this is "nightly business report" with tyler mathisen and susie gharib. check, please, priceline buys on-line restaurant reservation company open table. and shares soar, will the move keep the profit engine growing? inside intel, the stock rockets to a ten-year high on strong demand for corporate personal computers but can the run continue? and full moon friday, it is friday the 13th, but stocks rose and our market expert has a list of stocks she calls good-bye for now. all that and more on "nightly business report" for friday june 13th. good evening, everyone, and welcome. today is friday the 13th and there is a full moon tonight. despite those ominous signs and continued turmoil in iraq, investors were enthusiastic

sending all the major averages higher if only slightly after two straight days of triple digit losses for the dow, the blue chip stocks got a boost from shares of intel which rose nearly 7% after it rose its full-year guidance on strong demand for personal computers that use its chips. and a drop in inflation last month, lower costs for food and energy. here is how the markets looked at the closing bell today. dow was 41 points higher at 16,775, nasdaq gains 13 to close at 4310 and finishing six points higher was the s&p at 1936. but for the week, the dow turned in their worst performing weeks in two months. a more stable calmer day in the oil markets today but oil prices still pumped higher. despite sunni militants continuing their march toward baghdad there are no signs of

supply problems coming out of iraq, west texas intermediate up slightly closing at nearly 107 barrels a day, and brent crude ending at nearly 13 a barrel, and meanwhile, president obama said quote, the united states will do our part but not by sending troops. >> iraq needs additional support to break the momentum of extremist groups and bolster the capabilities of iraqi security forces. we will not be sending u.s. troops back into combat in iraq but i have asked my national security team to prepare a range of options that could help support the iraqi forcesnd i will be reviewing those options in the days ahead. >> president obama said that american action could take several days and people should not expect this is something that would happen overnight. and reservations now being accepted by priceline.com, the on-line travel site paying three dollars a share or $2.6 billion

cash for the restaurant reservation open site table. investors ate up shares of open table today sending the stock 48% higher. shares of priceline down 3%. so what synergies does priceline see by acquiring open table, and if this is a case of where if you can't grow growth, you buy it? julia borsten has more. >> priceline is expanding beyond the crowded travel business with the leader in the new field. >> they want to expand in the area and open table is the biggest player in that area, i think. there is a lot of global expansion to be had. it is a hard business to have been on their own and they were definitely looking for expansion themselves. >> open table has 15 million monthly users who book tables at the more than 51,000 restaurants which uses software. and while they will operate inpendently, they value priceline to target its

services, they have potential to expand, just 20 restaurants outside the united states and priceline has a proven track record of building relationships with hotels overseas. plus, they're focusing on mobile growth. >> if you think about paying the check at the table or in your room without having to go to the waiter or checkout desk, those are obvious ideas we want to look into. >> the deal shines a spotlight on related spots, such as grub hub and sent their shares so soaring, with apple buying beats and facebook buying whats app, they're looking for stable returns. the other standout stock of the day, intel. as we reported shares jumped almost 7% to just about $30 a share, the highest level in a

decade. investors bought up the stock after the company raised its revenue guidance. as we told you last night the semiconductor is pushing sales for up beat. is it time to add the sales to your portfolio? so doug, let me just ask you the basic question, buy, sell or hold intel at this point? what are you telling your clients? >> we're telling our clients to hold onto it. we have a sector perform rating and we are very bullish on the sector part of it. >> when you call it a sector perform what does that really mean and how well do you expect the sector to perform? it is basically a commodity-based sector? >> i don't kno that i would call it commotized, what i would say is the sector is secure, and we're behaving with our companies along those lines where we're getting greater cash

along the secondtory. the sector still has legs with its ability to return cash flow to the investors. >> it seems like the main reason that there is so much interest now in intel is because microsoft is retiring its windows xp operating system and so a lot of people will be upgrading with their pcs. so is this a short-term phenomenon or is this something that goes beyond the next six months or so? >> that is a huge question that we're really trying to answer and it is very hard to get at the core right now. there is no doubt there is some impact from corporations that need to get off xp operating systems, still being used by a very large number at the install base. and as a result of that they are likely probably buying some new hardware. we did have quite a bit of

cannibalization pushing into the subsidy program. so there are a couple of pieces we're trying to dig out. i would say the market is benefitting from the windows upgrade cycle and we think that that lasted at least another quarter. it is probably going to take six or nine months to figure out just what type of an impact it is having. >> where does intel stand with respect to mobile chips and products and do you find that to be a particular weak backhand for this company? >> i would completely agree they are pretty much coming from a ground level of almost zero in the mobile market. investors are incredibly focused on how well they will do there, whether they can get into that market. management is dedicated into getting into the market. they're losing billions each year in their efforts to break into this market. we happen to advocate a buy-over build strategy, i think they should be more inquisitive in

