tv First Business KICU November 18, 2013 4:00am-4:31am PST
as we head into 2014...a look at where the jobs are. in today's cover story.... a new fast food fight is in the works. plus... why one trader says he wants in with the in crowd on one under the radar stock. and....all in the "facebook" family.... randi zuckerberg gets unplugged, as she spills on life behind the scenes in silicon valley. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! it's monday, november 18th.i'm angela miles. in today's first look: closing in on the round numbers. friday the blue chips and s&p pushed up to all time highs placing the dow near 16,000, the nasdaq almost to 4,000 and the s&p is not that far off from 1,800. stocks are up 6 weeks in
row.gold edged up $3 dollars and oil fell a dime. jp morgan has a tenative agreement to pay $4.5 billion dolalrs to settle claims with investors who lost money on mortgage backed securities in the housing crisis. on capitol hill this week. budget talks continue and janet yellen could be approved to become the next fed chair by the senate banking committee. this market continues to show strength. larry shover of sfg alternatives join us on this monday morning. good morning to you larry. > >good morning. > >it's a yellen kind of a week but it's also another week that we could see another record run. > >it could be. last week was six weeks in a row of the market being up. a lot of people blaming it on the fact that yellen is somehow---but nothing's really changed except they just reiterated the zero interest rate policy and how that's gonna be extended for a
long period of time. that's going to help underpin risk settlement. > >and yet crude has been on a losing streak. the biggest one we've seen in a long time. > >you're exactly right and boy i'd like to say it's gonna continue but i'm afraid we're almost at the end of it. right now it's below break even points for refineries, for producers. at this point, they're gonna scale back to get that price back up. > >warren buffett came out and said he has a big stake in exxon. would you take that same stake? > >i would for his reasons. it's got a great dividend. it's got a good history and it has a big control in the wti market. > >what do you think about the financial sector? > >it's amazing last week, the price action. xlf in particular. it's been spending the last few months just reconsolidating, regurgutating. last thursday it made new highs and it continues to do so. so it's a good sign for the overall market. > >thank you for coming on the show. have a good trading week. > >you're welcome. the testy tone between boeing and its largest union over the building of the jet makers new 777x-- is being closely watched
by labor leaders and corporate america. we turned to a labor lawyer for bird's eye his view on the negotiations. boeing machinists union rejected the company's labor contract by a 2 to 1 vote last week prompting boeing to issue a statement saying: "we are actively pursuing all of our options in regards to 777x location...we have no timeline for making a decision, but we still plan to launch the 777x before the end of the year as scheduled." over the weekend-- boeing showed off the new wide body jet at the dubai air show.the plan was build it would in seattle if the union agreed to boeing's terms. its wage growth, its pension expenses its, its health care costs all of those things will be reduced by this offer.plus, they do weaken the union considerably and that is clearly something the leaders in chicago want to happen.
the main thing i think the union should be looking at is protecting job security going forward. paul starkman of law firm pedersen & houpt says it's critical at this junction for the union to show signs of negotation wiggle room.boeing is reported to be scouting new location to build the super jet in south carolina, san antonio, texas, ogden, utah and long beach, california. i think for long term there are going to have to be compromises made on both sides and unfortunately right now, boeing has the upper hand and more bargaining leverage. for share holders the deal is already a win-win.boeing stock soared to an all time high last week. the union declined our offer to comment on air but said in a statement.the union perserved its pension. a group on behalf of a mcdonald's employee calls it a case of "mc-verify your eligibility for work or else." as our cover story explains, a letter that asked an employee to reconcile her name with her
social security number has led to allegations of illegal employment verification. "se vey, se siente....presente." 42-year-old maria sonia acuna avila worked in the kitchen of the same mcdonalds at chicago's union station for more than ten years. but a month ago, she received a letter from the franchise owner's payroll manager saying that the company just now discovered "your name and social security number do not match" those at social security administration. and to "provide this information within 30-days to continue to be allowed to work" there. "no se proque ahora...las papellas." "i don't know why they're checking my documents," she told reporters. her attorney says his client is active in labor demonstrations to raise wages and that the mcdonald's franchise owner has not produced a governmental request for the information. "i've repeatedly asked if you have a document just provide it to us. they have failed and refused to produce it." nor did acuna avila comply with the letter. now, this mother of four is off the schedule from her 8-dollar-35-cents-an-hour
job. "we ask that maria be put back on the schedule and that justice be done." mcdonald's corporation does not own the outlet. it's a franchise. the franchise owner did not respond to numerous requests for an interview. "this is a sort of shot-across- the-bow to prevent unionization and create a show of resistance." attorney chris williams says his client filled out her correct name and social security number when she was hired more than ten years ago.the misuse of employment eligibility verification systems violates state and federal law. shares of the *new american airlines will land at the nasdaq. following the completion of a merger between american and us airways, the companies will trade under revamped ticker "aal."amr shareholders will get 72% of the new company, us airways
shareholders 28%. the two inched toward closing the deal last week, following concession guidelines from the justice department. a bankruptcy court must give the final stamp of approval. the deal is expected to close in early december. investor bill ackman is betting big on fannie mae and freddie mac. ackman's hedge fund pershing square is taking a nearly 10 percent stake in each of the mortgage finance giants.he is the latest investor to buy into the companies.pershing wants to discuss capital and business plans, after another offer this week by fairholme capital management. bruce berkowitz, fairholme's founder, wants to buy parts of the companies from the government and recapitalize them in a 52-billion dollar deal. moody's credit ratings agency is downgrading major banks. the agency says its because new rules under dodd frank make it less likely the banks will fail and the government will swoop in with a bailout. moody's lowered debt ratings by a notch to jp mrgan chase, goldman sachs, morgan stanley, and bank of new york mellon. moody's
confirmed ratings for citigroup, bank of america, state street and wells fargo. moodys says all 8 banks are rated as investment grade and have a stable outlook. president obama is calling on his supporters today. following a rocky start to the massive insurance overhaul, the president said he'll hold a conference call with supporters today to discuss immigration reform, healthcare and more. meanwhile, both sides of the aisle are looking for a fix in light of the recent changes to obamacare. friday, the president met with insurance executives to brainstorm ways to fix the current situation. the president met with insurance executives to brainstorm ways to improve the current situation. " because of choice and competition, a whole lot of americans who've always seen health insurance out of reach are going to be in a position to purchase it. and because of the law, we're also going to be able to provide them help even if they are still having trouble purchasing that insurance. but they've got to know what those options are in order to be successful." also on friday, the house passed a bill that would let insurance companies sell through next year health care plans that do not comply with the health care law.
