Session last night was action packed. Starbucks profits perked up traders interest with its strongest 3rd quarter ever. Amazon had higher sales but posted an earnings loss. Zynga stock was zapped after the outlook fell short and the company said it is nixing plans to get a gambling license. In trading yesterday, there was green across the screen with all three indices along with gold and oil gaining ground. A House Committee is pushing a bill forward that would end saturday mail deliveries to your door. And the fda plans a mystery announcement today. Larry shover of sfg alternatives joins us now. It could be a wild trading day larry, based on what we saw in those Earnings Releases after the close last night. Good morning. Good morning. Lets start with starbucks and amazon and get your take there. Starbucks, its like people are realizing its just not growth in asia and latin america, but the fact is theyre doing a great job in the u. S. Making some key acquisitions, theyre doing very well in the Retail Market with kcups and with via, so its just not focused on outside the country. Theyre doing well everywhere. What about amazon . Amazons a different story. Their p e ratio is through the moon right now, and we have growth thats struggling outside the united states. Its ok here in the u. S. , but outside the u. S. , not so good; and the fact is, growth is decelerating right now. Theyre spending a lot of money on infrastructure, theyre spending a lot of money on kindle, etc. Longterm it might be good, but its a 300 stock at least it was yesterday so, really risky up here. And then there was expedia. Expedia, expedia disappointed as well. Expedia did well outside of the u. S. , especially asia, specifically japan and korea, but the revenue is going down. Volumes up, but revenue is down, so thats not really good for a business. Theyre expecting to have more on the top line. And zynga had a huge disappointment while facebook rallied yesterday like crazy. Yeah. Facebooks a different story. Theyve finally figured out how to better monetize their ad dollars, and especially expand outside the u. S. Dollars with advertising in mind. Zynga on the other hand, i mean right now its a 3. 50 stock, and they have a new ceo whos got a lot of challenges. Theyve lost most of their executives. The fact is, they havent come up with a game thats been sticky ever since they developed farmville back in 2009, so they might have to resort to Online Gambling to resurrect the company. But for now, theyre just trying to find something, some way to get users to go from the computer to their mobile phones or their tablets, something that will stick. Larry, im glad youre sticking with us. We appreciate all your comments this morning. Take care. Thank you. In our cover story, big box retailers are facing resistance from some communities who want the jobs that come with the grand opening to be a wage residents can live on. Often that is higher than minimum wage. Besides education, some say the approach is one of the options those on the fringe of the middle class are counting on. This fall, a Walmart Super center will open on chicagos south side, bringing with it 400 jobs starting at 8. 75 an hour. Its not the 10 an hour local politicians wanted, but as one said, its better than a vacant lot. Economicst lawrence officer says its a tradeoff a job, but not a living wage for a family and farther still from middleclass. Recession did it. And the Global Economy killed manufacturing, which was the pathway into the middle class. Local officials in washington d. C. Are trying to force retailers grossing over a billion dollars a year to pay employees 12. 50 an hour. But with walmart, target, macys and home depot threatening economist lawrence officer doubts retailers will cave and may even backfire. Walmart isnt going to pay 12. 50 an hour. The market will dictate things. Theyll just open one in virginia. Chicago and washington d. C. Are among the latest battlegrounds for those seeking a living wage from work that, until now, has paid less than that. Surviving in the city is the hardest if youre making minimum wage. Its the hardest way to live. Its a starting point. The idea is you move up and live better. For a lot of people, moving up just hasnt happened. The commerce departments median middle class family of four lives on 81,000 a year, lives in a home worth 230,000 pays 5100 a year in medical bills and can afford a oneweek vacation costing around 3,000. If the aspiration is middle class, the lowend threshold may surprise you. Its 42,000. If you make less you are at poverty level, according to the government. In jacksonville florida, president obama said shortterm partisanship is not the path to middleclass prosperity. Weve got to stay focused on how do we build the economy that works for everybody. Thats my focus. The fight for a living wage is often associated with minimum wage service jobs. In comparison, the commerce departments average hourly wage for a middleclass worker is about 17. 50 an hour for men, 14. 