i . slow grind, why the stock market's gradual move higher could be a good thing for investors. shareholders meet and protesters rally in an effort to keep the pressure on the executives at general motors. and why some florida condo owners could be forced to sell their homes and lose everything in the process. we have all that tonight and more on "nightly business report" for tuesday, june 10th. good evening, everyone, tyler is off tonight. call it the tortoise rally, the dow crawled to a new high, its fourth record in as manyñi days and it is reaching the mi milestones at a painstaking slow pace, today rising at a mere 2.5 points, the s&p 500 took a

breather and slipped by a fraction. the blue chip dow is just points away from a new milestone of 17,000. and s&p 2,000 is also pretty close. the nasdaq adding nearly two points, but these puny gains and losses are a far cry from the summer tradition of dramatic reca rallies. our guest tonight says the slow growth grind in stocks is also a good thing. so jim, tell us why that slow and steady like a tortoise is actually a good thing for the market. >> well, i think, susie, that it does not -- as long as it goes up slowly, it doesn't bring out the worst investment behaviors. i think if it starts to run people panic. they start to chase it and start to make decisions too quickly and too aggressively to not miss out. and i think in a slower moving market it lends itself to

greater rationality which makes the market more self-sustaining. so far that is kind of what we've got and i think it probably has further to go. we're probably going to see a little the irrational movements before this thing really does correct. >> but what is holding back investors? what is worrying them? we know that the federal reserve will keep pumping money into the market and keeping interest rates low. why are they holding back? >> well, i think there is a great legacy of the 2008 crisis, susan, that just hangs on the investment mindsets, i think that has really been longlasting, longer than past recessions where there is still a great memory of boy how bad that was going through that. and people are still hesitating even though this market continues to go up. and actually that might be a good thing. like i say that keeps people on their best behavior and that is the type of thing that keeps this going. i think in addition to that

people worry about, what was it with bond yields falling recently? what does that suggest? is there panic in the european union that they have to come out aggressively even more. does that mean that europe is in trouble again? is china bottoming out? there are still issues to worry about, but for most investors if most are still worried that is a good sign. >> you know as we make these small advances towards new milestones, what stocks are going to lead the way? i mean, so far we have seen some not so exciting sectors like utilities being the big performers. are we going to see more of that? or who is going to lead the way? >> well, i've been thinking we can get up around this 2,000 area since year end, but i also think we'll have a difficult second half. bond rates are going to climb in the second half of the year, above 3.5%, one thing i do, i don't want to go to bonds heavily. but within the stock market i

think i would be diverse because a couple of more sickically call economic defensive sectors, and economic sectors, at the front end we're on a capital spending cycle which will benefit that. i like materials because i believe as the year continues to progress we'll see more inflation evidence. and that is an inflation hedge. on the defensive side if stocks start to stumble a bit, i do like the utility stocks and the consumer staples for the stead eddy character that those possess. right now it may not be super attractive but if the market starts to get more volatile they will be attractive. >> a number of market pros say for a long time, stay away from treasuries, where do you stand on that? >> i would be under way, i think the big damage coming here over the rest of this year in the next couple of years is going to be in bonds. i really think the ten-year treasury may reach 3.5% or more

before the year is out. so i would definitely stay under weight. >> thank you, jim paulsson from wells capital management. and a big change at aig this afternoon, robert benmosche is out. peter hancock takes on both jobs, right now he is an executive vice president. benmosche is expected to resign in september but will stay on in an advisory role. benmosche is credited with steering the company through the financial crisis and paying back almost all the $2.8 billion received from the u.s. treasury. and in detroit today, two very different agendas for the gm meeting. shareholders were asked to vote about improving new directors and incentive plans for top executives. but outside, protesters were demanding gm executives be held

