Transcripts For KICU First Business 20131227 : vimarsana.com

KICU First Business December 27, 2013

Retail sector. The dow gained 122 points, breaking a new record high. The nasdaq gained 12 and the s p also pushed its way up to a record at 1842. Gold gained 8 dollars, oil up 40 cents. A sinking feeling among investors of the empire state building. Theyve filed a lawsuit accusing a Real Estate Team of ignoring cash offers worth billions to enrich themselves in an ipo, instead. President obama signs a bipartisan budget deal while vacationing in hawaii. It eases military cuts under the sequester, but pares down pension increases. It also combats Sexual Assault among troops. And gasbuddydotcom predicts gas prices will be temperate in 2014 but may spike to just below fourdollars a gallon by spring lets get our day started with Ben Lichtenstein of traders audio good morning ben good morning. New record highs in the market yesterday. Whats all the fuss about . Well, higher highs and higher lows for the most part. I think its just a continuation of the pattern that we have been seeing in this holiday market. Its been kind of a thin trade but you have to give it to the bulls. Again, conviction to the upside. Basically zero in terms of any real pullback and zero in terms of any real rejection. We saw the jobless claims come in a little bit lower than expected but for the most part that wasnt the real catalyst. We saw some divergent type activity developing throughout the day. The nasdaq just didnt want to partcipate. The russell spent most of the day in range. The russell wasnt exhibiting the type of energy yesterday that we saw in the major markets. But for the most part, its just this continuation of the pattern. Its this euphoric type pattern that we have been seeing. The market recently went into vertical development which is the phase where it seeks value. In this case its vertical to the upside so right now this market is seeking value to the upside and will continue to go higher until the perception of value has changed. Right now the perception of value is higher. The ony reason to short this market is if you dont like money. Give us your take on this weeks drop in the jobless claims. It was the biggest weekly drop in more than a year. I think potentially seasonali just heard somebody talk about it after that most recent surprising gdp number. A couple of really positive Economic Indicators that weve seen over the last week or so but we need to see some repetious type activity. One blip on the screen isnt necessarily gonna be some major groundshaking type event. This marketit wasnt due to jobless that we saw the higher highs today for the most part. For the most part, the initial reaction at 730 yesterday was that we saw those limited reaction to the jobless data released yesterday. For the most part, this market is just a continuation of that pattern that weve been seeing. The trend is higher right now. I think that anybody that doesnt see that on the screen should probably not be trading. Ben lichtenstein, thank you so much. My pleasure, thank you. Diane moca joins us now with a look at how an increase in holiday shipments actually hurt ups. Chuck. In todays cover story. Ups is fielding a slew of complaints from customers who say the shipping giant delivered empty promises instead of gifts. Falling short of Consumer Expectations at the same time they were exceeding their own projections for volume. Its crazy. We cant even sit down for lunch. Despite ups employees working long hours this month. The Parcel Service wasnt able to prevent delays in shipments that were supposed to arrive by christmas. It was said that you have to tell someone, i ordered your christmas present, but its not here. Thats what Brooke Bucher told her grandma. Arriving empty handed more than a week after ordering online. Experts say bad weather. A shortened shopping season. And ambitious delivery guarantees created a perfect storm. A lot of consumers were waiting for deals and that allowed them to procrastinate and wait til the last minute. Ups spokeswoman nataline godwin says the company. Expected an 8 percent increase over their average daily delivery of 16 million packages. But the volume of air packages exceeded the capacity of the network. They get their money back if it was some problem that was a ups problem other than weather. The company decided not to send out trucks on december 25th. Eliciting both criticism and support on the ups facebook page. Federal express and amazondotcoms pages were also littered with complaints about christmas deliveries not arriving as scheduled. Fed ex says we experienced no Major Service disruptions in the week before christmas despite heavy volume. We will. Address any isolated incidents. Amazondotcom says it processed and tendered customer orders to delivery carriers on time for holiday delivery. I would suspect next year we would see fewer guarantees from retailers or perhaps looser guarantees. Does it make you hesitant to order online in the future, especially around the holidays . No, because i find the best prices online a lot of times. The ups spokeswoman says the company made every effort to deliver delayed packages the day after christmas. Stock prices for ups. Federal express. And amazondotcom were all up slightly. During a day of low volume. Ups isnt the only one with a holiday hangover. A surge in post Holiday Shopping has commenced even as the Christmas Season comes to a close. Big discounts and sales continue today at Retail Stores around the nation, and online. Walmart is offering 25 to 50 discounts, target is cutting prices by 40 to 50 and amazon is slashing prices by up to 60 . Usa today reports retailers are hoping for a big bump after the holidays. Mastercard is already reporting that consumers spent more this christmas than