50 an hour for women. The federal indictment of the nations Largest Hedge Fund is rocking the finanical world. Yesterday, manhattans u. S. Attorney handed down an indictment against sac capital advisors. The firm faces a number of charges, including criminal responsibility for Insider Trading committed by numerous employees on a scale without known precedent in the hedge fund industry. The case could have a Ripple Effect on wall street. A lot of people are going to be hauled in on this, so the fallout is going to be how far does this go. Was it contained just with this one hedge fund or will it be all of the people who were trading with the company as well . Sac, responding to the indictment, says the firm never encouraged, promoted or tolerated Insider Trading and will continue to operate. Sac also blames a few bad apples who face prison time for bad behavior. Sacs billionaire founder steven cohen has not been charged, but will face an sec hearing next month. Glaxosmithkline is attempting to clean up its act in china with a new boss. The companys Senior Vice President of europe will take over as general manager in china. The former chief in asia will stay with the company to help with the bribery investigation. Gsk is accused of a multimillion dollar scandal involving bribes to government officials, doctors and travel agencies. Four executives have been detained, and one has been banned from leaving the country. The faa is ordering safety inspections on boeings 787 dreamliners. It follows a fire this month aboard a jet that was parked at Heathrow Airport in london. The problem was traced to an emergency beacon made by honeywell international. The faa is ordering boeing to remove or inspect the emergency localtor transmitters for pinched wires in the casing and evidence of heat or moisture. Starting next month, the cruise industry will become more transparent. Royal carnival, and norwegian cruise lines are agreeing to expand reporting of at sea incidents. Findings by the senate reveal since 2011, hundreds of crimes on board have gone unreported. Out of nearly 1,000 crimes logged with the fbi, only 31 have been made public. This week, lawmakers are urging stronger industry oversight following dramatic highprofile problems on popular ships. These particular incidents, which received significant media attention, did underscore the challenges and discomfort that passengers can be subjected to including days without power or plumbing, and raise questions about the protections afford to u. S. Passengers. Royal caribbeans stock was recently rocked after a fire broke out on a ship in may. Yesterday, the cruise line reported secondquarter profits that beat wall street expectations. The company says bookings are up. A massive cybercrime case has been cracked. U. S. Prosecutors are charging 5 people, 4 from russia and one from the ukraine, with involvment in a credit and debit card theft ring with losses amounting to 300 million. Its considered the largest hacking fraud case in the the nations history. Nasdaq, the dow jones, visa, jc penny, and jet blue were all hit in the scandal. As mentioned earlier, facebook became an overnight sensation on wall street after reporting blockbuster earnings wednesday evening. The stock yesterday traded above 34, the highest level since its 38 ipo in may 0f 2012. According to ceo mark zuckerberg, teens remain highly engaged in the social network. Recent reports said teens are leaving facebook out of concerns of privacy and using the same social network as their parents. Facebook has now topped a billion members. In our earnings roundup, gm reported profits that topped a billion dollars in north america. The company also reduced its losses in europe. However, it cites weakness in asia. Shares of mead johnson shot up 5 yesterday on word that the baby formulamaker stands by its 2013 forecast. It says price cuts in china will even out due to higher sales in the hong kong market. Boston scientific shares also surged on word of higher sales of medical devices. And crocs hit the floor, falling 21 after the company missed the mark on its expectations. The outlook may be growing bleaker for blackberry. The company is cutting 250 jobs in its new product testing facility in waterloo, ontario. The layoffs stem from weak blackberry 10 phone sales. However, Company Officials call it the next stage of a turnaround plan. Shares closed around 9 thursday. 20 years later, the chevy impala is back on top. For the first time in 2 decades, Consumer Reports ranks the sedan as the best in its category. Its a huge turnaround story. Last year, the magazine called the 2013 model not worthy of driving. Ouch. The 2014 edition gets high marks for handling similar to a luxury car. Tesla and the bmw 1 series top the allaroundbest list. Americans are spending hundreds of dollars on sneaky fees. The socalled gray charges typically come attached to free Trial Services offered with magazine subscriptions and music streaming services. After the free trial period ends companies automatically tack on charges. A report says the fees are not illegal, but add up. It cost americans a combined 14 billion per year or around 200 bucks each. Still to come, feeling right at home how to score a great deal on a Summer Vacation rental. Plus, its a traders unplugged friday. Our traders explain how to shake off your fears of investing. But first, spending breaks on car insurance. Youll be kicking yourself if you miss these tips. First business continues after this. Many drivers are missing out on insurance discounts. We found out the secret is to simply ask for them. Many people are getting automatic discounts, perhaps for being a good driver or having a safe vehicle, but there are so many other