accountable for defective ignition switches linked to at least 13 deaths and the recalls of millionings of cars, phil lebeau has more. >> reporter: less than a week after ceo mary barra announced the recall of the vehicles from the faulty ignition switches, general motors held its annual shareholder meeting here in detroit. it was a relatively uneventful meeting. there was no update on the recall investigation. and gm ceo mary barra says they're still in the process of figuring out the compensation program. being developed by attorney ken fineberg. she has had the chance to talk with employees at gm to change the corporate culture at gm, she is optimistic they're on the way to doing that. >> our message is clear, as i said two clear things we need to do as we come out of this, do everything to help everybody

harmed and i'm doing everything in a leadership role to make sure we create the right organization, support the process so that this never, ever happens again. >> while the annual meeting was going on a small group of people were protesting in front of gm headquarters, much as they were monday afternoon. that group included the parents of two women who were killed in recall gm models. one of those parents told me he believes gm ceo mary barra is sincere when she says she wants to change the company. >> i got a chance to meet mary personally when she was doing her meeting with the congressional hearings out in washington. it appears that she is trying to make things happen, which is good. it is good for all purposes, whether it is you know, to make sure that the cars are safer on the road. but we have to make sure that things like this don't happen to someone else. >> the annual meeting had little impact on the shares of general motors which by the way are down about 10% this year. at the gm annual meeting in detroit, michigan.

phil lebeau, "nightly business report." and two encouraging reports about the job market, first, small business owners are feeling optimistic. the latest survey by the national association of independent business shows that as of last month, more owners are hiring new employees and paying them more wages, more seeing business improving and paying costs. and the labor department reports that the number of advertised job openings soared to a 4.5 million in april, the most in about four years, 4.7 americans were hired that same month, still below the 5 level before the recession. and new on the satellite networks, the group is known as putter panda, experts believe they have been stealing corporate trade secrets since

2007. eamon javers has more. >> well, susie, this comes from the private firm crowd strike. they are looking at the people's liberation army called unit 61486 is the designation in the chinese military which operates out of shanghai. and what crowd strike says is this unit is designed entirely to go out and steal, and otherwise trick executives at high-powered u.s. space and defense consulting firms and those in europe to give away their secrets. and in that way to increase china's economic edge over the united states. and what the idea is here, the crowd strike is going through and giving us new detail about how this unit operates including tracing down some of the individual members of the chinese military they say are part of the unit and actually

pulling some of the social media posts down. you have actual pictures of chinese soldiers at their own birthdays and things. and crowd strike says these are the guys responsible for this particular strike. >> you know we have been talking about cyber issues out of china for quite a while and a lot of hacking. how does the u.s. handle these issues? what do they want to happen next? >> well, it seems that the u.s. is looking at a brushback pitch, they're saying we know who you are and what you were doing at your birthday party so knock it off. the question is will that be effective or not. >> and what do the chinese say about this? >> well, for years they denied any participation in it or responsibility. they say if anything, it is the u.s. guilty of cyber issues here, and in response from the united states department of justice the chinese said those allegations of the chinese hacking by the military were totally made up. they denied this top to bottom. >> same old story on that one,

thank you so much, eamon javers, reporting from washington. and still ahead on the program. jetblue, the airline that was built on the idea that all passengers are treated equally is launching a premium service capping. will the change pay off? some positive news today for home run home runs at risk of losing their homes. realtor track reports that foreclosures fell again in may, dropping to the lowest level in eight years, foreclosure -- notices, schedule bank auctions

were down 26% from a year ago. but it is different for condo owners in florida, a judge will hear what could be a landmark case in the sunshine state. investors of one condo unit say they can force condo owners to sell their homes at a lost. but the owners say their homes are literally being taken from them. diana olick has more. >> reporter: these homeowners are current on their mortgages and condo fees but could still lose their home. >> i never thought anybody could take it from me. >> reporter: she bought her condo at just the wrong moment when florida home prices were about to come crashing down. she put 26,000 down on a unit, now claims investors are forcing her to sell for just $50,000 as they convert this condo complex into rental apartments. >> the termination process that is going on here is just for the financial gain. >> reporter: that is why jackie

