Dropped to the 99 dollar per barrel range. Netflix stunned wall street with its Earnings Report after the close. The stock surged 10 on numbers that topped expecations netflix also offered an optimistic view for its holidays numbers. Mostly due to the success of streaming tv shows such as breaking bad. And, jc penney and Martha Stewart define a deal. Following a lawsuit claiming Stewarts Company was wrong to sell certain merchandise at macys and jcp. The revised agreement covers a more focused line of items sold at penney including window treatments. Daniel stecich of Tjm Institutional Services joins us on this tuesday morning. Good morning daniel. Good morning angie. Glad to be here. Whats likely to happen with stocks and jobs today . Well, thats the big thing. One drives the other, and its not stocks driving jobs right now. We have to see what this jobless report comes in and were looking for 180 with an Unemployment Rate of 7. 3 . Actually, i think its kind of a winwin here unless we have a drastically bad number. If we get a good number its gonna continue on to the rally weve seen because that means the economy has grown a little better. If you start seeing sub 150 or sub 125, i think the market takes a little bit of a pause. Well see a pull back. I dont think it will be long lived and maybe an opportunity to buy some more stocks at those lower levels. Oil is trading below 100. Whats behind that move . Again, its the same thing thats always been there. Theres been a ton of supply of oil. Demand is flat to probably a little bit down. And even with the economy recovering, the u. S. Seems to have stabilized in its energy usethe rest of the world a little more so. But theres plenty to be thereor plenty around for us so its going to eventually fall into the supplydemand equation and come off, which is what were seeing. Whats your reaction to netflix numbers . Wow, what a surprise. I was looking at netflix yesterday thinkingman do i wanna buy a put on this stuff. And i was ready to go in and mess with it but my computer wasnt working properly and thankfully it wasnt because what a jump after the close. Thank you very much daniel. Im happy to hear about that computer glitch. Me too. Thank you. Apple hasnt revealed much about todays event in san francisco, but it has said it has a lot to cover. The company is expected to take the wraps off a new lineup of ipads. Apple watchers are expecting the devices to adopt noteable features of the latest generation of iphones. Including touch id, a faster processing chip, and possibly even an option to buy the ipad in gold. Trader James Ramelli of keene on the market dot says he sees potential in the stock, even though it typically sells off on the news. Typically, apple tends to run up into an event and then sell off on the news. I think that one of the biggest things on the horizon here is earnings. Now, theyre implying a move of 31 in the stock by november 1st which is the closest expiration that still has that earnings catalyst in it, so i think apple could head as high as about 30, 32 from its current levels. Ramelli does not expect the highly anticipated apple tv to roll out today. Apple shares have been on the rise. It closed yesterday at 522 dollars. Nokia is also in a rush to release new products ahead of the holidays. Rumors suggest nokia will take the wraps off smartphones with larger screens and a tablet based on winddows rt. This could be the last major release before microsoft takes over. Nokia shareholders will vote in less than a month on microsofts offer to buy its device and services business. Facebook ceo, Mark Zuckerberg makes his first known investment in a startup. Called panorama, the company says it is the only entity that uses specific Data Analytics to improve k through 12 education. The Company Recently said it had raised 4 milllion dollars in seed funding. Meanwhile, facebook might need some analytics of its own the website wasnt accepting status updates or comments for part of the day yesterday. President obama is angry about breakdowns on the new Health Insurance website. But adds some of the glitches were caused by some 20 million americans jumping on line to grab at the chance to buy low cost Health Insurance. From the white house rose garden monday president obama offered no fully admited the Governments Health care website set up for people who want to shop for Health Care Insurance is not working well. But says the website issues should not be the only focus. Let me remind you the Affordable Care act is not just a website. Its much more. The president notes the act adds new benefits for people on medicare and medicaid, offers free mamagrams and Birth Control to woman, gives coverage to people with preexisting conditions and allows students to remain on thier Parents Health coverage unitl the age of 26. I have the priveledgto say i am the first person in the state of