the president has threatened to veto the bill.last week, he did promise to let consumers keep for one year their existing plans that were cancelled under the affordable care act. also, the hill dot com reports -- with efforts underway to repair healthcare.gov glitches are now reportedly below 1%. problems persist at the us post office.the agency reports it will take a loss of $5 billion dollars this year. postmaster general patrick donahoe is once again urging congress to pass legislation that would reduce the amount the postal service spends to pre-fund retiree health benefits.while this is the 7th straight annual loss for usps operating revenue rose 1.2% to $66 billion on growth from package deliveries.however, revenues declined 2.4% for first class mail. last week usps revealed a lucrative with amazon to deliver packages on sundays. google is getting greener. the company is using 80 million dollars to fund solar projects in california and arizona. it will fund six utility scale solar facilities. its part of a continued investment effort by google. total -- the company has spent close to 1 and a half billion on renewable energy this year. after weeks of failed
negotiations, jos. a. bank has dropped its bid for men's wearhouse. bank's $2.3 billion bid expired thursday.since september, men's wearhouse has refused a deal that would merge the two largest men's retailers in the u-s.now eminence capital, the biggest investor in men's wearhouse, is calling for a meeting of shareholders to discuss options. carl icahn is taking a bigger bite of apple. icahn picked up nearly 4 million shares - or about a $2 billion stake.it's part of his plan to boost ownership and gain more control over apple. last month, icahn sent a letter to ceo tim cook, suggesting the board boost its stock buyback plan to $150 billion. icahn has been buying up shares in apple because he consideres them undervalued. shares in apple closed down 6 tenths of a percent to 524 dollars on friday. a tiny store on the east coast is boasting the biggest sales of iphones. a report from abc news says the "christiana mall" apple store in newark, delaware claims to sell more phones than any other apple retailer. delaware has no sales tax and is located just off a main highway connecting east coast states making it easy forcharter buses from other state to roll in customers.
december 2nd is cyber monday. ibm digital analytics predict record online sales, due to growing hype on social media. however retailers are bracing for a hit over the thanksgiving weekend. only 1 in 10 americans plan to shop "on" thanksgiving day. 8 major retailers are open on the holiday: walmart, target, sears, jcp, best buy, gap, kohls, macy's, officemax. the tab is down for this year's thanksgiving dinner. the average cost of this year feast will fall from $49.48 last year to $49.04. okay, it's not a dramatic change-- but here's the breakdown.sweet potatoes, pumpkin pie mix and milk will cost you more--but turkey prices are down.one other
mention- butterball-- the nation's largest turkey producer is facing a shortage of fresh large turkeys- but has plenty frozen birds. still to come: from life in the public eye to facebooks public debut...facebook insider randi zuckerberg will be here. plus...all over the road...we'll tell you about an impressive stock that's hidden in plain sight. after the break...... a new year, and a fresh start. sectors that are stepping up hiring in 2014, next with bill moller.
america is in a career transition. middle class manufacturing jobs keep fading and technology continues to grow. so. let's look just ahead - to 2014 and what the hiring trends will be next year. tracey wilen is an author, speaker and scholar---knows all about the impact of technology on careers and society. she joins us by skype. tracey, before we get specific, what are the general trends you see? > >bill, thanks for having me. i think some of the general trends are consumer, retail, hospitality, energy, and even manufacturing. > >so those are the growth areas. you also note that online hiring is growing. absolutely. just think about it---cyber monday is coming up.
