What about unrest in iraq . Investors are slugging that off. The nasdaq closed at a 14year high. Here are the numbers. The dow added 25 points and closing in on this psychologically important 17,000 level. The nasdaq was up nearly nine while the a and p scratched out a threepoint gain. For the week, all three indexes rose at least one percent. The s p the leader up 1. 4 and with summer about to begin, Morgan Brenham tells us some stocks sizzle more than others when the weather heats up. Reporter sell in may and go away, a wall street saying penalty to avoid equities but there is a number of stocks that actually do better in the summer, posting on average double digit gains from labor day to memorial day and have been doing so. Apple traded higher each of the last five summers, garnering a 15 return. Investors tend to pile in ahead of the stock before september when apple makes product announcements. This is likely to be a summer thats an apple kind of summer in that they have a new cell phone coming out, the new iphone will have a larger screen for baby boomers and people that like an easier read on the smart phone. Reporter this summers peak vacation season, travel and Leisure Companies perform well. Online travel sites like price line and expedia tick pickly pull in 14 returns respectively and gaining stocks and some experts like amusement parks. Amusement stocks, we would think of six flags, an affordable luxury for families homebound. Reporter hot weather makes consumers thirsty that makes good for wine and beer makers constillation brands with a heavy 20 return and kerig Green Mountain averaged 17 but pay close attention to Energy Companies now that iraq sent oil prices higher. You tend to have the driving season, so demand for gasoline goes up and Energy Stocks tend to rise. So if youre looking for a seasonable bias trend, its definitely energy. Reporter but Energy Companies can be volatile. Its also important to always look at a companys fundamentals, despite historic patterns or the season and some experts have predicted a stock pull back, something to keep in mind if indexes continue to hit record highs. For nightly Business Report, im morgan brennan. Mike colin believes stocks in a bull market. Hes chairman of his company. Michael, janet yellen this week took an unusual step by saying she doesnt think stocks are over valued but valued for the economy right now. I take it you agree. I do, bill. Weve been in a bull market since the bottom five years ago. The Federal Reserve said they wanted to lift stocks and bond prices. They have done it. She said it again this week that this is the main portion of why i remain unconvinced the word due for a bare market, she said this week with the rest of the fed they will continue to support this market. I dont need to know a whole lot more than that. There are two other factors among the three that cause me to be this way. The second one is the negative psychology that began long before five years ago at the market bottom. People still dont like stocks, overall. There is sentiment surveys that are toppy right now but overall, people are still skeptical and scenical about stocks and then the last thing itself is the fed. If the fed stays where it is and we continue to have the evaluations where they are as janet yellen said, it i can weqe market in the bafuture. Inflation and policy on that issue, how can we be sure inflation is not going to be getting out of control . Where do you stand on that . Susie, its the right question because people i respect and there is some who have been more right than others over the years are saying they think that if we do get a significant correction in this bull market in the near future, it will be an inflation scare. We get the pce number next week, which is what the fed looks at. If thats higher than people suspect, they will immediately say oh, the fed is going to have to change its policy and tighten sooner therefore we should sell stocks. So its sometimes it gets pretty simple. This has been the easiest bull market of my long career and i dont think the inflation bogey is going to come out and actually do some damage in the near future because of the things that janet yellen said this week about why inflation is not her worry. For the most part, defensive stocks that have been leading this rally lately, you know, those stocks that dont expect much growth in the economy, those stocks that pay a pretty good dividend, you know, those stocks that people go to for slow but steady growth, is that where you are now or are you expecting stronger growth here . I dont expect stronger growth for all the reasons you report every day, bill, but i think that that way you described it, which is reasonly done well is the description of the overall economy in the u. S. And globally. Its slow grudging growth. Its not a goldie locks but well get 9 earnings growth, maybe 10 in the u. S. Not enough to make people pop champagne corks but enough to keep stocks under valued at 16 times next years earnings i. Want to squeeze in one more question, half a minute for it, iraq. At what point does the violence in iraq or developments there become a problem for u. S. Markets. What used to be referred to as the exaggerating factor. If we get this spiraling out of control which is possible, which is one reason i have cash. If it does happen, ill have some cash. That takes oil to 150, 200, 250 when craziness happens. All bets are off. People that stayed in this bull market, you should probably have cash in case Something Like that happens. Michael, good to see you. Thank you bill, thanks, susie. Mike said the situation in iraq could be an issue for the u. S. Markets. Iraqi forces gathered north of baghdad today preparing for a push back to cut off sni rebels from reaching