discounts that are out there that you may not be getting if you dont know to ask for them. That was laura adams of insurancequotes. Com. She says switching to paperless statements, improvements in your credit score, and getting married are ways to qualify for insurance discounts. Hotel costs are driving higher but renting a condo or a home this summer is open to negotiation. No one knows that better than gabe saglie of travelzoo. Com. Good morning, and for people who are not familiar with your business you negotiate great deals on venues all the time. So, what would you do in this situation if youre talking to a landlord . Certainly keep in mind what their need is. So if youre looking at a summer rental you want to look at destinations where there is in fact a need period during the summer season. Florida is a perfect example where theres not just a need over the summer months, where the temperatures go up and demand softens, but theres a lot of competition on the ground. In hawaii, for example, summer they do just fine but later summer into fall more availability, youve got more negotiating power there, because theres just more need to get people into a lot of these homes or apartments or condos or villas or whathave you. So i think seasonality and need is going to be a major player and certainly be prepared to jump on a deal when you see it. If its a price point that youre comfortable with, ideally below what you were planning to pay it might be a deal worth taking. When do you know that final offer is the final offer . I think that when you get to know who youre talking with and realize what the wiggle room there is, i think that for a lot of destinations, if demand is there, theyre not going to spend a lot of time with you going back and forth. If youre seeing a lot of openness from the person youre dealing with that means that they probably have the need, and therefore you have a little bit more muscle to flex. And if somebody doesnt want to deal with a landlord situation, they do want to stay at a hotel, whats the negotiation effort there . What should they do . As far as negotiating, a company like us does that right off the bat. Once youre dealing with a Hotel Directly oftentimes the advertised rates are sort of what youre going to get. Your next best opportunity to negotiate is when youre at the desk checking in. I always like to tell people to check in a little bit later in the day 5 00, 6 00, when hotels can better gauge whos canceled how much availability theyve got, and then start seeing what you can do to perhaps get an upgrade or perhaps get some of the amenities that might come with a larger, better room, but at the price point that you locked in. Thank you very much. Thats gabe saglie of travelzoo. Com. Thanks again. Thanks. Autumn airfares are dropping. Prices this fall are estimated to be 30 lower than summer airfare. A usa today travel expert says its best to book now for great deals to destinations such as seattle phoenix, denver, minneapolis, austin, san antonio and new orleans. Coming up, the majority of americans fear the stock market while most wall streeters are fearless. How to end those worry woes is still to come. Time to turn up your tvs joining us now, the dynamic duo of Alan Knuckman and andrew keene. They are on the floor of cme group and ready to go for traders unplugged. Hi guys. Hi angie. Topic 1 stock scaredycats. People are fearing getting into the market. What do you make of this . I think its a bit of an irrational fear. This markets all about controling risk. As a professional trader, youre right, youre wrong, but you need to control your risk on each trade. People dont look at it that way. People kind of look at it as an allin type thing which i think is wrong. I definitely agree with that. If you think of the history and the study of this, if you actually invest money in the stock market on the same day of every month, youre going to have better returns over the longrun than it just going allin. If you have 10,000 to invest, instead of going allin on the market highs, put a little bit in every month. You get a better return. Were not doing surgery here. People arent dying on the table. Its money. You can always earn more. But control your risk on each investment so you live for another day. All right, lets move on to topic 2 pepsi or oreo . A famous activist investor suggests that perhaps pepsi should do a spinoff and buy oreos maker instead. What do you think about this one . If you look at it, nelson peltz owns about 1. 2 billion in mondelez, mdlz thats a lot of oreos. He owns 150 million in pepsi. So if they came out and pepsi bought mondelez for, lets say 3638, which he was talking about, its a 20 premium. So what does that mean . That means that stock goes up 20 . Does that mean pepsi goes down 20 . No. So of course he wants it to be bought hes going to make money off it i dont like the idea of selling an outoffavor stock thats already had a huge move as weve seen in pepsi, pepsi has broken out at its highs but if you look to mdlz, it had a big drop from 40 down to 25 last year, so i think its undervalued, and if you look technically, its trading between 28 and 32, the targets 36, which is about 15 higher, so i like buying the cookies and getting rid of the beverages. Topic 3 mobility to the max. Which company is best positioned for smartphone users . When this question was