shoppers pay off bills by a certain date. how old's that car of yours? they're better made, more durable and we are keeping 'em longer. experian says if you're like most people, you're keeping your car for about 11 years. that's twice as long as we kept 'em in 1970. it's not only because of impoved engineering, the recession has something to do with it. even as new and used car sales have picked up, many americans are holding on to their rides. if you're among 'em, changing the oil and checking the timing belt

can help you avoid the big expensive repair jobs that cause many to decide to unload their car. stop! stop putting so many exclamation points in your emails! okay? we'll take about why. first, the jobs report may take back whatever bump the president got from the democratic convention. we'll look at the numbers after this. r my breath. and his last.

not everyone who gets meningitis...dies. the infection spread so fast. (overlapping voices) preteens and teens should get vaccinated against meningococcal meningitis, a rare but serious disease. health officials aren't the only voices recommending it. hear ours at voicesofmeningitis.org. you know there was a time when people like me couldn't live here. i'll never forget being told i wasn't welcome in this neighborhood. well i own this building now, the fair housing act made a difference for someone like me. so i can choose where i want to live, free from discrimination. glad you could make it, right this way...

the real signal that this hobbled economy of ours is finally healing itself will one day come in the job numbers. not yet the case, unfortunately. the august numbers, as you well know, came out on friday, and 96,000 new jobs really does not a robust recovery make. let's talk with brent schutte, he's vice president and market strategist at harris private bank. brent, you looked at the numbers. what do they tell you? unfortunately they're not a surprise. when we talked last month, we mentioned that europe and the fiscal cliff in the u.s. would likely keep employers on the sideline with new hirings, and i think these numbers reflect that. if you look down underneath, manufacturing actually had a contraction this month. i think that's directly related to what's happening in europe. > > so, stimulus. everybody is wondering if ben bernanke, the federal bank chairman, is going to do what he said at jackson hole not many days ago, and that is go ahead with another q.e. round. what's your thinking on that? > > i think that the data is very mixed. i think there are three reasons in the past that

have caused the federal reserve to employ stimulus. one, market expectations, or what the market is doing at the time. right now the s&p is up 16%. the housing market is doing better. interest rates are at all-time lows. it's very hard to argue that stimulus will help in that matter or is needed. the second would be deflation expectations. right now, they don't exist. the third is what we are talking about today: employment and jobs. i think the big question within the fed is whether the unemployment that exists is structural in nature - meaning a construction worker can't be turned into a nurse overnight - or is a temporary - meaning that it's something that can be healed with monetary policy. the data is mixed. there is a huge division within the fed. as you mentioned, mr. bernanke spoke about it quite a bit at jackson hole and made the argument- > > he says he does not believe

it is structural. > > absolutely. he made the argument that he is likely to act, and that he doesn't believe the future cost of potential inflation is large enough to justify not doing something, because he fears more having people unemployed. > > yes, but brent, if they go for another round of stimulus, that is it. they have nothing else to throw at this darn thing. > > right, and that's my worry, and that's why i think he does some more incremental and doesn't announce a huge quantitative easing like the market is hoping. i think it's something more incremental and more of a tweak, or even something where he leaves it open-ended so the market doesn't know when it may possibly end. so there would be no completion date or no number announced. > > it's interesting because you have smart people on both sides arguing for easing and the other smart guys saying not. and he's caught in the middle, because even the fed itself, as you say, is somewhat divided. we'll find out soon enough, later this week. brent schutte with harris private bank. thanks so much. > > thanks. still ahead, after some sweet returns, are some souring on lulu lemon athletica? next though, something that's really important! multiple exclamation points! do they really have a place in business emails? huh?!

when we are communicating face to face, person to person, eye to eye, we can use all the expressive qualities of the voice, the face, body language even, to convey meaning and to speak and communicate with precision. but when we're typing, say, and e-mail, what is it? it's just words on a screen. lately, what have people been trying to do to convey feeling and emotion? they've been using exclaimation points to try to say "this is a very important thing i'm saying." rex huppke, he's a columnist with the chicago tribune, he writes a weekly column there, and you kind of got tired of this whole thing, and you said, "enough!"

this is an exclaimation point. > > exactly. i did get that meaning across somehow. > > you kind of road on your high horse and were harrumphing about this, and then what did you find? > > i found that i do it too. i got an e-mail from someone, and it was just littered with exclamation points. it was crazy. and i thought, "that's kind of unprofessional." but then a couple days later i started writing an e-mail and i was doing at as much, and so i started making calls to some people to figure out, ok, is this actually acceptable these days, or is this tacky? is it not good business practice? > > you made the point, business practice. you're seeing this in business communication. professionals are communicating this way. and it seems at first blush to be kind of a clunky way to make a point. > > it does. it seems like text messaging or that sort of thing you'd see maybe a teenager communicating in or something like that. as i started talking to more people who study language and our use of language, a lot of them said

we're doing this because so much of our communication now has switched to e-mail, text, twitter, facebook, that sort of thing, that it's very difficult for us to make our words sound the way we want them to, and so we use exclaimation points sometimes to make clear, "i'm being sarcastic here," or i am actually excited about something, so you get that message across that way. > > it's in our haste too. we're not really reflecting, we're just using that as sort of a shortcut to emphasize something. > > right. opinions differed a little bit. definitely the main thing they said is, "ok, we're using this. it's ok to use it. it isn't really expressly unprofessional. but watch how much you're using it." really take a second look at your e- mail before you send it to say, "ok, do i really need three exclamation points after that?" you probably don't.