and the remaining owners are suing, most of them bought at the height of the boom just before the tampa homeowners lost half of their value. many of the owners are under water on their mortgages. >> yeah, i made a terrible financial decision to buy in at the time that i did. but i did it. i'm a big girl and dealt with that. i continued to pay my bills. >> the facts alleged are sufficient to state the claims. >> reporter: at issue is a new florida law that says that 80% of owners could agree to sell the condo and the others could be forced to sell, if a percentage opposes, they can block the sell. but the owners of the unit say the bi-laws of the condo override that. the investors declined to comment, but said the steps we have are taking will provide valuable property, provide rentals, and improve the neighborhood while adding to the county's tax space. >> to them, they don't care, to them it is business, to us it is

like -- it is everything. >> reporter: the owners here at madison oaks are not alone. there are cases like this all over the state as the investors seek to profit from strong rental demand. for "nightly business report," i'm diana olick in tampa. for more on what these condo owners are up against, go to nbr.com. and a milestone for drone technology, for the first time ever, the faa has approved the use of unmanned drones flying over land to perform routine commercial services. the agency gave the case to oil giant bp which plans to use the drones to survey pipeline and equipment at energy facilities in alaska. and united airlines changing the terms of its frequent flier program, rewarding people who fly more and spend money on tickets. starting next month, the elite membership will earn up to 11 for every amount they spend on tickets, travellers who travel

less than 25,000 miles a year will earn only five miles per dollar spent. and you may want to check out an upscale service offered by jetblue. they call it mint, a new business class cabin offered on high class cross-country flights. >> reporter: jetblue is rolling out mint, its premium services on flight between new york and los angeles starting this weekend. it is the first time the airline has ever offered a second tier of service. having built the brand with extra space. the move represents a significant shift in strategy for jetblue, as it looks to attract the industry's highly valued trans-continental corporate travellers. >> we picked these markets because they are the biggest markets in the country for the premium up products such as the mint experience. but also we feel the products are extremely high and refusely average right now.

we felt there was a great opportunity for jetblue to come in and do what they do best. >> one way tickets for mint will range from 599 to 999, still less expensive than bigger competitors like delta and united. mint cabinets will have four suites with doors that offer massages at the push of a button. there will be gourmet meals and passengers have access to free wi-fi. analysts believe it will shake up shs travel. but prices need to rise for jetblue to see a return. >> jetblue will struggle to some extent to take away from the corporate traveller whos loyal from our frequent flier aspect, such as with delta. but it will be successful from a bookings perspective. i just question you know the return that they're able to generate at $599. >> but the carrier says its new premium service is only part of

a larger redesign initiative. one that could maximize returns without sacrificing its core business. the key to jetblue's success lies in the air bus a-321. they're 23 feet longer and can fit more than jetblue's big fleet. it costs the same amount to fly. that means higher margins and bigger profit. >> so even if mint doesn't take off the streamlined seats in the core section could still power profits as long as customers coinue to buy those seats. for "nightly business report," i'm morgan brennan at new york's jfk airport. nasty results from radio shack sent its shares falling, and that is where we begin tonight's market focus. they reported their ninth straight quarterly loss. the electronics retailer is burning through cash as they try to turn around their business but so far the efforts are not working. they blame the bigger loss on

the weaker mobile and consumer electronics business, stock plunged to $1.38. and chico's the women's retailer has been in talks which could lead to one of the largest take private transactions this year. reacting to the takeover buzz, shares rose 6.5% to $16.53. and meanwhile, botox maker allergan rejected the latest offer from valeant pharmaceuticals. the company said that the $53 billion bid significantly underbid the prospects for growth and creates risks for shareholders. shares fell at 163, and valeant at 123.55. metlife announced the first share back program since 2008. the nation's largest life insurer's buy, shares rose to 55 and change.