last year, as retailers pulled out all the stops with discounts and promotions. A former blackberry cofounder is dropping out. And cashing in. Cofounder Michael Lazaridis scrapped his plan to buy the company and take it private with another executive. He sold 26 million worth of shares. It brings his stake below five percent. It comes one week after the struggling smartphone maker posted a huge quarterly loss. Blackberry shares open today, up 2 . It may be a softbank landing for tmobile. The tokyobased bank is in talks to purchase wireless carrier tmobile from Deutche Telekom in a deal valued at 20billion dollars. It comes less than six months after the federal Communications Commission approved softbanks aquisition of another carrier sprint. If finalized, the combination would create the worlds secondlargest mobile carrier, by revenue. But the Justice Dpartment has indicated that it intends to scrutinize any consolidatation bids. And the fcc denied atandts application for tmobile, two years ago. Tmobile shares were up 2 percent on thursday. Start ups are surging in japan. Hundreds of entrepreneurs are launching internet and Tech Companies in the eastern nation. The country has lagged in its contributions to the world of tech, as other countries such as south korea and china have sprung ahead. Now, with help from japanese universities, more energy is being poured into helping launch smaller ventures. The New York Times reports the japanese Prime Minister shinzo abe has created an optimistic tone in the economy, and a rise in interest from investors. Chinas top Economic Planning Group says chinas growth is slowing. According to the state run news agency, Chinas National Development and Reform Commission forecasts that Economic Growth for 2013 will finish at sevenpointsix percent. Thats a tenth of a percent less than last years growth. Higher labor and environmental costs pose challenges for business, according to the commission. Chinas new president is trying to restructure chinas economy to be driven by consumption and services, rather than exports and investment. A nationwide strike in cambodia is snagging production in the garment industry. Workers also want to oust Prime Minister hun sen. They say he won his election through voterigging and has boycotted parliament for more than five months. Workers are protesting the governments decision to raise the industrys minimum wage by 19 percent to 95 a month, starting in april. It falls far short of Union Demands for 160 a month. Garment workers salaries are currently equal to wages 13 years ago, after adjusting for inflation. Back in the u. S. More than 335thousand American Express customers may see refunds to their accounts if they havent received them, already. The Consumer Financial Protection Bureau has ordered the company to refund 60million dollars to customers for what it calls illegal credit card practices. The federal agency says American Express charged customers for Identity Protection but didnt provide the benefit unless customers also provided written consent. The agency says 85 of customers were unaware of the additional requirement but had been billed for the service. Wall street is extending its hospitality to the Hotel Industry with an increasing number of ipos. Among them, Blackstone Group is planning to spin off laquinta hotels. Details have not been announced. Two other blackstone backed Hotel Companies recently went public with positive results. Earlier in the month Hilton Worldwide went public in a 2. 3 billion dollar ipo the Biggest Hotel ipo ever. And extended stay hotels raised 565 million in its ipo last month. 2014 could be the year for Home Building stocks. Traders are watching momentum building in the housing sector. 20 of the Industry Groups 26 stocks made gains in the market this week, thanks to continued positive data. Dr horton, lennar, and standard pacific are all trading higher. As tri point homes, and Toll Brothers are already reporting strong sales growth for the year ahead. Mcdonalds employee website is making headlines again. The chain is currently fixing its worker site mcresource line after it received a wave of crticism for telling employees to avoid fast food due to possible health problems. Mcdonalds says the advice was taken out of context, and that a Third Party Vendor supplied the content. It says it instructed the vendor to take down the site. In july, the chain was criticized for being out of touch with employees needs when another employee guide offered advice on how to budget life while earning minimum wage. Floridas is facing a squeeze in its orange crop. Oranges in the state are at the lowest production rate in over two years due to an insect infestation that causes fruit to shrink. It may also cause prices of orange juice to pop. Orange juice futures are expected to increase by 18 to a dollarsixtyfour a pound by the end of june. Thats up from a dollarthirtynine per pound now, according to bloomberg news. More fans of bubbly are cheering cheaper options. Global sales of champagne are down for the second year in a row. Sales are expected to fizz out by three to four percent this year, after a 4 percent drop last year. However, other bubbly options like prosecco or sparkling wine are on the rise. Still to come on the show. Trader insights following a headline grabbing move in the treasury. Plus. The stocks that are turning heads on wall street. Is it time to buy or stear clear . But first. Our next guest gives us some creative ways to give back as years end is fast approaching. Stay with us the end of the year is always a good time to give back. Philanthropic consultant lisa dietlin joins us. Lisa, welcome. Hello. Happy holidays. Happy holidays to you too. Its a couple days after christmas and what can we do to continue the giving spirit . Its fairly important