the space as opposed to investing from the ground up. >> all right, lots to think about. doug freedman. and the diabetes epidemic is growing at an alarming rate with nearly one in ten americans suffering from the disease. and that is why some of the world's biggest drug companies which are gathering at the annual meeting are gathering to get a piece of this huge market. >> reporter: diabetes affects 347 million people worldwide and that number is only getting bigger. in the u.s. alone, 29 million people have the disease. >> over the next couple of decades it could affect most of the global population. >> reporter: most people have adult diabetes, increasingly it is being diagnosed in kids. it is very expensive, costing the u.s. $225 billion in 2012,

up 40% from 2007. the largest cost coming from hospital care and prescription drugs making it a big battle ground for drug companies, the growing number is $54 billion, growing by as much as $5 billion a year, dominated by a handful of drug companies all of which will head to san francisco this weekend for the annual meeting of the american diabetes association. novonortis has the biggest share, followed by lily, astrazeneca is not among the ten biggest drug makers worldwide but it is projected it will reach $8 billion by 2023. it is historically a hard market to get into. >> it is very high, expensive to produce insulin and i believe that that will keep a lot of competitors out of the market and help these companies retain a very strong pricing power and

very strong profitability going forward. >> reporter: the stakes are high and this weekend should provide a look at how new medicines may affect big business and our health. for "nightly business report," i'm meg terrell. >> to read more about the fast-growing market to diabetes drugs you can find the full story on nbr.com. and is the economy starting to create more high-paying jobs than low-paying ones? reversing the trend since we've seen since the great depression. the answer coming up. u.s. economic growth is

expected to accelerate in the coming months at the fastest pace in ten years. the power spaced organization for economic cooperation and development is now forecasting economic growth of 2.5% this year and even more in 2015. thanks to the domestic energy boom, a strong u.s. stock market and a rebound in jobs. some encouraging news about the u.s. job market. it turns out that a new report says many of the jobs created since the recovery are for high wage workers, not for low wage workers as previously thought. steve liesman explains. >> reporter: well, the economy has produced a lot of low-paying jobs since the recession ended, a new report suggests that quality, good paying jobs are making a comeback, wells fargo economist sarah house looked at the picture since last year and saw a much more upbeat picture since the recession, the high jobs are running ahead of the low-paying jobs, reversing the

trend. >> we're seeing higher paying j jobs. >> among the industries, oil and gas, meaning faster job growth with a business wage of nearly $31 an hour, still high paying is job growth and professional business services where 635,000 jobs have been added in the past year and the average wage of nearly $30 an hour, these are the jobs of accountants, architecture and managers. >> consumers have a little more room in their budgets to go out and spend meaning potentially they can save more money and put a little more in their retirement funds. this is the most positive scene we've seen in the labor market. >> of course there are more lower wage jobs being seen too, in the labor market and food service. they grew by 400,000 in the past

year but there is good news there, too. wage sectors above average by 3%, with many americans still under employed, there is a long way to go before declaring the job market healthy. better pay industries give the americans hope that they can find a few more dollars in their paychecks this year which could help to put the economy on better footing. also helping the economic recovery the rebound in housing. but even though home prices are rising and credit is still tight some borrowers who have previously lost a home to foreclosure can actually buy a home again. and the so-called number of boomerrang buyers is rising fast. >> reporter: linda lost her job in 2007, unable to pay her bills she also lost her tampa area home. >> it was either eat, or stay in the home i couldn't afford with no money not coming in.

and i had a short sale. and it was devastating. >> reporter: but van dooren never gave up. >> i knew what i was going to do. i was going to purchase another home when i could and i did exactly that. >> we see a lot of boomerrang buyers, i would say 20% of my clients are re-buying back in the marketplace. >> reporter: many of weaver's clients are using a program launched last summer by none other than the government itself. the fha's work program, borrowers need to show they lost at least 20% of household income for at least six months's causing the loss of the home. they then need to show they recovered from that with satisfactory credit, these are loans showing other unemployment debt but yes you can get another home for just 3.5% down, and a

credit rating. the program is not for everyone. >> well, you still have to have the right housing to death ratio. that is key, if you're over in-debted you won't get a mortgage. >> despite the housing crisis hundreds of thousands are still losing their home. linda van dooren waited three years to get a home but even that was faster than she expected. >> it is mine, i know what to do. i come to work and know what i'm working for. >> reporter: there are no hard numbers yet as to how many borrowers have used the fha program. but just a little perspective it is a very tiny fraction of the more than 7 million homeowners who lost their homes to short sales since the housing crisis began, i'm diana olick in washington. and agreeing to pay $10

billion in fines, citigroup is facing charges that it ripped off investors by selling risky mortgage-backed securities which later went bad ahead of the financial crisis. reports say citigroup offered $4 billion to settle the charges but the feds are looking for much more, shares fell about 1.5% to 7.59. and the owners of uni vision looking to sell the company for $20 billion. the spanish language giant is talking to cbs and time warner, according to those reports. it was expected that uni vision's owners would take the company public next year, that option still being on the table. shares of both cbs and time warner off slightly today, cbs closing at 60.45, and time warner. and still weeks away, they