that started in 2005. who ever heard of that? we always went shopping on black friday. > >what are the jobs that companies will be most eager to fill next year? > >there's always going to be technology jobs. computer programming as well as biotechnology are high growth areas. i think people need to think about healthcare. the baby boomers longevity, diabetes, and the confusion around healthcare will actually open up a lot of job oportunities. > >i know that energy is a growth sector. > >my experts in recruting tell me energy is very spotty around the united states. if you're in the right region where there is energy opportunities such as solar, wind, nuclear, fracking, natural gas---there are opportunities wherever those development areas are. > >if somebody's considering the job field next year. are large companies to be the big hiring sources or middle sized
or small? > >that's a really good question. a research study came out from boston researchers about the opportunities are really with young firms. young firms will start out as small and the will have a rapid acceleration. if i were looking for a job or encouraging someone where to look, i'd look there. i would also look at the medium sized firms. i think you can have a lot of responsibility and do a lot more than you can at a large firm. so i would look at those two areas. > >tracey wilen, thanks you so much. > >thank you bill. thanks bill-- automaker fuji- reportedly could be planning to pull out of a factory in indiana. fuji is said to be considering ending its production of toyota's camry sedan at the u.s. plant.camry production started at the indiana location in 2007.the automaker however, may wind up building more subarus at the plant. coming up are investors pouring into the options market seeking protection against twitter? and wait till you hear what the sister of facebook founder mark zuckerberg has to say about snapchat. she'll be here, after the break.
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founder mark zuckerberg. but that doesn't mean she's living in his shadow. joining us now randi zuckerberg author of the new book. "dot complicated: untangling our wired lives." thanks so much for coming on our show. > >thank you. > >i have to ask you the first question about healthcare reform, and i know that's an odd topic but you have to be watching this from a technical aspect. what do you think about this? > >it's funny because i've been out talking about my book, dotcomplicated and i was like well, gosh isn't that the most dotcomplicated thing of all? president obama's relationship with technology right now. it's very interesting that it's happening at the same time. > >he actually played a role in you career. you were working at facebook and one of the highlighted moments is when the president had his town hall meeting through facebook, which was huge. > >it was really an amazing career highlight for me. to have the president feel that
facebook was the best way to reach out to the entire american public was---you can never dream of something like that. > >it's also the day you quit. > >technically i didn't quit for a little while after that but that was the day that i realized this is the direction that content, that media are going in and i love facebook and i loved my time there but i want to be able to use all of the platforms that are out there. not just be limited to one social network. > >what have you been doing since? > >i've produced several products for television. i have two books that are out right now---dotcomplicated and dot for children. dotcomplicated is also a web community for people to share their dotcomplicated moments and give their advice. > >you had a little issue with the veterans. you were offering free books on twitter. but you seemed to have resolved that. are you getting any more backlash? > >i think when you're a public figure no matter what you say
there's backlash. i think all of us have experienced going online and having haters. and we're all kind of mini celebrities in this world so you need to get a thick skin and realize that nothing you say is gonna please everyone. > >we don't have a lot of time so i want to do a lightning round with you. just one word or one sentence answers here. first question---my next big goal is? > >to make dotcomplicated a huge success. > >i hope my children grow up to be? > >have great tech-life balance. > >my brother mark thinks the winklevoss twins who contend they started up facebook are? > >no comment. > >snapchat should? > >vanish. > >i think twitter stock is? > >awesome. > >i think facebook stock is? > >mega-like! > >good to have you on the show. her name is randi zuckerberg and the book is dotcomplicated. best wishes to you. > >thanks so much. just ahead-- find out why the
james ramelli of keene on the market dot com is checking the charts for us this morning. good morning james. > >good morning. > >let's start with twitter. twitter options opened for the first time on friday. there seemed to be a downward bias. why was that james? > >trading in twitter options on friday definitely did have a bias to the put side and there could be a couple reasons for that. one, there's gonna be a lot of people that are long this stock or have stock that they had before the ipo that are not going to be able to sell it because of lock ups. they're going to be looking for protection---short term protection, long term protection ---in twitter. so we're going to see some activity in puts. another interesting thing that we saw in twitter options on friday was that the markets were extremely competitive and very tight. now this is very good for the retail trader because they don't have to give up that much edge but it is bad for the market. so it's going to be interesting to see how those markets play out as we get some more data on twitter and as the stock continues to trade through next week. > >you are watching a stock
that trades under the ticker dan. dana holdings. and it has to do with vehicles on the road and this is big business. so what do you see happening here? > >they do business with pretty much every major vehicle manufacturer in the united states. the stock is up over 20 percent this year. but we saw a huge technical breakdown when they reported earnings. the stock got crushed. it is still up a lot and what we're seeing now is institutional money coming in and trying to call a bottom. huge activity in march 20 calls---these are just out of the money. they've been buying these all week long in big blocks. they bought another 4 thousand on friday. institutional money trying to call a bottom here thinking the stock is gonna trade above 20 on march. they're playing it to the long side which means i want to play with them. i'm long those calls as well. > >great to have you on the show. thank you. > >thank you. coming up next time on first business...renter beware! from jewelry, to furniture, and appliances there's a sharp rise in the business of rent to own. on tuesday's show how to spot a rip off in that industry. from all of us at first business, have a great start to your week!
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