Thursday. After a long rally run. Gold buyers backed off their safe haven play by pushing gold futures down 41 dollars. Oil was the only sign of possible trouble with the syria crisis. As futures shot up 1. 13 per barrel. Boeing is ready to stretch. The jet maker reportedly has scheduled the first flight for its dreamliner 7879 for next week. Walmarts wage war win. The mayor of washington vetoed a bill that would have forced walmart to pay employees a living wage of 12. 50 per hour. The democratic mayor called it a job killer. And trader joes is reported to be Cutting Health care benefits for parttime workers. But will give them 500 to buy their own coverage on health exchanges. Lincoln ellis of Strategic Financial Group joins us on this friday the 13th. Lincoln, is there any reason to fear the market or should we be fearless . Friday the 13thwere sitting right close across all time highs across most of the major markets and weve got a big fed meeting next week. Maybe not fear but caution might be the word of the week. What about gold . It looks like money is coming out of gold rapidly. Gold has been having a rough couple of days. Actually the worst day yesterday in over two months and so i would be careful. The technical ways in which that market trades can be very treacherous for investors. And retail tellwhat do you expect we will hear from retailers and what will it mean overall for the market today . I think people will be watching these retail Sales Numbers very very closely. Back to school sales are a hugely important part of the retailers total profits for the year. Well also get a look at Producer Prices this morning and further pieces of the inflation puzzle later monday and tuesday. Anything in this market you would be buying . Emerging markets have come backwe traced almost half of their losses for the year. We think that thats an interesting longer term story and broadbased exposure to the commodity complex which has also spent the last three years getting the stuff beat out of it. Looks interesting here. Thank you lincoln and have a great day. You bet. In our cover story, the three ring circus of panic that brought the collapse of Lehman Brothers five years ago and a 700billion dollar bailout, known as tarp, for troubled Asset Relief Program led to change. But how much has been implimented and is it enough to prevent a financial crisis from happening again . At a conference in paris, this week, banking interests assessed progress toward making credit default swaps more transparent. For people who use these, theyre going to get pretrade transparency for prices and to keep record yes, we are headed toward that direction. Analysts say credit default swaps provided a form of insurance on risky mortgages and encouraged lending to borrowers with poor credit before the housing bubble burst. Then, in 2008, the phrase too big to fail became synonynmous with an economy held hostage. It led to wall street reforms under the doddfrank act restricting banks from over extending themselves. The Banking Industry is far more capitalized and with better quality of capital. But others warn that dodd franks intent is being picked apart in the rulewriting process. That regulators are too closely tied to the Banking Industry to support tough legislation and that Government Policies encouraging Home Ownership have not changed. Yes, banks have gotten more riskaverse, but because the government still subsidizes the housing market, the root cause of the housing crisis, it could bite us again five years from now. Though doddfrank reform was approved three years agoa lot of Details Remain unspecified. As of this month, 40 of dodd frank rulemaking deadlines have been met. 61 of the deadlines for reform have been missed. And about 32 of rulemaking requirements have not yet been proposed. An upcoming recess is canceled for congress. House majority leader eric cantor says instead of taking a break starting september 23rd. Lawmakers will work on a short term spending bill that avoids a government shut down ahead of the september 30th deadline. Thursday. The gop discussed delaying obamacare for a year. By attaching the plan to a government funding measure. The president has said he wants a Budget Proposal with no strings attached. The department of health and Human Services reports Health Care Reform saved consumers 1. 