the capitol. As a result, oil prices were relatively stable. Crude fell a fraction but west texas crude was up 3 4ths of a percent topping 107, the highest level since september. Michelle cabrera is in iraq and has more. Reporter islamic jihads may not be the biggest threat, it may be an oil refinery this is not the refinery in the news for the last three days because its under assault from the rebels. No, this facility is three hours away in the iraqi region of kurtistan. It makes crude oil into kerosene for cooking, gasoline and diesel. Its the push to create its own oil industry and stands in d defying of the government. Its a region of iraq and the people dreamed of having their own independently den country. They think they should be able to drill in the ground beneath them. Their plan to pump a Million Barrels of oil per day. With exxon, chevron that has exploration contracts. Baghdad says the moves are unconstitutional. Could they have supremecy. Whatever we do is legal and constitutional. Reporter they dont just have wells and refineries, they have built a new pipeline buried under ground because the Iraqi Government wont let them use the one across the boarder. It connects to turkey. When they loaded up the first tanker with one Million Barrels of crude, it was front page news here. The headline reads now kurtistan will have its own economy. In fact, at one point, there were three thaankers of kurtish oil until today. They were finally able to unload one tanker in israel. The minister says it wont be long for the other two because the world needs more oil. That will be sold and there is no legal dispute. We are determined to go down that road and that would be a new age in history of the kurtish people. Reporter experts will be a key step to kurtisstan independence but they are redrawing the map of iraq where kurtisstan stands alone. Back here starbucks is raising prices on some of the drinks by up to 20 cents. That starts next week. Company says the increase in its stores will hike the average customer tab less than 1 , but you can also expect to pay about a dollar more for packaged coffee they sell in supermarkets. The price hike is in response to a spike in coffee costs this year. Even though prices have come down a little this week, the futures are one of the top commodity gainers. Jane wells has more. Reporter coffee prices have been brewing up this year, and people have noticed. I was doing it five times a week but cut it down to three. Why is that . Saves money. Reporter they have come off a caffeine high. A drought in brazil maybe wasnt so bad. Brazil is the largest producer of the popular beans and fears of a reduced crop sent it up over 50 . They have fallen by more than half. The ceo of duncan brand said people overreacted to brazil, quote it wasnt as bad as everyone expected. Coffee futures went back up because they are harvesting in brazil. Time for the truth. There was rain that developed late in our spring, their fall and we thought that may have helped the crop and dryness but it turns out that rain was too little too late. Reporter higher prices are starting to trickle down to the consumer, even though starbucks locked in prices for coffee when they were lower, they are planning to raise prices for the first time in a year. On some beverages 5 to 20 cents and some packaged could be 8 more expensive. Coffee prices changing isnt affecting my consumption. Reporter is it enough to make people think twice . Need it. Gets me going every day . Whats the alternative . Reporter for some at the moment, apparently nothing. For nightly Business Report, jane wells, los angeles. By the way, on monday we told you about starbucks reimbursing College Tuition for some workers. After facing questions about the program from education experts, the company is now clarifying the statement on that and while we knew the juniors and seniors would be the ones receiving full reimbursement with under class men getting understapartial aid being born by university of arizona that has federal aid expected to cover much of the rest in many cases. Starbucks will reimburse for outofpocket expenses for upper classmen once students earn 21 college credits. Coming up on the program, this weeks market monitor has a group of stocks he thinks you should consider. He says they are under valued, unloved but goodbyes now. Shares of oracle were hit today following the earnings and revenue miss the last night. At the close today, shares were down 4 to 40. 82. Some of the problem is attrib e attributed to the Company Moving into cloud computincomputing. Josh lipton has more on the cloudy transition. All the different pieces built on top of modern technology. Reporter oracle has been talking about migrating to the cloud for a few years, but now the Software Giant has hit a patch of turbulence. The Company Reported earnings and revenue that missed expectations and closely watched met trick. Revenue on Software Licenses also disappointed analysts. Despite todays fall in the stock, oracle shares are still up about 20 over the past 12 months. Companies around the world use Oracle Software to manage businesses. Larry ellis son is pushing a rapid migration to the cloud where software sold subscriptions rather than licenses. Oracle has become the second largest software as a Service Company in the world but some financial analysts that cover oracle says the latest results were disappointing and proved the Company Faces real challenges ahead and is transitioned to the cloud. No different than steam being eliminated from the world cup after a week. Thats why i put oracle results, investors expect a beat. They got a miss. I call it a shocker and really took a step back in terms of credibility in the oracle story. We worked again and reworked. Reporter while oracle boasts the growth of the Cloud Services, the cloud based product constitutes less than 5 of the companys overall revenue. They expect oracle will boost Cloud Services both internally and through acre sixes. Oracle bought a Company Called live look on friday and there reports it may aqua sessions, while they cant turn away from the cloud, it needs to pick up the pace of change. Josh lipton, nightly Business Report, silicon valley. Sales at oliver garden and red lobster chains slide drags down the earnings. They said profits fell blaming on higher costs and expenses. The quarterly numbers included red lobsters results, that chain plans to spin off soon. The stock tumbled about 4 to 47. 