delaware to enroll for Health Insurance through the new marketplace. Woo,hoo Small Business owner janice baker says she too was frustrated when she went online to shop for insurance but eventually she successfully applied for insurance through the site and will save 150 per month on health coverage. For now tech watchers have a fairly good idea of how healthcare. Gov. Can be healed. Ive spoken to a number of sources here in Silicon Valley and they fear healthcare. Gov is not running on modern Cloud Technology at all. Because this is the kind of tech that is able to handle huge spikes in traffic. According to the hill. Com, House Speaker john boener and other republicans are demanding that health and Human Services secretary Kathleen Sebelius and others connected to the botched website rollout testify before congress. That testimony could happen early next week. The goverment shutdown and fiscal debates in congress have more americans fearing the country will plunge back into recession. As a resultmore americans are holding back on Charitable Giving this year. According to report by the chronicle of philanthropy donations are expected to increase by 1 this year. Compared to a 4 rise in 2012. Just driving off with the goods is quickly becoming the most common way to steal freight. According to the ap, thieves are posing as truckers and using tractor trailers and information gleaned from the internet to drive off with millions of dollars worth of merchandise. One example cited was 25 thousand pounds of king crab, valued at 400thousand that was stolen recently in california. Food and beverage is often targeted because it is difficult to trace. Last year alone 12hundred cargo thefts were reported nationwide but it is believed many thefts go unreported. In todays cover story, Jp Morgan Chase and the Justice Department are reportedly close to a 13billion dollar deal to end probes into the banks mortgage bond sales business. The amount would be the most ever paid by a single Financial Firm in a settlement with uncle sam. 13billion dollars, obviously is a lot of money. In fact, only 7 firms in the Dow Jones Industrial average earned that much last year. 9 billion would qualify as fines for selling bad Mortgage Loans to investors while an additional 4 billion will count as mortgage relief to homeowners. Settlements like this one rumored to happen with chase hold banks accountable for underwritring practices and their promises to investors when they securitize their loans the rumored deal, then, represents stricter rules now in effect over the banking and mortgage industries. Theres definitely a new era of regulation right now but even at 13 billion, things could be a lot worse for the big bank. The government could be forcing jpm to repurchase 100 billion in mortgages that they will now not have to repurchase. Were they to do that, the bank would be looking at 50 billion in losses. So in fact, the 13 billion is 25 cents on the dollar of what theyd be looking at in the absence of this settlement. In that respect it is more a bailout than a fine importantly, the rumored settlement with the doj will still leave jpm open to both criminal charges related to the investigation, and any number of private civil suits. This has huge potential for additional losses. You have private litigants who purchased mbs from jpm who are looking into suing jpm chase. This case marks the latest blotch on jpmorgan chases growing rap sheet. In the past 3 years, the bank has already settled 13 cases with us and uk regulators paying fines in excess of 9 billion dollars. Starbucks is getting heat from staterun media in china because of its prices. A new report cites the cost of a Starbucks Coffee mug that is made in china sells for between 10 and 14 in the us and for 18 in china. Prices for the chains coffee drinks are also reported to be considerably higher. Starbucks tells reuters that its Pricing Strategy in china is tied to local business costs and that it would be inaccurate to compare markets. Officials in japan are behind schedule on the massive cleanup of towns ravaged by the 2011 tsunami triggered nuclear disaster. Originally a march 2014 deadline had been set. But japan now hopes to complete the radiation cleanup by 2017. No residents have been allowed to permanently return to 11 municipalities affected by the meltdown of the fukishima power plant. Officials say cleanup is taking longer due to a lack of space for the waste material. A budget battle has ignited in italy. The countrys three major unions are preparing for strikes this week. Workers are protesting the 2014 budget which includes austerity measures. They argue it does little to reform the countrys sluggish economy. Meanwhile italys Main Business lobby argues the cuts in the budget are not enough to promote growth. Unions will hold half day strikes until mid november. Tough times at mcdonalds. In its Third Quarter earnings, mcdonalds reported its fourth straight quarter of slow sales. The company missed on revenue and said it expects sales to be flat in october. International business also dropped. Customers did respond to new menu items such as oatmeal, wraps and lattes. But the chain is selling fewer standard menu items. Mcdonalds stock dipped 6 tenths of a percent in trading yesterday. Hasbro is having serious fun with profits. The toy makers shares jumped 5 yesterday after it reported a Third Quarter profits of 1. 