2 billion dollars in premiums last year. Russian president Vladimir Putin took to the New York Times to plead his case on syria. In an oped piece he argued against military intervention and chided the us for a goit alone mentality. Meanwhile, secretary of state john kerry continues diplomatic talks with Russian Foreign minister Sergey Lavrov will continue at least through today and possible tomorrow. President obama has expressed optimism that those talks could yield concrete results. The sec wants a list of concrete measures to improve technical systems at trading exchanges. Leaders of the nasdaq and nyse were called in yesterday for a meeting in response to the 3 hour long trading halt august 22nd at the nasadaq. Exchange officials blamed a technical glitch. One of the possibilities to ward off hack attacks is a kill switch. Mary jo white who chairs the sec stressed the need to strengthen critical market infrastructure. When Technology Falls short twitter is officially in the process of filing for an ipo. And, the founder of facebook has a message for the social Media Company that his ipo experience was not that bad. Despite the snafu on the nasdaq in facebooks opening day. Facebook founder Mark Zuckerburg said at this weeks tech crunch conference going public made the company stronger. Facebook stock has been climbing for several months. It closed yesterday just slightly below its 52week high. Now Facebook Stock has been climbing for several months. It closed yesterday just slightly below its 52week high. Twitter tweeted yesterday that it has confidentially filed for an initial Public Offering. The Worlds Largest chain is prepping to move into the ipo market. Hilton filed for a Public Offering this week and is looking to raise 1. 2 billion. Timing could be Everything Hotel and lodging stocks are the best levels in 6 years. Hilton is owned by blackstone which plans to use money raised in the ipo to pay down debt. Shareholders are sticking with michael dell. The majority of investors voted yesterday to approve selling the Computer Company to its founder for 24. 9 billion dollars. Stock holders will receive 13. 75 a share in cash plus a 13 cent dividend. Michael dell wants to take the Company Private and fought off activist investor carl icahn who believes dell is better as a public company. Michael dell said in a statment i am pleased with this outcome billionaire invester carl ichan is taking bigger bite of apple. Ichan tells cnbc buying more apple shares is a no brainer. He says the stock is extremely cheap with a market cap around 300 billion and could generate returns near 18 . Apple shares traded last at 472. This week the tech giant took the wraps off 2 new iphones. Walmart will sell the iphone 5s for 189 and the 5c for 79 dollars. Both are slightly less than the retail price. A Us Bankruptcy judge indicates that he is warming to amrs plan on how to exit bankruptcy. This comes at a time that the megamerger between American Airlines and us airways is being scrutinized by the department of justices antitrust regulator. At a Bankruptcy Court in manhattan, judge sean lane said he is inclined to support amrs plan despite those merger concerns. Gm rolled out new suvs to positive reviews. The new, larger and redesigned 2015 models include the tahoe and suburban. Along wtih the pricier yukon, yukon xl and yukon denali models. Gm says the new models are more fuel efficient and have a softer, more refined look. Suvs are a major moneymaker for gm. Sales are already up 22 percent this year dave thomas of cars. Dot come says the new models will also add to the automakers profits. No matter what people think of the look, these are really important models to gm. Theyre one of the few players in the fullsize suv market, so they need this upgrade. The improved mileage will help, and obviously the new look will definitely help. The suvs go on sale in the First Quarter of 2014. Thomas suspects prices will be in line with current models which start around 40 thousand dollars. An out of control fire has destroyed a section of the new jersey boardwalk. The six alarm fire spread rapidly thursday burning the boardwalk and taking down several business buildings. Usa today reports the fire started at a new jersey frozen custard shop in seaside park. Wild flames, pushed by strong winds also reached what was left of the fun town pier, where a roller coaster was whipped into the ocean during superstorm sandy. Two million dehumidifiers are being recalled due to fire hazards. The dehumidifiers, made by gree electronics, can overheat, smoke, and catch fire. 46 fires have been reported but no injuries. More information is available at the Consumer Product safety website. Investors are worried about a pair of retailers. Shares of lululemon sold off more than 5 after the upscale exercise Clothing Company lowered its revenue outlook for the year. Investors are also concerned about the companies ongoing search for a ceo. Last may, the company known by its ticker lulu recalled unintentional seethrough yoga pants. And its not going well for the mens wearhouse. After firing george zimmer, its famous spokesman. Profits dropped 28 in the second quarter. The ceo doug ewert blamed the dip in what he called macro issues in apparel retailing. The stock dropped 12 thursday. If your thinking about going back to college to sharpen your skills or to get a different