and shares of green mountain rose on news that the company is teaming up with subway. the company's single serve coffee brewers will be available at subway locations. the stock was up 1% to 115.38 there's. well, advances in technology has changed just about everything we do, including the way banks and other financial firms keep your money and investments safe. and some of the latest tech advances were on display on today's start at the financial conference in new york city. >> reporter: the exponential financial conference gathered some of the leading thinkers in disruptive technologies, 3-d printing, artificial intelligence, genomics, and robotics. the message? big change is coming. >> i think that folks need to think about how technology is getting faster, smarter, better not just mobile phones but it is where they come together.

this convergence, when you match them up, that is where new innovation and technology and companies are shifting the landscape. >> ibms michael roden briefed them on how the artificial intelligence system is famous for defeating two jeopardy champions is now branching out into medicine and finance. you will see watson apps for almost any type of information soon. >> the simple phrase i use is, imagine the best professional you can think of. the best interviewer, the best writer, the best lawyer, shopping assistant. the best call center person. if you can capture that intelligence in a system you can now scale it and augment it so that it can get out to the masses. >> daniel nadler of stanford described it for personal finance, a kind of series that can answer any type of financial questions. the implications, the advice business is about to be out-sourced to computers. the change is happening so quickly that the conference

organizer warned that most companies are not prepared for these kinds of disruptions. >> in the next decade, 40% of today's fortune 500 companies will no longer exist. so the question you have to ask yourself is, you know, are the companies that you're investing, on what side of the fence are they? >> this technology is moving so fast that i don't even have to attend these meetings anymore. i can just send it by beams with a robot that will attend the meeting in place of me, while i just sit and watch the proceedings from somewhere else. for "nightly business report," at the lincoln center. i really am at the lincoln center, no, really. yes, he was. and coming up employee perks you will never guess what start-ups at silicon valley are offering to attract the top talent. that story is next.

. the future of the internet will be video. well, that is what cisco is predicting, the computer networking giant says that by 2018, videos will account for a huge 84% of all internet traffic, including paid tv services, on-line content survivors and internet sites like youtube. just a few years ago companies like internet were struggling with revenue and fighting to attract new employees often with perks they could not find anywhere else. and as those companies kept

growing, so did the perkings. josh lip ton takes a look at some of the companies. >> to over head price. >> one popular perk? free workouts. gym memberships can be expensive, and the start-ups bring fitness into the office. at nerd wallet, a boot camp trainer comes to the office and gives their 80 employees a free hour-long workout. nerd wallet's executives say they want to create an atmosphere where employees want to come to work. >> i think boot camp actually does more for team bonding than even happy hour. we end up interacting with people from across the company that we don't normally see on a daily basis. and there is something just very cool about doing push-ups or struggling through a set of kettle bells. >> start-ups also note that mental health is as important as physical health. zosi.com is an on-line service that connects users with local

activities and adventures. the employees take part in roof-top yoga sessions, an acvity that he says speaks to the company's mission, getting people out of the office and experiencing the world around them. >> running the largest company doing activity bookings is a really exciting task. but it is also a really big task. so offering something like roof top analog is yoga is a way for the team to take a break and grow and bring the company together. >> start-ups in the bay area also offer perks for getting to and from work. if you work at ever-note, the popular note-taking app and you buy an electric vehicle, the company pays you $250 per month which is a taxable benefit. in california if you own a car then you can drive on the car pool lane, and employees get to work faster and probably arrive in a much better mood.

recruiters say these kinds of perks help start-ups attract talent. but there is another motive. when ceos offer free workouts, food and subsidized transportation it is one way to make sure their workers stay longer at the office. josh lipton, "nightly business report," silicon valley. to learn more about what the start-ups is offering, go to our website at nbr.com. and finally, auto production coming to a whole new level, they teamed up with heinz, th want to use dried tomato skins to make car parts, hard to imagine, but they want to use it inside plastics like coin, and under-body shields hoping the recycles use will reduce the wait and costs. in the future they could use cocon

coconuts, rice and even dandelion boots. that is "nightly business report," i'm susie gharib, have a great evening. tyler is back tomorrow. we both hope to see you then. >> this is "bbc world news."

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