31 per share. That beat the streets expectation by a cent. The company has a positive outlook for the holiday season, says demand is strong overseas and toys for girls are selling especially well. Chinas Baidu Incorporated will introduce a new Financial Services platform as it attempts to give rival alibaba some competition. The web giant is looking to connect its millions of users with affordable investment opportunities. Just how affordable . Investors can actually put as little as 1 yuan to work equal to about 16 cents. Still, conservative chinese regulators may have something to say about the product Financial Services has typically been dominated by staterun banks. Hedge funds and Brokerage Firms are heading to the hamptons. The wall street journal reports people who normally work on wall street are popping up on a regular basis in the resort beach towns of long island. The paper reports there are 33 Investments Advisors and broker dealers registered with the sec near townsin the hamptons. Still to come stock shock. A trader fills us in on Company Shares hes watching this week. Plus. High standards. Why it could be harder to get a home starting next year. And next. Predicitions on the sectors that could be upwardly bound. First business continues right after this. The stock market is on an impressive run this year. And that run may not be over for a number of stocks. Here to do some stock picking with us this morning is john blank of zacks. Com. Lets get down to it. You see potential in hotels motelsstarting with marriott. The Marriott Vacations is a stock i like, ticker vac. These are the people that give you timeshares and the sweetspots out there. Were seeing a huge pickup in earnings in this stock. But youre also watching asia as well. Right. Sands china. Which is the ticker schyy. The casinos in macao and around hong kong are driving all of the earnings for all of las vegas now. So true. So you need a way to get there so youre also picking the Airline Stocks. Right. The Airline Stocks a zacks number of 92 out of the 265. The motels and hotels are 19. So its not quite as good as the hotels and motels but its pretty close. The stocks i like are Spirit Airlines and republic airlines. So i like the smaller size airlines that are in the niches that are growing. Spirit is based in ft. Lauderdale. They have a lot of latin american business. They do a lot of the smaller vacation things to the marriott type areas. Youre seeing that growth and thats what were looking for right now is discretionary spendingconsumption they call itbut its really discretionary spending. And you back that up by picking brunswick as well. This is a boating company. They do really nicely and they actually were upgraded not too long ago. Correct. Theyve been a very strongly ranked zacks ranked number one stock for many months. They also have Fitness Centers and bowling alleys. Leisureagain if youre gonna go to the marriott, get in a plane. If you cant do it youre gonna go to something that brunswick has for you. And then you need something to wear. Is that why you picked Black Diamond . Black diamond is a little different. Black diamond is outdoor stuff. Its the whole rei, go outside on your weekend which has really become huge business in the united states. And Black Diamond actually was a spinoff of patagonia. So they are a smaller stock. They dont get as much coverage. Its a cheaper stock too and theyve been on a tear this year. Also on your list you have yelp, zillow, and yandex which is a popular Search Engine company out of russia. Is it the google version . Its not the google version. You gotta remember sergey brin, who founded google was a russian emigre. So this is going back to the source of that. Yandex is a great stock. It is the Search Engine of russia and you gotta remember the russian language gives you a barrier. People tell me that the yandex Search Enginethe Actual Technology of the Search Engine is better than google. Its more efficient than google, it can find more stuff than google, its faster than google. I dont know this but im told this. And they are growingthey are a billion Dollar Company now. Theyre growing 500 Million Dollars a year50 growth. So this company can go a long ways. Its a 40 stock today. We know googles almost 1000. So go figure with 250300 million russian speaking people whether this is the competitor to