degree. Clare levison author of frugal isnt cheap suggests you keep your day job. I encourage working adults to talk to their employer and find out if the employer offers the Tuition Reimbursement program. Many of them do. In addition, look online, seek out Scholarship Options there are many of them out there. Be sure to fill out that federal application for student aid and see if you qualify for any of those Student Loans as well. Affordability and convenience are the biggest obstacles in heading back to college. Levison adds that older adults face different financial challenges than younger students as families, jobs, and general life get in the way but she warns never give up the dream. The Financial Industry Regulatory Authority or better known as finra is out its list of top 5 scams to avoid. Starting with overseas emails promising money. Followed by socalled free lunches with a product pitch, fake lottery winnings, penny stocks. And cold calls. According to finra 8 in 10 americans have received a potentially fraudulent offer. Still to come do desperate times call for Desperate Measures . In todays traders unplugged the retailer thats already for christmas. Plus the financial values young adults could learn or unlearn by moving back in with parents. And stick around to find out which universities have the best pay off for students. Join us after the break. This should give parents pause. Last year nearly 22 million young people in their 20s moved back in with their parents. A record. Its the recession of course, its also the result of an economy in transition moving from manufacturing to it. This creates a new dynamic with new rules for parents and their live in adult children. Steven esposito is a Financial Advisor and Senior Vice President at morgan stanley. You just told me that you have people walk into your office who are Senior Citizens with their middle aged kids also moving back in. Absolutely. Its dramatically changing the face of Retirement Planning. Because what happens now is you have to add a new dynamic to a Retirement Plan when someoneis looking for income where now suddenly a retiree is finding out that they need to take a portion of their income and move it toward a 45 or 50 year old child. Thats a hardship. What about the parents who are middle aged and have the college millenial kids moving back in . What kind of planning advice do you give them . We make sure that they do not hurt themselves financially when they do that. The statistics show that 26 of parents are actually taking on debt to accept that child and thats not a good idea when youre in your 40s and 50s and obviously a lot older. Its not something you want to do. So, you dont want to hurt your financial situation in order to take care of them. You also want to set some ground rules with the kids when they come in to make sure they understand that this is a temporary situation. We have an exit strategy and were going to help you and teach you how to get where you want to go. You dont want them to think this is the time where i can simply freeload off mom and dad and take it easy and sit back. They need to maintain a discipline and Mutual Respect within the household. Do parents know what to do to encourage them to start thinking about living on their own . How to save better maybe . Theyve got some tenure so to speak so its important the parents teach the kids what they learned as young people growing up. It always hasnt been easy for everybody as a young person growing up so they need to pass on that wisdom to their kids and sit down and develop a plan. Sit down and say heres where we wanna be in a year or two years. Heres your goal. You may wanna help them pay off their Student Loans meaning as they work to save, they cant be using that money to spend on a good time. They need to be responsible and pay down Student Loans or save for a home, or really get a plan where they can monitor each month how are we progressing . Where are we going . And are we achieving our financial goals. So really mentor them in many ways. Steven esposito from morgan stanley, thanks so much. Thank you. Bill on the opposite side of the coinsome young people are starting careers with super salaries because of the schools they attended. According to cnn money the United States Naval Academy tops the list with grads earning 77 thousand dollars on average right out of college. Harvey mudd college makes the grade at 73 thousand dollars. Followed by California Institute of technology at 68 thousand. Mit, stanford, princeton and harvard are also on the list. Coming up. Is older and wiser, better . Traders reveal their stratgies in in stogey stocks this weeks traders unplugged. And later. Options for protecting your portfolio in chart talk. First business is ready to unleash traders unplugged this morning. From the floor of cme group. Alan knuckman and James