58. By contrast, car max reported strong earnings today and the shares zoomed higher. The chain posted a 16 gain in profits thanks to higher consumer traffic a pricing. Incoming, the financing unit rose and so did the number of cars sold. Shares surged 16. 5 to 52. 75. Third time is not the charm. Its 46 billion takeover offer for ireland based shire was turned down. Shire said the offer under valued the company and its growth prospect. The drug maker said the proposal would deny shareholders the benefits. Shares of shirer popped more than 16 to 22 and change, abbvie fell 1. 5 . Kite pharma soared. They are studying a cancer solution offered up 7. 5 million shares. Look at where they ended today. Investors snatched them up sending the stock up more than 70 to 29. Kite flying high. There i said it. Shares of coors raised to 7 a sha 9 a share and they sited evaluation and improving fundamentals. That stock closed at 74. 86, an increase of more than 2 . It was a historic day for radioshack but not in a good way. That stock traded below 1 a share for the First Time Ever as investors continue to worry about the electron anything retailers struggles. The New York Stock Exchange can delist any stock if it closes below a dollar for 30 consecutive trading days. Were watching that one. Shares were at 92 cents down more than 10. 5 on radioshack. And it looks like General Electric is the winner in the battle for french government is backing ges bid. It also said its going to buy a 20 stake. To no avoil, alstom has to approve ges bid. Shares rose to 26. 97. Owens corning say shares fall after the company lowered the outlook for the year. It blamed the disappointing guidance on continued weakness in the roofing business. The stock dropped by 6 , 38. 81. Our market monitor guest tonight is confident the stock market has more room to run and he favors value stocks over Growth Stocks. Hes mark stepper, president of Strategic Wealth partners. Well co welcome to nightly Business Report. Let me talk about your strategy here, why value and how hard is it to find value stocks . Why value . Typically when an economy is weak and just emerging from a recession, investors like they prefer Growth Stocks over value stock due to the fact they are not getting much growth out of the economy, however, were in a place where the economy is strengthening and when the economy begins to strengthen value stocks consistently out perform Growth Stocks. So, you know, there is a lot of critics that will say there is no value left right now. Were looking at a forward pu multiple this that is in line with historical averages. These times are different. Were looking at a low Interest Rate environment. Capital will chase yield and you see a lot of money moving up the risk ladder. Were confident the mull tips could expand to 17 or so before we would pull back the over weight rating on stocks to equal weight. You say the two most under valued skpun loand unloved sect energy and oil. Be that as you may, you still like a company like chevron, right . We do. When you look at the Energy Sector, it makes up 13 of the earnings but represents 10 of the markets cap waiting. There is a ton of longterm potential for the Energy Sector to recapture share of gdp. When you look at chevron, its a great dividend play. A lot of clients transitioned into either selling businesses or their retiring. Its a great dividend play. Its got a good evaluation and the one thing about chevron over the course of the last few years, its unloved due to the fact its investing a lot in the form of capital expenditures. Management said 2013 was a peak spending year and spending should flatten out through 2016. So looks promising for chevron. Tell us about Conaco Phillips trading around 85. You have a target of 1 00 on this stock. Why do you like it . Another good energy play, good dividend and evaluation. The one thing that stands out about Conaco Phillips, its got diversification. Not just oil. You had a massive acoutlook. Among financials, you like wells fargo, of course the largest Mortgage Lender on the land. Is that a bet on the Housing Market . Thats a concern, high exposure that wells fargo does have to the mortgage industry. We want to be in financials. Again, we think financials like energy have the potential to capture additional share of gdp. Wells fargo, even in the middle of all of the issues with the mortgage market, its done a very good job of beefing up both consumers and commercial loans and we feel that those are going to be real limb poor tablet part of banking business over the course of the next several years as business begins to really undergo some more Capital Spending to replace ageing Capital Stock that they havent invested in over the past decade. Any disclosures to tell us about, mark . We at the firm own all three in our client portfolios. Thank you for coming on the program. And coming up, how investors and start juups are taking advantage of the hottest sector in the Housing Market, coming up. Some positive news on the job front to tell you about. The Labor Department said 36 states sa