> > you talk to the author of "eats, shoots, & leaves." now that was a book all about the precision of language. and she did kind of say it can be used as a crutch. as you're saying, it's getting overused. > > absolutely. her point, which i thought made a lot of sense- of course we don't always have to do this- she said, if you find yourself having to use an exclaimation point or having to use more than one in an e-mail, maybe take another look and see if you're not wording your sentences poorly, and you could perhaps word your sentence and make it clearer without having to use that crutch. > > so slow down in the very speeded up times, which is hard to do for a lot of people. but to me, the real important point is, it's always better to talk like you and i are talking, face to face, because that is how biological organisms are designed to interact. > > that's right, and that's what we've lost so much of. we're all in such a hurry, you don't take the time to get up and walk three cubicles over to tell somebody something, you just send them an instant messeng or something like that. i think that's a good point. the more we can actually communicate face to face, the clearer we will be with each other. > > rex huppke, with the chicago tribune. thanks so much. > > thank you. have a good one. just ahead, are traders losing that zen feeling about a company that sells high priced yoga apparal? that's next in chart talk.

alright, chart talk, where we single out a single company. let's talk with andrew keene. he's the man who runs keeneonthemarket.com. the company is lulu lemon athletica, canada's high-priced yoga clothier for people who like to sweat a lot. friday, it reported a higher quarterly profit, it was boosting its outlook. but man, it's trading at 56 times earnings, are you souring on lulu, andrew? > > the fact of the matter is i

actually did get short it on friday, and i got short at levels much lower than where it's trading now. it closed on the high of the day, $77.25 on friday. it was very interesting to see. it actually opened up down on the day after the earnings were already out. so it opened up, went down to $67.10, it was off to the races. put $10 on top of that. very, very rarely do i see stocks that have earnings, the earnings are reported, and then rip $10 or 12% in either direction. huge, huge volume on friday, 14 million shares verses the average, 3 million shares. short interest is 14%, so i think some of these shorts might have gotten squeezed out of there. i am short it. may high is $81. above $81 i'm out of it. it was a little painful. i did get a lot of sweat. maybe i should have worn my yoga pants, but, i think it could retest down to $67. > > anybody looking at fundamentals, how do they make heads or tails of something like this, with a p-e ratio of, what was it, 56? > > 56. the one i can compare it to is under armour. under armour's p-e is around 50. very similar business, similar business model. high-end,

retail, they're doing a similar format of workout clothes. but under armour, 52-week high as well. so it's really hard to fight the trend. we see these in priceline and cmg, which are all these high-growth, high- beta stocks, and those get slammed, and they continue to get slammed. now lululemon looked like it was going under $55, which is the recent lows, and on friday, it was unbelievable. the volume, the pressure, all day. it didn't have a pullback all day. it was straight up all day. today i'm expecting a little bit more follow-through, but how it performs at this $80 level should be interesting. > > what was the volume on friday? something like 14 million? > > 14 million shares. > > good grief. all right, andrew keene- > > a lot of yoga pants. > > all right. bye-bye. you're now all set for the day. tomorrow, we'll hear why investing in emerging markets is becoming more attractive. from all of us at first business, have a great monday.

an overnight robbery in oakland ends with one man being shot. what we are learning this morning about the search for the shooter. the ghost guard makes a dramatic rescue off the california coast. we will tell you about two people lucky to be alive this morning. marking the anniversary of the deadly san bruno pipeline explosion. the rebuilding of the neighborhood two years after the disaster. it's all ahead on the ktvu channel 2 morning news.

good morning. thank you for joining us on this monday morning, september 10th i'm pam cook. sounds like we are going to be in for a pretty nice weather week. let's check in with steve paul son. hi steve. >> pretty nice. overall it looks like a quiet pattern here. usually september you get a big warmup, get your first rain. there is no sign of really much of that. just a quiet pattern. temperatures inland will come up a little bit. low to mid 80s. 60s and 70s here is sal. good morning. traffic is doing pretty well around the bay area. traffic is doing well on the san mateo bridge. as you head out to the high- rise. no major problems. clear weather too which will be good for flights coming in and out of sfo. also the morning commute on open freeways. a little bit of road work. not approaching a big delay. you will see lane