Ramelli are standing by. Topic number one old timers ibm and time warner are moving their retirees to the new healthcare exchanges. Are these mature stocks a buy . Alan youre asking me to pick the best dinosaur. Looking at ibm thats more of an investment time warner has doubled from 60 to 120that was pulled back a little bit. Were sitting around 110. My target on thats 134. So i still have some more upside in time warner. But i like the healthcare stocks actually better. Theyve got huge momentum if you look at cigna or wellpoint or aetnatheyve gone straight up. James i actually completely agree with alan here. Ibm is facing some challengessome fundamental changes in their business. I like the space that time warners in a lot. Stocks like time warner and comcast have done well this year. Gotten a little bit of a pullback here and look relatively cheap. I would like to play time warner to the long side. Angie topic number 2oranges are extremely expensive in jakarta and thats because of the lack of infrastructure. So the oranges have to come all the way from china. Were talking here about underdevelopment. Which emerging markets would you buy . James well, i dont trade orange juice but i do trade the eem which is the emerging markets etf. This one we got a huge discount and now they kind of flipped the script. Institutional order flow has been incredibly bullish over the past couple of weeks. Weve seen a huge lot of 140 thousand d. 38 calls bought. So theyre applying some serious strength and potential upside in the eem through december. Alan are you a buyer . James i am a buyer of eem. Alan theres a real strong support base at this low at 36. Its a 5 year low support. So they got overdone on the upside. These emerging markets got beat down when people wanted to exitbut i think its a good value. We could see a nice little kickkick from these levels a 20 move up to 44 in the eem i think. Angie topic number three christmas ads already, kmart is advertising for that holly jolly time. Is this an act of desperation . Alan its a little bit premature but sears has to do something. This stock for whatever reason has bounced 45 in the last couple of weeks. I am not a believer in this stock move. James i dont necessarily believe in the move but i do believe that i can play with that momentumto the upside and make some money here. I would not like sears as a long Term Investment but as a momentum trader, there is an opportunity for me to make some money as we continue higher. Alan the stock i like better in this space is jcpenney. From a limited risk standpoint weve got these real extreme lows at 12; were Holding Around 14. Theres serious money in that space. Both of those stocks are dogs but i guess people have to shop somewhere in some parts of the country. Angie heres your bonus round questionhey big trender which stocks have soared to record highs this week . Facebook, netflix, walgreens, starbucks, united technology, or mastercard . Alan im gonna sit this out because i won last week. Why dont you answer . James facebook, netflixthe answers probably all of the above. Alan yes, its all of them. Angie its all of the above. Alan but i won last week. I won two weeks in a row. Angie there you go. Double win. Thanks guys First Business continues right after this. Joining us now for chart talk is tim biggam of trading block. Hes on the defense for us this morning. Good morning tim. Good morning angie. For people who want to protect their portfolios, what is the best defense in playing the market . Looking at the vix or the vxx which you can buy outright like a stock. Trading really at all time lows here. Its a way to kind of have some Downside Protection as the market sells off vxx tends to go higher so adding a little of that in here i think is not a bad play given stocks are within shouting distance of those all time highs and the concerns that weve seen in the past are still out there. Are the defensive stocks as well . Absolutely. I think the Utilities Sector certainly is a classic defensive play and given the bump up weve seen in rates this these utility stocks have been hit pretty hard here. So looking at names like american luxury power, duke energyyielding somewhere 44 1 2 . Given the fact that they are actually down this year across the board i think those are names id look at as well. Would you go big on those stocks . Never go big on anything. As you know angiea gradual approach and make sure you have a portfolio approach. Its how i like to do it. Thank you tim. You bet angie. Its time for us to close up shop for now. Coming next week how to handle inheritance. Financial tips meant to save you from blowing through a wad of hard earned money. From all of us at First Business. Thanks for watching. Have a great 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 compel
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