google. I dont know. Good to have you here. Come back soon. Thank you. Coming up. Why homebuyers are rushing to seal deals before the start of the new year. And later on. Is time to buy or sell the duds of the dow. Well be right back. Hey did you know that changes in Mortgage Loans are coming in 2014 big changes. In fact big enough, that some home shoppers are buying early to be absolutely sure their deal closes before the first of january. Amiel stuerman is president of a Company Called cypress mortgage. We already know that the regulations to get a loan are already pretty strict. Is this the next stage of just tightening the screws a little bit more . It really is bill. What youre seeing with this new law thats coming out effective in january, so coming up real soon, is that first of all there needs to be an ability to repay the loan and theres gonna be a lot of scrutiny on the lenders to make sure that only giving loans to people who have proven. So people actually have to prove that they have the capacity to pay the loan back. Thats right. It means a little bit more paperwork for the borrower. A little more procedure and paperwork for the lenders. And theres also a difference in the array of products that are gonna be available to borrowers. So those jumbo loans that are available when you want to get a mortgage over 417,000theyre still gonna be there but theres more rules that are gonna make it a little tougher to qualify for those mortgages. Another important aspect of the new laws coming out are that now the selfemployed borrower is going to have to jump through some more hoops to qualify for the mortgage because the level of paperwork to prove what your income is is at a level that no one has ever seen before. So you gotta be prepared for that. You gotta have all those pay stubs in order but what else do you have to do to demonstrate capacity . Thats a good question. There is a big difference between somebody thats a w2 employee vs. Selfemployed. If youre selfemployed you have to show 2 years of selfemployment history. You also have to show income on the tax returns for the last 2 years. So, let me give you a quick exampleif somebody in 2011 made 50,000 and in 2012 they made 100,000 what the lenders going to do is take an average of the two and the qualifying income is going to be 75,000. Not that 100,000. So thats an important thing for self employed borrowers to keep in mind. So for the jumbo loan, this is affecting 1015 of the people coming in for loans typically . Yeah, its about 13 or so of the market thats out there are jumbo loans. Those are loan amounts that certainly in illinois are that are over 417. Nationwide a conforming loan before it becomes a jumbo can go up to 729,750 to be exact but thats only in certain counties. Amiel stuerman, you know your stuff. Thank you very much. Thank you. Thanks for that update bill still to come stocks to buy and stocks to sell are coming up in chart after that break. We have more stock picking now with matt shapiro, president of mws capital. Hes watching the charts for us this morning. What do you think about the moves in stocks such as mcdonalds . Yesterday mcdonalds had pretty glum and disappointing earnings. Theyve made some missteps really where they have tried to be too nice. And we need the big bad mcdonalds of old selling those supersize kind of things. Theyve allowed competitors to do the same, while theyre selling saladswhich actually no one really wants. This is my lesson actually for today is sometimes these dow duds, these dow dogs which mcdonalds is one of them with a 3. 4 dividend yieldset you up for some big gains for next year. What else would you buy or sell . Talk about the dogs but how about the phenom stocks. Right now im trying to evaluate strategy going into the close of the year and for 2014. Some of the phenom stocks i really congratulate how well theyve done. But weve seen yesterday, profit taking in tesla, face book and the like. Some of these valuations are just too big and theres a lot that these companies have to create to continue the momentum. So i think toward the end of the year, we may have a little bit of an evening out. Ibm is another stock that youve been watching. What do you think about ibm at current levels . I like it at 175. I thought they would have a better Earnings Report than they did. Obviously it fell absolutely flat. Six straight declining quarters of revenue. Its a big ship to turn around but we could see some activist investors get in thereceo on the hot seatand eventually they will get it right because it is a very profitable company. And this is when you have to stay in these kinds of companies. Matt, thank you for your time today. You got it. Coming up tomorrow reaction to the belated jobs number and an update on retailers that are shopping for good hires this holiday season. 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