written, facebook was one of the answers, and obviously it had a big move, and it looks like its going to make an attack on its ipo price now that weve gotten above 32. But my play i want to look at is ebay. Ebays got solid support at 50, from a yearly basis, and the paypal angle has given them further mobility. More people are going to be buying things on their phone with paypal. If alan looked at the earnings report, ebay was an awful earnings report. Also theyre getting a lot of competition in the paypal space. I would stay away from that one. The one that i actually like is tmobile tmus. They spun off from pcs. The stock has been on fire. I think theyre going to be acquired by someone. We see a lot of acquisition in the mobile space. Weve seen veep being bought, clearwire being bought sprints probably going to get bought. So all these are getting bought i just bought something with my paypal on my phone. That just got bought. Lets take a look at the bonus round question for this week name the famous couple that reportedly is spendng 750,000 on gold toilets for thier new home. I know this one kim k. And. Kayne. Thats it excellent. I got it i got it this time you scored huge. Thanks for being on the show, guys. First business continues right after this. Ehicle. When i came here, i. I couldnt move. [male announce david was broadsided on the highway. They werent very hopeful at the time that he would survive at all. [male announce an ied wounded mike in afghanistan. I dont remember all of the blast. Was over 500 pounds of explosives. [male announce their physical injuries have healed. The traumatic brain injuries tbis havent. The way i describe it is youre just afraid. Am i going to start forgetting things . [male announce tbi is as serious as any battlefield injury. Youre just not the guy you used to be. [male announce thankfully va has made important advancements in tbi seeing it, treating it understanding it. And theyre here to help veterans affected by it. I can see that what were doing here at the polytrauma unit is to move from survivability to thriveability. [male announce if you think you or a veteran you know has sustained a brain injury, get screened. A lack of fear has settled over the stock market. Joining me now is dan deming of stutland equities. Dan, whats going on here . The vix is now below 13. Yeah angie, were seeing the vix under some pressure here. Pretty subdued, but i think the thing thats really key right now is if you look at the market as a whole, you look at the spx basically realizing about an 8 move on any particular day of the last couple of weeks basically the last 20 days. So realized volatility is very low. Weve seen the consolidation pattern in the market the last couple weeks, and with that i think thats why youre seeing the vix stay pretty soft around that like you said, justbelow13 level. Now the s p 500 has been struggling to get above that 1700 mark. Thats a big number psychologically. What do you think is going on there . Again, some consolidation and really angie, like you said its psychological i think 1700 is significant. The market has struggled, the spx has struggled to get through there. But i think its really because of the earnings season. Were seen a fair amount of really disappointing news. For every facebook and for every apple out there, were getting some disappointing numbers as well, and were see a lot of stocks kind of take some heat. So right now youre seeing the market kind of wade through earnings. Not significant one way or the other, but still being able to hold onto the high end of the range. Exactly, and some of those have been pretty significant names, such as caterpillar which has been a drag on the market this week. So what about some of the smallercap stocks . How are those performing, dan . Yeah, interesting angie. Yesterday we saw really the dow and the s p pretty flat, up slightly, but we saw the nasdaq up decent, and i was looking at the russell. The russell was up almost 1 yesterday, so pushing the highs. It closed at like 1054 yesterday, just slightly off its alltime highs. So you are seeing maybe some momentum there in those smallercap names that ultimately might be able to propel the s p through 1700. And dan, whats the feeling on the floor right now amongst traders . Whats the scuttlebutt there . Right now, angie, like i said, weve seen this consolidation pattern, the vix pretty subdued, the market pretty subdued, youre kind of in that summer nonchalant kind of attitude right now. Well see what happens over the next couple days. Tomorrow morning we do have the Michigan Consumer sentiment number coming out, that could push the market around a little bit. But right now, youd have to say were in that summer kind of period where the markets just kind of languishing. Dan, always a pleasure. Have a good weekend. Thanks, angie. You too. That wraps up our week. Coming up next week on First Business what you need to know about taking out Student Loans that could very soon have adjustable rates. A bond trader joins us for the breakdown. From all of us at First Business, have a wonderful weekend what you are about to see is one ladderthe strongest, the safest, the most versatile ladder in the world. The americanmade little giant ladder system. Twenty four ladders in one. Coming up, youll see amazing demonstrations and hear compelling testimonials from real people