to keep giving back. Yesterday or the day before we probably received a lot of gifts. Yesterday was boxing day and great britain, australia, and canada where they actually box up their gently used clothing and toys and give them to nonprofit organizations. One of my friends in california, she an her daughter, decided to declutter her room in anticipation of the holidays and actually called the Domestic Violence shelter who said we have these women with children and they dont have enough toys, could you box those up . And so they did an amazing job giving back. Good ideas. How do we make sure the Charitable Organization were giving to receives them before the end of the year . We have to get them in before december 31st at 11 59 pm. Thats just before midnight. So when youre making a donation via a cashiers check or money order, its actually the postmark on the envelope that has to bedoesnt matter what check saysit has to be the postmark on the envelope. So, you want to make sure its mailed in time. If youre giving by credit card or stock donation, you probably want to do that in the next couple of days to make sure that transaction gets processed before 11 59 on december 31st. We always think about Charitable Giving especially at the end of the year but a lot of organizations need our help throughout the year. How do we give them a leg up in 2014 and get the ball rolling so they have a better idea of what resources they mayhave to work with in 2014. I think we have to make a planyou are absolutely correct. 80 of nonprofit organizations receive 50 of their budget in the last 2 months of the year. So they are holding their breath all year long hoping it happens. We as donors can help them by making a plan. Ive got this new acronym called lets rave about philanthropy. Lets review what we did last year. Lets assess where we want to go this year. Perhaps someone in our family developed an illness that we want to start supporting. Lets valuelets put a monetary value to that. And lets explore giving throughout the whole year. Lisa dietlin here for rave reviews, thank you so much for your help. Happy holidays. Happy new year coming up. Room to run. The stocks that the guys think are going to be winners again in 2014. Thats next in traders unplugged. And later on in chart talk. How long will this santa claus rally last . Well be right back. If yourclosely to the ten voices of meningitis. It was a tuesday. Becky said she didnt feel well. On wednesday, we said our final goodbyes. I was there when my son took his first breath. And i was there when he took his last. Not everyone who gets meningitis. Dies. I wasnt sure shed make it. The infection spread so fast. We learned about the vaccine after he got sick. We are the voices of meningitis. overlapping voices join School Nurses and families nationwide by adding your voice. Meningococcal meningitis may be rare, but its often devastating. You can help prevent it. Get vaccinated. Health officials recommend vaccination for preteens and teens. Talk to your Childs School nurse or healthcare provider, and visit voicesofmeningitis. Org to learn more. Traders unplugged is back in action on this friday. Alan knuckman and Scott Shellady join us from the trading floor. Good morning guys good morning. Lets get right into our first topic. The 10 year treasury note hit 3 . What does that mean for the stock market . Alan nothing. Absolutely nothing. Its a sign of optimism. It means, if we close above 3 , were going to 3. 5 because weve gone from 2. 5 up to 3, so a half point move to the upside. Good things are happening in this world my friend. Scott hes a fundamentalist and he does actually believe that economy is doing a lot better. The 10 year has slowly but surely moved up and thats a good sign of steady and stable progress, however, when we do get to that 3 level there will be automatic selling of stocks. I think that ultimately you will see that 10 year go back to 2. 7 because we dont have the solid footing that i think the rest of the world thinks were on. Alan you gotta believe please just believe. Scott thats called hope and we dont do that in trading. Chuck lets talk about some other areas that are doing pretty well. There are 10 s p stocks that are up 100 for the past year. Which of them are still a good buy . Scott im gonna go with netflix. Even though thats been up 300 the last year, i think theyve got some market changing technology. Theyre now dialing up shows that you have on demand rather than the ones we see on the networks. Alan so you watch tv . Scott i dont watch tv but i know what my daughter does and i know what all of her friends do and its the way of the future. They dial up things. They dont like watching it live. Alan my stock is boston scientific. The stock stairsteppedit went from 6 to 8 to 10so now its going to 14. Its medical devices so with an aging population thats gonna be helpful to people in the future. Look for a 2 move rather quickly. Chuck moving on to topic number 3. General motors used to be called government motors. They paid back a lot of that money but still 10 billion dollars outstanding. Should it make good on the rest of it . Alan no, they dont have to. Thats the deal they made. They actually paid it off early. Im from michigan. It was very helpful and thats part of the reason that the stock market has come back because people have a little confidence that the right thing was doneand this is america. Scott hes from detroit thats why he thinks its the right thing to do. I dont know if the general u. S. Population believes that the government knows what to do with our money better than we know what to do with our money. Clearly, they know what to do with our money better than we do because theyve given it to a company that doesnt feel

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