have agreed on some terms, reportedly the merged company will be branded t-mobile, not sprinlt. the two agreed on a $2 million break-up fee, shares up to 8.73, t-mobile to 32.91. disney expects the global retail sales of the infinity game to be launched, shares were unchanged for disney at $82.80. federal regulators looking at claims that verizon and comcast are responsible for slow content streaming speeds, netflix has been complaining about deals they cut with the two companies to ensure they get the videos without hitches, shares up, verizon up a fraction, 49.18, comcast shares closed at 52.47, off just slightly, comcast is the parent company of cnbc which

produces this broadcast. the renewable energy firm aben abengoa yield saw the shares surge in the company's trading debut. the offering raised more than $127 million after the shares were at 29 apiece, stock finishing at 27% higher at $37 a share. restaurant share p.f. chang reporting a data breach regarding the customer's debit and credit cards. after the breach, they instituted a manual credit card system at all the restaurants, the companies set up a website for information about the hacking. and two things people are worried about, but not worried about the less talked about risks. she is susan fulton president of fbb capital partner. good to have you with us, i was intrigued by the idea that we spend too much time worrying

about what everybody else is worrying about and not enough time worrying about what we should worry about. >> well, we're worried about inflation. and i don't think we ought to be. we're not worried about de-flation, there are several things that could put us in trouble that way. one is gasoline prices. i see them continuing to move up. and that is going to be -- >> the deflation? >> what happens is, gasoline is a tax on our consumption level. and it takes -- it is like food and housing. if you have to spend more on it you have less money for anything else. so it is not a discretionary item. it is an item that you have to do to get to work. and at least historically if you look backward when gasoline prices have gone up we have had major economic problems in the stock market.

and i would use as an example 2008, the first time that our firm saw that the world was going to be in trouble was when gas prices got to $145 a barrel. and we sold half our gas. because what it was going to do is contract the market, which is exactly what it did. the second thing is the europeans are now -- actually have a negative interest rate. and they're hoping that will get their banks to -- to -- their banks to lend more to their population. but since everybody is lazy and bankers are lasz lazier than th average, it has the banks buying treasuries which will keep treasury yields way down. >> it is a fascinating conversation but let's look at

the really big picture, the portfolios, do you have a couple of stocks you recommend? let's go down the list, bank of america top of the list. not a very popular stock with investors, what do you find attractive here at $42.50. >> it is a warren buffet stock, a stock nobody likes. and all of the problems we believe have already happened. so it is going to -- it is going to have to talk the federal government into letting it pay a dividend again. but it has very, very strong cash flow, lots and lots of exposure to the checking, savings account market, which is the cheapest money a bank can get. and we think that they will be able to start paying the dividends this year sometime. >> all right, let's move on to another choice of yours, that would be caterpillar, cat. >> yeah, cat was a dog last year, it has begun to move up this year and has a little bit of a pullback. we think that it is under-valued right now, we believe it may run

ahead of itself. but we think that it has lots of get up and go and it is a global growth market. >> let's talk about mondolese, you have the $42 price target on this stock. how do you get there? what drives it. >> well, two things we believe will drive mondolese up, it is the old craft overseas, so it is a developing market play. it is the kind of thing people buy when they first begin to get money. and the second thing is it has an activist investor in -- a substantial part of it, who is looking at cutting costs and increasing shareholder value. so it has some pressure on its back. >> all right, susan, thank you very much for being with us tonight. do you have any disclosures about any of the three stocks you mentioned? >> no, i own none of them. >> all right, thank you, susan is president of fb capitals.

and what is the guolf industry doing to get people swinging again? more trouble at general motors, which announced another big auto recall today, the newest one involves more than a half million chevy camaros from 2010 because of an engine problem that can cut the engine similar to the older compact models that were linked to the other facilities. and father's day, we take a look at the struggle with the

favorite past time of many dads, fewer tee offs and slower sales put golf in the rough. so what is being done to help? dominic chu has more. >> reporter: the game of golf celebrates one of its biggest events of the year, the u.s. open golf championship in pinehurst, california, also the women's event, coming at a critical time for the golf world, according to the national golf association there are 5 million fewer people playing golf than ten years ago. >> golf requires a lot of time and a lot of money and that is something a lot of people can't afford. >> that is translating to a slowdown in golf equipment sales, earlier this year, both german giant adidas cited smaller sales, of course that is just one side of the story. other members of the golfing community believe the negative headlines are over-blown.

>> popularity in golf is directly tied to what is going on economically. so while we experience this little period of downturn in the game we believe it will be temporary. >> major changes are seen as a way to reignite interests in the game. there is also interest in bringing younger people in the game being done by some of today's biggest players. >> ricky fowler, dustin johnson, all of these exciting young golfers are getti young golfers into the game. they look athletic, say all the right things and wear all the right clothes so they're really exciting. >> but some real big issues remain, like will americans spend their hard-earned money on golf or other things? for "nightly business report," i'm dominic chu, pinehurst, north carolina. >> it is hard to play, dominic can hit i hard, i have played with him. >> on monday, they say how was it? they don't want to talk about it. >> no, that is very true.

that is "nightly business report" tonight, i'm susie gharib, happy father's day everybody. tyler, have a great time with your boy boys. >> we will, indeed. happy father's day, everybody, we'll see you on monday. erer

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